IR-01-22-36036
19 December 2022
S.I I
[FYI request #21163 email]
Dear S.I
I refer to your online Official Information Act 1982 (OIA) request of 19 November 2022, in
which you ask for specified information or documents linked in the Search and Surveil ance
chapters of the Police manual released on 7 October 2022 in relation to OIA request IR-
01-22-22523.
The links specified in your request and my responses are detailed as follows.
Please find attached a copy of the relevant material:
•
Unlawful detentions and arrests - three case studies.pdf
Referenced Link – Page 59
https://tenone.police.govt.nz/sites/default/files/documents/bul etin/2018-
05/Unlawful%20detentions%20and%20arrests%20-
%20three%20case%20studies.pdf
•
Financial delegations.pdf
Referenced Link – Page 295 (incorrectly referenced as page 259 in your request)
https://tenone.police.govt.nz/pi/police-manual/finance-and-
procurement/finance/financial-delegations
•
Insurances.pdf
Referenced Link– Page 295 (incorrectly referenced as page 259 in your request)
https://tenone.police.govt.nz/pi/insurance
The fol owing material is withheld pursuant to section 18(d) of the OIA as the information
is publicly available:
•
New Zealand Bil of Rights Act 1990 section 21
Referenced Link – Page 14
http://www.westlaw.co.nz/maf/wlnz/app/document?docguid=I046a1408e02411e0
8eefa443f89988a0&tocDs=AUNZ_NZ_LEGCOMM_TOC&isTocNav=true&startC
hunk=1&endChunk=1
Also available here:
https://www.legislation.govt.nz/act/public/1990/0109/latest/DLM224792.html
Police National Headquarters 180 Molesworth Street. PO Box 3017, Wellington 6140, New Zealand.
Telephone: 04 474 9499. Fax: 04 498 7400. www.police.govt.nz
The following material is also withheld pursuant to section 18(d) of the OIA as the
information is publicly available via a subscription to the Westlaw website.
If you do not have access to the Westlaw website, you can apply directly to the relevant of
court for copies of these records or searc
h Judicial Decisions Online. Court records are not
subject to the OIA.
•
R v Jefferies
Alt sp Jeffries
Court of Appeal, 16/7/1993, Casey J, Cooke P, Gault J, Hardie Boys J, McKay J,
Richardson J, Thomas J
CA243/92, CA244/92, CA322/92, CA323/92
Referenced Link – Page 14
http://www.westlaw.co.nz/maf/wlnz/app/document?docguid=I8cc054189eec11ea
619d462427863b2&tocDs=AUNZ_CASES_TOC&isTocNav=true&startChunk=1&
endChunk=1
•
Round v R
Court of Appeal, 11/11/2020, French J, Mallon J, El is J
CA127/20
Referenced Link – Page 58
https://www.westlaw.co.nz/maf/wlnz/app/document?docguid=Ic9482f41785011eb
9365f7d94ca08b9b&tocDs=AUNZ_CASES_TOC&isTocNav=true&startChunk=1
&endChunk=1
•
R v Falala
High Court, Auckland, 3/7/2013, Asher J
CRI-2011-004-20517
Referenced Link – Page 58
https://www.westlaw.co.nz/maf/wlnz/app/document?docguid=Iad446bb14bd011e
38fa3f057ed117a82&tocDs=AUNZ_CASES_TOC&isTocNav=true&startChunk=1
&endChunk=1
•
Hawkes v R
Court of Appeal, 6/3/2015, Harrison J, Fogarty J, Dobson J
CA735/14
Referenced Link – Page 58
https://www.westlaw.co.nz/maf/wlnz/app/document?docguid=I455679a3cdb411e
4a5c3e0c0015e82d4&tocDs=AUNZ_CASES_TOC&isTocNav=true&startChunk=
1&endChunk=1
•
Van Essen v Attorney-General
High Court, Dunedin, 30/4/2013, Whata J
CIV-2010-412-802, CIV-2010-412-803
Referenced Link – Page 266
https://www.westlaw.co.nz/maf/wlnz/app/document?docguid=I01084370bb7611e
28085de5d98fda335&tocDs=AUNZ_CASES_TOC&isTocNav=true&startChunk=
1&endChunk=1
The fol owing material is withheld pursuant to section 9(2)(h) of the OIA as it is necessary
to maintain legal professional privilege:
•
Police Intranet – Applying Section 8
Referenced Link – Page 58
https://tenone.police.govt.nz/page/applying-section-8-search-and-surveil ance-
act-2012
•
Police Intranet – R v Cameron
Referenced Link – Page 67
https://tenone.police.govt.nz/page/r-v-cameron-2018-nzdc-16448
If you are not satisfied with my response to your request, you have the right to refer the
matter to the Ombudsman.
Craig Scott
Detective Inspector
Police National Headquarters
Unlawful detentions and arrests-three case studies | Ten One - New Zealand Police Int... Page 1 of 4
Unlawful detentions and arrests-three case
studies
Lessons Learnt - Unlawful detentions
and arrests; three case studies
30/05/2018
Section 41 Crimes Act—No power of detention
Situation
Every day, frontline responders face situations in which they find themselves “trapped
between rocks and hard places,”—situations in which they make decisions or take
actions with the best of intentions and for the right reasons, but which may (usually not
deliberately) be contrary to policy or legislation.
One such situation faced staff who attended a residential address at the request of a
DAO. The female resident was threatening to harm herself and after discussing the
situation with the DAO, officers decided to take the woman into custody “for her own
safety”.
The already distressed woman reacted badly and officers used force to subdue her. The
use of (reasonable) force
“to prevent suicide…or…offence…likely to cause immediate
and serious injury” was, as the officers correctly considered, justified by section 41 of
the Crimes Act.
However, having used force to restrain the woman (for her own safety), officers then
detained and transported her to the police station—still believing that section 41 of the
Crimes Act justified them doing so. Unfortunately (and despite the officers acting in
good faith and wanting only to protect the woman), section 41 of the Crimes Act does
not provide any authority to detain or transport a person—only the authority to use
force
“to prevent suicide…or…offence…likely to cause immediate and serious injury”.
Lesson identified
You cannot arrest or detain a person for threatening suicide or self-harm, and threats
of suicide or self-harm does not justify police detaining or transporting a person to
another location.
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30/05/2018
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Officers dealing with a person threatening self-harm or suicide should immediately
seek advice from a DAO. If the DAO believes the person requires urgent assessment
and treatment, they can ask police to detain and transport that person for assessment.
Section 41 of the Mental Health (Compulsory Assessment and Treatment) Act 1992
provides authority for police to detain a person (to assist the DAO). (Section 41 of this
Act is
not to be confused with section 41 of the Crimes Act.)
It is not uncommon for staff to locate people driving vehicles who have been reported
as having threatened suicide. If a person threatening suicide or self-harm is in charge
of a vehicle, it is likely they would be considered to be “incapable of having proper
control” and, pursuant to s 121 of the Land Transport Act 1998, they could be forbidden
to drive. (No power of arrest or detention is available in these circumstances unless the
person subsequently drives after being forbidden.) In these circumstances, too, advice
should be sought from a DAO as to whether the DAO believes the person should be
detained under the Mental Health (Compulsory Assessment and Treatment) Act 1992.
However much we might want to protect suicidal people from themselves, we must
have a lawful authority to arrest, detain or transport them; there will usually be a way
to deal with them effectively, but section 41 of the Crimes Act does
not provide the
authority for anything other than the use of reasonable force to stop suicide or self-
harm.
Section 14 Search and Surveillance Act—No power of
detention
Situation
Here, officers first exercised their power under section 14 of the Search and
Surveillance Act to enter a property, and then used force (section 41 Crimes Act) to
prevent suicide. Subsequently they detained and transported a man to the custody hub
with the intention of having Mental Health assess him. In doing so, they believed they
were justified in doing so under section 14(1)(b) of the Search and Surveillance Act
(“take any action that he or she has reasonable grounds to believe is necessary to
prevent the offending from being committed or continuing, or to avert the
emergency”).
Lesson identified
In the same way that section 41 of the Crimes Act does not allow for detention and
transport of a subject, section 14 of the Search and Surveillance Act also does not allow
for detention and transport of a subject. These two sections facilitate immediate,
emergency action by police at (or immediately proximate to) the time of the offence or
intended act/s to which they apply.
https://tenone.police.govt.nz/news/unlawful-detentions-and-arrests-three-case-studies
30/05/2018
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Death in custody after unlawful arrest for breach of
the peace
Situation
An I-car was dispatched to assist ambulance at a residence where a man in critical
condition was declining medical assistance. When officers arrived, ambulance staff told
them that the man was very ill and would die if he did not go to hospital.
The officers asked the man’s family members to persuade him to go but they could not.
After consulting the shift senior, the officers decided to arrest the man for breach of the
peace—in the belief that by placing the man in police custody they would be able to
compel him to cooperate with the ambulance staff’s attempts to take him to hospital;
the family supported this decision, as time was critical.
Officers arrested the man and gave him his Bill of Rights advice. As he was being
moved from his bed to the ambulance, he collapsed. Ambulance officers tried to
resuscitate him but after 20 minutes of CPR on the lounge floor, the man was
pronounced dead.
