Policy 2.3.8: Delegation of Financial Authorities

Effective: April 1, 1998
Responsibility: Vice-President and Chief Financial Officer


STATEMENT OF POLICY

The Delegation of Financial Authorities (DFA) identifies the individuals who can exercise the authority to spend within an approved budget, in addition, when the signature of documents that commit the Corporation, undertakings, agreements, work orders, binding letters of intent, purchase orders, contracts and Corporate documents (hereinafter “Contracts”) is required, it remains subject to the Delegation of Signing Authority Corporate Policy # 2.9.3.

The Delegation of Signing Authority (DSA) prescribes the positions authorized to sign any contract on behalf of the Corporation. The principles applicable to DSA are set out in the Corporate Policy # 2.9.3 entitled Delegation of Signing Authority. Before signing a Contract, the individual holding the signing authority has to ensure that DFA approval has been received and that the DFA principles are and will be respected.

The functional financial authority identifies the authority to approve disbursements and payments, as provided within this DFA Policy. This authority ensures appropriate control over the Corporation’s financial commitments and disbursements and the accounting entries in the books of account of the Corporation.

Purpose:

The DFA is based on the principles of Accountability, Responsibility, Honesty, Trust and Integrity. Its purpose is to ensure that adequate controls are in place for the proper authorization of all expenses and to safeguard the assets of the Corporation against loss, through fraud, theft and/or improper use and to produce reliable financial records for internal use and external reporting.

Individuals vested with a financial authority:

An individual vested with a financial authority may issue “Standing Delegation” to one alternate. Standing Delegation refers to a delegation to another employee, which provides full authority to act on behalf of the delegator who has been delegated initial authority, in his/her absence in order to ensure that financial authorities are exercised in a timely manner. An individual who has been granted a “Standing Delegation” will have the same authority as the regular delegate, unless specifically denied in the appointment process.

Delegation:

The financial authority is delegated from the President to senior key positions following direct lines of authority within the Corporation. The functional financial authority may be delegated by the President or the Vice President and CFO to Senior Finance and Administration officers at the Corporate, Network and Regional levels who can re-delegate in direct lines to other Finance and Administration officers in order to meet internal control and operational requirements. Although delegation can only be made to direct reports, by exception, and for operational requirements, Network and Regional Directors of Finance and Administration as well as the Senior Director, Shared Services may receive a financial and/or functional financial authority from the Vice President and CFO and proceed to additional delegation of same. The same exception is applicable for Foreign Offices, for any local officer outside Finance and Administration. In those exceptions, the Network and Regional Directors of Finance and Administration, the Senior Director, Shared Services and local officers of Foreign Offices are directly accountable to the Vice President and CFO for the performance of their obligations under this Policy.

All financial authority delegations and functional financial authority delegations must be done in the form attached as Appendix E, except for the functional financial authority of cheque signing & electronic funds transfers, as detailed in Appendix B.

Authority can only be delegated to employees of the Corporation. An individual who has been vested with a DFA may spend any amount for any type of expense up to his/her approved budgets and pertaining to the functions for which he/she is responsible, and subject to any restrictions identified in this Policy.

President’s Authority:

The President is responsible for establishing the relevant DFA Policy and to approve the Appendices to this Policy. The President is empowered to delegate financial or functional financial authorities, as required, for the effective operation of business, except where an expense is governed by a by-law or a specific resolution of the Board of Directors or affects his/her own level of authorization. In addition, a resolution of the Board of Directors may always supersede this Policy.

Vice President and CFO’s Authority:

The President hereby delegates to the Vice President and CFO full functional financial authority (except the functional financial authority relating to cheque signing and electronic funds transfers for which the latter is already vested with pursuant to the Banking by-law 14).

Responsibilities:

It is the responsibility of each individual vested with a DFA to ensure that the spending is correct and in accordance with the CBC’s Corporate by-laws, Policies, Procedures and Guidelines, resolutions of the Board of Directors as well as legal requirements. A person may not approve an expense for which he/she may gain personal benefit (e.g. one’s own travel), neither can such expense be approved by someone to whom this person has delegated his/her authority.

DFA must follow the Procedures and Guidelines set out in the attached Appendices to this Policy:

  • Appendix A Guidelines for Delegation of Financial Authorities
  • Appendix B Guidelines for functional financial authority
  • Appendix C Monitoring and Reporting – Checks and Controls
  • Appendix D Roles and Responsibilities
  • Appendix E Template for Delegation of financial and functional financial
    authorities

HISTORY

  • This policy was updated September 2008
  • This policy was updated January 2005.
  • This policy was updated June 2004.
  • This was originally Corporate Finance and Administration Policy 103.10 - Simplified Delegation of Authority.

