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Cabinet Office

 

Cabinet Office Circulars

Schedule to CO (99) 7


LIMITS ON DELEGATED FINANCIAL AUTHORITIES

 

Departmental Chief Executives

Authority not exceeding
(GST inclusive if applicable)

Responsible Ministers

Authority not exceeding
(GST inclusive if applicable)

Departmental Operating Expenses

    

Publicity expenses2

$100,000

No limit

Expenses for compensation or damages in settlement of claims3

$100,000

$500,000

Ex gratia expenses4

$20,000

$50,000

Purchase Development or Lease5 of Fixed Assets6

    

Initial Approval

$7 million

$15 million

Subsequent Variations to Approval Given under Own Authority

Difference between total value of all prior approvals and $7 million

Difference between total value of all prior approvals and $15 million

Subsequent Variations to Approval Given under the Authority of the Responsible Minister

Difference between total value of all prior variations and 10% of initial approval given by the Responsible Minister, provided that the total project cost does not exceed $15 million.

N/A

Subsequent Variations to Approval Given under the Authority of Cabinet

None

Difference between total value of all prior variations and 10% of initial approval given by Cabinet, provided that the total variations do not exceed $7 million.

 

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2 Advertising expenses must comply with the provisions set out in Appendix 2 of the Cabinet Office Manual.
3 Expenses for compensation or damages for settlement of claims should be endorsed either by the Crown Law Office or a court judgement. Claims under $50,000 need not be referred to the Crown Law Office if a departmental solicitor certifies that such claims are in order.
4 Ex gratia expenses are those made in respect of claims that are not actionable at law, but for which there exists a moral obligation and payment should be made.
5 Leases covered by the delegation limits are operating leases of more than one year's duration. Note that departments cannot enter into finance leases in their own right (see Treasury Circular 1994/7). 6 See the Appendix to CO(99)7 for more guidance on interpreting the delegation limits for fixed assets, and for seeking authorisation above these limits, particularly in relation to operating leases.

CO(99)7
Appendix