Delegation of Financial Authority - PDF document

1 Delegation of Financial Authority (DoFA
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: The Delegation of Financial Authority was reviewed in light

2 of the Renewal structure to provide ef
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 of a Financial Delegate when authorising a 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 3 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

3 the approved University budget for the
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 Universi

4 ty, a Financial Delegate has Fiduciary
ty, 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: Delegation of Financial Au

5 thority The objective was to establish t
thority 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 operational requirements Financial Services Confirm Financial Delegates & endorsement Executive Agree Delegation Bands and associated values & f inal approval Vice - Chancellor 1 2 3 6 3 Policy Operators The Delegation of Financial Authority is governed through the following operators: The DoFA Policy outlines the purpose, princi

6 ples and duties. Policy Outlines all U
ples and duties. Policy Outlines all University positions with authority to sign specific types of contracts on behalf of the University . (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 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. Delegation Bands Determine Level of Authority and Amount Position Summary Eligible University Positions. Det

7 ailed University Positions can be foun
ailed University Positions can be found on page 2. Types of Financial Commitments Depending on the type, various criteria apply 8 3 Delegation Bands in the UWA Structure 9 4 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 (0,000) Associate Director Associate Director Associate Director 6 (0,000) Assistant Managers & Team Leaders FSR Financial & Staff Resources Officer Financial & Staff Resources Officer Financial & Staff Resources Officer 5A (0,000) Examples Using this part of the organisation structure, the following two examples will showcase key concepts. Finance

8 Managers Heads of School Unoccupied Pos
Managers Heads of School 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. 10 4 Staff (Requisitioner) EDCS Director Campus Mgmt. Director Service Delivery Chief Digital & Inf. Officer 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

9 or above. Authorisation …the authoris
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 extensions and variations (excludes employment contracts) are authorised based on total contract value and not as a separate extension or variation amount . Contract values cannot be split to achieve a lower Delegation Band authorisation. • Where a variation/extension results in a revised total contract value that exceeds the original Delegation Band limit, then the revised total contract value must be authorised by a Financial Delegate with the appropriate Delegation of Financial Authority. Contract Extension and Variation 11 4 Director Campus Mgmt. Director Service Delivery

10 Chief Digital & Inf. Officer Delegati
Chief Digital & Inf. Officer 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 Requisition The below process steps illustrate the official Procurement Process and explains which documents trigger

11 the authorisation of a Financial Commit
the authorisation of a Financial Commitment. Procurement Process DoFA Need to purchase / procure Quotation(s) or Tender 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 on the contract approval. 12 5 Waivers All quotation and tender waivers are authorised based on total waiver value (excl. GST) by the appropriate Financial Delegate. All waivers ne

12 ed to be endorsed by Procurement prior t
ed to be endorsed by Procurement prior to being submitted for approval, otherwise will be rejected. Other Procedures 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 anot

13 her University Position If a Financial D
her 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. 13 5 Signatory Form The Signatory Form is required when: • a Financial Delegate commences in a University position with Delegation of Financial Authority; • a Delegation of Financial Author

14 ity is revoked; • a Financial Delegate
ity is revoked; • a Financial Delegate is authorised to act in an unoccupied University position that currently has 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 14 6 Financial Delegate Register 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. • DoFA set - up

15 against eligible positons • Alesco k
against eligible positons • Alesco keeps track of Financial Delegates moving in and out of eligible positions • PeopleSoft is updated by Alesco every night • PeopleSoft shows the current Financial Delegates for occupied positions with DoFA Alesco PeopleSoft 6 PeopleSoft search parameters: • Position ID • Employee ID (Financial Delegate in a DoFA position) • Name • Delegation Band • Faculty (to help find the most logical Financial Delegate) 15 Breach of Policy R eviews 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 co

16 mply with this Policy by a member of the
mply 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 — • Conflicts of Interest Policy; and • Fraud and Corruption Policy . Examples of a breach may include: • Approval of an expenditure or Financial Commitment by a person prior to having obtained the relevant Delegation of Financial Authority as a Financial Delegate. • A Financial Delegate approving an expenditure or Financial Commitment that is determined not to represent official, legitimate expenditure or Financial Commitment of the University. • A Financial Delegate approving multiple requests

17 that relate to the same expenditure and
that relate to the same expenditure and was split to achieve lower Delegation Band approval. 16 7 Policy Location 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 17 7 Questions 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 Pear

18 son Arts, Business, Law & Education (ABL
son 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 18 7 Definitions 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 app

19 rove Financial Commitments for all busin
rove 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: • exercise a Delegation of Financial Authority only on behalf of the University in support of official, legitimate University Financial Commitments; • acting in the best interest of the University; • reviewing and contesting, where required, requests for a Financial Commitment; • reporting suspected

20 breach; and • acting in good faith and
breach; and • acting in good faith and upholding and not misusing Delegation of Financial Authority . 19 8 Definitions (cont.) 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 list