Annual Report 2004-05

Internal Audit and Risk Management Arrangements

Portfolio Evaluations

Portfolio Evaluation Strategy

The Defence Portfolio Evaluation Strategy is promulgated as a Defence Instruction (General). In accordance with that strategy, the Defence Committee authorised a schedule of portfolio evaluations covering 2004-05 and 2005-06.

In accordance with the Secretary's priorities, the Defence Committee revised the foreshadowed list of topics. The principal evaluation topics for calendar year 2005, in order of priority, are now:

• Defence civilian training and development (this topic replaces the Effectiveness of Personnel Policy Development evaluation);
• the injury prevention program; and
• the technical regulatory system.

Topics foreshadowed for calendar year 2006 in the Portfolio Budget Statements 2005-06, in order of priority, are:

• ADF safety systems;
• the effectiveness of Defence record keeping; and
• the effectiveness of national health support.

Schedule of Portfolio-level Evaluations for 2004-05

The following evaluation activities were completed in 2004-05:

Preparation of ADF Officers for Joint Appointments. This evaluation, to examine the effectiveness of the ADF's current arrangements to prepare officers to command and serve on war-fighting joint headquarters, was provided to the Chief of the Defence Force and the Secretary in July 2005 and found that:

• education, training and levels of experience currently provided to ADF officers in preparation for joint appointments is generally appropriate, however, there are areas where further improvements could be made;
• there is no clear policy available, nor a sponsor accountable for its development, to provide guidance to career managers on how officers should be prepared for service in joint operational headquarters;
• generally, ADF officers hold a strong perception that promotion prospects are better served by working in parent Service jobs rather than in joint appointments for ranks up to Lieutenant Colonel level and equivalent; and
• there is scope to improve the levels of support provided to ADF star-ranked officers in preparing them for service as joint force commanders.

The Effectiveness of the Defence Customer-Supplier Model. This evaluation, to examine the efficiency, effectiveness, and appropriateness of Defence's customer-supplier model, was completed in July 2005 and found that:

• senior Defence management are generally supportive of the Defence customer-supplier model;
• more improvement is required to adequately link service delivery with Defence's core business;
• the absence of costing data in service agreements is affecting management's ability to make informed decisions as well as adequately setting priorities; and
• there is further scope to standardise services across regions and reduce duplication.

Defence Civilian Performance Schemes. This evaluation, to examine the operation of the performance schemes and to assess the application of the intended behavioural changes, was provided to the Secretary and the Chief of the Defence Force in February 2005 and found that:

• the Defence civilian performance schemes are underpinned by support from the highest levels in Defence, a set of sound principles and clear supporting documentation; and
• there are opportunities for improvement involving issues of both process and procedure, as well as issues of a higher level or strategic nature.

The Secretary and the Chief of the Defence Force have accepted the evaluation's recommendations and plans have been developed to implement them.