DELEGATIONS AT RMIT – FRAMEWORK AND FREQUENTLY ASKED QUESTIONS

FRAMEWORK

The RMIT Act enables the Council to delegate responsibility for day-to-dayoperations to the Vice-Chancellor, who in turn may (with Council approval) sub-delegate some responsibilities to her senior managers. Delegations at RMIT are governed by the Delegations Policy.

Under the Delegations Policy, Council is required to approve the financial,legal and staffing delegation schedules annually following endorsement from the Audit and Risk Management Committee. The delegation schedules( out a cascading set of approved delegations which prescribe limits of authority for financial, legal and staffing decisions.

The Delegations Policy and schedules (see below)were amendedand approved byCouncil in December 2011 to:

  1. Reflect updated organisational structure and requirements
  2. Comply with new requirements under the RMIT Act around the form of delegations.

a.Financial and Legal Delegations:

  • Financial delegations refer to the authority of an individual to commit the University to planned expenditure or revenue generating activity. The Vice-Chancellor is the only person, other than Council, who has the authorityto approve financial operating and capital expenditure outside of the budget. Vice-Chancellor’s operating and capital expenditure delegation (unbudgeted) has increased from $2 million to $5 million
  • TheVice-President Resources operating and capital expenditure delegation (budgeted) increased from $500,000 to $2.5 million
  • DVC/PVC level delegations (budgeted) increased from $500,000/ $250,000 respectively to $1 million
  • Executive Director Financial Services delegation (budgeted) increased from $100,000/$250,000 to $500,000
  • New executive level staff positions were provided appropriate delegations (budgeted) for their area of responsibility, notably inclusion of Executive Director (R&I) delegations regarding research memoranda of understanding and research agreements
  • Executive Directors Property Services and ITS delegations (budgeted) increase from $100,000 to $250,000.
  • Legal delegations relate to the authority to enter into contracts on behalf of the University. Changes are predominantly by way of addition to the notes section at the bottom of the document and clarify that legal delegations are subject to the financial limits contained in the financial delegations.
  1. Staffing Delegations:
  • Create new positions: Council approval is required to approve an increase in budgeted senior executive positions, but no longer required to change details to a senior executive position. This is consistent with the RMIT Act and with the current terms of reference of the Remuneration Committee. Only the Vice-Chancellor may approve increases to budget Full Time Equivalent (FTE) positions.
  • Remuneration: Council approval is required for senior executive salaries if outside the range approved by the Remuneration Committee.

Clarity with respect to delegations reduces the risk of unauthorised action by officers of the University and provides certainly around decision making within RMIT. To this end, the following Frequently Asked Questions have been compiled to address common queries around delegations and their implementation:-

FREQUENTLY ASKED QUESTIONS

FINANCIAL AND LEGAL DELEGATIONS

a.Legal Delegations

  1. What is an agreement?

Answer:Agreements include the exchange of letters, a heads of agreement and other documents that create a legally binding obligation. This includes tender submissions.

  1. If the Financial and Legal Delegations schedule permits a staff member holding a particular title to sign a particular type of agreement, can that person sign the agreement if the consideration or value of the agreement exceeds that person’s authorised financial delegation?

Answer:No, the agreement must be signed by a more senior staff member having authority to sign a similar type of agreement and who also has appropriate financial delegation.

  1. Who can sign international agreements?

Answer: All international teaching and learning delivery agreements must be signed by Vice-Chancellor, on the recommendation of both the DVC(I&D) and DVCA. The DVC (I&D)retains the delegated authority to sign a range of other agreements noted in the delegation scheduleincluding memoranda of understanding, letters of intent, student mobility agreements, agency agreements, and student exchange agreements up to the relevant financial delegation.

  1. Who can sign research agreements?

Answer: Research agreements within the financial delegation of the Executive Director (R&I) may be signed by that position. All other R & I agreements must be signed by DVC(R&I) or a higher financial delegate.

  1. Can a staff member sign any agreement which falls within that staff member’s financial delegation?

Answer: No, for two reasons:

  1. Notwithstanding that a transaction may fall within an officer's financial delegation, that officer cannot sign a legal agreement relating to the transaction unless the officer is specifically authorised to sign an agreement of that type under theschedule.
  2. The staff member’s supervisor can choose to direct the staff member not to sign agreements,even if the schedule suggests that someone at his or her level can sign. The delegation creates an authority but not a right.
  1. Can a staff member sign an agreement which ostensibly covers a matter included in that staff member’s delegation but also includes subject matter within a higher delegation?

Answer: No. If a legal agreement ostensibly covering a matter included in an officer's delegation also includes subject matter within a higher delegation, then the agreement must be signed by an officer with the higher delegation.

