15-1 Internal Financial Documents and Transaction Approvals

1.0  Purpose

  • 1.1   The purpose of this university policy is to establish rules regarding the approval of internal financial documents and transactions and to delegate approval authority to appropriate administrative officers. This policy does not delegate the authority to sign or execute legal agreements with external parties.  Wayne State University Code Annotated 2.81.01 – Contract Awards provides board policy, and University Policy 04-6 provides Presidential delegation of authority. Refer to University Policy 04-06 Contract Signatories for signatory authority related to external contracts.

2.0  Definitions

  • 2.1   "Supply Requisitions" are WayneBuy requisitions processed for the acquisition of supplies or equipment, by purchase, lease or rental, and acquisition of the services of contractors (including those who are contracted to sell goods and services on campus).
  • 2.2   "Direct Payment Requests (DPRs)" are WayneBuy requests for non-recurring goods and services purchases including, but not limited to, Postage Replenishment, Entertainment and Business Expenses, Honorarium, Prize or Award, Royalty, Scholarship, Student Loan, Administrative Fees, Audit Fees, Rent,  Union Dues,  Membership Dues, Refund to Trusteeship, Subscriptions.  Refer to WayneBuy Training Job-Aids for Direct Payment Request processing procedures.
  • 2.3   "Special Payment Requests (SPRs)" are WayneBuy requests used for:
    • 2.3.1   Utility Bills - recurring services used by Facilities Planning & Management related to Utility Bills
    • 2.3.2   Telephone Bills - recurring goods and services used by Computing & Information Technologies for Telephone Bills
    • 2.3.3   Legal Fees and Settlements - recurring and one-time services used by the Office of General Counsel for outside legal services, and to disburse funds for claim settlements
  • 2.4   "Special Payment Authorizations (SPAs)" are paper requests used to generate payments:
    • 2.4.1   For remittances to benefit providers
    • 2.4.2   Refunds to sponsors through Sponsored Programs Administration (SPA)
    • 2.4.3   Other payments, that cannot be processed via Supply Requisition, Direct Payment Requests or Special Payment Request processes outlined in the sections above
      These consist primarily of payments against balance sheet accounts
  • 2.5   "Internal Requisition and Inter-Account Bills (IRBs)" are paper requests used to generate internal payments to University Service Centers for:
    • 2.5.1   Facilities Improvements or
    • 2.5.1   Non Construction-materials or services from another University department, (usually an internal service department such as Laboratory Animal Resources, Software Clearing House, Media Services, Marketing & Communications, etc.).
      An IRB, University Form# 108A, is submitted to the department furnishing materials or services
  • 2.6   "Bid Waivers" are used to document exceptions to the competitive bid requirements or request for proposal process, for the following:
  • 2.7      Sub-delegated Signatory – identifies by position those areas permitted to sign external contracts, by functional position
    • 2.7.1   Division – An operating unit typically headed by a Vice President reporting directly to the President, such as Academic Affairs, Research, Governmental Affairs, General Counsel, Finance & Business Operations, Development, Health Affairs, Marketing, and Economic Development.
    • 2.7.2   Department – An operating unit typically headed by an Associate or Assistant Vice President or Director, reporting directly to a Vice President, such as Human Resources, Finance & Budget, Computing & Information Technology, or Enrollment
    • 2.7.3   Unit – An operating unit typically headed by a Director or Senior Director, reporting directly to a Department Head, such as Payroll under Human Resources or Student Accounts Receivable under Finance.

3.0  Expense Guidelines

  • 3.1   All expenditures must be in compliance with University policy with respect to use of University funds, as listed in the APPM and/or the University Policies online at Policies and Procedures. Refer to APPM 1.3.1 specifically for the section on University's Expense Guidelines.

4.0  Departmental Internal Controls

  • 4.1   An S/C/D executive or his/her designee may establish additional departmental internal controls in his/her respective area, as deemed appropriate, to assist in reducing risks associated with departmental processing of financial transactions. Such controls will be the department's responsibility to monitor.

5.0  Delegation of Authority

  • 5.1   No persons are authorized to approve financial documents or transactions on behalf of the University or individual schools, colleges, divisions or departments other than those listed below. Sub- delegations of authority are limited to one level below the levels listed for each threshold shown in the following table. Sub-delegations of authority cannot be further sub-delegated by the designee. External Contract Signatory Authority is documented in University Policy 04-06, Contract Signatories.

