Who needs to approve my budget request?

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    "name": "Who needs to approve my budget request?",
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    "description": "Route a spend request to the correct approval authority based on amount, budget status, and strategic nature of the expenditure. Use this tree before raising a purchase order or committing to any supplier to ensure compliance with the Delegated Authority Matrix. Incorrect routing can cause payment delays, contract nullification, and audit findings, so work through each question carefully.",
    "mode": "decision",
    "entry": "Q1",
    "tags": [
      "finance",
      "budget",
      "approval",
      "procurement",
      "spend management"
    ],
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  "questions": [
    {
      "id": "Q1",
      "text": "Is the total spend value within your personal delegated authority limit?"
    },
    {
      "id": "Q2",
      "text": "Is the expenditure included and approved within the current financial year budget?"
    },
    {
      "id": "Q3",
      "text": "Does the total spend exceed £50,000 or the Finance Director approval threshold in your Delegated Authority Matrix?"
    },
    {
      "id": "Q4",
      "text": "Is this expenditure capital in nature or classified as a strategic investment?"
    },
    {
      "id": "Q5",
      "text": "Does the total spend or project value exceed £500,000 or require Board-level approval per the Delegated Authority Matrix?"
    },
    {
      "id": "Q6",
      "text": "Is this supplier new to the organisation with no existing approved vendor record?"
    }
  ],
  "outcomes": [
    {
      "id": "SELF_APPROVE",
      "label": "Self-Approve (Within Delegated Authority)"
    },
    {
      "id": "LINE_MGR",
      "label": "Line Manager Approval Required"
    },
    {
      "id": "FIN_DIR",
      "label": "Finance Director Approval Required"
    },
    {
      "id": "CFO",
      "label": "CFO Approval Required"
    },
    {
      "id": "BOARD",
      "label": "Board Approval Required"
    }
  ],
  "dsl": "dag: Who needs to approve my budget request?\nversion: 1.0.0\nimage: https://images.unsplash.com/photo-1450101499163-c8848c66ca85?w=1200&q=80\ndescription: Route a spend request to the correct approval authority based on amount, budget status, and strategic nature of the expenditure. Use this tree before raising a purchase order or committing to any supplier to ensure compliance with the Delegated Authority Matrix. Incorrect routing can cause payment delays, contract nullification, and audit findings, so work through each question carefully.\ntags: finance, budget, approval, procurement, spend management\nentry: Q1\n\nQ1: Is the total spend value within your personal delegated authority limit?\n  hint: Your Delegated Authority Matrix (DAM) sets the maximum value you can approve without escalation — typically £500 to £2,000 for most staff. Include all associated costs such as delivery, installation, training, and recurring licence fees in the total commitment value, not just the headline purchase price. For multi-year contracts, use the total contract value (TCV). If you are unsure of your personal limit, check the Finance intranet page or contact your Finance Business Partner before proceeding — do not assume authority you have not been granted in writing.\n  yes -> Q2\n  no  -> Q3\n\nQ2: Is the expenditure included and approved within the current financial year budget?\n  hint: A spend request is \"budgeted\" only if it appears as a specific line item in the approved budget for this cost centre and reporting period — not simply within a broad category or because a similar item was bought last year. Unbudgeted spend, even when it falls within your personal authority limit, triggers a separate approval path to maintain forecast accuracy. Check your cost centre budget report in the ERP system and compare the specific nominal code before answering. If the budget line exists but has already been fully committed or spent, treat this as unbudgeted.\n  yes -> [SELF_APPROVE]\n  no  -> [LINE_MGR]\n\nQ3: Does the total spend exceed £50,000 or the Finance Director approval threshold in your Delegated Authority Matrix?\n  hint: Many organisations set the Finance Director threshold at £50,000 or £100,000; refer to your specific DAM policy document for the exact figure applicable to your entity and spend category. For multi-year contracts, aggregate the full TCV rather than using the annual recurring cost. If the spend straddles a financial year end, the full multi-year commitment must be assessed against the threshold. Contracts with optional renewal clauses should include the renewal periods if they are likely to be exercised.\n  yes -> Q4\n  no  -> [LINE_MGR]\n\nQ4: Is this expenditure capital in nature or classified as a strategic investment?\n  hint: Capital expenditure (assets with a useful life exceeding one year and above your capitalisation threshold) and strategic investments — such as acquisitions, new market entry programmes, major IT transformation projects, or new facility fit-outs — require CFO or Board sign-off regardless of absolute value. Refer to the CapEx vs OpEx Classification tree if you are unsure whether the cost should be capitalised. Projects that appear in the strategic plan, have an approved business case template, or involve a new legal entity always follow the capital approval route. Operational overspend on an existing budget line is not a strategic investment.