Session 10: Delegations of Authority Presented by: Andrew CookePricewaterhouseCoopers.
-
Upload
paul-melton -
Category
Documents
-
view
216 -
download
0
Transcript of Session 10: Delegations of Authority Presented by: Andrew CookePricewaterhouseCoopers.
Session 10: Delegations of Authority
Presented by:• Andrew Cooke PricewaterhouseCoopers
What would you like to grow?
whatwouldyouliketogrow.com.au
Delegations of Authority
ANZUIAG Conference2010
What would you like to grow?PwC
Setting the scene
GFC
Growth through better business decisions
Risk culture
Empowerment of staff
Cut through the red tape
Make people more accountable
3
What would you like to grow?PwC
Agenda
Delegation of Authority
What benefits can it bring
A delegation decision model
What are some common problems
Key insights
The USQ experience
Questions
4
What would you like to grow?PwC
Delegation of Authority
• Authority to make business decision
• Support accountability and governance
• Responsibility / accountability / authority
• Forms the basis of your decision escalation process
• Single source of truth or guiding principles
5
Successful organisations exhibit characteristics of structural clarity through formal and informal accountabilities
Informational accountabilities(Underpinned by leadership style,
culture, trust, operating principle/values etc)
Formal accountabilities
Clearly definedand documented
Assigned to expertisewith ability to act
Congruent acrossmultiple dimensions
Open and robustcommunication
Constant learning andeducating from failure
What would you like to grow?PwC
What benefits can it bring
• Empowers employees
• Provides or builds on your internal structure
• Protects your assets from undue risks or liabilities
• Provides alignment of resources to decision making
• Embeds risk appetite and tolerance throughout your organisation
• Provides greater clarity on what is truly important to your organisation
6
What would you like to grow?PwC
A delegation decision model
7
Decision models
Governance structures
Delegations of authority
Key decisions
Organisation structure
Policies and
standards
Skills and competencies
Processes and procedure
Governance processes
Job description
Descriptor Term Definition
A Accountable Person or role who is ultimately accountable for the decision, who owns the outcome from the decision.An Accountable must signoff (Approve) on work that a Responsible provides
R Responsible Person or role responsible for ensuring that an item is completed / a decision is made. There is typically one role with a participation type of Responsible
I Informed Person or role that needs to kept informed of the status of the decision making process – usually one way communication on completion
C Consulted Person or role whose subject matter expertise, knowledge, information or other input is required in order to make the decision
What would you like to grow?PwC
What are some common problems
• Complexity of DoA and business processes
• Misalignment of DoA and business processes
• DoA not aligned with organisational structure / decision making
• Ineffective decision making structures
• Lack of staff awareness and inappropriate training
• Failure to enforce (e.g. code of conduct breach)
• Poorly managed when staff in temporary roles
8
What would you like to grow?PwC
Key insights
Guiding Principle vs Single Source of Truth
• Guiding Principle – high trust environment where levels of delegation are linked to accountabilities, tend to set parameters and are less prescriptive than a ‘single source of truth’3
• Single Source of Truth – the DoA is a single (central) prescriptive document for decision making and operational action
• Areas typically cover- Budgeted vs non-budgeted
- Capital and operating expenditure
- HR
- Pricing
- Contracts and supplier arrangements
- Marketing
9
What would you like to grow?PwC
Key insights
10
What would you like to grow?PwC
The USQ experience
11
Decision models
Governance structures
Delegations of authority
Key decisions
Organisation structure
Policies and
standards
Skills and competencies
Processes and procedure
Governance processes
Job description
Strategy
Selection
RACI Model
Council and Mgt
Cmttee’s
ORMP - Budget
System workflo
w
Align for
reporting
Contract
Perf System
Access
Code of Conduc
t
ITFacilitie
s
Risk / Fraud
What would you like to grow?PwC
The USQ experience
12
Type Position Comments
Vice Chancellor $0 g h Unlimited
USQ: $5,000,000 Others: Unlimited
Deputy Vice Chancellor $0 g h h Unlimited
USQ: $250,000 Others: $500,000 Others: Unlimited
Deans of Faculties $0 g h h Unlimited
USQ: $100,000 Others: $200,000 - $250,000
Chief Financial Off icer $0 g h h Unlimited
USQ: $100,000 Others: $250,000 Others: Unlimited
Others: $100,000
Chief Operating Off icer $0 h h g h Unlimited
Others: $100,000 USQ: $250,000 Others: $500,000
Others: $200,000
Directors $0 g h h h Unlimited
USQ: $40,000 Others: $100,000 Others: Unlimited
Others: $50,000
Managers $0 h g h Unlimited
USQ: $40,000
Others: $20,000 Others: $50,000
Vice Chancellor $0 g h Unlimited
USQ: $5,000,000 Others: Unlimited
Chief Operating Off icer $0 h h g h Unlimited
Others: $100,000 USQ: $250,000 Others: $500,000
Others: $200,000
Executive/Group Manager $0 h g h Unlimited
USQ: $100,000 Others: $200,000
Others: $50,000
Managers $0 h g h Unlimited
USQ: $40,000
Others: $20,000 Others: $50,000
Limit
Expenditure
Unlimited expenditure limits relate to appropriate cohort directors only
Expenditure limits dependant on appropriateness of manager.
