Policy for Signature Authority on Grants
DRAFT
Purpose
This policy outlines authority with regard to executing proposals, grants, and grant-related contracts on behalf of Worcester State College. It protects Worcester State College and its employees from legal liabilities, and maintains compliance with college, state, federal, private, and other legislative regulations and requirements while performing research and project activities inherent in grants.
Policy
A Principal Investigator (PI), Project Director (PD), Department Head, or other faculty or staff employees of the College should never sign a grant proposal, grant or contract on behalf of Worcester State College. Statutory authority to sign these types of documents rests with the College President and those with delegated authority. This authority is derived from Massachusetts statutes, Trustees policy, and institutional policies. The positions listed below have been given delegated signatory authority (also known as the authorized official) on the grants, agreements and/or proposals and applications for grants as indicated. This policy does not preclude PI’S, PD’s, Department Heads, and other individuals from signing internal processing documents or the proposal or award if so called for by the funding agency.
· Proposals – To submit a grant proposal, a completed approval sheet must be completed with the following signature approvals: PI, Department Chair, Grant Officer, Area Vice President, and the Vice President for Administration and Finance.
· Awards – The Executive Leadership Team approves the acceptance of a grant for the College. The President of the College signs the acceptance of an award and thank you letter.
· Contracts – Contracts of less than $2,500 may be signed by the Area Vice President; Contracts of more than $2,500 must be signed by the Vice President for Administration and Finance. All grant related contracts must first go to the Grants Office for review.
· Purchasing documents, time and effort documents, and reporting documents must all be signed and certified by the PI or PD.
All documents related to a grant project, including but not limited to proposals, awards, payment vouchers and grant related contracts, must first be processed through the Grants Office.
For a contract to have validity and enforceability, it must be signed by the person with specific statutory delegation to sign on behalf of the College. Therefore, if a grant proposal or award is NOT signed by the correct person, the contract, grant, agreement, proposal or application is void and unenforceable.
Potential Consequences for Unauthorized Signatures
Any PI, PD, faculty or staff member who signs a grant proposal or award on behalf of Worcester State College without actual authority to do so assumes extensive personal legal liability. The following potential consequences should be considered:
· Because the individual does not have the signatory authority to bind Worcester State College, the college is not bound by that agreement and is not obligated to provide lab or office space, personnel, accounting, purchasing, or any other support needed to carry out the work described in the sponsored program.
· If a Worcester State College employee uses college facilities and personnel to conduct research or other sponsored activities not otherwise approved through proper college procedures, the employee may be subject to discipline for misappropriation of governmental property and/or resources.
· Without an authorized signature, the individual who signed the agreement is personally liable for performance of the agreement and adherence to all of the laws, rules and regulations relating to the agreement, including, but not limited to, the Internal Revenue Code and state tax laws. If signed without authority, taxes may be imposed on the entire amount of research funding as personal income to the individual.
· A PI, PD or other employee who signs a proposal or agreement without authority to do so may be subject to claims by the sponsor of the project or the college for fraud or misrepresentation if the PI, PD or employee led the sponsor to believe that he/she did indeed have the authority to sign on behalf of Worcester State College.
· The professional reputation of the PI/PD will suffer if a PI/PD is required to go back to an organization after an unauthorized signature has been given and explain that the sponsor does not have a legally binding agreement with Worcester State College.
January 2010
Administration and Finance