As a matter of good business practices and fiscal responsibility, UALR operates under a set of standard procedures and internal controls. To further solidify the university’s responsible fiscal practices, the Signature Authority Delegation for University Financial Transactions and Documents policy was adopted on March 25, 2013.
Internal controls are put in place to ensure that no single employee is authorized to both approve a commitment of funds and to authorize the processing of payments. This new policy details the university’s significant controls that are in place to ensure funds availability and property approvals in the following areas: payroll expenditures; requisitions for purchase; P-Card purchases; travel expenses; contracts, agreements, and MOUs; and construction contracts. Most of these controls have been in place as standard operating procedures and were simply formalized into this policy.
The one exception is the procedures for contracts, agreements, and MOUs, which have been updated now that the university has a contract review manager on staff. The purpose of the update was to ensure that all contracts are properly reviewed and authorized by the administration. According to this policy, “All university contracts, agreements (including professional service contracts, international student exchange agreements, and software license agreements), as well as MOUs that contain vendor specified terms and conditions are initially reviewed by the contract review manager.”
Allen Stanley, UALR’s contract review manager, reviews these documents for all required language and impermissible clauses. If necessary, complex agreements are submitted to the university’s legal counsel for review. Once the document complies with all state laws and board policies, it is executed by the chancellor or the vice chancellor for finance and administration. It is important to note that no other campus employees are authorized to sign on behalf of the university. Allen may be reached at 501.569.3363 or email@example.com to assist with this process or to answer questions on the correct procedures.
In conclusion, this policy provides a sound internal control environment with clearly defined authority on who can obligate the university with external parties and approve financial transactions for the university. A copy of the policy is located at ualr.edu/policy under the “Administration” section.