Shareholder Ministers
DHA sits within the Defence portfolio of the Australian Government.
During the 2013–14 financial year, a Federal Election was held and Ministerial responsibility for DHA changed.
From 19 September 2013, the Board reported to Senator the Hon. David Johnston, Minister for Defence, and Senator the Hon. Mathias Cormann, Minister for Finance, as Shareholder Ministers of DHA. Minister Johnston has delegated responsibility for operational matters to the Hon. Stuart Robert MP, Assistant Minister for Defence.
Up to 18 September 2013, the Board reported to the Hon. Stephen Smith MP, Minister for Defence, and Senator the Hon. Penny Wong, Minister for Finance and Deregulation. Minister Smith had delegated responsibility for supervision of operational matters to the Hon. Warren Snowdon MP, Minister for Defence Science and Personnel.
DHA provides quarterly performance reports to Shareholder Ministers that detail quarter-to-quarter progress in delivering the Corporate Plan. It liaises regularly with Shareholder Ministers' Departments on key issues.
DHA Board
The Board is accountable for overall performance. It makes decisions on direction and strategies through a three-year Corporate Plan that is reviewed and submitted annually to the Shareholder Ministers.
The Board receives regular reports on financial and other performance indicators against the Corporate Plan. The Board also receives information on operational issues as required.
The Board comprises nine directors:
- A Chairman appointed by the Shareholder Ministers and four commercial directors with expertise in residential property, real estate, building, social planning or finance
- Three directors nominated respectively by the Chief of the Defence Force and the Secretaries of Defence and Finance, and
- the DHA Managing Director (also the Chief Executive Officer) appointed by the Board, who is the only Executive Director.
During 2013–14, the Board met seven times. The Board also held an annual strategic meeting in November 2013 at which key strategic objectives were identified and discussed. In addition, the members of the Board visited Sydney in June 2014 to inspect DHA residential development sites.
Board committees
Three Board committees assist the board in the discharge of its responsibilities: Audit Committee, Property Committee and Nomination and Remuneration Committee. Amendments to the DHA Act in 2006 established the DHA Advisory Committee to advise on the performance of DHA's functions.
Board Audit Committee
The Board Audit Committee meets at least quarterly and reports to the Board on its activities at least twice a year. During 2013–14, four meetings of the committee were held.
The key functions of the committee are to:
- improve the effectiveness and efficiency of DHA's internal control framework
- ensure DHA has appropriate risk identification and management practices in place
- improve the objectivity and reliability of significant financial reporting
- ensure DHA has adequate procedures on matters of audit independence
- assist the Board to comply with all governance and other obligations.
Board Property Committee
The Board Property Committee meets at least quarterly and as required. During 2013–14 it met six times. The committee acts in an advisory capacity to the Board on major property transactions and property matters generally.
The key functions of the committee are to:
- review management proposals in relation to major property transactions
- review Board submissions to ensure that they contain all necessary information for the Board to make fully-informed decisions
- review land purchases or disposals that require Board approval
- consider property projects that are environmentally or politically sensitive or carry a high-level of risk, and
- examine any other property project, if requested to do so, by the Board or management.
Nomination and Remuneration Committee
During 2013–14, the Nomination and Remuneration Committee met three times. The key functions of the committee are to:
- assist the Board in relation to the review of the Managing Director's performance and remuneration, and
- assist the Board in informing the Shareholder Ministers of impending vacancies on the Board and advise, where appropriate, on possible candidates.
DHA Advisory Committee
During 2013–14, the DHA Advisory Committee met once. The key function of the committee is to give advice and information on the performance of DHA's functions. The committee comprises:
- one member of the Board (who is the Chairman of the committee)
- three members appointed by the Service Chiefs
- the National Convenor of Defence Families of Australia, and
- a further representative of DHA.
Performance reporting
In accordance with the CAC Act, CAC Orders and the Public Service Act 1999, DHA prepares a Corporate Plan, an Annual Report and a Statement of Corporate Intent.
Corporate Plan
The three-year Corporate Plan sets the strategic direction of the business and is reviewed on an annual basis. To achieve its mission and fulfil the outcomes desired by the Shareholder Ministers, DHA has set six corporate objectives. The Corporate Plan is approved by the Board and provided to the Shareholder Ministers.
Each division develops a business plan that incorporates all responsibilities from the Corporate Plan, relevant to that business unit, together with extra activities and measures linked to the budget.
Each staff member has an individual Performance Development Agreement, developed by cascading business objectives from the business plans. This process clarifies how corporate objectives translate to what the staff member needs to achieve and identifies any support that may be required.
Annual Report
The Annual Report sets out performance in delivering the objectives and strategies in the Corporate Plan. It provides the annual financial accounts, associated financial information and details of important initiatives undertaken during the year. The content of the Annual Report complies with the requirements of the CAC Act, the CAC Orders and the Public Service Act 1999.
Statement of Corporate Intent
The Statement of Corporate Intent is a high-level, plain-English document stating key objectives and priorities for each financial year. It is tabled in Parliament each year.
Board performance and education
The Board has agreed that there should be regular reviews of its performance and processes. The assessment also provides an independent confirmation that the Board, as a decision-making body, is working within the principles and practices of good governance as detailed in the Board Charter.
A review of Board performance was conducted in December 2013 under the supervision of the Nomination and Remuneration Committee, with the Board findings reported to Shareholder Ministers. A further review is planned in late-2014.
In 2013–14, the Board received briefings on demographic forces shaping the market for Defence housing, the risks and rewards of apartment development, upcoming legislative change and plans for work health and safety accreditation.
