Chapter One > Defence Governance Framework > page 3 of 5

Defence Governance Framework

Senior Committees

Defence Capability and Investment Committee

The Defence Capability and Investment Committee's role is to strengthen independent review of major capability and investment issues by seeking to ensure that resourcing, including capital investment and operating costs, is consistent with Defence's strategic priorities and resourcing strategy. The committee focuses on:

  • the overall shape of capability/balance of resource allocation/ten-year Defence Plan;
  • force structure, including Service plans;
  • the balance between the different organisational performance agreements;
  • force disposition;
  • the broad new major investment program;
  • operating/capital mix; and
  • other issues with a significant impact on capability.

In 2003-04, members were the Secretary (chair), Chief of the Defence Force, Under Secretary Defence Materiel/Chief Executive Officer of the Defence Materiel Organisation, Chief of Navy, Chief of Army and Chief of Air Force. The Chief of the Capability Development Group became a member in March 2004.

Vice Chief of the Defence Force/Chief Joint Operations, Chief Defence Scientist, Chief Finance Officer and Deputy Secretary Strategy attended as advisers.

The committee held nine scheduled business meetings in 2003-04 and nine extraordinary meetings. Attendance was as follows:

Table 1.20 Defence Capability and Investment Committee Attendance
Position and Name Meetings Held Meetings Attended
Secretary (Mr Richard Smith) 18 17/1*
Chief of the Defence Force (General Peter Cosgrove) 18 17/1*
Under Secretary Defence Materiel    
(Mr Michael Roche until 15 August 2003) 4 4
(Rear Admiral Kevin Scarce - acting from 18 August 2003 until 11 February 2004) 8 8
(Air Vice-Marshal Norman Gray - acting from 12 February until 24 February 2004) - -
Chief Executive Officer Defence Materiel Organisation
(Dr Stephen Gumley from 25 February 2004)		 6 6
Chief of Navy (Vice Admiral Chris Ritchie) 18 14/4*
Chief of Army (Lieutenant General Peter Leahy) 18 12/6*
Chief of Air Force (Air Marshal Angus Houston) 18 18
Chief Capability Development Group
(Lieutenant General David Hurley from 22 December 2003)		 6 5/1*
Advisers
Vice Chief of the Defence Force/Chief Joint Operations
(Vice Admiral Russ Shalders)		 18 16/1*
Chief Defence Scientist    
(Dr Ian Chessell until 7 October 2003) 7 6
(Dr Roger Lough from 8 October 2003) 11 10/1*
Chief Finance Officer (Mr Lloyd Bennett) 18 15/3*
Deputy Secretary Strategy (Mr Shane Carmody) 18 14/2*

* Substitute attended in place of member/adviser.

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Defence Audit Committee

Under Section 46 of the Financial Management and Accountability Act 1997, a Chief Executive must establish and maintain an audit committee for the agency, with the functions and responsibilities required by the Finance Minister's Orders. The Defence Audit Committee is the only senior Defence committee that has its authority located in law.

The Defence Audit Committee is responsible for:

  • reviewing the preparation and audit of the Defence financial statements and providing advice to the Secretary on:
    • the adequacy of these statements; and
    • the adequacy of accounting policies, procedures and systems.
  • approving Defence annual internal audit plans, medium-term audit strategy, and evaluation programs and activity;
  • reviewing internal and external audit reports and providing advice to the Secretary on action to be taken;
  • monitoring and providing advice to the Secretary on risk management policies and practices, including Defence enterprise risk management;
  • reviewing the Defence fraud control plan and monitoring the implementation of Group/Service fraud control plans; and
  • monitoring the conduct of ethics awareness activities within Defence.

In 2003-04, members were Mr Paul McGrath (chair) and Mr Will Laurie (deputy chair) - both independent, external members of the committee - Mr Mark Cunliffe, Mr Peter Dunn, Air Vice-Marshal Norman Gray, Mr Ian McKenzie, Ms Shireane McKinnie, Brigadier Mike Silverstone and Commodore Clint Thomas. The Chief Finance Officer and Inspector-General attended as advisers. Representatives of the Auditor-General attended as observers. Defence members of the Defence Audit Committee attend meetings in their capacities as senior officers of Defence, not as representatives of their substantive positions and, as such, substitutes are not permitted.

The committee held 11 scheduled business meetings in 2003-04 and two extraordinary meetings. Attendance was as follows:

Table 1.21 Defence Audit Committee Attendance
Position and Name Meetings Held Meetings Attended
Mr Paul McGrath 13 12
Mr Will Laurie 13 11
Mr Peter Dunn (until 23 October 2003) 5 2
Mr Mark Cunliffe (until 10 December 2003) 8 7
Ms Shireane McKinnie (until 10 December 2003) 8 8
Brigadier Mike Silverstone (until 10 December 2003) 8 5
Air Vice-Marshal Norman Gray (from 11 February 2004) 5 4
Mr Ian McKenzie (from 11 February 2004) 5 4
Commodore Clint Thomas (from 11 February 2004) 5 5

* As members of the committee are personally appointed by the Secretary and membership is not linked to substantive positions, commencement and finishing dates for members relate specifically to committee meeting dates.

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