Approved by: Audit and Risk Committee of the Diocesan Board of Finance
Policy originator: Glyn Barker, Finance Director
Accessible at: Diocesan Website
Date approved: 14 October 2025
Review period: Three years
Review Date: 14 October 2028
Overview
In November 2017, it was agreed, that a Delegation of Authority policy should be drawn up to set out matters specifically reserved for decisions by the Board and its senior officers, and clarifying or establishing the related roles of the Bishop’s Staff, the Bishop’s Council, and other boards and committees and their staff.
Background
The Board, as Directors of the Company and trustees of the charity, is ultimately responsible for the decisions and actions taken, but whilst some specific decisions are reserved to the Board, it needs to decide which other matters it will make decisions about and which it can and will delegate. It also needs to implement suitable financial and related controls and reporting arrangements to make sure it oversees these delegated matters.
Unlike many companies or charities, overall strategy is determined by related bodies in the Bishop’s Council and Diocesan Synod, as well as working closely with, and supporting the work of, the Board for Mission and Ministry and the Board of Education. The Bishop’s Staff lies outside the formal structures of the Diocese. It acts as an advisory group to the Bishop and informs, and is informed by, the discussions and decisions of the Synods, Boards and Committees of the Diocese. Individual members of the Bishop’s Staff may exercise powers arising by virtue of their office. They may also act individually or collectively as Chairs of Boards and Committees. The members of the Bishop’s Council act as quasi trustees and “shadow directors” and, with all other diocesan bodies, should operate according to the same principles of good governance.
None of these bodies can have ‘hands-on’ involvement in every area of activity and will therefore delegate day-to-day responsibility to:
- Sub-Committees
- Individual Chairmen or Directors
- Officers of the charity and other lead officers in the Diocese
As overall responsibility, and liability, rests with the trustees, it is necessary both to give clear guidance and to establish thorough reporting systems to ensure that they make the appropriate decisions about the overall direction of the Charity and to ensure those decisions are enacted. As each trustee is jointly and severally liable, it is important that decisions are taken by the Board as a whole, meeting together in order that they may hear arguments either in favour or against a decision before casting a vote on a proposal.
Purpose
The Delegation of Authority Policy is a policy that has been established by the St Albans Diocesan Board of Finance to:
- Set out matters specifically reserved for determination by the Board and matters delegated to management
- Set out matters reserved for specific roles in the organization, including related bodies
- Establish finance approval limits by role including decisions relating to finance/expenditure/investments
- Establish Human Resources decisions by role relating to employment and remuneration, including termination and redundancy
Matters reserved for the Board
Matters specifically reserved for the Board include:
- Decisions about the charity’s strategy and policies
- Matters involving financial amounts above a certain limit
- Approval of contracts and obligations above a specified limit
- Approval of, or changes to, the annual budget
- All matters relating to the charity with the potential to have a material impact on the reputation of the organisation
Matters delegated to management
Other than as expressly provided in this policy, all matters not specifically reserved for the Board and necessary for the day-to-day management of the organization, and the implementation of corporate objectives, are delegated to the senior officers of the Board who may sub-delegate where appropriate. The Board’s policies and procedures provide guidance on the execution of specific roles and responsibilities.
In drawing up a schedule of matters reserved for the Board it is important to establish procedures for dealing with those issues that have to be dealt with urgently, often between regular board meetings. Decisions could be made by email. or telephone conference, subject to the normal quorum in line with physical Board meetings.
The Chair does not have presumed delegated authority to take decisions on behalf of the other directors unless this has already been decided at a prior meeting relating to a specific matter likely to arise between meetings. In all cases, however, the procedures should balance the need for urgency with the overriding principle that each trustee should be given as much information as possible, the time to consider it properly, and an opportunity to discuss the matter with all the available trustees prior to the commitment of the charity and to receive professional advice where appropriate.
The Delegation of Authority is constructed to enable timely and effective action by trustees so that they are able to fulfill their legal and constitutional duties, through mechanisms and policies which enable them to delegate, monitor and, if necessary, modify or withdraw the delegated authority if it is considered necessary.
Management shall be responsible for:
- Ensuring that day-to-day operations are carried out in accordance with all legal and regulatory requirements
- Ensuring that policies, practices and decisions are undertaken in a manner that is prudent, equitable and consistent, and having regard to equality and diversity policies
- Ensuring that assets are protected, adequately maintained and not placed at unnecessary risk
- Ensuring that approved priorities are reflected in the allocation of resources
- Ensuring that budgeting is based on generally accepted accounting principles and that budgets are balanced
- Promoting a healthy work environment for staff that is consistent with the organisation’s value