Approval Authority Operating Procedure

To detail the conditions under which a college administrator can temporarily delegate their authority to approve financial transactions.

This procedure applies to all Cambrian College administrators.

College administrator: A college administrative employee appointed to a position that gives them authority to review and approve financial related transactions.

Delegator: The employee who has authority to take action on behalf of the Board who transfers (“delegates”) their authority to another employee (“delegate”).

Delegate: The employee who is officially transferred the authority to act on behalf of the delegator.

Segregation of Duty: An internal control requirement designed to prevent errors and deter fraud by ensuring that no one person has sole control over initiating, recording, and approving (authorizing) a single transaction.

1. A college administrator may temporarily delegate their approval authority due to vacations, temporary leave of absences, etc.
2. A college administrator will only delegate their approval authority to a college administrator who holds a management position unless the college administrator delegate has been officially assigned into an acting manager position.
3. A delegation of financial signing authority:
   • assigns the authority and responsibility to approve financial transactions.
   • facilitates efficient decision-making and ensures that actions and decisions are taken by appropriate approval levels.
   • ensures that transactions are executed as intended and in accordance with applicable law, regulations, and College policy.
   • maintains fiscal integrity and creates a sound internal control environment.
4. It is the responsibility of the delegator to maintain proper control and management of their area; the delegator remains accountable for all actions taken by the delegate.
5. The delegator shall maintain appropriate internal controls including segregation of duties and monitoring the effectiveness of the controls established.
6. A college administrator who improperly delegates their authority or is found to have misused a delegated authority may be subject to an investigation and disciplinary action.

Delegation of approval authority is a significant action requiring scrutiny and ethical judgment. College administrators are required to comply with the following internal controls:

1. Delegation of approval authority will be assigned to a college administrator available who has appropriate skill, knowledge, and familiarity of the operations for the effective exercise of the authority.
2. In advance of delegating authority, the delegator must inform the college administrator to whom they report to (in writing) of the following:
   • the intention to delegate their authority
   • the reason for the delegation of authority
   • the identity of the delegate
   • the duration of the delegation and any exceptions to the authority delegated
3. The delegator informs their management group, direct reports and Executive Assistant, Finance, Administration and Applied Research (in writing) that they are temporarily delegating their approval authority, the identity of the delegate, and the duration of the delegation.
4. Delegation of approval authority will be assigned on a temporary basis only – to accommodate vacation, leave of absence, professional development, or off-site College business.
   • A college administrator can delegate their approval authority for a continuous period of no greater than 30 days without explicit written approval from the college administrator to whom they report.

College Administrators are required to use ethical and professional judgment to ensure their approval authority for financial transactions are, at all times, defensible and in accordance with applicable policies and ethical practice. This procedure cannot explicitly address all situations and circumstances where delegated approval authority may be questionable. If a college administrator is presented with a questionable approval circumstance, in particular, situations that may be perceived as a conflict of interest or to have inadequate segregation of duty, they are required to obtain guidance from the Office of the Vice President, Finance, Administration and Applied Research.

Vice President, Finance, Administration and Applied Research is responsible for:

• Ensuring oversight of the Approval Authority Schedule Policy and corresponding procedure.
• Ensuring the development, review, and availability of the Approval Authority Schedule Policy and corresponding procedure.

Office of Finance, Administration, and Applied Research is responsible for:

• Maintaining a signing authority binder along with original signatures of budget holders.
• Maintaining an organizational chart with authority levels noted.

Delegator is responsible to ensure:

• Their delegate understands the limitations of their temporary approval authority.
• Their delegate understands that they cannot approve a transaction that they have initiated, requested, or prepared.
• Their delegate understands that they should only approve transactions that they deem reasonable and justifiable and failing this, they will obtain guidance from a more senior college administrator or defer a decision until the return of the delegator.
• Their delegate understands the use of the correct cost centres and account codes.
• Their delegate understands that with a cost centre expense approval, they must ensure the existence of a purchase order reference number and that adequate funds are available.

Delegate is responsible for:

• Understanding their responsibilities as a delegate.
• Approving financial transactions on behalf of the delegator.