Skip to content

Access keys for nzta.govt.nz

  • h Home
  • m Menu
  • 0 Show list of access keys
  • 2 Skip to content
  • 3 Skip to top

Introduction

This section provides a summary of the NZ Transport Agency's planning, funding and procurement delegations.

Delegations in Agency

The Transport Agency has three levels of delegation:

  • from the Board to Board Committees or the Chief Executive;
  • from the Chief Executive to Group Managers; and
  • from Group Managers to staff.

This section summarises current planning, funding and procurement delegations. Transport Agency staff are advised to refer to the original Delegations page on the Transport Agency intranet, to ensure full understanding of the delegations.

Delegations outside Agency

The Transport Agency Board has agreed that Approved Organisations may receive delegated power to make funding approvals for small improvement projects up to $5 million construction/implementation cost per activity, provided that:

  • the Transport Agency is confident that the Approved Organisation has the financial management, governance, risk management, and staff capability to exercise the delegations,
  • the Approved Organisation enters into a formal agreement with the Transport Agency,
  • there are sufficient (up to $5 million)  projects in the Approved Organisation's programme to warrant setting up the delegation.

In effect, the Instrument of Delegation is from the Group Manager Planning & Investment to the Approved Organisation. The formal agreement is between the relevant Regional Manager Planning & Investment and the Approved Organisation, and sets out the respective responsibilities, including meeting Transport Agency expectations, principles and policy, as detailed in this Knowledge Base.

Programme management delegations

Organisations have delegated authority to manage programmes of activities, which may include the authority to transfer approved allocated funds between work categories and activity classes within the programme subject to terms and conditions formally advised by the Transport Agency (Planning & Investment). These programmes are:

  • road maintenance programmes (road controlling authorities)
  • public transport services programmes (regional authorities)
  • minor improvements programmes (road controlling authorities and regional authorities)
  • small improvement project programmes (as at July 2014, this delegation is to the Transport Agency (state highways) and Auckland Transport only)
  • road safety promotion programmes (Approved Organisations and the Transport Agency)

Delegations structure

The following diagram summarises the flow of delegated authority from the Transport Agency Board to staff and Approved Organisations.

Delegations.gif

Investment decisions

The Transport Agency requires that all investment decisions are made by:

  • applying the Transport Agency's Planning and Investment Principles, ensuring that the activity is eligible for Transport Agency funding, a planning and investing for outcomes approach is applied and Transport Agency operational policy is followed.
  • using the Transport Agency's Assessment Framework to assess the priority of the activity for investment.

Expectations for exercising delegations

Those making investment decisions under delegation shall ensure that:

  • investment decisions are made within delegation limits, such as maximum project size (construction cost estimate) or annual expenditure limit, at all times.
  • the Transport Agency significance policy is applied.  This policy defines what is meant by "significant" and guides delegates to consider whether a decision is “significant” and should therefore be elevated to a higher level within the Transport Agency for the decision to be made. Approved Organisations that receive delegations for funding approvals are expected to be aware of the principles of the Transport Agency significance policy and to apply these to all decisions. 
  • the scrutiny principle is applied to investment decisions for proposed Transport Agency activities. This principle requires that the Transport Agency must give a similar level of scrutiny to its own proposed activities as it would give to those proposed by approved organisations.
  • the appropriate expertise to assess the application and make a recommendation is applied to the proposed activity. This will include expert independent peer review where necessary.
  • the cash-flow profile for the proposed activity can be supported by the forecast Transport Agency funds, i.e. to ensure there are sufficient funds available to fund the activity. This should be determined in consultation with the P&I Investment Framework Manager.
  • account is taken of any Transport Agency current cash-flow management  directives, which may include a moratorium on approving certain new activities.
  • account is taken of any directive or guidance on current priority thresholds for approving investment in activities. Any proposal to invest in an activity outside the current priority threshold will trigger the Transport Agency significance policy.

Removal of delegations

Failure to meet Transport Agency expectations in exercising delegations may result in the full or partial removal of authority to make decisions under delegation. The removal of delegations may be permanent or temporary and reinstatement of delegations may require evidence that any issue that led to their removal has been rectified.

