1 Signature Delegation Training Presented by: Lucia Anderson January 2009

2 Objectives: 4Learn where delegations originate 4Understand the dual role in signature delegations 4Know which forms business office staff are authorized to sign 4Know how to audit a document before signing 4Know what “allowable”, “allocable” and “reasonable” mean

3 Objectives - cont’d 4Understand the routing of documents 4Leave with a working knowledge of the various signature delegations

4 Introductory Comments zIndiana General Assembly established PU in zGovernance of PU is vested in a 10 member Board of Trustees zThey have established by-laws yOutlines the duties of the Treasurer

5 Comptroller Delegations zCentral office staff and the Business Management areas can receive delegations of $2,500 or $50,000 zComptroller: Up to $250,000 zVice President and Assistant Treasurer: Up to $500,000 zExecutive Vice President for Business and Finance and Treasurer: Up to $2,000,000 zBoard of Trustees: Over $2,000,000

6 Academic/Comptroller/SPS Signature Delegations 1)Academic or Unit Approval 2) Comptroller 3) SPS

7 Academic/Unit Delegation 4Academic signature delegations are governed by Executive Memorandum C-10, “Delegation of Administrative Authority and Responsibility to Officers Reporting to the President of the University.” 4The Department Head is responsible for programmatic and financial activities. 4Dean or Department Head may delegate signature authority to the Director of Financial Affairs or Business Manager, or staff member in the case of central offices. 4Delegation made through the Business Office Form 0009

8 What does the delegation include? 4Determined by Department Head, Dean or Director 4Could be based on dollar limits or specific types of transactions 4Exclusions dependent on needs and wants of the unit head - needs to be documented

9 Forms that a Business Office person should not sign: 4SPS Transmittal Check Sheet/Proposals 4Equipment Screening 4Subcontract payments 4All leave documents, including Form 17’s 4Employment Contracts 4Overload authorizations 4Personnel Activity Reports (PARS) 4Request for Notice to Proceed (Form 27) 4Outside Activity Form 32 4Cost sharing 4Conflict of Interest Disclosure. 4Form Fellowship Form 90

10 Comptroller/SPS Delegation for Business Management Area 4Delegated by Comptroller 4Delegated by Director of SPS 4Delegation is made via the form CSSD to the Comptroller and copied to SPS 4Costing maintains records of staff with these delegations

11 What does the delegation include? “Business Office staff with Comptroller/ SPS delegation have authority to sign for procurements of goods and services, except for payments to individuals*, up to their delegated dollar limit - regardless of the purchasing mechanism used.” * Travel reimbursements <$500

12 Comptroller/SPS Delegation 4Is it allowable?…and are funds available? 4Is it reasonable and necessary?  This can be tricky! 4Is it allocable?  Is there evidence that someone with firsthand knowledge determined that the purchase benefited a particular project or the department paying for the purchase?

13 A Dual Role 4Must be certain what each signature means - they are different 4Business Managers frequently assume both roles

14 Departmental Review 4Fund/fund center is valid (not expired) 4Funds are available 4Correct GL account is used 4Appropriate supporting documentation is attached - which supports the expenditure 4Academic/Unit head approvals are obtained

15 Dept. Review - cont’d 4Comptroller review - allocable, allowable, reasonable - and signature on back-up documentation 4Are additional signatures required based on dollar limit? 4SRM purchases – review that all approvers are in the routing path 4Equipment purchases > $25,000 require an equipment screening if the funding source is federal funds, including subs using federal funds. 4Form 25 to Accounting Services

16 Comptroller Pre-audit 4Direct 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 4Procurement orders over $50,000 or those without a comptroller signature 4Review includes:  compliance with applicable laws and University policy  exception items  assure document is “audit ready”

17 SPS Action Items 4Reviews all procurements > $50,000 4Form 44 for voluntary support administered in SPS.

18 SPS Action Items - cont’d 4Leave of absence forms when SPS funds are used to cover salary during the leave. 4Fellowship Appointment Form 90 4Form 17 involving foreign travel on all SPS funds except for NIH and NSF

19 Audit Review... 4Compliance with A-21, A-110, CAS, etc. 4Expenditures are within project period 4Funds are available

20 Memberships: 4Check on line for current listing of memberships 4https:// 4If a current membership exists, sign for the Comptroller and forward to Accounting 4If processing a new membership, forward to the Director of Financial Affairs. Other approvals may be required depending on dollar amount. 4No personal/individual memberships 4Mark the Invoice Voucher as a new or a renewal membership

21 Payment of Approved P.O.’s 4With the implementation of SAP, Accounts Payable processes have changed 4Departmental business offices should retain the packing slip as back up documentation

22 Form 26’s 4Require Department Head and Comptroller review

Form 26

24 Form 17 4Requires an academic signature to approve the travel activity 4Business office should initial next to the department head line after auditing for comptroller review 4If travel is on SPS funds, sign on the “Signature of SPS Reviewer”

Form 17

26 Routing of the Form 17 4Domestic Travel  No further routing is needed no matter which funding source is used 4International Travel  If non-SPS funds are used route to Dean  If SPS funds are used, route to Dean and to SPS -special note… not required for NSF or NIH funds.  Route to International Programs for countries with US Department of State travel warning

27 Form 25 4Payments of approved travel expenses require department head and business office review. 4If you have department head authorization, and comptroller authorization up to $500, you may sign as both. 4Sign on the appropriate lines, forward to Disbursements

Form 25

29 Not Comfortable With It? 4Don’t sign it until you are. 4Call someone. Talk it over.  Business Manager  Director of Financial Affairs  Accounting  Costing  SPS

30 Resources zBusiness Office Form 0009 yhttp:// zEVP&T Memo A-35 yhttp:// nda/EVPT/a-35.html zBylaws of the Trustees of Purdue University – amended November 10, 2006

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