Defence

Chief Finance Officer

Taking Charge of Accountability

By Phil Darling

Members of the SLG attending the first Financial Management course at the Hotel Heritage. From Left to Right: BRIG Jeff Williams, Murray Perks, Frank Colley, John Dierks, AIRCDRE Kym Osley, RADM Max Hancock, AIRCDRE Roy McPhail, Lily Viertmann, Rebecca Skinner, Peter Lambert, Alison Clifton, John Peters, Michael Gibson, Malcolm Pearce

"Well structured and an impressive line up of presenters," summarises one participant on the inaugural Senior Leadership Group Financial Management Course held in Canberra in June.

Aimed at addressing Defence's approach to financial management, the course was attended by fourteen members of the Senior Leadership Group. The two-day residential course is designed to enhance the knowledge and skills of senior managers, providing them with a clear understanding of their financial management responsibilities and accountabilities.

Sponsored by the Chief Finance Officer (CFO) Group, the course represents one core element in the overarching Defence Financial Controls Framework, which was officially launched by the Secretary and Chief of the Defence Force on 29 June 2005.

In his opening address to course participants, Secretary of Defence, Mr Ric Smith, outlined his commitment to financial reform, particularly in the light of continuing pressure from the Australian National Audit Office to improve Defence's performance in audits. He emphasised the critical role of the emerging Defence Financial Controls Framework initiative and that training will be key to the framework's success.

"My vision for the finance domain in Defence is for Defence to be recognised by Government as highly competent, professional and business-like financial managers within the next 5 years", says Mr Smith.

"Turning our management performance around and matching our operational successes with excellence in management is a huge challenge. Key to success will be our capacity to lift the skills of our people to meet contemporary management standards, accrual and other new accounting requirements and, as is implicitly demanded of us, to move beyond our public service culture to a more business-like one.

"The CFO [Mr Ken Moore], on behalf of Defence, has established a Defence Financial Controls Framework Project under his direct control to draw together, in a structured and integrated fashion, all of the components necessary to build a best practice financial management environment for Defence. The framework will provide all staff with a common understanding of the what, why, when and how of fiscal management in Defence."

Participants on the Financial Management Course - which included both civilian and military personal, among them the Deputy Chief of Navy - were exposed to contemporary issues in governance, accounting, the budget process, financial reporting requirements, the Defence Management and Finance Plan and the Defence budget.

"The course gave me a very useful oversight of the Defence and Government financial process. I am much better informed to lead my organisation in these issues and I will be recommending that my SES [Senior Executive Service] colleagues also attend," says one course participant.

"Having sat through this course for two days, I have confidence that the Department has got a good handle on financial management. The folks [from CFO Group] that delivered the training seem to really understand the issues and are wedded to introducing the new framework. We have a very good story to tell, and a good program to implement," affirms another participant.

Speakers across the two-day program included the Secretary of Defence, the Auditor General, and the Acting Secretary of the Department of Finance and Administration.

The imperative to reverse the adverse trends in financial control in Defence is heavily reliant on people understanding the need for change in the first instance, and embracing both the process and behavioural changes underpinning the Financial Controls Framework. The support of senior managers across Defence is integral to rolling this process out to Defence people.

Phil Darling is a Graduate currently working within the Directorate of Finance and Business Skilling.

Further information: The next Senior Leadership Group Financial Management Course will be held on 1-2 September 2005. For more information about the course, or to register, contact Craig Iverach in the Directorate of Finance and Business Skilling Directorate, on ph (02) 6265 6423 or via email to Craig.Iverach@defence.gov.au.

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