The Citizens Foundation Ref.

#: DFA/007
Delegation of Financial Authority - DFA Effective date : 01 Sept 2020
Replaces: DFA/006 (01 July 2019)

APPROVING AUTHORITY
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM

1 Budget OPEX
1.1 Overall (Annual) 1 A R R I I I I I
1.2 Enhancing Overall Budget Limit exceeding 5% (applicable to OPEX only) A A R I I I I I
1.3 Enhancing Overall Budget Limit upto 5% (applicable to OPEX only) A R I I I I I

2 Statement of related party transactions

2.1 Related party transactions A R R R I

3 Capital Fund
3.1 Transfer to / from General Fund A R I+R I

4 General Fund
4.1 Transfer to / from General Fund A R I+R I

5 Endowment Fund / Sustainability Fund

Adjustment/change of terms etc. in Endowment Fund (as per mutual agreement of the
5.1
Parties)
a) Exceeding Rs. 1,000,000 Ratify A R R R I (RMD)
b) Upto Rs. 1,000,000 A R R R I (RMD)
5.2 Use of Sustainability Fund to meet cash shortfall A A R I I

6 Fixed Assets (Tangible/Intangible)

6.1 Acquisition of Assets costing more than Rs. 1,000,000 2&3
a) Budgeted (Joint approval) A A R R R I I
b) Non-budgeted or exceeding 5% over Budgeted A R R R R R I I
6.2 Acquisition of Assets costing up to Rs. 1,000,000 2&3
a) Budgeted/Non-budgeted (Joint approval) A A R R R I I
6.3 Book Value of disposal of Fixed assets
a) Disposal of Asset (Book value) more than Rs. 500,000 2&3 Ratify R R R R R I I
b) Exceeding Rs. 200,000 upto Rs. 500,000 (Joint approval) 2&3 Ratify A A R R R I I
c) Upto Rs. 200,000 (Joint Approval with CFO) 2&3 Ratify A A A A I+R R I
d) Upto Rs. 30,000 (Joint Approval with FC) - School Furniture only 2&3 Ratify A (Fin) A R I
e) Upto Rs. 10,000 (Joint Approval with FC) - School Furniture only 2&3 Ratify A (Fin) A I+R

7 Capital work in progress

7.1 Construction Requisition A R R R R I+S S
7.2 Letter of Award/Agreement (Joint approval) A A I + R (Engg)
7.3 Additional Work (Joint approval) 4 A A I + R (Engg)
7.4 Vendors (contractors, suppliers, services) bills A (Engg)
7.5 Release of retention money (Joint approval) A A I + R (Engg)

Page 1 of 6
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM
8 Investments (as per investments policy)
Investments as per investments policy approved by the BOD (duly signed by any two bank
8.1 2 Ratify IMC(R) I+R+A (GM Fin)
signatories)

9 Advances and Imprest authorization to RO, AO, dept. etc.

9.1 Advances 10
i) contractors, suppliers & others, exceeding Rs. 1,000,000 A R R R R I I
ii) contractors, suppliers & others exceeding Rs. 600,000 upto Rs. 1,000,000 A A A R I+R I
iii) contractors, suppliers & others exceeding Rs. 100,000 upto Rs. 600,000 A A A A I+R I+R
iv) contractors, suppliers & others upto Rs. 100,000 A A I+R I
9.2 Imprest
i) Exceeding Rs. 250,000 (Joint approval with CFO) A A R R R I I
ii) Exceeding Rs. 100,000 upto Rs. 250,000 (Joint approval with CFO) A A A R I+R I
iii) Upto Rs. 100,000 (Joint approval with CFO) A A A A I+R I+R

10 Execution of contract/agreements
Donation, MOU(s), leased deed(s), Gift Deed(s), Sales Deed(s), Rental Agreements,
10.1 7 A R R R R I I
Service/Support Agreements, Expression of interest, Tender, Proposals, Grants etc.

11 Write-off of bad advances, receivables and deposits

11.1 Any amount A R R R R R I I

12 Provision for impairment loss / expected credit losses

12.1 Investments Ratify IMC(Inf.) A I+R(Fin)
12.2 Property Ratify A R R R R I I

Determination of the terms & circumstances in which lawsuit may be compromised and
13 5 A R R R R I R I
a claim / right may be waived, realized etc.

To settle Non-payment amount of Principal, interest, penalties to a bank, financial

14 5 A R R R R I+R
institution, Government institutions etc.