 

Activity

Signatory Authorized

Suggested Dollar Threshold

Sub-delegated Signatory

  1. Supply Requisitions

    Refer to APPM 2.2 Initiating a Request

    The same levels apply to ensuing Amendment Requisitions.

President

Requisitions $3,000,000 or more

Divisional Vice President, after approval by the individuals listed below

Requisitions $1,000,000 or more but less than $3,000,000

(cannot exceed $3 mil)

Dean or Department Head, after approval by the individuals listed below

Requisitions $500,000 or more but less than $1,000,000

(cannot exceed $1 mil)

Unit Head, after approval by the Business Affairs Office of the Business Unit

Requisitions less than $500,000

(cannot exceed $1 mil)

Business Unit Business Affairs Office (BAO)

Requisitions below $2,000

BAO Delegate (if applicable)

  1. Direct Payment Requests (DPRs)

    Refer to:
    APPM 1.3.2 Special Payment Authorization)

    APPM 1.3.1 for special approval requirements

President

DPRs $1,000,000 or more

Divisional Vice President, after approval by the individuals listed below

DPRs $250,000 or more but less than $1,000,000

(cannot exceed $1 mil)

Dean or Department Head after approval by the individuals listed below

DPRs $ 100,000 or more but less than $250,000

Unit Head, after approval by the Business Affairs Office of the Business Unit

DPR below  $100,000

Business Unit Business Affairs Officer

  1. Special Payment Requests (SPRs)
    • FP&M Utility Bills
    • C&IT Telephone Bills

President

SPRs $3,000,000 or more

Divisional Vice President, after approval by the individuals listed below

SPRs $1,000,000 or more but less than $3,000,000

(Cannot exceed $3 mil)

Dean or Department Head, after approval by the individuals listed below

SPRs $ 500,000 or more but less than $1,000,000

(Cannot exceed $1 mil)

Unit Head, after approval by the Business Affairs Office of the Business Unit

SPRs Less than $500,000

(Cannot exceed $1 mil)

Business Unit Business Affairs Officer

  1. Special Payment Requests (SPR)
    Legal Fees and Settlements

President

$ 500,000 or more

Vice President and General Counsel

$ 100,000 or more but less than $500,000

Vice President and General Counsel

$ 5,000 or more but less than $100,000

Vice President and General Counsel or Associate General Counsel

Less than $5,000

General Counsel Business Affairs Officer

  1. Special Payment Authorizations (SPAs)

    To generate payments for remittances to:
    • Benefit Providers.
    • Sponsors
    • Other payments that cannot be processed via Requisition, DPR, or SPR

    (Refer to APPM 1.3.2 Special Payment Authorization)

President

SPAs $ 1,000,000 or more

Divisional Vice President, after approval by the individuals listed below

SPAs $500,000 or more but less than $1,000,000

(cannot exceed $1 mil)

Dean or Department Head, after approval by the individuals listed below

SPAs $100,000 or more but less than $5,000,000

Unit Head, after approval by the Business Unit Business Affairs Officer

SPAs less than $100,000

Business Unit Business Affairs Officer

  1. Internal Requisition and Inter-Account Billings (IRBs)

    (Refer to APPM 1.4 Internal Billing)

President

IRBs $ 500,000 or more

Divisional Vice President, after approval by the individuals listed below

IRBs $ 100,000  or more but less than $500,000

Dean or Department Head, after approval by the individuals listed below

IRBs $ 50,000 or more but less than $100,000

Unit Head, after approval by the Business Unit Business Affairs Officer

Less than $50,000

Business Unit Business Affairs Officer

  1. Bid Waiver Request Submissions

    Refer to University Policy 04-6, Contract Signatories and APPM 2.4 Supplies, Services and Equipment Orders of $25,000 or More)

President

Bid Waiver Requests $ 500,000 or more

Divisional Vice President, after approval by the individuals listed below

Bid Waiver Requests $250,000 or more but less than $500,000

Dean or Department Head, after approval by the individuals listed below

Bid Waiver Requests $25,000 or more but less than $250,000

Unit Head, after approval by the Business Affairs Office of the Business Unit

Bid Waiver Requests Less than $25,000

Business Unit Business Affairs Officer

 

5.0  Duration

  • 5.1   This delegation is revocable by the president at any time and without notice.
  • 5.2   This University Policy supersedes University Police 2015-01 First Release.

6.0  Effective Date

  • 6.1   This university policy is effective upon issuance.

 

Signed by President M. Roy Wilson  August 22, 2018