Lessons identified
Preserving life
Although well-intentioned, the officers’ belief that they had a “duty” to preserve life was
not correct—not at any cost, at least. There is an expectation of police officers to protect
life and property, but this can never be at the expense of a person’s rights.
The Policing Act 2008 describes the functions of Police as follows:
1. keeping the peace
2. maintaining public safety
3. law enforcement
4. crime prevention
5. community support and reassurance
6. national security
7. participation in policing activities outside New Zealand
8. emergency management.
Police officers’ natural desire to protect life definitely doesn’t override the right of a
person to decline any medical treatment—even if that person’s choice might result in
their death. (Section 11, Bill of Rights Act 1990:
“Everyone has the right to refuse to
undergo any medical treatment.”)
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30/05/2018
Unlawful detentions and arrests-three case studies | Ten One - New Zealand Police Int... Page 4 of 4
Officers certainly have no greater “duty” to preserve life than doctors, who, despite
their desire to save lives and help people, must also accept a patient’s right to decline
medical treatment. (One of the four basic moral principles in medical ethics is “
Respect
for autonomy – the patient has the right to refuse or choose their treatment.”)
It should be noted, also, that among its many commitments, the Hippocratic Oath
sworn by doctors includes the phrase:
“Above all, I must not play at God.”
Breach of the peace
Officers had no lawful authority to arrest the man, who had not been violent or
threatened violence and was not breaching the peace.
Here, too, although acting with the best of intent, the officers’ actions were unlawful
and breached the man’s rights. Furthermore, when the man subsequently died soon
after his “arrest” (even though his death was not a consequence of the officers’ actions),
his death became a “death in custody” with all its attendant investigations, reviews, and
external scrutiny.
Comment
Police officers are frequently expected to make difficult “judgement calls” in stressful
circumstances with limited time available to them.
However, even if acting with the best of intent, police may not breach the law or a
person’s rights, and however much they might want to help people, officers must also
know the extent of their lawful authority to act.
Topics:
Lessons Learnt
District:
National
https://tenone.police.govt.nz/news/unlawful-detentions-and-arrests-three-case-studies
30/05/2018
Financial delegations
Table of Contents
Table of Contents
2
Policy statement and principles
3
What
3
Why
3
How
3
Definitions
3
Financial delegation limits
5
Provision of a delegation of financial authority to a manager and substitute
6
Roles and responsibilities
7
Financial delegation holders
7
Financial Services Group
7
Responsibility of all employees in relation to financial approvals
7
Non‐compliance
8
What constitutes a breach of delegations
8
Consequences of non‐compliance
8
Emergency expenditure
9
Custom Fleet and SurePlan
10
Pacific Architects and Engineers (PAE)
11
Changes to the cost or scope of an item/project
12
Contract approval and signing
13
Call off contracts
13
Sensitive expenditure
14
Advertising expenditure
15
Process of providing letter of delegated financial authority
16
Absences of the delegation holder
17
Planned absence
17
Unplanned absence
17
Firearms Buyback Non‐Departmental Appropriation Only
18
Appendix 1 ‐ Management Levels with Financial Delegation
19
Police Executive
19
Assistant Commissioners
19
Chief Financial Officer
19
District Commanders
19
Directors
19
Cost Centre Managers
19
Appendix 2 ‐ Maximum Financial Delegation Limits for Operating Expenditure & Revenue
20
Appendix 3 ‐ DFA limits for Capital Expenditure and Sale of Assets
23
Appendix 4 ‐ DFA limits for Contract Signing
25
Appendix 5 ‐ DFA limits for Write Down, Write Off, Capital Charge, Payroll and Taxation
27
Appendix 6 ‐ DFA limits set by Cabinet Circulars
28
Appendix 7 ‐ Indicative DFA forms for completion
30
A. New Delegation of Financial Authority to a Member of New Zealand Police
30
B. Temporary Substitute for Delegation of Financial Authority to a Member of New Zealand Police
32
C. Covert Operations DFA
34
D. Covert Operations (Non‐Informer) payments
35
Appendix 8 ‐ DFA for Firearms Buy‐back process
38
Delegated Financial Authority for the Firearms Buy‐back Process
38
Financial delegations
Policy statement and principles
What
Under section
34 of the Public Finance Act, the Commissioner of Police is responsible to the Minister of Police for the financial management and
financial performance of Police.
The financial delegations system is a key component of the financial management framework used by Police. The financial delegation system
provides clarity concerning:
‑ the management levels within Police that have been provided with financial authority to commit a financial decision; and
‑ the maximum financial limits that have been provided for each financial delegation category to each management level within Police.
As such the financial delegation system enables the identification of accountability for financial commitment decision making within Police.
This document should also be read in conjunction with the following Police policies:
‑
Internal Controls
‑
Sensitive Expenditure
‑
Police Procurement
‑
Banking, Currency and Card Policy.
Why
There must be adherence to the principles of public accountability and compliance within legislation such as the Public Finance Act 1989 and the
Policing Act 2008. The maximum financial delegation limits are defined by Cabinet and are set out in CO (18)2 and CO (19)6.
How
‑ The Commissioner retains full control over the delegated authority and may revoke that authority in writing as the situation demands.
‑ Financial delegations are limited to the approved budget of each cost centre of the delegation holder where the budget is lower than the
maximum delegation limits.
‑ People who are not Police employees (e.g. contractors and consultants engaged on a contract for services) cannot exercise delegations.
‑ Specific financial authorisation must be obtained from the authorised financial delegation holder before proceeding with each item, work
or project included in the annual budget.
‑ No financial commitments or expenses must be incurred, project commenced, settlement offered, or an order placed unless financial
authority has been provided.
Definitions
This table provides definitions of terms relevant to this chapter.
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Financial delegations
Term
Definition
Contract
The original whole of life contract value including the right of renewal, inflation and service deliverable variations is signed by the
appropriate DFA holder. This means that variations up to the whole of life contractual value have in effect already been approved.
The result of this pre approval is that subsequent variations can be therefore signed off by the DFA holder with the appropriate
value for the variation.
However, if the variation takes the contract value over the original whole of life cost already signed, then at this point the revised
contract value will need to be signed off by the manager with the appropriate whole of life cost DFA.
Evergreen ICT typically operate under an evergreen type of contract that means that the agreement is automatically rolled over at the end of
contracts each completion or maturity period. When identifying the appropriate DFA the current value of the completion or maturity period
should be taken into account and not the full financial value from the original start date of the Evergreen contract.
Master
The master agreement identifies the contractual relationship in that it sets the scene for how the parties will work together for all
Agreement the statements of work under that agreement. The DFA must be appropriate for the value of the statement of work being signed
under the master agreement, including all variations to a single statement of work
Call off
Contract where the price and other terms are agreed for an item, e.g. for vehicles, but there is no commitment made in the contract
contract
to purchase a specified quantity of the items.
Capital
The capital charge represents the opportunity cost of money which the government can expect to earn in alternative investments
Charge
entailing similar risk. It can be likened to the paying of interest on a bank loan for use of the money.
Capital
Also known as CAPEX, the purchase of an item of property, plant or equipment, or the subsequent development or improvement of
Expenditurean existing asset at a cost exceeding the minimum capitalisation level.
Financial
Authority to incur expenditure to a specified limit within the financial budget allocated.
Delegation
Operating Also known as OPEX, is expenditure that is incurred in the course of the day to day Policing operations.
expenditure
Substitute An employee who acts temporarily for a permanent position holder in exercising the position holder’s delegation of financial
authority. A permanent position holder is accountable for arranging a suitably competent person to act as their substitute whilst
they are temporarily absent from the position. Sub‐delegation of financial delegated authority is a transfer of authority but not of
responsibility, hence the onus is on the staff member to ensure that sub‐delegation is made with due diligence.
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Financial delegations
Financial delegation limits
Cabinet has defined the maximum financial delegation limits that apply to government departments for expenditure and have defined
maximum delegation limits for a small number of sensitive expenditure categories. Accordingly these maximum delegation limits also apply to
Police. The maximum financial delegation limits are set out in Cabinet Circulars CO (18)2 and CO (19)6.
The Commissioner of Police has taken these maximum financial delegation limits provided by Cabinet and determined the maximum financial
delegation limits for various expenditure and other financial categories that are to apply for each management level within Police.
Financial delegations are limited to the approved budget of each cost centre of the delegation holder where the budget is lower than the
maximum delegation limits.
Any changes to the maximum limits can only be approved by the Commissioner of Police. Any delegation created by an Acting Commissioner of
Police must be countersigned by the DCE Corporate Operations and affirmed by the Commissioner of Police upon return to active duty as
Commissioner.
The Commissioner retains full control over the delegated authority and may revoke that authority in writing as the situation demands. Unless
revoked, delegations will remain effective for as long as the employee holds the position for which the financial delegation has been granted.
Any revocations must be in writing.
People who are not Police employees (e.g. contractors and consultants engaged on a contract for services) cannot exercise delegations. These
approvals must be referred up to the next level with a recommendation for approval.
The financial delegation limit amounts set out in Appendices 2 to 6 of this chapter are expressed on a GST exclusive basis. This approach enables
the matching of the approval amount with the annual or project budgets that are also expressed on a GST exclusive basis.
