Understanding Delegation of Authority in Corporate Settings

Delegation of Authority In this course, you will learn about required authorizations to commit company assets and approved spending limits. Section 1 Section 2 Section 3 Overview of the Delegation of Authority Definitions and Structure of the Delegation of Authority Guidance Section 6 Section 5 Section 4 Examples of how the Delegation of Authority works Definition of Sub- delegation of Authority and how it works Global Credit Authority

The Approver

Definitions Definitions define the specific authorities, as related to positions within the company, to avoid any misunderstanding as to who has what authority. For example: CFO = Executive VP and Chief Financial Officer COO = Executive VP and Chief Operating Officer SVP HR = Senior Vice President, Human Resources

Example The phrase Board via review with General Counsel means that the Board consults with the General Counsel in reaching their decision. What about when you have multiple authorities? via or and President, CEO or CFO means that any of the 3 listed approvers may authorize the expenditure individually. CEO and CFO means that both must authorize this expenditure.

Send new topics or ideas to be incorporated into the document to the Corporate Controller. Situations Not Specifically Addressed Discretion in interpretation, as well as sound judgment, should be used in cases where an item is not specifically addressed. When questions do arise, address with most senior Finance person in office. New situations should be referred to a higher approval authority. If in the approver s judgment, a decision should be made at that level.

Sub-Delegation Xxx will allow designated approvers the right to sub- delegate their authorities under certain limitations.

Supervisor, Credit and Collections $5,000 Manager, Credit and Collections $15,000 3 Manager can then sub- delegate authority. 1 Documentation and approval from next level of authority. Corporate Controller and Legal Department 2 Documentation forwarded for acknowledgement. Treasurer

The Global Credit Approval Authority is a separate document which acts as an addendum to the Delegation of Authority. The objective is to outline the specifics surrounding the extension of credit to xxx customers. Global Credit Approval Authority

The principle responsibility for establishing credit facilities for customers lies with the . Corporate Credit Department Credit approvals, or any other contractual terms, may only be granted by authorized personnel for their respective entities. In other words, Regional VPs and Regional Controllers can only approve credit for the entities within their regions.

Global Credit Authority The Global Credit Approval Authority provides authorities for the following categories: Granting of additional credit for troubled accounts Authorities for aircraft maintenance Establishing new credit Settlement on account, refunds, liens Extension of payment terms, reductions of late fees **In each category, authorization limits are established in an effort to control the extension of credit to our customers.