Office of the Executive Vice President
Initiatives
Transaction Authority
The Transaction Authority project grew out of the periodic review of the University’s bylaws by the Board of Trustees. The Trustees requested that the University review how authority to commit the University to agreements and other obligations with outside parties flows from the Trustees to those who transact business on behalf of the University. In April 2006, the Executive Compliance Committee (ECC) asked a small project team to assess transaction authority at Princeton. The project team gathered information from many people, including Cabinet officers, department chairs, and administrative and academic managers. The Transaction Authority Report (June 2007) accomplished two things: (1) it articulated the existing delegation of authority throughout the University and (2) it proposed recommendations for improvements to University process. A report was made to the Board through its Audit & Compliance Committee, and the recommendations were adopted by the University.
The ECC then asked a Working Group to implement the recommendations of the Report over the 2007-2008 year. The Working Group has distilled the Report into a draft Transaction Authority Policy and will be developing many additional tools and resources, including training, over the coming months. The draft policy is intended to achieve three purposes: (1) clarify delegation of authority to individuals to commit to transactions with third parties; (2) establish dollar thresholds above which secondary approval is required; and (3) articulate when departments are expected to consult with others within the University prior to binding the institution.
Working Group Members
Information or questions: Please contact Maureen McWhirter at mmcwhirt@princeton.edu or Hannah Ross at hross@princeton.edu.