Capital Expenditure Approval Checklist ( FINANCE )

This checklist is designed to ensure that all necessary steps are followed for the approval of capital expenditures within the organization. It helps in maintaining financial discipline and accountability for large investments.

• Identify Capital Expenditure

  Determine which purchases or investments qualify as capital expenditures based on the company's capital expenditure policy.

• Prepare Capital Expenditure Proposal

  Create a detailed proposal outlining the purpose, benefits, costs, and anticipated return on investment for the capital expenditure.

• Initial Review by Department Head

  Submit the proposal to the department head for an initial review and feedback before proceeding with further approvals.

• Financial Assessment

  Finance department conducts a financial analysis of the proposal to assess its feasibility and alignment with budgetary constraints.

• Risk Assessment

  Evaluate potential risks associated with the proposed expenditure and document risk mitigation strategies.

• Final Approval from Senior Management

  Submit the proposal along with reviews and assessments to senior management or the board for final approval.

• Document Approval and Notify Stakeholders

  Once approved, document the decision and notify all relevant stakeholders to proceed with the capital expenditure.

• Monitor and Review Post-Expenditure

  After the expenditure is made, monitor the implementation and review its impact on the organization's financial performance.