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 Procedures 6 Signatory Form & Register 7 Breach of Policy & Policy Location 8 Definitions 2
Objective & Purpose 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: 1 2 Outline the responsibilities and accountabilities Assign financial authority to University of a Financial Delegate when authorising a positions. Financial Commitment on behalf of the University. 3 4 Contribute to efficient and effective cost control Contribute to a University culture of integrity. and authorisation mechanisms. 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. 3 1
Key Principles 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. 4 1
Duties & Responsibilities When authorising Financial Commitments on behalf of the University, a Financial Delegate has Fiduciary Duties, including: • acting in the best interest of the University; • reviewing and contesting, where required, requests for a Financial Commitment; • reporting suspected breach; and • acting in good faith and upholding and not misusing Delegation of Financial Authority. A Financial Delegate: • should seek clarification from the requesting person where required; and, • can reject an authorisation request, outlining the grounds for the decision. 5 2
Consultation Process 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: Senate Vice- Chancellor Executive Financial 1 Services Operational efficiency while Review of Agree maintaining cost controls. Senate Delegation resolutions, Confirm Confirm 2 Bands and governance The nature of the position’s Financial Financial associated and Delegates work requirements. Delegates values & legislation. & and final approval 3 endorsement operational The requirement for the requirements position to manage staff related expenditure. Delegation of Financial Authority The objective was to establish the least number of Financial Delegates required to allow the effective University’s operation. 6 3
Policy Operators The Delegation of Financial Authority is governed through the following operators: Policy The DoFA Policy outlines the purpose, principles and duties. Signing Authority Signatory Form Matrix Procedures Outlines all Captures the University Outlines all Financial positions with University Outlines the key Delegate’s details authority to sign positions with procedures to and specimen specific types of DoFA by support the Policy. signature to contracts on behalf Delegation Band. confirm DoFA. of the University. (owned by Risk & Legal) 7 3
Delegation of Financial Authority Matrix 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. Position Summary Eligible University Types of Financial Positions. Commitments Detailed University Depending on the type, Positions can be various criteria apply found on page 2. EOI/RFP 5 General University Authority Positions Applicable 2 Contracts 4 Travel Hospitality Other (Quote/Tender/ Expenditure 6 Credit Card Tender Waiver) Band 1 • >$5 million (contract Senate • >$5 million required 5 ) • Approve Tender • $1 - $5 million • Approval across full • Approval across full • Per Delegation Band 2 Vice-Chancellor • $1 - $5 million Waiver (per (contract required 6 ) Process Process Band 4 Expenditure Level) • Asset Disposal • Approve Tender UWA Executive / • $250,000 - • $250,000 - $999,999 • Approval across full • Approval across full • Per Delegation Band 3 (>$100,000 PP 7 ) Waiver (per Chief Financial Officer • Debit Notes $999,999 (contract required 6 ) Process Process Band 4 Expenditure Level) (>$10,000) Delegation Bands • Approve Tender • Revoke/Reinstate • In excess of UWA Chief / Director / Associate Director / • <$250,000 • Application Approval • Asset Disposal • $50,000 - $249,999 Waiver Domestic Auto-Approval guidelines e.g. >$80 • Cancellation Band 4 (contracts which (<$100,000 PP 7 ) University Librarian / Head of SDC / • Approve Quotation • Approve Available Funds (contract required > per head for dinner • Suspension of Card & • Debit Notes have undergone a Determine Level of $100k 6 ) Manager, Financial Services Waiver (per International Travel or >$35 for finger tender process) Limit Increase (<$10,000) Expenditure Level) >$10,000 food Chief * / Director * / Associate Director * / Pro Authority and Amount • Managed in Vice-Chancellor / University Secretary / • Primary Approver (Concur conjunction with Dean / Deputy Dean * / Head of School / Level 2) • Managed in • Managed in • Managed in Delegation Band 5b Band 5a Deputy Head of School * / Head of Division * / conjunction with conjunction with conjunction with Dean & Head of School (reporting to PVC & Delegation Band 5b Delegation Band 5b Delegation Band 5b *Some positions have Delegation Band 5a restricted to Exec. Deans) / Centre Director (reporting University Credit Card and Travel only (refer to to PVC & Exec Deans) Appendix A) Assistant Manager / Team Leader, Financial • Within UWA • Approve Statement • Approve Quotation • Approve Available Funds and Staff Resources / Manager, Research guidelines e.g. <$80 Band 5b • Approve Acquittal & • < $50,000 Waiver (per International Travel per head for dinner Finance / Research Audit Officer / Research Cancellation for staff Expenditure Level) <$10,000 (Concur Level 1) or <$35 for finger leaving UWA Finance Officer / Library Manager food • Approve Available Funds Financial and Staff Resources Officer / Band 6 • < $50,000 • Acquittal International Travel Coordinator, Collection & Access Services <$10,000 (Concur Level 1) • Domestic Auto-Approval All Staff for all Staff in Concur All Staff TRAVEL (On-line Booking Tool) only 8 3
Delegation Bands in the UWA Structure Delegation Band Examples Using this part of the 1 (>=$5m) Senate organisation structure, the following two examples will showcase key concepts. 2 ($1-5m) VC SDVC, DVCs, & 3 ($250k-1m) EDCS Executive Deans Director Chief Digital & Director Service Finance 4 ($50-250k) Campus Information Delivery Managers Management Officer Associate Associate Associate Heads of 5A (<$50,000) Director Director Director School Assistant Managers 5B (<$50,000) & Team Leaders FSR Financial & Staff Financial & Staff Financial & Staff 6 (<$50,000) Resources Resources Resources Officer Officer Officer 9 4
Unoccupied Position • Where a DoFA position is unoccupied, authorisation must be sought from an alternate Financial Delegate at the same or higher Delegation Band. • If a Financial Delegate is acting in a vacant position, the person will by default become an Acting Authorised Officer with the same duties and authority as an Authorised Officer. 3 Authorisation …the authorisation can be Incurring Staff Delegation Band The authorisation can be given by an alternate given by a FD on the same Financial Delegate with the EDCS same Delegation Band or 3 ($250k-1m) level or above. higher. 2 Vacant Position Director Director Chief …this position Campus Service Digital & 4 ($50-250k) were unoccupied, Mgmt. Delivery Inf. Officer then… 1 Requisitioner Staff If this staff member were to NIL Staff Staff (Requisitioner) seek authorisation for $200,000 and… 10 4
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