# Draft a delegation of authority and approval matrix

An approval matrix that sets who can commit spend, sign contracts, and approve transactions, with limits by role.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Leadership, Finance, Legal, Write, Fill-in Template, Interactive
- Source: https://www.thinkwithprompt.com/prompts/draft-a-delegation-of-authority-and-approval-matrix

## Prompt

```text
Help me draft a delegation of authority (DOA) and approval matrix.

**Company size and structure:** [entities, departments, management layers]
**Decision types to cover:** [e.g. purchase orders, contracts, capex, hiring, pricing and discounts, write-offs, payments, bank accounts, intercompany, legal settlements]
**Current practice and pain points:** [e.g. "everything goes to the CFO", "no limits on contract signing"]
**Board-reserved matters, if known:** [e.g. debt, M&A, budgets]
**Rough approval levels to start from:** [ROLES and AMOUNTS - or ask me to propose]

Requirements:
- Separate the authority to commit (sign or order) from the authority to pay.
- Build in segregation of duties: no one approves their own request, and the person who sets up vendors does not release payments.
- Use cumulative contract value, not annual value, and prohibit splitting purchases to avoid limits.
- Include what happens when an approver is absent (named delegates).

Return:
1. A matrix: Decision type | Threshold | Initiator | Reviewer | Approver | Board required?
2. Policy wording covering purpose, scope, principles, exceptions, and review frequency.
3. Controls to enforce it in our systems.
4. A rollout and training checklist.

Treat as a draft for review by legal counsel and, where relevant, the board or audit committee. Mark proposed amounts [CONFIRM].
```

## What to fill in

- entities, departments, management layers
- e.g. debt, M&A, budgets
- ROLES and AMOUNTS - or ask me to propose
- CONFIRM

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