COPY: NNPC Limited Delegated Financial Authority

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What function is responsible for ensuring consistent user profiles and automation of the Delegation of Authority (DFA)?

IT Function (correct)

F&A Function

Governance Risk & Compliance (GRC)

Legal & HR Functions

Which group ensures consistent adherence to the segregation of duties principle and risk mitigation?

Legal & HR Functions

Supply Chain Management (SCM)

Governance Risk & Compliance (GRC) (correct)

Internal Audit (IA)

Who is responsible for ensuring value-added procurement, whole life cycle cost consideration, and publication of quarterly spending reports?

IT Function

Supply Chain Management (SCM) (correct)

Internal Audit (IA)

F&A Function

Which entity outlines authorities for operating and capital expenditures, contract variation limits, and sub-delegation rules?

Delegation of Authority (DFA) Signup and view all the answers

What is responsible for maintaining custody of the DFA and ensuring payment order preparation and suspension if necessary?

F&A Function Signup and view all the answers

Who must act according to NNPC Limited's governance environment, seek interpretation from higher levels in case of doubt, and comply with regulatory provisions?

Individuals with authority Signup and view all the answers

What prevails in case of inconsistency between the DFA and other policies unless it leads to non-compliance with regulatory provisions or the NNPC Limited Code of Conduct and Business Ethics Policy?

Delegation of Authority (DFA) Signup and view all the answers

Who ensures strict enforcement of the NNPC Code of Ethics and Business Conduct, authority derivation, and consideration of organizational and legal structure changes?

Legal & HR Functions Signup and view all the answers

Who includes DFA review in audit programs?

Internal Audit (IA) Signup and view all the answers

Who are expected to act in accordance with their defined roles and responsibilities according to NNPC Limited and its subsidiaries?

Recognized positions Signup and view all the answers

What is the main objective of Delegated Financial Authorities within NNPC Limited?

To promote financial discipline within the Company by balancing efficiency with financial controls Signup and view all the answers

Which act is mentioned as a relevant regulation for the delegated financial authorities?

Petroleum Industry Act 2021 Signup and view all the answers

What is the purpose of the scope of Delegated Financial Authorities?

To form part of the internal control processes for the Company and its subsidiaries Signup and view all the answers

What document should be applied in conjunction with the Delegated Financial Authorities to ensure total compliance?

The contracting and procurement policies Signup and view all the answers

Which act is not mentioned as a relevant regulation for the delegated financial authorities?

Nigerian Oil and Gas Industry Content Development Act Signup and view all the answers

What is one of the objectives of the Delegated Financial Authorities?

To establish rules on sub-delegation Signup and view all the answers

What is intended to be consistent with the delegated financial authorities?

Relevant policy documents including but not limited to the contracting and procurement policies Signup and view all the answers

What is the scope of Delegated Financial Authorities intended to be consistent with?

The Nigerian Code of Corporate Governance 2018 Signup and view all the answers

In addition to relevant regulations, what else should the Delegated Financial Authorities be consistent with?

Leading practices Signup and view all the answers

What does the Objective of Delegated Financial Authorities aim to promote within NNPC Limited and its subsidiaries?

Efficient financial controls Signup and view all the answers

What is the purpose of the Delegated Financial Authorities (DFA) within NNPC Limited and its subsidiaries?

To outline authorities for operating and capital expenditures Signup and view all the answers

What is responsible for maintaining custody of the DFA and ensuring payment order preparation and suspension if necessary?

The CFO for NNPC Limited and ED Finance for Subsidiaries Signup and view all the answers

Which entity ensures consistent adherence to the segregation of duties principle and risk mitigation?

Company policies and procedures Signup and view all the answers

What does the annual budget approval process involve?

Approval by the Board before the start of the financial year Signup and view all the answers

Who must escalate decisions not covered by the DFA to the CEO for action and report to the Board?

Budget Owners Signup and view all the answers

What are required for Level 4 committees and new Subsidiary Level 2 and 3 committees?

