(DoFA) DoFA Presentation 24 September 2018 Agenda/Contents 1 - - PowerPoint PPT Presentation
Delegation of Financial Authority (DoFA) DoFA Presentation 24 September 2018 Agenda/Contents 1 Objective, Purpose & Key Principles 2 Duties & Responsibilities 3 Consultation Process & Policy Operators 4 Examples 5
DoFA Presentation 24 September 2018
1 Objective, Purpose & Key Principles 2 Duties & Responsibilities 3 Consultation Process & Policy Operators 4 Examples 5 Procedures 6 Signatory Form & Register 7 Breach of Policy & Policy Location 8 Definitions
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The Delegation of Financial Authority will assist the University by facilitating good financial governance and will allow the Financial Delegates to make more informed financial decisions. This will provide ongoing benefits to support the University’s objectives in research, teaching and community engagement. The purpose of the Delegation of Financial Authority Policy is to: The Delegation of Financial Authority was reviewed in light of the Renewal structure to provide effective cost authorisation and cost control mechanisms at the University. Assign financial authority to University positions. Outline the responsibilities and accountabilities
Financial Commitment on behalf of the University. Contribute to efficient and effective cost control and authorisation mechanisms. Contribute to a University culture of integrity. 1 2 3 4 1
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The University must be financially accountable for its income, expenditure, assets and liabilities. 1. University funds are to be used for official, legitimate expenditure and Financial Commitments for appropriate business purposes. 2. Expenditure and Financial Commitments to be within the approved University budget for the current financial year. 3. Delegation of Financial Authority is assigned to a position as specified in the Delegation of Financial Authority Matrix and not to an individual. 4. Delegation of Financial Authority is granted across the University and not restricted to specific areas. 5. Authorisations must be exercised by the most appropriate and well-informed Financial Delegate. 6. Financial Delegation Authority is banded based on expenditure commitment levels. 7. Contracts must be signed by the relevant Financial Delegate taking into consideration the total value of that contract, irrespective of contract duration.
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When authorising Financial Commitments on behalf of the University, a Financial Delegate has Fiduciary Duties, including:
A Financial Delegate:
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The post-Renewal organisation structure was reviewed in its entirety to determine the positions that require a degree of authority to commit the University financially, based on the following three factors: Delegation of Financial Authority The objective was to establish the least number of Financial Delegates required to allow the effective University’s operation. Operational efficiency while maintaining cost controls. The nature of the position’s work requirements. The requirement for the position to manage staff related expenditure. Review of Senate resolutions, governance and legislation. Senate Confirm Financial Delegates and
requirements Financial Services Confirm Financial Delegates & endorsement Executive Agree Delegation Bands and associated values & final approval Vice- Chancellor 1 2 3
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The Delegation of Financial Authority is governed through the following operators: The DoFA Policy
purpose, principles and duties. Policy Outlines all University positions with authority to sign specific types of contracts on behalf
(owned by Risk & Legal)
Signing Authority Outlines all University positions with DoFA by Delegation Band. Matrix Outlines the key procedures to support the Policy. Procedures Captures the Financial Delegate’s details and specimen signature to confirm DoFA. Signatory Form
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The Matrix provides an overview of eligible University positions, Delegation Bands and types of Financial Commitments that can be entered into by the relevant Financial Delegates.
