An authority matrix, also known as a responsibility matrix or RACI matrix, is a tool that defines and communicates the roles and responsibilities within an organization, specifically related to financial and administrative activities. It clarifies who has the authority to make decisions, perform tasks, and be held accountable for specific actions.

Building an authority matrix for financial and administrative functions helps clarify roles, streamline decision-making processes, promote accountability, and enhance overall efficiency and effectiveness in these areas. It provides a clear framework for employees to understand their responsibilities and authority, thereby improving organizational governance and control.