Section 2.2 - Approval of Financial Documents
Date: November 2010
Approved: Senior Associate Vice President for Business and Finance
The University Comptroller is the general fiscal (financial) officer of the Board of Trustees and has authority to approve for the Board all expenditures the Board makes for a general or specific appropriation. The University Comptroller also has general authority to execute contracts for the Board. These authorizations are subject to certain conditions and requirements outlined in The General Rules Concerning University Organization and Procedure (General Rules.)
The General Rules also provides for the delegation of these authorities. To provide for the orderly transaction of University business, the following is used in the approval of financial documents for all state and non-state funds.
Purchases
Professional Services
Purchases less than $1,000,000 - The approval authority for purchases less than $1,000,000 is delegated to the Executive Assistant Vice President (EAVP) for Business and Finance at UIC, Assistant Vice President (AVP) for Business and Finance at UIUC, and the Chief Business Officer (CBO) at UIS who may further delegate authority and issue pertinent guidelines.
Purchases of $1,000,000 or more - The EAVP (UIC), AVP (UIUC), and CBO (UIS) refer all transactions of $1,000,000 or more for professional services to the University Comptroller, by way of the Senior Associate Vice President for Business and Finance, as a recommendation to the Board of Trustees for approval.
Purchases for Capital Programs of $1,000,000 or more - The EAVP (UIC), AVP (UIUC), and CBO (UIS) refer transactions of $1,000,000 or more for professional services for capital programs to the University Comptroller, by way of the Senior Associate Vice President for Business and Finance.
Commodities, Equipment, and Services other than Professional Services
Purchases of less than $1,000,000 - The approval authority for purchases of less than $1,000,000 is delegated to the EAVP (UIC), AVP (UIUC), and CBO (UIS) who may further delegate authority and issue pertinent guidelines.
Purchases of $1,000,000 or more - The EAVP (UIC), AVP (UIUC), and CBO (UIS) refer all purchases of $1,000,000 or more to the University Comptroller, by way of the Senior Associate Vice President for Business and Finance, as a recommendation to the Board of Trustees for approval.
Purchase Orders and Change Orders
Purchase orders - The Director of Purchases or delegates sign all purchase orders and issue them upon proper approval of the purchase, except where limited purchasing authorization has been assigned to a particular unit (see Section 7.2, Purchase of Goods and Services).
Change orders - Change orders related to medical center operations that exceed 25 percent of the original Board approved contract or purchase agreement, and change orders that are not related to the medical center operations that exceed 5 percent of the original Board approved contract for construction or professional services or original Board approved purchase agreements for supplies or equipment, will be reported to the Board at its next scheduled meeting but will not require prior authorization of the Board.
Emergency Board Approval Purchases
Presidential approval of emergency transactions less than $1,000,000 - Upon recommendation from the University Comptroller, the President may approve purchases less than $1,000,000 that require immediate action before the next Board of Trustees meeting and report the action to the Board.
Presidential approval of emergency transactions equal to or greater than $1,000,000 and less than $2,000,000 - the President shall make a reasonable effort to consult with individual members of the Executive Committee of the Board before giving this approval.
Presidential approval of emergency transactions of $2,000,000 or more - the President shall make a reasonable effort to consult with all Board members before giving this approval.
Approval of Exempt Purchases
The Director of Purchases considers a buyer's recommendation before approving the purchase of items exempted from the bidding procedure by the Board of Trustees.
In unusual cases, the approval of the EAVP (UIC), AVP (UIUC), and CBO (UIS) is obtained and, if necessary, the approval of the University Comptroller by way of the Senior Associate Vice President for Business and Finance.
Approval of Emergency Purchases without Sealed Bids
The appropriate approvals must be obtained to place a purchase order for any item more than $53,700 that is not exempt from sealed bid procedures under the Purchasing Act (see Section 7.1, Purchasing Operations).
The Director of Purchases also prepares, on the same date the order is written, an affidavit in accordance with Section 20.30 of the Illinois Procurement Code. The affidavit is immediately sent to the University Comptroller, by way of the Senior Associate Vice President for Business and Finance, with a copy to the EAVP (UIC), AVP (UIUC), and CBO (UIS). The University Comptroller signs the affidavit and mails it to the State Auditor General within ten days of the emergency action.
Loan, Lease, and Lease-Purchase of Equipment
Agreements covering loan or leasing of equipment to University departments are signed by the EAVP (UIC), AVP (UIUC), and CBO (UIS). The agreement should follow the approval requirements outlined in this section.
