 Ministry
of Health
newzealand.govt.nz
©Copyright
Published:
14/03/2008
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DELEGATED AUTHORITY REGISTER - Supplies & service |
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Protocols are reviewed regularly & updated as required.
Printed copies of this document may not be valid. The electronic
version is the only controlled version in current use within ADHB.
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Functional Responsibility |
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Chief Financial Officer. |
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General Considerations |
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'Term' as used in this section is defined as the rental term excluding
any rights of renewal. |
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Delegations for Hire Purchase and Financing Leases are outlined in part
3 (Capital Equipment) and for premises Leases in part 5 (Facilities) |
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Exercise of Authority |
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The following points should be noted with respect to the exercise of
this authority: |
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All purchases or contracts for supplies and services
of the same type, from the same vendor, for the same
department/function will be aggregated over a 12 month period for
the purposes of determining whether the $250,000 level limit has
been exceeded.
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Invoice Approval |
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In circumstances where Oracle matching has not occurred approval for
payment of service is done on invoice. The invoice should be
approved in accordance with the comparable level of delegated authority
for expenditure authorisation. |
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Uncertain Costs |
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In some instances, particularly when purchasing Repairs and Maintenance
Services, the final cost is not known until the job has been completed.
In such instances it is important to use the staff in Materials
Management, Clinical Engineering, Facilities Management or Information
Services to manage the process to avoid misunderstandings,
over-servicing or overcharging. |
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Instructions |
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Clear instructions should be developed and agreed to by both parties
prior to the commencement of any contract and incorporated into a
contract for Service prepared by ADHB Legal and Governance. The
standard ADHB Contract must be used for all engagements and where
modifications are required these must be pre-approved by Legal and
Governance. |
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Subsequent changes to the terms and conditions of the contract should be
by written variations of the contract for Service and filed with the
Contract. Variations affecting an increase in the contract price
are to be reviewed as to the application of Delegated Authorities to the
new total price of the contract. |
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Milestones Not Achievable |
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Consultant's performance should be continuously monitored. Any
shortcomings in performance must be brought to Project Sponsor's
immediate attention. If key milestones will not be achieved and
there is any resulting increase to the cost of the consultancy the
appropriate level of Delegated Authority should be obtained before any
extra costs are incurred. |
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No. |
Description |
Level 1 |
CFO |
Level 2 |
Level 3 |
Level 4 |
Other Comments |
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Purchase
Supplies and Services using Petty Cash |
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2.1 |
Purchases using Petty Cash |
FA |
FA |
<$500 |
<$500 |
<$500 |
Receipt/tax invoice required |
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Contract for supplies and
services |
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2.2 |
Contract for supplies and services,
authorise the requisition of supplies and
services. |
<$3,000,000 |
<$1,000,000 |
<$200,000 |
<$100,000 |
<$5,000 |
Total value over initial term |
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To
Authorise the requisition of Supplies & Services |
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2.3(a) |
Authorise the requisition of supplies and services. Inventory
only. |
<$3,000,000 |
<$1,000,000 |
Materials Mgr
<$200,000 |
Procurement & Inventory Mgr
<$100,000 |
Inventory Administrator
<$50,000 |
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2.3(b) |
Authorise the requisition of supplies and services. Non-inventory. |
<$3,000,000 |
<$1,000,000 |
<$200,000 |
<$100,000 |
<$5,000 |
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To
Authorise a Purchase Order for Supplies & Services |
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2.4 |
Authorise a purchase order for supplies and services |
<$3,000,000 |
<$1,000,000 |
Materials Mgr
<$200,000 |
Procurement Mgr
<$100,000 |
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Purchasing Co-ordinator <$50,000. Exercised against a duly
authorised requisition |
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Use of Consultants |
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2.5 |
Authorise expenditure for consultant/s for
defined tasks |
<$250,000pa |
<$100,000pa |
<$10,000pa |
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<3 years duration |
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Rental of Equipment other than hire purchase, financing leases or
premises leases |
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2.6 |
Enter into rental agreements |
<$500,000 |
<$150,000 |
<$75,000 |
<$5,000 |
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Refer to DAP manual for specific lease arrangements covered |
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Junior RMO
and School of Medicine (SOM) Invoices |
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2.7 |
Authorise payment of Junior RMO and SMO invoices |
FA |
FA |
<$250,000 |
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Patient Travel |
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2.8 |
Approve travel costs for patients and escorts |
FA |
FA |
<$5,000 |
<$1,000 |
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Renewal of Contracts |
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2.9 |
Authorise renewal of contracts previously approved by appropriate
delegation |
<$750,000 |
<$500,000 |
Materials Mgr
<$100,000 |
Procurement Mgr
<$25,000 |
Procurement Specialist
<$10,000 |
Renewed contract value limited to < 120% of original contract.
Providing there are no substantive changes, and any price change is in
accordance with the contract, the RoR may be exercised so long as the
increase over the extended life is within the delegations listed to the
left. |
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