Appendix Description
1
Lists the position titles for each financial delegation holder
2
Gives the maximum financial delegation limits for operating expenditure and revenue for each management level
3
Gives the maximum financial delegation limits for capital expenditure and the sale of assets for each management level
4
Gives the maximum financial delegation limits for contract signing for each management level
5
Gives the maximum financial delegation limits for write down, write off, capital charge, payroll and taxation expenditure
6
Gives the maximum financial delegation limits set by Cabinet for sensitive expenditure categories for the Commissioner of Police, the
Minister of Police and Cabinet
7
Indicative DFA forms actuals available from the
Finance Forms intranet
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Financial delegations
Provision of a delegation of financial authority to a manager and substitute
The management levels of Director and above that must be provided with a delegation of financial authority within Police are listed in Appendix
1 of this policy.
Where an employee is appointed to, or holds, on a permanent basis, a position listed withi
n Appendix 1, they must be provided with their
delegation of financial authority letter. The remaining cost centre managers who require a delegation of financial authority, and are not
specifically listed in
Appendix 1, must also be provided with a delegation of financial authority letter.
As the letter covers both the delegated financial authority holder and their substitute, a two up level of authorisation above the substitute is
required. This is based on the provision that the substitute is a direct report of the delegated holder. The approval of DFA should always be one
up from the named delegated position holder. No financial delegation exists for any employee of New Zealand Police until the delegation letter is
fully approved.
The letter providing a delegation of financial authority is located on
Finance forms the letter is titled “Delegation of Financial Authority to New
Zealand Police employee.”
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Financial delegations
Roles and responsibilities
Financial delegation holders
Each financial delegation holder must ensure that:
‑ they only exercise financial delegations for cost centres with budgets in their control
‑ they keep strictly within the maximum financial delegation limits for their respective management level; when exercising contract signing
delegations these are performed in line with
Police’s Procurement Policy; there is not:
‑ any misuse of funds
‑ any disaggregation of expenditure to avoid referring an approval decision to a more senior financial delegation holder for financial
approval
‑ the approval of expenditure above their financial delegation limits
‑ the approval of an asset sale where the book value of the asset is above their financial delegation limit
‑ any approval of their own personal expenditure (e.g. travel claims or expenses) any expenditure which has a degree of personal
benefit. The DCE Corporate Operations has the authority to approve any personal expenditure relating to the Commissioner
‑ expenditure incurred under a financial approval is controlled such that the final expenditure does not exceed the amount approved. If
expenditure is to exceed the original financial approval amount, the holder must provide written advice to the original approver as soon as
this becomes apparent
‑ they comply fully with the requirements set out in the approval letter (
Appendix 7) refers) which provides the delegation of financial
authority to a position holder.
Any decision made under delegated authority must be exercised in accordance with the relevant Police policies, contracts, legislation and legal
authority and where appropriate obtain legal advice in exercising the authority.
Financial Services Group
If the maximum financial delegation limits are changed by the Commissioner of Police, the Financial Services Group will arrange for the changes
to be communicated to each financial delegation holder and their substitute(s).
The Financial Services Group has ownership of the content and administration of the financial delegations documents and is responsible for
reviewing the details regularly, (six monthly as a minimum) and updating the document for any change in legislation, policy or organisational
practices.
A copy of all signed letters must be retained by the Corporate Finance Team as a record of all issued delegations of financial authority.
Responsibility of all employees in relation to financial approvals
All employees (whether they are financial delegation holders or otherwise), must ensure that there is not any unapproved:
‑ change to the agreed defined scope of work for an item of work or project after a financial amount has been approved for the item of work
or project; or
‑ charging of capital expenditure to operating expenditure or vice versa in order to avoid exceeding either a financial approval amount or a
budget amount.
All employees must ensure that they do not incur expenditure without prior approval of a delegated financial authority holder.
7/38
Financial delegations
Non‐compliance
What constitutes a breach of delegations
Any breach of a delegation may be viewed as misconduct or serious misconduct. Breaches include:
‑ exercising financial delegations for cost centres outside of their span of control
‑ exceeding the maximum financial delegation limits for their respective management level
‑ any misuse of funds
‑ any disaggregation of expenditure to avoid referring an approval decision to a more senior financial delegation holder for financial
approval
‑ the approval of expenditure above a holder’s financial delegation limits
‑ the approval of an asset sale for an amount above a holder’s financial delegation limit
‑ any approval of their own personal expenditure (e.g. travel claims or expenses) or any expenditure which has a degree of personal benefit
‑ any unapproved change to the agreed defined scope of work for an item of work or project after a financial amount has been approved for
the item of work or project
‑ any unapproved charging of capital expenditure to operating expenditure or vice versa in order to avoid exceeding either a financial
approval amount.
Consequences of non‐compliance
Any breach of policy will be subject to review by the DCE: Corporate Operations, any serious breaches may lead to disciplinary action against an
employee whether they are a permanent position holder holding a delegation of financial authority, acting as a temporary substitute, or not
subject to a formal delegation of financial authority.
Where an allegation of a breach of a financial delegation limit occurs, consideration must be given as to whether the delegation of financial
authority should be withdrawn from the affected position holder.
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Financial delegations
Emergency expenditure
All Police employees have a delegation of financial authority to financially commit Police in an emergency situation requiring immediate action
without referral to the financial delegation holder. The emergency situation must be one in which there is a risk of:
‑ loss of life or injury to persons; or
‑ disaster,
which is either imminent or occurring and it is believed on reasonable grounds the expenditure is necessary to mitigate the situation. All
documentation on the expenditure must be kept and retrospective financial approval must be obtained from the appropriate financial
delegation holder at the earliest opportunity thereafter.
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Financial delegations
Custom Fleet and SurePlan
Custom Fleet (NZ) Ltd and SurePlan are the current service providers for vehicle maintenance, repairs, relicensing and road user charges.
Custom Fleet (NZ) Ltd and SurePlan are able to approve expenditure on behalf of the Police if the repair or servicing cost is:
‑ safety related; or
‑ under $1,000.
All other repairs and servicing must be approved by Police. These approvals are subject to the standard delegated authority limits as detailed in
Appendix 2.
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Financial delegations
Pacific Architects and Engineers (PAE)
PAE are the current service providers for property repairs and maintenance.
PAE are able to approve expenditure on behalf of Police up to and including an amount of $500.
All other property repairs and maintenance must be approved by Police. These approvals are subject to the standard delegated authority limits
as detailed in
Appendix 2.
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Financial delegations
Changes to the cost or scope of an item/project
Where a financial delegation holder becomes aware that the estimate of expenditure for an item or a project is likely to exceed the financial
authority held for that purpose then the financial delegation holder must:
‑ halt continuation of the expenditure, if possible, until appropriate re‐authorisation is sought and received
‑ advise the original approver and confirm that advice in writing at the earliest opportunity (where the original approver is either Cabinet or
the Minister of Police, the Commissioner of Police must be advised and must arrange the communication with these approvers)
‑ assess alternatives and related estimated costs
‑ prepare a revised case, or revised business case if applicable, for a new financial authority for the revised total estimated cost
‑ submit the revised case or revised business case to the appropriate financial delegation holder for approval of the revised financial
authority amount
‑ control the commitment of expenditure, so that over expenditure against the original financial authority does not occur unless the revised
financial authority has been approved by the appropriate financial delegation holder.
Where an item of work or a project has received a financial authority for an agreed defined scope of work, the financial delegation holder
receiving the financial authority does not have any financial authority to change that scope of work. If a change to the scope is required, the
financial delegation holder must seek a new financial authority from the correct financial delegation holder for the revised total estimated cost
taking into account the proposed change to the scope of work. The financial delegation holder must not commit Police financially to the
changed scope of work before the revised financial authority is obtained. The latter applies even where the change in scope does not lead to an
increase in cost.
Proceeding with a change to an agreed defined scope of work after a financial authority has been provided for an item of work or project will be
viewed as serious misconduct invoking disciplinary action.
A change of scope is where the key deliverables or benefits (that have been promised in a business case or equivalent for a given financial
approval amount) are changed, reduced or increased.
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Financial delegations
Contract approval and signing
All contracts entered into must comply with the
Police Procurement Policy. General contract signing rules are:
‑ all contracts entered into must be legally and commercially sound and not expose Police to undue financial or political risk;
‑ the contract value must be within baseline levels if affecting future years and not overspend the current year budget; and
‑ contract variations must go back to the original delegated authority for contract signing.
Where the contract variations take the total contract amount above the approval threshold of the original delegation holder, approval must be
sought from the next level approver.
Where a service level agreement is required to be set up with a contract the person who has the contract signing authority also has the authority
to approve and sign the service level agreement.
Call off contracts
For call off contracts the financial delegation limit that applies is the estimated maximum annual expenditure commitment under the contract.
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Financial delegations
Sensitive expenditure
Sensitive expenditure is expenditure by a public entity that could be seen as giving some private benefit to an individual staff member that is
additional to the business benefit to the entity of the expenditure. Travel, accommodation, and hospitality spending are examples of areas
where problems often arise. It also includes expenditure by a public entity that could be considered unusual for the entity’s purpose and/or
functions.
There is heightened public sensitivity when individuals in the public sector are perceived to benefit personally, or do directly benefit, from
sensitive expenditure incurred during the conduct of a public entity’s business. The most fundamental fact applicable to all expenditure by a
public entity is that the entity is spending public money. Therefore, the expenditure should be subject to the standards of probity and financial
prudence that are to be expected of a public entity and able to withstand Parliamentary and public scrutiny.
