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 contract signature approval may be made as noted in the following business procedure.
I. Board Resolution Authority
The Chancellor and the Vice Chancellor for Finance and Administration 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 has 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 Treasurer has signatory authority granted by Board of Trustees Resolution for banking contracts.
A. Financial Contracts
Banking, investment (see also Endowment Investment Contracts below), and financing contracts require two approval signatures.
a. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
b. A nonbinding administrative signature by the Assistant Treasurer, the Associate Vice Chancellor for Facilities, or the Director of Financial Analysis and Property Management for internal control purposes.
B. Endowment Investment Contracts
Endowment investment contracts are reviewed and signed by the Chief Investment Officer or the VCFA, as authorized by Board of Trustees resolution in combination with Investment Committee authorization, while related investment custody accounts are created through the University’s treasury function as approved by the VCFA or his delegate.
a. Endowment investment contracts require two approval signatures.
i. A legally binding signature by the CIO or the VCFA as authorized by the Board of Trustees resolution.
ii. A nonbinding administrative signature, which will be manifest in the TCU custody account approval documentation, for internal control purposes
C. Real Estate and Minerals Contracts
Real estate and mineral contracts require two approval signatures.
a. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
b. A nonbinding administrative signature by the Director of Financial Analysis and Property Management, the Associate Vice Chancellor and Controller, or Assistant Treasurer for internal control purposes.
D. Construction Contracts
Construction contracts require two approval signatures.
a. A legally binding signature by the VCFA or his delegate as authorized by Board of Trustees resolution.
b. A nonbinding administrative signature by the Associate Vice Chancellor for Facilities or his delegate for internal control purposes.
E. Other Contracts
Other contracts for which signature authority has not been administratively delegated as specified below are reviewed by the department and the Director of Purchasing prior to final signature by the Vice Chancellor for Finance and Administration.
II. 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.
A. 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.
B. Athletics
Athletic game contracts and related guarantees require two approval signatures.
i. A legally binding signature by the Athletic Director as delegated by the VCFA. The Athletic Director may delegate his signature authority for game contracts and related guarantees to the Associate Athletic Director for Internal Operations for all sports except football.
ii. A nonbinding administrative signature by the Associate Athletic Director for Internal Operations. If the Athletic Director delegates signature authority for a game contract or related guarantee to the Associate Athletic Director for Internal Operations, 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.)
i. A legally binding signature by the Athletic Director as delegated by the VCFA.
ii. A nonbinding administrative signature by the Associate Athletic Director for Internal Operations.
C. 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 Associate Provost for Technology Resources. These contracts are reviewed and initialed by the Administrative Services Manger, the Technical Services Manger, or the User Services Manager, as applicable, prior to final signature by the Associate Provost. Such renewals must contain no changes to the basic terms and conditions, including limits of liability and indemnification. Copies of such renewal contracts must be forwarded to the Director of Purchasing for notification of the renewal.
The Vice Chancellor for Finance and Administration must sign the initial agreements for any new computer hardware or software contracts after the contract is reviewed and initialed by the Associate Provost for Technology Resources. The VCFA also must sign any licensing and maintenance renewal contracts that contain changes to the basic terms and conditions.
D. Library
Library materials contracts (for books, databases, journals, and associated library subscriptions) require two approval signatures.
i. 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 agreements.
ii. A nonbinding administrative signature by the Electronic Services Librarian.
E. Research Contracts and Education Agreements
The Vice Chancellor for Finance and Administration has delegated signature authority for the financial components of research contracts to the Associate Vice Chancellor and Controller and for the non-financial components of research contracts to the Associate Provost for Academic Affairs.
The Vice Chancellor for Finance and Administration has delegated signature authority for international education agreements with a financial impact of $5,000 and less to the Associate Provost for Academic Affairs and for other educational agreements 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.
For education agreements with a financial impact exceeding $5,000, the Vice Chancellor for Finance and Administration has delegated signature authority for non-financial international education agreements to the Associate Provost for Academic Affairs and for other non-financial educational agreements to the Associate Provost for Academic Planning and Budgeting.
F. Adjunct Faculty Contracts
The Vice Chancellor for Finance and Administration has delegated signature authority for adjunct faculty contracts to the Provost.
G. Other Specified Contracts
The Vice Chancellor for Finance and Administration has delegated signature authority for the financial specific types of contracts to the Associate Vice Chancellor and Controller:
i. TCU Press contracts
ii. Student Government contracts
iii. Alumni contracts
iv. Event contracts
These contracts are reviewed at the departmental level and by the Associate Vice Chancellor and Controller prior to final signature by the Associate Vice Chancellor and Controller.
H. 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, banking, investment, financing, and construction contracts) to the Director of Purchasing. These contracts are reviewed at the departmental level and by the Director of Purchasing prior to final signature by the Director of Purchasing.