The money on the job

Orders placed that nobody approved, with a supplier nobody checked.

Nothing is ordered that nobody approved

Every request to spend money is held against the cost code budget it belongs to, and goes up a chain set by each person’s own limit. Going over the budget is not a warning that can be clicked past: it needs a form saying why and how it will be covered, and it always goes to a director.

Who has to say yes

Up the chain, in order, and nothing skipped

A requisition goes to the people its value says it must, one after another. Over budget, it always goes to a director, with a form saying why and how it will be covered.

  1. The request The lines, the supplier’s quote, and the cost code budget as it stood when it went up.
  2. Line manager Approves it within their own limit.
  3. Director Over the manager’s limit or the firm’s figure, and always when it is out of budget.
  4. The board Over the board’s figure, a set number of directors.
  5. Accounts Approved, it becomes a purchase order through Accounts or a buyer.

Expenses go up the same chain. A new supplier is held for Accounts until its bank details are confirmed by telephone.

  • Who may approve whatEach person’s line manager and limit. A director over the firm’s figure, or over the manager’s limit. The board, a set number of directors, over the board’s figure. Then Accounts.
  • Requisitions against the budgetWith the supplier’s quote attached, held against the job’s cost code budget as it stood when the request went up.
  • The out of budget formWhy, and how it will be covered. It always goes to a director. Approved requisitions become purchase orders through Accounts or a buyer.
  • New suppliers held for AccountsBank details confirmed by telephone on a number already held, VAT number, CIS status, insurance. Until that is done they cannot be sent an order, let a subcontract, or have a bill approved or paid.
  • Expenses on the same chainReceipts, mileage at HMRC’s rates, nights away, and the firm’s policy with allowances by place. Posted once approved.
A requisition out of budget: the lines and the supplier’s quote, the out of budget form, the cost code budget as it stood, and the approval chain waiting on the director.
A requisition out of budget: the lines and the supplier’s quote, the out of budget form, the cost code budget as it stood, and the approval chain waiting on the director.
A requisition approved by the line manager and, over her limit, by the director, and now on a purchase order.
A requisition approved by the line manager and, over her limit, by the director, and now on a purchase order.
Spending approvals for one director: a requisition out of budget waiting for him, the expense claims on their way through, and a new supplier waiting for Accounts.
Spending approvals for one director: a requisition out of budget waiting for him, the expense claims on their way through, and a new supplier waiting for Accounts.
Requisitions across the company: a draft, one returned for a second price, those ordered, and one out of budget with the director.
Requisitions across the company: a draft, one returned for a second price, those ordered, and one out of budget with the director.
The delegation of authority: the firm’s figures, and each person’s line manager, limit and whether they are a buyer.
The delegation of authority: the firm’s figures, and each person’s line manager, limit and whether they are a buyer.
A new supplier held for Accounts: the checks, the papers they sent, and the note of who was telephoned.
A new supplier held for Accounts: the checks, the papers they sent, and the note of who was telephoned.
An expense claim waiting for a director: the hotel over the policy allowance with the reason given, mileage at HMRC’s rate, and the VAT reclaimed.
An expense claim waiting for a director: the hotel over the policy allowance with the reason given, mileage at HMRC’s rate, and the VAT reclaimed.

The running program on a sample company. The firm, its jobs, its people and every figure are invented.

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