Financial Transaction Approval Authority
Procedure Number: 5.1.10-P
Current Effective Date: 01/01/2018
Original Effective Date: 01/01/2007
Revision Dates: 01/01/2007, 07/01/2011, 10/01/2017
Revision Number: 3
Responsible Official: Director of Financial Module System
To outline KCTCS financial transaction approval, authority, and responsibility.
This procedure applies to all KCTCS employees.
The person responsible for the budget (budget manager), unless delegated in writing to another party, must approve expenses and sign the financial transaction document for expenses placed to their budget.
To document the budget approver locally, a Signature Authority Form (BC1) shall be on file at the college for college personnel and System Office for System Office personnel.
- Where an auditor signs as the approver in lieu of the person responsible for the budget, a Signature Authority Form (BC1) shall be filed with the college’s business office where the approvers are below the college cabinet level.
- Cabinet level positions (College or System Office) shall have a Signature Authority Form (BC1) on file with the KCTCS Office of Business Services for all persons being delegated.
All delegations must be in writing; see Business Procedure 5.1.9-P (Delegation of Financial Approvals).
Individuals cannot approve financial transaction documents payable to themselves (i.e. travel or other reimbursement).
- The employee’s immediate supervisor and/or higher level supervisor must approve the payment.
An original signature approval is required, unless electronic signature is present via KCTCS’ PeopleSoft electronic workflow process.
The responsible person has direct oversight for ensuring that each financial transaction charged and posted to their budget is consistent with policies and regulations and is reflective of the appropriate expenditure account.
Transaction documents that do not require approval at a level higher than the responsible person or minimum approval level may be submitted directly to the appropriate offices for final processing (unless otherwise directed by System Office or College procedure).
Transaction documents that require approval at a level higher than the responsible person will be submitted to the appropriate next in line office for processing.
All transaction documents requesting the procurement of goods or services must comply with any purchasing requirements as defined in Business Procedure 5.4.1-P.
4. Delegation of Financial Approval Authority
The KCTCS President or a College President/CEO may delegate the financial approval authority listed in this procedure to other staff in their organization as specified in Business Procedure 5.1.9-P.
5. Title Definitions - College and System Office
The following titles are defined for purposes of compliance to financial transaction approval at the Colleges:
- Budget Manager - a person designated as being in charge of a specified budget.
- Office Head - a system office management position that reports directly to a KCTCS cabinet member.
- Campus Chief Administrative Officer - a campus director reporting to the College President/CEO.
- College Dean/Vice President - the officer in a College functional area normally reporting to the College President/CEO, such as Student Affairs Officer, Business Affairs Officer, etc.
- College President/CEO - the Chief Executive Officer of a college.
6. Additional Approval Levels
Approval levels listed in Section 7 are at the minimum executive approval level. A. Lower levels of approval are required as a part of the workflow process prior to the requisition being processed and the purchase order being made.
If the requisitioned item is a piece of capital equipment at the $200,000 threshold or greater, the item would have to be included with KCTCS’ biennial budget request and listed as approved to be purchased in the biennial appropriations bill.
- KCTCS is prohibited from acquiring any capital equipment items in an amount that exceeds $200,000 without prior approval by the Kentucky General Assembly.
- In such an instance where the funding for the equipment is funded by private or federal funds at greater than 50 percent of the cost, the purchase may proceed but must be reported to the Capital Projects and Bond Oversight Committee.
- For reporting purposes the Office of Financial Services should be informed of the plan to purchase the equipment prior to a requisition being processed.
A College President/CEO or KCTCS cabinet member may require a higher level of approval other than the minimum approval level listed below. A. Additional levels required must comply with Business Procedure 5.1.9-P.
7. Financial Transaction Approval Levels
The following transactions are non-capital. See capitalization business procedure 5.3.13-P for capital approval process.
|Transaction Documents||Lowest Levels of Review and Assigned Responsibility||Final Approval|
|Guest speaker fees including honorarium up to $5,000||College Chief Administrative Officer, Dean or Office Head at the System Office||College President/CEO or KCTCS Cabinet Member|
|Guest speaker fees including honorarium > $5,000||College President/CEO or KCTCS Cabinet Member||KCTCS Vice President of Administrative Services|
|Relocation expenses||Chancellor (prior approval required)||KCTCS Vice President of Administrative Services|
|Other transactions including requisitions less than $5,000||Budget Manager||Budget Manager|
|Other transactions including requisitions between $5,000 and $40,000||Budget Manager||College Chief Administrative Officer, College Dean/Vice President, Office Head – System Office or as identified by the College President/ CEO or KCTCS Cabinet Member|
|Other transactions including requisitions between $40,000 and $99,999||Campus Chief Administrative Officer, College Dean/Vice President, Office Head – System Office||College President/CEO or KCTCS Cabinet Member|
|Other transactions, excluding requisitions, greater than $100,000, but less than $1,000,000. (See “7.2” below.)||College President/CEO or KCTCS Cabinet Member||KCTCS Vice President of Administrative Services|
|Other transactions, excluding requisitions, greater than $1.0 million. (See “7.2” below.)||College President/CEO reviews and recommends to KCTCS Vice President of Administrative Services who then reviews and recommends to the KCTCS President||KCTCS President|
Requisitions equal to or greater than $100,000 require the approval in PeopleSoft workflow of the KCTCS Vice President of Administrative Services and are required to be reported to the KCTCS Office of Financial Services.
- KCTCS Office of Financial Services is to determine if General Assembly approval or reporting is required.
For administrative expediency purposes the KCTCS President has the authority to delegate the approval of withholding and tax remittances such as garnishments, liens, payroll benefits, other withholding payments, and procurement card service provider payments as may be necessary (regardless of the dollar amount) to ensure compliance, continuity of business and expediency in provision of benefits or services provided KCTCS.
- In such instances, the KCTCS President’s delegation may then be delegated to at the lowest reasonable level of assurance for internal controls for the payments to be processed timely and without interruption.
8. Additional Reviews
Additional review(s) and authorization may be requested from time to time as necessary for internal and external reporting purposes.