Signing Authority Policy
Topics
- Expense Reimbursement
- Authorization
Purpose
The purpose of this policy is to define the levels of financial signing authority delegated to the President and CEO, Vice Presidents, Director, Managers and other staff. Vice Presidents, Directors, Managers and others are expected to manage their areas of responsibility in an efficient, effective and economical manner within the limits of their approved operating and capital budgets. Signing authority limits are designed to assist in achieving this goal, unhindered by unnecessary controls, but within the bounds of appropriate financial controls.
Departmental expenses
Only individuals who have direct financial responsibility for a cost centre and are given authority pursuant to this policy shall authorize vendor invoices, purchase order requisitions, cheque requisition, transfers, employee expense and petty cash vouchers incurred by that cost centre. An individual may have staff reporting to them and not have direct financial responsibility for a cost centre.
| Level | Limit |
|---|---|
| President and CEO | Greater than CAD$100,000 |
| Vice President | up to CAD$100,000 |
| Director | up to CAD$25,000 |
| Manager | up to CAD$10,000 |
Signing authority is cancelled upon termination of employment.
Finance will maintain a register of signing authorities, showing the names of persons with signing authorities, together with sample signatures and initials. It is the responsibility of the Purchasing, Accounts Payable, Payroll and other departments to check that expenditures are appropriately authorized.
Finance is responsible for periodically reviewing and updating of the authorization limits.
Note:
- No additional authorization is required for any vendor invoice which matches to a previously authorized purchase order requisition without any price or quantity variances.
- Any capital purchases must be approved either in the annual capital budget process or by the Vice President, Corporate Services & CFO.
- An authorizer cannot authorize disbursement to which he/she is the recipient (e.g. Travel Expense Reports). Such disbursements must be authorized by his/her superior.
- Reimbursement of expenses incurred by Board Members are covered in Policy & Procedure Number BP1 – Board Members Expenses.
- The Chair, Board of Directors must authorize all claims for reimbursement submitted by the President & CEO.
- Vice Presidents can sign on each other’s accounts in absence of the other Vice President.
- Temporary signing authority may be designated to an individual at the same level or above for a specified period of time. A written memo authorizing the designation must be sent to Finance in advance of the planned absence.
- Certain staff are specifically empowered to authorize routine budgeted expenditures which would otherwise exceed their signing authority level. These specific authorizations are applicable only to the positions and items identified below:
| Position | Type of Purchase | Up to Limit of |
|---|---|---|
| Vice-President, Human Resources and Organizational Development / Chief Human Resources Officer | Remittance of payroll deductions | CAD$250,000 |
| Vice-President, Human Resources and Organizational Development / Chief Human Resources Officer | Remittance of benefit contributions |
CAD$100,000 |
| Director of Engineering and Environmental Services | Utilities | CAD$50,000 |
| Director of Engineering and Environmental Services | Repairs and Maintenance | CAD$50,000 |
| Manager, Environmental Services | Repairs and Maintenance | CAD$25,000 |
| Security & Maintenance Supervisor | Repairs and Maintenance | CAD$25,000 |
| IT Site Manager | IT-related purchases and services | CAD$50,000 |
If the Board of Directors resolves formally to take specific action authorizing an expenditure or commitment, then management is empowered to authorize commitments and expenditures within the terms of the Board resolution in accordance with the authority limits set out herein.
Cheque Signing Authority
Cheques less than CAD$5,000 are electronically-signed by the Chair of the Board of Directors and the President. Cheques greater than CAD$5,000 requires two of the following signatures: President, Vice-President, Chair of the Board of Directors, or the Treasurer.
Cheques with supporting documents attached are reviewed by the Director of Finance or Vice President, Corporate Services & CFO prior to releasing to the Finance Assistant for distribution.
Contracts and Agreements
Often services are acquired under terms of a contract or written agreement. A contract is a written agreement between the hospital and a supplier, person or corporation that creates an obligation to purchase or supply specified goods or services for an agreed upon monetary sum for a specified term. It may include, but is not limited to, contracts, agreements, licenses, permits, and legal and financial transactions. Where possible contracts should include a clause that outlines the time and notice requirements to end the contract early and should avoid automatic renewal without specific notice.
Any employee with signing authority outlined below shall not sign any contract or agreement, where by doing so, that person is placed in a conflict of interest position or gives the appearance of being so.
All contracts, with or without financial withdrawal penalty, except for those specifically identified below, must be reviewed by the Vice President, Corporate Services & CFO and any contracts that exceed a value of $200,000 (dollars per year x contract years) must be reviewed internally by two persons at the Vice President level or above. All contracts, except as specifically defined below must be signed by the President & CEO.
Exceptions:
| Position | Type of contracts and agreements | Up to Limit of a Total value of |
|---|---|---|
| Manager, Human Resources | Employment contracts | Up to CAD$100,000 |
| Vice-President, Human Resources and Organizational Development/CHRO | Employment contracts | Greater than CAD$100,000 |
| Vice-President, Human Resources and Organizational Development/CHRO | Contract Ratification | No limit |
| Vice-President, Human Resources and Organizational Development/CHRO | Benefit Provider Contracts | Combination of $ value x commitment years not to exceed $200,000 |
| Vice-President, Clinical Programs and CNO | Nursing Agency Contract | Combination of $ value x commitment years not to exceed $200,000 |
| Managers/Directors | Employee termination agreements | These must be as recommended and prepared through Human Resources |
| Director of Engineering and Environmental Services | Purchase agreements and service contracts | CAD$20,000 with term of service less than 1 year |
| Materials Management Supervisor | Purchase agreements and service contracts | CAD$10,000 with term of service less than 1 year |
All original contracts must be forwarded to the President’s Office for filing. In addition, a copy of the contracts should be kept in a permanent departmental file of the originating department for reference.
Conflict of Interest
Conflict of interest guidelines and descriptions are covered in Policy & Procedure Number BP 10 – Procurement and ET 2 – Conflict of Interest.
Last updated : November 18, 2010