Delegation of Financial Authority (DoFA)

1 Delegation of Financial Authority (DoFA)DoFAPresentation24 September 2018 Agenda/Contents1 Objective, Purpose & Key Principles2 duties & Responsibilities3 Consultation Process & Policy Operators4 Examples5 Procedures6 Signatory Form & Register7 Breach of Policy & Policy Location8 Definitions2 Objective & PurposeThe Delegation of Financial Authority will assist the University by facilitating good Financial governance and will allow the Financial Delegates to make more informed Financial will provide ongoing benefits to support the University s objectives in research, teaching and community 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 Financial Authority to University the responsibilities and accountabilities of a Financial Delegate when authorising a Financial Commitment on behalf of the to efficient and effective cost control and authorisation to a University culture of PrinciplesThe University must be financially accountable for its income, expenditure, assets and funds are to be used for official.

2 Legitimate expenditure and Financial Commitments for appropriate business and Financial Commitments to be within the approved University budget for the current Financial of Financial Authority is assigned to a positionas specified in the Delegation of Financial Authority Matrix and not to an of Financial Authority is granted across the University and not restricted to specific must be exercised by the most appropriate and well-informed Financial Delegation Authority is banded based on expenditure commitment must be signed by the relevant Financial Delegate taking into consideration the total value of that contract, irrespective of contract & ResponsibilitiesWhen authorisingFinancial 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 Financial Delegate: should seek clarification from the requesting person where required.

3 And, can reject an authorisationrequest, outlining the grounds for the ProcessThe 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 AuthorityThe objective was to establish the least number of Financial Delegates required to allow the effective University s efficiency while maintaining cost nature of the position s work requirement for the position to manage staff related of Senate resolutions, governance and Financial Delegates and operational requirementsFinancial ServicesConfirm Financial Delegates&endorsementExecutiveAgree Delegation Bands and associated values &final approvalVice-Chancellor12363 Policy OperatorsThe Delegation of Financial Authority is governed through the following operators:The DoFA Policy outlines the purpose, principles and all University positions with Authority to sign specific types of contracts on behalf of the University.

4 (owned by Risk & Legal)Signing AuthorityOutlines all University positions with DoFA by Delegation the key procedures to support the the Financial Delegate s details and specimen signature to confirm Form73 Delegation of Financial Authority MatrixThe 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. AuthorityPositions Applicable2 Contracts4 EOI/RFP5(Quote/Tender/TenderWaiver)Gener al Expenditure6 University Credit CardTravelHospitalityOtherBand1 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 3 UWA Executive /Chief FinancialOfficer $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)

5 Band 4 Chief / 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 >$80 per head for dinner or >$35 for finger food Asset Disposal (<$100,000 PP7) Debit Notes (<$10,000)Band 5aChief*/ Director*/ Associate Director*/ Pro Vice-Chancellor / University Secretary / Dean / Deputy Dean*/ Headof School / Deputy Head of School*/ Head of Division* / Dean & Head of School (reporting to PVC & Exec.)

6 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 5bAssistant 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 <$80 per head for dinner or <$35 for finger food Band 6 Financial and Staff Resources Officer / Coordinator, Collection & Access Services < $50,000 Acquittal Approve Available Funds International Travel <$10,000 (Concur Level 1)All StaffAll Staff Domestic Auto-Approval for all Staff in Concur TRAVEL (On-line Booking Tool) onlyDelegation BandsDetermine Level of Authority and AmountPosition SummaryEligible University University Positions can be found on page of Financial CommitmentsDepending on the type, various criteria apply83 Delegation Bands in the UWA Structure94 SenateVCSDVC, DVCs, & Executive DeansEDCSD irector Campus ManagementDirector Service DeliveryChief Digital & Information OfficerDelegation Band1 (>=$5m)2 ($1-5m)3 ($250k-1m)4 ($50-250k)5B(<$50,000)

7 Associate DirectorAssociate DirectorAssociate Director6(<$50,000)Assistant Managers & Team Leaders FSRF inancial & Staff Resources OfficerFinancial & Staff Resources OfficerFinancial & Staff Resources Officer5A(<$50,000)ExamplesUsing this part of the organisation structure, the following two examples will showcase key ManagersHeads ofSchoolUnoccupied Position Where a DoFAposition 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 (Requisitioner)EDCSD irector Campus Service DeliveryChief Digital & Inf. Officer3 ($250k-1m)4 ($50-250k)NILS taffStaffRequisitionerIf this staff member were to seek authorisation for $200,000 position were unoccupied, StaffThe authorisation can be given by a FD on the same level or authorisation can be given by an alternate Financial Delegate with the same Delegation Band or Band Contract extensions and variations (excludes employment contracts) are authorised based on total contract value and not as a separate extension or variation amount.

8 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 Extension and Variation114 Director Campus Service DeliveryChief Digital & Inf. OfficerDelegation Band3 ($250k-1m)4 ($50-250k)NILS taffStaffProject ManagerVariation AuthorisationWith a new total contract value of $270,000 a Level 3 Financial Delegate will need to review and authorise the is determined that a variation of $40,000 isrequired, which means AuthorisationA contract valued $230,000 was authorised by a Level 4 Financial Delegate, 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-offRequisitionThe below process steps illustrate the official Procurement Process and explains which documents trigger the authorisation of a Financial ProcessDoFANeed to purchase/ procureQuotation(s)

9 Or Tender ProcessPurchase Order AuthorisationPO AuthorisationThe Purchase Order represents the Financial Commitment between the University and a Supplier and is authorised by the appropriate Financial of Goods & ServicesInvoicePayment12453 Contract AuthorisationIf 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 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 ProceduresNew University PositionsIf 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 AuthorisedOfficerIf a University position with Delegation of Financial Authority is vacant, a Financial Delegate can be authorisedto act in a higher Delegation Band as an Acting AuthorisedOfficer temporarily if approved by a Financial Delegate with Delegation Band 3 or higher by completing the appropriate sections of the Signatory to another University PositionIf a Financial Delegate moves from one position to another position within the University.

10 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 Delegation of Financial AuthorityA 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 FormThe Signatory Form is required when: aFinancial Delegate commences in a University position with Delegation of Financial Authority ; a Delegation of Financial Authority is revoked; aFinancial Delegate is authorised to act in an unoccupied University position that currently has Delegation of Financial Delegate InfoComplete and signInstructionsComplete relevant sectionsRevoke or ActingComplete and signFootnotes & DutiesSDC InfoComplete146 Financial Delegate RegisterThe new Financial Delegate Register is hosted in benefits are the ability to set-up the Delegation of Financial Authority and relevant Delegation Bands against the correct staff members move in and out of these positions the Register remains up-to-date : PeopleSoft will continue to be the main source to view and check current Financial Delegations.