Governance

Policies and procedures

Policy No.
UP18/7
Function
Financial Management
Authoring Organisational Unit
Treasury and Investments
Date Approved
01/08/2018
Next Review Date
01/01/2021

The University of Western Australia

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University Policy on: Delegation of Financial Authority

Overtype “Policy Name” with the name of the policy.  This must convey specifically, accurately and succinctly what the policy addresses eg Award of Honours, Study Leave.

1 Purpose

a) The purpose of this Policy is to

i. assign financial authority to University positions;

ii. express the responsibilities and accountabilities of a Financial Delegate when authorising a Financial Commitment on behalf of the University;

iii. contribute to efficient and effective cost control and authorisation mechanisms; and

iv. contribute to a University culture of integrity.

b) This Policy expresses Delegation of Financial Authority:

i. definition                                              Section 2.0;

ii. fiduciary duties                                   Section 5.0;

iii. eligibility                                               Section 6.0;

iv. adding                                                  Section 6.0;

v. removing                                              Section 6.0;

vi. transferring                                          Section 6.0;

vii. restrictions                                           Section 7.0; and

viii. exceptions                                           Section 8.0.

c) This Policy is to be read in conjunction with:

i. Delegation of Financial Authority Matrix;

ii. Delegation of Signing Authority;

iii. Conflicts of Interest Policy;

iv. UWA Code of Ethics and Code of Conduct; and

v. Delegation of Financial Authority Procedures.

 

2 Delegation of Financial Authority

a) Delegation of Financial Authority means the ability of a Financial Delegate to enter into official and legitimate Financial Commitments on behalf of the University as per their specific Delegation Band.

b) Financial Delegate means an Authorised Officer, Acting Authorised Officer and/or Subdelegate.

c) Delegation Band means a level of Delegation of Financial Authority based on Financial Commitment levels for a specified group of University positions.

 

3 Scope

3.1 Institutional Scope

a) The scope of this Policy applies to the entire University.

3.2 Individual Scope

a) The scope of this Policy applies to Financial Delegates, when

i. determining the eligibility of a University position in accordance with the Delegation of Financial Authority Matrix;

ii. adding a Delegation of Financial Authority to the Financial Delegate Register;

iii. removing a Delegation of Financial Authority from the Financial Delegate Register;

iv. performing a Delegation of Financial Authority;

v. transferring to another University position; and

vi. sub-delegating a Delegation of Financial Authority.

 

4 Delegation of Financial Authority Matrix

a) 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.

b) The Vice-Chancellor will delegate financial responsibilities to University positions determined as per the Delegation of Financial Authority Matrix.

c) A Financial Delegate will be accountable for the financial responsibilities delegated to them by the Vice-Chancellor.

d) Authorised Officer means an Employee whose position within the University is deemed to have a Delegation of Financial Authority as per the Delegation of Financial Authority Matrix.

e) An Authorised Officer will have the authority to approve Financial Commitments for all business across the University.

f) Financial Commitment means 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).

g) Financial Delegations of Authority will be banded to ensure that appropriate approvals are in place for specified levels of Financial Commitments.

h) The University will keep the Delegation of Financial Authority Matrix up-to-date and make it available to Employees.

 

5 Fiduciary Duties

a) The University must be financially accountable for its income, expenditure, assets and liabilities.

b) Fiduciary Duties means —

i. exercising their Delegation of Financial Authority only on behalf of the University in support of official, legitimate University Financial Commitments;

ii. acting in the best interest of the University;

iii. reviewing and contesting, where required, requests for a Financial Commitment;

iv. reporting suspected breach; and

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

c) A Financial Delegate must understand and accept their Fiduciary Duties.

 

6 Management of Delegation of Financial Authority

6.1 Eligibility of New Positions

a) 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.

b) 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

a) 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

a) The Chief Financial Officer will review the Delegation of Financial Authority Matrix periodically as expressed in Section 9.

6.4 Adding a Delegation of Financial Authority

a) Financial Delegate Register means the register in which all official Financial Delegates approved by Corporate Financial Services are listed.

b) 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

a) 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

i. the end date of their employment; or

ii. a date as determined by the Manager or Supervisor of the Financial Delegate, with at least a Delegation Band three or higher.

6.6 Transferring to another University Position

a) 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.

 

7 Delegation of Financial Authority Restrictions

7.1 Budget

a) 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 Delegation of Financial Authority Conflict of Interest

a) A Financial Delegate must not use their Delegation of Financial Authority to

i. make payments to themselves;

ii. reimburse themselves; or

iii. make financial transactions with direct or indirect private or personal benefit.

b) Financial Delegates 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

a) 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.

b) A Financial Delegate must not split the value of a Financial Commitment to achieve a lower Delegation Band.

c) 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.

7.4 Quotation and Tender Waivers

a) 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.