Delegations may also be removed by the Group Manager Planning & Investment, where he considers that the risk to Transport Agency investment has grown to an unacceptable degree. 

Approving funding assistance rates

Scenario

Delegate

Set funding assistance rate for each Approved Organisation

Board

Approve variation to rate of funding assistance for specific projects

Board

Support strategies and endorse packages

Note: only if developed prior to the Business case Approach being implemented , i.e. developed during the 2012-15 NLTP.

Scale (Cost impact of strategy)

Delegate

Greater than $100 million

Board

Up to $100 million

Group Manager P&I*

Up to $60 million in Auckland/ Northland

Regional Manager P&I - Auckland Northland

Up to $30 million

Regional Manager P&I - other regions

* - "P&I" = Transport Agency Planning & Investment Group

- "HNO" = Transport Agency Highway & Network Operations Group, shown as Transport Agency (state highways) elsewhere in the Knowledge Base

Support Strategic Cases 

Support Strategic Cases and approve funding for development of Programme Business Cases that are listed in the current NLTP* (under Work Category 004)

Scale (Cost impact of strategic case)

Delegate

Implementation cost is likely to be greater than $30 million ($60 million for Auckland/Northland)

Group Manager P&I*

Implementation cost is likely to be less than $60 million, for Auckland/Northland

Regional Manager P&I - Auckland Northland

Implementation cost is likely to be less than $30 million in regions other than Auckland/Northland

Regional Manager P&I - other regions

National Manager Network Directions & Performance (HNO)

 Adding Programme Business Cases to the NLTP

Varying the NLTP to add Programme Business Cases (under Work Category 004)

Significance

Delegate

All Programme Business Cases

National Manager Investment

Support Programme Business Cases

 Support Programme Business Cases (for approving funding once the Programme Business Case is complete see "Activities progressed under Business Case Approach" below).

Scale (Cost impact of strategy)

Delegate

Implementation cost is likely to be greater than $100 million.

Board

Implementation cost is likely to be less tha $100 million

Group Manager P&I*

Implementation cost is likely to be less than $60 million, for Auckland/Northland

Regional Manager P&I - Auckland Northland

Implementation cost is likely to be less than $30 million in regions other than Auckland/Northland

Regional Manager P&I - other regions

Other planning activities

Approve funding and variations of RLTP development management, model development and activity management planning.

Funding Priority

Delegate

Included in the NLTP

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

Not included in the NLTP

National Manager Investment

Activities progressed from strategies and studies 

Approving funding of any phase of an improvement activity developed prior to Business Case Approach.

Scale (construction cost including net property cost)

Delegate

Greater than $50 million

Board

Between $15 and $50 million

Group Manager P&I

Up to $15 million

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

Up to $5 million for Auckland Transport only

Auckland Transport Chief Financial Office

Activities progressed under Business Case Approach

Approving funding for development and delivery of any business case beyond development of the Programme Business Case.

Scale (construction cost including net property cost)

Delegate

Greater than $50 million

Board

Between $15 and $50 million

Group Manager P&I

Up to $15 million

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

Up to $5 million for Auckland Transport only

Auckland Transport Chief Financial Office

Endorsement of Preferred Option

Scale

Delegate

All

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

* Note that this does not include any funding approval.

Delegates should consider the scale and significance of the activity, and seek higher endorsement as appropriate.

Adding activities to the NLTP

Variations to the NLTP to add activities (other than Programme Business Cases). 

For information on delegations for adding Programme Business Cases to the NLTP see the "Adding Programme Business Cases to the NLTP" section

Scale

All activities within sub-delegate's funding approval*

All activities outside of  sub-delegate's funding approval

All Values

National Manager Investment - for nationally delivered activities

Regional Manager P&I - for regionally delivered activities

Group Manager P&I

*  Proposals to add Approved Organisation or state highway activities to the NLTP will require prior variation of relevant RLTPs, unless already included in an RLTP or exempt. See the Prior RLTP variation not required section of the Unlisted Activities and Programme Variations overview for exemptions.

Cost-scope adjustments and programme variations

Activity Class

Scale

Delegate

Improvement activity, preventive maintenance activity, emergency works activity, or a minor improvements programme.