REFERENCES

All Corporate Policies and specifically the Delegation of Signing Authority (DSA) Policy # 2.9.3

PERSON RESPONSIBLE FOR INTERPRETATION AND APPLICATION

All questions pertaining to the interpretation or application of this Policy should be referred to the Director, Policy and Internal Control. The responsibility for interpretation of this policy ultimately resides with the Senior Director, Comptrollership and Operations

DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE:

Corporate Secretariat


APPENDIX A
GUIDELINES FOR DELEGATION OF FINANCIAL AUTHORITIES


I. GENERAL

  1. Cost center, program/WBS element and/or project managers or employees: DFA is usually granted to individuals who are employees, whether permanent, temporary or contractual, if that employee is a cost center, program/WBS element and/or project manager with responsibility for an approved budget. However, DFA may also be granted to employees, who may not have responsibility for a cost center, program/WBS element and/or project in order to support operational requirements and to reduce the administrative workloads for senior VPs / Directors / Managers. This can include a DFA for the authorization of petty cash transactions only and/or the approval of leave and time cards only, which includes all types of leave as well as overtime and penalty payments.
  2. The provisions of this Policy do not eliminate the obligation of the individuals holding a DFA, to inform in a timely manner, supervisors, peers or subordinates who have a vested interest in the spending.
  3. Subject to the approved budgets, which indicate the type of activities for which managers have authority (usually detailed by expense account), individuals who have been granted a DFA under a General Delegation will automatically have the authority to approve the following types of expenses, if applicable:
    1. Approval of expenses pertaining to approved Capital Projects;
    2. Approval of operating expenses:
      • Salary, overtime and related costs, in accordance with Human Resources Policy;
      • Programming;
      • Other operating expenses (travel, training, etc.).

Purchase orders and contracts relating to capital projects and operating expenses must have also received DFA approval before being signed by DSA authorized individuals.

Contracts of a value in excess of $1,000,000.00 must have received approval by the Vice President under the DFA authority to spend and any individual expense in excess of $1,000,000.00 not related to an approved contract must have supplementary approval by the appropriate Vice President.

  1. Utilities/Services/Electronic invoices: By exception, while certain individuals holding a DFA may have the authority to approve expenses for utilities, services and electronic invoices (e.g. hydro, telephone bills, shipping and handling, etc.), such authority will be vested to the Manager, Disbursements National Payment Center (NPC) or delegates and/or Senior Finance and Administration Officers/Regional Comptrollers or their delegates in order to facilitate efficient and timely processing and to take advantage of payment discounts. It is the responsibility of the individual manager to review such costs charged against their cost centers and to inform Finance and Administration if such costs are not valid. When such authority is sub-delegated, the Manager, Disbursements (NPC) may establish dollar limits to ensure that amounts exceeding such limits would require the approval of the manager with DFA.
  2. In exceptional and/or emergency situations, Finance & Administration officers with a DFA may authorize an expense against any budget in any location when Corporation Policies or accepted accounting principles so indicate, when authorized by evidence of a duly signed Contract or upon confirmation that goods and services have been received at CBC. The cost center, program/WBS element and/or project managers, to which the expense has been charged, must be advised.

II. ADDITIONAL DELEGATIONS

  1. Any position with DFA may re-delegate financial authority to subordinates based on operational requirements. However, such re-delegations, will be subject to any restrictions specified in the Policy and in Appendix E.
  2. Delegators are directly responsible for the approval action of delegates. Responsibility may be delegated, but it cannot be abdicated.

III. CONTRACT EMPLOYEES

  1. When DFA is given to contract employees, the following clause should be included in the contract between the employee and the Corporation: “The contractee understands, that as part of his/her responsibilities under this contract, he/she will be required to execute delegated financial authority. The contractee agrees to carry out that authority in accordance with the Corporation’s Policy on delegated financial authority and to respect any limitations or restrictions contained in any delegation granted to him/her.”

