Loading...
HomeMy WebLinkAbout16-9 Signing Authority POLICY Section Policy No. Page Financial 16-9 1 of 5 Policy Title Date: Motion No. Signing Authority July 22, 2025 230/25 Purpose This policy establishes clear and consistent guidelines for signing authority within the County. It ensures accountability, transparency, and compliance with legislative requirements while providing a framework for the efficient execution of financial and contractual transactions. It defines roles and responsibilities for approving and signing financial instruments, agreements, and other legally binding documents. Scope This policy applies to all financial transactions, including cheques, electronic funds transfers (EFT), pre- authorized payments, and payroll processing. It also includes signing contracts, agreements, and other legally binding documents. The policy applies to delegations of signing authority for operational purposes and to managing funds held on behalf of external organizations. Definitions • Signing Officers: Individuals authorized to sign financial instruments and execute contracts or agreements on behalf of the County, in accordance with Section 213(4) of the Municipal Government Act (MGA). • Signing Authority: The delegated power to approve financial transactions on behalf of the County, such as purchase orders or invoices. This authority is granted by the CAO and typically documented through an administrative directive. • Financial Instruments: Any documents or mechanisms used to initiate, authorize, or complete financial transactions. This includes, but is not limited to, cheques, electronic funds transfers (EFTs), pre-authorized debits, and any other forms of payment instructions or commitments involving County funds. • Electronic Funds Transfer (EFT): The electronic transfer of funds between bank accounts, used for County payments or receipts, including payroll. • Pre-Authorized Debit Payments: Regular, automated withdrawals from County bank accounts, pre- approved for specific recurring expenses. POLICY Section Policy No. Page Financial 16-9 2 of 5 Policy Title Date: Motion No. Signing Authority July 22, 2025 230/25 Policy Guidelines 1. Signing Officers and Delegation 1.1. Signing Officers The following positions are designated as Signing Officers for Kneehill County: Council Signing Officers Administrative Signing Officers • Reeve • Deputy Reeve • Chief Administrative Officer (CAO) • Director of Corporate Services • Director of Community Services • Director of Infrastructure 1.2. Delegation of Signing Authority • The CAO, or any two Signing Officers in the CAO’s absence, may delegate signing authority for operational purposes through an administrative directive or documented approval, including e- mail, system-based approvals (e.g. Laserfiche), or other secure electronic documentation. • The CAO may delegate authority for specific actions beyond those outlined in this policy, provided they fall within the CAO's existing authority. 2. Financial Signing Authority 2.1. Methods of Payment The following are the approved forms of outgoing payment: cheques, Electronic Funds Transfers (EFT), pre-authorized debit payments/withdrawals, and petty cash. All payment methods must comply with internal control and authorization requirements. 2.2. Cheques • Two Signing Officers must sign all cheques: o One signature must be from the CAO or the Director of Corporate Services. o The second signature may be any other designated Signing Officer. • Electronically signed cheques are permitted, provided they adhere to dual-signature requirements and are applied securely through the County’s accounting system. • An Administrative Signing Officer (or their delegate) must review all cheques prior to release. 2.3. Electronic Funds Transfer (EFT) • EFT payments must use a system enforcing segregation of duties between upload and approval functions. • Any two Administrative Signing Officers must authorize individuals performing EFT functions. • An Administrative Signing Officer (or their delegate) must review all EFT payments prior to release. POLICY Section Policy No. Page Financial 16-9 3 of 5 Policy Title Date: Motion No. Signing Authority July 22, 2025 230/25 2.4. Pre-Authorized Debit Payments/Withdrawals • Pre-authorized debit payments/withdrawals are allowed for recurring payments, including, but not limited to, utilities, lease payments, merchant fees, and other similar obligations, as approved by the Director of Corporate Services or CAO. 2.5. Inter-Account Transfers Transfers between County bank and investment accounts are permitted to manage liquidity, cash flow, and investment strategy. • All transfers require authorization by any two Administrative Signing Officers prior to execution. • Inter-account transfers may be initiated and processed in the banking system by individuals authorized by any two Administrative Signing Officers. • Transfers must be recorded in the County’s financial system and supported by appropriate documentation. 2.6. Interac E-Transfers • Interac e-transfers are not permitted as a payment method for County transactions to ensure security and accountability. 2.7. Petty Cash and Cash Floats The use of petty cash and cash floats is permitted for minor expenditures and operational needs requiring physical cash. • All petty cash and float funds must have a designated custodian and be supported by receipts. • The establishment and limit of each fund must be approved by the Director of Corporate Services and comply with internal controls, including periodic reconciliation and review. • Replenishment of funds is subject to financial review and reconciliation approval by the Director of Corporate Services. 