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| SUBJECT: |
FINANCIAL AFFAIRS |
EFFECTIVE: December 16, 2004 |
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| Section: |
840 Contract Review |
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- Each institution shall adopt procedures establishing contract approval and signing authority and ensuring that contracts and contract amendments are reviewed and approved prior to execution by institution officials. Except as otherwise stated by law or Board policy, presidents shall have general approval and signing authority for their institutions and may delegate such authority under institution procedures. Contracts shall be reviewed by the Board's or institution's legal counsel or other qualified person delegated that responsibility by the institution's president under institution procedures. Standard form contracts, including employment contracts, purchase orders and other standard forms, and documents that are substantially equivalent to documents previously reviewed and approved by legal counsel do not require further review.
- A document containing a clause requiring the state, the Board or one of its institutions to hold another party harmless or to indemnify another party must be reviewed and approved by legal counsel and may be executed only if there is an appropriation, liability insurance for that purpose, as otherwise specifically permitted by law, or if the clause is qualified or limited by language restricting its application to the extent permitted under North Dakota law.
- The Board's legal counsel shall review and approve all contracts involving the Board or system office.
- Board approval is required for bond issues, tax-exempt financing, real property transfers, new buildings or additions, building or facility improvements estimated at more than $100,000, or agreements committing to establishment or modification of academic programs. Contracts to which the Board is a party shall, absent a Board policy or resolution delegating such authority to someone else, be signed by the Board president and attested to by the Board secretary. The chancellor shall have general signing authority to sign contracts to which the university system is a party and may delegate such authority in a written procedure.
- Written contracts are required for all binding agreements with another party that involve any stated or implied consideration, including real property transfers, leases, purchase of equipment, supplies and services, cooperative agreements, interagency agreements, grants, loans, easements and licenses.
Reference: NDUS Procedure 840 |
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| HISTORY: |
New policy. SBHE Minutes, May 21-22, 1987 page 5602.
Amendment SBHE Minutes, November 3-4, 1994, page 6515.
Amendment SBHE Minutes, September 26, 2002.
Amendment SBHE Minutes, December 16, 2004. |
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