Limits of Authority and Board Approval Controls

Most governance failures that reach the news are not complicated. A payment is made that nobody with the authority to approve it approved, or a board approval is obtained after the money has already gone. A limits of authority framework, sometimes called a delegation of authority, is the control that is meant to stop that: it sets out who may approve which decisions, up to what value, with what supporting papers, and which matters only the board can decide. In statutory bodies the stakes are personal. Under the Statutory Bodies (Discipline and Surcharge) Act 2000, an employee can be surcharged for an improper payment or for any payment of moneys not duly approved, after being given a chance to show cause.

This one-day course is for finance, procurement, treasury, company secretarial, internal audit and management teams in companies, GLCs, statutory bodies and universities. It covers how to design a limits of authority matrix that people can actually follow, the controls that make it bite at the point of payment, the ways it is commonly bypassed, and the records that prove each decision was properly authorised. Public entities should also see Governance of Statutory Bodies, GLCs and Their Subsidiaries.

HRD Corp Training Provider Malaysia HRD Corp SBL-Khas Claimable

Programme Agenda

01

9:00 AM - 9:15 AM

Welcome and Programme Overview

Introduction to the session, objectives, and housekeeping.

02

9:15 AM - 10:15 AM

Why Limits of Authority Fail

Common failures behind recent audit and investigation findings: payments without approval, retrospective approvals, approvals by the wrong body, and delegations that nobody can find. What each costs the organisation and the individuals involved.

03

10:15 AM - 10:30 AM

Break

04

10:30 AM - 11:30 AM

Designing the Matrix

Decision categories, value thresholds, the board's reserved matters, sub-delegation, joint approvals, conflicts of interest, and the approvals that sit outside the organisation, such as a minister or a parent company.

05

11:30 AM - 12:30 PM

Making It Bite at the Point of Payment

Linking the matrix to procurement, contracts and the payment system, maker and checker controls, supporting documentation, and blocking payments that lack the required approval.

06

12:30 PM - 1:30 PM

Lunch

07

1:30 PM - 2:20 PM

How Controls Get Bypassed

Splitting payments to stay under a threshold, variation orders, advances and prepayments, urgent payments, related-party arrangements, and approvals by email outside the system. Detecting each through data analytics.

08

2:20 PM - 3:15 PM

Evidence and Accountability

Board minutes and resolutions, approval records, reporting approvals after the event, personal liability including surcharge for statutory body employees, and what an auditor or investigator will ask for.

09

3:15 PM - 3:30 PM

Break

10

3:30 PM - 4:45 PM

Workshop: Rebuild a Limits of Authority Matrix

Teams review a flawed matrix and a set of payments, identify the unauthorised ones, and redesign the matrix and the payment controls.

11

4:45 PM - 5:00 PM

Wrap-Up and Q&A

Key takeaways, next steps, and close.

Key Outcomes

  • Explain why limits of authority fail and what those failures cost
  • Design a limits of authority matrix with clear reserved matters
  • Connect approvals to procurement, contracts and payment controls
  • Detect split payments, retrospective approvals and other bypasses
  • Keep evidence that proves each decision was properly authorised
  • Explain personal accountability for unapproved payments, including surcharge

Training Mode   Physical / Online / Hybrid / e-learning

HRD Corp   SBL-Khas Claimable

Level   Foundation. For finance, procurement, treasury, company secretarial, internal audit and management teams in companies, GLCs, statutory bodies and universities.

Duration   1 Day (8 Hours)  |  9:00 AM to 5:00 PM

Venue   In-house at the client's premises, or delivered via the client's preferred platform (Microsoft Teams, Zoom, or equivalent)

Assessment   A redesigned limits of authority matrix and payment review completed in the workshop, plus a written knowledge check

Certificate   Certificate of Completion issued to all participants upon full attendance

Enquiries   Contact us to register or discuss scheduling

Frequently Asked Questions

Yes. Limits of Authority and Board Approval Controls is HRD Corp SBL-Khas claimable. Employers registered with HRD Corp (PSMB) can claim the training fee against their levy, as Orbix Tech Sdn Bhd is an HRD Corp certified training provider. Submit the SBL-Khas application before the session date.

Limits of Authority and Board Approval Controls runs for 1 day (8 hours) | 9:00 AM to 5:00 PM. It is delivered as an in-house closed group session, so the schedule can be adjusted to fit your team's working hours.

Yes. Delivery options are physical, online, hybrid, e-learning. In-house sessions run at your premises anywhere in Malaysia, online sessions run live over video conference, and hybrid combines both for teams split across sites.

Certificate of Completion issued to all participants upon full attendance. Each certificate carries a certificate number that can be checked at orbixtech.my/certificate-verify.

Level: Foundation. For finance, procurement, treasury, company secretarial, internal audit and management teams in companies, GLCs, statutory bodies and universities. The session is built around worked examples and group exercises rather than theory, so participants apply the material to their own organisation during the session.

Full-day sessions are quoted per session for a closed group, from RM 1,750. Advanced 2-day programmes are quoted per participant, from RM 4,000. All figures are before any HRD Corp levy claim.