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SIGNING AUTHORITIES

Purpose/Rationale

To ensure sound stewardship of all resources and assets, to ensure all contracts undergo authorized review and approval prior to execution, to ensure the Library complies with all reasonable requirements from external agencies, such as funding agencies, and to facilitate audit examination and verification of financial activity.

This is done by establishing authority and criteria for signing purchase orders and requests, cheques, including electronic fund transfers, contracts, agreements, and financial and legal documents.

Every individual signing a contract on behalf of the Library is binding the Library, and the Library has a vicarious liability to fulfill the requirements of the documents signed.

Scope/Limits

1. This policy applies to all Greater Victoria Public Library employees, volunteers and Board and committee members.
2. The Library Board assumes no liability for any contract, agreement, or document in writing purporting to be issued in the name of the Board where such is not signed in accordance with this policy. The Board shall acquire and at all times maintain a bond and/or crime insurance with a bonding company or insurance company for the indemnification of the Library Board in the event of loss to it by reason of the fraudulent or criminal act of any officer or employee of the Board.
3. This policy does not apply to any contracts or agreements between member municipalities, such as the Library Operating Agreement, or other similar or related agreements that may involve deeds, conveyances, mortgages, and other documents for the transfer or assignment of real and personal property, major long-term contracts or agreements including debentures.

Principles

1. No person is authorized to sign any document that creates an obligation or undertaking on behalf of the Library unless that contract has been reviewed and approved in accordance with this policy and procedures; and that individual has signing authority in accordance with this policy and procedures.

1. All contracts are to be entered into in the name of the Greater Victoria Public Library Board.

1. The approval of the Budget annually, the Purchasing policy and the Financial Responsibility and Accountability policy by the Library Board confers the authority upon the designated budget authority to make expenditures within the amounts allocated to them in the operating budget and in accordance with Library policies and procedures (Refer to section Purchasing Authority and the above-noted Board policies).
2. The Board designates other persons to sign cheques, transfer funds electronically and apply for credit in the form of Employee Purchase Cards from banking institutions (Refer to section Cheque Signing/Banking Authorities and Electronic Transfers).
3. The Board designates other persons to execute contracts and enter into other legal and financial agreements, including, but not limited to lease agreements, general service agreements, agreements to engage financial and investment professionals, and memorandums of understanding with various government and non-government agencies (Refer to section Purchasing Authority and Contract Signing Authorities).
4. Designated individuals have the responsibility to exercise their signing authority in a prudent manner. Depending on the nature of the agreement to be signed, this responsibility shall include an assessment of some or all of the following:

• The ability to meet the terms specified in the agreement,

· Compliance with all related legislation, regulatory requirements and Library policies that may be impacted by the agreement (e.g. labour legislation, intellectual property requirements, approvals or waivers that may be required from individuals other than those signing the agreement),

• The financial impact of the agreement on the Library,
• Whether legal advice should be obtained prior to signing the agreement.

1. Designated individuals shall not exercise their signing authority in circumstances where conflicts of interest exist or could be seen to exist.

1. The conditions under which delegation of signing authority will be allowed include:

· Only the holder of the signing authority can authorize the delegation. (i.e. Delegates should be informed that they may not delegate their authority to others.)

· The Chief Executive Officer and/or Finance Manager must to be notified in writing (e-mail) of the designated signing authority and/or the normal "second in command".

· The extent to which authority is delegated, or restrictions thereon, should be clearly specified.

· The delegate cannot authorize disbursements for which they are the recipient (e.g. Travel Expense Reports).

· Signing authority can only be delegated to staff with the appropriate skill and expertise to perform the assessment.

· Delegation is invalid if precluded by other Library policies or by the sponsor's conditions for funding.

· The holder of the signing authority must retain sufficient control to ensure their responsibilities are fulfilled. (e.g. The delegation of signing authority does not alter the responsibility for administration of unit budgets.)

1. Where two signatures are required on any agreement, the first signature shall be that of the person most directly accountable for the agreement; the second signature shall be the CEO or designate.
2. One of the original signed copies of the agreement must be deposited with Chief Executive Officer or be maintained in a location approved by the Chief Executive Officer (e.g. Finance Manager's file, Personnel Officer's file and/or secure electronic folder).
3. Persons responsible for the safekeeping of any agreements must maintain a list that should include for each agreement:

•  
  • Parties involved in the agreement,
  • Library signing officer(s),
  • Counterparty signing officer(s),
  • The date of execution or the effective date of the agreement,
  • The duration, if any, of the agreement,
  • The actual or estimated financial impact to the Library,
  • A brief description of the subject matter contained in the agreement.

Signing Authorities

1. Cheque Signing / Banking Authorities

The following persons are authorized on behalf of the Library Board to sign cheques and any agreements or other documents or instruments with the bank.

• For amounts up to $250,000:

• For amounts greater than $250,000:

Chair of the Library Board or the

Vice-Chair of the Library Board

and 

Anyone appointed to one of these positions in an acting capacity is authorized to sign cheques during the period of the Acting appointment.

The limits above do not include normal and bulk recurring payments or statutory payments,

including payroll deductions.

1. Electronic Transfers

From time to time funds may be transferred out of the Library's bank accounts for such payments as direct deposit of employees' payroll, payroll withholding remittances, tax remittances, pre-authorized cheques (e.g. lease payments), or transfers between bank accounts and/or investment accounts of the Library. Such transfers will be made in accordance with this and other Board policies, under the authorization of the following:

1. Purchasing Authority

All purchasing shall be carried out in accordance with the Procurement and the Financial Responsibility and Accountability policies approved by the Board and as amended from time to time. The CEO is accountable to the Board for the application of Board financial policies and directions, and for the financial management of the Library. Operationally, this is achieved by the CEO delegating the responsibility and accountability to appropriate senior administration. The Finance Manager is authorized to issue procedures governing purchasing authority within the confines of Board policy and budget limitations. This may include the further delegation of purchasing authority to other staff.

1. Contract Signing Authorities

a. The following persons are authorized on behalf of the Library Board to enter into and to bind the Library to the terms of contracts and agreements relating to the general operation and development of the Library.

With respect to contracts and agreements where the liability or benefit to the Library will not exceed $250,000, two signatures are required:

Any one of:

Chief Executive Officer

Deputy CEO/Director of Strategic Development

Manager of Public Services

Manager of IT

Finance Manager

Personnel Officer

Manager, Community Relations

And one of:

Chief Executive Officer

Finance Manager

b. Prior approval by the Library Board (documented in meeting minutes) will be required with respect to:

· Any contract or agreement, including contracts for the purchase or sale of goods or services, where the obligation of or the benefit to the Library exceeds $250,000;

· Any contract or agreement which in the opinion of the CEO or designate exposes the Library to an uncertain and potentially significant liability;

· Any contract or agreement which in the opinion of the CEO or designate is precedent-setting or involves sensitive issues;

· Any lease, license or other agreement for the use or occupation of Library or member municipality real property by third parties or the real property of third parties by the Library or member municipality where the term is or may be in excess of five years (including therein any periods of renewal or extension provided for in the lease, license, or agreement) or the annual rental or other annual payment related thereto exceeds $250,000;

· Any actions which under the Library Act require the prior approval of a government legislated body (e.g. Minister of Education, Minister of Finance);

· Any contract or agreement which a Board Committee requests be brought before the Board for approval.

c. The Board confers the following authority on behalf of the Library to make offers and sign agreements of employment as below:

d. Contracts of $50,000 or more, excluding employment contracts, shall be reviewed by legal counsel.