Financial Delegation Policy

Policy and Policy Framework

Clear processes, appropriate authorisation and accountability will govern expenditure of Skills Insight funds. The expenditure will comply with board, JSC grant requirements, management and legislative requirements.

The board will have approved in principle all foreseen commitments and these commitments will appear in the operational and strategic plans and in budget documentation supplied to the Board annually and updated at each quarterly meeting.

Such expenditure will not require further board approval before being made unless the commitments vary to the extent that the overall Skills Insight budget will be impacted in a material manner e.g., the overall budget being exceeded or expenditure in any individual area that would impact the total budget in a material manner. Additionally, if expenditure will result in financial, political or industry implications that vary substantially from what has been previously reported, or in a manner inconsistent with agreed strategy, such issues will be brought to the board for approval.

The CEO will sign off (unless this function is delegated by the CEO to a senior manager) on any commitment consistent with the delegation schedule that has been approved by the board (attached as part of this policy).

Contract expenditure

Skills Insight generates most of its income via contracts for work with government and occasionally with other organisations. Most of these contracts are reoccurring and reported to the board as part of the budgetary process. The potential for new contracts are also reported to the board. This reporting to the board, and in lieu of any objections to proposed contracts by the Board, provides the CEO with the authority to enter into and sign such contracts and to expend to the amounts of income in the contracts as per the contract budget (where applicable).

Most contracts have the requirement that all of the funding provided by the contract must be spent on the outcomes and activities outlined by the contract. This feature effectively provides a spending parameter for the CEO to work within for most contracts. For contracts not requiring full expenditure of funds, contract surpluses are allocated to retained earnings for Board decisions regarding future use which will often be via the annual or quarterly budget and expenditure reporting.

Operational expenditure delegation limits and principles (consistent with delegation schedule attached)

Most expenditure will be pre-approved via the Board acceptance of the annual budget, a particular policy statement e.g., sponsorship or a proposal endorsed by Directors as part of a meeting or via email. The CEO has the delegated authority to expend to approved budgets as per reports and proposals endorsed by the Board.

For items not within the designation of the budget the CEO has the delegated authority to expend up to $5,000 on any one operational item without prior approval of the board, providing expenditure is in keeping with company policy and is directed toward achieving outcomes in a strategic plan, a report to the Board or a contract commitment in a contract approved by the board. Approval of this expenditure will be made via the signatory process and in subsequent financial reports to the Board.

Any expense items not reflected in the budget and in excess of $5,000 must be presented to the board for approval. In urgent cases, the CEO can seek approval by email from board of directors; however emergency expenditure can be approved by the chairperson or the deputy chair prior to reporting this expenditure to the Board.

Expenditure on individual operational items such as catering, accommodation, meals, travel, office maintenance/repair, IT maintenance/repair, recruitment, advertising/branding, printing/stationary/postage costs may be incurred, within budget by managers delegated by the CEO, up to a limit of $1,000 per item and a total of $5,000 in any particular payment period.

Authorisation via signing of cheques and money transfers

Two signatories are required to check (a primary and secondary signatory), authorise, and sign each expenditure request. The primary management signatory will be the CEO.

The primary signatory will be held accountable for approving an electronic transfer payment. The secondary signatory (a director, usually the chair) is responsible for ensuring that approval has been given by the primary signatory and expenditure is consistent with board budgets and policy and consistent with delegated authority.
The primary signatory is to give approval for each transfer via an expenditure request form, via fax, email or presented face to face. The recipient of a payment cannot approve and sign for a payment that they will receive. (With exception of standard Director payments as per scheduled meetings of the board and the primary signatories’ standard salary payments and documented expense reimbursements).

When a payment outside of those mentioned above is being made to one of the signatories, or the organisation they are employed by, an alternative director will need to authorise the transaction.

Payments are to be authorised by the primary signatory, only if a valid tax invoice has been issued or other relevant documentation for subscriptions, services, software licences, salaries, reimbursement and expenses and proper financial processes subject to audit are adhered to.

The board can approve amendments to current signatories, through the usual board meeting and bank related processes.

Payment of incoming invoices

The finance manager is responsible for adhering to the established financial processes, (Accountant and auditor endorsed processes) when paying incoming invoices. This includes ensuring that invoices are genuine, accurate, services have been received and payments are made into correctly identified bank accounts utilising approved internal bank account identification protocols.

The finance manager will oversee and monitor incoming invoices to ensure the expenses are within budget and processed correctly with authorisation relevant to the delegation schedule.

Related Documents

This policy is to be read in conjunction with other relevant policies, including:

Financial delegation schedule

Financial approvals are delegated to the CEO with the exception of the items listed below. In addition to any item identified below, all significant expenditures will be brought before the board for approval if:

Note: regardless of delegation authority, all payments are made via a due signatory process. The primary signatory is the CEO, or another person appointed by the Board as a primary signatory. The secondary signatory is a director, usually the Director performing the role of Chair of the Board. One or more additional directors are nominated as secondary signatories.