Policies & Procedures

Approval of Financial Documents

The University of Illinois System Vice President, Chief Financial Officer, and Comptroller (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 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 system business, the following is used in the approval of financial documents for all state and non-state funds.

For ALL capital related items, see Capital Projects/Construction below.

Purchases

Professional Services

Purchases Less Than $1,000,000 - The approval authority for purchases less than $1,000,000 is delegated to the Assistant Vice President for Procurement Services who may further delegate authority and issue pertinent guidelines.

Purchases of $1,000,000 or More - The Assistant Vice President for Procurement Services refers all transactions of $1,000,000 or more for professional services to the Comptroller as a recommendation to the Board of Trustees for approval.

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 Assistant Vice President for Procurement Services who may further delegate authority and issue pertinent guidelines.

Purchases of $1,000,000 or More - The Assistant Vice President for Procurement Services refers all purchases of $1,000,000 or more to the Comptroller as a recommendation to the Board of Trustees for approval.

Purchase Orders and Change Orders

Purchase Orders - The system Comptroller, or delegates, signs all purchase orders. The appropriate system or university purchasing office issues all purchase orders upon proper approval of the purchase, except where limited purchasing authorization has been assigned to a particular unit (see 7.2 Purchase of Goods and Services).

Change Orders - Change orders related to medical center operations that exceed 25% of the original Board of Trustees approved contract or purchase agreement, and change orders that are not related to the medical center operations that exceed 25% 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 - The President, after consulting with each member of the executive committee of the Board of Trustees who can reasonably be contacted, may approve emergency transactions in excess of the board limit on behalf of the board and report the same promptly to the board. If the amount of the emergency transaction exceeds such dollar amounts as the board may specify from time to time, the President must consult with all board members who can reasonably be contacted before approving the emergency action.

Approval of Exempt Purchases

The appropriate system or university purchasing office Purchasing Director 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 Assistant Vice President for Procurement Services is obtained and, if necessary, the approval of the Comptroller.

Loan, Lease, and Lease-Purchase of Equipment

Agreements covering the loan or leasing of equipment to system departments are signed by the Comptroller, or authorized signature delegate. The agreement should follow the approval requirements outlined in this section.

Power of Attorney (Freight Forwarder)

All individual transactions relating to the power of attorney are signed in the Comptroller's name by the Assistant Vice President for Procurement Services or delegate.

Capital Projects/Construction

A capital project is an undertaking that results in a creation, an alteration or a connection to real property. Capital projects include the development of project scopes, budgets, schedules and procurement of all construction related services for new buildings, additions/modifications to existing buildings, and associated backbone infrastructure. Professional consultant services related to capital projects such as programming, conceptualization/feasibility studies, construction documentation, bidding, construction observation and warranty services are included in the definition of a capital project.

Approval of the Board of Trustees is required for the following:

Budgets for individual capital projects of $5,000,000 or more
Professional service contracts related to capital projects of $1,000,000 or more
Construction contracts of $2,500,000 or more

Contact Capital Programs, Real Estate, and Utility Services for delegated authority for those levels below the Board of Trustees' authority level.

For all capital-related policies and guidelines, see Capital Programs, Real Estate, and Utility Services.

Job Order Contracting (JOC) - The Director of the Physical Plant (UIC), the Director of Physical Planning and Operations (UIS), or the Director of Facilities and Services (UIUC) may approve any single JOC project up to $250,000. All projects using JOC forces must be reported to the Capital Programs, Real Estate, and Utility Services on a quarterly basis.

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 Facilities and Services (UIUC) determine whether the work is done by university forces, job order contracting (JOC), or competitive bidding. For projects under the bid limit, the directors may request the appropriate system or university purchasing office 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 system, the Director of the Physical Plant (UIC), the Director of Physical Planning and Operations (UIS), or the Director of Facilities and Services (UIUC) may approve any single project up to $500,000.

Outside Sponsored Programs (Including Research Contracts)

Proposals - Proposals are transmitted to the appropriate university pre-award office. Per the General Rules (Article II, section 6(d)), final approval of all proposals are the responsibility of the Vice Chancellor for Research (VCR), or the university Chancellor where there is no university VCR, or their delegates.

Contracts - Contracts, including grant and cooperative agreements, are executed in the name of the Comptroller by the person authorized to sign (see 19.4 Comptroller Contract and Signature Authority and Delegation).

Establishment of any new unit of instruction, research, or public service (e.g., colleges, schools, departments, institutes, and centers), under a sponsored project or otherwise, must comply with the approval process set forth in Article VIII of the system Statutes and must receive final approval by both the Board of Trustees and the Illinois 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 Comptroller (see 19.4 Comptroller Contract and Signature Authority and Delegation).

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 of Trustees authorization is required for the following:

Acquisition of property located outside approved university Master Plan boundaries at the University of Illinois Chicago and University of Illinois Urbana-Champaign
Condemnation of property
Sale or exchange of property (except gift properties, where authorization is delegated to the Comptroller)

The Comptroller is delegated authority for the following:

Acquisition of property within approved university 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 - Prior Board of Trustees authorization is required for leases where the annual rental costs, exclusive of operating costs, are $100,000 or more. The Vice President for Finance, Chief Financial Officer, and 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

Relocated to 19.4 Comptroller Contract Signature Authority and Delegation.

