Description: Parameters regarding the approval of expenditures by unit heads
Date First Issued: 12 Dec 2007
Version Date: 12 Dec 2007
Related Policies: MAN 106/2007 (new version)
- Purpose: This policy sets monetary limitations on approval of expenditures and establishes a uniform method for authorizing approval of these expenditures for reasons of efficiency and expediency.
- Coverage: All UA&P Employees
- Unit heads are responsible for approval signatures on all expenditure forms for all charges to their department. Expenditure amounts must be within the peso limits set for each form. Those authorized to approve are the Dean, Asst. Dean, School/College Secretary, Executive Director, Program Director, Dept. Chair, Unit Head and ManCom or OpCom in the case of Unit Heads.
- Approval Limitations
- When approving expenditure forms and when authorizing employees to sign expenditure forms, Heads must be guided by the limit of their approved department budgets.
- Purchase requisitions for all items, regardless of the cost, must be authorized in accordance with the policy regarding purchases.
- Authorized employees may approve expenditures only for subordinate employees. Their own expenditures must be approved by the next senior authorized employee.
- Disbursements not exceeding PhP50,000.00 may be approved at the Unit/Opcom level1 and need not be consulted with ManCom. These include the following:
- A budgeted expense, the nature of which has been determined but specifics of which could not have been foreseen and, therefore, were not indicated in the budget (e.g., expenses for out-of-town seminars for faculty members);
- Necessary unbudgeted expenses which could not have been foreseen (e.g., emergency repairs); and
- Re-alignment of expenses appropriately justified and matched against the unspent expense budget of similar nature or within the same expense category (e.g., Office Supplies against unspent Photocopying expenses; Representation against unspent Travel; Building Supplies against unspent Electrical Supplies; Outside Printing against unspent Photocopying; etc…). Expenses not subject to re-alignment include:
- The “excess” or unspent funds from the approved manpower budget. These should not be re-aligned against other nonmanpower related expenses because the bases for manpower justification are significantly different;
- The budget for depreciation which is normally earmarked for asset replacement; and
- As a rule, approved but unspent capex funds can only be re-aligned with unbudgeted capex items, not operating expenses.
- This authority applies provided that the applicable non-financial condition are satisfied, i.e. consultation with the ManCom on items listed are requiring such consultations and policies and standard operating procedures governing specific expenses as employee hiring and faculty/staff development activities (c/o HRM), capital expenditures (c/o FMU and/or MIS), publications and marketing materials (c/o CCO).
- The disbursement authority is a sub-limit of Php50,000 per approval subject to the cap of its overall expense budget.
- In exercising this authority, the Unit/OpCom should each time send a memo to AFU stating the nature of the unbudgeted expense, the amount and reason, and, if for realignment, the expense item(s) from which the unbudgeted expense will be
- The exercise of the above authority by the Unit/OpCom shall be subject to the condition that the percentage of margin over revenue indicated in the ManComapproved budget of the operating unit under its supervision is maintained after the unbudgeted expenditure. This means that if an operating unit expects to under perform its revenue target and/or to incur a bigger deficit as a result of the unbudgeted expense, this authority would not apply.
- We know that the Units/OpComs are fully cognizant of the corresponding responsibility that comes with this authority. Thus, we look forward to its judicious and prudent use.
- In case of any doubt as to the application of this authority, the ManCom should be consulted.
1 For units other than OpComs: to have collegial approval, the following persons should approve the request: (a) Unit Head, (b) Director for Finance, and (c) ManCom member in charge of the unit. In case (a) and (c) are identical, another member of the Administrative Council, who is also a ManCom member, or his/her substitute in the ManCom can be asked to make a collegial decision.