Lease or Purchase of Data Processing Equipment
Any lease or purchase of data processing equipment and related software or telecommunications equipment valued at $25,000 or more must include additional approvals from the Associate Vice President of Administrative Information Technology Services (for administrative use) or the director of the campus computing coordinating office (for research and instructional use). All telecommunications equipment, including cellular phones, must also be approved by the campus telecommunications coordinator.
Licenses and Permits
Nuclear Regulatory Commission (NRC) license application form (UIUC only) - This form is co-signed by the Director of Purchases and the chair of the campus Radiation Hazards Committee, based upon the recommendation of the Radiation Health Physicist and the Radiation Hazards Committee, as required.
Vehicle licenses, title applications, and other licenses or permits are approved by the EAVP (UIC), AVP (UIUC), and CBO (UIS) or delegate.
Power of Attorney (Freight Forwarder)
All individual transactions relating to the Power of Attorney are signed in the University Comptroller's name by the EAVP (UIC), AVP (UIUC), and CBO (UIS) or delegate.
General Restrictions on Delegation of Signatures
Executive Assistant Vice President for Business and Finance (UIC), the Assistant Vice President for Business and Finance (UIUC) and the Chief Business Officer (UIS) - Purchase recommendations may be signed by the EAVP (UIC), AVP (UIUC), and CBO (UIS), or may be delegated by them to no more than two persons. No delegation be made to the campus Director of Purchases or anyone reporting to him/her.
University Comptroller - Unless specifically provided, all recommendations, leases, and other purchasing matters directed to the University Comptroller are routed by way of the Senior Associate Vice President for Business and Finance or delegate.
Signatures - Employees are to sign their own names except where the University Comptroller's signature is required.
Contracts and Leases
Execution - Except where specific exemptions have been made by the Board of Trustees, all contract documents, to which the University is a part, are executed by the University Comptroller and attested to by the Secretary of the Board after approval by the originating campus unit and the University or campus Legal Counsel. (See the General Rules, Section 4(g), Award and Execution of University Contracts)
A fully executed contract is required before the services are performed.
Filing - After contracts, leases, and change orders are signed, the original document is forwarded to the Board of Trustees Office at the UIUC campus for recording, imaging, and reporting. They are then filed for safekeeping by the Board of Trustees' Office.
Construction, Capital Projects, and All Contracts Not Otherwise Covered Herein
Contracts less than $50,000/change orders less than $25,000 - The approval authority for contracts less than $50,000 and change orders for less than $25,000 is delegated to the EAVP (UIC), AVP (UIUC), and CBO (UIS) and may be further delegated as necessary under guidelines issued by him/her.
Contracts of $50,000 or more/change orders of $25,000 or more - All contracts of $50,000 or more and all change orders of $25,000 or more (except Job Order Contracting) are referred to the University Comptroller via the Assistant Vice President for Business and Finance.
- The University Comptroller may approve contracts of projects with budgets below $500,000 and change orders $250,000 or less within the budget and scope of the approved project.
- Approval of the Board of Trustees is required for the following:
- Budgets for individual capital projects of $2,000,000 or more
- Professional service contracts related to capital projects of $150,000 or more
- Construction contracts of $500,000 or more
- Change orders more than $250,000.
Job Order Contracting (JOC) - The Director of the Physical Plant (UIC), the Director of Physical Planning and Operations (UIS), or the Director of the Operation and Maintenance Division (UIUC) may approve any single JOC project up to $250,000.
Use of University forces - University forces may be used for minor alterations, repairs, and construction work (other than painting and regular ongoing maintenance).
For all projects costing less than $250,000 - The Director of the Physical Plant (UIC), the Director of Physical Planning and Operations (UIS), or the Director of the Operation and Maintenance Division (UIUC) determine whether the work is done by University forces, Job Order Contracting, or competitive bidding. For projects under the bid limit, the Directors may request the Office of Business and Financial Services, Purchasing Division to issue purchase orders if outside contractors are used.
For projects costing $250,000 or more but less than $500,000 - The work is normally done by outside contractors on specific competitive bids. However, if exceptional circumstances are present that justify using University forces, and it is considered in the best interest of the University, the Director of the Physical Plant (UIC), the Director of Physical Planning and Operations (UIS), or the Director of the Operation and Maintenance Division (UIUC) may approve any single project up to $500,000.
