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PAI Section1. Preparatory ActionsPAI No.1.03Paragraph No/s.2Q/A No.0203
QUESTION:
    This refers to note 1 under para. 2 of PAI 1.03 about VPs' approval authority for TAs. a. It is stated in the 3rd and 4th line that the rolling operations business plans, whether approved separately or attached to the CPS and so on. To my understanding, a rolling business plan is prepared after a CPS is endorsed. Is there any case where rolling operarions business plans are attached to CPS or other similar documents? b. The board paper R225-02 authorized the President to assign to VPs the appropriate levels of authority to approve TAs. However, the President retained approval authority for TAs that are not included in the CSP/CSPU. Following this Board decision, the memo from the President to VPO1 and VPO2 dated 30 May 2003 was issued to give some TA approval authority to the VPs. However it only covered TAs included in CSP/CSPU. Replacement of CSP by CPS caused ambiguity of such approval authority of VPs. It is not clear whether we can interpret the Board Paper and the memo so as to replace CSP/CSPU with rolling business plans. What is the legal ground for asserting that VPs have authority for approval of TAs included in rolling business plans? c. TAs included in CSP/CSPU will sitll be processed for the time being. I suggest reference to TAs included in CSP/CSPU should be retained.
ANSWER:
    For question a. COSO is not aware of a case We suggest you check with SPD and/or front office of each RD. However, we understand that there may be such cases given the mention in para 2 of the memo issued by the President dated on 16 Aug. '06 titled "Assignment to Vice Presidents to Approve Technical Assistance". For question b, based on the memo mentioned above, the President approved VPs' authority to approve the TAs categorized in the memo based on the SPD's proposal dated on 16 Aug. '06 titled Assigning Vice Presidents Authority to Approve Technical Assistance. The PAI reflect the President's approval. For question c, we appreciate your suggestion and understand SPD is preparing an OM regarding the points raised (interdepartmental circulation is scheduled in the week stating 19 Feb. '07. Upon OM finalization, COSO will revise concerned PAI sections.