IV. METHOD OF APPROVAL

  1. Approval of expenses pursuant to DFA is acceptable in the following formats:
    • Personal signature of the individual holding a DFA followed by his/her title.
    • By electronic means (e-mail, etc.) when authentication of e-mail can be guaranteed and if security and control measures deemed appropriate by the Vice-President and CFO or delegate have been established
    • Subject to established Internal Controls and the CBC’s by-laws and resolutions of the Board of Directors, cheques (including all payroll cheques) and treasury documents may be signed by means of a digitally stored facsimile or signature plate

V. WRITE-OFFS/RETIREMENTS

Capital Assets

  1. This is the authority to write-off capital assets of the Corporation, which have been traded-in, stolen, lost, or are of no further use due to obsolescence, wear and tear, damage or any other cause, as soon as their unusable status is recognized.
  2. When delegation is limited by dollar value, the value refers to net book value.
  3. The officer having custody of an asset and who is responsible for its care and maintenance must initiate/approve the write-off/retirement procedure.

Accounts Receivable

(a) Employees

  1. This is the authority to write-off un-collectible accounts receivable from employees. This includes receivables arising from salary, travel, and other advances. Employees include permanent, contract, temporary and casual employees.
  2. The Vice-President and CFO or his/her delegate, upon recommendation by the appropriate Vice Presidential component, has the authority to write-off of all employee’s account receivables, and must be in accordance with the guidelines and procedures established by Finance and Administration and/or Human Resources.

(b) Trade and Miscellaneous

  1. This is the authority to write-off un-collectible accounts from the sale of airtime and other revenue and recovery transactions.
  2. The Vice-President and CFO or his/her delegate, upon recommendation by the appropriate Vice Presidential component, has the authority to write-off of all accounts from the sale of airtime and other revenue and recovery transactions, and must be in accordance with the guidelines & procedures established by Finance and Administration.

(c) Program costs

  1. Media Vice Presidents or his/her delegate have the authority to write-off program costs.



APPENDIX B
GUIDELINES FOR FUNCTIONAL FINANCIAL AUTHORITY

The functional financial authority ensures appropriate control over the Corporation’s commitments and disbursements. The functional financial authority never replaces the signing authority (DSA Policy # 2.9.3) or the financial authority. It is required in addition to DFA and/or DSA unless provided otherwise.

The functional financial authority can only be exercised by Finance and Administration officers. All delegations of functional financial authority are to be done through the form attached herewith as Appendix E, except for the functional financial authority of cheque signing & electronic funds transfers as detailed below.

Corporate Finance and Administration will be responsible for maintaining the functional financial authority, which will list the financial officers/staff based on the information on Appendix E. For the functional financial authority of cheque signing and electronic funds transfers, a separate list will be maintained and managed by the Director, Cash Management.

When there is a requirement for functional approval by a Finance and Administration officer, there is no requirement for Finance and Administration officers at the Corporate (Head Office) and Network levels to re-approve documents already approved by the local designated officer who has been delegated functional financial authority.

Functional Financial Authority of the Vice President and CFO and delegates

Under the DFA, the Vice President and/or CFO, his/her delegates, will have functional financial authority for the following:

A. Authorization of payments pursuant to approved Contracts and purchase orders

B. Journal entries and electronic interfaces

C. Payroll Deductions / Payments required by Legislation

D. Cheque Signing and electronic funds transfer

E. Obsolete, paragraph removed

F. Write-offs

  1. Capital Assets (including disposal)
  2. Accounts Receivable – Employees
  3. Accounts Receivable – Trade and Miscellaneous
  4. Program costs

A. Authorization of payments pursuant to approved Contracts and purchase orders

Before effecting any payment or disbursement pursuant to a Contract or purchase order, the Finance and Administration officer will ensure that payments or disbursements are in accordance with the terms and conditions of the approved Contracts and/or purchase orders.

B. JOURNAL ENTRIES AND ELECTRONIC INTERFACES

This is the authority to certify the correctness of journal entries and to ensure that there is sufficient supporting documentation and/or explanations for the entries.

This includes the authority to approve corrections. In the re-delegation, lower limits may be established for corrections.

This also includes electronic interfaces and finance certificates.

C. PAYROLL DEDUCTIONS / PAYMENTS REQUIRED BY LEGISLATION

This is the authority to initiate and approve payments to the appropriate organizations with respect to the various legislative / contractual payroll deductions (e.g. income tax, pensions, employment insurance, union dues, etc.).

D. CHEQUE SIGNING AND ELECTRONIC FUNDS TRANSFERS (Reference: Banking by- law 14)

This is the authority to affix facsimiles of the signatures of the President and of the Principal Financial officer (VP and CFO) and/or his/her delegates in accordance with Banking by-law 14 of the Corporation. It also includes the authority to approve electronic funds transfers.

Appendix E will not be used to manage the functional financial authority delegation of cheque signing and electronic funds transfers. Such delegation will be managed through a separate process approved by the VP and CFO.

