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 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

13

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.

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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.

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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 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

operational

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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Policy Operators

The Delegation of Financial Authority is governed through the following operators:

The DoFA Policy

outlines the

purpose, principles

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

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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.

Authority Positions Applicable2 Contracts4EOI/RFP5

(Quote/Tender/Tender Waiver)

General Expenditure6

University Credit Card

Travel Hospitality Other

Band 1 Senate • >$5 million• >$5 million (contract

required5)

Band 2 Vice-Chancellor • $1 - $5 million• Approve Tender

Waiver (per Expenditure Level)

• $1 - $5 million (contract required6)

• Approval across full Process

• Approval across full Process

• Per Delegation Band 4

Band 3UWA Executive /

Chief Financial Officer• $250,000 -

$999,999

• Approve Tender Waiver (per Expenditure Level)

• $250,000 - $999,999 (contract required6)

• Approval across full Process

• Approval across full Process

• Per Delegation Band 4

• Asset Disposal (>$100,000 PP7)

• Debit Notes (>$10,000)

Band 4Chief / Director / Associate Director /

University Librarian / Head of SDC /

Manager, Financial Services

• <$250,000 (contracts which have undergone a tender process)

• Approve Tender Waiver

• Approve Quotation Waiver (per

Expenditure Level)

• $50,000 - $249,999 (contract required > $100k6)

• Application Approval• Cancellation• Suspension of Card &

Limit Increase

• Revoke/Reinstate Domestic Auto-Approval

• Approve Available Funds International Travel

>$10,000

• In excess of UWA guidelines e.g. >$80 per head for dinner or >$35 for finger

food

• Asset Disposal (<$100,000 PP7)

• Debit Notes (<$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 & Exec. Deans) / Centre Director (reporting

to PVC & Exec Deans)

• Managed in conjunction with Delegation Band 5b

• Managed in conjunction with Delegation Band 5b

• Managed in conjunction with Delegation Band 5b

• Primary Approver (Concur Level 2)

• Managed in 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

• Approve Quotation Waiver (per Expenditure Level)

• < $50,000

• Approve Statement• Approve Acquittal &

Cancellation for staff leaving UWA

• Approve Available Funds International Travel <$10,000 (Concur Level 1)

• Within UWA guidelines e.g. <$80 per head for dinner or <$35 for finger

food

Band 6Financial and Staff Resources Officer /

Coordinator, Collection & Access Services• < $50,000 • Acquittal

• Approve Available Funds International Travel <$10,000 (Concur Level 1)

All Staff All Staff

• Domestic Auto-Approval 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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Delegation Bands in the UWA Structure

94

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

6 (<$50,000)

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

organisation structure, the

following two examples will

showcase key concepts.

Finance

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.

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Staff

(Requisitioner)

EDCS

Director

Campus

Mgmt.

Director

Service

Delivery

Chief

Digital &

Inf. Officer

3 ($250k-1m)

4 ($50-250k)

NILStaff 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 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

114

Director

Campus

Mgmt.

Director

Service

Delivery

Chief

Digital &

Inf. Officer

Delegation Band

3 ($250k-1m)

4 ($50-250k)

NILStaff StaffProject

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…

1EDCS

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 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

3Contract 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.

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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.

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 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.

135

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 Authority 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

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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

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

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 —

• 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 that relate to the same expenditure and was split

to achieve lower Delegation Band approval.

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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

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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 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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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 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:

• 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 breach; and

• acting in good faith and upholding and not misusing Delegation of Financial Authority.

198

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 listed.

208