Purpose and Objectives
This Policy sets out the principles and framework for financial delegations of authority by the Executive Board of the Company. This Policy must be read in conjunction with the Delegations of Authority Policy which sets out the general principles of the delegation which apply to all Company delegations.
Scope
This policy applies to all Staff members. This Policy does not apply to the controlled entities of the organisation. Boards of those entities must implement their own delegations of authority, consistent with their constitutions.
This Policy must be read with:
- the Company‘s Code of Conduct,
- the Delegations of Authority Policy, and
- the Delegations Framework.
Policy Statement
This Policy sets out the authority by which the Company Board can delegate its financial powers.
Delegations Framework
The Delegations Framework comprises an extract of Delegations of authority granted under the Company‘s Policies. It is intended as an easy reference of the major decision points within the company; there is no intention to cover all decisions.
The Delegations Framework must be read in the context of this Policy and accompanying Procedures. This Policy and the Delegations Framework do not relieve Staff members, organisation members, or Executive Committees from their duty to be fully conversant with the source materials which affect them and which give the context and rationale for the exercise of their delegated powers.
While the main purpose of the Delegations Framework is to record the Delegations of authority, for completeness, the following are also included in the Delegations Framework:
- Non-delegable functions of Company,
- Any delegations under other legislation, and
- Terms of reference of Executive committees.
In addition to the general Principles of Delegation contained in the Delegations of Authority Policy, Delegates must observe the following when exercising their delegated financial authority to incur expenses or make payments on behalf of the Company:
- Budget limitations
- Variation of original costs
- Commitment decision for the whole life of the contract
- Commitments consistent with funding and legal requirements
- Financial transactions cannot be manipulated
- Splitting transactions is not permitted
- Acquisition of goods and services
- Approval in favour of a more senior Delegate
- Delegates shall not approve accounts for payment to themselves
- GST included
- Granting of a credit card, not a financial delegation
- Authorisation of a payment
Responsibilities
A Delegation of authority represents a significant responsibility for those who hold them. Delegates must exercise care and diligence when carrying out their Delegations of authority. This Policy and the Delegations Framework do not relieve Delegates from their duty to be fully conversant with the source materials which affect them and which give the context and rationale for the exercise of their powers.
- Delegates always remain responsible for making the decision.
- Delegates must observe all the principles in this Policy.
- Delegates can only act within the limits of their Delegation of authority.
- The exercise of Delegations of authority and authorisations will be subject to periodic review by the Chief Operating Officer
Breach of Delegations
A breach of the provisions of this Policy or the Delegations Framework may be regarded as misconduct or serious misconduct and may be subject to disciplinary action.
Staff members who believe that a Delegation of authority or authorisation has been improperly exercised should refer the matter to the Chief Operating Officer who will investigate and act according to the outcome of the investigation.