Financial Delegation of Authority | KCTCS

Administrative Procedures

Financial Delegation of Authority

Policy Number: 5.1.9-P

Current Effective Date: 01/01/2018

Original Effective Date: 07/01/2011

Revision Dates: 07/01/2011, 07/01/2012, 10/01/2017

Revision Number: 3

Revision Summary:

Responsible Official: Director of Financial Module System

References:

1. Purpose

To outline KCTCS’ financial delegation of authority.

2. Scope

This procedure applies to all KCTCS employees.

3. General

3.1

The KCTCS System President is authorized by the KCTCS Board of Regents to enter into agreements and authorize payments on behalf of KCTCS.

  1. The KCTCS President delegates this financial authority to certain administrative officers of KCTCS.

3.2

Even though signatory or approval authority may be delegated below the final levels of responsibility, the assigned officer remains fully responsible for all transactions executed under the delegated authority.

4. Delegations Authorized by Business Procedures 5.1.10-P & 5.1.11-P

4.1

A college president/chief executive officer (CEO) has absolute delegation authority within a college.

4.2

Delegations may be granted to individuals allowing the delegated employee to delegate to a lower level.

4.3

Approval Authority for Contracts and Agreements:

  1. The KCTCS President has been delegated specific authority which cannot be delegated to a lower level for approving contracts for certain services and/or activities as follows:
    1. Bond Indentures
    2. Endowments
    3. Contracts between KCTCS, as a system, and other universities or state or local government agencies.
  2. The KCTCS President has delegated definitive authority for approving the following specific contracts to the KCTCS Vice President of Administrative Services which cannot be delegated by the Vice President of Administrative Services to a lower level:
    1. Banking
    2. Insurance
    3. Real Estate Purchases or Leases
    4. Easements
    5. Architectural and Engineering Services
    6. Capital Construction
    7. Hazardous Waste Disposal
    8. Personal Service Contracts, regardless of amount. (See Business Procedure 5.4.12-P)
  3. The KCTCS President has delegated definitive authority for approving specific transaction documents to selected administrative officers of KCTCS.
    1. These officers may delegate approval authority by submitting a Delegation of Authority Form (BC1 – Signature Authority) to the KCTCS System Director of Business Services.
    2. For audit and record keeping, the KCTCS System Director of Business Services’ Office is the repository office.

4.4

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.

  1. In such instances, the KCTCS President’s delegation may then be delegated to the lowest reasonable level of assurance for internal controls for the payments to be processed timely and without interruption.
  2. The KCTCS Vice President of Administrative Services or delegated agent will be responsible for final review and approval of all payments as to the appropriateness of documentation and adherence to policies, procedures, and regulations.

 

5. Delegation of Time Sheet Approval

5.1

KCTCS timesheet approval is the responsibly of the employee’s immediate supervisor.

  1. Timesheet approval utilizes the PeopleSoft approval workflow.
  2. If an employee’s supervisor is unavailable to approve timesheets, he/she may notify Payroll via email and the next higher-level supervisor will be given electronic authority to approve the employee’s timesheet.
  3. A formal delegation of authority form (BC1) must be completed and submitted to Payroll to delegate approval authority to another supervisor.
  4. Downward delegation of authority to approve timesheets is not permitted.

6. Delegation of Travel Expense Report Approval

6.1

A travel expense report must have:

  1. The approval of the employee’s supervisor.
  2. The approval of the person responsible for the budget to which the travel expense is being charged, if that person is different than the supervisor.

6.2

The designated reimbursement auditor within the business unit who can verify the accuracy of the charge to the particular budget, may serve as the budget approver.

  1. To document the budget approver locally, a Signature Authority Form (BC1) must be on file at the college for college personnel and System Office for System Office personnel.
  2. To document the reimbursement auditor approving in lieu of the person responsible for the budget to where the expense will be charged, a Signature Authority Form (BC1) must be filed with the KCTCS System Director of Business Services’ Office with the type of authority clearly marked in Part I of the form.
  3. The KCTCS System Director of Business Services will forward a copy of this delegation to the KCTCS Reimbursement Auditor for purposes of auditing travel expense reports for proper signature authority approval.

6.3

If an employee’s supervisor is unable to approve travel expense reports, then the next higher-level supervisor of the employee must approve the employee’s travel expense report.

  1. A formal delegation of authority form is not required for verification of the travel, but is required for the responsible person who has been delegated the budget to which the travel will be charged.
  2. It is the responsibility of the business unit to which the traveler is an employee to ensure compliance to this procedure.

6.4

The KCTCS System Director of Business Services is delegated to approve travel expense reports of College CEOs. 

  1. KCTCS Director of Business Services further delegates authority to the college chief business officer to sign the supervisor portion of the request for travel and then the travel expense reports for the College CEO before they are forwarded through the college reimbursement auditor to the System Office for final approval and payment.