2.8. Review and Approval • A weekly payment register for all outgoing payments is reviewed and approved by two Administrative Signing Officers (or their delegate). • A monthly summary of accounts payable payments exceeding $50,000 must be reviewed and approved by a Council Signing Officer. POLICY Section Policy No. Page Financial 16-9 4 of 5 Policy Title Date: Motion No. Signing Authority July 22, 2025 230/25 3. Contracts and Agreements 3.1. Operational Contracts • Operational contracts include all contracts and agreements that are not classified as non- operational agreements under section 3.2. These generally involve the delivery of services, procurement of goods, maintenance, and capital project execution, as well as agreements where the County or other municipalities act as the service provider within the municipality’s day-to-day operations. • In accordance with Policy 13.18 Land Purchase Agreements, land purchase agreements must follow the specific procedures for authorization, signing, and approval outlined in that policy. • Where no Council-approved capital or operating budget exists for the related expenditure, the contract is considered non-operational and must follow the requirements of section 3.2. • Contracts and agreements may be signed by any of the designated Administrative Signing Officers, provided: o The contract or agreement aligns with Council-approved operational or capital budget. o For Directors, the contract or agreement falls within the respective department’s area of responsibility. • The CAO has the authority to execute operational contracts and agreements of any value, provided they fall within the Council-approved budget. • Directors may execute contracts specific to their departmental operations or capital projects, provided the total contract value does not exceed their financial signing authority limit, as specified in the Delegation of Signing Authority administrative directive. • Contracts exceeding one year in duration are required to be authorized by the CAO. • If required by the contract terms or Council directive, a Council Signing Officer may co-sign alongside the CAO or delegate 3.2. Non-Operational Agreements • Non-operational agreements include, but are not limited to, inter-municipal cost-sharing agreements, mutual aid agreements, grant agreements, and other strategic agreements. • Non-operational agreements must be signed by the CAO and a Council Signing Officer. If necessary, the corporate seal shall be affixed. • All non-operational agreements require Council approval before execution. • Council shall, at all times, pass a motion or bylaw (as applicable) to authorize the municipality’s entry into a non-operational agreement. 3.3. Electronic Signatures • Electronic signatures are permitted for all agreements and contracts within the County. • Agreements involving external parties (including employment-related contracts/agreements) must use secure platforms such as DocuSign, Adobe Sign, etc. • Internal documents, including operational approvals and routine agreements, may utilize County- approved electronic workflow systems (e.g. Laserfiche). POLICY Section Policy No. Page Financial 16-9 5 of 5 Policy Title Date: Motion No. Signing Authority July 22, 2025 230/25 3.4. Physical Signatures • When required by legislation, external third-party requirements, or internal practice, physical (wet ink) signatures may be applied to hard copy agreements, contracts, and financial instruments. The use of physical signatures must still follow the authorization requirements in this policy. 4. Funds Held on Behalf of Others The authorized officers of the board, committee, or organization for whom the County administers funds must approve transactions involving those funds. 5. Revocation of Signing Officer Designation 5.1. A Signing Officer designation is revoked under the following circumstances: • The individual no longer occupies the position to which Signing Officer status is assigned (e.g., due to resignation, retirement, termination, or reassignment). • The CAO may revoke the designation of an Administrative Signing Officer at their discretion. 5.2. The CAO and Director of Corporate Services are responsible for ensuring the list of Signing Officers is updated or revoked in a timely manner when any change in eligibility occurs. 6. Emergency Authority 6.1. In urgent or emergent situations where following normal signing authority procedures would cause delay or harm, Signing Officers (as defined in 1.1) may act beyond their usual signing limits to protect the County’s interests. 6.2. Any such actions must be documented as soon as practical and reported to Council through a written report within 30 days. 6.3. Procedural guidance for the use of emergency authority is to be outlined in an Administrative Directive. 7. Compliance Monitoring The Director of Corporate Services is responsible for establishing procedures to periodically review and audit compliance with this policy. “Original Signed” “Original Signed” Kenneth King, Reeve Mike Haugen, CAO Approved: January 22, 2021 606/06 Amended: August 26, 2008 397/08 Amended: November 29, 2011 570/11 Amended: December 17, 2013 558/13 Amended: December 16, 2014 442/14 Amended: July 22, 2025 230/25 Review Date: July 2029