Financial Transaction Approval Authority | KCTCS

Administrative Procedures

Financial Transaction Approval Authority

Policy 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

Revision Summary:

Responsible Official: Director of Financial Module System

References:

1. Purpose

To outline KCTCS financial transaction approval, authority, and responsibility.

2. Scope

This procedure applies to all KCTCS employees.

3. General

3.1

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.

3.2

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.

  1. 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.
  2. 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.

3.3

All delegations must be in writing; see Business Procedure 5.1.9-P (Delegation of Financial Approvals).

3.4

Individuals cannot approve financial transaction documents payable to themselves (i.e. travel or other reimbursement).

  1. The employee’s immediate supervisor and/or higher level supervisor must approve the payment.

3.5

An original signature approval is required, unless electronic signature is present via KCTCS’ PeopleSoft electronic workflow process.

3.6

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.

3.7

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).

3.8

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.

3.9

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

4.1

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

5.1

The following titles are defined for purposes of compliance to financial transaction approval at the Colleges:

  1. Budget Manager - a person designated as being in charge of a specified budget.
  2. Office Head - a system office management position that reports directly to a KCTCS cabinet member.
  3. Campus Chief Administrative Officer - a campus director reporting to the College President/CEO.
  4. 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.
  5. College President/CEO - the Chief Executive Officer of a college. 

6. Additional Approval Levels

6.1

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.

6.2

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.

  1. KCTCS is prohibited from acquiring any capital equipment items in an amount that exceeds $200,000 without prior approval by the Kentucky General Assembly.
  2. 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.
  3. For reporting purposes the Office of Financial Services should be informed of the plan to purchase the equipment prior to a requisition being processed.

6.3

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

7.1

The following transactions are non-capital. See capitalization business procedure 5.3.13-P for capital approval process.

 Approval Levels
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

7.2

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.

  1. KCTCS Office of Financial Services is to determine if General Assembly approval or reporting is required.

7.3

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.

  1. 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

8.1

Additional review(s) and authorization may be requested from time to time as necessary for internal and external reporting purposes.