The DMO is a prescribed agency under the Financial Management and Accountability Act 1997. This means that although the DMO remains inextricably linked to Defence, it is required to account directly to the Minister for Defence on its financial management.

Finance Division is responsible for providing the DMO financial management policy and procedure framework that meets statutory requirements and enables DMO to operate in a business-like environment with regard to all aspects of accounting and financial management. The Division provides the central financial controller function for DMO and provides financial management services across the DMO.

Our Vision – Trusted and Respected.

Our Purpose – To provide and deliver appropriate financial management and inventory services to enable DMO to deliver its purpose of equipping and sustaining the Australian Defence Force.

Chief Finance Officer DMO

The Chief Finance Officer (CFO) DMO is accountable to the Chief Executive Officer (CEO) DMO for the performance of the Finance Division.

The CFO DMO is responsible for financial management of the DMO, with a central role in strategic resource allocation and management, reporting, financial accountability, the establishment of appropriate financial processes and skilling of the finance job family.

The Finance Division is comprised of three Branches:

• Budgets and Treasury
• Financial Reporting and Policy; and
• Defence Asset and Inventory Management (DAIM).

Budgets and Treasury

Budgets and Treasury provides Agency level Budget development, management and reporting services for the DMO in support of the Chief Executive Officer and DMO Divisions. Key activities include:

• Management and preparation of DMO’s budget
• coordination of financial input into statutory reports including the Portfolio Budget Statements and Portfolio Additional Estimates Statements and Annual Report
• management of project approval records and expenditure
• management of sustainment product budget and expenditure records
• managing the programming requirements of the DMO Acquisition and Sustainment Programs
• managing DMO treasury and banking activities
• financial performance reporting internal and external to the DMO
• administration for DMO’s budgeting and reporting system
• DMO point of contact with Defence and Department of Finance and Administration on budget and funding matters
• over-sighting the DMO agency business model; and
• developing and operating costing tools, models and procedures

Financial Reporting and Policy Branch

Financial Reporting Branch is responsible for DMO’s financial statements, financial policy and practices and financial systems oversight. Key activities include:

• professionalising the finance function
• production of the DMO financial statements
• reviewing and reporting on DMO audit remediation activity
• developing and providing advice to DMO on accounting policy and financial procedures
• coordinating input to finance-related information system developments; and
• developing strategies for financial information management.

Defence Asset and Inventory Management Branch

Defence Asset and Inventory Management (DAIM) is responsible for providing integrated financial accounting and logistics support services to DMO Divisions and Defence - essentially DAIM is the link between the finance and logistics domains. These services support in-use specialised military equipment, assets under construction and inventory valued at $44.2 billion (as at 30/6/11), representing ~66% of Defence's total assets and ~39% of the Australian Government's non-financial assets. Key activities include:

• Oversight of the financial management and reporting of both in-use Specialist Military Equipment assets and assets under construction
• Managing key asset accounting activities including capitalisations, useful life reviews, impairment assessments, componentisation, inspection cost analysis and provisioning for decommissioning costs
• Financial Accounting and assurance for general stores inventory, explosive ordnance and repairable items
• Managing the Materiel Compliance and Assurance Framework and associated programs operating throughout DMO to support the Defence Financial Statements; and
• Provision of codification services to the acquirers, sustainers and logistic managers of Defence assets and inventory

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