The University of Memphis

Authorization for Financial Transactions



POLICIES

Issued: April 29, 2015
Responsible Official: Vice President for Business & Finance
Responsible Office: Accounting

Policy Statement


 

The University grants by position title the authority to approve certain financial transactions and employee time and leave reporting. It is the responsibility of each financial manager to control all financial transactions against assigned organizations to ensure that they conform to University policy.  Employee time and leave reporting to Payroll or Human Resources must be approved by financial managers or designees.

Financial managers may appoint other individuals to act on their behalf.  Two levels of approving authority are provided.  A "designee" has the same authority as the financial manager and an "approver" can only be granted the authority to approve purchase requisitions up to $5000, cash reimbursements, and transfer vouchers. 

Financial managers shall review and monitor organizational expenditures on a monthly basis through ePrint reports, Banner, and/or Tigerbuy.

The financial manager granting the authority retains complete responsibility for any action taken by the individuals appointed. 

Tennessee Board of Regents guidelines for delegation of approving authority must be followed.  For example, the authority to approve contracts cannot be delegated.

A designee cannot approve time and leave or travel reimbursement claims of the financial manager. Such items must be approved by a higher authority.

Under no circumstances will another person be allowed to sign the name of an approving authority.  For example, a designee signing for the financial manager should always sign his or her own name, not the name of the financial manager.

Facsimile signatures (stamps) may not be used unless approved in writing by the Vice President for Business and Finance. 



Purpose


 

This policy outlines the authority and responsibility attached to signatures, including electronic approvals, on financial documents and employee time and leave documents.  It establishes a procedure for creating and maintaining information on individuals authorized to approve financial transactions and employee time and leave reporting for established areas of responsibility.  



Contents

Definitions
Procedures
Related Forms
Links

Definitions


Acknowledger

An individual appointed by a financial manager who is responsible for reviewing and acknowledging time and leave information prior to final approval by the financial manager (Web Time Entry approver).


Approver

An individual appointed by a financial manager to act on his or her behalf when approving purchase requisitions less than $5000, cash reimbursements, and transfer vouchers only.  


Banner Finance

The University's administrative system containing data related to accounts payable, purchasing, equipment, grants accounting, budget, document processing and financial reporting. 

 


Banner HR

The University's administrative system containing salary budget data; employee demographic, payroll and benefit data; account labor and benefit charges; time and leave; and Employee Self-Service.  


Designee

An individual appointed by a financial manager to act on his or her behalf when approving financial transactions.  This person is called a proxy when approving time and leave reporting.  


Financial Manager

An individual designated by position title to be responsible for the financial activity of an assigned organization. Authority is granted to create, approve and monitor financial transactions including time and leave reporting. When approving time and leave reporting, the financial manager is known as the Web Time Entry approver. A financial manager is expected to give careful consideration to appointing acknowledgers, approvers, designees, and proxies to act on his or her behalf and to oversee their activities. 


Proxy

An individual appointed by a financial manager to act on his or her behalf when approving time and leave reporting.



Procedures


Appointment of Designee/Approver/ Proxy/Acknowledger

The financial manager may appoint academic or administrative/professional employees as a designee to act with the same authority as the official making the appointment.  The designee will also act as the proxy for time and leave reporting.  The financial manager may have different individuals defined as designee for financial matters and as proxy for time and leave reporting. 

The financial manager may appoint individuals, including clerical/ support positions (known as approvers) to approve purchase requisitions less than $5000, cash reimbursements, and transfer vouchers only.

The financial manager may appoint individuals, including clerical/support positions (known as acknowledgers) to review and acknowledge employee time and leave information prior to final approval by the financial manager (Web time Entry (WTE) approver).

 

To appoint a designee, approver, proxy or acknowledger, the financial manager should complete the "Request for Access to Business and Finance Systems" form and send it to IT System Access and Support (ITSAS).  All designee appointments will automatically be granted access to Banner Finance and HR.  All Approver appointments will be granted access to Banner Finance only; if Banner HR access is required, please indicate that on the form.  All Proxy (only) and Acknowledger appointments will be granted access to Web Time Entry only.  If Banner Finance or HR access is required, please submit the appropriate request form.


Change of Designee/Approver/ Proxy/Acknowledger

A designee, approver, proxy and acknowledger will not automatically become invalid when a financial manager changes.  Financial managers should use the "Request for Access to Business and Finance Systems form" to delete and/or add a new Designee/Approver/Proxy/Acknowledger.  Be sure to note whether the appointment is for a designee, approver, proxy or acknowledger . It is the financial manager’s responsibility to notify ITSAS of any changes.


Financial Manager/Designee/ Approver/Proxy/ Acknowledger for Restricted Funds

The principal investigator (PI)/program director of a grant or contract has the same authority as a financial manager and therefore, may appoint a designee, approver, proxy and acknowledger in the same manner as described above.


Change in Financial Manager

A "Request for Access to Business and Finance Systems" form should be submitted when the senior official directly responsible for a department or activity is changed.  The notice should be approved by an official at least one level higher than the financial manager being changed and sent to ITSAS for processing.


Change in Organizational Assignment

When an organizational unit (department or activity) is shifted from reporting from one unit to another or when a new unit is being established, an "Organization Code Request" should be submitted to the ITSAS by an authority authorized to approve organizational changes.  This shift may be from one department to another, from one dean/director to another, or from one Provost/Vice President to another.

When changing an organizational unit reporting hierarchy, it is important to remember that the FOAPAL determines the distribution of payroll data as well as accounting/budgeting data.

If a significant reorganization occurs, this form may be submitted as a cover form, with signature, and organizational charts or other explanatory documents attached on the organizational unit.


Change in Name/Title of Responsible Unit or Department

The "Organization Code Request" is also used when the name or title of the unit or department changes.  This request must be approved by an authorized official and sent to the Office of Financial Planning for review, and then routed to ITSAS for processing.


Verification of Authorized Officials

The program guides are online resources to verify who has approval authority in Finance and Human Resources by organization or individual.  It is the responsibility of the Financial Manager to perform an annual review of the program guides to ensure that users have the appropriate access to meet their job responsibilities.  It is the responsibility of the Financial Manager to notify ITSAS when an employee’s job status or responsibilities change.



Related Forms


Request for Access to Business and Finance Systems

 http://bf.memphis.edu/forms/tech.php  


Organization Code Request

http://bf.memphis.edu/forms/tech.php



Links


General Accounting Web Site

 http://bf.memphis.edu/finance/accounting/ga.php


Finance Program Guide

 http://bf.memphis.edu/spectrum/


HR Program Guide

 http://bf.memphis.edu/spectrum/hr/index.php


Contact: Accounting Office

 http://bf.memphis.edu/finance/accounting/staff.php

 



Revision Dates


  UM1303 - Revision - April 29, 2015
UM1303 - Issued: July 13, 2012


Subject Areas:

AcademicFinanceGeneralHuman ResourcesInformation TechnologyResearchStudent Affairs
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