Planning & Investment Knowledge Base

Transport Agency planning, funding and procurement delegations

 

Introduction

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

 

Delegations within the Transport Agency

The Transport Agency has three levels of delegation:

  • from the Board The NZ Transport Agency 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 Instruments of Delegation (Transport Agency link only), to ensure full understanding of the delegations.

 

Delegations outside of the Transport Agency

The Transport Agency Board The NZ Transport Agency Board. has agreed that Approved Organisations may receive delegated power to make funding approvals for small improvement projects of 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 small improvement  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 Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. 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 any 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 The NZ Transport Agency Board. to staff and Approved Organisations.

 

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 (Transport Agency-only link).  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, to ensure there are sufficient funds available to fund the activity. While Transport Investment Online (TIO The NZTA's web-based funding allocation system. ) provides Transport Agency staff with a view of uncommitted provisions in each activity class, commitments that have yet to be formalised may exist. The availability of funds to support the activity should be determined in consultation with the Investment Framework Manager.
  • account is taken of any Transport Agency current cash-flow management  directives, which may include restraints on approving new activities.
  • account is taken of any directive or guidance on current funding 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 it is considered that the risk to Transport Agency investment has grown to an unacceptable degree.

 

Definitions

Definitions of acronyms in following tables:

  P&I = the Planning & Investment group of the Transport Agency
  HNO = the Highway & Network Operations group of the Transport Agency

 

 

Funding Assistance Rates

Approving funding assistance rates at the start of each NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied and any targeted enhanced rates
Scenario
Delegate

Set funding assistance rate for each Approved Organisation

Board The NZ Transport Agency Board.

Approve variation to the rate of funding assistance for specific projects

Board The NZ Transport Agency Board.

 

 

Support Strategic Cases 

Support Strategic Cases
Scale
Delegate
All strategic cases, subject to test of significance (Transport Agency only link)

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

 

 

Approving funding for Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case development 

Approve funding for development of Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases  listed in the current NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied * (under Work Category 004)
Scale   
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

National Manager Network Directions & Performance (HNO)

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

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

 

* If a proposed Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case is not in the current NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied , it will need to be added to it - see "Adding Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases to the NLTP" below.

 

 

Adding Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities.  Business Cases

Varying the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied to add Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases (under Work Category 004)
Significance
Delegate

All Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases

National Manager Investment

 

 

Support Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities.  Business Cases

Support Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases
Scale
                                                                              
Delegate

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

Board The NZ Transport Agency Board.

Implementation cost is likely to be less than $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

National Manager Network Directions & Performance (HNO)

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)

 

* For approving funding for business cases once the Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case is complete, see "Activities progressed under Business Case Approach" below.

 

Other planning activities

Approve funding and variations of RLTP A regional land transport plan, prepared under Part 2 of the LTMA, as from time to time amended or varied. development management, model development and activity management planning activities
Funding Priority
Delegate

Included in the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied

Regional Manager P&I

National Manager Network Directions & Performance (HNO)

Not included in the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied

National Manager Investment

 

 

Activities progressed from strategies and studies developed prior to Business Case Approach

Approving funding of any phase* of an improvement activity
Scale (construction cost including net property cost)
Delegate

Greater than $50 million

 

Board The NZ Transport Agency 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 Officer

 

* Phases covered by this delegation are property (other than for state highways), investigation, design and construction.

 

Activities progressed under Business Case Approach

Approving funding for development and delivery of any business case beyond the Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case
Scale (Implementation Cost including net property cost)
Delegate

Greater than $50 million

Board The NZ Transport Agency 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 Officer

 

* Business cases covered by this delegation are indicative business case, detailed business case, pre-implementation and implementation. The property phase is also covered by this delegation, other than for state highways.

 

Endorsement of Preferred Option

Endorse 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 A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied

Variations to the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied to add activities* other than Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases**
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

 

* Activities in this context are new improvement projects, new phases of existing projects or new business cases, which will require prior variation of relevant RLTPs Regional land transport plans, prepared under Part 2 of the LTMA, as from time to time amended or varied. , unless already included in an RLTP A regional land transport plan, prepared under Part 2 of the LTMA, as from time to time amended or varied. or exempt. See the Prior RLTP variation not required section of the Unlisted Activities and Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Variations overview for exemptions.

 

** For information on delegations for adding Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases to the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied see the "Adding Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Cases to the NLTP" section above.

 

*** The Regional Manager P&I funding approval delegations are as set out under the "Activities progressed from strategies and studies developed prior to Business Case Approach" and the "Activities progressed under Business Case Approach" sections above.

