Define your company’s limits of authority for specified positions and outline the approval requirements for transactions, obligations and compliance using our Delegation of Authority Policy. By leveraging this tool, companies can streamline decision making, mitigate risks and enhance compliance by ensuring that only authorized personnel can commit resources or approve transactions. This policy also supports accountability and transparency, offering guidance on how to adapt authority structures as organizational needs evolve, making it an essential resource for maintaining operational integrity and efficiency.

This policy includes four samples, providing targeted guidance on different aspects of authority delegation. Sample 1 outlines the formal signature requirements and dollar limits for daily transactions, promoting consistency across the organization. Sample 2 specifies the limits of authority assigned to various positions, detailing the types of obligations that can be approved and emphasizing compliance responsibilities. Sample 3 focuses on the authorization requirements for committing company funds, including procedures for related party transactions and adherence to legal regulations. Finally, Sample 4 addresses the approval process for transactions based on delegated authority, including the use of an authority matrix and provisions for temporary delegations.

Sample procedures include:

• Individuals authorized for approval should understand that the authority carries responsibility and that they are accountable for their actions.
• All capital expenditures should be approved and made in compliance with the expenditure policy.
• All employees must be aware of and adhere to their approval authorization limits.
• All transactions shall be approved by an authorized person in accordance with the policy unless otherwise stated and must be expressly granted in writing.