Authority Positions Applicable2 Contracts4 EOI/RFP5
(Quote/Tender/ Tender Waiver)
General Expenditure6 University Credit Card Travel Hospitality Other Band 1
Senate
required5)
Band 2
Vice-Chancellor
Waiver (per Expenditure Level)
(contract required6)
Process
Process
Band 4
Band 3
UWA Executive / Chief Financial Officer
$999,999
Waiver (per Expenditure Level)
(contract required6)
Process
Process
Band 4
(>$100,000 PP7)
(>$10,000)
Band 4
Chief / Director / Associate Director / University Librarian / Head of SDC / Manager, Financial Services
(contracts which have undergone a tender process)
Waiver
Waiver (per Expenditure Level)
(contract required > $100k6)
Limit Increase
Domestic Auto-Approval
International Travel >$10,000
guidelines e.g. >$80 per head for dinner
food
(<$100,000 PP7)
(<$10,000)
Band 5a
Chief* / Director* / Associate Director* / Pro Vice-Chancellor / University Secretary / Dean / Deputy Dean* / Head of School / Deputy Head of School* / Head of Division* / Dean & Head of School (reporting to PVC &
to PVC & Exec Deans)
conjunction with Delegation Band 5b
conjunction with Delegation Band 5b
conjunction with Delegation Band 5b
Level 2)
conjunction with Delegation Band 5b *Some positions have Delegation Band 5a restricted to University Credit Card and Travel only (refer to Appendix A)
Band 5b
Assistant Manager / Team Leader, Financial and Staff Resources / Manager, Research Finance / Research Audit Officer / Research Finance Officer / Library Manager
Waiver (per Expenditure Level)
Cancellation for staff leaving UWA
International Travel <$10,000 (Concur Level 1)
guidelines e.g. <$80 per head for dinner
food
Band 6
Financial and Staff Resources Officer / Coordinator, Collection & Access Services
International Travel <$10,000 (Concur Level 1)
All Staff
All Staff
for all Staff in Concur TRAVEL (On-line Booking Tool) only
Delegation Bands Determine Level of Authority and Amount Position Summary Eligible University Positions. Detailed University Positions can be found on page 2. Types of Financial Commitments Depending on the type, various criteria apply
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Senate VC SDVC, DVCs, & Executive Deans EDCS Director Campus Management Director Service Delivery Chief Digital & Information Officer
Delegation Band 1 (>=$5m) 2 ($1-5m) 3 ($250k-1m) 4 ($50-250k) 5B (<$50,000)
Associate Director Associate Director Associate Director
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Assistant Managers & Team Leaders FSR Financial & Staff Resources Officer Financial & Staff Resources Officer Financial & Staff Resources Officer
5A (<$50,000) Examples Using this part of the
following two examples will showcase key concepts.
Finance Managers Heads of School
Delegate at the same or higher Delegation Band.
Authorised Officer with the same duties and authority as an Authorised Officer.
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4 Staff (Requisitioner) EDCS Director Campus Mgmt. Director Service Delivery Chief Digital &
3 ($250k-1m) 4 ($50-250k) NIL Staff Staff Requisitioner If this staff member were to seek authorisation for $200,000 and… 1 Vacant Position …this position were unoccupied, then… Incurring Staff The authorisation can be given by a FD on the same level or above. Authorisation …the authorisation can be given by an alternate Financial Delegate with the same Delegation Band or higher. 3 2 Delegation Band
contract value and not as a separate extension or variation amount. Contract values cannot be split to achieve a lower Delegation Band authorisation.
Delegation Band limit, then the revised total contract value must be authorised by a Financial Delegate with the appropriate Delegation of Financial Authority.
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4 Director Campus Mgmt. Director Service Delivery Chief Digital &
Delegation Band 3 ($250k-1m) 4 ($50-250k) NIL Staff Staff Project Manager Variation Authorisation With a new total contract value of $270,000 a Level 3 Financial Delegate will need to review and authorise the variation. 3 Contract Variation …it is determined that a variation of $40,000 is required, which means that... 2 Contract Authorisation A contract valued $230,000 was authorised by a Level 4 Financial Delegate, and… 1 EDCS
In this example, the EDCS could have authorised the DCM to approve variations up to a maximum value or % for this specific contract at the time of sign-off
The below process steps illustrate the official Procurement Process and explains which documents trigger the authorisation of a Financial Commitment. Procurement Process DoFA Need to purchase/ procure Quotation(s)
Process Purchase Order Authorisation PO Authorisation The Purchase Order represents the Financial Commitment between the University and a Supplier and is authorised by the appropriate Financial Delegate. Receipt of Goods & Services Invoice Payment 1 2 4 5 3 Contract Authorisation If a contract outlining the Financial Commitment was duly signed as per the DoFA, then a PO relating to that contract and within the contract value is authorised based
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5 Waivers All quotation and tender waivers are authorised based on total waiver value (excl. GST) by the appropriate Financial Delegate. All waivers need to be endorsed by Procurement prior to being submitted for approval, otherwise will be rejected.
