That's called 'delegating authority'. It's a Management 101 term, maybe you'll cover it next semester in bedpan community college.It's like any other business. The guy may report to her but that doesn't mean that she's involved with day to day operations or operations at all (Which people have already said that she isn't). At my job, my boss has no idea what we do daily. She trust me to do my job and if it's not correct, ill be held accountable. This is pretty standard.
She has to HAVE the authority to delegate it.
You are losing badly on this.