Purchasing and Contract Authority and Responsibility  

This policy applies to the purchase of goods and services on behalf of Earlham College and the Earlham School of Religion and is applicable to any individual who commits institutional funds to be allocated to a purchase of any kind.

Earlham uses a mix of centralized and decentralized purchasing processes. All purchasing (contract, purchase order, credit card, and/or other methods) and related contract decisions must be made in the best interest of the institution and in compliance with all external requirements.

This policy outlines approval processes and signature authority as delegated by the President and other officers of the College.

1. Purchasing authority is vested in the Board of Trustees and delegated to the President, Provost/Chief Academic Officer, and Chief Financial Officer/Treasurer.
2. Only authorized Earlham personnel with authority delegated by these officers may commit institutional funds for the purchase of goods and services.
3. Signature authority for contracts and other agreement types that obligate Earlham to a purchase of goods and/or services is delegated as noted below and expressly denied to others. This delegation does not extend to purchase of “deeded” property.

4. Signature authority for contracts and other agreement types that obligate Earlham to the lease of space, external use of Earlham property, and/or property-use-related services is delegated as noted below and expressly denied to others. Signature authority does not eliminate the need to consult with primary users of space such as coaches responsible for day-to-day management of athletic facilities.

5. Earlham’s policy on Signature and Submission Authority for Sponsored Programs establishes signature and submission authority for sponsored programs, awards, and grants from government agencies and foundations.
6. Regardless of signor, all contracts must be reviewed to ensure they meet Earlham’s legal, insurance and operational requirements. Additionally, they must be appropriately filed within five days of execution.
7. Specific Additional Approval: Certain contracts and purchases, regardless of the value of the contract or payment method, require approvals from one or more individuals noted below. When a purchase or agreement falls within more than one category, all approvers must approve the purchase before it is executed. (e.g., grant funded 1099 contractor requires approval from the Office of Grants and Sponsored Research as well as the Director of Human Resources).

8. Purchases within approved budgets: College Offices/Departments are responsible for their respective expenditures and securing required approvals as outlined in this policy. Earlham personnel may execute purchases within their approved budget with authorizations as outlined below.

9. Out-of-Budget Requests and Approvals: During the course of the fiscal year, units may encounter changes in initiatives or priorities, externally imposed mandates, or unanticipated expenses not initially included in the approved budget. Requests for such purchases require approvals as indicated below.

It is the responsibility of the contract signor to ensure the contract is filed with the office noted below within five (5) business days of execution. This requirement is in addition to any process or requirement for storage in another area of the college.