Policy Library

620.2.1  Delegation of Statutory Authority.  This policy operates to delegate contract power vested in the ISU Board of Trustees by statute to others. 

620.2.2  Construction.  This Policy shall be construed in conjunction with the ISU Purchasing and Receiving Policies and Procedures.

620.2.3  Statutory Limitations. 

620.2.3.1  Statutory Authority for Facilities Projects.  Authority for ISU to contract for professional or expert services, for new construction projects, to rehabilitate or repair capital facilities of the university, and to bond such projects is covered under a variety of Indiana statutes, and special rules apply to these situations.  Special rules also apply to transactions relating to real estate, including leases, and to any transaction that would involve a sale of ISU assets. 

620.2.3.1.1  Office of the General Counsel; ISU Treasurer.  Individuals with responsibility for these projects shall communicate and coordinate with the Office of the General Counsel and the University Treasurer.  Individuals are strictly prohibited from altering State property without appropriate approval.

620.2.3.2  Fees, Bonding, and Compensation and Benefits.  Indiana law vests authority in the ISU Board of Trustees to approve any student fees, other fees, bonding, and issues relating to compensation and benefits of university employees.  ISU employees are strictly prohibited from implementing any fees (except where authorization is delegated by the ISU Board of Trustees), bonding, or making any determinations relating to compensation and benefits that are not first expressly authorized by the ISU Board of Trustees.

620.2.4  Budgeted Expenditures.  Any contract that binds ISU to an expenditure of funds previously approved through the departmental budgetary process is subject to the approval and signatory authority as set in Section 620.1.

620.2.5  Unbudgeted Expenditures.  Any contract that binds ISU to an expenditure of funds that has not previously been approved through the departmental budgetary process must be approved by the Treasurer for verification of the funding source.  The Treasurer’s signature is required on the standard routing form prior to execution of the contract by ISU or of any change orders or amendments to the original contract.  A ‘notice to proceed’ is considered a contractual commitment. 

620.2.6  Delegation of Authority.  Those individuals vested with signatory authority in Section 620.1 may delegate that authority for specific categories of contracts upon completion of the Signatory Delegation, a standard delegation form developed by the Office of the General Counsel. The delegation shall be specific as to the scope and limitations of the delegated authority and shall be limited to only those directly reporting to the delegator. Executed Signatory Delegation forms shall be maintained in the Office of the General Counsel, and a delegation of signatory authority will not be effective unless the form has been forwarded in accordance with this policy.

620.2.7  Standard Routing Form.  Contracts shall be routed through appropriate ISU departments for review in advance of final approval and signature.  The Office of the General Counsel, with input from functional areas, shall develop a standard routing form for all contracts.  The standard routing form shall generally include review by Risk Management, Business Affairs, and the Office of the General Counsel, and shall act as an information tool for Vice Presidents.  The standard routing form shall be utilized for all agreements, except for those contracts subject to the Purchasing Policy and those contracts approved through Sponsored Programs.

620.2.7.1  Required Approvals.  Required Approvals as set forth in Section 620.1 shall be noted on the standard routing form in advance of execution of a contract. 

620.2.8  Additional Delegation of Signatory Authority by Board of Trustees.  If an independent delegation of authority relating to a particular area or matter is vested in the Treasurer by the Trustees, then the Treasurer may act under such delegation of authority, reporting results to the Trustees at the next meeting following action taken by the Treasurer pursuant to such independent delegation of authority.

620.2.9  Reporting Requirement.  All contracts entered into that do not require Trustee approval must be reported at the Trustee meeting following the date upon which the contract is entered into, with the exception of contracts falling under the ISU Purchasing Policy, which contains other reporting requirements.  Persons initiating contracts must forward a copy of the executed contract to the Secretary of the University for inclusion in the Board of Trustees’ materials.