Accounting Office

Contract Approval Policy

Background

As the operation of the University grows more complex the need for coordination and communication regarding the details of relationships with outside entities becomes more acute.  While there have been contract approval policies at Willamette, in recent years rules have not been consistently applied resulting in increased risk of financial loss and of other liabilities associated with poor communication and coordination.  Effective July 1, 2001 the following policy and procedure is to be employed:

Policy

All contracts, grants or agreements (other than employment agreements or simple purchase orders) that commit Willamette University to receive or disburse a value of $10,000 or more or that commit the University for a period greater than one year require authorization by the Dean or Vice President with administrative responsibility for the functional area involved.  A copy of each such contract or agreement upon execution is to be forwarded to the office of the Vice President for Financial Affairs.  In addition, any such agreement with a value of $30,000 or more requires review in advance by the Vice President for Financial Affairs and can only be executed by the President or the President's designee.  Willamette University including all its colleges, schools, departments, operating units, associations and clubs will not consider itself bound by contracts or agreements created or executed in violation of this policy. 

Procedure

For contracts, grants or agreements valued at $30,000 or more a Contract Approval Form as well as the contract or agreement should be sent to the Office of the Vice President for Financial Affairs.  The Vice President for Financial Affairs will review the contract and determine whether additional review by legal counsel is appropriate.  Once it is reviewed and approved at that level it will be forwarded to the President for execution.  The original executed contract or agreement will then be returned to the originator.

Forms

The Contract Approval form is available online at http://www.willamette.edu/local/forms/.