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 aims to provide a clear and structured process for assessing, approving, and documenting capital expenditure requests.

• Identify Capital Expenditure Request

  Gather all necessary details regarding the capital expenditure request, including the purpose, amount, and timeline for the expenditure.

• Evaluate Project Justification

  Review the justification for the capital expenditure. Ensure that it aligns with organizational goals and provides a clear benefit.

• Conduct Cost-Benefit Analysis

  Perform a cost-benefit analysis to assess the financial viability of the proposed capital expenditure against its expected return.

• Review Budget Impact

  Check how the capital expenditure will impact the current budget and whether it falls within approved budget limits.

• Obtain Necessary Approvals

  Seek approval from relevant stakeholders, including department heads and finance managers, as per the organization's policy.

• Document Approval Process

  Ensure that all approvals are documented, including any conditions or comments from reviewers, for future reference.

• Finalize Expenditure Allocation

  Once approved, finalize the allocation of funds and communicate the decision to relevant parties involved in the project.

• Monitor Expenditure Progress

  Establish a procedure for monitoring the actual expenditure against the budget allocated and report any discrepancies.