CapexHalf of universites under analysis did not delegate authority to Managers for Capex
Half of universites under analysis did not delegate authority to Managers for Capex
What would you like to grow?PwC
The USQ experience
13
Type Position Comments
Vice Chancellor $0 g h Unlimited
USQ: $5,000,000 Others: Unlimited
Deputy Vice Chancellor $0 g h h Unlimited
USQ: $250,000 Others: $500,000 Others: Unlimited
Chief Operating Off icer $0 h g h Unlimited
USQ:$250,000 Others: $500,000
Others: $200,000
Group Manager $0 g h h h Unlimited
USQ: $15,000 Others: $50,000 Others: Unlimited
Others: $20,000
Directors $0 g h h h Unlimited
USQ: $15,000 Others: $50,000 Others: Unlimited
Others: $20,000
Managers $0 h g Unlimited
Others: $20,000 USQ: $50,000
Others: $50,000
Vice Chancellor $0 g h Unlimited
USQ: $6,000,000
Others: Unlimited
Chief Operating Off icer $0 h g Unlimited
Others: $100,000 USQ: $6,000,000
Chief Financial Off icer $0 h g Unlimited
Others: $250,000 USQ: $6,000,000
Directors/Group Managers $0 h h g h Unlimited
Others: $100,000 USQ: $6,000,000
Others: $50,000 Others: Unlimited
Chief Financial Off icer $0 g Unlimited
USQ: Unlimited
Others: Unlimited
Directors $0 g Unlimited
USQ: Unlimited
Others: Unlimited
Unlimited expenditure limit is w ithin select group only
Contracts
Generally included in regular expenditure delegations
Unlimited expenditure limits relate to appropriate cohorts only
Generally included in regular expenditure delegations
Unlimited expenditure limits relate to appropriate cohorts only
Unlimited expenditure limits relate to appropriate cohorts only
Limit
General Journals
Generally included in regular expenditure limits
Generally included in regular expenditure limits
Orders
Investments, Salaries, Leases, Overheads
Other University delegations relate to Board & Off ice Directors
What would you like to grow?PwC
The USQ experience
14
Type Position Comments
Chief Financial Off icer $0 g Unlimited
USQ: Unlimited
Others: Unlimited
Directors $0 g Unlimited
USQ: Unlimited
Others: Unlimited
Chief Financial Off icer $0 g h Unlimited
USQ: $5,000 Others: $100,000
Directors (Finance) $0 g h Unlimited
USQ: $5,000 Others: $100,000
Vice Chancellor $0 h g h Unlimited
Others: $25,000 USQ: $5,000,000 Others: Unlimited
Chief Operating Officer $0 h h g Unlimited
Others: $20,000 USQ: $5,000,000
Others: $5,000
Chief Financial Off icer $0 h h g Unlimited
Others: $25,000 Others: $50,000 USQ: $5,000,000
Executive Director $0 h g h Unlimited
Others: $5,000 USQ: $50,000
Others: $100,000
Purchasing Card Chief Financial Off icer $0 h h g h Unlimited
Others: $100,000 Others: $250,000 USQ: $6,000,000
Others: Unlimited
Generally included in regular expenditure limits
Limit
Cheques
Tw o signatories required in all circumstances for all universities under analysis
Tw o signatories required in all circumstances for all universities under analysis
General Journals
Generally included in regular expenditure limits
Generally included in regular expenditure limits
Write-offs
Large w rite-offs generally chanelled through Vice Chancellor
Write-offs split into categories. Large w rite-offs chanelled through Vice Chancellor
Write-offs split into categories. Large w rite-offs chanelled through Vice Chancellor
Write-offs split into categories. Large w rite-offs chanelled through Vice Chancellor. No authority given to directors at some universities.
What would you like to grow?
Questions
© 2010 PricewaterhouseCoopers. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity