F3 — Financial Approval and Signing Authority

Policy Owner: Vice-President, Finance and Administration
Approver: President and CEO
Effective Date: September 1, 2024
Last Reviewed: June 2006

See the F3 — Financial Approval and Signing Authority Procedures ›

1. Purpose

1.1

The purpose of this Policy is to:

1. Establish clear and transparent processes for the signing of Agreements and for the delegation of signing authority to persons authorized to enter into Agreements on behalf of Red River College Polytechnic;
2. Ensure that only authorized personnel can commit to an expenditure by RRC Polytech;
3. Identify the appropriate approval authority and the approval thresholds for all funds, including capital, operational, and research expenditures within RRC Polytech; 
4. Ensure that all Agreements undergo appropriate review and approval prior to execution;
5. Establish clear roles and responsibilities so that RRC Polytech employees can manage their respective areas of responsibility in an effective, efficient, and transparent manner;
6. Ensure RRC Polytech complies with all reasonable requirements from external agencies, such as funding agencies;
7. Ensure sound stewardship of resources, funds and assets;
8. Provide for consistent accountability throughout RRC Polytech;
9. Comply with the requirements of The Red River College Polytechnic Act and the Board By-Laws and policies.

2. Definitions

2.1

The following terms have the following defined meanings for the purpose of this Policy:

1. “Agreement” means any arrangement, contract, letter of intent, memorandum of understanding, memorandum of agreement or any other type of agreement by any name, whether written or electronic, naming or otherwise binding RRC Polytech, and which details the rights, benefits and/or obligations of RRC Polytech.
2. “Board” means the Board of Governors of RRC Polytech.
3. “RRC Polytech” means Red River College Polytechnic.
4. “Contract Log” means the central administration contracts log maintained by the Legal and Compliance Department.
5. “Executive” means the Senior Executives of RRC Polytech appointed to the Executive Team by the President and CEO.
6. “Non-Standard Agreement” means any Agreement that is not a Standard Agreement listed in the Procedures.
7. “Policy” means this Signing Authorities policy.
8. “Policy Class Approval” means approval required, in addition to Financial Approval Authority, commodity type or other exception.
9. “Portfolio” means RRC Polytech departments or programs over which a Signing Officer has been entrusted with decision making authority.
10. “Procedures” means the Financial Approval and Signing Authorities procedures.
11. “Settlement Agreement” means any Agreement settling any legal dispute, claim, complaint, or charge by or against RRC Polytech, whether or not the claim was filed or in writing. A legal claim includes a civil action, a complaint before a judicial or quasi-judicial tribunal and any other action that potentially engages the liability of RRC Polytech.
12. “Sign” or “Signing” means any act whereby a Signing Officer binds RRC Polytech into an Agreement, and includes the following:
    1. affixes their signature to an original paper document;
    2. affixes their electronic signature, “clicks to accept”, or uses any other method of acceptance of an electronic document permitted under The Electronic Commerce and Information Act (Manitoba);
    3. uses an RRC Polytech Corporate Credit Card; or
    4. issuance of a Purchase Order (electronically or physically) through RRC Polytech’s Procurement Department.
13. “Signing Officer” means an employee of RRC Polytech described by title/position and designated as a Signing Officer under the Procedures.
14. “Signing Authority” means having the authorization to Sign an Agreement in accordance with this Policy or as delegated pursuant to the Procedures.
15. “Financial Approval Authority” means having the authorization to approve a Financial Commitment in accordance with this Policy.
16. “Standard Agreement” means an Agreement approved by the Legal and Compliance Department for use as a Standard Agreement.
17. “Term” means the total length of time which an Agreement is in effect (for example: from the effective date of the Agreement to the date on which the Agreement terminates). Terms should be computed including any term extensions outlined in the Agreement.

3. Application

3.1

This Policy applies to every contract or financial commitment entered into by RRC Polytech and to all RRC Polytech employees.

4. Policy

4.1

Signing Officer Obligations

1. The President has the authority to Sign any Agreement and has established Signing Officers as set out in Procedures consistent with their assigned Portfolio.
2. No Signing Officer shall Sign any Agreement unless:
   1. The Agreement has been reviewed and approved in accordance with this Policy and Procedure; and
   2. The Signing Officer has been granted Signing Authority in accordance with this Policy and Procedure.
3. Each Signing Officer shall be responsible for ensuring that all of the requirements of this Policy and the Procedures have been met prior to the Signing of any Agreement. Adherence to this Policy and the Procedures does not relieve the Signing Officer of his/her responsibility to comply with all other relevant policies and procedures and obtain all appropriate approvals.
4. A person in a position that is supervisory to a Signing Officer in respect of an Agreement under this Policy and related Procedures, has the authority to Sign that Agreement.

4.2

Further Delegation of Financial Approval and Signing Authority

1. A Signing Officer may delegate Financial Authority and Signing Authority, where:
   1. an employee is acting as a Signing Officer through an established Human Resources process. The delegate must apprise the delegator in writing of all Agreements signed pursuant to the delegated Signing Authority.

4.3

Signing Requiring Prior Approval of the Board of Governors

1. A Signing Officer, including the President, must obtain the approval of the Board prior to Signing the following types of Agreements and related documents:
   1. documents relating to the purchase, sale, mortgaging, or re-zoning of land;
   2. licenses to use, leases and commitments of real property or facilities owned by RRC Polytech for a term exceeding twenty (20) years;
   3. agreements for the construction or renovation of a building, including associated design work and project management for a building project in cases where the total price is in excess of $500,000. Agreements under this clause may be executed without prior Approval of the Board if:
      1. the project budget and project plan has previously been approved by the Board; and
      2. the Agreement has been tendered and is within the approved project plan and project budget.
   4. agreements for the rental, hiring or purchase of goods or services in cases where the total value of rentals, hire payments or purchase price, including amendments, exceeds $500,000. Agreements under this clause may be executed without prior Approval of the Board if they are:
      1. considered part of ongoing operations such as utilities, insurance, software maintenance and other renewals as per the parameters of existing contracts deemed prudent by RRC Polytech management.
      2. to address an unforeseeable situation of urgent timelines or emergency events (e.g. building or systems failure, damage or disruption that could result in significant costs if not addressed in a timely manner, endangerment to health and safety of RRC Polytech community).
   5. agreements for untendered contracts that are not in compliance with RRC Polytech Purchasing Policy – M1;
   6. bonds, debentures or other securities issued by RRC Polytech for or in connection with the borrowing of money;
   7. loans given by RRC Polytech to a third party; and
   8. guarantees by RRC Polytech of loans or obligations.

4.4

Subsequent Reporting to Board of Governors

1. The Board may request the President to provide reports to the Board subsequent to the Signing of certain types of Agreements. Vice-Presidents and Executive Directors may also direct their subordinate units and departments to prepare regular reports subsequent to the Signing of certain kinds of Agreements and may determine the intervals at which such reports are prepared, provided they comply with any directives from the Board.
2. The President will provide subsequent reports to the Board regarding agreements executed without prior approval of the Board as outlined at paragraph 4.3(iv).

4.5

Additional Approval Requirements

1. Nothing in this Policy or Procedure shall prevent the Board from imposing or requiring additional reporting and approval action from stakeholders as the Board deems appropriate.

4.6

No Further Ability to Bind RRC Polytech

1. Except as specifically noted in this Policy and the related Procedures, no other individual or entity is entitled to sign any Agreements on behalf of RRC Polytech whatsoever.

4.7

Corporate Seal

1. The Board Secretary or delegate, shall be the keeper of the corporate seal.

5. Responsibilities

5.1

The Legal and Compliance Department is responsible for advising the Vice-President, Finance and Administration that a formal review of this Policy is required.

5.2

The General Counsel in partnership with the Comptroller’s Office is responsible for the implementation, administration and review of this Policy. The General Counsel is responsible for establishing and maintaining the Contract Log.

5.3

All RRC Polytech employees are responsible for complying with this Policy.

5.4

The Vice-President, Finance and Administration may approve Procedures, if applicable, which are secondary to and comply with this Policy.

6. Review

6.1

This Policy shall be reviewed every five (5) years. The next scheduled review date for this Policy is April 2028.

6.2

In the interim, this Policy may be revised or retired if:

1. the Vice-President, Finance and Administration or the President deems it necessary or desirable to do so;
2. the Policy is no longer legislatively or statutorily compliant; and/or
3. the Policy conflicts with a Board Policy or directive.
4. If this Policy is revised or retired, all Procedures, if applicable, shall be reviewed as soon as possible in order that they:
   1. comply with the revised Policy; or
   2. are in turn retired.

7. Related Documents

1. Bylaw No, 1, RRC Polytech Board of Governors;
2. Financial Approval and Signing Authority Procedures;
3. Purchasing Policy M1.