Reporting - All projects costing $150,000 or more, but less than $500,000 on each campus must be reported to the University Office for Capital Programs, with a copy to the EAVP (UIC), AVP (UIUC), and CBO (UIS), on a quarterly basis. The report must identify the contracting method (for example, JOC, University forces, etc.) used on each project in addition to other key data elements.
Outside Sponsored Programs (Including Research Contracts)
Proposals - Contracts and grant proposals must be approved by all persons listed on the proposal routing form. The proposal is transmitted to the agency by the Office of Business and Financial Services, Grants and Contracts Office over the transmitter's signature. If the contracting agency requires a University Board Officer's signature, the transmittal is signed in the University Comptroller's name by the person authorized to sign (see "Delegation of Signatures" in this section).
Contracts - Contracts are executed in the name of the University Comptroller by the person authorized to sign (see "Delegation of Signatures" in this section).
Sponsored projects, which have an objective of establishing new instructional programs, new formally organized research, or public service units (that is, cost centers or institutes) and meet the criteria for the State of Illinois Board of Higher Education approval, are reported specifically to the Board of Trustees and approved by the Board of Higher Education.
Acceptances of grants and other documents relating to contracts and grants may be signed by authorized employees in the name of the University Comptroller (see "Delegation of Signatures" in this section).
All research and sponsored program contracts, subcontracts, and change orders of $250,000 or more are reported to the Board of Trustees.
Leases or Contracts for Student or Employee Housing
Leases or contracts for student or employee housing are signed by the Director of Campus Services (UIC), Director of Housing and Residential Life (UIS), and the Director of Housing (UIUC). Copies are retained by the originating office on behalf of the Board of Trustees.
Land Acquisition, Land Disposal, and Easements
Prior Board authorization is required for the following:
- Acquisition of property located outside approved campus Master Plan boundaries at the Chicago and Urbana-Champaign campuses
- Condemnation of property
- Sale or exchange of property (except gift properties, where authorization is delegated to the University Comptroller)
The University Comptroller is delegated authority for the following:
- Acquisition of property within approved campus Master Plan boundaries, consistent with practices and law
- Sale of gift properties and any personal property acquired
- Reasonable relocation assistance costs to an owner occupant
- Granting of all easements
- Other leases
Lease of real estate and office space - The approval procedures outlined under "Construction, Capital Projects, and All Contracts Not Otherwise Covered Herein," in this section are followed. Prior Board authorization is required for leases where the annual rental costs, exclusive of operating costs, are $100,000 or more. The University Comptroller has full authority for lease amendments and renewal increases. The dollar limitation applies to the annual rental of the lease extended beyond one year.
Delegation of Signatures
Authorization to sign University Comptroller's name - All contracts prepared for the University Comptroller's signature are signed in the University Comptroller's name by employees authorized in writing by the University Comptroller. A list of employees authorized to sign the University Comptroller's name and what documents they are authorized to sign is available from the Office of the Senior Associate Vice President for Business and Finance and the EAVP (UIC), AVP (UIUC), and CBO (UIS).
Copies signed - Normally, not more than five (UIC) and three (UIS, UIUC) copies are signed manually. Additional machine reproduced copies are made after signatures of all parties have been obtained.
Unit Approval for Expenditures
Authority
The University Comptroller authorizes all expenditures and executes all contracts for the Board.
A variety of business documents, initiated by the heads of budgetary units, are for the expenditure of funds. The signature or approval of these business documents by unit personnel certifies that, to the best of their knowledge, the transaction is a proper one and that in signing they are accepting responsibility for it. (A proper transaction is one that complies with published rules and guidelines, as outlined in Section 7, Purchasing, Section 8, Accounts Payable, and Section 15, Employee Business Travel, and is based on common business practice.) Based on this certification the Office of Business and Financial Services, on behalf of the University Comptroller, enters into agreements, and authorizes expenditures or transfer of funds.
Normally, the signature or approval of the head of the budgetary unit is necessary on business documents. This signature authority may be delegated to others (see Section 2.1, Signature Authority). Additional signatures or approvals are often necessary as indicated in this and other guidelines.
Conflict of Interest
Authorized certifiers/approvers of University business transactions cannot approve their own documents or transactions and documents or transactions payable to their immediate supervisor, the supervisor's business or the supervisor's immediate family. In addition, authorized certifiers or approvers cannot approve documents or transactions which are payable to, or on behalf of:
- Individuals where a conflict of interest would be perceived
According to University policy, situations involving "conflict of interest" may take various forms, but arise when an employee is or may be in a position to influence University business, research, or other decisions in ways that could lead to any form of personal gain for the employee or the employee's family, or give improper advantage to others to the University's detriment. (See Section 9.8, Gifts to Employees.)
