Policy: Delegation of Financial Authority

Transcription

1 Policy: Delegation of Financial Authority 1 Purpose The purpose of this Policy is to 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; and contribute to a University culture of integrity. This Policy expresses Delegation of Financial Authority: definition Section 2.0; fiduciary duties Section 5.0; eligibility Section 6.0; adding Section 6.0; removing Section 6.0; transferring Section 6.0; restrictions Section 7.0; and exceptions Section 8.0. This Policy is to be read in conjunction with: Delegation of Financial Authority Matrix; Delegation of Signing Authority; Conflicts of Interest Policy; UWA Code of Ethics and Code of Conduct; and Delegation of Financial Authority Procedures. 2 Delegation of Financial Authority Delegation of Financial Authority allows a Financial Delegate to enter into official and legitimate Financial Commitments on behalf of the University as per their specific Delegation Band. 3 Scope 3.1 Institutional Scope The scope of this Policy applies to the entire University. Delegation of Financial Authority applies across the University in accordance with the Delegation of Financial Authority Matrix, and is based on Financial Commitment levels rather than restricted to specific business areas. Refer to the Delegation of Financial Authority Procedures for details regarding restrictions. Page 1 of 6

2 The underlying principles of: ensuring University funds are used for appropriate business purposes; the most appropriate and well-informed members of the University are empowered to act on its behalf; ensuring probity throughout the approval and commitment process; and achieving the desired outcomes to further advance the University s goals, are integral to the objective of this Policy. 3.2 Individual Scope The scope of this Policy applies to Financial Delegates, when determining the eligibility of a University position in accordance with the Delegation of Financial Authority Matrix; adding a Delegation of Financial Authority to the Financial Delegate Register; removing a Delegation of Financial Authority from the Financial Delegate Register; performing a Delegation of Financial Authority; and transferring to another University position. 4 Delegation of Financial Authority Matrix The Vice-Chancellor will delegate financial responsibilities to University positions determined as per the Delegation of Financial Authority Matrix. A Financial Delegate will be accountable for the financial responsibilities delegated to them by the Vice- Chancellor. An Authorised Officer by default has the authority to approve Financial Commitments for all business across the University. Subject to the Statutes, regulations and by-laws of the University, the Vice-Chancellor may, in writing, delegate any function or any power or duty conferred or imposed upon the Vice-Chancellor (except this power of delegation) to any member of the staff of the University or person or persons or committee of persons. (The University of Western Australia Act 1911, Section 27, Clause 3) Delegation of Financial Authority are banded to ensure that appropriate approvals are in place for specified levels of University Financial Commitments. The University will keep the Delegation of Financial Authority Matrix up-to-date and make it available to employees. 5 Fiduciary Duties The University must be financially accountable for its income, expenditure, assets and liabilities. Fiduciary Duties means exercising their 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; Page 2 of 6

3 reporting suspected breach; and acting in good faith and upholding and not misusing Delegation of Financial Authority. A Financial Delegate must understand and accept their Fiduciary Duties. 6 Management of Delegation of Financial Authority for an Authorised Officer 6.1 Eligibility of New University Positions Corporate Financial Services must assess newly created University positions for eligibility for Delegation of Financial Authority in accordance with the Delegation of Financial Authority Procedure. The Chief Financial Officer will advise the Vice-Chancellor, and any other required body, as to adding of new positions. 6.2 Eligibility of New Business Units Corporate Financial Services must ensure existing Financial Delegates have authority over the new Business Unit in accordance with the Delegation of Financial Authority Procedure. 6.3 Ongoing Review of Eligible Positions The Chief Financial Officer will review the Delegation of Financial Authority Matrix periodically as outlined in Section Adding a Delegation of Financial Authority Corporate Financial Services must add an Authorised Officer to the Financial Delegate Register in accordance with the Delegation of Financial Authority Procedure. 6.5 Removing a Delegation of Financial Authority Corporate Financial Services must cancel the Delegation of Financial Authority of a Financial Delegate and remove them from the Financial Delegate Register in accordance with the Delegation of Financial Authority Procedure, on the end date of the Financial Delegate s employment. 6.6 Transferring to another University Position Corporate Financial Services must cancel the Delegation of Financial Authority of a Financial Delegate transferring to another position within the University and remove them from the Financial Delegate Register in accordance with the Delegation of Financial Authority Procedure. 6.7 Revoking a Delegation of Financial Authority Corporate Financial Services must cancel the Delegation of Financial Authority of a Financial Delegate and remove them from the Financial Delegate Register in accordance with the Delegation of Financial Authority Procedure, on a date before the end date of the Financial Delegate s employment, as recommended by the manager or supervisor of the Financial Delegate to an Authorised Officer within their functional area with at least a Delegation Band three or higher. Page 3 of 6

