Docstoc

Signing Authority - Policy

Document Sample
Signing Authority - Policy Powered By Docstoc
					                                                                                        Policy


TITLE: SIGNING AUTHORITY

POLICY STATEMENT:
The Board of Governors of Red Deer College delegates its signing authority to the President of
the College and authorizes the President to further delegate her/his signing authority to
designated officers for the purpose of the ordinary course of business of the College.

PURPOSE:
This Policy is designed to outline the responsibilities for those individuals who have signing
authority and to outline the conditions under which signing authority may be delegated.

Signing authority levels are established with specific financial limits (see Appendix A) for
signing invoices, requisitions, transfers, non-personnel contracts and agreements and other
financial disbursements to ensure that RDC funds are dispersed in a manner reflecting sound
financial controls.

SCOPE:
This Policy and the procedures associated with it apply to the Board of Governors, the
President and all employees and officers of Red Deer College.

PRINCIPLES:
Red Deer College is committed to protecting legal and financial interests and reputation of the
institution.

All transactions authorized on behalf of the Board will be in accordance with the College’s
policies and in adherence with Laws of Canada and the Province of Alberta and all legislative
guidelines.

DEFINITIONS:
Contract: Any arrangement, written or verbal, that creates a legally binding commitment for the
College; can include, but is not limited to any written document resulting from this agreement.

Signing authority: Legal power delegated by the Board of Governors of Red Deer College
through the President of Red Deer College to organizational positions appointing them as
agents of the College to perform transactions and execute contracts.

Signing Officer: Officer or representative vested with the powers to commit Red Deer College
to a binding agreement.

Total value: Value of a contract or agreement over its term and any extensions thereof.




Signing Authority                                                                         Page 1 of 8
GUIDELINES:
  1. Only designated college positions and the Chair of the Board of Governors may be
     authorized a signing officer.

     2. Signing authority is delegated to positions, not individual persons.

     3. On an annual basis, all individuals in positions with signing authority are required to sign
        the “Signing Authority Compliance Form” (Appendix B) indicating that they have
        reviewed the indicated policy documents, that they understand those policies, and that
        they agree to comply with those policies. They must also provide a sample signature to
        Financial Services.

     4. The Board and the President shall retain the residual power to contract on behalf of
        RDC in relation to any and all Agreements of whatever nature, notwithstanding the
        delegation of authority conferred upon the signing officers.

     5. No person may sign any document that creates an obligation or undertaking on behalf
        of the College, unless:
            a. That contract has been reviewed and approved in accordance with the Contracts
                Policy (under development), and
            b. That individual has signing authority at the level appropriate to the total value of
                the transaction and/or contract type (see Appendix A)
            c. The individual authorizing a transaction has authority on the budget and/or
                College area affected by that transaction

     6. The President, Executive Vice President Academic, Vice President College Services
        and Chief Financial Officer are authorized to execute any college transactions when the
        designated signing officer is not available to sign or when the total value of the
        transaction exceeds any other signing authority.

     7. Transactions with unspecified monetary value that create a commitment on behalf of the
        College for a period greater than three years are approved by the respective Leadership
        Team member.

     8. Final approval for partnership agreements resides with the Executive Vice President
        Academic, Vice President College Services or the President. Ongoing accountability for
        the management of the partnering relation is the responsibility of the respective
        Leadership Team member.

     9. Lease and rental agreements that persist for a period greater than 1 month are
        reviewed and approved / signed by the Chief Financial Officer and/or the VP College
        Services.

   10. The following are authorized to affix the RDC Corporate Seal to Agreements binding the
       College:
           • Chair of the Board of Governors
           • President
           • Executive Vice President Academic
           • Vice President College Services
           • Chief Financial Officer


Signing Authority                                                                          Page 2 of 8
   11. Chief Financial Officer is the only officer with the authority to open bank account(s) in
       the name of Red Deer College.

