university sealEditor's notes:

POLICY TITLE: Policy for Authority to Commit the University

DATE OF ISSUANCE: This policy was approved by the Board of Trustees on May 17, 1999 and modified by the Board on May 19, 2008. It was last modified on October 2, 2008.

ACCOUNTABLE DEPARTMENT/UNIT: Questions on policy content should be directed to the vice president and chief financial officer.

ABSTRACT: This policy establishes authority to execute contracts, licenses and documents for capital projects and the purchase or sale of real estate, and other significant commitments.

MISC: See also Authorized Signatures for Agreements, Contracts, Licenses


Policy for Authority to Commit the University

Purpose

This policy establishes authority to execute contracts, licenses and documents for carrying out capital projects and the purchase or sale of real estate, and other commitments where the item (or series of related components) is significant.

Policy Statement

The Board of Trustees delegates authority to the president to authorize capital projects, the purchase or sale of real estate, lease agreements and other contracts with a present value of $5 million or less without further action by the Board of Trustees, provided that such costs are covered by identified revenues or reserves, and that such obligations do not require debt financing.

The Board of Trustees delegates authority to the president or the provost to authorize all subcontracts and purchase orders required for implementing sponsored projects.

If the value of a capital project, real estate purchase or sale, or the present value of a contract or lease exceeds $5 million, or if the commitment requires debt financing, authorization by the Board of Trustees or the Executive Committee shall be required. The administration shall present to the Executive Committee any commitments in excess of $5 million that were included in the Board of Trustee-approved budget for informational purposes.

The president, provost, vice president and chief financial officer, vice president for research, associate vice president for research, vice president for campus affairs, treasurer, and/or their designees (any designation must be in writing and approved by one of the authorized signatories), are authorized to execute documents, contracts, licenses and leases as authorized by the president for obligations of $5 million or less, or as approved and authorized by the Board of Trustees or the Executive Committee for obligations greater than $5 million (which shall include a series of related components or phases). Expenditures using flow-through funds are excluded from the requirement for Board approval.

Contact

Questions concerning this policy or its intent should be directed to the vice president and chief financial officer.



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