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.
Gather all necessary details regarding the capital expenditure request, including the purpose, amount, and timeline for the expenditure.
Review the justification for the capital expenditure. Ensure that it aligns with organizational goals and provides a clear benefit.
Perform a cost-benefit analysis to assess the financial viability of the proposed capital expenditure against its expected return.
Check how the capital expenditure will impact the current budget and whether it falls within approved budget limits.
Seek approval from relevant stakeholders, including department heads and finance managers, as per the organization's policy.
Ensure that all approvals are documented, including any conditions or comments from reviewers, for future reference.
Once approved, finalize the allocation of funds and communicate the decision to relevant parties involved in the project.
Establish a procedure for monitoring the actual expenditure against the budget allocated and report any discrepancies.