Faculty and Unclassified Staff Handbook
Chapter 6 -- Business Affairs: General Regulations, Services, and Procedures

Contracts with Off-Campus Agencies

Policy on Execution of Contracts

Background Information

1. State universities may enter into contracts to acquire products or services normally requiring the expenditure of funds, including leases of real property as described in chapter II, section E "Facilities" of the KBOR Policy Manual, with any party or parties including any agency of the United States or any state or any subdivision of any state or with any person, partnership, or corporation if the purpose of such contract is related to the operation, function, or mission of the state university. (K.S.A. 76-721) The Board's President and Chief Executive Officer must be notified in writing of any contract which requires expenditures or transfers by the state university of an amount greater than one million dollars ($1,000,000), excluding contracts directly related to a capital improvement project.

2. All contracts between the state universities and other state agencies shall be subject to the provisions of K.S.A. 75-3711b. (K.S.A. 76-721).

3. Any contract with a corporation whose operations are substantially controlled by a state university shall provide that the books and records of such corporation shall be public records and shall require an annual audit by an independent certified public accountant to be furnished to the Board of Regents and filed with the state agency in charge of post auditing state expenditures.

4. Only the chief executive officer of the state university, or a specifically authorized designee of the chief executive officer of the state university, shall execute contracts on behalf of a state university. All delegations of authority made pursuant to this provision shall be filed with the General Counsel of the Board of Regents at least annually.

5. All contracts shall be in the name of the state university. Individual schools, divisions, and departments shall not enter into contracts.

Kansas Board of Regents: Policies and Procedures Manual
Updated to correspond with current KBOR policy (9-10-15).

Policy Statement

Purpose: It is the policy of Fort Hays State University (FHSU) to act consistent with all Board guidelines designed to implement the "execution of contracts" by Regents Institutions. In accord with these provisions, only the chief executive officer of FHSU shall execute contracts and agreements on behalf of the University. At various times and under conditions necessitating the expedition of University business, the president may delegate and assign this contract execution authority pursuant to the Regents provision. Any delegation of this authority must be filed with the General Counsel of the Board of Regents.

Scope: It is the policy of the chief executive officer to assign any delegation of authority for contract approval to only a very limited number of individuals who by their position and responsibilities will use this authority based on sense and convenience to expedite University business. Furthermore, this delegation of authority from the chief executive officer will apply only to non-employment contracts. Any contract creating an agreement and promise of employment by FHSU must be reviewed and signed by the chief executive officer.

Implementation Procedures: The following procedural statements are designed to provide guidance for the assignment of any contract execution authority from the chief executive officer designated University staff:

1. The chief executive officer will assign contract execution authority in a letter of delegation to each individual. The primary delegation of authority shall be made to the vice president for administration and finance. The vice president shall be responsible for the review and approval of the majority of the institution's daily and routine contracts and agreements (agency purchase orders, construction agreements, proposals for federal grants, non-state financial obligations, and so on). Additional delegations of authority which go beyond routine purchasing agreements and activities will be made to the provost and each vice president to manage and assign a very narrow range of contract negotiation and executing power in their areas.

2. A vice president, or individual assigned authority to execute contracts in the vice president's area of jurisdiction, will not enter any contract without specified permission which creates an agreement and promise on behalf of the University to commit new or anticipated funds or financial obligation beyond the vice president's or individual's existing budgetary resources.

3. By a letter of delegation, reviewed and approved by the chief executive officer and vice president for administration and finance, the provost, and other vice presidents may assign contract negotiation and execution authority to individuals assuming full or partial full time equivalency positions within their area of responsibility. Any letter of delegation assigning contract authority to individuals in these positions must contain an unequivocal and precise enumeration of specific contracts and agreements which each person will be permitted to negotiate and sign. A listing of individuals assigned contract authority must be submitted by the provost and vice presidents to the vice president for administration and finance at the beginning of each fiscal year (FY). Responsibility for reporting changes to a list during the current FY is the obligation of the provost and each vice president. A composite list will be filed with the General Counsel of the Board of Regents.

4. If there is any doubt about an individual's contract execution authority or whether a promise will create new financial obligations or liability on behalf of the University, the question about the power to negotiate or the actual contract instrument must be forwarded to the vice president for administration and finance for review.

Approved by Cabinet (02-06-91)

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