7.5 Restricted Grants

a) 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.

7.6 Area Restriction

a) The Vice-Chancellor may request a specific Delegation of Financial Authority restriction in accordance with the Delegation of Financial Authority Procedure.

 

8 Exceptions to Standard Delegation of Financial Authority

8.1 Sub-delegation of Delegation of Financial Authority

a) Subdelegate means a member of the University Community who is a full-time or part-time academic or professional staff on a fixed-term or ongoing appointment to whom a Delegation of Financial Authority was sub-delegated to by an Authorised Officer.

b) An Authorised Officer may appoint one Subdelegate at any one time under the following conditions

i. the Authorised Officer is absent from the University for extended periods of time, including but not limited to

A. Parental Leave;

B. Long-service Leave;

C. Personal Leave; and

D. Sabbatical.

ii. the Authorised Officer and Subdelegate covering the extended absence have successfully submitted a completed Financial Sub-delegation of Authority Authorised Signatory Form in accordance with the Delegation of Financial Authority Procedure.

c) If the Authorised Officer is unable to sub-delegate, the Sub-Delegation of Financial Authority Signatory Form must be signed by the Authorised Officer’s Manager or Supervisor with at least a Delegation Band three or higher.

d) When sub-delegating, the duties as noted in Section 5, apply to and remain with both the Authorised Officer authorising the Sub-delegation and equally the Subdelegate.

8.2 Unoccupied University Positions with Delegation of Financial Authority

a) Corporate Financial Services must escalate an approval of a Financial Commitment to the next higher Delegation Band where a University position with Delegation of Financial Authority is unoccupied.

b) Human Resources may recommend to an Executive member the appointment of an Acting Authorised Officer.

c) Acting Authorised Officer means a member of the University Community appointed by Human Resources to temporarily act in an unoccupied University position with a Delegation of Financial Authority.

d) 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

a) The Chief Financial Officer will periodically review the Delegation of Financial Authority Matrix as outlined in the Delegation of Financial Authority Guideline and where appropriate, advise the Vice-Chancellor, and any other required body, on the required changes.

b) Approvals of Financial Commitments under the Delegation of Financial Authority Policy will be monitored by Corporate Financial Services for appropriateness.

 

10 Breach of Policy

a) 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.

b) A breach of this Policy must be reported to the Chief Financial Officer

c) Failure to comply with this Policy may also be considered a breach of the

i. Conflicts of Interest Policy; and

ii. Fraud and Corruption Policy.

 

11 Defined Terms

Acting Authorised Officer is defined in section 8.2

Authorised Officer is defined in section 4

Delegation Band is defined in section 2

Delegation of Financial Authority is defined in section 2

Fiduciary Duties is defined in in section 5

Financial Commitment is defined in section 4

Financial Delegate is defined in section 2

Financial Delegate Register is defined in section 6.4

Subdelegate is defined in section 8.1

University is defined in the University of Western Australian Act 1911.

University Community means all individuals who use University Property for study, work, recreation or other activities, or in the performance of official duties for the University.

University Property means tangible and non-tangible things, belonging to, or contracted to the University or members of the University Community, including campuses, facilities and services.

 

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This policy defines the nature and purpose of study leave provisions for academic staff and sets out eligibility criteria and other conditions that apply.

Example 2

This policy seeks to rationalise the award of honours across the University by addressing such issues as: entry standards, course content and structure, supervision, assessment, examination, grades, classifications, benchmarking and the maintenance and provision of documentation relating to these matters.  It is based on resolutions of the Academic Board flowing from the 1999 report of the Honours Working Party.

 

11.1.1 Policy No

UP18/7

This is the TRIM record number.  Note: This is not the TRIM file number.  If this is a new policy, apply for the policy number (contact rorett@admin.uwa.edu.au) after the policy has been approved by the relevant position or body and before it is submitted for storing in TRIM.

 

11.1.2 Approving body or position

Executive

Include the name of the body or position with responsibility for approving the policy.  This must be one of the following:

Senate

Academic Board/Council

Vice-Chancellor

Senior Deputy Vice-Chancellor

Deputy Vice-Chancellor (Education)

Deputy Vice-Chancellor (Research and Innovation)

Registrar and Executive Director (Academic Services) Executive Director (Finance and Resources)

 

11.1.3 Date original policy approved

August 2018

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11.1.4 Date this version of policy approved

August 2018

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11.1.5 Date policy to be reviewed

August 2021

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If the document contains procedures, include the date that these were last updated.  Procedures are approved by the relevant Director.

 

Insert the appropriate TRIM file number.  All policies must have a TRIM file for storing information relating to policy development and other related information.  Note this is not the policy number.  Apply for a TRIM file number at http:/intranet.uwa.edu.au/page/38742

 

11.1.6 Contact position

Associate Director Financial Compliance and Business Services

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