Business cases Signup and view all the answers

What is one of the key requirements for the procurement plan under the Delegation of Authority Framework?

The procurement plan should be submitted annually Signup and view all the answers

What is the responsibility of the Budget Department/Planning under the Delegation of Authority Framework?

Reviewing and revising the department's budget as needed Signup and view all the answers

What is a requirement for payment under the F&A section of the Delegation of Authority Framework?

Only valid invoices duly supported and approved are paid Signup and view all the answers

When should the procurement plan be submitted according to the Delegation of Authority Framework?

Annually Signup and view all the answers

What does the Budget Department/Planning ensure in relation to expenditure against contracts?

Monitoring monthly expenditure to ensure contractual commitments are not exceeded Signup and view all the answers

What is the role of the CFO or his nominee in relation to procurement budgeting?

Confirming budget availability prior to contract award Signup and view all the answers

What is a key requirement for payment under the F&A section of the Delegation of Authority Framework?

Ensure adequate approval and authorization before payment Signup and view all the answers

When is single sourcing allowed in the NNPC Limited Delegation of Authority Framework?

When the work or service is of a specialized proposal with strong justification Signup and view all the answers

Who must authorize emergency expenditures in NNPC Limited or its subsidiaries?

Company or Subsidiary CEOs Signup and view all the answers

What action is required from the CEOs after emergency expenditure in NNPC Limited or its subsidiaries?

Inform the Head of Legal within a week Signup and view all the answers

What happens if a delegate or substitute circumvents controls and violates policies according to NNPC Limited?

They are exempt from any consequences Signup and view all the answers

Which departments are responsible for registering individual signatures of delegates and substitutes in NNPC Limited?

Legal, F&A, and Company’s assurance and audit functions Signup and view all the answers

In NNPC Limited, what should IT access rights of staff be in accordance with?

Delegated Financial Authorities (DFA) Signup and view all the answers

What happens during temporary transfers of authority to substitutes in NNPC Limited?

The substitutes are limited to the authorities specifically delegated to them Signup and view all the answers

Who is required to approve borrowing funds under existing credit facilities and issuing guarantees or letters of credit?

The CEO and CFO Signup and view all the answers

What is the approval process for real estate purchases and sales, as outlined in the text?

Joint approval from the CEO and Head of Legal Services Signup and view all the answers

Who must approve foreign business travel for the CEO, MDs, members of SMT, and heads of CSUs?

The Board of Directors Signup and view all the answers

What is required for asset disposals exceeding $10,000 according to the text?

Approval from the Board and GRC notification Signup and view all the answers

Who is authorized to execute severance agreements according to the text?

CEO only Signup and view all the answers

What level of approval is required for foreign business travel not falling within the specified personnel categories?

Internal Audit function Signup and view all the answers

Who approves single sourcing contracts according to the text?

Business owner or budget holder and the NNPC Board Signup and view all the answers

In the context of NNPC Limited's Delegation of Authority Framework, what is the first step for the activation of Level 4 or new subsidiary Level 2 & 3 tenders committee?

The Level 3 heading the relevant division documents a business case Signup and view all the answers

When a subsidiary identifies that it may need more flexibility to purchase cost of goods and generate revenue, what does it seek for?

Unlimited significant recurring OPEX Signup and view all the answers

Who is responsible for reviewing the feedback of GRC and budget functions before making a recommendation to the NNPC Limited CEO for significant recurring OPEX in subsidiaries?

CFO Signup and view all the answers

In the context of NNPC Limited's Delegation of Authority Framework, who initiates a memo when the delegate is unable to personally initiate it?

Sub-Delegate Signup and view all the answers

In the context of NNPC Limited's Delegation of Authority Framework, what does the NNPC Limited CEO review before making a recommendation for significant recurring OPEX in subsidiaries?

