Signature Delegation Presented by Lucia Anderson

1. Policy Training Program for the Lifecycle of an Account Signature Delegation Presented by Lucia Anderson

2. Upon completion of this course you will be able to: Explain where delegations originate Explain the dual role in signature delegations List forms business office staff are authorized to sign Explain process of auditing a document before signing Define “allowable”, “allocable” and “reasonable” Explain routing of documents Course Objectives

3. Indiana General Assembly established Purdue University in 1869. Governance of Purdue is vested in a 10-member Board of Trustees. They have established by-laws Outlines the duties of the Treasurer Introduction

4. Comptroller Delegations • Central office staff and the Business Management areas can receive delegations of $2,500 or $50,000 • Comptroller: Up to $500,000 • Vice President and Assistant Treasurer: Up to $1,000,000 • Executive Vice President for Business and Finance and Treasurer: Up to $2,000,000 • Board of Trustees: Over $2,000,000

5. Academic or Unit Approval Comptroller SPS Academic/Comptroller/SPS Signature Delegation

6. Academic signature delegations are governed by Executive Memorandum C-10, “Delegation of Administrative Authority and Responsibility to Officers Reporting to the President of the University”. The Department Head is responsible for programmatic and financial activities. Dean or Department Head may delegate signature authority on their behalf to the Director of Financial Affairs, Business Manager, business office support members or staff members in the case of central offices. Delegation is made through the Business Office Form 0009. Academic/Unit Delegation

7. What does the delegation include? Determined by Department Head, Dean or Director Could be based on dollar limits or specific types of transactions Exclusions dependent on needs and wants of the unit head must be documented and on file in the department. Academic/Unit Delegation

8. Forms that a Business Office person should not sign: SPS Transmittal Check Sheet/Proposals Equipment screening Subcontract payments All leave documents, including Form 17’s Employment contracts Overload authorizations Personnel Activity Reports (PARS) Request for Notice to Proceed (Form 27) Outside Activity Form (Form 32A) Cost sharing commitments Conflict of Interest Disclosure Form 0009 Fellowship Form 90

9. Comptroller/SPS Delegation for Business Management Area • Delegated by Comptroller • Delegated by Director of SPS • Delegation is made via the form CSSD to the Comptroller and copied to SPS • Delegation records maintained by Costing

10. What does the delegation include? Business Office staff with Comptroller/SPS delegation have authority to sign for procurement of goods and services, except for payments to individuals*, up to their delegated dollar limit – regardless of the purchasing mechanism used. * Travel reimbursement <$500 Comptroller/SPS Delegation

11. Comptroller/SPS Delegation • Is it allowable?...and are funds available? • Is it reasonable and necessary? • This can be tricky! • Is it allocable? • Do you have evidence that someone with firsthand knowledge determined that the purchase benefited a particular project, or the department paying for the purchase?

12. A Dual Role • Must be certain what each signature means • They are different • Business Managers frequently are delegated both roles

13. Departmental Review • Fund/fund center is valid (not expired) • Funds are available • Correct GL account is used • Appropriate supporting documentation is attached – which supports the expenditure • Academic/Unit head approvals are obtained

14. Departmental Review, cont’d • Comptroller review – allocable, allowable, reasonable – and signature on backup documentation • Are additional signatures required, based on dollar limit, commodity or funding source? • SRM purchases – ensure that all approvers are in the routing path • Equipment purchases > $25,000 require an equipment screening if the funding source is federal funds, including subs using federal funds

15. Comptroller Review • Direct invoice vouchers for Personal Service payments; payments over $50,000; and vouchers without a comptroller signature. • Approve payments to individuals outside of payroll process • Assure payment should not be handled through payroll • Procurement orders over $50,000 or those without a comptroller signature • Review includes • Compliance with applicable laws and University policy • Exception items • Assure document is “audit ready”

16. SPS Action Items • Reviews all procurements > $50,000 • Form 44 for voluntary support administrators in SPS

17. SPS Action Items • Leave of absence forms when SPS funds are used to cover salary during the leave • Fellowship Appointment Form 90 • Form 17 involving foreign travel on all SPS funds except for NIH and NSF

18. Compliance with A-21, A-110, CAS, etc. Expenditures are within project period Funds are available Audit Review

19. Institutional Memberships If a current membership exists, sign for the Comptroller and forward to Accounting If processing a new membership, forward to the Director of Financial Affairs. May require other approvals depending on dollar amount. Personal/individual memberships are now allowable with Dean’s approval. Memberships – New Process

20. Payment of Approved POs • Accounts Payable processes all invoices received against the purchase order. • Must be received in SAP • Departmental business offices should retain the packing slip as backup documentation

21. Form 26 Review • Requires Department Head and Comptroller review • Route to Purchasing

22. Form 26

23. Form 26 Review

24. Requires an academic signature to approve the travel activity on line 20. Business office should sign on line 19. Source of funds. If travel is on SPS funds, sign on the “Signature of SPS Reviewer” Form 17 Review

25. Routing the Form 17 • Domestic Travel • No further routing is needed regardless of funding source • International Travel • If non-SPS funds are used, route to Dean • If SPS funds are used, route to Dean and SPS • Note: not required for NSF or NIH funds • Route to International Programs for countries with US Department of State travel warning for review and signature. Line 21

26. Form 17

27. Form 17

28. Form 25 Payments of approved travel expenses require department head and business office review. If you have department head authorization, and comptroller authorization up to $500, you may sign as both. Sign on the appropriate lines, then forward to Disbursements

29. Departmental Review, cont’d • Travel reimbursements (form 25) • Reconcile to form 17 • Review for adherence to travel policies • Correct per diem • Mileage • The traveler has signed the certification

30. Form 25

31. Form 25

32. Don’t sign it until you are. Call someone and talk it over. Business Manager Director of Financial Affairs Accounting Costing SPS Not Comfortable With It?

33. Business Office Form 0009 http://www.purdue.edu/account/pdf/Form0009.pdf EVP&T Memo A-35 http://www.purdue.edu/business/Executive_Memoranda?EVPT/a-35.html Bylaws of the Trustees of Purdue University Amended November 10, 2006 Resources

34. Questions?