The Non-Compensation Approval Authorization Policy supersedes the Signature Authorization Policy. This policy sets out the approval authorizations and procedures required for processing financial transactions within the University. The policy seeks to provide for efficient operations of the University and promote effective internal controls by outlining guidelines as to the appropriate approval authority required for non-compensation transactions utilizing internally or externally funded resources.
Compensation expenditures should follow the Personnel Action Approval Authorization Policy.
This policy does not address review, approval of or signatures necessary to enter into a contract for Covered Goods and Services with an outside entity. (See Purchasing Policy.) This policy does not address the delegation of authority for executing contracts on behalf of Drexel University or its affiliates. (See Delegation of Authority Policy.)
This policy applies to all Drexel University Faculty and Professional Staff Members, and Student Workers. To the extent any transaction in this policy relates to a Volunteer or Unpaid Intern, or any other category of Non-Employee Associate, this policy relates to those individuals only to the extent of documenting their status in the University.
Implementation of this policy is the responsibility of the Office of the Comptroller.
- ADMINISTRATIVE OVERSIGHT
The Executive Vice President, Treasurer and COO is the Drexel University official responsible for the administration of this policy.
The Office of the Comptroller is responsible for establishing a sound internal control environment. Part of this responsibility is ensuring that any approval of financial transactions is made by an authorized individual. Approval authority differs from contract approval authority. The approver confirms that the financial transaction is appropriate but only a Faculty or Professional Staff Member with contract authority (See Purchasing Policy) or who has been delegated the authority to execute a contract as per the Delegation of Authority Policy can execute the transaction on behalf of the University.
All individuals who are involved in financial transactions within the University have a fiduciary responsibility to safeguard the assets of the institution and ensure the integrity of its accounting records. The approval of a financial transaction attests to its completeness, accuracy, and validity. System-executed transactions must carry evidence of approval in the form of the unique user id of the approver or some other auditable means of identification.
An electronic or written signature must evidence the approval of all financial transactions. An authorized approver must submit a signature specimen at the time of initial authorization to be kept on file in an electronic database managed by the Office of the Comptroller.
To add, change or cancel non-compensation approval authority on one or more funds, a Fund Request Form must be completed and submitted to the Comptroller's Office. To assign, change or cancel expenditure approval authority on one or more orgs, an Org Request Form must be completed and submitted to the Comptroller's Office.
If an authorized approver transfers to another department or division, or other changes occur that affects their non-compensation approval authority responsibilities, the Comptroller's Office should be immediately informed using the appropriate request forms.
Authority for accounting activities required to reconcile or cover deficits at fiscal year-end, such as corrective reversals and deposits, will be completed by the appropriate functional area (General Accounting, Budget and Planning, Bursar's Office) with timely notification to the affected parties.
Approval authority: Permission given to expend budgeted university resources. This approval authority attests to the appropriateness of the transaction within the University's program objectives and budgetary authorizations.
Faculty Member: Defined as an individual employed by Drexel University in a tenured, tenure-track or non-tenured track position who teaches at any college, school, center or institute in the University. A Faculty Member also is deemed to be exempt under the provisions of the Fair Labor Standards Act (FLSA) and/or applicable state law.
Authorized Approver: An individual who has the authority to approve the type of financial transaction in question, the authority to approve the amount in question (where applicable) and authority over the relevant cost center.
Internal Financial Transaction: Any exchange involving the transfer of money or property, currently or in the future, from or to the University. An internal financial transaction involves the spending of University funds. Examples of internal financial transactions include: Purchase Requisitions, Check Requests, Service Department Charges, Travel and Expense Reimbursements, Petty Cash Reimbursement, Journal entries to correct transactions or move funds to cover deficits may be completed by the appropriate functional area with notification to the impacted department.
Non-Employee Associate: An individual who is not an employee of the University, such as a staff volunteer, independent contractor, visiting research professor, volunteer faculty member, or other person who will not be paid by the University, but needs access to Drexel online accounts or facilities.
Principal Investigator: A holder of a grant administered by the University and the lead researcher for the grant project.
Professional Staff Member: Defined as an individual employed in any non-faculty category by Drexel University, including an individual who is deemed to be either exempt or non-exempt under the provisions of the Fair Labor Standards Act (FLSA) and/or applicable state law.
Student Worker: An individual who is working in a part-time capacity for a department within the University at a undergraduate or graduate level and is enrolled at least part-time in courses at the University.
- All internal financial transactions must be approved by an authorized approver.
- For each authorized approver to approve a financial transaction, a document must be on file in the Comptroller's Office containing a specimen of his/her signature, the maximum approval amount, and the funds, orgs and accounts over which he or she has approval authority. This information will then be housed within a central database accessible to the University community, including links to signature specimens.
- Business units have options when designing approval authority for their area. At minimum each fund or org must have one approver at the SSR100 to expend budgeted resources.
The following are descriptions of the approval level designations: