77 Questions
Which of the following is the correct abbreviation for Delegation of Authority?
DOA
Who is responsible for approving changes to a subsidiary's logo?
Board Audit Committee
Which committee is responsible for approving changes to NNPC's organization structure?
Board Establishment Committee
Which committee is responsible for approving NNPC's strategy formulation?
Board Strategy, Finance and Investment Committee
How many levels of tender committees are recognized within the DFA?
Four (4)
Which decision making area is responsible for approving changes to a subsidiary's mission and values?
Internal Audit Decision Area
How are assigned financial limits determined?
By the role occupied
Which focus area covers matters related to Risk Management and Assurance?
Governance and Board Matters
Which matters are reserved for shareholders and the Board?
Appointment and remuneration of Directors
Which committee must sign off on the results of tenders evaluation for it to be valid?
Evaluation committee
What is the consequence for contraventions of the DFA?
Dealt with in line with NNPC Limited’s consequence management framework
Who must endorse the expenditure for NNPC Limited and its subsidiaries?
CFO for NNPC Limited and ED Finance for Subsidiaries
When should the annual budgets be presented to the Board for approval?
Beginning of the next financial year
Which board is responsible for approving contracts within defined financial thresholds with the Secretariat of Supply Chain Management (SCM)?
NNPC Tenders Board (NTB)
Which body is responsible for approving the procurement strategy, prequalification/bids evaluations reports, and negotiated contracts for consultancy and non-consultancy services?
NNPC Tenders Board (NTB)
Which document details matters reserved for shareholders, the Board, and the matrix of delegated authorities for strategy & policy, governance, legal, HR, finance, risk, and assurance matters?
Delegation of Authority (DOA)
Which function is responsible for maintaining custody of the Delegation of Authority (DOA)?
GRC function
The Delegation of Authority (DOA) and Delegation of Financial Authority (DFA) Framework for NNPC Limited Walkthrough Session took place on July 18, 2022.
True
True or false: The NNPC Tenders Board is responsible for approving the procurement strategy, prequalification/bids evaluations reports, and negotiated contracts for consultancy and non-consultancy services?
False
True or false: The DFA (Delegated Financial Authority) is a sub-set of the DOA (Delegation of Authority) and details the financial authority limits delegated to various cadres of Management?
True
True or false: The Board has reserved authority for certain decision items and financial thresholds across the Company and its subsidiaries?
True
True or false: The GRC function is responsible for maintaining custody of the Delegation of Authority (DOA)?
False
True or false: The Delegation of Authority (DOA) framework covers matters reserved for shareholders and the Board of Directors?
True
True or false: There are six (6) Decision Focus Areas within the DOA framework?
True
True or false: The Human Resource Management focus area is responsible for approving changes to NNPC Limited's legal structure?
False
True or false: The Finance focus area is responsible for approving the Company's annual budget and financial statements?
True
True or false: The Delegated Financial Authorities (DFA) define the financial approval limits for expenditures and commitments to third parties across NNPC Limited and Subsidiary levels.
True
True or false: The CFO issues a converted DFA at the beginning of each year, using the same FX rate as the annual budget.
True
True or false: Contract variations are applicable to all committees chaired by the CEO/MDs.
False
True or false: The Delegation of Authority (DOA) - Strategic Decisioning team is responsible for maintaining custody of the Delegation of Authority (DOA).
False
True or false: The DFA shall be considered in the development and application of other policies, including the procurement policies to be established by NNPC Limited and its subsidiaries.
True
True or false: Management shall implement automated controls over all aspects of the expenditure cycle, including budgeting, requisition, tendering, contracting, delivering, invoicing, and payment.
True
True or false: No expenditure shall be approved unless it is covered within the budget and funded, with the exception of Payroll and any Significant Recurring OPEX which has been assigned an unrestricted budget.
True
True or false: Results of tenders evaluation shall be signed off by at least 2/3rd of members of the evaluation committee either physically or electronically for it to be valid.