 

Cost increases for funding approved activities

Cost increases for an approved improvement activity*, an approved emergency works activity, or an approved minor improvements programme
Scale
Delegate

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

 

* Improvement activity in this context means the phase or business case for which funding has been approved. Increases in property costs for state highway property are covered under the "Purchase of State Highway property" section below.

 

** Cumulative means the total of all cost increases, including the proposed adjustment, since funding for the activity was initially approved. If the cumulative cost increase 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 increase results in a change in the funding priority of an activity, e.g. to less than the investment threshold for the activity class, this will trigger the Agency's significance policy and require the decision to approve the adjustment to be elevated. 

 

Cost increases for approved Maintenance, Public Transport and Road Safety
Promotion programmes and Sector Research activities
Scale
Delegate

All values within the limits of the activity class funding allocation by the Board The NZ Transport Agency Board.

National Manager Investment

 

 

Other cost variations

Cost variations, subject to NLTF The fund established under section 10 of the LTMA cash-flow constraints
Type
Delegate

Cost decreases

Fiscally neutral cash-flow adjustments

Fiscally neutral transfers within a Maintenance Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities.

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.

 

Scope changes for approved activities

Changes in scope of approved activities
Scenario
Delegate

The scope of the current phase/case or implementation phase/case of an approved activity changes to the extent that delivery of the stated outcomes of the activity will be materially impacted up or down.

 

The scope change may accompany a cost increase or decrease, but not always. If it accompanies a cost increase

The delegation depends on the scale and impact of the scope change. An assessment of the impact on the assessment profile The three-part rating for an activity, rated as high, medium or low e.g. HMM, and representing the assessment for Strategic Fit, Effectiveness, and Benefit and Cost Appraisal respectively. and business case for the activity must be undertaken. Based on this, a significance test will assist in judging the most appropriate level of sign-off.

 

 

Road policing programme

Road Policing programme
Scenario
Delegate
Provide recommendations to the Minister for road policing activities
Board The NZ Transport Agency Board.

Recommend variations to a Road Policing Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities.

National Manager Investment

 

 

New emergency works activities

Emergency Works The work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements
which covers both initial response and the work required to reinstate a road facility damaged by a sudden and unexpected natural event.
(per event) - new approvals*
Scale
Delegate

Greater than $15 million

Group Manager P&I

Up to $15 million

Regional Manager P&I – for Approved Organisations

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

Up to $1 million

Planning and Investment Manager

Senior Investment Advisor

 

* Cost increases for approved emergency works activities are covered under the "Cost increases for funding approved activities" section above. Cost decreases for approved emergency works activities are covered under the "Other cost variations" section above.

 

Funding transfers between activity classes

Transfers between activity classes*
Scale
Materially impact delivery of GPS A Government Policy Statement on Land Transport Funding issued under section 86 of the LTMA outputs Goods or services delivered by an activity or combination of activities.
Delivery of GPS A Government Policy Statement on Land Transport Funding issued under section 86 of the LTMA outputs Goods or services delivered by an activity or combination of activities. not impacted

All

Board The NZ Transport Agency Board.

Group Manager P&I

 

* Where expenditure is likely to fall outside of the GPS A Government Policy Statement on Land Transport Funding issued under section 86 of the LTMA range, the Minister's approval will be required to adjust the GPS range.

 

Use of debt facility

Use of Debt Facility
Scale
Delegate

Use of the $175 million seasonal variation component

Chief Financial Officer

Use of the $75 million unexpected cost component

Group Manager P&I

 

 

Purchase of State Highway property

Advanced Property Purchases under work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements
331*
Conditions
Delegate

Within the funding provisions set by the P&I Group, subject to any delegation set by the Board The NZ Transport Agency Board. and provided it meets the conditions  in this Knowledge Base for work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements
331

National Manager Network Directions & Performance (HNO)

 

* Cost increases fall within this delegation to the extent that:

  • the project construction/implementation cost of the project for which property has been purchased stays within the delegated authority for approving funding of any phase or business case; and
  • the funding priority of the project remains above the minimum investment threshold for the activity class.

If not both, the proposed cost increase must then be elevated for approval to the appropriate level of delegation.

 

Procurement The purchase of works, goods or services. decisions 

Endorse procurement strategies
Scale (annual procurement spend)
Delegate

Greater than $100 million

Board The NZ Transport Agency 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 A document required by the NZTA that sets out each approved organisation's strategy for procuring services and infrastructure using funds from the National Land Transport Fund. amendments
Scale (annual procurement spend)
Delegate

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

Board The NZ Transport Agency 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 The Land Transport Management Act 2003, as amended from time to time.
Scale
Delegate

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

Conditions of approval fulfilled sign-off
Scale
Delegate

All values

Regional Manager P&I

 

 

 

Last Updated: 07/02/2017 4:27pm