Business case itemising significant recurring OPEX, risks, and controls Signup and view all the answers

What is required when NNPC Limited or subsidiary division identifies that it can only operate efficiently by having a Level 4 or new subsidiary Level 2 & 3 tenders committee take ownership of some expenditure?

Creation of the committee Signup and view all the answers

What does the Level 1 in the case of subsidiary require to do with the business case for Level 4 or new subsidiary Level 2 & 3 tenders committee?

Pass the business case to the subsidiary Board for its Pre-Approval Signup and view all the answers

What does the MD require to do with the business case itemising significant recurring OPEX for seeking its unlimited nature in subsidiaries?

Pass it to the subsidiary Board for Pre-Approval Signup and view all the answers

What is the main responsibility of the Budget Department/Planning under the Delegation of Authority Framework?

Ensuring alignment with the annual budget approval process Signup and view all the answers

Who is responsible for reviewing GRC and budget functions feedback before making a recommendation to the NNPC Limited CEO for significant recurring OPEX in subsidiaries?

MD Signup and view all the answers

What is intended to be consistent with the Delegated Financial Authorities within NNPC Limited and its subsidiaries?

Annual budget approval process Signup and view all the answers

What is one of the functions of NNPC?

Regulating and operating in the oil and gas sector Signup and view all the answers

What has NNPC outlined plans to establish?

A security advisory council Signup and view all the answers

What has been a challenge for NNPC in enforcing?

Joint venture (JV) obligations Signup and view all the answers

What has the Nigerian government been diversifying out from, with the potential help of NNPC's economic reforms?

Oil Signup and view all the answers

What is one of the significant challenges for NNPC?

Enforcing JV obligations Signup and view all the answers

What is NNPC embracing in terms of governance reforms?

Governance reforms Signup and view all the answers

What does NNPC aim to establish to address security challenges?

A security advisory council Signup and view all the answers

What sector does NNPC primarily regulate and operate in?

Oil and gas Signup and view all the answers

What is NNPC's role in economic development?

Regulating and operating in the oil and gas sector Signup and view all the answers

COPY: NNPC Limited Delegated Financial Authority

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Questions and Answers

What function is responsible for ensuring consistent user profiles and automation of the Delegation of Authority (DFA)?

Which group ensures consistent adherence to the segregation of duties principle and risk mitigation?

Who is responsible for ensuring value-added procurement, whole life cycle cost consideration, and publication of quarterly spending reports?

Which entity outlines authorities for operating and capital expenditures, contract variation limits, and sub-delegation rules?

What is responsible for maintaining custody of the DFA and ensuring payment order preparation and suspension if necessary?

Who must act according to NNPC Limited's governance environment, seek interpretation from higher levels in case of doubt, and comply with regulatory provisions?

What prevails in case of inconsistency between the DFA and other policies unless it leads to non-compliance with regulatory provisions or the NNPC Limited Code of Conduct and Business Ethics Policy?

Who ensures strict enforcement of the NNPC Code of Ethics and Business Conduct, authority derivation, and consideration of organizational and legal structure changes?

Who includes DFA review in audit programs?

Who are expected to act in accordance with their defined roles and responsibilities according to NNPC Limited and its subsidiaries?

What is the main objective of Delegated Financial Authorities within NNPC Limited?

Which act is mentioned as a relevant regulation for the delegated financial authorities?

What is the purpose of the scope of Delegated Financial Authorities?

What document should be applied in conjunction with the Delegated Financial Authorities to ensure total compliance?

Which act is not mentioned as a relevant regulation for the delegated financial authorities?

What is one of the objectives of the Delegated Financial Authorities?

What is intended to be consistent with the delegated financial authorities?

What is the scope of Delegated Financial Authorities intended to be consistent with?

In addition to relevant regulations, what else should the Delegated Financial Authorities be consistent with?

What does the Objective of Delegated Financial Authorities aim to promote within NNPC Limited and its subsidiaries?