True
Match the following events with their respective times during the 'DOA and DFA Framework for NNPC Limited: Walkthrough Session' on July 18, 2022:
Opening Prayer - 2nd Stanza National Anthem = 09:00 am – 09:05 am Health & Safety Moments = 09:05 am - 09:15 am Pre-transition to NNPC Limited: Delegation Of Financial Authority (DFA) = 09:35 am - 09:45 am Delegation of Authority (DOA) - Strategic Decisioning = 10:05 am - 10:25 am
Match the following teams with their respective topics during the 'DOA and DFA Framework for NNPC Limited: Walkthrough Session' on July 18, 2022:
NMSL & GHSE = Health & Safety Moments OALP = Overarching Legal Architecture of the new DOA Framework SCM = Transition to NNPC Limited: Overview of the Delegation of Authority (DOA) Framework PIA Team KPMG = Delegation of Authority (DOA) - Strategic Decisioning
Match the following decision making authorities with their roles in decision making items:
Board Audit Committee (BAC) = Approves some decisions CEO = Initiates management decisions impacting the entire organization Board Strategy, Finance and Investment Committee (BSFIC) = Reviews and approves NNPC strategy formulation Relevant Subsidiary MD(s) = Informed about changes to NNPC's activities into new businesses or geographic areas
Match the decision making item numbers with their corresponding descriptions:
1 = Definition and amendments to mission, vision and values 3 = NNPC Limited policy articulation, reviews and approval 5 = Investor relations strategy 8 = Changes to subsidiary company's logo
Match the following key elements of the delegated financial authorities with their descriptions:
11 key policy statements = Defines the overall guidelines for financial approval limits Approval limits for tenders = Specifies the maximum amount for tenders that can be approved by certain authorities Contract Variation = Applicable only to the committees chaired by the CEO/MDs Special Class of Expenditure = Significant recurring expenses that form part of cost of sales
Match the following decision items reserved for the NNPC Limited Board with their corresponding categories:
Changes to a Subsidiary’s legal structure = Strategy and Policy Matters Subsidiary Company’s annual budgets = Financial Matters Promotion of staff of Subsidiaries to Senior Management (N3 and above) = Human Resource Matters Appointment and removal of directors in Subsidiaries = Board Operations Matters
Match the following focus areas with their key type of actions:
Strategy and Policy = Initiate, Recommend, Pre-approve, Approve or reject a request Risk Management and Assurance = Consult, Recommend, Pre-approve, Approve or reject a request Governance and Board Matters = Initiate, Consult, Recommend, Pre-approve, Approve or reject a request Human Resource Management = Initiate, Consult, Recommend, Pre-approve, Approve or reject a request
Match the following decision items with the bodies they are reserved for:
Appointment and remuneration of Directors = Shareholders Amendment of memorandum and articles of association = Board Extension of the Company’s activities into new business or geographic areas = Board Appointment, remuneration and termination of external auditors = Shareholders
Match the following focus areas with their descriptions:
Strategy and Policy = Propose a request for approval Risk Management and Assurance = Consult (seek the views and opinions of other parties) before taking decision Governance and Board Matters = Put forward or suggest a proposed decision for approval Human Resource Management = Declare support on a matter
Match the following focus areas with their actions:
Strategy and Policy = Grant consent on a matter Finance = Execute Legal = Inform Risk Management and Assurance = Consult
Match the following groups with their respective responsibilities within the NNPC Limited's Delegation of Authority (DOA) Framework:
Shareholders of NNPC Limited = Matters reserved for shareholders Board of Directors of NNPC Limited = Matters reserved for the Board Management of NNPC Limited = Authority required for day-to-day running of the business Subsidiaries of NNPC Limited = Corporate synergy between NNPC Limited and Subsidiaries
Match the following components and stakeholders with their custodians in the NNPC Limited's DOA Framework:
Delegation of Authority (DOA) = The GRC function Delegated Financial Authorities (DFA) = F&A Roles and Responsibilities = All stakeholders Resources and Assets = All stakeholders
Match the following key design elements with their descriptions in the Delegation of Authority Framework:
Enhanced Stakeholder representation = The Board has reserved authority for certain decision items and financial thresholds across the Company and its subsidiaries Prudent and Balanced Approval Limits = Authority required for day-to-day running of the business
Match the following guiding principles with their corresponding standards in the Delegation of Authority Framework:
Compliance with Regulatory Requirements and Leading Standards = PIA 2021, CAMA 2020, NCCG 2018 Alignment with NNPC Limited’s Governance Framework = MEMART Board and Board Committee charters, Related policies and procedures including Contracting and procurement policies, Consequence management framework, Code of ethics, HR policies Adequate Balance of Efficiency and Financial Controls = Strategy and goals, Operational realities of NNPC Limited and its subsidiaries
Match the following policy statements with their corresponding areas of focus:
Sub-delegation and accountability for authority exercised during interim delegation shall be in line with the defined rules on sub-delegation, as approved from time to time. = Delegation No expenditure shall be approved unless it is covered within the budget and funded. = Budget Results of tenders evaluation shall be signed off by at least 2/3rd of members of the evaluation committee either physically or electronically for it to be valid. = Tender Evaluation Subsidiary budgets shall not be approved by the Board of the subsidiary without pre-approval of the NNPC Limited Board. = Subsidiary Budget
Match the following aspects of the DFA policy with their related details:
Annual budgets = Presented to the Board for approval before the beginning of the next financial year Expenditure = Endorsed by the CFO for NNPC Limited and ED Finance for Subsidiaries Contract splitting = Taken as a serious infringement and dealt with in accordance with the Consequence Management Framework Tenders evaluation = Results to be signed off by at least 2/3rd of members of the evaluation committee
Match the following statements to the appropriate NNPC Limited policy:
There shall be zero tolerance for contraventions of the DFA = Consequence Management The annual budgets shall be presented to the Board for approval before the beginning of the next financial year = Budget Approval Sub-delegation and accountability for authority exercised during interim delegation shall be in line with the defined rules on sub-delegation = Delegation No payment shall be made unless due process has been followed in line with the contracting and procurement policies = Payment
Match the following key considerations for defining the limits and developing the DFA with their corresponding activities:
Peculiarities of the Control Environment = Review of NNPC Limited’s transaction profile and calibration of the limits to the Company Financial Performance = Proposal of financial authorities across key categories of expenditure and decision making Efficiency of Operations = Presentation to SLT, SMT and finally the Board for approval Prevalent Practices in the Oil & Gas Industry = Benchmark analysis on practices and limits in comparative institutions
Match the following facts to their respective topics:
40% of spinal surgeries are unsuccessful (‘failed back surgery syndrome’). = Low Back Pain (LBP) Cause about 700 fatalities per year in the U.S. – Bureau of Labour Statistics = Slips, Trips, and Falls To walk Management staff regulatory, To clarify governance To obtain on grade levels M6 and structural, and structures, controls and feedback and seek above through the new governance controls) compliance checks to the be enforced arising from of Management staff consistent understanding. = NNPC PIA Implementation Walkthrough Session The Nigerian Code of Corporate Governance (NCCG) 2018 DOA/DFA do not stand on their own. They rest on the shoulders of the law. = Overarching Legal Architecture of the New DOA Framework
Match the components of the Legal Architecture with their corresponding levels:
Petroleum Industry Act (PIA) 2021 = Level 2 NNPC Ltd. Board & Board Committee Charter = Level 3 Delegation of Authority (DOA) and Delegated Financial Authority (DFA) = Level 1 Companies and Allied Matters Act (CAMA) 2020 = Level 1
Match the following figures with their corresponding facts:
84% = Percentage of adults who experience Low Back Pain (LBP) in their lifetime 95% = Percentage of people with LBP who recover within 12 weeks using conservative care options 700 = Number of fatalities per year in the U.S. due to slips, trips, and falls 40% = Percentage of spinal surgeries that are unsuccessful
Match the following prevention tips to their respective hazard categories:
More Movement = Less Back Pain = Low Back Pain (LBP) Prevention Keep working areas well lit = Preventing Fall Accidents To provide insights to several linkages (legal, To walk Management staff regulatory, To clarify governance To obtain on grade levels M6 and structural, and structures, controls and feedback and seek above through the new governance controls) compliance checks to the be enforced arising from of Management staff consistent understanding. = NNPC PIA Implementation Walkthrough Session Alteration of share capital – Section 125 of CAMA Directors – Articles 3.4 of NNPC Ltd. MEMART; Section 273 of CAMA External auditors – Section 401 of CAMA = Overarching Legal Architecture of the New DOA Framework
What is the consequence for contraventions of the Delegation of Financial Authority (DFA)?