4 7 Delegation of Financial Authority Restrictions 7.1 Budget A Financial Delegate must only use their Delegation of Financial Authority for Financial Commitments within the approved University budget for the current financial year. Non-budgeted capital, project and staff appointment expenditure or Financial Commitments will require a business case to be submitted to, and reviewed by, the relevant Finance SDC. 7.2 Conflict of Interest A Financial Delegate must not use their Delegation of Financial Authority to make payments to themselves; reimburse themselves; or make financial transactions with direct or indirect private or personal benefit. A Financial Delegate must understand and accept the requirements of the Conflicts of Interest Policy and must declare an actual, perceived and potential conflict of interest in accordance with the Conflict of Interest Policy. 7.3 Financial Delegate Value Authorisation and Contracts A Financial Delegate must only approve a Financial Commitment if the total value of that Financial Commitment is known, and the total value falls within the Delegation Band aligned to their position as outlined in the Delegation of Financial Authority Matrix, including a Financial Commitment to a large project extending over multiple financial years where the cumulative value of the Financial Commitment will be subject to the appropriate Delegation Band. A Financial Delegate must not split the value of a Financial Commitment to achieve a lower Delegation Band. A Financial Delegate must escalate an approval of a Financial Commitment to the relevant Authorised Officer when a contract variation or an option to extend a contract is exercised and revises the total contract value into a higher Delegation Band, in accordance with the Delegation of Financial Authority Procedure. All contracts binding the University must be signed by the appropriate Officer as set out on the Delegation of Signing Authority as specifically noted. However, where a Financial Commitment forms the basis of a contract and is not specifically noted in the Delegation of Signing Authority, then that contract requires authorisation in accordance with the Delegation of Financial Authority Matrix. 7.4 Quotation and Tender Waivers Quotation and tender waivers for expenditure or Financial Commitments with a material impact on capital and maintenance works in key functional areas such as Campus Management and Information Technology, will require consultation with the relevant Associate Director and Director of that respective functional area prior to any approval of a waiver. This will allow for functional expertise to be taken into account and the respective areas to have oversight of future expenditure and Financial Commitments. All quotation and tender waivers will require endorsement by the Strategic Procurement function prior to approval. All quotation and tender waivers will require approval by the appropriate Financial Delegate based on the total value of the waiver. Page 4 of 6

5 7.5 Restricted Grants Authorisation of Financial Commitments from a restricted grant must be in accordance with the relevant grant obligations so long as those obligations do not conflict with this Policy, in which circumstance this Policy takes precedence. 8 Exceptions to Standard Delegation of Financial Authority 8.1 Unoccupied University Positions with Delegation of Financial Authority An authorisation request for approval of a Financial Commitment must be referred to an Authorised Officer with the same Delegation Band as the unoccupied University position; or escalated to an Authorised Officer with the next higher Delegation Band as the unoccupied University position. Corporate Financial Services may recommend to an Executive member the appointment of an Acting Authorised Officer temporarily where an internally appointed employee of the University (i.e. an existing employee of the University Community) is an Authorised Officer of a lower Delegation Band and is deemed appropriate to act at the Delegation Band of the unoccupied University position for a specified period; or an externally appointed person to act as an Acting Authorised Officer with the Delegation Band of the unoccupied University position for a specified period. An Acting Authorised Officer holds the complete Delegation of Financial Authority as that of an Authorised Officer. 9 Delegation of Financial Authority Review and Monitoring The Chief Financial Officer will periodically review the Delegation of Financial Authority Matrix as outlined in the Delegation of Financial Authority Procedure and where appropriate, advise the Vice-Chancellor, and any other required body, on the required changes. Approvals of Financial Commitments under the Delegation of Financial Authority Policy will be monitored by Corporate Financial Services for appropriateness. 10 Breach of Policy 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 Conflicts of Interest Policy; and Fraud and Corruption Policy. Page 5 of 6

6 Part B: Definitions 11 Defined Terms 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 is defined in Section 5 of this Policy. 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. University is defined in the Policy Framework Policy. University Community is defined in the Policy Framework Policy. University Property is defined in the Policy Framework Policy. Page 6 of 6