Authorised Signatory Limits

ROYAL NATIONAL ORTHOPAEDIC HOSPITAL

AUTHORISED SIGNATORY LIMITS

AS AT : 1 st April 2006

[Reviewed February 2008]

AUTHORISED SIGNATORY LIMITS

£1m +

SHA/DoH approval required

£500k+

Requires Trust Board approval - Department of Health Guidance applies (refer to Finance Director)

£250k+

CHIEF EXECUTIVE & NON-EXECUTIVE DIRECTOR FOLLOWING TRUST BOARD APPROVAL

£150,000 - £249,999

CHIEF EXECUTIVE & NON-EXECUTIVE DIRECTOR (Information item to Trust Board)

£75,000 – £149,999

CHIEF EXECUTIVE OR FINANCE DIRECTOR & NON EXECUTIVE DIRECTOR

£25,000 - £74,999

2 DIRECTORS (INCLUDING FINANCE DIRECTOR)

£0 - £24,999

EXECUTIVE DIRECTOR - £24,999

GENERAL MANAGERS - £24,999

SENIOR MANAGERS - £15,000

MODERN MATRONS - £10,000

WARD/DEPT. MANAGERS - £5,000 1 SENIOR NURSES/AHP’S/PROF & TECH - £2,000

CONSULTANTS - £1,500

CLERICAL STAFF - £1,500

LOGISTICS ONLINE AUTHORISED LIMITS.

PURCHASING MANAGER/STAFF – UNLIMITED

WARD INVENTORY CLERK - £6,000

RADIOGRAPHERS - £2,000

MANAGER’S - £1,000

OTHER STAFF - £50-£500

1. The notification to or approval of Trust Board is required when new commitments are made rather than continuation of existing commitments within renewal timescales previously agreed by the Board. For example a 5 year MRI lease for a total commitment >£250k would require Trust Board approval to renew/replace at the end of 5 years not every year. In addition Trust Board agreement of the capital programme is deemed to cover major commitments of capital expenditure.

2. The amounts listed refer to the commitment being made at the point of order for directly related goods or services, including VAT, irrespective of the actual numbers of orders raised. Specific approval needs to be obtained for the contractual commitment to be made even if approval in principle already exists in the form of agreement to a budget or element of the Trust’s financial plan. The relevant commitment of Trust Board in this regard should be documented in Board minutes.

Some examples are illustrated below.

Example 1

Commitments across financial periods: An order for a service lasting 3 years at £1k per year is a commitment of £3k (normally commitments are made on an annual basis except for major contract tenders).

2 Example 2

Circumventing limits through multiple requisitions is not permissible. 2 orders of £1k from the same person at the same time for the same goods is a commitment of £2k

3. The job title descriptions are indicative. Below Director level, all staff are classified into their actual relevant category or amount on the approval of their line manager. This happens when staff are set up or amended on the Trust’s authorised signatory listing through written application to the finance department using the appropriate form signed by a line manager who is already set up as an authorised signatory.

4. At least one of the signatories must be from the relevant budget holder, even if this requires subsequent authorisation from a higher level because the commitment is above their authorised limit.

5. The above limits apply to both capital and revenue expenditure but please note that the arrangements for agreeing to expenditure on the capital programme are separate to the annual revenue budget setting process.