19.3 Contract Approval Authority

Policy Statement

A University of Illinois System contract must have the appropriate level of approval before it is signed.

Reason for the Policy

Contracts are initiated by the faculty and staff best acquainted with the subject matter and who have responsibility for the performance of the contract. The unit head is responsible for monitoring the performance of their contracts. Further levels of approval may be required to provide additional fiscal oversight.

Applicability of the Policy

This policy applies to all University of Illinois System contracts.

Procedure

A university or system office may reduce the dollar thresholds for which further levels of approval are required.

Units should follow reduced approval thresholds, if modified by their university.

UIS: Modified approval threshold and delegation restrictions are specified, when applicable.

Capital Programs Contracts

See University Office of Capital Programs, Real Estate and Utility Services for contract approval threshold levels and delegation abilities.

Contract type and dollar amount dictate the approval requirements. Approvals are documented and maintained within Contracts+ for all contracts processed through Contracts+. The Contracts+ approval workflow is automated in Contracts+ based on contract dollar values.

All contracts

The unit head is responsible for the performance of the contract and must approve all contracts (regardless of dollar value) and, if required, provide approval within Contracts+, or by approval signature on the Real Estate Contract Approval Routing Form (RE-CARF). A unit head may delegate this approval authority but is ultimately still responsible for the administration and performance of the contract. A unit head is a department head or higher. Some units do not have department heads; some small colleges do not have departments. When there are only college-level offices for administration, signature should be that of the dean or associate dean as ”unit head.” If the unit head approval authority is delegated, the unit must maintain documentation of such delegation. The Delegation for Unit Head or Dean/Director Contract Approval Authority form may be used to delegate the approval authority. An individual university or system office may restrict the ability to delegate this approval.

$100,000 or more during the original term

The relevant dean or director of the unit, or their delegate, must approve any contract with a total dollar value equal to $100,000 or more, and, if required, provide approval within Contracts+, or by approval signature on the RE-CARF. If the dean or director delegates their approval authority, the unit must maintain documentation of such delegation. The Delegation for Unit Head or Dean/Director Contract Approval Authority form may be used to delegate the approval authority.

A university or system office may restrict the ability to delegate this approval.

UIS: The relevant dean or director of the unit must approve any contract with a total dollar value equal to $25,000 or more and, if required, provide approval within Contracts+. Delegation of this approval is not allowed. UIS modified thresholds and delegation abilities do not apply to contracts processed by Real Estate Services.

$200,000 or more during original term

The relevant university or system office chancellor/provost/vice president/vice chancellor/vice provost/assistant vice president, or their delegate, must approve any contract with a total dollar value equal to $200,000 or more, and, if required, provide approval within Contracts+.

If the chancellor/provost/vice president/vice chancellor/vice provost/assistant vice president delegates their approval authority, that office must maintain documentation of such delegation.

A university or system office may restrict the ability to delegate this approval.

UIS: The relevant chancellor/provost/vice president/vice chancellor/vice provost/assistant vice president must approve any contract with a total dollar value equal to $50,000 or more and, if required, provide approval within Contracts+, or by approval signature on the RE-CARF. Delegation of this approval is not allowed. UIS modified threshold and delegation ability do not apply to contracts processed by Real Estate Services.

$250,000 or more in a fiscal year (expenditure only)

The President, or delegate, and University Counsel, or delegate, must sign or approve any expenditure contract or contract renewal in the amount of $250,000 or more in a fiscal year, any order against a master contract in the amount of $250,000 or more in a fiscal year, and any amendment or change to an existing contract that increases the value of the original contract to or by $250,000 or more in a fiscal year.

Board of Trustees Approval and Additional Financial Approvals

Certain contracts require specific authorization from the Board of Trustees, as partially outlined in 1 Fiscal Environment—Approval of Financial Documents.

Additional Approval Requirements

Certain contracts require additional approvals and administrative tasks. Contract processing offices advise units about transaction-specific requirements.

Legal Review

The Office of University Counsel (University Counsel) must review and approve certain contracts as to legal form and validity. The appropriate contract processing office will ensure appropriate University Counsel review for contracts processed by that office.

The following contract types require documented approval from University Counsel.

• Contracts and contract renewals that require Chief Legal Counsel approval under the State Finance Act (30 ILCS 105/9.02(a)(1))
• Contracts that will be submitted to the Board of Trustees for specific approval
• Settlements of claims or disputes
• Contracts (i) for healthcare services; (ii) with healthcare professionals; or (iii) with healthcare organizations*
• Contracts for legal services and investigations
• Contracts that provide third parties access to student data*
• Employment resignation and separation agreements
• Contracts that provide third parties access to protected health information*

*For contract types marked with an asterisk, use of an unaltered standard contract template that was previously approved as to legal form and validity per 19.2.1 Standard Contract Templates for use with that contract type shall constitute documented approval from University Counsel.