CONTRACT APPROVALS & SIGNATURES - 1804

Approval/Signature Authority

Acquisitions conducted in FI$Cal will be work-flowed to individuals that have been designated by departments as authorized approvers.  Approval authority in the system varies depending on dollar thresholds, what is being purchased, the acquisition method, etc. Only authorized personnel who are delegated signature authority by department management will receive acquisition documents in the system for approval.  System approvals replace “wet” signatures on system generated POs, but are still required for certain contracts for services that use the STD 213 Standard Agreement form.

Approval must also be secured from the department’s accounting office verifying the availability and encumbrance of funds.

State Departments – Individuals Authorized to Approve and/or Sign Contracts (a PO is a contract):

• Authority to enter into agreements by signing state contracts is limited to those executive officers who either have statutory authority or have been duly authorized in writing by one who has statutory authority. Each executive officer who has statutory authority to sign contracts shall ensure that his/her agency maintains a current written record of agency employees authorized to enter into, approve (in the system), and/or sign contract documents on behalf of that agency. This written record shall be subject to DGS audit.
• Anyone who signs or approves a contract should have knowledge in the procurement laws, policies and procedures pertaining to the goods or services being procured. If an individual with signature authority does not possess sufficient procurement knowledge and expertise, the individual should, prior to approving/signing, have the transaction and/or documents reviewed by someone who possesses such knowledge and expertise.
• Delegation of signature authority is a selective process and should be commensurate with experience with principles of sound contracting and procurement policies, demonstrated familiarity with the process of contract document formation, execution, and administration, and completion of applicable training and/or certifications.
• State Board's and Commission's contract documents in excess of $5,000 must be accompanied (scanned and attached) by a copy of the resolution approving the execution of the contract, unless by statute the executive officer may sign the contract.

Local Governmental Entities - Authority

• Contract/POs to be signed by a county, city, district, or other local public body must be authorized by a resolution, order, motion or ordinance for the Contract/PO. A copy of the authorization should be sent to DGS/PD with the Contract/PO.
• Where performance by the local governmental entity will be complete prior to any payment by the State a resolution is not needed.

ELECTRONIC SIGNATURES FOR STATE CONTRACT DOCUMENTS – (State Administrative Manual Section 1240)

This policy permits the use of electronic signatures (hereafter “e-Signatures” or e-Sign) in conducting state procurement operations.

Policy

The Department of General Services Procurement Division permits the use of e-Signatures on all contract documents.

E-Signatures: State agencies may accept e-Signatures from all parties as legally binding and equivalent to handwritten signatures to signify an agreement. Each type of e-Signature will include the date the document was signed. Where state or federal laws, regulations, or rules require a handwritten signature, that requirement is met if the document contains an e-signature unless otherwise prohibited by policies, laws or regulations.

Scope: This policy applies to all transactions governed by the State Contracting Manual (all volumes) and/or conducted by the Department of General Services (DGS) Procurement Division. This policy enables state agency staff to conduct many transactions electronically, to accept e-signatures by other parties, and to sign agreements on the agency’s behalf by using an e-signature. This policy does not waive or modify any requirement or limitation as to which officers and employees are authorized to bind their agency to a contract.

History of Approvals and Corrections Required: A chain of approval demonstrates a history of approvals for the electronic document. If corrections are necessary, an email with the requisite “I approve the attached revised document [specify document name, number of other specific document ID]” is needed.

Electronic approvals made through FI$Cal meet the approval chain requirements.

For Electronic Signature, Electronic Transaction and Electronic Records Management for State Forms please refer to SAM, Section 1734.

For Terms and Definitions related to Electronic Signatures please refer to SAM, Section 1710.