Hubbell Policies

AUTHORITY FOR EXPENDITURE POLICY

English

Owner : Vice President, Controller

Last Review: 2019.05.16

FIN - 04

Department: Finance

POLICY

All funding requests in excess of $5,000 for the following items must follow the Authority for Expenditures (AFE) Procedure:

• Property, Plant and Equipment (PP&E) items (inclusive of all expenses relating to installation or implementation of PP&E) • Software (initial purchase) • Leases (new & renewals) • Acquisition of a business

All expenditures of PP&E items less than $5,000 must adhere to the Signature Authority Matrix.

If the spend amount of a previously approved AFE is exceeded by 10% a supplemental AFE must be prepared for the revised total and is subject to the approval levels based on the revised total amount. The 10% threshold triggering the need for a supplemental AFE is measured separately for the Capital and Expense amounts of the previously approved AFE (i.e., If the spend associated with either Capital or Expense exceeds their previously approved amounts, then a supplemental AFE is required). Additionally, the amount Capital and Expense in an approved AFE may not be subsequently “reclassified” between those categories. (for example, a cost over -run in the Expense category of an approved AFE may not be reclassified to the Capital category, or vice versa).

Funding for restructuring activities will require an AFE and must be requested through a Special Charges AFE Template.

A link to the page containing the both the Standard AFE template and the Special Charges AFE Template can be found in the Related Documents section of this policy.

SCOPE

This policy applies to all Hubbell business units.

PURPOSE

To establish guidelines for when an AFE is required and set forth approvals and procedures to be followed prior to funds being committed or disbursed.

PROCEDURE

All requests for funding as defined in the Authority for Expenditure (AFE) Policy shall be entered into the AFE Electronic Routing System. All input fields in the AFE Electronic Routing System must be completed. The Hubbell Standard AFE Template is to be completed in its entirety and uploaded into the system. In addition to the Standard AFE Template, the Special Charges AFE Template must be used when requesting approval for restructuring costs and costs relating to strategic initiatives. A link to the page on the Wire where these templates can be found is in the Related Documents section of this procedure. Once submitted, the AFE electronic routing system will route the AFE to approvers as determined by the signature authority matrix (SAM). On a monthly basis, each Business Unit Controller or delegate is

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