Conditions and Limitations: Exercising Financial Delegated Authority 

The below conditions and limitations were approved by the Chief Executive on 16 October 2024. These relate to financial delegations of authority made by the Chief Executive at the operational level. These replace the conditions and limitations set out in clauses 1 -10 of MD 102 of the Delegation's Manual, except for those conditions and limitations which relate to contracts.

 

Definitions 

Annual budgeted amount = means the sum of the total expenditure budget for the financial year (excluding depreciation and interest), total projects budget for the year financial year and the individual capital project budget for the financial year at cost centre.

Total project/activity budget = means the total amount allocated for a specific project or activity

Group budget = means the total budget for all activities and projects allocated to a group.

Delegate = Either a primary of secondary delegate

Primary delegate = Those bodies or individuals which receive a delegation directly from Council are Primary delegates

Secondary delegate = Any delegation made by a Primary delegate is a sub-delegation and the sub-delegate is a Secondary Delegate

e.g., Council delegates to the Chief Executive = Primary delegate

Chief Executive delegates to an Executive Director = Secondary delegate.

 

 

 

Condition/Limitation 1: Who can delegate duties, powers, and responsibilities of the local authority.
  1. Only the Chief Executive may amend the wording, format or structure of the financial delegations of authority and amend, set the financial authority for any operational role.


Condition/limitation 2: Who can receive a delegation?

  1. Those that receive a financial delegation of authority can only receive it via the Chief Executive.
  2. Those that may receive a delegation at the operational level from the Chief Executive are:
    • a staff member, or
    • an external person undertaking the work of a staff member of council (as long as the Chief Executive is not restricted, limited or prevented from ensuring the delegation is appropriately exercised and managed).

     

  3. Delegates that receive a financial delegation of authority from the Chief Executive, are Secondary Delegates.
  4. Changes or additions to a staff members financial authority limit must be made in writing via their ELT member. The change or addition can only be approved by the Chief Executive.

 

Condition/limitation 3: What can and cannot be delegated?

Secondary delegates are prohibited from delegating their financial authority to another.

However, when a staff member steps into an “acting” role, that staff member may exercise the delegations of the role they are covering for the period they are in the acting role.

 

Conditions/Limitation 4: Exercising financial delegated authority

  1. To exercise a financial delegation, a delegate must
    1. Have a financial delegation for the relevant expenditure activity,                                                                                                                                                                                                                                                                                                                                                                              Note: if a delegate only has a purchase order delegation, they cannot approve purchase orders relating to any of the other expenditure activities. 
    2. Have budget allocated for the project or activity within the approved Annual Plan, and
    3. Not be prohibited from exercising the financial authority due to any other delegation.

       

  2. The limit set out in the Delegation Register is an “up to” figure. To exercise up to the full amount depends on the budget allocated and whether there is a financial delegation for the relevant expenditure activity.

     

  3. The limits set out in the Delegation Register relate to a single cost, procurement or the total contract value.

     

  4. The Chief Executive is the only authority who can approve costs which fall outside of a group or project budget where the costs are within the Chief Executive’s financial authority.

     

  5. Except for projects, budget holders with the approval of their Executive Director may make adjustments to specific line items within their budgets, provided the changes do not:

     

    • significantly impact on approved service levels;
    • increase the net cost of operations or the net cost of capital expenditure in total for that significant activity; or
    • adjust capital expenditure between renewals and improvements in such a manner as to increase the capital funding required after reserves transfers.

       

  6. Delegates with financial authority must exercise their authority in line with the conditions, limitations, processes and procedures set out in these statements and any other applicable policy.

     

  7. All expenditure must be approved by the line manager of the staff member “(the one up principle”).