Unit Approval for Expenditures

Authority

The Comptroller authorizes all expenditures and executes all contracts for the Board of Trustees.

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 7 Purchasing, 8 Payments and Reimbursements, and 15 Travel, and is based on common business practice.) Based on this certification the appropriate system or university purchasing office enters into agreements, and the Comptroller 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. Additional signatures or approvals are often necessary as indicated in this and other guidelines.

Conflict of Interest

The system complies with State of Illinois requirements regarding potential procurement conflicts of interest. Please contact the appropriate system or university purchasing office for information regarding current requirements.

Travel

Traveler Certification - The travel certification on all travel expense requests must be approved by the traveler (payee) via the Chrome River expense report.

Approval of Vouchers - Employees may not approve their own travel expense requests. Travel expense requests for the head of a unit, as a rule, are approved by the head of the next supervisory administrative unit or delegate.

Travel Card - The Office of Procurement Services authorizes units to use the Travel Card (TCard), a MasterCard from Bank of America, to purchase qualified travel expenses, business meals and/or refreshments for specific events to relieve the employee from significant out of pocket expenses 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 expenses in Chrome River. Department card managers (DCM), designated by their departments, are responsible for managing the cardholder application process in their departments, the approval limits, and ensuring that TCard holders have received appropriate training for use and security of the TCard. See 15 Travel, for additional information on the TCard program

Approval for the President, Members of the Board of Trustees, and the Chancellors - The Comptroller (or delegates) approves travel reimbursement requests on behalf of, and for, the President of the system and members of the Board of Trustees. The Comptroller delegates approval of travel reimbursement requests for the Chancellors to the President or delegate.

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 higher administrative unit or delegate.

Goods, Contractual Services and other Expenditures

Procurement Card - The Office of Procurement Services authorizes units to use the Procurement Card (PCard), a MasterCard from Bank of America, 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 PCard system. Department card managers (DCM), designated by their departments, are responsible for managing the cardholder application process in their departments, the approval limits, and ensuring that PCard holders have received appropriate training for use and security of the PCard. See 7.6 The University Purchasing (PCard) for additional information on the PCard program.

Requisitions - The appropriate system or university purchasing office enters into a purchasing agreement with a vendor based on a properly approved purchase requisition (or, when authorized, a properly approved unit direct purchase). University Payables (UPAY) 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 (e.g., freight, toll charges, interest penalties, etc.) may be paid and charged to unit funds without additional approvals. Specific approval requirements are outlined in 7 Purchasing.

Miscellaneous Payments - University Payables authorizes payments based on properly approved expense reports. These expense reports may be for the purchase of goods or services, travel, or any other purpose for which an appropriation has been made. In signing these expense reports 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 reimbursements.

Signatures On Vouchers and Checks

Vouchers to the State Comptroller

Board Officer's Approval - All vouchers submitted to the State Comptroller must be certified by the President of the University of Illinois System, or delegates, pursuant to 30 ILCS 105/10.

Handwritten Signatures - Employees authorized to sign the President's name to vouchers must also sign their own names to the vouchers.

Voucher Signature Authorization Form - A Voucher Signature Authorization Form (SC-095) must be on file in the State Comptroller’s Office that provides specimen signatures to the State Comptroller for the persons authorized to sign in the name of the President for this purpose.

Checks on System Funds

Board Officer's Approval - All checks presented for payment from system funds must carry the signatures of the Chair and Secretary of the Board of Trustees, unless otherwise authorized.

University Funds Checks

University Bursar Fund (UIC) - The signature (or machine facsimile signature) of the Comptroller, or delegates, is required.

University Imprest Fund (UIUC) - The signature (or machine facsimile signature) of the Comptroller, or delegates, is required.

Signatures on Letters of Credit

Signatures on letters of credit are as authorized by the Comptroller by way of the Senior Director for Capital Finance or delegate.

University Investments

Authorizations By Audit, Budget, Finance, and Facilities Committee

Authority - The Comptroller is authorized to manage system investments at his/her/their discretion consistent with the Board of Trustees' approved investment policy. The Comptroller has delegated authority to (i) approve investment manager hiring and termination, (ii) buy or sell securities to manage investments within the system's target asset allocation, and (iii) buy or sell endowment real estate including farmland. Treasury Operations investment staff have authority to manage day-to-day transactions and external investment manager relationships for the system's investment assets under direction of the Comptroller.

Tax Returns

System-wide

When the Comptroller's signature is required on tax documents, the Comptroller or delegate may sign. Note: Comptroller delegates may not sign tax documents containing the phrase “under penalty of perjury”; the Comptroller must sign. These documents include, but are not limited to:

Monthly, quarterly, and annual tax returns.
Reports to governmental authorities for withholding or excise taxes.
Applications for business registration and other documentation for reporting and withholding, unemployment, and workers' compensation obligations.

University-Specific

All other tax returns and declarations prepared for a single university are submitted by the Comptroller or delegates.

Insurance

Proof of Loss Form - Proof of loss forms, where the system agrees to release an indemnifying company for a settlement of the system's claim, may be signed by the Comptroller or delegate.

Insurance Contracts - Insurance policies, endorsements, and riders that require the signature of the system Comptroller are signed by the Comptroller or delegate.

First published: July 2016 | Last Updated: June 2024 | Last Reviewed: March 10, 2023