Setting Delegated Authorities

A sample delegated authority structure is shown below:

Although the capital expenditure may now be approved, the final agreement to the work proceeding needs to come from the corporate or board level, through the process of budget/rebudget setting.

The corporate budget process may choose an option other than the optimal life cycle costs solution, to better match the organization's current viability and budget constraints.

This budget process can also be used to determine the initial validation process for projects that are entered into the asset management plan or long term financial plans.

Projects should be reviewed as they move through the various key asset management planning phases, namely:

• Over 25 years.
• 15 to 25 years.
• 10 to 15 years.
• 5 to 10 years.
• 1 to 5 years.
• Final reviews in the year the work is actually undertaken (not always required).

Some work will still be generated within a financial year. Unexpected failures, new demands for growth or new services, (i.e. from a large commercial development), can all arise at very short notice.

The organization should still follow an approved process for the validation and decision to proceed with these works, no matter what the urgency. Refer also to "Fast Tracked Projects".