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Signature Delegation Training

Presented by: Lucia Anderson

January 2009

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Objectives:

Learn where delegations originate Understand the dual role in signature

delegations Know which forms business office staff are

authorized to sign Know how to audit a document before

signing Know what “allowable”, “allocable” and

“reasonable” mean

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Objectives - cont’d

Understand the routing of documents

Leave with a working knowledge of the various signature delegations

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Introductory Comments

Indiana General Assembly established PU in 1869.

Governance of PU is vested in a 10 member Board of Trustees

They have established by-laws Outlines the duties of the Treasurer

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Comptroller Delegations

Central office staff and the Business Management areas can receive delegations of $2,500 or $50,000

Comptroller: Up to $250,000Vice President and Assistant Treasurer: Up

to $500,000Executive Vice President for Business and

Finance and Treasurer: Up to $2,000,000Board of Trustees: Over $2,000,000

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Academic/Comptroller/SPS Signature Delegations

1)Academic or Unit Approval

2) Comptroller

3) SPS

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Academic/Unit Delegation

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 to the Director of Financial Affairs or Business Manager, or staff member in the case of central offices.

Delegation made through the Business Office Form 0009

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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 - needs to be documented

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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 32 Cost sharing Conflict of Interest Disclosure. Form 0009 Fellowship Form 90

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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

Costing maintains records of staff with these delegations

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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

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Comptroller/SPS Delegation

Is it allowable?…and are funds available?

Is it reasonable and necessary? This can be tricky!

Is 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?

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A Dual Role

Must be certain what each signature means - they are different

Business Managers frequently assume both roles

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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

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Dept. Review - cont’d

Comptroller review - allocable, allowable, reasonable - and signature on back-up documentation

Are additional signatures required based on dollar limit?

SRM purchases – review 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.

Form 25 to Accounting Services

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Comptroller Pre-audit

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”

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SPS Action Items

Reviews all procurements > $50,000 Form 44 for voluntary support

administered in SPS.

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SPS Action Items - cont’d

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

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Audit Review...

Compliance with A-21, A-110, CAS, etc.

Expenditures are within project period

Funds are available

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Memberships:

Check on line for current listing of memberships https://www.purdue.edu/account/BPM/Membership_Listing/Welcome.html

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. Other approvals may be required depending on dollar amount.

No personal/individual memberships Mark the Invoice Voucher as a new or a renewal

membership

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Payment of Approved P.O.’s

With the implementation of SAP, Accounts Payable processes have changed

Departmental business offices should retain the packing slip as back up documentation

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Form 26’s

Require Department Head and Comptroller review

Form 26

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Form 17

Requires an academic signature to approve the travel activity

Business office should initial next to the department head line after auditing for comptroller review

If travel is on SPS funds, sign on the “Signature of SPS Reviewer”

Form 17

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Routing of the Form 17

Domestic TravelNo further routing is needed no matter which

funding source is used

International 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

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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, forward to Disbursements

Form 25

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Not Comfortable With It?

Don’t sign it until you are.Call someone. Talk it over.

Business ManagerDirector of Financial AffairsAccountingCostingSPS

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Resources

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

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