My interpretation has always been the same as Mrs G's. If you have a DoF in place you let him get on with it up to whatever budget you set. If it's £70M and he wants to spend it in one player that's his prerogative. I'm sure Sully will go with this approach because if it all goes pear shaped he can just spread his hands and say "I'm just doing what you all wanted and how did that pan out".
My gut feeling is that although we've appointed a DoF, Sully will still have the final say in individual negotiations which is a huge worry; little may have changed.
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But the new dude will be the one presenting the list of players based on his judgment / contacts etc, this is what he brings.