 

 

Greater than $5 million cumulative*

Group Manager P&I

Up to $5 million cumulative*

Regional Manager P&I – Approved Organisation activities

National Manager Network Directions & Performance (HNO) - state highway activities

Approve and vary Maintenance and Public Transport programmes, nationally delivered Road Safety Promotion programmes and Sector Research activities

All values within the limits of the activity class funding allocation by the Board

National Manager Investment

Provide recommendations for police activities

All values

Board

Recommend variation to a Road Policing programme

All values

National Manager Investment

* Cumulative means the total of all cost-scope adjustments, including the proposed adjustment, since funding for the activity was initially approved. If the cumulative cost-scope adjustment means that the project construction/implementation cost will exceed the delegated authority for approving funding of any phase or business case, the proposed cost-scope adjustment must be elevated for approval to the appropriate level of delegation.

* If the cost-scope adjustment results in a change in the funding priority of an activity, e.g. to less than "Reserve", this will trigger the Agency's significance policy and require the decision to approve the adjustment to be elevated. 

* A decision on Significance needs to consider the impact of a scope change on the outcomes that will be delivered from the activity. If these are materially impacted, the significance of the proposed change should be viewed as High and would also require prior variation of the relevant RLTP. 

Emergency works activities

Note that the limits are per event.

Scale (New approval and variations*)

Delegate

Greater than $15 million

Group Manager P&I

Up to $15 million

Regional Manager P&I – Approved Organisation activities

National Manager Network Directions & Performance (HNO) - state highway activities

Up to $1 million (Emergency Works only)

Planning and Investment Manager

Senior Investment Advisor

* If cumulative variations mean that the cost will exceed the delegated authority for approving funding of the activity, the proposed variation must be elevated for approval to the appropriate level of delegation.

Cost variations other than Cost-Scope Adjustments

Note that all variations are subject to NLTF cash-flow constraints.

Cost decreases (i.e. surplus funds are declared)

Fiscally neutral cash-flow adjustments

Fiscally neutral transfers within a Maintenance Programme

Regional Manager P&I – for Approved Organisations*

National Manager Network Directions & Performance (HNO) – for State Highways

Manager National Programmes - for nationally delivered activities

* Regional Managers may sub-delegate approval of fiscally neutral cost variations to Planning & Investment Managers and Senior Investment Advisors as appropriate.

Funding transfers between activity classes

Scale

Materially impact delivery of GPS outputs

Delivery of GPS outputs not impacted

All

Board

Group Manager P&I

* Where expenditure is likely to fall outside of the GPS range, the Minister's approval will be required to adjust the GPS range

Use of debt facility

Scale

Delegate

Use of the $150 million seasonal variation component

Chief Financial Officer

Use of the $100 million unexpected or unavoidable cost component

Group Manager P&I

Purchase of State Highway property

All property purchased under work category 331.

Conditions

Delegate

Within the funding provisions set by the P&I Group, subject to any delegation set by the Board and provided it meets the conditions  for work category 331

National Manager Network Directions & Performance (HNO)

Procurement decisions 

Decision

Scale (annual procurement spend)

Delegate

Endorse procurement strategies  

Greater than $100 million

Board

Up to $100 million

Group Manager P&I

Up to $50 million and where the Regional Manager P&I considers the strategy to be minor to low risk

Regional Manager P&I

Endorse procurement strategy amendments

   
Greater than $100 million unless the Chief Executive considers the amendments to be low risk

Board

Up to $100 million where the Group Manager P&I considers the amendments to be more than low risk

Chief Executive

Where the Group Manager P&I considers the amendments to be low risk

Group Manager P&I

Up to $30 million and where the Regional Manager P&I considers the amendments to be low risk

Regional Manager P&I

Approve procurement decisions under sections 25 & 26 of LTMA

 
 

All values other than below

 Group Manager P&I

 Less than $30 million and where the Regional Manager P&I considers the decision to be low risk

 Regional Manager P&I

Signing off that conditions of approval have been fulfilled

Scale

Delegate

All values

Regional Manager P&I

Top