  1. Can a person sign a legal agreement relating to a matter involving another cost centre?

Answer: A transaction or legal agreement requiring authorisation/signing must be authorised/signed by an officer within the cost centre responsible for the transaction/legal agreement unless no delegation is available for the cost centre under this Schedule in respect of that transaction/legal agreement. In that case the officer with the required delegation must sign only on the recommendation of someone from the initiating area.

  1. Should the University’s Contract Management Policy be complied with prior to the signing of a legal agreement?

Answer: Yes. Prior to signing a legal agreement, an officer should be satisfied that the Contract Management Policy has been complied with.

  1. Financial Delegations

The financial and legal delegations matrix lists the maximum delegations approved by Council. Financial Services Group maintains an operational listing of individuals holding positions authorised by their higher delegate to enter agreements, and commit monetary amounts.

  1. How does a staff member receive a financial delegation?

Answer:The delegations matrix establishes the maximum value that a person may be authorised to commit, but does not automatically apply to staff holding the stated position. For example, the delegations may specify a maximum delegation of $100,000 in relation to a position. However, unless a staff member's manager has nominated that staff member for exercise of the delegation, and specified the amount authorised (up to a maximum of $100,000, but it could be less), the position is not authorised to exercise the delegation at all. To authorise a staff member to exercise a delegation, the manager must complete an approved financial delegation form ( and return it to Business Advisory. The operational financial delegation listing maintenance process is described at (. Financial Services maintains a list of all current authorised delegations. When delegations change, or a staff member leaves RMIT, Financial Services should be notified so the listing can be amended accordingly.

  1. Who can approve the financial delegation form?

Answer:Approval can be given from any staff member holding a higher financial delegation.

  1. Who is an Acting Financial Delegate?

Answer:A staff member temporarily covering a role with a financial delegation.

  1. How should an Acting Financial Delegation be advised?

Answer: It depends. The exercise of a higher financial delegation whilst in an acting position must be specifically approved by the holder of the substantive position. If the acting delegate already appears on the FSG signature database, the substantive position holder must authorise the acting person via email to the Deputy Director Business Advisory. If the acting staff member is not on the listing, the substantive holder must activate that process by completing the approval form referred to in the previous Q/A and forwarding it to FSG. In any event, FSG should receive email notification of any period during which an acting staff member is to hold authority in excess of their substantive delegation.

  1. What is the frequency of the signature listing updates?

Answer:The operational listing is updated weekly and provided to the procurement, accounts payable and travel teams. Monthly a 'no signature' version is updated on the web and the entire listing is subject to a half yearly review.

  1. The term ‘unbudgeted’ is used in the financial delegations – what does it refer to?

Answer: 'Unbudgeted’ only applies to a particularfinancial delegation granted to the Vice-Chancellor and is based upon line items detailed within the Council approved annual budget. If the underlying transaction was not detailed in the approved budget papers and exceeds the Vice-Chancellor’s delegation then the transaction must be submitted to Council for approval.

Apart from the Vice-Chancellor, financial delegations only apply to budgeted revenue and expenditure

  1. If a financial commitment involves three tranches of expenditure, all within my delegation, but the total cost exceeds my delegated authority can I go ahead and sign off on each of the three tranches?

Answer:No. The total cost of expenditure on a particular item, set of related items or activities must be calculated in working out who has the delegated authority to expend the money.

STAFFING DELEGATIONS

The Staffing Delegations were amended to reflect the changes to titles currently in use within the University. The changes also include separation out into key headings:

  • Attraction
  • Performance
  • Employment conditions
  • Reward and Recognition
  • Health and Wellbeing
  • Fairness and staff conduct.

Attraction has been divided into steps, ie creation, classification, recruitment and appointment to positions.

1.Who needs to sign off on Executive appointments?

Answer: The Vice Chancellor needs to sign off on executive appointments and the associated remuneration. Council approves the appointment and reappointment of senior executives who report to the Vice-Chancellor.

2.Who can sign off on titles?

Answer:The use of titles is covered in the Titles Guidelines.Any use of titles outside these guidelines must be signed off by the Vice-Chancellor.

3.Who has to sign off on Non-confirmation of employment?

Answer:For executives this needs to go to the Vice-Chancellor and for professional, TAFE and academic staff the relevant member of the senior executive.

4.Who can sign off on professional development leave?

Answer:Leave up to six months can be approved by an executive .If it is greater than that it requires Vice-Chancellor approval.

5.Who can approve a double increment?

Answer:A member of the senior executive must approve double increment moves.

Further questions around delegations should be referred to the University Secretary and Vice-President or Chief Operating Officer and VicePresident Resources.

Delegations at RMIT FAQ’sPage 1 of 5

Tuesday, 24 April 2012