Types of expenditure covered includes:
‑ personal gifts including flowers
‑ staff functions including Christmas parties, staff farewells, retirements
‑ donations
‑ koha
‑ alcohol.
For more information refer to the Sensitive expenditure policy and guidelines published on the
Office of the Auditor General website covering
sensitive expenditure.
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Financial delegations
Advertising expenditure
Advertising expenditure refers to any process for which payment is made from public funds for the purpose of publicising any policy, product,
service, or activity provided at public expense by the government.
Government advertising should deal with matters in which the government has direct responsibility. An example of the objective of the
advertising may be to encourage the public to adopt certain kinds of social behaviour generally regarded as being in the public interest (e.g. road
safety advertising).
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Financial delegations
Process of providing letter of delegated financial authority
This table details the process that must be followed in providing the letter of delegated financial authority to a manager.
StageDescription
1
Corporate Operations Group notify Corporate Finance of any new DFA Position Holder appointments.
2
The district Business Advisors must prepare the letter on official letterhead for each new permanent position holder that is authorised to
have a delegation of financial authority. Missing information fields in the letter must be completed but the text of the letter must not be
changed.
3
The district Business Advisors must provide the DFA holder with a link to the policy.
4
The Business Advisors must check with the position holder whether there is any aspect of the letter or policy which requires clarification.
5
The position holder must:
‑ nominate one or more substitutes on the letter to ensure that the substitute is able to act for the financial delegation holder and
‑ indicate the priority order in which the substitutes must be used where more than one substitute is nominated, and
‑ ask each substitute to sign the letter in the space provided indicating that they understand, agree to and accept the terms set out
in the letter.
Note: In order for the substitution to be activated with SAP the “Activate Substitute Form”, available on finance forms, must be completed
for each period of substitution.
6
The position holder must sign the letter in the space provided indicating that they understand, agree to and accept the terms set out in
the letter.
7
All completed copies of the forms and the signed letter must be forwarded to the Corporate Finance Team.
8
The Corporate Finance Team must:
‑ check the details provided including it has been signed by the appropriate designations
‑ update their delegation of financial authority records
‑ retain a copy of all letters signed by the appropriate authority as a record of all issued delegations of financial authority
‑ electronically store DFA record in the S:\Finance\3.19 Delegated Financial Authority Documentation folder.
9
Where, due to staff movements, there is a need to change a substitute, a new delegation of financial authority letter is to be completed
and forwarded to the Corporate Finance Team.
10
Prior to a DFA holder going on leave the activate substitute form must be completed. This is to ensure the workflow authorisation process
continues in the absence for the DFA holder.
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Financial delegations
Absences of the delegation holder
Planned absence
Prior to any planned absence the financial delegation holder must complete the activate substitution form. This will allow the workflow rules to
be changed in the financial accounting systems.
Unplanned absence
If there is an unplanned absence, the completed activate substitution form can be authorised by the higher node financial delegation holder.
If there is a situation:
‑ where both the financial delegation holder and the substitute(s) for a cost centre(s) are absent, and
‑ an urgent financial commitment must be made, then the District Commander, or another member of the Executive, may act as a
substitute to action the approval of the financial commitment on behalf of the absent persons.
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Financial delegations
Firearms Buyback Non‐Departmental Appropriation Only
Specific Delegated financial authority is provided for the Firearms Buyback Non‐Departmental appropriation. The following regulations apply to
this appropriation.
‑ Payments must meet the eligibility criteria under the firearms buy‐back and
‑ Payments that follow the processes prescribed by the Amnesty and Buy‐back work‐stream including the appropriate segregation of
duties.
‑ DFA provided to Firearms Assessors cannot be sub‐delegated to any other person.
Approvals are subject the DFA limits detailed in
Appendix 8.
Note: DFA will not apply to any expenditure incurred for:
‑ the implementation of the firearms buy‐back scheme;
‑ “Bill 2” of the Modernisation Programme for firearms; or
‑ any other operating expenditure related to any other activity.
18/38
Financial delegations
Appendix 1 ‐ Management Levels with Financial Delegation
Financial Delegations Policy
Management Levels with Financial Delegation
Police Executive
‑ Commissioner
‑ All Deputy Commissioners and Deputy Chief Executives
Assistant Commissioners
To include all positions with the title:
‑ Assistant Commissioner and
‑ Executive Directors
‑ CIO position (Appendix 2 only)
‑ Director of Property (Appendix 2 only
‑ NGCC Lead Entity Director (Appendix 2 only)
Chief Financial Officer
District Commanders
To include all positions with the title:
‑ District Commander and
‑ Deputy CIO (Appendix 2 only)
‑ Director Supply Chain Management (Appendix 2 only)
Directors
To include all positions with the title:
‑ Director
‑ Fleet Manager (Appendix 2 only)
Cost Centre Managers
‑ All Cost Centre Managers
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Financial delegations
Appendix 2 ‐ Maximum Financial Delegation Limits for Operating Expenditure &
Revenue
This Appendix summarises the financial delegations for position holders within Police.
‑
You may only provide financial approval if the amount is within your limit and can be accommodated within an approved budget.
‑
All financial delegation amounts are stated on a GST exclusive basis, except where GST is either not applicable or stated otherwise.
‑
The financial delegation amounts are on a per order basis.
FINANCIAL
CommissionerDeputy
Chief
Assistant
District
Directors and Cost Centre All other
DELEGATION
of Police
CommissionerFinancial Commissioners andCommanders Fleet Manager Managers
employees
CATEGORY
and Deputy
Officer
Director of
(DC), Deputy
position holder
Chief
(CFO)
Property /NGCC
CIO position
Executive (DC
lead Entity Director holder, Director
and DCE)
position holders
Supply Chain
Management
and Director TM
Deployment
Routine
No limit
$2,000,000
$1,000,000$250,000 (Property/ $100,000
$25,000
$10,000
$50
operating
NGCC lead entity
expenditure
director post holder
(includes
and AC)
personnel
expenditure)
Exceptions:
a) Cabinet or
Legislative
Directives
Advertising/
$150,000
$25,000
$10,000
$10,000 (AC’s only) $10,000 (DCs
Nil
Nil
Nil
Publicity expenses
only)
note 1 CO (18) 02
Compensation
$150,000
$50,000
$10,000
$10,000 (AC’s only) $10,000 (DCs
$10,000 Director Nil
Nil
note 2 CO (18) 02
only)
Legal only
Ex gratia
$30,000
$20,000
$10,000
$10,000 (AC’s only) $10,000 (DCs
$10,000 Director $500 Area
Nil
payments note 3
only)
Legal only
Commander
CO (18) 02
only
Compensation to Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
owners of firearms
note 4 s63 Arms
Act 1983 note 4
Operating leases Whole of Life $2,000,000
Nil
Nil
Nil
$25,000 Director Nil
Nil
CO (19) 06
Cost5
DC/DCE:
Property
(excluding those <$25,000,000 Corporate
with a high‐risk
(ICR rating
Operations
profile as per SSC 2019)
Gateway risk
profiling
methodology)note
5
20/38
Financial delegations
b) Sensitive Areas
DCE Corporate
Operations
ability to
approve
Sensitive
Expenditure
incurred by
Commissioner
Overseas travel & No limit
$25,000
$10,000
$10,000 (AC only)
Nil
Nil
Nil
Nil
accommodation
note 6
Compassionate
No limit
$25,000 all
$10,000
$10,000 (AC only)
Nil
Nil
Nil
Nil
grants
expect $40,000
DC/DCE
$20,000 AC/ED
Corporate
People Operations
Operations
only
Covert Operations No limit
$2,000,000
$200,000 $100,000 (AC only) $100,000(DCs
$25,000 Director $10,000
$2,000
(non‐informer
only)
Criminal
'nominated'
payments)
Investigations
covert
only
operations
employees9
Informer
No limit
$25,000
$25,000
$15,000 (AC only)
$10,000 (D Cs
$10,000 Director $2,000
$500
payments
only)
Criminal
District
'nominated'
Investigations
Managers
constabulary
only
Criminal
employees
Investigations
only
$5,000
National CHIS
Manager
(NCIG) only
Koha Note 7
No limit
No limit
No limit (AC only)
$500 (DCs only) $500
$500
Donations
No limit
$25,000
$25,000
$10,000 (AC only)
$10,000 (D Cs
$250 (Directors $250
Nil
only)
only)
Payments in Lieu No limit
$10,000 All
$10,000
$10,000 AC only
$10,000 (D Cs
$5,000 (Directors Nil
Nil
of notice
except
only)
only)
$250,000 AC/ED
$500,000
People Operations
DC/DCE
Corporate
Operations
only
Rewards (excludes No limit
$25,000 DC:
Nil
Nil
Nil
Nil
Nil
Nil
informer
Ops only
payments)
Revenue:
21/38
Financial delegations
Leasing of Police No limit
$2,000,000
$1,000,000$100,000 (AC only) $100,000 (D Cs $25,000 Director Nil
Nil
owned houses to
only)
Property only
staff and sub‐
leasing of either
surplus Police
property or
property about to
be disposed of
note 7
Notes:
1. Advertising expenses must comply with the guidelines for government advertising set out in Appendix B of the Cabinet Manual. In determining
approval thresholds all associated costs (sub contractor’s, multiple payments relating to the overall transaction must be included.
