Chairman's foreword

It gives me great pleasure to introduce DHA's Annual Report 2015–16.

DHA achieved a great deal in the past year, including meeting or exceeding almost all performance measures and implementing the recommendations of an independent Forensic Review in less than eight weeks.

I am proud to say, as promised, the quality of service that we provided our customers, clients and stakeholders in 2015–16 was unwavering. This is evidenced by:

• achieving consistently high customer satisfaction results
• improving our Customer Service Institute of Australia (CSIA) certification result from 7.7 in 2014 to 8.1 in 2015, which is an outstanding rating as only a few organisations achieve a score greater than 8.0
• winning two national CSIA service excellence awards and four ACT division CSIA service excellence awards for our exceptional ability to keep the customer at the centre of focus at all times.

Our support of government

DHA continued to play a vital role in supporting the Australian Government by delivering effective and efficient housing and related services to Australian Defence Force (ADF) members and their families. We also provided financial support through an annual dividend of $62.7 million.

I would like to thank Senator the Hon Marise Payne, Senator the Hon Mathias Cormann, the Hon Michael McCormack MP, and all other Shareholder Ministers who served throughout 2015–16, for your continued support of DHA and our activities.

Our support of the Defence community

DHA has a proud history of supporting the broader Defence community. In 2015–16, we contributed over $135,000 and donated goods in kind to various Defence community groups and not-for-profit organisations. Notable activities included:

• providing financial support to 38 Defence family and community centres across Australia so that they could undertake upgrade and maintenance works
• attending 23 Defence Community Organisation (DCO) welcome days to support newly posted ADF members and families
• supporting various Soldier On activities, including donating surplus furniture for their new office in Canberra
• supporting Legacy, including hosting the 2016 Anzac Lunch for Legacy in Sydney which raised more than $34,000 from auctions and raffles
• providing financial support and donating goods in kind to the Returned & Services League (RSL) LifeCare sleep out, the Army Art exhibition in WA and the Australian Military Women's Choir.

I was also honoured to officiate at numerous DHA events, including turning the first sod with His Royal Highness the Prince of Wales at our Prince's Terraces Adelaide development (SA) and the official opening of restored heritage properties and newly constructed properties at our Gunners' Cottages development (Fremantle, WA).

Mr John Bale, CEO of Soldier On, presents our Chairman, the Hon Sandy Macdonald and Acting Managing Director, Ms Jan Mason, with a plaque for DHA's support of the official opening of the Robert Poate Reintegration and Recovery Centre in Canberra, ACT.

Our support of the broader community

DHA actively engages local business and tradespeople to help us deliver high-quality housing and related services in all locations where the ADF has a presence. This includes our development pipeline of approximately $2.5 billion.

We support local real estate and financial industries through our property acquisition, leasing and sales activities. We also created a mid-lease sales program to enable lessors to sell their DHA-leased property through a local real estate agent who is familiar with the terms and conditions of our leasing program.

When building new housing communities, we look beyond bricks and mortar. We not only build community parks, playgrounds and community centres, but ensure they are completed early in the development and construction program to benefit new residents and the broader community.

In doing all of these activities, we not only financially support local communities, but contribute to their wellbeing.

Acknowledgements

I was delighted to welcome Mr Robert Fisher AM, a former member of the National Commission of Audit, to the Board in February 2016 and to see Ms Janice Williams, Chair of our Property Committee, reappointed to the Board in April 2016 for another three years.

I would like to acknowledge and thank former Board Director, Ms Carol Holley, and former Managing Director, Mr Peter Howman, who left DHA in 2015. Ms Holley brought considerable public company Board experience and a robust range of accounting skills to the Board. Mr Howman was energetic and forward thinking, and made a long-term contribution to DHA as CEO and Managing Director.

Lastly, I especially thank my fellow Board Directors, particularly Acting Managing Director Ms Jan Mason, as well as the Executive Group and all DHA staff for their capability, effort and achievement in 2015–16. Their dedication, from top to bottom, has been extraordinary.

I look forward to another exciting and transformational year ahead.

Hon J.A.L. (Sandy) Macdonald

Chairman