15 Public liability claims 5 A R R R R I

16 Yearly Donation Rates RMC (Ratify) A A R I (RMD)

17 Donation
17.1 Refund/Adjustment of donation exceeding Rs. 250,000 RMC (Inf.) A A R I (RMD)
17.2 Refund/Adjustment of donation upto Rs. 250,000 A A R I (RMD)

18 Fund raising expenses (including marketing expenditures)

18.1 Exceeding Rs. 1,000,000 12 A R R I
18.2 Upto Rs. 1,000,000 12 A R I

19 Monthly Payroll through HCM A (FC/HR)

Page 2 of 6
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM
20 Remuneration
20.1 Increments / adjustments payments A R (HR) I (HR)
20.2 Revision of salary scales - Market adjustments / payments A R (HR) I (HR)
20.3 Appointments / hiring
a) CEO, CFO, Head of Internal Audit and Company Secretary A HRRC(R) R R (HR) I (HR)
b) EVP A HRRC(R) R R (HR) I (HR)
c) VP/GM reporting directly to the CEO HRRC(A) R R (HR) I (HR)
d) VP, GM, Department Head and Regional Manager A R (HR) I (HR)
e) All other employees
- New position A R (HR) I (HR)
- Existing position (replacement) A A
20.4 Cash merit award/ compensation
a) Exceeding Rs. 25,000 upto Rs. 50,000 A R R R R I (HR) R I
b) Upto Rs. 25,000 A A A A I (HR) R R I
20.5 Final Settlement
a) All positions above manager level (JG 10 and above) A S R (HR) I (HR)
b) All positions below JG 10 I+R+A (HR)
c) Assistants (JG 1), Non-Faculty & Non-Management Staff I+R+A (HR)

21 School and Office staff training expenses

21.1 School Training expenses (Preset, Inset, PA, TOT etc.)
Budget approval (Amount proposed to be spent ) A A R (HOE) I
Advance (please refer note 9.1)
Submission of expenses against budgeted amounts A I+R
Rs. 5,000 per Unit per month for Matric Tech Vocational Program/Training (Only for those
21.2 A
schools having Vocational Training classes)
21.3 Courses/Seminars (For Office Staff Training & Development)
Budget approval (Amount proposed to be spent ) A R (HR) I (HR) I
CEO (To be approved by the Chairman) I
EVP A I+R I+R I+R S(HR)
VP, GM, and Department Heads A A A I+R I+S(HR) I
RM A S(HR) I+R
Staff of respective department I+A+S(HR) A I+R

22 Write-off / Waiver of School collection / stock adjustment

22.1 a) Waiver (AEM approval on monthly basis per school/unit) A I+R
22.2 b) Write-off A
22.3 c) Monthly reporting (all stakeholders till AEM) HOD (Fin)

23 Procurement of school supplies (Annual demand etc.)

23.1 Exceeding Rs. 5,000,000 (Joint approval) A A I (SC)
23.2 Upto Rs. 5,000,000 A I+R (SC)

24 Vehicle Running & Maintenance Expense (HO, RO, AO and Schools)

24.1 Vehicle Fuel and Monthly R&M - Offices and school
Exceeding Rs. 500,000 A I+R(SC)+S(OE) R I
Up to Rs. 500,000 I+R+A(SC)+S(OE) A I+R I

Page 3 of 6
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM
24.2 Vehicle Maintenance - Offices and School / per Vehicle
Exceeding Rs. 100,000 A R R A(SC)+S(OE) R I
Exceeding Rs. 50,000 upto Rs. 100,000 A A A(SC)+S(OE) R I
Exceeding Rs. 10,000 upto Rs. 50,000 A(SC)+S(OE) A I+R
Upto Rs. 10,000 A (SC)+S(OE) A I+R

25 Other procurement/services
25.1 Exceeding Rs. 1,000,000 A R R R R I I
25.2 Exceeding Rs. 600,000 upto Rs. 1,000,000 A A A R I I
25.3 Exceeding Rs. 200,000 upto Rs. 600,000 A A A A I+R I+R
25.4 Upto Rs. 200,000 A A
25.5 Release of retention money (e.g. furniture etc.) Joint approval A A

26 Travel Authorization
26.1 CEO including Foreign Travel (To be approved by the Chairman) I
26.2 EVP A I+R I+R I+R
26.3 VP A A A A I+R
26.4 RM, GM, HOD A A A A I+R I+R
26.5 Staff of respective department / region I+R+A A I+R

