Departmental Authorization Function

DAF AUTHORITY

DAF authority is a critical component of the University's control system. It assigns levels of authority to University employees to approve key transactions on the University's behalf. DAF authority is assigned for many transactions, including approval of purchase requisitions, invoice payments, salary accounting forms, journal entries, and Purchasing Card ("P-Card") transactions. For certain transactions, DAF authority is based on dollar thresholds that limit how much an individual is authorized to approve (see below).

Who Can Have DAF Authority?

Any University officer[1] may be delegated DAF authority by a "DAF Administrator" (see below). DAF authority is assigned by department and is limited to the department(s) for which DAF has been authorized.

Individuals may be assigned one or more types of DAF authority but not others. For example, an individual may not have DAF authority to approve purchase requisitions and payments, but may have DAF authority to approve journal entries.

In addition, an individual may be assigned different DAF authority for different departments. For example, an individual may have DAF authority to approve journal entries and purchase requisitions in one department but only to approve journal entries in another.

Senior Officers with Unlimited DAF Authority

All DAF authority except "unlimited DAF authority" is subject to limitations on the type or size of transactions that may be authorized. However, certain officers at the Executive Vice President ("EVP") level and above will have unlimited authority to approve any level of purchase requisitions and payments or to approve any other transaction subject to this policy. These individuals are designated as having "unlimited DAF authority." In certain cases, other individuals may be granted unlimited DAF authority as discussed in "Dollar Limits on DAF" below.

Dollar Limits on DAF

University employees may only be assigned the following DAF limits for purchase requisitions, invoice payments and P-Card transactions[2]. It is not permitted for a DAF to split the purchase of merchandise in order to circumvent these transaction limits.

•· Up to $500,000

•· Up to $100,000

•· Up to $30,000

•· Up to $15,000

•· Up to $2,500

•· Up to $500

However, there may be recurring operational needs to approve transactions greater than $500,000 for which it is not necessary to obtain the approval of an individual with "unlimited DAF authority". Examples of these special circumstances include recurring payments to utility companies and benefits providers, and construction payments where projects have already been approved through established policies. With the approval of the EVP for Finance, the Controller's Office may delegate DAF authority higher than $500,000 (including unlimited) to appropriate individuals to authorize such transactions. This authority is reviewed on at least an annual basis.

DAF Administrators

DAF Administrators are the only individuals authorized to delegate DAF authority and approve the creation, modification or deletion of DAF authority within the departments for which they have been designated. A DAF Administrator may be a senior officer such as a Dean, Vice President or a Senior Financial Officer such as an Associate Dean or Assistant Vice President. The Controller's Office may also delegate or modify DAF authority in any department and may be required to provide final approval of DAF authority designation in certain circumstances.

DAF Administrators are responsible for the administrative and financial leadership of their academic or administrative unit and must have knowledge of those authorized to commit their unit to financial transactions. DAF Administrators should consider the employee's scope of responsibilities when assigning levels of authority.

Considerations When Exercising or Delegating DAF Authority

DAF Administrators should assign appropriate DAF authorization to employees of their unit, considering what is necessary within the scope of the employee's responsibilities. Whenever feasible within a department, individuals with DAF authority that are responsible for approving transactions within University systems should be separate from the individuals initiating/entering transactions in University financial systems.

When approving transactions, individuals with DAF authority are in all cases responsible to verify the need for the transaction, the propriety and accuracy of the transaction, the availability of funding, the completeness of documentation, and that the transaction is in compliance with University, regulatory and funding agency policies and procedures. Individuals with DAF authority should exercise care in relying on information provided by others when approving transactions, and are in all instances ultimately responsible for the approval decision.

Annual Recertification

DAF Administrators are responsible for maintaining the roster of current DAF authorized individuals in their department(s) and should modify or delete an individual's DAF authority when warranted by a change in his/her status.

In addition, DAF Administrators will review a roster of current DAF authorized individuals on an annual basis and either confirm that the authorizations are appropriate or make modifications and deletions. The recertification must be completed by the requested date or approval authority will be suspended. This annual recertification of DAF authority plays a central role in ensuring that everyone continues to maintain the correct level of DAF authority.

FURTHER GUIDANCE

For further guidance on types of transactions covered and setting up a DAF authorized signer in the system, please refer to the Finance Gateway website [http://finance.columbia.edu/].

[1] In certain circumstances, non-officers may be granted "P-Card Holder" DAF authority. This is not considered an exception to the policy provided that such authority is commensurate with the individual's job responsibilities and provided that no other DAF authority is granted, including "P-Card Approver" authority. In addition, there may be instances where non-University employees are granted P-Card Holder DAF authority in accordance with the P-Card Policy. For further information, please refer to the P-Card Policy located in the Administrative Policy Library

[2] P-Card limits may be set separately in the P-Card system, but DAF requisition authority must be granted at an equal or greater level than the P-Card limit.