Materiel Audit Committee
The DMO established an independent assurance framework to meet its obligations under the Financial Management & Accountability Act 1997. The framework includes the Materiel Audit Committee which was formally established on 1 July 2005 and met ten times during 2005–06. This committee is the only DMO committee that is required by law.
In its first year, the committee focused on the DMO policies, procedures and systems that underpin production of the financial statements. This enabled the committee to provide advice to the CEO DMO on the adequacy of the controls framework in preparation of the 2005–06 financial statements. The committee endorsed the DMO's internal audit strategy and plans, and continues to review external and internal audit strategies presented by the ANAO and the Inspector-General (Defence).
In 2005–06, the committee comprised three external members, including the Chairperson, one internal Defence, and one internal DMO member. The Chief Finance Officer (DMO), Chief Operating Officer and Inspector-General (Defence) attended as advisers. Representatives of the ANAO attended as observers.
The committee works in conjunction with the Defence Audit Committee, which retains oversight of matters across Defence, to oversee matters of shared importance to the DMO and Defence.
Materiel Assurance Boards
The DMO established the Project Governance Board function in November 2001. A review of the function in November 2005 resulted in a restructure to sharpen the focus on acquisition and sustainment governance. On 1 February 2006, the Governance Boards were replaced by five Materiel Assurance Boards with each aligned closely to a Domain Division. Each Board provides assurance and advice to the CEO DMO on acquisition, sustainment and management activities. There is a mix of internal and external members on the Boards. The DMO and Defence members have relevant project experience, while external members bring a broad range of experience and additional expertise. External members also provide a different perspective to issues faced by the project and sustainment areas. The Boards conducted a total of 200 major project and sustainment reviews in 2005–06.
Probity Advice
Probity Advisors are appointed to the DMO to provide independent monitoring of DMO acquisition and contracting processes to ensure they are conducted in accordance with identified probity principles.
A probity advisor provides advice as requested to tender evaluation committees before and during the course of the process, including on specific issues that arise.
Inspector-General (Defence)
Internal audit services were provided to the DMO by Defence under a Shared Services Agreement. Nine Inspector-General audit reports, relating specifically to the DMO, were finalised during the year.
Further information can be found in the Appendices (Internal Audit Arrangements).