   12. Chief Research Officer is the only officer authorized to approve research contracts.

   13. An individual’s supervisor with signing authority must approve any expense including but
       not limited to:
           • Purchasing card transactions
           • Travel and expense claims
           • Payment requests that provide any kind of personal benefit to that individual
               (e.g. memberships, subscriptions, course/conference registrations)
           • Any transaction that might involve or appear to involve a conflict of interest
               related to personal benefit of an individual.

   14. Allocation of a purchasing card to an individual does not grant signing authority to that
       individual or position.

   15. Where this Policy conflicts with another RDC Policy currently in force, this Policy
       prevails.

PROCEDURE:
  1. The respective Leadership Team member must approve requests for additions and/or
     changes for signing authority and forward to the Chief Financial Officer.

     2. Financial Services maintains a list of authorized positions and incumbents.

     3. Specimen signature sheets are used to identify the incumbent of a position to whom
        signing authority has been delegated.

     4. Officials who have signing authority may assign this responsibility to another individual
        in an acting role during periods of absence from the College.
            • This assignment must be to a position with signing authority.
            • Chief Financial Officer must be advised in writing prior to the assignment.
            • The designee will have the same signing limits as the designating official.
            • Final responsibility for expenditures authorized during this acting period will rest
                with the designating official.

RESPONSIBILITY: Chief Financial Officer

CONSULTATION FOR REVIEW: Leadership Team

POLICY REVIEW DATE: January, 2015

EFFECTIVE DATE: November 1, 2004

REVISED DATE: June 1, 2006
              September 1, 2006
              July 1, 2009



Signing Authority                                                                          Page 3 of 8
RELATED POLICIES:
  • EL-B1 General Executive Constraint
  • EL-C2 Financial Condition
  • EL-C3 Asset Protection
  • BC-1 Delegation to the President
  • BC-2 President Job Description
  • Conflicts of Interest and Mandatory Disclosure
  • Purchasing
  • Related Parties
  • Travel & Related Expenses
  • Partnering Relations with Other Organizations
  • Contracts for Research




Signing Authority                                    Page 4 of 8
                    Appendix A




Signing Authority                Page 5 of 8
                                  Delegation of Financial Signing Authority Charts



                                                                         FINANCIAL LIMIT
                                     Unlimited     Unlimited      $250,000   $50,000       $25,000       $5,000    NO VALUE
                                                    for payroll                                                    Term > 3
                                                      taxes,                                                       years
                                                     benefits,
                                                      utilities
Chair of Board of Governors             
President                               
EVP Academic                                                         
VP College Services                                                 
AVP Human Resources                                     
Chief Financial Officer                                                          
Leadership Team Members                                                                                              
Bookstore Manager                                                                            ∗             
Chair of Learning Resources                                                                  ∗             
All other signing authority                                                                                 
Table 1. Signing Authority by Financial Limit




                                                        CONTRACT TYPE
                            Banking              Investments        Leases             Partnership
                        (requires any two        (requires one   (requires one         Agreements
                           authorized              authorized      authorized
                           signatures)             signature)      signature)
President                                                                                   
EVP Academic                                                                                
VP College                                                                                
Services
Chief Financial                                                        
Officer
AVP Community              
Relations
Accounting                                            
Manager
Table 2. Signing Authority by Contract Type




∗
    For inventory holdings only



Signing Authority                                                                                    Page 6 of 8
                    Appendix B




Signing Authority                Page 7 of 8
                                    Signing Authority Compliance


          I hereby declare that I have read, understood and agree to abide by the
          following Policies of Red Deer College:

                   Conflicts of Interest and Mandatory Disclosure
                   Purchasing
                   Related Parties
                   Signing Authority
                   Travel & Related Expenses

          I understand that failure to comply with these Policies may result in loss of
          signing authority and purchasing privileges and may result in disciplinary
          actions up to and including dismissal.


          Signed this            day of            , 20     .




           (Employee Name)                                      (Signature)



          (Position Title)



          I have met and discussed these Policies, expectations and consequences with
          the above individual.



           (LT Member)                                          (Signature)

Signing Authority                                                             Page 8 of 8

				
DOCUMENT INFO