D-150 Designation of Authorized Signature

This Policy provides guidelines for the appropriate delegation of signature and approval authority for all contracts entered by the College. The proper authority for execution of binding contracts, grants, and memoranda of understanding with external entities is mandatory to minimize financial, legal, operational, and compliance-related risks for the benefit of the College.

The signature authority policy identifies minimum review and approval processes but does not relieve any academic or administrative department from ensuring that any unusual or unique agreements are properly reviewed and authorized by appropriate levels of college administration.

This Policy applies to all Employees whether full-time or part-time. Independent contractors and consultants do not have the authority to bind the College. An Employee who signs a contractual or grant commitment that they are not authorized to sign can be held personally liable for the commitment.

POLICY OVERVIEW

Given the extensive variety of contracts required during normal college business, the determination of appropriate signature authority and related requirements can be complex. All Employees should be aware that the authority to execute contracts depends on the nature and complexity of the agreement, appropriate consultation with other offices that might be affected by the agreement, and appropriate signature authority.

The broad categories of contracts below are governed by this Policy, and are summarized below:

• Agreements and Contracts

• Procurement

• Grants

• Memoranda of Understanding

• Articulation Agreements 

• Marketing and Sponsorship Agreements

• Lease or Rental Agreements

This Policy is supplemented by those procedures and accompanying forms specific to the nature of the activity, e.g., purchase agreements are subject to the policies and procedures of the College Business Office.

DELEGATION OF AUTHORITY

The District Board has delegated transaction authority to the President/District Director to approve any transaction that does not specifically require District Board action.

The President/District Director has delegated authority to the Vice President of Finance and College Operations/CFO to contract for goods, services, equipment, and rental of facilities so long as the transactions comply with the law and relevant college policies. The President/District Director has the authority to designate in writing other Employees to sign on behalf of the College. Copies of the signed authorization are kept in the Business Office.

All individuals with signature authority must complete an adequate review of proposed transactions before committing to the College. Additionally, these individuals are responsible for determining whether:

• The transaction complies with all applicable laws, college policies, and procedures, as well as sponsor, donor, or any other restrictions.

• The resources (funding, personnel, facilities, and space) required to fulfill the contractual or grant commitment have been budgeted and are available. If resources are not available, the individual responsible for generating the contract must ensure through the appropriate level (President/District Director or Supervising Executive) that resources will be made available.

• An assessment has been made of the likely impact of the transaction on other offices or individuals at the College, and appropriate consultation has taken place with constituencies that might be involved in the transaction or contract.

• Any real or apparent conflict of interest exists on the part of the individual or organization involved in a transaction, as provided by college policies. Where such a conflict exists, the individual must declare and resolve the issue before a transaction or contract can be executed.