Approval Authority for Financial Transactions, Policy on

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Title: Approval Authority for Financial Transactions, Policy on
Policy Owner: Office of the Executive Vice President for Finance and Chief Financial Officer
Applies to: University Workforce Members
Campus Applicability: All UConn Campuses, except UConn Health
Approval Date: May 29, 2025
Effective Date: July 1, 2025
For More Information, Contact: University of Connecticut Controller’s Office
Contact Information: 860-486-2937
Official Website: https://controller.uconn.edu

PURPOSE

To ensure financial transactions are approved by individuals with the necessary knowledge and oversight authority. This policy outlines the criteria for granting approval authority and necessary internal controls and required documentation for the overall approval process.

Note: This policy does not address the authority to sign contracts on behalf of UConn which is covered by  “UConn Delegation of Contract Approval and Signature Authority” and accompanying procedures. 

APPLIES TO

This policy applies to any University Workforce Member who approves UConn financial transactions, including independent contractors, affiliates, and UConn Health employees with access to UConn’s financial systems.

DEFINITIONS

Authorized Approver: A person authorized to approve financial transactions at the University due to their expertise, oversight, and understanding of the transaction’s nature and implications.

Authorized Delegate: A person authorized to approve a financial transaction on behalf of the Authorized Approver.  NOTE: For payroll/timesheet transactions and travel expense approvals, the Authorized Delegate must be of equal rank or higher than the Authorized Approver.

Financial Transaction: Any transaction processed within UConn’s financial systems with a financial implication to the University.

Financial Systems: All electronic systems used by the University to process financial transactions including, but not limited to:

  • Core-CT – Time and labor system
  • Concur Travel System (Concur)
  • Kuali Financial System (KFS) – Financial enterprise resource system
  • HuskyBuy – Purchasing system
  • HuskyTime – Student time tracking system
  • Public Safety Payroll (PSP) – NP-5 Bargaining Unit employee time tracking system
  • PeopleSoft Student Administration System (Student Administration) – Student admissions, financials, financial aid, and records
  • UKG – Dining Services student time tracking system

POLICY STATEMENT

The authority to receive or spend University funds is granted only to necessary individuals with direct knowledge of relevant Financial Transactions. Authorized Approvers and Authorized Delegates are expected to act responsibly, exercise sound judgment, and thoroughly review transactions in accordance with the internal controls outlined below before approving them.

Individuals Eligible for Approval Authority 

Individuals must meet the following minimum criteria to be eligible for approval authority:

  • Current, active UConn or UConn Health employee, independent contractor or affiliate (NOTE: Independent contractors and affiliates are not eligible to approve payroll or timesheet transactions);
  • Competent and skilled in respective area(s) of responsibility; full understanding of the transactions needing approval;
  • Adequately trained in the financial systems used for approval.

Granting, Changing, or Terminating Approval Authority

Authorized Approvers must be designated by their Department Head or equivalent senior manager. Authorized Approvers may identify an Authorized Delegate within their department with approval from their Department Head or equivalent. The Department Head is responsible for defining the types of financial transactions the Authorized Approver or Authorized Delegate can approve and setting any approval limits, such as dollar amounts, specific expenditures, or certain vendors. They must also ensure the Authorized Approver’s authority is commensurate with their experience, knowledge, skills, and position at the University. Although the Authorized Approver can delegate authority to others (with prior approvals from the Department Head or equivalent senior manager), they remain accountable for the approval of each financial transaction.

Any changes to the scope of transactions approved by an Authorized Approver or Authorized Delegate must be communicated in writing by the Department Head or equivalent to the IT or system administrator of the applicable financial system.

Approval authority can be revoked by the Department Head, Senior Management, Human Resources, Information Technology Services, or the University Controller at any time and must be no later than the employee’s last day in their current position.

If an Authorized Approver no longer serves in the position for which their authority was delegated, their approval authority terminates effective immediately.

Internal Controls and Segregation of Duties

The following principles must be upheld through implemented controls and systems:

  • Authorized Approvers cannot approve transactions they created, payments to themselves, or any transaction that impacts them financially.
  • Authorized Approvers must approve transactions within a timely manner and within the scope defined by their Department Head.
  • Authorized Approvers must ensure transactions comply with University policies and procedures, applicable laws and regulations.
  • Authorized Approvers must only approve transactions that are accurate, reasonable, and supported by documentation.
  • Authorized Approvers must verify that funds are available within the approved budget and are allowable and allocable under the appropriate funding source(s) as applicable.
  • Authorized Approvers must confirm goods/services were received or performed before final payment is approved.

Specific financial systems may have built-in flexibility regarding the above internal controls.

Documentation Requirements

Approval Authority

A formal request is required to grant an individual approval authority of financial transactions within UConn’s financial systems. The request is initiated by the individual requesting approval authority or their supervisor. The request must be approved by the Department Head or the equivalent level of senior management and be sent to the IT or system administrator that oversees the applicable financial system and must include:

  • The individual’s full name, NetID, and department.
  • A description of the transactions for which approval authority is granted.
  • Specific exclusions (e.g., dollar limits, goods/services, customers, vendors).
  • The effective start and end dates (if applicable) of the approval authority.

Transactional Approval Documentation

Most UConn financial systems require the use of UConn email addresses or NetID to access the application and track approval actions through a routing log or activity history, documenting the date, time, and action performed.

For approvals permitted to exist outside of an electronic system, the Authorized Approver must sign and date their approval before the financial transaction progresses through the workflow.

PROCEDURES

Procedures regarding the implementation of this policy are available here. These procedures are adopted under the authority of the Executive Vice President for Finance and Chief Financial Officer, President or designee.

ENFORCEMENT

Violations of this policy and any related procedures may result in appropriate disciplinary measures in accordance with University By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Code.

POLICY HISTORY

Policy created: 05/29/2025 (Approved by the Senior Policy Council and President)