Contractual Signature Authoritycontract-2

Contractual Signature Authority

Purpose:

Texas Christian University maintains a structure for contractual authority as expressed in Board of Trustees resolutions which ensure that contractual agreements are reviewed and approved by authorized university officers.  In addition, internal controls over contracts are maintained at the administrative level to ensure that university assets are safeguarded and the university’s interests are appropriately protected by the terms of the contracts.  Certain administrative delegations of authority for contractual signature approval may be made as noted in the following business procedure.

  1. Board Resolution Authority

The Chancellor and the Vice Chancellor for Finance and Administration (VCFA) have signatory authority granted by Board of Trustees resolution for all contracts.  The Chancellor is generally only asked to sign if other signers are not available. The Associate Vice Chancellor and Controller and the Assistant Vice Chancellor for Finance have signatory authority granted by Board of Trustees resolution for all contracts in the absence of and on behalf of the Vice Chancellor for Finance and Administration.  The Assistant Vice Chancellor for Finance has signatory authority granted by Board of Trustees resolution for banking, investment, and financing contracts.

  1. Financial Contracts

Banking, investment (see also Endowment Investment Contracts below), and financing contracts require two approval signatures.

  1. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
  1. A nonbinding administrative signature by the Assistant Vice Chancellor for Finance or the Associate Vice Chancellor and Controller for internal control purposes.
  1. Endowment Investment Contracts

Endowment investment contracts are reviewed and signed by the Chief Investment Officer (CIO) or the VCFA, as authorized by Board of Trustees resolution in combination with Investment Committee of the Board of Trustees authorization, while related investment custody accounts are created through the University’s treasury function as approved by the VCFA or his delegate.

  1. Endowment investment contracts require two approval signatures.

i.      A legally binding signature by the CIO or the VCFA as authorized by Board of Trustees resolution.

ii.      A nonbinding administrative signature, which will be manifest in the TCU custody account approval documentation, for internal control purposes.

  1. Real Estate or Oil, Gas, and Minerals Contracts

Real estate or oil, gas, and mineral contracts require two approval signatures.

  1. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
  1. A nonbinding administrative signature by the VCFA or the Associate Vice Chancellor and Controller for internal control purposes.
  1. Construction Contracts

Construction contracts require two approval signatures.

  1. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
  1. A nonbinding administrative signature by the Associate Vice Chancellor for Facilities or his delegate for internal control purposes.
  1. Other Contracts

Other contracts for which signature authority has not been administratively delegated as specified below are reviewed by the appropriate department and the Director of Contract Administration prior to final signature by the Vice Chancellor for Finance and Administration.

  1. Administrative Delegated Authority

All contracts for which signature authority has been delegated by the VCFA require two signatures—a legally binding signature by the VCFA’s delegate and a nonbinding administrative signature for internal control purposes.

When dollar thresholds are specified for delegated signature authority, the threshold applies to the total value of the contract, not just the annual value of a multi-year contract.

  1. Advancement

Non-cash gift acceptances require approval by the Gift Acceptance Committee prior to signature by the VCFA.

Cash gift acceptances, which do not require financial exchanges by TCU to a third party (i.e. living trust payments, etc.), require the signature of the Vice Chancellor for University Advancement or the VCFA and are not required to be approved by the Gift Acceptance Committee.

Cash gift acceptances which require financial exchanges by TCU to a third party require the signature of the VCFA.

  1. Athletics

Athletic game day contracts and related guaranteesrequire two approval signatures.

  1. A legally binding signature by the VCFA and the Director of Intercollegiate Athletics. The Director of Intercollegiate Athletics may delegate his signature authority for game day contracts and related guarantees to the Associate Athletic Director for Internal Relations for all sports except football.
  1. A nonbinding administrative signature by the Associate Athletic Director for Internal Relations. If the Director of Intercollegiate Athletics delegates signature authority for a game day contract or related guarantee to the Associate Athletic Director for Internal Relations, the contract also must have a nonbinding administrative signature by one of the other Associate Athletic Directors.

Athletic equipment contracts $5,000 and less (includes cash and in-kind exchanges such as shoes, uniforms, etc.).

a.   A legally binding signature by the Director of Intercollegiate Athletics as delegated by the VCFA.

