Annual Report 2014–15

Programme 1.13
Chief Finance Officer

The Chief Finance Officer Group is responsible for Defence financial control, governance and assurance and manages the Defence budget and financial policies, principles and practices in accordance with the Public Governance, Performance and Accountability Act 2013.

The Group drives Defence’s financial management and improvement programmes through standardised financial management approaches and a shared services model. The Defence Finance Shared Services Programme continues to evolve to accommodate the changing environment.

In 2014–15, Defence’s Portfolio Budget Statements, Portfolio Additional Estimates Statements and financial statements were prepared and submitted within reporting deadlines. All whole-of-government reporting requirements were achieved. The Defence Accountable Authority Instructions were maintained and updated to reflect changes to financial policy and the forthcoming integration of the DMO into the Department of Defence.

Highlights of the Group’s achievements during the year included:

• coordination of the annual budget-cycle process and production of the 2015–16 Portfolio Budget Statements and 2014–15 Portfolio Additional Estimates Statements
• removal of the DMO as a ‘listed entity’ from Schedule 1 of the Public Governance, Performance and Accountability Rule 2014, and subsequent consolidation of DMO finances, delegations and Accountable Authority Instructions within Defence
• engagement of external providers to develop independent cost and schedule assurance of the Defence budget in support of the Defence White Paper
• development of a 10-year funding model based on a fully costed future force structure
• further development of the shared financial services capability across Defence to enable business improvement and increased efficiencies
• delivery of the Government’s deregulation agenda within Defence
• continued evaluation and improvement of processes and systems
• continued improvement of Defence’s financial statements.