- Family members
Documents and transactions should be reviewed and authorized by an independent person at an appropriate authority level to ensure that transactions are approved without undue influence and to avoid the appearance of a conflict.
According to University policy, "family includes an individual's spouse, parents or children."
(See also Section 7.2, Purchase of Goods and Services and Section 8, Payments and Reimbursements for conflict of interest guidelines relating to contracts and payments.)
Travel
Traveler certification - The travel certification on all travel vouchers must be signed personally by the traveler (payee).
Approval of vouchers - Employees may not approve their own travel voucher. Travel vouchers for the head of a unit, as a rule, are approved by the head of the next supervisory administrative unit or delegate.
Approval for the President, Members of the Board of Trustees, and the Chancellors - The Vice President for Administration (VPA) or his delegates, the Senior Associate Vice President for Business and Finance (SAVP) and the EAVP (UIC), AVP (UIUC), and CBO (UIS) approve travel reimbursement requests on behalf of, and for, the President of the University and members of the Board of Trustees. The VPA delegates approval of travel reimbursement requests for the Chancellors to the EAVP (UIC), AVP (UIUC), and CBO (UIS). If an AVP is not available to review a travel reimbursement request for a Chancellor, the VPA, SAVP or EAVP may review and approve the request.
Approval Delegation for the Chancellors - Chancellors may delegate their approval authority for travel reimbursement requests.
Personal Services
Employees may not approve their own payroll documents. Payroll documents for the head of a unit, as a rule, are approved by the head of the next supervisory administrative unit or delegate.
Goods, Contractual Services and other Expenditures
Procurement Card - The Office of Business and Financial Services authorizes units to use the Procurement Card (P-Card), a MasterCard from JPMorgan Chase, to purchase supplies and equipment based on the cardholder's approval and use criteria as established by the cardholder's unit. Cardholders are responsible for proper use of the card, obtaining receipts for purchases, and for logging orders in the P-card system. A department card manager (DCM), designated by the department, is responsible for managing the cardholder application process in his/her department, the approval limits and ensuring that P-Card holders have received appropriate training for use and security of the P-Card. See Section 7.6, P-Card 
for additional information on the P-Card program.
Requisitions - The Office of Business and Financial Services enters into a purchasing agreement with a vendor based on a properly approved purchase requisition (or, when authorized, a properly approved unit direct purchase). The Office of Business and Financial Services also authorizes payments to vendors for goods and services received and charges the funds indicated without additional approvals.
Incidental charges in connection with a purchase (for example, freight, toll charges, interest penalties, etc.) may be paid and charged to unit funds without additional approvals. Specific approval requirements are outlined in Section 7, Purchasing.
Miscellaneous payments - The Office of Business and Financial Services authorizes payments based on properly approved vouchers. These vouchers may be for the purchase of goods or services, travel, or any other purpose for which an appropriation has been made. In signing these vouchers unit heads are certifying that the goods or services have been received and that, to the best of their knowledge, the charge is a proper one to the funds indicated. Employees may not approve their own reimbursement.
Stores and service transfers - Stores and service transactions are between a unit and the stores or service unit. Stores and service units have several ways of obtaining department approval to provide goods or services and to charge unit funds. The Office of Business and Financial Services authorizes the transfer of funds (expenditures) based on appropriately certified transfer vouchers submitted by stores or service units. In submitting transfer vouchers, heads of stores or service units are certifying that:
- They have delivered the goods or services according to University policies.
- They have approval from the unit to charge the funds indicated.
- The funds are proper for disbursements for the goods/services provided.
Journal entry transfers - Occasionally the Office of Business and Financial Services may authorize the transfer of funds (expenditures) based on the terms of a grant contract agreement (such as, indirect cost recovery) or another University policy (for example, administrative charges).
Sponsored Projects and Federal Appropriated Funds
Sponsored projects and federal appropriated funds often require additional approvals to charge funds. Requisitions, vouchers, and other business documents are to have these additional approvals before submission to the stores or service unit or the Office of Business and Financial Services for processing and payment.
Signatures On Vouchers and Checks
Vouchers to the State Comptroller
Board officer's approval - All vouchers submitted to the State Comptroller must be signed by or affixed with the signatures of the Chair and Secretary of the Board of Trustees.
Machine affixed signatures - The EAVP (UIC), AVP (UIUC), and CBO (UIS) delegate employees to operate the check signing machines used to affix the signatures. The Secretary of the Board or delegate periodically verifies the signature log.
