ROYAL NATIONAL ORTHOPAEDIC HOSPITAL
AUTHORISED SIGNATORY LIMITS
AS AT : 1st 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
Notes
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.
3