Objective

UT Southern issues this procedure to help facilitate prudent expenditures and enable departments to stay within or below their budgeted funds.

Scope

This procedure applies to all UT Southern employees. Importantly, this procedure sets forth pre-approval steps that must occur before any other approvals required in applicable policies, such as FI0405 (Procurement) and FI0420 (Contracts). Once a department obtains approval under this procedure, the department must take any additional approval steps required under applicable policy.

Procedure

1. General Requirement
   1. UT Southern employees must comply with this procedure before seeking to spend funds, regardless of the funding source.
   2. UT Southern employees must provide prudent management of their financial resources.
   3. When seeking approval under this procedure, departments will email the applicable UT Southern approver.
   4. If the approver does not approve via email response within 3 business days (starting the day after the department sends the email), the department’s request expires and is deemed rejected.
      Example: A department emails a Vice Chancellor on Monday. The business-day period runs from Tuesday morning until 11:59 PM Central Time on Thursday.
2. Approval Thresholds and Required Approvals
   1. The chart below specifies UT Southern’s approval thresholds and required approvals.
   2. When seeking an approval, the department must obtain all approvals for the dollar threshold and the thresholds below it. For example, if a department seeks to make a $15,000 purchase, the department must first obtain approvals from: direct supervisor; department head (or school chair, or department director, or coach); division head and department head; vice chancellor; and the chief business officer.
   3. Direct supervisors have discretion to require additional approvals below $250.00.

Dollar Threshold	Approval Required
Less than $250.00	Direct supervisor’s discretion
$250.00 – $2499.99	Department Head, School Chair, Director, Coach
$2500.00 – $4,999.99	Division Head (and Department Head)
$5,000.00 – $9,999.99	Vice Chancellor
$10,000.00 – $249,999.99	Chief Business Officer
$250,000.00 and greater	Chancellor

3. Nature of the Approvals Listed Above
   1. For clarity, this procedure states pre-approvals that UT Southern employees must seek before starting the contract, requisition, travel, or other approval processes.
   2. UT Southern does not have authority to bypass review steps and required approvals stated in UT System policies and procedures, so any approval given under this procedure is for internal budget management purposes only.
4. Accountability
   1. UT Southern employees are individually accountable for complying with this procedure.
   2. Direct supervisors, department heads, and division heads are each accountable for their employees’ compliance with this procedure and are accountable for ensuring that their employees are aware of this procedure.

Penalties/Disciplinary Action for Non-Compliance

UT Southern will follow applicable Human Resources policies and procedures to impose appropriate disciplinary action. UT Southern may, in its sole discretion, remove an employee’s ERP permissions to eliminate their ability to make purchases; remove their procurement card; or take any other steps necessary. Generally, UT Southern will impose disciplinary actions under this procedure by following the progressive disciplinary approach outlined in HR0525 – Disciplinary Action. UT Southern may impose any disciplinary action, up to and including termination, if the employee’s violation is intentional.

Responsible Official & Additional Contacts

Eric Blumenthal
Interim Vice Chancellor of Finance & Administration eblumen1@utsouthern.edu

Related Policies/Guidance Documents

FI0130 – Fraud, Waste and Abuse FI0315 – Gifts

FI0420 – Contracts FI0525 – Petty Cash

FI0530 – Procurement Cards FI0620 – Capital Outlay

GE0002 – Conflicts of Interest & Commitment FI0705 – Travel