Signature cards - A state signature card must be on file in the State Comptroller's Office that provides specimen signatures to the State Comptroller for the persons authorized to affix the machine signature to vouchers, or to sign the name of the Chair of the Board of Trustees and the Secretary of the Board of Trustees.
Handwritten signatures - Employees authorized to sign or affix the Chair's and Secretary's signatures to vouchers must also sign their own names to the vouchers.
Checks on University Funds
Board officer's approval - All checks presented for payment from University funds must carry the signatures of the Chair and Secretary of the Board of Trustees, unless otherwise authorized.
Handwritten signatures - Employees, as authorized by the Chair and Secretary of the Board of Trustees, must also sign their names to checks.
Machine affixed signatures - The EAVP (UIC), AVP (UIUC), and CBO (UIS) and the Secretary of the Board delegate employees to operate the check signing machines used to affix the signatures.
Campus Funds Checks
Campus Bursar Fund (UIC) - The signature (or machine facsimile signature) of the University Comptroller is required. The Executive Assistant Vice President for Business and Finance (UIC), the Assistant Vice President for Business and Finance (UIUC) and the Chief Business Officer (UIS) delegate who may sign. One signature must be filed with the State Comptroller.
Campus Imprest Fund (UIUC) - Two signatures are required: one for the Director of Student Financial Services and Cashiering Operations and one for the University Comptroller. The EAVP (UIC), AVP (UIUC), and CBO (UIS) delegate who may sign. Two signatures must be filed with the State Comptroller.
Signatures on Letters Of Credit
Signatures on letters of credit are as authorized by the University Comptroller by way of the Senior Associate Vice President for Business and Finance or delegate.
Delegation of Signatures
University Comptroller - Unless provided otherwise in this section, all vouchers, checks, warrants, and letters of credit directed to the University Comptroller are routed via the Senior Associate Vice President for Business and Finance or delegate.
University Investments
Authorizations By Finance and Investment Committee
Authority - Purchases and sales of securities are as authorized by the Finance and Investment Committee of the Board of Trustees.
Military Property Custodian (UIUC Only)
All papers regarding military property are signed in the name of the Military Property Custodian by the campus Manager of Central Stores and Receiving (who is the custodian) or by an Assistant Director of Purchases.
Tax Returns
University-Wide
The EAVP (UIC), AVP (UIUC), and CBO (UIS) are delegated to sign for the University Comptroller:
- Monthly, quarterly, and annual tax returns
- 1099 Reports, or reports to state or federal government for withholding or excise taxes (single report for entire University).
Campus
All other tax returns and declarations prepared for a single campus are signed only by the Executive Director of University Accounting and Financial Reporting or delegates.
Insurance
Proof of loss form - Proof of loss forms, where the University agrees to release an indemnifying company for a settlement of the University's claim, may be signed by the University Comptroller or delegate.
Insurance contracts - Insurance policies, endorsements, and riders that require the signature of the University Comptroller are signed by the University Comptroller or delegate.
Approval of Delegations of Signatures
(Signature Cards)
Departments - The EAVP (UIC), AVP (UIUC), and CBO (UIS) are authorized to sign his/her own name for the University Comptroller in approving the delegation of signatures for departments.
University Administration (including all units of business office) - The EAVP (UIC), AVP (UIUC), and CBO (UIS) are delegated to sign for the University Comptroller in approving the delegation of signatures for University Administration, including all units of the Office of Business and Financial Services.
Organization Fund Checks
The rules establishing the Organization Fund allow the University Comptroller to serve as Treasurer with authorization of the Board of Trustees, but without responsibility or liability to the Board of Trustees. Organization Fund checks are signed by the Treasurer and the Secretary of the Fund or delegates. The University Comptroller has delegated the EAVP (UIC), AVP (UIUC), and CBO (UIS) to act as Treasurer of the respective Organization Fund on each campus.
Delegation of signatures - Employees authorized to sign their own name for the Treasurer:
- Chicago campus (two signatures required in the name of the University Comptroller)
Executive Assistant Vice President for Business and Finance
Director of Accounting
Assistant Directors of Accounting
Director of Budgets and Contracts
- Urbana-Champaign campus (one signature required in the name of the University Comptroller)
Assistant Vice President for Business and Finance
Director of Accounting
Associate Director of Accounting
Please send questions regarding this policy manual to OBFSPolicies@uillinois.edu.
Last Updated: July 12, 2012