27 Foreign Travel Authorization (All employees excluding CEO) A R R R R I I

28 Legal expenses
28.1 Exceeding Rs. 500,000 Ratify A R R R R I I
28.2 Upto Rs. 500,000 A A R R R I I

29
29.1 Exceeding Rs. 1,000,000 A R R R R I I
29.2 Exceeding Rs. 600,000 upto Rs. 1,000,000 A A A R I+R I
29.3 Exceeding Rs. 200,000 upto Rs. 600,000 A A A A I+R I+R
29.4 Upto Rs. 200,000 A A I+R I

30 Insurance
30.1 A - Fire Insurance (Property and Equipment)
Annual coverage (Joint approval) A R R I (FIN)
Addition during the year coverage I+R+A (FIN)
30.2 B - Group Life and Hospitalization Insurance
Annual coverage A R (HR) I (HR)
Addition during the year coverage I+R+A (HR)
30.3 C - Car/Motor cycle Insurance
Annual coverage A R R I (FIN)
Addition during the year coverage I (SC)+R+A (FIN)
D - Special Policies
30.4 Annual coverage A R I (FIN)
Addition during the year coverage I+R+A (FIN)

Page 4 of 6
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM
31 Repairs & Maintenance
31.1 A- School Building
Exceeding Rs. 500,000 A R I (HOE)
Exceeding Rs. 200,000 upto Rs. 500,000 A I+R (HOE)
Exceeding Rs. 50,000 upto Rs. 200,000 A (HOE) I+R
Upto Rs. 50,000 (To be in line with annual limit as assigned by HOE) A R I
Upto Rs. 10,000 (To be in line with annual limit as assigned by HOE) S A I
Upto Rs. 3,000 per month (Annual limit Rs. 25,000) A
31.2 B- Others than School Building
Exceeding Rs. 100,000 A R I+R R I
Exceeding Rs. 50,000 and upto 100,000 A A I+R R I
Upto Rs. 50,000 I+A A I+R

32 TCF School Events

Annual Results Day upto Rs. 5,000 for first school unit & on each additional unit Rs. 3,000.
32.1 A
Rs. 500 prize per section
32.2 Independence Day Rs. 2,000 per school unit A
32.3 Annual Sports week Rs. 3,500 for first unit & on each additional unit Rs. 2,500 A
32.4 Annual recreation day - schools (Joint approval) A A I+R

33 Advertisements (excluding marketing advertisement)

33.1 Exceeding Rs. 200,000 A R R R I I
33.2 Exceeding Rs. 100,000 Upto Rs. 200,000 A A A I+R I+R
33.3 Upto Rs. 100,000 A A I+R

34 Office Entertainment / Refreshment / Staff motivation

34.1 Exceeding Rs. 40,000 A R R R R I I
34.2 Exceeding Rs. 15,000 and upto Rs. 40,000 A A A A I+R
34.3 Up to Rs. 15,000 (Annual limit Rs. 40,000) A A I+R

35 Other Office expenses (rent, photocopy, freight etc.)

35.1 Exceeding Rs. 300,000 A R R R R I R I
35.2 Exceeding Rs. 100,000 and upto Rs. 300,000 A A A A I+R R I
35.3 Up to Rs. 100,000 A A I+R

36 V&A
36.1 Alumni (Scholarships, Tuition fee, ADP etc.)
Exceeding Rs. 800,000 A R I
Exceeding Rs. 200,000 Upto Rs. 800,000 A I+R
Upto Rs. 200,000 I+R+A

36.2 Volunteer (Rahbar, Summer Camp etc.)

Exceeding Rs. 800,000 A R I
Exceeding Rs. 200,000 Upto Rs. 800,000 A I+R
Upto Rs. 200,000 I+R+A

37 Scrap Sales (CAPEX/OPEX) - Joint approval with CFO 11 A A R I+R R I

38 Petty Cash ( HEAD OFFICE PETTY CASH ONLY )

38.1 Exceeding Rs. 10,000 (applicable to Finance only) A I+R
38.2 Upto Rs. 10,000 (applicable to Finance only) A (FC)

Page 5 of 6
Key: A: Approve; R: Recommend; I: Initiate, S: Sign HEAD OFFICE REGION/AREA/SCHOOLS
Boards EVP (Input / EVP GM or AEM /
S.# Particulars Note BOD CEO CFO VP RM Principal
Committees Outcome) (Ops) HOD ACM