2. Expenses for compensation or damages for settlement of claims should be endorsed either by the Crown Law Office or a court judgement.
Claims under $75,000 need not be referred to the Crown Law Office if the department’s chief legal advisor has certified the payment, or should
otherwise be endorsed by the Crown Law Office that such claims are in order.
3. Ex gratia expenses are those made without the giver recognising any liability or legal obligation; the payment is made out of goodwill or a
sense or moral obligation.
4. The Minister of Police must authorise all compensation payments in relation to orders made under the Arms Act 1983.
5. For a definition of Whole of Life Costs, as well as further explanations on the delegation limits for leases, please refer to appendix 6.
6. Overseas travel and accommodation includes travel to Australia.
7. As per the Sensitive Expenditure Policy no koha is expected to exceed $200. In exceptional circumstances up to $500 is allowed with additional
justification.
8. NZ Police cannot enter into finance leases in its own right.
Additional notes
a. District Commanders and the Director: Criminal Investigations may delegate financial authority for covert operations expenditure (other than
informer payments) to an appropriate employee on the recommendation of the District Crime Manager or Manager Covert Operations Group
respectively. The delegated employee is not permitted to sub‐delegate their financial authority to approve covert operational expenses and no
'substitute' will be provided for in their letter of delegation for such expenses.
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Financial delegations
Appendix 3 ‐ DFA limits for Capital Expenditure and Sale of Assets
You may only provide financial approval if the amount is within your limit and can be accommodated within an approved budget.
All financial delegation amounts are stated on a GST exclusive basis, except where GST is either not applicable or stated otherwise.
FINANCIAL
Commissioner of Deputy
Chief
Assistant
District
Directors
Cost
All other
DELEGATION
Police
Commissioner and Financial Commissioners/ Commanders
Centre
employees
CATEGORY
Deputy Chief
Officer
Managers
Executive (DC and (CFO)
Executive
DCE)
Directors
Major Capital Works
Expenditure: note 1
Acquisition of land
WOLC
$2,000,000 DC:
Nil
Nil
Nil
Nil
Nil
Nil
and buildings
(<$25,000,000
Operations only
(provided LINZ
(with co‐signature (with co‐signature
approval
of DC/DCE
of DC/DCE
obtained) note 2
Corporate
Corporate
Operations)
Operations
All property currently WOLC
$2,000,000 DC:
Nil
Nil
Nil
Nil
Nil
Nil
held by Police or new <$25,000,000 (with Operations only
buildings on
co‐signature of
(with co‐signature
currently owned land DC/DCE Corporate of DC/DCE
Operations)
Corporate
Operations
Other major capital WOLC
$2,000,000 DC:
Nil
Nil
Nil
Nil
Nil
Nil
expenditure and
<$25,000,000 (with Operations only
vehicles
co‐signature of
(with co‐signature
DC/DCE Corporate of DC/DCE
Operations)
Corporate
Operations
Minor Capital Works
Expenditure: note 3
All property currently $200,000
$200,000
$100,000 $25,000
$25,000
$25,000 Director Nil
Nil
held by Police
Property only
Vehicles capital
$200,000
$200,000
$100,000 Nil
Nil
$60,000 Director Nil
Nil
expenditure
of Supply Chain
Management
Other minor capital $200,000
$200,000
$100,000 $25,000
$25,000
$25,000
Nil
Nil
expenditure
Finance Leases:
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Sale of Assets
(amounts are the
net book value of
each asset sold):
23/38
Financial delegations
Property (provided
WOLC
$2,000,000 DC:
Nil
Nil
Nil
Nil
Nil
Nil
LINZ approval
<$25,000,000 (with Operations only
obtained) note 2
co‐signature of
(with co‐signature
DC/DCE Corporate of DC/DCE
Operations)
Corporate
Operations
Able to
Yes
Yes
Yes
No
No
No
No
No
approve "declare
surplus to
requirements."
Vehicles
<$25,000,000
$2,000,000
$1,000,000Nil
Nil
Nil
Nil
Nil
All other fixed assets <$25,000,000
$2,000,000
$1,000,000Nil
Nil
Nil
Nil
Nil
1. Major capital projects are those with total expenditure greater than $200,000
2. LINZ approval is required as the Commissioner of Crown lands (CCL) is the statutory owner and administrator of Crown land held under the
Land Act 1948 and exercises statutory powers and functions over such land.
3. Minor capital projects are those with total expenditure less than $200,000
24/38
Financial delegations
Appendix 4 ‐ DFA limits for Contract Signing
You may only sign a contract if you have financial approval for the decision being made; for definitions of all types of contract and DFA
rules surrounding each see the definitions section in the body of the policy.
All financial delegation amounts are stated on a GST exclusive basis, except where GST is either not applicable or stated otherwise.
All contract signing delegations must be exercised in line with the requirements set out in CO (18) 2 & CO (19) 6, which are summarised in
Appendix 6. WOLC includes the total value of operating and capital costs.
CONTRACT SIGNING CommissionerDeputy
Chief
Assistant
District
Directors
Cost
All other
CATEGORY
of Police
Commissioner Financial CommissionersCommanders
Centre
employees
and Deputy
Officer
and Executive
Managers
Chief Executive (CFO)
Directors (AC
(DC and DCE)
and ED)
Routine operating
expenditure:
Local Procurement
No limit
$7,000,000
$2,000,000 $100,000
$100,000
$25,000
$10,000
Nil
Contracts
National Procurement No limit
$7,000,000
$2,000,000 Nil
Nil
$1,000,000 Director Nil
Nil
Contracts
Property only
Property operating
Whole of Life $7,000,000
$2,000,000 $100,000 for AC Nil
$25,000 Director
Nil
Nil
leases
Cost
Service only
Property only
<$25,000,000 DC: Operations
only (with co‐
$100,000 Director
signature of
Operations
DC/DCE
and Property (radio
Corporate
sites only)
Operations
Capital expenditure:
$25,000 Director
Property only
Property currently held No limit
$7,000,000
$2,000,000 $25,000
$25,000
Nil
Nil
by Police
Acquisition of land &
No limit
$7,000,000
$2,000,000 Nil
Nil
Nil
Nil
Nil
buildings (provided
sale and purchases
agreement has
received prior approval
from LINZ)note 1
Vehicles
No limit
$7,000,000
$2,000,000 Nil
Nil
Nil
Nil
Nil
Information
No limit
$7,000,000
$2,000,000 Nil
Nil
$100,000 Director Nil
Nil
technology (via the
Property and Nat.
national information
Mgr. Applications &
technology
Info Development
procurement
only
contracts)
Sale of assets:
25/38
Financial delegations
Property (provided sale No limit
$7,000,000
$2,000,000 Nil
Nil
Nil
Nil
Nil
and purchase
agreement has
received prior approval
from LINZ) note 1
Vehicles
No limit
$7,000,000
$2,000,000 Nil
Nil
Nil
Nil
Nil
All other contract
Same as their Same as their
Same as
Same as their Same as their Same as their
Same as
Nil
categories not
routine
routine
their
routine
routine
routine operating their
mentioned above
operating
operating
routine
operating
operating
expenditure limit routine
expenditure
expenditure
operating expenditure
expenditure
operating
limit
limit
expenditure limit
limit
expenditure
limit
limit
Notes:
1. LINZ approval is required as the Commissioner of Crown Lands (CCL) is the statutory owner and administrator of Crown land held under the
Land Act 1948 (Land Act), and exercises statutory powers and functions over such land.
26/38
Financial delegations
Appendix 5 ‐ DFA limits for Write Down, Write Off, Capital Charge, Payroll and
Taxation
Maximum Financial Delegation Limits for WRITE DOWN, WRITE OFF, CAPITAL CHARGE, PAYROLL AND TAXATION EXPENDITURE
You may only provide financial approval if the amount is within your limit and can be accommodated within an approved budget.
All financial delegation amounts are stated on a GST exclusive basis, except where GST is either not applicable or stated otherwise.
FINANCIAL DELEGATION CommissionerDeputy
CFO Financial Assistant
District
DirectorsCost
All other
CATEGORY
of Police
Commissioner and Officer
Commissioners/ Commanders
Centre
employees
Deputy Chief
Executive
Managers
Executive (DC and
Directors
DCE)
Write down / off of
assets:
Write down of current
No limit note 1 $500,000
$500,000
$25,000 Director Nil
Nil
Nil
Nil
assets and fixed assets
Financial
Services only
Write off of current assetsNo limit
$500,000
$50,000
$25,000 Director Nil
Nil
Nil
Nil
and fixed assets
Financial
Services only
Capital charge
No limit
Nil
No limit
$25,000 Director Nil
Nil
Nil
Nil
Financial
Services only
Payroll, PAYE and
No limit
Nil
No limit
No limit AC/ED
Nil
Nil
No Limit Nil
payroll related liability
People
Payroll
payments
Operations
and
Benefits
Manager
only
GST, FBT, and any
No limit
Nil
No limit for GST Nil
Nil
Nil
Nil
Nil
taxation penalty or
and FBT
interest payments
imposed by the IRD
$500,000 for
taxation
penalty and
interest
payments
Notes:
1. The "No limit" delegation applies provided process controls have been followed and total amounts appear reasonable.
27/38
Financial delegations
Appendix 6 ‐ DFA limits set by Cabinet Circulars
Maximum Financial Delegation Limits set by CABINET CIRCULARS CO(18) 2 and CO(19) 6 or the ARMS ACT
You may only provide financial approval if the amount is within your limit and can be accommodated within an approved budget.
