Governance
Overview
DHA operates within a governance framework intended to produce accountable business outcomes and sound organisational performance. This framework derives primarily from the DHA Act and the Commonwealth Authorities and Companies Act 1997 (CAC Act). It is consistent with the Commonwealth Government Business Enterprise Governance and Oversight Guidelines published in October 2011.
Defence Housing Australia Act 1987
Under the DHA Act, formerly known as the Defence Housing Authority Act 1987, DHA's main function is to provide adequate and suitable housing for, and housing related services to, Defence members and their families in order to meet the operational needs of Defence.
Under the DHA Act, its other functions include:
- providing adequate and suitable housing for, and housing related services to, officers and employees of Financial Management and Accountability Act 1997 (FMA Act) agencies, and their families (other than Defence), persons contracted to provide goods or services to FMA Act agencies, and their families (other than Defence).
- providing services ancillary to the services mentioned above.
These extra functions may be performed only to the extent mentioned in a Ministerial determination.
On 9 November 2006, the then Minister for Defence, the Hon. Dr Brendan Nelson MP, made the Defence Housing (Performance of Additional Functions) Determination 2006 that permitted DHA to provide housing and housing related services to the employees of FMA Act agencies and their families.
As of 1 July 2014, The Public Governance, Performance and Accountability Act 2013 (PGPA Act) replaces the FMA Act and the CAC Act. Consequently, DHA will become a corporate Commonwealth entity under the PGPA Act. Its functions under the DHA Act will not change.
Commonwealth Authorities and Companies Act 1997
DHA complies with the requirements of the CAC Act with respect to:
- reporting to Ministers and Parliament
- contents of the Annual Report
- audit of the financial statements by the Auditor-General
- banking and investment powers of authorities
- compliance with general policies of the Australian Government, and
- conduct of directors and officers.
The following general policies of the Australian Government were notified by the responsible Minister before the beginning of the financial year and remain in force:
- National Code of Practice for the Construction Industry, and
- Foreign Exchange Risk Management Policy.
CAC Act Compliance
DHA reports quarterly to Shareholder Ministers on compliance with the provisions of the CAC Act, including financial sustainability. It is required to comply with the Commonwealth Authorities (Annual Reporting) Orders 2011 (CAC Orders). Under section 12 of the CAC Orders, DHA is required to provide particulars of Ministerial determinations issued under the DHA Act, or other legislation and of general policies of the Australian Government notified by the responsible Minister under section 28 of the CAC Act. No Ministerial determinations were issued during 2013–14.
Under section 28 of the CAC Act, if DHA has not fully complied with a direction or general policy during the financial year, the report must include an explanation of the extent of, and reasons for, the non-compliance. During 2013–14 there were no instances of non-compliance with a general policy of the Australian Government. However, DHA reported five instances of non-compliance with section 28B of the CAC Act.
Beginning in the 2013–14 financial year, under section 15 of the CAC Orders, DHA is required to disclose the decision-making process undertaken by the Board if it approved payment for a good or service from another entity, or provision of a grant to another entity, where:
- a director of DHA is also a director of the other entity
- the value of the transaction, or if there is more than one transaction, the total value of those transactions, exceeds $10,000 (GST inclusive).
There was no such matter requiring disclosure.
Under section 20 of the CAC Orders, DHA is required to disclose changes in financial conditions and community service obligations. However, information can be excluded if the directors believe, on reasonable grounds, that the information is commercially sensitive and would likely result in unreasonable commercial prejudice.
