Dept. of Education > Administrative and Management services > Finance, Facilities and Business Strategy Branch > Delegations and Financial Authority > Financial Management Delegations and Administrative Authorities

Financial Management Delegations and Administrative Authorities

• Overview

• Coverage

• Policy

  • Instrument of Delegation

  • Position Based Delegations and Administrative Authorities

  • Exercising Delegations and Administrative Authorities

  • Staff Related Travel and Expenditure

• References

• Internal Controls / Responsibilities

• Monitoring of Compliance

• Forms

Overview

This policy outlines the requirement to establish a delegations and administrative authorities framework to ensure that officers at all levels of the organisation are aware of what they are authorised to do, what the processes are to exercise this level of authority, what the limits of that authority are, and more importantly what an officer is accountable and responsible for. This is particularly important in a large decentralised organisation where the responsibility for decision-making, management and outcomes has been devolved to relevant schools and business units.

Delegation is an act of transferring from one position to another position(s) the legal (statutory) authority to exercise a function or power, while administrative authorities are government or department issued instructions specifying how delegated functions and powers should be exercised in accordance with statutory, policy and administrative requirements.

Coverage

This policy relates to all staff specifically involved in procurement and financial activities.

Policy

The Department is required by legislation to exercise a delegations framework in order to ensure that departmental officers have appropriate authority to conduct their activities, sign transactions, enter into contractual arrangements, and that all transactions incurred are appropriately authorised.  A delegations framework also allows the Secretary, as Head of Agency, to operate the financial business of the Department in an efficient and effective manner.

• Delegations are conferred through a formal, written and signed ‘instrument of delegation’ by the Secretary as Head of Agency.

• The Secretary cannot delegate his/her authority to delegate to other departmental positions.

• Delegations are made to positions at the most appropriate level in the department in terms of decision making, financial, asset, information and human resources management responsibility and accountability.

Instrument of Delegation

In accordance with the ‘instrument of delegation', delegates must exercise delegations and administrative authorities within their identified limitation and responsibility areas, as applicable to specific position groupings and in terms of financial, procurement and asset management responsibility and accountability.

• Format of Delegations and Administrative Authorities
• Attachment 2 - Delegations
• Attachment 3 - Administrative Authorities - Financial Management
• Attachment 3 - Administrative Authorities - Procurement
• Attachment 3 - Administrative Authorities - Facilities Management

Position Based Delegations and Administrative Authorities

Delegations and administrative authorities are assigned to positions.  However, it is  the person currently occupying a position to which a delegation has been made who is able to exercise that delegation.  This person may be the substantive occupant of the position or may be acting in the position.

For schools and business units, delegations will be attached automatically to the following position groups:

Principals and Managers will be required to nominate and register individual positions to which a delegation is to be made, for the following position categories;

Positions Requiring Individual Nomination

Positions below Manager and Principal/Assistant Principal levels will not have the authority to exercise a delegation unless they have been individually nominated and registered by their respective Manager or Principal.

Nominated positions are to be registered using a Register of Delegated Financial Authority form, while staff occupying a nominated position  will be required to sign and complete an Acknowledgement of Delegated Financial Authority form.

It is the responsibility of each Business Unit Manager and School Principal to review local delegation arrangements and provide a clear specification on lines of responsibility and authority on what an officer is accountable for in respect to procurement and financial matters.

The following should be taken into consideration when nominating individual positions to exercise delegations:

• That the allocation of the responsibility and accountability of financial decisions should be made at the most efficient and effective level of authority.

• That Managers and School Principals are free to place local limitations on staff and to set delegated financial authority/monetary thresholds to a lesser amount, than that indicated in the delegations framework, for any nominated position category.  Any limits placed on positions must be indicated on the organisational unit's 'Register of Delegated Financial Authority'.

• That delegated financial authorities must be balanced with appropriate accountability and internal controls, ensuring the integrity of financial records and processes.

Business Unit Managers and School Principals are responsible for ensuring that they keep an up-to-date  'Register of Delegated Financial Authority', and inform Finance and Procurement Services of any additions or amendments.

Positions Category Exceptions

There will be within some organisational units an administrative requirement, for persons holding certain nominated positions, to have delegated financial and purchasing authority above those monetary limitations specified for a particular position grouping, detailed in Attachment 2, Delegations.

Those nominated position category exceptions will require separate approval by the Secretary.  This approval process will be managed, on behalf of schools and business units,  by the Finance and Procurement Services Section.

