Annual Report 2003-04

Defence Governance Framework

In 2003-04, Defence continued its drive for improved governance. In October 2003, the Defence Committee agreed to adopt the Australian National Audit Office definition of corporate governance and implement an adaptation of the Australian National Audit Office's 'house of governance' model, as the basis of the Defence governance framework. This framework has embedded within it a number of key accountability documents and measures, including the Ministerial Directive, Group Head and Service Chief charters, organisational performance agreements and performance evaluations of senior committees.

Senior Committees

The senior Defence committees are one of the key elements of Defence's governance framework. In essence, all the senior Defence committees continue to be advisory with the chair exercising executive authority. Following significant changes in 2002-03 to the format and structure of the senior committees, notably the reinvigoration of the Defence Capability and Investment Committee, redefining the role of the Defence Capability Committee and convening the Defence Occupational Health and Safety Committee, 2003-04 was a year for consolidation. Achievements for the year included:

• the significant contribution of the Defence Capability and Investment Committee to the Defence Capability Review;
• implementation of the new 'two pass' approval process by the Defence Capability Committee, as agreed by the Government in its consideration of the Defence Procurement Review; and
• the publication of the Defence Occupational Health and Safety Strategic Plan 2004-2006 by the Defence Occupational Health and Safety Committee.

Performance evaluations for the Defence People Committee and the Defence Capability Committee were undertaken in January 2004 and March 2004 respectively. The committees are now addressing governance areas identified for improvement by those evaluations, including enhancing the Defence People Committee's ability to shape its work program and strategic focus, a membership review of the Defence Capability Committee and a review of relationships between, and responsibility of, the capability-related committees.

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There were eight senior Defence committees in 2003-04. Their roles and membership are explained below.

Chart 1.4 Senior Defence Committees Structure

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