6.5

The KCTCS Vice President of Administrative Services is delegated authority to approve travel expense reports for members of the KCTCS cabinet.

6.6

Out-of-State travel approval may be delegated on Form BC1 (Signature Authority).

6.7

Out-of-Country travel is delegated to the KCTCS Chancellor per Business Procedure 5.8.1-P.

7. Delegation of Procurement Card Statement Approval

7.1

The approval of the procurement cardholder’s statement is the responsibility of the employee’s immediate supervisor and cannot be delegated except as stated below:

  1. If an employee’s supervisor is unable to approve an employee’s procurement card statement, then the next higher-level supervisor of the employee must approve the statement.
  2. A formal delegation of authority form is not required for verification of the items purchased, but is required by the responsible person who has been delegated the budget to which the charges are posted.
  3. It is the responsibility of the business unit to which the procurement card user is an employee to ensure compliance to this procedure.

7.2

The KCTCS Vice President of Administrative Services is delegated to approve procard statement vouchers for members of the KCTCS cabinet.

8. Delegation of PeopleSoft Workflow Approval

8.1

KCTCS currently uses PeopleSoft workflow approval process for purposes of internal control and audit documentation.

  1. A formal Delegation of Authority (BC1) Form must be submitted to the KCTCS System Director of Business Services’ Office with the approval level clearly marked in Part IV of the form. 
  2. Delegated approval must meet the requirements and approval levels as stated in Business Procedure 5.1.10-P.

9. Permanent Delegation of Authority

9.1

A permanent delegation of authority for signatory and approval may be delegated to persons under the direct supervision of the responsible person.

  1. Examples of such delegations are to allow an individual to exceed the approval levels as stated in Business Procedure 5.1.10-P or to have another individual, not listed in the procedure authorize expenditures. 
  2. In such instances, a formal Delegation of Authority (BC1) Form must be submitted to the KCTCS System Director of Business Services’ Office with the type of authority clearly marked “permanent” in Part I of the form.

10. Temporary Delegation of Authority

10.1

Business travel and meeting requirements may dictate, at times, that an officer with approval authority is occasionally unavailable to approve transaction documents.

  1. The officer may delegate on a temporary basis the authority to approve financial transactions and documents.
  2. Even though signatory or approval authority is delegated below the minimum levels of responsibility, the assigned officer remains fully responsible for all transactions executed under the delegated temporary authority.

10.2

The delegation form must provide the dates of the temporary delegation and the type of transactions or documents included.

10.3

When documents are submitted (i.e., travel) and a temporary delegation has been approved, the approval document of that temporary delegation should be attached to the submitted document for audit purposes.

11. Cancelled Delegation of Authority

11.1

The delegating authority must notify the KCTCS System Director of Business Services in writing that a delegation has been cancelled (Email notification will suffice).

11.2

It is the responsibility of the person granting the original delegation to ensure that delegations are active and current.

11.3

To ensure delegations are current, units are strongly encouraged to regularly review personnel changes and make updates to the delegation of authority on a regular basis (not less than quarterly).

12. Authenticity of Signatures

12.1

Each member of the KCTCS cabinet must submit a Delegation of Authority Form BC1 (Signature Authority) to provide signature authenticity.

12.2

Each college CEO must submit a Delegation of Authority Form (BC1) to provide signature authenticity.

12.3

Delegation of authority forms (BC1) for college CEO’s and the KCTCS cabinet are to be submitted to the KCTCS Office of Business Services.

12.4

Delegation of authority forms (BC1) for approvers below the cabinet level (College or System Office) are to be retained at the KCTCS Office of Business Services as applicable.

13. Delegation of Authority Form - Instructions

13.1

Signature Authority Form (BC1), must be completed and signed by both the delegating authority and the individual that the authority is being delegated.

  1. After the delegation form is completed, the original should be forwarded to the college business office, and as necessary to the KCTCS System Director of Business Services, with the submitter retaining a copy.

13.2

The Signature Authority Form (BC1) should be completed as follows:

  1. Print names of delegation grantor and grantee.
  2. Complete Part I – Type of Delegation.
    1. Signature Authenticity (See Section 10 and 11)
    2. Permanent Delegation
    3. Temporary Delegation (specific time period)
    4. Delegation for all financial forms
  3. Complete Part II – Specific Forms.
    1. List forms allowed if all forms in Part I were not selected.
  4. Complete Part III – Accounting Information.
    1. List accounting chartfield information that the employee is delegated to approve.
  5. Complete Part IV – PeopleSoft Workflow Approval Delegation.
    1. All approvers must be established as a PeopleSoft user with a valid sign-on.
    2. List the business unit and approval level that is being delegated to the user by specific module.
  6. Signatures – Two signatures required:
    1. Signature of Delegating Authority
    2. Signature of the Employee receiving Delegated Authority and date