Exercising Delegations and Administrative Authorities

Holders of delegated financial and purchasing authority must become familiar with the delegation policy and guidelines and have an appropriate understanding and knowledge of the requirements of relevant legislation, Treasurer’s Instructions, departmental policies and guidelines relating to the delegation they hold.

Reference should also be made to the ‘Acknowledgment of Delegated Financial Authority’ clause which broadly outlines how to exercise financial and purchasing delegations.

Financial, procurement and facilities management delegations and administrative authorities must be exercised within specified delegated monetary thresholds, budget allocations, responsibility areas and in accordance with government procurement guidelines and departmental policies.

This covers:

• the authorisation and commitment of all expenditure transactions;

• the authorisation for the procurement of all goods and services, and

• the authority to enter into contracts for and on behalf of the Crown (e.g. leases and contracts for works and services).

In exercising delegations and administrative authorities the following actions should be considered before committing departmental expenditure:

• prior to any purchase order being placed on suppliers, or funds expended, it is necessary for the expense to be formally approved by an officer with appropriate delegated authority;

• effective internal controls should provide for the functional separation of the approval/certification of expenditure payments (invoice) from the purchasing of goods and services (purchase order).  In other words, delegated officers should not authorise payment for a transaction (i.e. an order) which they have previously approved;

• the authorisation for the payment of invoices via a cheque, or corporate card, should be seen as an action which occurs after the appropriate approval has already been obtained;

• the delegate, in accordance with the ‘instrument of delegation’ must exercise delegations and administrative authorities with particular preference given to the relevant limitations as applicable to specific position groupings.

• officers occupying positions that hold delegated financial and purchasing authority may exercise that delegation on an item of expenditure not exceeding the monetary limit specified and within identified limitations, with the exception of those expenses which require a specific delegation.

• Approval of transactions/payments must not exceed the delegation holders monetary delegated financial and purchasing authority and be limited to the positions area of organisational responsibility.

• The delegate must obtain authorisation from another officer with the appropriate delegated limit, if expenditure is to exceed their own delegated limit.

• Corporate card holders hold a delegated financial authority for individual expenditure transactions using the corporate card up to a limit of $2,000.  However, corporate card holders do not hold this authority when using other methods of purchase and payment.  Expenditure made using the corporate card must comply with the conditions of use as detailed in the departments’ corporate card guidelines.

Delegates Name and Position Title

If a delegate exercises a delegation or an administrative authority in writing it is essential that he/she signs the relevant documentation  in person.  Signature stamps and signing for and/or on behalf of a delegate are not permissible and will render the action invalid.

To ensure transactions are appropriately authorised, delegates must sign all relevant transactions, such as purchase orders, invoices and journal documentation etc, stating name and position title e.g. Jill Citizen, Manager (Finance) or Joe Brown, A/School Executive Officer (School Name).

Note that electronic signatories/authorities referred via email or established through system generated workflow processes, such as SACS and Finance One purchasing modules, should not exceed the authorised user’s delegated monetary threshold for their relevant position category.  A copy of the approval referred via email should be filed with original documentation to substantiate authority given.

Staff Related Travel and Expenditure

In respect to the following staff related transaction types, all claims and/or statements must be forwarded in all instances to the School Principal or relevant Business Unit Manager, and in respect to Business Unit Managers to their respective immediate senior officer, and in respect to School Principals to their next senior officer i.e. Assistant Principal/Senior Teacher, for countersignature.

• Personal claims for reimbursement;

• Reimbursement of travel expenses;

• Taxi related expenditure; and

• Corporate cardholder expenditure.

This is a standard arrangement and must be observed in relation to exercising delegations and administrative authorities.  This cannot be delegated by any other means.

References

• Ministerial Authorisation

• State Service Act 2000 S.35

• Financial Management and Audit Act 1990 S.14, 21 and 22

• Education Act 1994 S.41(3), 42(1), 45(2) and 85

• Crown Lands Act 1976 S.71A(1) and S.71A(2)

• Treasurer’s Instruction 902

Internal Controls / Responsibilities

The delegations framework documentation contains comprehensive financial, procurement and facilities management delegations and administrative authorities for each position category in the department for which a delegated authority is required, and identifies its appropriate monetary limit.  In addition, the documentation provides a clear outline of accountabilities within identified limitations and provides for an integrated summary of all legislation, policy and work practice guidelines to assist in exercising appropriate delegations.

Monitoring of Compliance

The exercise of delegations will be subject to regular internal audit, external audit and performance audits.

Forms

• Register of Delegated Financial Authority
• Acknowledgement of Delegated Financial Authority