Accountio / Templates / Finance policies / Delegation of authority matrix

Delegation of authority matrix template for finance teams

Set out who can approve what, and up to how much, for every type of financial decision, with the matters only the board decides. This delegation of authority matrix template is one Word matrix with suggested limits, ready for the board to adopt.

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What the matrix looks like

Delegation of authority matrix template
What the matrix coversSection in the matrix
Decisions only the board takes
✓
Reserved to the boardBudget, accounts, borrowing, acquisitions, dividends and bank mandates
Purchase orders and invoices
✓
Spending and contractsFour levels, from budget holder to chief executive, then the board
Unbudgeted spending and capital expenditure
✓
Spending and contractsLower limits for spending outside the budget
Contracts, leases and purchases without quotes
✓
Spending and contractsLong contracts go to the chief executive whatever their value
Releasing payments and bank signatories
✓
Payments and bankingA second signatory above a set amount, two directors on the largest
New supplier bank details
✓
Payments and bankingApproved after the call-back check
Payroll, new roles and pay rises
✓
People costsBudgeted and unbudgeted roles, with directors' pay kept for the board
Expense claims and directors' expenses
✓
People costsThe chair approves the chief executive's and the FD's expenses
Credit limits, credit notes and write-offs
✓
Revenue and debtsSeparate limits for the credit controller, FD and chief executive
Discounts and payment terms
✓
Revenue and debtsThresholds for long payment terms and large discounts
Journals, asset disposals and year-end estimates
✓
AccountingThe FD's own journals reviewed after posting
Board adoption
✓
AdoptionSigned and dated by the chair and the chief executive

When you need it

Under the model articles, directors can delegate their powers to any person or committee on the terms they choose. A written matrix records those terms in one place. Adopt one or review it when:

  • The directors no longer sign off every invoice and payment themselves
  • A new finance director, chief executive or budget holder starts
  • You change your finance system, bank or payment process
  • Auditors, investors or lenders ask how approvals work
  • A payment went through that nobody should have approved alone

How to use the delegation of authority matrix template

  1. Set your limits in the workbook. The finance controls workbook in the pack holds the same matrix, with a lookup that shows who approves any amount.
  2. Copy the limits into the matrix. Bracketed amounts are suggestions for a company with a turnover of about 20 million.
  3. Check every line against your budget. Budget holders and heads of department approve only within their approved budget.
  4. Name the board's own decisions. Keep or change the list of reserved matters, and the audit committee wording if you have one.
  5. Have the board adopt it. The chair and chief executive sign and date the adoption table. Review it every year.

Questions

What is a delegation of authority matrix?

A table that sets out who in a company can approve each type of decision, such as spending, contracts, payments or write-offs, and up to what amount. Anything above the limit goes to the next level, and some decisions stay with the board.

What should a delegation of authority matrix include?

The decisions reserved to the board, then limits for spending and contracts, payments and banking, people costs, revenue and debts, and accounting entries. Each line names who approves, up to how much, and who approves above that.

Can directors delegate their authority?

Yes. Under the model articles for private companies, directors can delegate any of their powers to a person or committee, to the extent and on the terms they think fit, and can change or revoke the delegation. Check your own articles, as they can say otherwise.

Who approves a delegation of authority matrix?

The board. In this matrix the chair and the chief executive sign the adoption table, and the board reviews it every year.

Should limits include VAT?

This matrix sets every limit excluding sales tax and over the full term of a commitment, so a three-year contract counts at its total value, not its yearly cost.

Also in the finance policies and procedures manual

Governance, authority and segregation of dutiesPurchasing and paymentsExpensesJournals, reconciliations and fixed assetsRevenue, credit control, cash and bankingRecord keepingFinance controls workbook

See the whole pack →

Who it's for

Finance directors and financial controllers who need approval limits written down and agreed by the board.

Last checked

Checked against the model articles for private companies and the Companies Act 2006 in November 2026.