Policies:

UMHS Policy 01-01-004

SIGNATURE AUTHORITY

Issued: 10/2007

I. POLICY STATEMENT

It shall be the policy of the University of Michigan Health System (UMHS) that only those authorized to sign on behalf of the Health System or any of its components, as specified on the attached UMHS Delegation of Authority Table may sign contracts or commit funds on its behalf.

II. POLICY PURPOSE

The purpose of this policy is to standardize the signature and authority delegation process and to clarify who has authority to obligate the Health System for transactions with or promises to an external organization.

III. DEFINITIONS

None

IV. POLICY STANDARDS

Every delegation or sub-delegation must:

1.  Be made in writing.  An email from the Delegator to the Delegate is considered as “in writing”;

2. Specify the specific names and UM titles of the Delegator and Delegate;

3. Define explicitly the time and circumstances when the delegated authority may be exercised;

4. Be limited to an employee over whom the Delegator has oversight authority;

5. Specify whether and, if so, to what extent, the delegate has sub delegation authority;

6. Expire at the earlier of:

            (a) a date specified in the writing,
            (b) the last day of the current fiscal year, or
            (c) termination of the delegate’s employment with UMHS.

VI. EXHIBITS

Exhibit A: Sample Delegation Language
Exhibit B: UMHS Delegation of Signature Authority Table

VII. REFERENCES

Standard Practice Guide 601.24


Author: UMHS Legal Office; UMHS Corporate Compliance

Approved by: the Executive Vice President for Medical Affairs - October 24, 2007


Original policies are held by Carolyn Ladd, Policy Coordinator, Office of the Director and CEO, UMHHC, telephone 647-2510
 

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