\n  yes -> Q5\n  no  -> [FIN_DIR]\n\nQ5: Does the total spend or project value exceed £500,000 or require Board-level approval per the Delegated Authority Matrix?\n  hint: The Board approval threshold is reserved for material capital programmes, business acquisitions, disposals, or financial commitments that could significantly affect the balance sheet, debt covenants, or strategic direction of the organisation. Check the most recently approved DAM, which is published on the Finance intranet and updated annually following the Board's approval. If the project has a Programme Steering Committee, confirm whether Board approval is already embedded in the governance process or whether a separate resolution is required. When in doubt, escalate — it is far easier to obtain Board ratification early than to retrospectively seek approval for an already-committed cost.\n  yes -> [BOARD]\n  no  -> [CFO]\n\nQ6: Is this supplier new to the organisation with no existing approved vendor record?\n  hint: Engaging a new supplier carries additional risk — including fraud, sanctions exposure, and contractual liability — that must be assessed before commitment. Most Finance policies require a new supplier to complete an onboarding form, provide bank details through a secure channel, pass a credit and sanctions check, and be added to the approved vendor list before a purchase order can be raised. Answer yes if the supplier does not currently appear in your ERP vendor master file with an active status. Even if the spend value is low, the new supplier process is non-negotiable and runs in parallel with the spend approval.\n  when: Q2=no\n  yes -> [LINE_MGR]\n  no  -> [LINE_MGR]\n\n[SELF_APPROVE]: Self-Approve (Within Delegated Authority)\n  color: #2E7D32\n  description: You are authorised to approve this spend without further escalation, provided it is within your delegated limit and the budget line has capacity. Record your approval decision in the procurement or expense system, referencing the budget code, cost centre, and nominal code, and retain a copy of any quotes or supporting documentation. Raise a purchase order before committing to the supplier — verbal or email commitments made prior to a PO may still create a legal obligation and will breach procurement policy. Confirm receipt of goods or services before authorising the invoice for payment to protect against duplicate payment and fraud.\n  code: FIN_SELF_APP\n\n[LINE_MGR]: Line Manager Approval Required\n  color: #F9A825\n  description: Forward the spend request to your direct line manager for approval, including a clear business justification, the proposed supplier name, budget code, and at least three comparable quotes if the value exceeds £1,000. Your manager must record their approval in the procurement or expense system before any purchase order is raised or any commitment is made to the supplier. If your manager is unavailable for more than two business days, escalate to their designated deputy — do not self-approve in their absence. Once approval is confirmed, return to the standard purchase order workflow and copy Finance on the approval record.\n  code: FIN_LINE_MGR\n\n[FIN_DIR]: Finance Director Approval Required\n  color: #E65100\n  description: Prepare a spend approval request form including full business justification, a minimum of three supplier quotes, total contract value, budget impact analysis, and the recommended nominal code treatment. Submit the request to the Finance Director via the capital and project approval workflow in the ERP system and allow at least five business days for review. The Finance Director may request a budget reforecast, a value-for-money assessment, or confirmation of procurement policy compliance before approving. Do not commit to the supplier, sign any contract, or raise a purchase order until written approval is received and recorded in the system.\n  code: FIN_FD_APP\n\n[CFO]: CFO Approval Required\n  color: #B71C1C\n  description: Complete a formal business case using the organisation's standard template, covering strategic rationale, financial modelling (including NPV or payback period where applicable), risk assessment, and proposed supplier selection rationale. Submit the business case to the CFO's office via the Finance Director, who will conduct an initial completeness review before escalating. Allow a minimum of ten business days from submission and be prepared to present to the Finance Leadership Team or Investment Committee. No contractual commitment, heads of terms, or purchase order may be raised until CFO approval is confirmed in writing and the project is recorded in the capital commitment register.\n  code: FIN_CFO_APP\n\n[BOARD]: Board Approval Required\n  color: #4A148C\n  description: This spend requires a formal Board paper prepared in accordance with the Board Reporting template and submitted to the Company Secretary at least 15 business days before the next scheduled Board or Committee meeting. The paper must include a full financial appraisal, sensitivity analysis, risk register entry, procurement strategy, legal advice summary, and a recommendation signed off by the CFO. The Board will either approve, defer pending further information, or reject; no commitment to the supplier may be made at any stage — including signing NDAs or heads of terms — before the Board resolution is minuted. Engage the CFO, Legal, and Company Secretary immediately to begin the preparation process.\n  code: FIN_BOARD_APP\n"
}