All financial delegation amounts are stated on a GST exclusive basis, except where GST is either not applicable or stated otherwise.
FINANCIAL DELEGATION CATEGORY
Commissioner of Minister of Police
Cabinet
Police
Operating Expenditure:
Advertising expenses/ Publicity note 1 CO (18) 2
$150,000
No limit
No limit
Expenses for compensation or damages in settlement of claims note $150,000
$750,000
No limit
2
Ex gratia expenses note 3
$30,000
$75,000
No limit
Compensation to owners of firearms s63 Arms Act 1983 note 4
Nil
Approved on a case by
N/A
case basis
Lease proposals funded from baseline note 6
WOLC <
WOLC < $35,000,000
WOLC $35,000,000 & above
$25,000,000
PPP proposals (even if funded from baseline)
Nil
Nil
No limit
All high risk lease proposals (irrespective of the scale and funding
No
No limit
Yes
source) note 5
Capital Expenditure:
All capital expenditure funded from balance sheet note 6
WOLC <
WOLC < $35,000,000
WOLC $35,000,000 & above
$25,000,000
All proposals that require new funding
Nil
Nil
No limit
PPP proposals (even if funded from balance sheet)
Nil
Nil
No limit
All high risk4 capital expenditure proposals (irrespective of the scale No
No
Yes
and funding source)
Sale of Assets:
Disposal of departmental assets
Carrying amount Carrying amount
Carrying amount $25,000,000
< $15,000,000
> $25,000,000
& above
Disposal of assets held on the Crown account that have significant No
No
Yes
policy implications
Notes:
1. Advertising expenses must comply with the guidelines for government advertising set out in Appendix B of the Cabinet Manual and CO (18) 2.
2. Expenses for compensation or damages for settlement of claims should be endorsed either by the Crown Law Office or a court judgement.
Claims under $75,000 should be certified by the department’s Chief Legal Advisor as being in order, or should be endorsed by the Crown Law
Office.
28/38
Financial delegations
3. Ex gratia payments are without the giver recognising any liability or legal obligation; the payment is made out a goodwill or sense or moral
obligation.
4. The Minister of Police must authorise all compensation payments in relation to orders made under the Arms Act 1983.
5. The proposal or project risk profile is determined by the State Services Commission's Gateway Unit based on the Gateway risk profiling
methodology.
6. This is the total value of the WOLC (Operating and Capital combined)
Additional information on Whole of Life Cost (WOLC)
WOLC is defined as:
The Net Present Value (NPV) of cash costs of the proposal under consideration.
Cash costs include the initial capital or operating costs, plus cash operating costs for the expected life of the asset, discounted using the Public
Sector Discount Rate. Operating costs may include costs of operational personnel if this is an essential part of the proposal.
For Crown‐funded proposals, the WOLC does not include depreciation expenses or capital charges.
2 .This definition takes account the time, value for money, and scale of the substantive proposal, not just the asset‐related costs, consistent with
the economic analysis required in the Treasury business case guidance.
3. Cash costs represent the costs incurred, on an ongoing and/or periodic basis over the period to enable an asset to be maintained to the same
standard as that achieved on its construction, refurbishment, and/or procurement. The period varies according to the nature of the proposal,
but for practical purposes may be considered to be the lower of the expected economic life of the asset or 20 years.
4. Operating Expenditure will include that required to ensure that an asset remains fit for its intended purpose over its expected life
(maintenance and ancillary services, such as energy and cleaning, as well as overheads and insurance), plus any anticipated disposal or
transaction costs.
5. The inclusion of non‐asset operating costs in the WOLC measure (e.g. operational staff costs) depends on the nature of the investment
decision:
5.1 if the investment is about expanding service delivery or changing the level of service, staff costs should be taken into account in the total
cash cost associated with the investment decision;
5.2 if the investment is largely about replacing existing infrastructure with no impact on staffing costs, the WOLC should include only the asset‐
related costs.
6. Examples include:
6.1 a department with a software licence contract proposal estimated to cost $10 million (initial cost) and 20 per cent per annum in
maintenance costs for nine years has a nominal cost of $28 million and a NPV of $22 million. This means that the responsible Minister has
authority to approve the investment as it falls in the range of $15 million to $25 million WOLC;
6.2 a department has a building refurbishment proposal estimated to cost $50 million (initial cost), with two $5 million refits over 20 years and
annual maintenance of two per cent, has a nominal cost of $80 million and a NPV of $65 million. At this level, Cabinet approval is required.
29/38
Financial delegations
Appendix 7 ‐ Indicative DFA forms for completion
The forms illustrated in this Appendix are only indicative and for reference only ‐ not for use. The latest, useable versions of all the forms are
available on
Finance Forms.
A. New Delegation of Financial Authority to a Member of New Zealand Police
To: Name:
QID:
Position:
Group:
Effective Date:
NB: Please ensure delegate has appropriate access. The Delegate must apply using Self‐Service Forms. Select SRM Portal Access. Request
‘Approver’ Access.
Is this Authority:
1.
New
2.
Amendment to Existing DFA*
3.
Permanent Change of Substitute
*Amendments must list all cost centres and nodes to be assigned to an approver
DELEGATION OF FINANCIAL AUTHORITY TO A MEMBER OF NEW ZEALAND POLICE
By this letter I delegate to you financial authority to approve expenditure on behalf of New Zealand Police, for those cost centres or items of
expenditure for which your position is accountable
. The Delegated Financial Authority Policy is a key component of the financial management
framework of the New Zealand Police, therefore, compliance with the following is required:
1. Approvals of operating expenditure for your cost centre(s) or other items of expenditure must be strictly in accordance with the limits set
out in Appendices 2 to 6 of the Delegated Financial Authority Policy; and
2. Operating or capital expenditure may only be approved where your cost centre has sufficient approved annual or project budget for the
expenditure concerned; and
3. Where discretionary expenditure (eg. internal travel, entertainment, etc) is incurred it must be authorised by:
‑ 3.1 the reporting manager of the person committing the expenditure, or
‑ 3.2 another Executive member where the expenditure is incurred by an Executive member
4. I appoint the person(s) whose name(s) and signature(s) are recorded on page 2 of this letter to act as your substitute. In the situation
where you need to nominate more than one substitute you must indicate the priority order in which the substitutes are to act for you. The
following must also be complied with regarding the use of substitutes:
‑ 4.1 prior to any planned absence you are to arrange for your substitute to be able to action financial approvals by advising the Systems
Accountant, Finance Strategic Programmes Group, in writing, who your substitute is and the period of substitution. The Systems
Accountant will action the switch; and
‑ 4.2 in selecting a person to act as your substitute you must ensure that the person is suitably competent to exercise the delegation of
financial authority pertaining to your position; and
‑ 4.3 you may not sub‐delegate any financial authority without the written approval of the appropriate authoriser; and
‑ 4.4 where there is a change to your nominated substitute you are responsible for advising the Finance Strategic Programmes Group.
‑ 4.5 where, due to staff movements, you no longer have a substitute(s) you are to complete a change of substitute letter and arrange with
the Finance Strategic Programmes Group for the appointment of a new substitute(s); and
5. Senior management may change the policy in regard to financial delegations and you agree that you will keep abreast of any such
changes.
6. Any breach of this delegation may be viewed as misconduct or serious misconduct. Details of what constitutes a breach are contained
within the Delegated Financial Authority Policy.
7. All expenditure is to be authorised and committed in accordance with Police financial policies and operational requirements. All
expenditure is to be fully justified, and managed in a prudent and economic manner, and
8. Section 34 of the Public Finance Act 1989 outlines the responsibilities of the Commissioner regarding the financial management of New
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Financial delegations
Zealand Police. In signing this Delegated Financial Authority, you are agreeing to assist in discharging those responsibilities.
This DFA applies to the following costs centres and/or nodes with the financial delegation category
Indicated below:
Node
Description
Cost Centre
Description
Financial Delegation Category
Please tick
Position
Approval Limit (routine operating)
Deputy Commissioner DC/DCE
2,000,000
Chief Financial Officer
1,000,000
Assistant Commissioner/Executive Director
250,000
District Commanders
100,000
Directors
25,000
Cost Centre Managers
10,000
All other employees automatic DFA
50
I have read and understand the New Zealand Police Delegated Financial Authority policy and agree to adhere to this policy and the above terms:
…………………………………………Signature of Delegate, / /20
QID and Full name of Substitute (Priority 1): …………………………………….
Full name of Substitute (Priority 1)
I understand, agree to and accept the above terms: ….………………………………………
Signature of Substitute (Priority 1), / /20
QID and Full name of Substitute (Priority 2): …………………………………………
Full name of Substitute (Priority 2)
I understand, agree to and accept the above terms: …………………………………………
Signature of Substitute (Priority 2), / /20
Accordingly I provide this delegation of financial authority to you on the above terms whilst you hold the above position or until further notice.
Reason for new or alteration to current Delegated Financial Authority:
Authorised by:
Dated at this day of 20
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Financial delegations
Signature: …………………………………………..