Legal action against the individuals responsible
Who is authorized to approve the Company's annual budget and financial statements within NNPC Limited?
The Finance focus area
Which legislative act corresponds to Level 1 in the Legal Architecture components mentioned in the text?
Companies and Allied Matters Act (CAMA) 2020
What percentage of people with Low Back Pain (LBP) recover within 12 weeks using conservative care options?
95%
What is a requirement for the results of tenders evaluation to be considered valid?
Physical or electronic signature by at least 50% of the evaluation committee members
Which key consideration is mentioned in the text for defining the limits and developing the Delegation of Financial Authority (DFA)?
Reviewing prevalent practices in the Oil & Gas industry
What is the consequence for contract splitting as mentioned in the text?
It is dealt with in accordance with the Consequence Management Framework
Who must pre-approve subsidiary budgets according to the text?
NNPC Limited's Board
What is required for a payment to be made according to the text?
Following due process in line with contracting and procurement policies
Which body is responsible for approving annual budgets before the start of the next financial year?
NNPC Limited's Board
What is the responsibility of the NNPC Tenders Board (NTB) in relation to contracts?
Approving contracts within defined financial thresholds
In the NNPC Limited's DFA, who determines the financial authority limits delegated to various management cadres?
The CFO
What consequence is outlined for contraventions of the DFA within NNPC Limited?
In line with NNPC Limited’s consequence management framework
Who is responsible for presenting the annual budgets to the Board for approval?
CFO
What is required for results of tenders evaluation to be considered valid based on the text?
Signing off by at least 2/3rd of members of the evaluation committee
Which focus area has the responsibility for approving changes to NNPC Limited’s legal structure?
HR Management focus area
Who is tasked with maintaining custody of NNPC Limited's Delegation of Authority (DOA)?
GRC function
Who issues a converted DFA at the beginning of each year using the same FX rate as the annual budget?
The CFO
What is the responsibility of Management concerning expenditure cycle controls?
Implementing automated controls over all aspects of the expenditure cycle
Which area within NNPC Limited's DOA framework is responsible for matters related to Risk Management and Assurance?
GRC function
Which body reserves authority for certain decision items and financial thresholds across NNPC Limited and its subsidiaries?
Board of Directors
Study Notes
Delegation of Authority and Financial Authority Abbreviations
- DOA stands for Delegation of Authority
- DFA stands for Delegation of Financial Authority
Decision Making and Approvals
- The Board reserves authority for certain decision items and financial thresholds across NNPC Limited and its subsidiaries
- The CFO is responsible for approving the Company's annual budget and financial statements
- The GRC function is responsible for maintaining custody of the Delegation of Authority (DOA)
- The Finance focus area is responsible for approving contracts within defined financial thresholds with the Secretariat of Supply Chain Management (SCM)
- The NNPC Tenders Board is responsible for approving the procurement strategy, prequalification/bids evaluations reports, and negotiated contracts for consultancy and non-consultancy services
- The Board is responsible for approving changes to a subsidiary's mission and values
- The CEO/MDs approve contract variations
Financial Authorities and Limits
- The DFA defines the financial authority limits delegated to various cadres of Management
- The CFO issues a converted DFA at the beginning of each year, using the same FX rate as the annual budget
- Assigned financial limits are determined based on budget and funding
- No expenditure shall be approved unless it is covered within the budget and funded, with the exception of Payroll and any Significant Recurring OPEX which has been assigned an unrestricted budget
Tenders and Evaluation
- Results of tenders evaluation shall be signed off by at least 2/3rd of members of the evaluation committee either physically or electronically for it to be valid
- Contract variations are applicable to all committees chaired by the CEO/MDs
- The NNPC Tenders Board is responsible for approving contracts
Consequences and Compliance
- The consequence for contraventions of the DFA is outlined in the policy
- Management shall implement automated controls over all aspects of the expenditure cycle
- Contract splitting is not allowed and has consequences outlined in the policy
Test your knowledge on the approval limits and tender committees within NNPC Limited. This quiz will cover topics such as contracting, procurement, code of ethics, and consequence management policies. See how well you understand the levels of tender committees and their role in decision-making.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
