Final answer:
An actual transfer of authority involves legally delegating decision-making powers and responsibilities to another person or entity, unlike merely authorizing someone to sign 'by direction'.
Step-by-step explanation:
An actual transfer of authority is a process in which a person with legal powers delegates their ability to make decisions and act to another individual or entity. This is different from merely providing authorization for someone to sign documents by direction, which does not confer the full decision-making powers or responsibilities associated with the original authority.
In the context of government or executive departments, an actual transfer of authority usually requires a legal provision or a formal procedure as indicated by the (i) authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the office of a particular department. Such a transfer is a substantive change in who wields the power to make decisions and take actions on behalf of the department or agency.