The delegation of functional financial authority will indicate the functional delegation for cheque signing in the designated locations, and in particular the requirements for:

  • The signatures on payments issued at such designated locations.
  • All Payroll and NPC Payments / Notifications of Deposits.
  • Stop Payment Orders and Releases.
  • Subject to established Internal Controls and the CBC’s by-laws and resolutions of the Board of Directors, cheques (including all payroll cheques) and treasury documents may be signed by means of a digitally stored facsimile or signature plate.
  • The Director, Cash Management has been delegated authority by the VP and CFO to manage and control the functional financial authority for cheque signing and electronic funds transfers

E. OBSELETE, PARAGRAPH REMOVED

F. WRITE-OFFS

  1. Capital Assets (Refer to Assets Policy # 2.3.2)
    The Finance and Administration officers who have been designated will exercise functional financial authority for such write-offs.
  2. Disposal of Capital Assets
    This is the authority of the designated buyers at the Network/Regional location to dispose of assets whose write-off/retirement request has been approved. Donations of surplus capital assets to outside organizations with a net book value in excess of $50,000, must be approved by the respective Vice President, while donations with a net book value in excess of $100,000, require the supplementary approval of the Vice President and Chief Financial Officer
  3. Accounts Receivable (Refer to Credit & Collections Policy # 2.3.7)
    a) Employees
    b) Trade and Miscellaneous

    The Finance and Administration officers who have been designated will exercise functional financial authority for such write-offs.
  4. Program costs
    The Finance and Administration officers who have been designated will exercise functional financial authority for such write-offs.


APPENDIX C
MONITORING AND REPORTING
CHECKS AND CONTROLS

Finance and Administration will play a leading role in providing managers with the tools and reports required to manage their operations. Some of the specific roles and activities in which Finance and Administration will initiate include, but will not be limited to the following:

  • Developing customized reports using Business Warehouse (BW) to assist managers in understanding the information in the reports.
  • Working with managers in the development and completion of the annual Business Plan.
  • Providing expert advise, guidance and analyses to managers regarding the interpretation on financial data.
  • Assisting managers in the monthly forecasting requirements.
  • Working with managers in developing meaningful costing reports.
  • While managers have direct on-line access to SAP and the expenses, which have been charged against the cost centers, programs/WBS elements and/or projects for which they are responsible, Finance and Administration will provide assistance in identifying inappropriate charges against their cost centers, programs/WBS elements and/or projects, and making the required corrections/transfers.
  • In order to assist managers to fulfil their accountability role, Finance and Administration will provide the required assistance, guidance and training to help managers interpret the financial results/reports comparing budgets to actual expenses in order to make more rational and business like decisions.
  • Managers can request Finance and Administration to conduct audits on certain categories of expenses as required.
  • In consultation with Finance and Administration, managers can request special audits by the Internal Audit department to verify adherence to Corporate Policies and controls.
  • Special audits can be conducted by the Policy and Internal Control Unit at Head Office, to ensure adherence to Policy.
  • Providing managers with interpretation and advice on Policy application.
  • Providing senior managers with expert advice on special projects such as the Olympic Games, Partnership agreements, etc.


APPENDIX D
ROLES AND RESPONSIBILITIES
MANAGERS GRANTING DFA

  1. Must sign the DFA form.
  2. Must provide delegates with a list of the cost centers, programs/WBS elements and/or projects for which they have spending authority.
  3. In addition to any expenses, which require supplementary approval, the manager may provide a list of additional restrictions to the delegate; however, the manager must advise the delegate that the additional restrictions are between the delegate and the manager.
  4. All delegations are to be reviewed and revised by the delegators based on operational requirements.

NETWORK AND REGIONAL FINANCE AND ADMINISTRATION

  1. Will provide a copy of the DFA Policy to each DFA delegate.
  2. Will certify the signatures on the DFA form and maintain paper and/or electronic copies of delegations.
  3. Will provide managers who have DFA with a “DFA Stamp,” which will have the delegate’s name printed. This will assist NPC in verifying the signatures.
  4. Will monitor compliance to the DFA Policy.
  5. Will ensure the adherence to the Corporate Chart of Accounts, regardless of the account identified by the person approving the document.

