B7 Delegated Authority Levels and Authority to Approve New Project Proposals

Compliance Tasks

1. The fundamental financial principles that govern the use of DFID funds must be adhered to. All staff have responsibilities under DFID's decentralised financial management system and must:

• be familiar with, and follow, the procedures relevant to their post and type of work
• not exceed HMT's delegated authority or DFID's internal delegated authority levels; and
• ensure that all proposals for spending funds are within the scope of relevant statute (e.g. the International Development Act 2002 and the Human Rights Act 1998) and that expenditure is lawful).

Task assigned to: All Staff

2. While long-term proposals are encouraged within an appropriate policy environment, those approving proposals beyond the Comprehensive Spending Review (CSR) period must:

• inform Financial Management Group (FMG) in order to ensure that we track potential future proposed spending levels
• ensure that such proposals remain in a form which is not legally binding (normally through use of a standard Memorandum of Understanding (MOU)) and which clearly reflect the need for effective aid partnerships
• in addition, Directors must ensure that the total of Divisional proposals beyond the CSR period do not exceed, in any one year, 75% of the agreed resource budget in the final year of the CSR period.

Task assigned to: All Staff, Head of Department

3. Where higher levels of delegation linked to country planning apply, project expenditure proposals above £40m, and all politically sensitive, novel or contentious spending proposals, regardless of value, must be submitted for approval through the relevant Director General, to the lead Minister, the Parliamentary Under Secretary of State (PUSS). The PUSS will exercise judgement when to consult the SofS.

Task assigned to: Head of Department, Project Staff

4. Project proposals above £80m and all general PRBS spending proposals over £20m must be submitted through the relevant Director General and where he is the lead Minister, the PUSS, for approval by the SofS.

Task assigned to: Head of Department, Project Staff

5. Significant subsequent design changes to Project Documents and costs, including changes as a result of monitoring or review recommendations and no cost extensions, must be approved at the same or higher level as that at which the original was approved. Officials approving relatively modest increases, which carry an original approved budget beyond their own authority, should exercise judgement whether the changes are such as to require scrutiny and formal approval at the higher level.

Task assigned to: Project Staff

6. Staff delegating authority must ensure an appropriate separation of responsibilities by not giving delegated authority to approve to members of staff who themselves have been leading on the design of the project.

Task assigned to: All Staff, Head of Department, Project Staff

7. Heads of Department/Overseas Office must ensure that the appropriate delegated authority levels are set in ARIES using the facility within DFID Connect.

Task assigned to: All Staff, Head of Department, Head of Overseas Office

8. Confirmation of Delegated Authority Levels is given in writing, in the form of an automated e-mail. This is sent when the delegated authority levels are set in ARIES.

Task assigned to: All Staff, Head of Department, Head of Overseas Office

9. Staff delegating approval authority must review annually at least one decision by each officer holding delegated authority to ensure quality and compliance.

Task assigned to: All Staff, Head of Department, Head of Overseas Office

Risks of non-compliance

• Potential abuse of funds
• Expenditure being approved by officers inexperienced to do so
• Inappropriate risks may be approved
• Potential Risk to DFID's reputation.

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