New University Positions If the University creates new positions that are deemed to require a Delegation of Financial Authority, a request to review eligibility can be made by Human Resources to Corporate Financial Services who will make a recommendation to the Executive. Acting Authorised Officer If a University position with Delegation of Financial Authority is vacant, a Financial Delegate can be authorised to act in a higher Delegation Band as an Acting Authorised Officer temporarily if approved by a Financial Delegate with Delegation Band 3 or higher by completing the appropriate sections of the Signatory Form. Transferring to another University Position If a Financial Delegate moves from one position to another position within the University, both of which hold Delegation of Financial Authority, a new Signatory Form is to be completed for the new position as the previous Delegation of Financial Authority ceases automatically per the transfer date. Revoking Delegation of Financial Authority A manager or supervisor can recommend to a Financial Delegate with Delegation Band 3 or higher to revoke a Delegation of Financial Authority by completing the appropriate sections of the Signatory Form.
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The Signatory Form is required when:
Delegation of Financial Authority. Financial Delegate Info Complete and sign Instructions Complete relevant sections Revoke or Acting Complete and sign Footnotes & Duties SDC Info Complete
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The new Financial Delegate Register is hosted in Alesco. The benefits are the ability to set-up the Delegation of Financial Authority and relevant Delegation Bands against the correct positions. As staff members move in and out of these positions the Register remains up-to-date automatically. Note: PeopleSoft will continue to be the main source to view and check current Financial Delegations.
against eligible positons
Delegates moving in and out of eligible positions
updated by Alesco every night
the current Financial Delegates for
with DoFA Alesco PeopleSoft 6 PeopleSoft search parameters:
Delegate in a DoFA position)
most logical Financial Delegate)
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Reviews will be undertaken by the Chief Financial Officer to ensure that the requirements of the Policy are being adhered to. A breach of the Delegation of Financial Authority Policy or the Procedures must be reported to the Chief Financial Officer. Failure to comply with this Policy by a member of the University Community may be considered a breach of the Code of Ethics and Code of Conduct and may result in disciplinary process. Failure to comply with this Policy may also be considered a breach of the —
Examples of a breach may include:
relevant Delegation of Financial Authority as a Financial Delegate.
represent official, legitimate expenditure or Financial Commitment of the University.
to achieve lower Delegation Band approval.
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The Delegation of Financial Authority Policy and its operators (related documents) will ultimately be available via the University’s Policy website once it has been created. This Policy website will contain all University Policies and its related documents for ease of use. Until such time the Policy documents are available on the Financial Services website at: http://www.finserv.uwa.edu.au/2165570
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Should you want to enquire about the Delegation of Financial Authority, please contact your Finance Service Delivery Centre in the first instance. The contact details are listed on the Finance Website. Central Natalie Pearson Arts, Business, Law & Education (ABLE) Paul Johnson Engineering & Mathematical Sciences (EMS) Blanche Foy Health & Medical Sciences (HMS) Ailish Breheny Science Alexandra Woodman Marius Porojan Jane Bravo Tim Matthews Donna Marino Denise Murphy
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Acting Authorised Officer is an employee appointed by an Executive member to temporarily act as an Authorised Officer for an unoccupied University position deemed to have a Delegation of Financial Authority as per the Delegation of Financial Authority Matrix. Authorised Officer is an employee whose position within the University is deemed to have a Delegation of Financial Authority as per the Delegation of Financial Authority Matrix. An Authorised Officer by default has the authority to approve Financial Commitments for all business across the University. Delegation Band means a level of Delegation of Financial Authority based on Financial Commitment levels for a specified group of University positions. Delegation of Financial Authority means the authority delegated to positions for certain financial responsibilities and accountabilities as specified in the Delegation of Financial Authority Matrix. Fiduciary Duties are defined as:
legitimate University Financial Commitments;
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Financial Commitment includes expenditure of a capital and operating nature (incorporating minor works), asset disposals (for approval of correct pricing and disposal), contract quotation waivers and tender waivers, revenue invoice adjustment notes (for debit notes) and expenditure of moneys derived from research funding (including specific funding to the University and shared research income or shared grants). Financial Delegate means Authorised Officer and Acting Authorised Officer. Financial Delegate Register means the register in which all official Financial Delegates approved by Corporate Financial Services are listed.
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