What is the purpose of the Delegated Financial Authorities (DFA) within NNPC Limited and its subsidiaries?

What is responsible for maintaining custody of the DFA and ensuring payment order preparation and suspension if necessary?

Which entity ensures consistent adherence to the segregation of duties principle and risk mitigation?

What does the annual budget approval process involve?

Who must escalate decisions not covered by the DFA to the CEO for action and report to the Board?

What are required for Level 4 committees and new Subsidiary Level 2 and 3 committees?

What is one of the key requirements for the procurement plan under the Delegation of Authority Framework?

What is the responsibility of the Budget Department/Planning under the Delegation of Authority Framework?

What is a requirement for payment under the F&A section of the Delegation of Authority Framework?

When should the procurement plan be submitted according to the Delegation of Authority Framework?

What does the Budget Department/Planning ensure in relation to expenditure against contracts?

What is the role of the CFO or his nominee in relation to procurement budgeting?

What is a key requirement for payment under the F&A section of the Delegation of Authority Framework?

When is single sourcing allowed in the NNPC Limited Delegation of Authority Framework?

Who must authorize emergency expenditures in NNPC Limited or its subsidiaries?

What action is required from the CEOs after emergency expenditure in NNPC Limited or its subsidiaries?

What happens if a delegate or substitute circumvents controls and violates policies according to NNPC Limited?

Which departments are responsible for registering individual signatures of delegates and substitutes in NNPC Limited?

In NNPC Limited, what should IT access rights of staff be in accordance with?

What happens during temporary transfers of authority to substitutes in NNPC Limited?

Who is required to approve borrowing funds under existing credit facilities and issuing guarantees or letters of credit?

What is the approval process for real estate purchases and sales, as outlined in the text?

Who must approve foreign business travel for the CEO, MDs, members of SMT, and heads of CSUs?

What is required for asset disposals exceeding $10,000 according to the text?

Who is authorized to execute severance agreements according to the text?

What level of approval is required for foreign business travel not falling within the specified personnel categories?

Who approves single sourcing contracts according to the text?

In the context of NNPC Limited's Delegation of Authority Framework, what is the first step for the activation of Level 4 or new subsidiary Level 2 & 3 tenders committee?

When a subsidiary identifies that it may need more flexibility to purchase cost of goods and generate revenue, what does it seek for?

Who is responsible for reviewing the feedback of GRC and budget functions before making a recommendation to the NNPC Limited CEO for significant recurring OPEX in subsidiaries?

In the context of NNPC Limited's Delegation of Authority Framework, who initiates a memo when the delegate is unable to personally initiate it?

In the context of NNPC Limited's Delegation of Authority Framework, what does the NNPC Limited CEO review before making a recommendation for significant recurring OPEX in subsidiaries?

What is required when NNPC Limited or subsidiary division identifies that it can only operate efficiently by having a Level 4 or new subsidiary Level 2 & 3 tenders committee take ownership of some expenditure?

What does the Level 1 in the case of subsidiary require to do with the business case for Level 4 or new subsidiary Level 2 & 3 tenders committee?

What does the MD require to do with the business case itemising significant recurring OPEX for seeking its unlimited nature in subsidiaries?

What is the main responsibility of the Budget Department/Planning under the Delegation of Authority Framework?

Who is responsible for reviewing GRC and budget functions feedback before making a recommendation to the NNPC Limited CEO for significant recurring OPEX in subsidiaries?

What is intended to be consistent with the Delegated Financial Authorities within NNPC Limited and its subsidiaries?

What is one of the functions of NNPC?

What has NNPC outlined plans to establish?

What has been a challenge for NNPC in enforcing?

What has the Nigerian government been diversifying out from, with the potential help of NNPC's economic reforms?

What is one of the significant challenges for NNPC?

What is NNPC embracing in terms of governance reforms?

What does NNPC aim to establish to address security challenges?

What sector does NNPC primarily regulate and operate in?

What is NNPC's role in economic development?

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