Chief Executive. Board. Over 500,000. Up to 500,000

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1 10. SUMMARY OF FINANCIAL DELEGATED LIMITS s Business Cases The introduction or discontinuance of any significant activity or operation not already approved within the Business Plan. This includes outsourcing projects. Financial limits are measured in the terms of the gross annual income or expenditure in respect of the new/changed or discontinued activity. The approval provided is for the change of activity only and hence the estimated recurring impact (cost and revenue) that the change in activity will drive versus the original plan. The business case should also identify any non recurring expenditure required to facilitate the change in activity or any resulting non recurring costs (eg redundancy). Approval of the business cases provides approval of such costs in principle. However, specific costs (eg capital, consultants etc) need to be approved in line with these SFIs before any formal commitment is entered into. Change projects Intended to cover complex and material projects, not already in the business plan, that have the objective of driving improvements to processes, systems, ways of working, and which require significant facilitating expenditure (consultants, programme management, project resource, IT development). The financial limit relates to the total implementation cost, including external facilitation and any subsequent redundancies. Approval of the business case indicates recognition of the impact of the project on the organisation and enables the project to proceed in principle. However, specific elements (eg IT development) need to be approved in line with these SFIs before any formal commitment is entered into.

2 s Business cases in respect of IT projects (capital) of IT up to IT projects require the approval of the of Information Technology, whether a stand alone project or part of a broader change initiative. The limit applies to capital expenditure only. The limits apply whether or not the expenditure is classified as capital or revenue. Hence any substantive IT project with a new cash funding need in excess of 500k requires approval. Approval limits relate to the total external cost of implementation, but shall include the costs of any employees specifically hired to facilitate the implementation. The project shall be discussed with to determine the appropriate accounting treatment. Consultants of IT up to Hiring of consultants is subject to tendering and procurement regulations. This category includes programme/project management. The limit for the of IT reflects his role in co-ordinating change management and enables him to source programme managers for projects on a case by base basis or for a programme of projects. This category also includes any contractor employed in an advisory or project facilitation role (ie not fulfilling a role within the funded establishment on an interim basis). Software development is specifically excluded on the grounds that this is a normal provision of services supplied within the context of an IT project that has been approved according to these SFIs.

3 s Capital Projects Approval of capital projects,000 Sale of assets to be copied on all projects. Approval needed on all capital projects >. capital projects require approval of the relevant before sending onward for further approval. Until otherwise amended the BPL Managing may approve projects relating to BPL up to. Projects in excess of 5m additionally require approval of the DH Capital Investment Branch. spends on projects > 10% require the project to be re-approved at the same authority level, or higher if the total spend on the project is then lifted into the next authority band. Revenue projects ie non recurring projects not qualifying as capital (eg fitting out, refurbishments, maintenance) Intended to cover other large projects, with non recurring costs, that are similar to capital in nature. The only differentiator is that the accounting treatment of the project is as revenue rather than capital. Authority is required irrespective of whether the project is included in plan or not. Higher limits than for capital are appropriate for ed projects given the scrutiny that is applied to annual revenue s at cost centre level.

4 s Contracts for goods and services Contract award,000,000 Head of Procurement Financial limits exclude VAT and are measured in terms of the anticipated value over the contract period (normally 3 years). Compliance with tendering procedures described within the SFIs is required at all times, for any type of goods and services contract. Waivers to tendering procedures must be authorised as described in the SFIs. Lease agreements,000,000 lease agreements (including property, fleet and equipment leases) must be approved by the. Excludes employee car leases which are covered by the HR car leasing policy and approved via HR/payroll defined procedures.

5 Treasury s Judgements, fines arising from legal proceedings Clinical negligence, product liability, personal injury claims In case of claims where legal advice has been taken and insurance cover not available or applicable. Approval of donations to outside bodies (per case per annum). Approval of sponsorship agreements per annum. Excludes funding to external bodies that are in support of business activity and approved in the (eg marketing activities within the Communications ). Donor claims Treasury pre- approval required for all claims over Cash losses/book keeping losses/exchange rate fluctuations/overpayment of pay and allowances Losses of stores Deliberate (eg fraud) or other (eg out of date) Fruitless Payments Constructive Losses Goods services ordered and paid for but later proved to be not needed. Donor Services HR Pay/allows

6 Claims waved or abandoned ie a valid claim that is not perused or where settlement is agreed at a reduced amount Treasury pre-approval is required. Extra contractual payments Treasury s BPL MD Non contractual payments but where there is an obligation that may be held up in court. Typically arising from action or inaction with regard to a contract. Includes payments where a settlement is reached without arbitration. Treasury pre approval required for all payments >. BPL MD can approve up to. Compensation payments (non donor related) Personal injury, traffic accidents, damage to property. Treasury pre-approval needed for all claims BPL MD can approve up to. Ex-gratia payments Eg payments to meet hardship, out of court settlements losses and special payments are reported to, and reviewed by, the Governance and Audit Committee.

7 Treasury s Severance Payments Redundancies including capitalised costs Compensation in lieu of notice Ex gratia payments (in excess of, or outside of, statutory or contractual entitlements) Financial incentive/retention payments 20,000 20,000 HR HR payments beyond normal contractual requirements require Treasury pre-approval. such payments made to executive members of the and other Group s reporting to the shall be approved by the Remuneration and Audit Committee. Early retirement costs within regulations HR