EMPLOYEES WHO HAVE BEEN GRANTED DFA

  1. Must sign the DFA form, read and understand the limitations and restrictions of the delegation.
  2. Must ensure that they authorize expenses only for the cost centers, programs/WBS elements and/or projects for which they have authority or as per the list provided by the manager who delegated the DFA.
  3. In exceptional cases, when approving expenses for another cost center, program/WBS element and/or project, the cost center, program/WBS element and/or project manager should have the agreement of such other cost center, program/WBS element and/or project manager in writing and attach a copy of the approval to the approved invoice.
  4. Must ensure that expenses have been properly categorized and are allocated against the appropriate expense account (e.g. a travel expense must be allocated against the travel expense account).
  5. Must ensure that supplementary approvals are obtained in advance as required in accordance with other Corporate Policies.
  6. Must certify performance and goods/services received.
  7. Must review the expenses to ensure that the charges against his/her cost center, program/WBS element and/or project are valid.
  8. Must conduct regular reviews of actual results to ensure compliance with their respective budgets.
  9. Must use the DFA Stamp provided by Finance and Administration.
  10. Must identify and report to Corporate Payroll on an annual basis at December 31, all payments/re-imbursements to CBC employees or on behalf of CBC employees, which constitute a Taxable Benefit. The Corporate Tax department should be consulted for interpretation and application of the guidelines on taxable benefits (Refer to Taxable Benefits).

NATIONAL PAYMENT CENTER (NPC)

  1. Will verify whether or not the person has DFA (Yes or No). If Yes, the signature will be verified against the scanned signature. If No, the document will be returned for proper authorization, or an electronic authorization will be requested from the manager, or approval from a Senior Finance and Administration officer will be obtained in emergency situations.
  2. Will verify that expenses have been properly categorized, i.e. allocated against the appropriate expense account.
  3. Will ensure that supplementary approval is obtained where required.
  4. Will not verify additional restrictions placed on the delegate by the manager granting DFA.
  5. Will not verify the cost center, program/WBS element and/or project numbers on the documents. This will be the responsibility of the individual who has been granted DFA.
  6. Will provide the Internal Control Unit with information on deviations from Policy as required.

CORPORATE INTERNAL CONTROL UNIT (HEAD OFFICE)

  1. Will conduct periodic audits to ensure compliance with this Policy.
  2. Will provide reports to the Network/Corporate Directors of Finance and Administration for follow-up with the appropriate Vice Presidents and managers concerned, identifying any deviations from Policy.
  3. Will provide direction and advice on action to be taken.
  4. Will follow-up on the action taken to ensure that any items/concerns have been addressed.



APPENDIX E
Delegation of financial and functional financial authorities

Delegate: ________________________ Control No: ____________________________
Cost Center/Group No: ____________________ Location: _____________________________

DD-MM-YY

Effective Date: __________________________
Title: ________________________________ Expired Date: _____________________________

DD-MM-YY

Note: Cost center/Group No. is required for administrative purposes only and will not be subject to audit or verification by NPC.

I hereby delegate to the delegate, financial authority to spend against the cost centers, programs/WBS elements and/or projects for which he/she is responsible and pursuant to the Policies of the Corporation and/or functional financial authority, if applicable. Financial authority covers all areas as defined in Appendix A, while functional financial authority covers the areas as defined in Appendix B and specified here below at D.

  1. GENERAL DELEGATION – LIMIT $1,000,000.00 (INDIVIDUAL
    EXPENSES IN EXCESS OF $1M REQUIRE SUPPLEMENTARY
    APPROVAL BY THE RESPECTIVE VICE PRESIDENT)
Full
_____
N/A
_____
(for VPs)
  1. PETTY CASH ONLY – LIMIT - $500.00 PER TRANSACTION
Yes _____
  1. LEAVE/TIME CARDS ONLY
Yes _____
  1. FUNCTIONAL FINANCIAL DELEGATION FOR FINANCE AND
    ADMINISTRATION OFFICERS ONLY, IN ACCORDANCE
    WITH APPENDIX B.

Full _____

Restricted
_____

Restricted functional financial authority as per Appendix B (A, B, C F1, F2, F3, F4):

Sections: _______________________________________

  1. RE-DELEGATION
Full
____
Restricted
_____

Restrictions: _______________________________________

_________________________________
Standing Alt.
_______________________________
Signature Date
_________________________________
Delegator
_______________________________
Signature Date
_________________________________
Delegator – Functional DFA
_______________________________
Signature Date

_________________________________________________________________

I, the undersigned, have read and fully understood the principles for delegation of financial and/or functional financial authorities and agree to comply with these principles and the principles of all Corporate Policies, including the Delegation of Signing Authority (DSA) Policy # 2.9.3.

__________________________________________________
Delegate
_____________
Signature Date
__________________________________________________
Finance officer
_____________
Signature Date

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