Delegated Financial Authority

Delegations of financial authority involve a hierarchy of financial thresholds that empower officers at different grades within an organisation to commit expenditure and incur liabilities or debts on behalf of the organisation. In some organisations expenditure authority - the ability to spend from an approved budget - is separated from commitment authority - the ability to commit the organisation to enter into contracts. This disempowers non-procurement staff from entering into contracts and circumventing the procurement process. See also Governance.