The requirement, in our words
These duties attach because the DDA is a Commonwealth entity; clause 8 does not state them. The accountable authority must keep accounts and records that explain the entity transactions and financial position and allow an audit (Act section 41). It must prepare annual financial statements after each reporting period and give them to the Auditor-General (section 42), including the statement required by section 42(3). The Auditor-General examines the statements and reports (section 43). The annual report goes to the responsible Minister by 15 October 2028 for the period ending 30 June 2028 (section 46(2)(a)). The audit committee reviews the appropriateness of financial reporting (Rule section 17(2)(a)).
What the provision is doing
The financial reporting cycle is the backbone of accountability for a non-corporate entity. It produces the audited statements, the audit report and the annual report that the Parliament and the public see. It also sets the calendar for the audit committee, the CFO and the portfolio estimates process. For a new entity, the first cycle is the hardest because the systems, the shared-services arrangements and the opening balances all have to be in place on day one.
What good practice looks like
Agree the CFO and shared-services arrangement with Defence and Finance.
What changed
Before commencement the functions sit with Defence and are reported in Defence's statements. After commencement the DDA has its own accounts, its own statements, its own audit and its own annual report. The first reporting period runs from 1 July 2027 to 30 June 2028. The annual report is due to the responsible Minister by 15 October 2028 and must include the annual performance statements and the audited financial statements.
Evidence an auditor or portfolio reviewer asks for
| Category | Record to keep | Retention |
|---|---|---|
| Statements | The annual financial statements, the section 42(3) statement and the working papers that support the balances and disclosures. | Seven years. |
| Audit record | The Auditor-General's audit report, the management letters and the record of how findings were closed. | Seven years. |
| Annual report | The annual report, the tabling record and the digital reporting tool publication record. | Permanent entity record. |
| Estimates | The budget estimates and the portfolio budget statement extract for the first reporting period, with the Finance correspondence. | Seven years. |
Common gaps
- The DDA assumes Defence will continue to report its financial statements after commencement.
- The section 42(3) statement is left to the CFO without a documented basis.
- The annual report date is planned from the tabling date rather than the statutory date.
- The audit committee reviews the statements after they are signed, not before.
What to do before 1 July 2027
- Agree the CFO and shared-services arrangement with Defence and Finance.
- Set the audit timetable with the Auditor-General's office.
- Build the statements preparation plan and the section 42(3) evidence.
- Put the 15 October 2028 date in the annual report plan and the audit committee calendar.
Dates and cross-references
Commences: 1 July 2027, stated in section 2 of F2026L01074. Retention: Seven years for financial records. Due: 2028-10-15.
Read with: listed-entity-status, accountable-authority, purposes.
Source
This page reads Public Governance, Performance and Accountability Amendment (Defence Delivery Agency) Rules 2026 (F2026L01074) and its explanatory statement, against the PGPA Act 2013 and the PGPA Rule 2014 Compilation No. 64. Retrieved 2026-10-20. The requirement above is our own statement, not the instrument wording. Not legal advice; does not certify.