The Procurement Glossary » Delegation of Authority (DOA)
Delegation of Authority (DOA)
Procure-to-Pay
Also known as: DOA, Authority Matrix
Definition
The formal policy defining who can approve spend and up to what value, at each level of an organisation.
Explanation
The DOA matrix underpins approval workflows: it sets spending limits by role so commitments are authorised by someone with the right mandate. It is a key financial control and audit checkpoint.
Example
Per the DOA, a manager may approve up to RM5,000; the director up to RM50,000; anything higher needs the CFO.
Related terms
- Approval Workflow — The defined sequence of authorisations a requisition, order or invoice must pass through before it can proceed.
- Approval Hierarchy — The ordered chain of approvers through which a purchase must pass, typically escalating with value.
- Segregation of Duties (SoD) — A control principle that splits critical steps among different people so no one individual controls a whole transaction.
- Budget — A financial plan allocating expected spend across categories, departments or projects for a period.
Frequently Asked Questions
What is Delegation of Authority (DOA)?
The formal policy defining who can approve spend and up to what value, at each level of an organisation. The DOA matrix underpins approval workflows: it sets spending limits by role so commitments are authorised by someone with the right mandate. It is a key financial control and audit checkpoint.
Can you give an example of Delegation of Authority (DOA)?
Per the DOA, a manager may approve up to RM5,000; the director up to RM50,000; anything higher needs the CFO.
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