  1. A nonbinding administrative signature by the Associate Athletic Director for Internal Relations.
  1. Computer Hardware and Software

The Vice Chancellor for Finance and Administration has delegated signature authority for renewal of licensing and maintenance contracts for existing computer hardware and software to the Chief Technology Officer. These contracts are reviewed and initialed by the Administrative Services Manager, the Technical Services Manager, or the User Services Manager, as applicable, prior to final signature by the Chief Technology Officer. Such renewals must contain no changes to the basic terms and conditions, including limits of liability and indemnification except as approved by the Director of Contract Administration. Copies of such renewal contracts must be forwarded to the Director of Contract Administration for notification of the renewal.

The Vice Chancellor for Finance and Administration must sign the initial contracts for any new computer hardware or software contracts after the contract is reviewed and initialed by the Chief Technology Officer. The VCFA also must sign any licensing and maintenance renewal contracts that contain changes to the basic terms and conditions.

  1. Library

Library materials contracts (for books, databases, journals, and associated library subscriptions) require two approval signatures.

a.      A legally binding signature by the Head of Collection Development, the Head of Acquisitions and Serials, or the Dean of the Library as delegated by the VCFA. The Associate Dean of the Library may sign license contracts.

b.      A nonbinding administrative signature by the Electronic Services Librarian.

  1. Marketing and Communication

The Vice Chancellor for Finance and Administration has delegated signature authority for billboard, advertising, and other media-buy contracts with a financial impact of $50,000 and less to the Vice Chancellor for Marketing and Communication.

  1. Research Contracts and Education Agreements

The Vice Chancellor for Finance and Administration has delegated approval for the financial components of research grants and contracts to the Associate Vice Chancellor and Controller and signature authority for research grants and contracts that have been duly routed and approved to the Associate Provost of Academic Affairs and Dean of University Programs.

The Vice Chancellor for Finance and Administration has delegated signature authority for non-financial international education contracts and international education contracts with a financial impact of $5,000 and less to the Associate Provost of Academic Affairs and Dean of University Programs and for other non-financial education contracts and other education contracts with a financial impact of $5,000 and less to the Associate Provost for Academic Planning and Budgeting. These contracts are reviewed and initialed at the initiating department level prior to final signature by the applicable Associate Provost.

  1. Adjunct Faculty Contracts

The Vice Chancellor for Finance and Administration has delegated signature authority for adjunct faculty contracts to the Provost.

  1. Other Specified Contracts

The Vice Chancellor for Finance and Administration has delegated signature authority for the following specific types of contracts to the Associate Vice Chancellor and Controller and the Director of Contract Administration:

  1. TCU Press contracts
  2. Student Government contracts
  3. Alumni contracts
  4. Event contracts
  5. Travel related contracts for Athletics; excluding air travel and post-season travel
  6. Fraternity and Sorority Chapter Facility agreements on master agreements approved by the Vice Chancellor for Finance and Administration
  7. Equipment contracts with a financial impact of $15,000 and less
  8. Computer software and web design contracts with a financial impact of $15,000 and less.

[This delegation of signature authority from the Vice Chancellor for Finance and Administration to the Associate Vice Chancellor and Controller is in addition to all other delegations to the Associate Vice Chancellor and Controller contained herein.]

These contracts are reviewed at the departmental level and by the Associate Vice Chancellor and Controller or the Director of Contract Administration prior to final signature by the Associate Vice Chancellor and Controller or the Director of Contract Administration.

  1. Contracts $5,000 and Less

The Vice Chancellor for Finance and Administration has delegated signature authority for contracts with a financial impact of $5,000 and less (excluding real estate, oil, gas, and minerals, banking, investment, financing, and construction contracts) to the Director of Contract Administration. These contracts are reviewed at the departmental level and by the Director of Contract Administration prior to final signature by the Director of Contract Administration.

  1.  Contract Submission Process

In order to facilitate the contract review and signature process, the contract needs to be submitted via the Cobblestone contract management system (“Cobblestone System”).

The following information will be required to submit the contract in the Cobblestone System along with the contract:

  • Contract purpose
  • Financial obligation (in dollars)
  • Budget codes
  • Explanation of terms that need clarification or may be problematic along with the recommended change if necessary

Submission of a contract in the Cobblestone System constitutes an individual’s approval of the contract and recommendation that the appropriate University signatory sign the contract on behalf of the University. The Director of Contract Administration will work directly with the submitter and the other party to the contract in resolving any contract issues before signing the contract or, when required, forwarding the contract to the Vice Chancellor for Finance and Administration for signature. The Director of Contract Administration also will consult with the Risk Management Department regarding any insurance or subrogation clauses and with the Information Technology Department regarding any technology clauses prior to forwarding the contract to the Vice Chancellor for Finance and Administration for signature.