District /
Service Group: …………………………………
Name and QID: ……………………………………………….
Position: …………………………………………….
Email completed form to:
[email address]
For Corporate Finance Use Only:
Description
Checked
Date PAP Updated
Date SAP Updated
Cost Centre
FDA Category
B. Temporary Substitute for Delegation of Financial Authority to a Member of New Zealand Police
To: Name:
QID:
Position:
Group:
From Date:
To Date:
TEMPORARY SUBSTITUTE FOR DELEGATION OF FINANCIAL AUTHORITY TO A MEMBER OF NEW ZEALAND POLICE
NB: Please ensure delegate has appropriate access. The delegate must apply using Self‐Service Forms. Select SRM Portal Access. Request
‘Approver’ Access.
This form creates and activates a temporary substitution.
By this letter I delegate to you the financial authority to approve expenditure on behalf of New Zealand Police in the event of the absence,
planned or otherwise, of the following delegated financial authority position holder:
Current DFA holder QID and Name:
Position:
Group:
The Delegated Financial Authority Policy is a key component of the financial management framework of the New Zealand Police, therefore,
compliance with the following is required:
4. You may only authorise expenses for those cost centres or items of expenditure for which your position is accountable; and
5. Approvals of operating expenditure for your cost centre(s) or other items of expenditure must be strictly in accordance with the limits set out in
Appendices 2 to 6 of the Delegated Financial Authority Policy; and
6. Operating or capital expenditure may only be approved where your cost centre has sufficient approved annual or project budget for the
expenditure concerned; and
7. Where discretionary expenditure (eg. internal travel, entertainment, etc) is incurred it must be authorised by:
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Financial delegations
‑ 4.1 the reporting manager of the person committing the expenditure, or
‑ 4.2 another Executive member where the expenditure is incurred by an Executive member,
5. Senior management may change the policy in regard to financial delegations and you agree that you will keep abreast of any such changes.
6. Any breach of this delegation may be viewed as misconduct or serious misconduct. Details of what constitutes a breach are contained within
the Delegated Financial Authority Policy.
7. All expenditure is to be authorised and committed in accordance with Police financial policies and operational requirements. All expenditure
is to be fully justified, and managed in a prudent and economic manner, and
8. Section 34 of the Public Finance Act 1989 outlines the responsibilities of the Commissioner regarding the financial management of New
Zealand Police. In signing this Delegated Financial Authority, you are agreeing to assist in discharging those responsibilities.
This DFA applies to the following costs centres with the appropriate level of delegation:
Node
Description
Cost Centre
Description
Financial Delegation Category
Please tick
Position
Approval Limit (routine operating)
Deputy Commissioner DC/DCE
2,000,000
Chief Finance Officer
1,000,000
Assistant Commissioner/Executive Directors
250,000
District Commanders
100,000
Directors
25,000
Cost Centre Managers
10,000
All other employees automatic DFA
50
I have read and understand the New Zealand Police Delegated Financial Authority policy and agree to adhere to this policy and the above terms:
…………………………………………
Signature of Substitute, / /20
QID and Full name of Substitute: ………………………………………….
Full name of Substitute
Accordingly I provide this delegation of financial authority to you as my substitute on the above terms whilst you are acting in the above position
or until further notice.
Reason for change of substitute:
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Financial delegations
__________________________________________________________________________________
__________________________________________________________________________________
Authorised by:
Dated at this day of 20
Signature: ……………………………………………………….
District / Service Group: ……………………………………………….
Name and QID: …………………………………………………
Position: …………………………………………………………
For Corporate Finance Use Only:
Description
Checked
Date PAP Updated
Date SAP Updated
Cost Centre
FDA Category
C. Covert Operations DFA
To: Name:
QID:
Position:
Group:
Date delegated financial authority is to be effective from:
DELEGATION OF FINANCIAL AUTHORITY TO A MEMBER OF NEW ZEALAND POLICE
Delete this comment box and all text in
RED once template completed
Covert Operations (non‐informer) payments (Cost Centre Manager status)
This DFA is for District management staff who require a DFA of more than $1,000 for expenditure class ‘Covert Operations (non‐informer)
Payments’ for reasons of operational practicality. The Financial Delegation policy, App 2, allows for the Cost Centre Manager to have a
delegation of $10,000 for this expenditure class. The District Commander, on recommendation from the District Crime Services Manager
(DCSM), can delegate another employee to be a Cost Centre Manager, for ‘Covert Operations (non‐informer) payments’, with financial authority
up to $10,000.
Informer payments
In addition to the expenditure class above, a DFA of up to $500 for the ‘Informer Payments’ expenditure class can be granted to the employee, if
they are a constable. The DFA can only be granted by the District Commander on recommendation from the DCSM.
By this letter I delegate to you financial authority as a Cost Centre Manager for ‘Covert Operations (Non‐Informer) Payments’, in accordance with
Appendix 2 of the Financial Delegations Policy: Maximum Financial Delegation Limits for OPERATING EXPENDITURE & REVENUE. Your delegation
limit for this class of sensitive operating expenditure is $____________. [up to $10,000]
[Optional] I also delegate to you financial authority of $________ for ‘Informer Payments’. [up to $500]
You are not permitted to sub‐delegate this delegation of financial authority and no 'substitute' is permitted.
The Delegated Financial Authority Policy is a key component of the financial management framework of the Police, therefore, compliance with
the following is required:
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Financial delegations
8. Approvals and authorisations of operating expenditure for the above sensitive operating expenditure classes must not exceed the
amount(s) stated.
9. You may only approve sensitive operating expenditure when sufficient approved annual or project/operation budget exists for the expenditure
concerned.
10. If you breach this financial delegation, it may be viewed as misconduct or serious misconduct. Details of what constitutes a breach are
contained within the Financial Delegations Policy.
11. You must authorise and commit all permitted expenditure in accordance with Police financial policies and operational requirements. All
expenditure must be fully justified, supported by tax receipt (as required) and managed in a prudent and economic manner.
12. Section 34 of the Public Finance Act 1989 outlines the responsibilities of the Commissioner regarding the financial management of New
Zealand Police. In signing this delegated financial authority, you are agreeing to assist in discharging those responsibilities.
I accept this delegation of financial authority. I have read and understand the Financial Delegations policy and agree to adhere to this policy and
the above terms:
………………………………………… Signature of Delegate, / /20
Authorised by:
Dated at this day of 20
…………………………………
QID Name:
Position: District Commander
OR
…………………………………
QID Name:
Position: Director Criminal Investigations
OR
…………………………………
QID Name:
Position: Director Capability or Tactical Operations
Delete two delegator. The District Commander can give a delegation for both ‘covert operations (non‐informer)’ and ‘informer payments’
payments. The Director:CI can give a delegation for ‘covert operations (non‐informer) payments’.
The Director Capability or Tactical Operations can give a delegation for ‘covert operations (non informer) payments ‘.
CORPORATE FINANCE ADMINISTRATIVE USE ONLY:
This financial delegation applies to the following cost centres:
Cost Centre Node
Cost Centre
Description
D. Covert Operations (Non‐Informer) payments
To: Name:
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Financial delegations
QID:
Position:
Group:
Date delegated financial authority is to be effective from:
DELEGATION OF FINANCIAL AUTHORITY TO A MEMBER OF NEW ZEALAND POLICE
Delete this comment box and all text in
RED once template completed
Covert Operations (Non‐Informer) payments
This DFA letter grants financial authority of up to $2,000 for ‘nominated covert operations employees’ for the expenditure class ‘Covert
Operations (non‐informer) payments’, in accordance with the Financial Delegation policy, App 2. The Director Criminal Investigations or a
District Commander can grant a DFA on the recommendation from the Manager Covert Operations Group or District Crime Services Manager
(DCSM) respectively.
Refer to the DFA letter granting Cost Centre Manager status for ‘Covert Operations (Non‐Informer) payments’ for District management
employees who, for operational practicality, require a delegation limit greater than $2,000.
Informer payments
This letter can also (or instead of) be used to grant a DFA, of up to $500 for the ‘Informer Payments’ expenditure class, to nominated
constabulary employees. The DFA can only be granted by the District Commander on recommendation from the DCSM.
By this letter I delegate to you financial authority to approve expenditure on behalf of Police for the following sensitive operating expenditure
class(es) in accordance with Appendix 2 of the Financial Delegations Policy: Maximum Financial Delegation Limits for OPERATING EXPENDITURE
& REVENUE:
‑ (i) $_______ on approved Covert Operations (Non‐Informer) payment; [up to $2,000] and/or
‑ (i ) $________ on Informer Payments. [up to $500]
You are not permitted to sub‐delegate this delegation of financial authority and no 'substitute' is permitted.
The Delegated Financial Authority Policy is a key component of the financial management framework of the Police, therefore, compliance with
the following is required:
13. Approvals and authorisations of operating expenditure for the above sensitive operating expenditure classes must not exceed the
amount(s) stated.
14. You may only approve sensitive operating expenditure when sufficient approved annual or project/operation budget exists for the
expenditure concerned.
15. If you breach this financial delegation, it may be viewed as misconduct or serious misconduct. Details of what constitutes a breach are
contained within the Financial Delegations Policy.
