Half-a-billion dollars worth of defence stock, from aircraft engines to army boots, cannot be accounted for by the Department of Defence. While the department insists there is no evidence to suggest anything is missing, management failures and an apparent inability to keep track of inventory means it can't be sure. In releasing its annual report on Monday, Defence Department Secretary Richard Smith admitted the department's financial management practices were not up to scratch, and a raft of reforms would be introduced. Among these, a representative of the Department of Finance and Administration and an expert from the private sector will join the Defence Department project board, responsible for preparing financial statements. Accounting firm Ernst & Young will also take on a lead role as overseer. A new stringent financial controls framework will be introduced.
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