Proposal to raise minimum Management Group Claim
DPCS (James Cox) – 28/10/2016
Decisions Required
- Increase cap of claim value before Management Group Approval is required
- Agree on acceptable cap increase
Context
Currently:
When a club submits a claim of <£20, the club authorisers can approve expenditure to go directly to
ICU Finance to be paid.
Claim by student (<£20) -> Approved by Club Chair -> ICU Finance
When a club submits a claim of >£20, it has to be approved at management group level
Claim by student (£20-£1000) -> Approved by Club -> Approved by Management Group -> ICU
Finance
Claim Frequency (y) vs. Claim Value (x) for
2015/16
30000
25000
20000
80, 16801
70, 15900
60, 14772
50, 13371
40, 11251
30, 9163
Frequency of Claims 15000
10000
20, 6490
5000
10, 2605
0
0
200
400
600
800
1000
1200
Value of Claim (£)
Figure 1: Graph of Claim Frequency vs. Claim Value, claims are concatenated into buckets of £10 and represent all
management groups in the 2015/16 period
Benefits of change:
- The group of ~20 Management Group authorisers, who volunteer their time for free, will
have decreased administrative commitments.
o Changing the cap to £50 will decrease the number of small claims processed by
volunteers by ~7000. In essence, MG authorisers will have to authorise ~½ of total
claims rather than ~¾.
-
The members of the union will have a decreased lag time for relatively small claims
o It was mentioned at CSP Finance that some clubs breakdown big claims into small
chunks so they don’t have to wait for it to pass to MG level.
o The organisation pays bank fees relating to the number of transactions, raising the
cap would change the culture surrounding claim chunks and decrease total costs
(however minimal they may be)
Potential negative considerations
- Decreasing the number of authorisers for expenditure may increase business risk. However,
I argue that the increase is small compared to the benefit of streamlining the claims process.
Indeed, ICU Finance sees all claims regardless of the process. Secondly, club chairs who
approve expenditure have already signed financial responsibility forms and have training in
club expenditure.
Recommendations
- Increase cap of minimum claim value before Management Group consideration to £50
Appendix
Claim Frequency (y) vs. Claim Value (x) (log x
axis)
30000
25000
20000
80, 16801
70, 15900
60, 14772
50, 13371
40, 11251
30, 9163
Frequency of Claims 15000
10000
20, 6490
5000
10, 2605
0
1
10
100
Value of Claim (£)
1000