HERTFORDSHIRE COMMUNITY NHS TRUST

SCHEME OF DELEGATION AND RESERVATION

OPERATIONAL ARRANGEMENTS

v3 March 2012

Operational decisions, authorities and duties delegated to Officers of HCT

Level 0 = Board / Trustees

Level 1 = Chief Executive

Level 2 = Director of Finance (DOF)

Level 2a = Other Executive Directors

Level 2b = AD Finance

Level 3 = Assistant Directors

Level 4 = All Budget holders and/or budget managers as delegated in writing by budget holders (subject to no budget manager to which this authority is delegated being below AfC Band 7)

Level 5 = Senior Managers / Administrators (non budget holders)

Level 6 = Head of Procurement, Hertfordshire Supply Management Confederation

NB For the Director of Finance, delegated limits are not the same as limits under Agresso rules. Where an Agresso payment is required in excess of the DoF’s delegated limits, the DoF will discuss with the CEO as Accountable Officer and the CEO may delegate authorisation accordingly. The rationale for this is that the Agresso system requires at least one Trust Officer to have unlimited authorisation. The Executive Committee has delegated authority to vary the limit for individual services leads / ADs to authorise contractual payments.

Ref / OPERATIONAL DELEGATION
Authorities/Duties Delegated / Delegated to
(level) / Approval Range / Notes/Reference to further guidance / Comments /
1 / Payroll:
staff appointments,
authorisation of contracts and
terminations / 1 & 2/2a
3
4 / Level 3 and below
Level 4 and below
Level 5 and below / Further guidance set out in Standing Financial Instructions
2 / Time sheets, special duty, other
additional payments, travel / 1 - 4 / As above
3 / Authority to handle patients
Monies / 1 - 2
2a - 4
5 / Over £1,000
Up to £1,000
Up to £50 / See Patients’ Monies Procedures available from Finance Department
4 / Petty Cash reimbursement
General (authorisation of single payment) / 2b
2a - 4 / Over £50
Up to£50 / See Petty Cash Procedure available from Finance Department / £50 is normal maximum single reimbursement from petty cash
5 / Charitable Funds / 0
1 / 2
3
4 / Over £25,000
Up to £25,000
Up to £5,000
Up to £1,000
6 / Requisitions and payments / 0
1
2
2a
3
4 / Over £5,000,000
Up to £5,000,000
Up to £1,000,000
Up to £100,000
Up to £25,000
Up to £5,000
9 / Consultancy (procurement of) / 0
1
2
2a / Over £250,000
Up to £250,000
Up to £100,000
Up to £50,000 / The financial limit is per contract.
See also Policy on “Procurement of Management Consultants”. / Executive Team to authorise and monitor all consultancy procurement
10 / Contract signing and variations to contract
(value = over contract life, not annual cost) / 1
2
2a
3 / Unlimited
Up to £1,000,000
Up to £100,000
Up to £25,000 / Decisions to place a contract for over £250,000 must be approved by the Board. The CE is then delegated authority to sign.
11 / Removal expenses / 1
2 / 2a / Up to £40,000
Up to £15,000 / See policy from HR Department
12 / Losses and special payments / 0
1
2
2a
3 / Over £250,000
Up to £250,000
Up to £5,000
Up to £1,000
Up to £100 / All losses and special payments to be reported to each meeting of the Audit Committee.
In accordance with the NHS Manual for Accounts, any novel, contentious or repercussive cases should be referred to the Department of Health for prior approval.
13 / Capital – approval of schemes / 0
(Delegated to the Finance Business & Investment Committee)
1 / 2
(on ratification by the Executive Team)
3 and above
(on approval by the Capital Investment Group) / Over £500,000
Up to £500,000
Up to £10,000 / The Capital Investment Group will prioritise all capital bids and make recommendations to the Executive Team. Specifically, the CIG will
(i) ratify all capital expenditure up to the value of £10k prior to expenditure by officers with delegated powers of capital expenditure .
(ii) recommend a decision on capital expenditure to the Authorised Officers (CEO or DoF) in the case of expenditure between £10k and £500k (and the Authorised Officers shall also obtain ratification from the Executive Team)
(iii) recommend a decision on capital expenditure to the Authorised Officers in the case of expenditure above £500k (and the authorised Officers shall obtain ratification from the Executive Team and the Finance, Business and Investment Committee acting on behalf of the Board. Decisions on expenditure over £500k as made by the Executive Team and Finance, Business and Investment Committee shall be reported to the Board meeting in public session. / The Capital Plan is approved by the Board and progress reported regularly
14 / Establishment control / 1 / 2 / 2a / Any Changes
15 / Virements between budgets –
revenue only / 1 / 2
2a
3 / Up to £500,000
Up to £100,000
Up to £25,000 / See policy from Finance Department
17 / Litigation – agreement on
settlement / 1
2 / 2a / Company Secretary
/ Over £40,000
Up to £40,000 / Briefing of solicitors must be approved at level 1 or 2a or as delegated to nominated officers, but can be carried out by a Level 3 manager.
Audit Committee Chair to be made aware of any claims between £100,000 and £250,000.
All claims will be dealt with in accordance with NHSLA Risk Pooling Scheme Membership Rules
See Legality and Claims Management Policy
18 / Signature of documents used in legal proceedings / 1,2, 2a and
Company Secretary
19 / Disciplinary and dismissal:
Dismissal

Suspension

/ 0
1
2 / 2a
1-3 / Level 1 officers
Level 2 officers
All other staff
Level 3 managers
can only suspend
with the permission
of a level 2 officer / See detailed disciplinary policy
20 / Lease cars / 1
2 / 2a / For level 2 staff
For all other staff
21 / Complaints / 1 / Final sign off of complaint response
letter / According to agreed complaints policy
22 / Banking arrangements / 1 & 2 / Setting up first permission new accounts can only be actioned by Chief Executive and Finance Director
Banking arrangements subject to Board approval. See Treasury Management Policy
23 / Data protection (DPA) & Freedom of Information (FOI) / 1 - 3 / As delegated by CE but all managers
must ensure the DPA and FOIA and valid requests for information are complied with / Managers and employees have joint responsibilities under the Data Protection Act and the Freedom of Information Act. See relevant policies and procedures.
24 / Information systems and data security / transfer / 1 - 3 / Security Officer in place. Managers must monitor and ensure that the relevant policies & procedures
are complied with / See relevant policies.
Shared responsibility between
managers and employees
25 / Sealing of
Documents
(see also 18 above)
Security of Seal / 1 / 2 & 2a
Company Secretary / See Standing Financial Instructions. A Register of use of the seal is to be maintained and reported annually to the Audit Committee.
26 / Tender Opening:
Electronic
Paper / 6
0
1 / 2
2a / 3 / All tenders
Over £5,000,000
Up to £5,000,000
Up to £100,000 / HSMC are contracted to manage the tendering process with HCT staff.
Tenders must be opened by two senior managers (Assistant Director or above).
A member of the Board must be one of the two senior managers if the tenders are estimated to be over £5,000,000
Any tender over £100,000 must be opened by the CE or DoF plus one other senior manager. / Electronic tendering should be the norm
Tenders should not be opened by senior managers (Assistant Directors) from the originating department. This does not include Finance.
End of Section

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