FN11 Contracts and Leases

To state the authority for signing contractual documents which include, but are not limited to: agreements, contracts, leases (for real estate or equipment), construction documents, entertainment industry contracts, academic affiliation and research collaboration agreements, and agreements for the utilization of non-Penn State property.

SCOPE AND AUTHORITY:

Except as stated under LIMITED DELEGATION OF SIGNATURE AUTHORITY below, all contractual documents, must be signed by one of the following University officials as authorized by the Board of Trustees to contractually bind the University:

President, Vice President, Secretary, Treasurer, Assistant Treasurer (Board Officers), and Senior Vice President for Finance and Business, and the Associate Vice President for Budget and Finance (University Officers). In addition, for all agreements and contracts related to the affairs of the Milton S. Hershey Medical Center, the Assistant Vice President for Finance and Business and Controller, and in their absence, the Associate Controller.

LIMITED DELEGATION OF SIGNATURE AUTHORITY:

As expressly authorized by the Board of Trustees, the Treasurer, or in their absence, the Senior Vice President for Finance and Business may delegate in writing to such employees of the Corporation as they may deem appropriate, the authority to execute and acknowledge on behalf of the University's standardized agreements and contracts for which those employees have administrative responsibility. These delegations (except for the Milton S.Hershey Medical Center) are detailed in FNG02 Limited Delegation of Contract Approvals.

FURTHER INFORMATION:

For questions, additional detail, or to request changes to this policy, please contact the Office of Budget and Finance.

CROSS REFERENCES:

Most recent changes:

• February 1, 2023 - Editorial changes, per the directive of the Senior Vice President for Finance and Business:
  • Changed all references to the Associate Vice President for Finance to the Associate Vice President for Budget and Finance.
  • Changed all references to the Associate Vice President for Finance and Business and Corporate Controller for the College of Medicine to the Assistant Vice President for Finance and Business and Controller for the College of Medicine.

  Revision History (and effective dates):

  • January 5, 2023 - Editorial changes. Changed all references to the Office of the Corporate Controller to the Office of Budget and Finance, per the directive of the Associate Vice President for Finance.
  • September 2, 2022 - Editorial change to change Policy Steward from Associate Vice President for Finance and Corporate Controller to Associate Vice President for Finance.
  • November 8, 2018 - Subject Matter Expert added.
  • September 13, 2018 - Editorial changes to add Cross References section and to remove redundant Date Approved, Date Published, and Effective Date information.
  • June 26, 2014 - Editorial changes. In SCOPE AND AUTHORITY section, first sentence of paragraph #2, changed the reference from "Corporate Controller" to "Associate Vice President for Finance and Corporate Controller." In the last sentence of paragraph #2, changed "Assistant Controller" to "Associate Controller."
  • September 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
  • October 22, 2001 - Deleted Associate Treasurer from SCOPE AND AUTHORITY section.
  • February 9, 1998 - Under Scope and Authority, 'Associate Vice President for Health Finance and Controller' changed to 'Associate Vice President for Finance and Business and Controller.'
  • August 11, 1997 - Under Scope and Authority, Hershey's 'Assistant Controller' replaces 'Chief Operating Officer and Executive Director, University Hospital.'
  • January 12, 1996 -
    • 'Vice President for Finance' changed to 'Senior Vice President for Finance and Business.'
    • Added provision for the Treasurer, or in his/her absence, theSenior Vice President for Finance and Business, to delegate in writing to employees authority to execute and acknowledge standardized agreements.
    • Changed the Associate Vice President for Finance, and theCorporate Controller from 'officers of the Corporation' to 'officers of the University.'
    • Added provisions for contracts and sub-contracts for sponsored(e.g., research) funds.
    • Added special provision for equipment lease agreements containing a clause indicating Penn State will comply with IRS information reporting requirements.