39 Opening and closing of bank accounts

39.1 HO Books and RO Imprest 6 A A A A A I+R A+I
39.2 AO Imprest and Schools Imprest 6 A A A A A A I+R I

40 Cheque Signing/Pay Order/Bank Draft/Bank documents & Letters etc., 13

40.1 Cheque Signing/Pay Order/Bank Draft/Bank documents & Letters etc., any amount Group 1 - Jointly by any of the TWO authorized signatories (EVP and Above), as approved by the BOD.
40.2 Cheque signing upto Rs. 50,000 Group 2 - Jointly by VP and GM level employee, as approved by the BOD
40.3 Cheque signing upto Rs. 20,000 Group 3 - Jointly by any 2 GM Level employee, as approved by the BOD

41 Amendments in Delegation of Financial Authority

41.1 Annual review 14 A R R I (FIN)

42 UAE Branch expenses TO BE AUTHORIZED / APPROVED BY 2 AUTHORIZED REPRESENTATIVE FROM UAE BRANCH

Abbrev.: CEO - Chief Executive Officer CFO - Chief Financial Officer EVP - Executive Vice President
VP: Vice President GM: General Manager BOD: Board of Directors
HR: Human Resources HOD: Head of Department ET - Executive team
RM: Regional Manager REM: Regional Education Manager AEM: Area Education Manager
AM: Area Manager DI: Department Incharge(includes HOD/Sr. Mgr./Mgr.etc) RMC: Resource Mobilization Committee
HOE: Head of Engineering SC: Supply Chain HRRC: Human Resource Remuneration Committee
AMM: Asst. Manager Maintenance RMD: Resource Mobilization IMC: Investment Management Committee
FIN: Finance Inf. = Informed
Notes:
01. TCF Annual Budget will be presented to Executive Team (ET) by Senior Finance Team. After ET's recommendation, CEO will finally present it to the Board for approval. HR budget will also be reviewed by HRRC Committee.
02. Fixed Assets will be procured only with approval of CEO and CFO. All investments will be made within the approved policy parameters. IMC reviews investment report every month and the BOD is informed on the performance accordingly. No BOD approval is
required for increase in prices by Automobile Companies.

03. All purchase of IT equipment having capital, and revenue (value above Rs. 5,000) nature will be subject to recommendation of HOD IT. Supply Chain to ensure compliance of the same. IT will inform Finance immediately for insurance cover for all IT Equipment
and SC will inform Finance for insurance cover of all Office/ Electrical Equipment. The concerned department must fill "Fixed assets Disposal Form" duly approved for both Fixed assets auctioned and Insurance claim received. Further, for school furniture, approval
of CFO and EVP Ops is required, where asset have not yet consumed its 60% useful life. Furthermore, no land/building is disposed without prior-written recommendation of atleast 3 Founder members and approval of the Board of Directors.

04. Limit authorization for additional work will depend as given in S. # 1. In case funds for additional work is not budgeted exceeding Rs. 1 million , Engineering will submit proposal through CFO to get approval from BOD.
05. Board to be informed simultaneously.
06. For opening & closing bank account, Board resolution will be required from Board or as delegated by the Board.
07. To be signed by the CEO, unless signing authority has been delegated by CEO to any particular employee of TCF.
08. Unless Joint approval is specifically mentioned, Approving Authority of EVP/CFO/VP will be for their reporting departments' transaction only. In exceptional circumstances, approval from other EVP/CFO can be taken. Note that in Joint approvals, CFO approval is
included to ensure procedural/legal compliance, however, CEO has the ultimate authority to approve such transactions.
09. While exercising the above authority every HOD to ensure that their departmental expenditure do not increase over budget.
10. Advances against any expenditure would require approval as per the threshold defined for respective expenditure.
11. Any scrap sales having Opex/Capex nature must seek prior approval of CFO.
12. All STCF events will be paid subject to approval of Head of STCF or a Director with simultaneous concurrence of EVP Input of expenditure above PKR 100,000 only.
13. No authorized signatory will sign any cheque of any amount issued in his/her name.
14. In case of any VP reporting directly to the CEO, his/her authority limits will be upto EVP level (for DFA purposes only).
15. For any clarification please take guidance from CFO or Financial Controller as appropraite. Whenever, there will be change in laws, CEO and CFO will arrange to revise the DFA and circulate to all.

Khwaja Bakhtiar Ahmed Syed Asaad Ayub Ahmad

CFO President & CEO

Page 6 of 6