16. You must authorise and commit all permitted expenditure in accordance with Police financial policies and operational requirements. All
expenditure must be fully justified, supported by tax receipt (as required) and managed in a prudent and economic manner.
17. Section 34 of the Public Finance Act 1989 outlines the responsibilities of the Commissioner regarding the financial management of New
Zealand Police. In signing this delegated financial authority, you are agreeing to assist in discharging those responsibilities.
I accept this delegation of financial authority. I have read and understand the Financial Delegations policy and agree to adhere to this policy and
the above terms:
………………………………………… Signature of Delegate, / /20
Authorised by:
Dated at this day of 20
…………………………………
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Financial delegations
QID Name:
Position: District Commander
OR
…………………………………
QID Name:
Position: Director Criminal Investigations
OR
…………………………………
QID Name:
Position: Director Capability or Tactical Operations
Delete two delegator. The District Commander can give a delegation for both ‘covert operations (non‐informer)’ and ‘informer payments’
payments. The Director:CI can give a delegation for ‘covert operations (non‐informer) payments’.
The Director Capability or Tactical Operations can give a delegation for ‘covert operations (non informer) payments‘.
CORPORATE FINANCE ADMINISTRATIVE USE ONLY:
This financial delegation applies to the following cost centres:
Cost Centre Node
Cost Centre
Description
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Financial delegations
Appendix 8 ‐ DFA for Firearms Buy‐back process
Delegated Financial Authority for the Firearms Buy‐back Process
Deputy
Assistant
Director /
Cost
Firearms
Commissioner of Police
CommissionerCommissioner /
Programme
Centre
Assessor
Executive Director
Manager
Manager
Standard process for
Not applicable Not applicable
Not applicable Not
Not
The value per the published price list
Firearms, Parts and
applicable applicable
Accessories
Proposed DFA limits for Manual Processes for Approval at a Later Date
Modifications
No limit
$2,000,000
$250,000
$25,000
$10,000 $300 per eligible modification up to
a maximum invoice value of $10,000
Unique Prohibited Items
No limit
$2,000,000
$250,000
$25,000
Not
Not applicable
applicable
Dealer Administration Fee No limit
$2,000,000
$250,000
$25,000
$10,000 $50 per eligible transaction up to a
maximum invoice value of $10,000
Dealer Stock
No limit
$2,000,000
$250,000
$25,000
Not
Not applicable
Reimbursement
applicable
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Insurances
Table of Contents
Table of Contents
2
Policy standards and principles
3
What
3
Why
3
How
3
Reporting losses ‐ who to contact?
3
Details of insurance programme
4
Motor vehicle
4
Indemnity and insurance ‐ drivers of Police vehicles
4
Indemnity and insurance ‐ private motor vehicles used for official purposes
4
Police buildings (including contract works)
4
General/public liability
4
Marine hull
4
Expatriate medical insurance
4
International travel (including Police deployments)
4
Insurance of household and personal effects during relocation
5
Insurance of employees’ personal effects and private property
5
Clothing and personal effects are damaged
5
Personal property
5
Escalation route
5
Insurances
Policy standards and principles
What
Police purchase insurance to offset loss or damage to its assets and liability from third party loss or damage.
Why
Police, like all organisations, carries the risk of loss or damage to assets, or of incurring liability for third party loss or damage to assets.
Some of this exposure can be offset by the purchase of insurances.
How
The Chief Financial Officer is responsible for managing insurances in Police, and it is administered by Corporate Finance at PNHQ.
Police retains an external adviser, Marsh Ltd, to provide advice, purchase insurance and administer claims.
Police employees:
‑ contact
Corporate Finance when the loss or damage occurs
‑ report losses when identified
‑ self‐insure all personal property.
Sureplan are contracted to provide vehicle accident management services.
Reporting losses ‐ who to contact?
Police employees must report any actual or potential losses as soon as possible, to ensure claims are managed properly and any loss to
Police is minimised.
Contact points are:
Type of claim
Contact point
Motor vehicle claims
Sureplan:
0800 112 323 (always select option 1 for Police and then you have a choice of option 1 for Sureplan
or the other options for Custom Fleet)
Household and personal effects
during relocation
Please refer to
Relocation Guide.
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Insurances
Details of insurance programme
Motor vehicle
Police chooses to self‐insure its motor vehicle fleet. However, it is essential that claims are managed properly, and Police retains an
expert third party adviser, Sureplan, for this purpose. Claims should be reported directly to Sureplan as soon as possible.
Police does insure for some cover in connection with the motor vehicles utilised airside at New Zealand airports only.
Indemnity and insurance ‐ drivers of Police vehicles
The driver of a Police vehicle is generally covered:
‑ by the
Accident Compensation Act 2001, which provides cover against claims for death and personal injury sustained by all
persons; or
‑ by Police indemnity against personal liability for claims arising from an accident.
Police as an employer, is vicariously liable for third‐party claims for damages to property (including motor vehicles) caused by the
negligence of their employees committed in the course of their employment. A third party with a right of action against a Police
employee for such negligence can therefore normally be expected to sue the employer and not the employee.
Subject to the exceptions below, Police will indemnify authorised drivers of a Police vehicle against any liability on a civil claim to
which they may be personally exposed by reason of the vehicle driven by them on an authorised journey causing damage to the
property of any third party. This indemnity does not apply where at the time of the accident the driver:
‑ is under the influence of intoxicating liquor or drugs
‑ while using the vehicle on a public road does not hold a current driver's licence for the type of vehicle they are driving
‑ is carrying unauthorised goods, the presence of which is the sole cause or a material contributory cause of the accident, injury,
or damage.
Indemnity and insurance ‐ private motor vehicles used for official purposes
Employees, who use their private motor vehicle for official purposes on the basis of payment of mileage allowance, transport
allowance, or equivalent fares, must maintain third‐party property and vehicle insurance. While it is not mandatory for employees to
insure their own vehicle against damage while so used, they are advised to do so as Police will not accept any responsibility for damage
to the vehicle.
Police buildings (including contract works)
Police chooses to self‐insure its property portfolio. However, it is essential that claims are managed properly.
Police currently purchases contract works insurance, which covers the risk of losses during the property construction process.
General/public liability
Police currently purchases general/public liability insurance, which covers legal liability arising from third party personal injury or
property damage.
Marine hull
Police currently purchases marine hull and liability insurance for Deodar III, Lady Elizabeth IV, 3 x
Rigid‐Hulled Inflatable Boats (RHIBs).
Police chooses to self‐insure other vessels and marine equipment.
Expatriate medical insurance
Police currently purchases expatriate medical insurance which covers Police Liaison Officers in overseas posts.
International travel (including Police deployments)
Police currently purchases international travel insurance which covers all employees and authorised persons travelling overseas on
Police business and authorised private travel, including their accompanying spouse and children.
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Insurances
Insurance of household and personal effects during relocation
Employees under transfer at Police expense are entitled to insurance cover on their furniture and household effects as provided by the
removal contractor.
They must familiarise themselves with the ‘Police Domestic Relocation Guide’ which is available from People Group. Specific points to
note are:
‑ the clauses on insurance, claims and storage provided for; and
‑ any additional insurance cover will be at the employee's own cost.
Note: If a Police employee is unsure whether items are excluded for relocation, they should obtain advice directly from the removal
contractor when arranging the removal.
Claims must be lodged with the removal contractor’s insurer within seven days of delivery of the house‐pack. For details of how to
lodge a claim refer to the ‘Guide ‐ Insurance, Claims and Storage’, available through HR.
Police will not provide any additional insurance cover beyond that provided by the removal contractor.
Insurance of employees’ personal effects and private property
Police does not accept any liability for loss or damage by fire, theft or other causes, of employees’ personal effects or other private
property (including tools of trade) which are used or kept in Police premises (including residences and barracks) or which are taken
with employees when travelling on duty, or which are being shifted or are stored in the course of transfer or re‐housing of an employee.
Employees are advised in their own interest, to insure all personal property. Where employees choose not to do so, there shall be no
liability on the Commissioner and the employee carries the risk.
The Commissioner
may, however, consider applications for compensation when:
Clothing and personal effects are damaged
If clothing and personal effects damaged by means other than fire, in the course of and as a result of duty, provided that the damage
has not been caused by the employee. Only in exceptional circumstances will consideration be given to claims for loss or damage to
private equipment which employees use of their own choice on duty in preference to departmental equipment which has been issued
to them or which is readily available.
Where any such loss or damage results to clothing in the course of duty, an ex gratia payment may be considered where the employee
has taken out an adequate all risks cover but is required to meet an excess clause in respect of a single claim.
This section will not apply where the property damaged is clothing and the employee is in receipt of the plain clothes allowance, which
includes a 3 percent loading to assist the employee with the cost of an ‘all risks’ extension to a householder's insurance policy.
Personal property
Any personal property an employee requires for the performance of their duty and which:
‑ are stored in Police premises (excluding residences and barracks) in the place and manner directed by the Department, are lost
or damaged, other than by fire, in circumstances over which the employee had no reasonable control
‑ are stored in private premises (including Police residences) are lost or damaged as a result of an incident arising because the
employee is an employee of Police.
Note: employees are advised to insure all personal property, any compensation paid by the Commissioner is unlikely to exceed the
excess payable under the employee’s personal insurance policy.
Escalation route
Should there be any unforeseen difficulties in the processing of claims, please contact
Corporate Finance.
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