Summary
This knowledge base article explains that Minnesota State contracts may be signed only by individuals with current written delegated authority and only within the limits of that delegation. It outlines the $3 million threshold requiring prior Board of Trustees approval, identifies additional system-level routing requirements, and provides a checklist for verifying total contract value, required reviews, signer authority, approvals, and record retention before execution.
Body
A Minnesota State contract may be signed only by an individual who has written delegated authority for contracts and amendments, and only within the dollar limit and other conditions of that delegation. Additional Board or system-level approvals may apply.
Who is authorized to sign?
The authorized signer is the individual identified on a current Minnesota State Delegation/Rescission of Authority form with authority for Contracts and Amendments and Authorized Signer. The signer may execute an agreement only when its total value does not exceed the maximum amount stated in the delegation.
A job title alone does not establish signature authority. Before routing a contract for signature, confirm the individual’s written delegation and applicable dollar limit.
What limits apply to delegated authority?
- Delegated authority remains subject to Board policies, system procedures, applicable statutes, law, and other state requirements.
- A delegation cannot override approval, consultation, reporting, procurement, or contract-review requirements.
- The signer’s authorized dollar limit applies to the maximum value of the contract, amendment, or agreement.
- Contract managers must verify adequate delegated authority before routing an agreement for signature.
When is Board approval required?
Under Board Policy 5.14, prior Board of Trustees approval is required for a contract with a Total Contract Value (TCV) of $3 million or more. Board approval is also required for an amendment, renewal, extension, or option that would increase the contract’s TCV to $3 million or more.
TCV includes monetary commitments associated with renewals, extensions, and options. For transactions requiring Board approval, the Board action typically authorizes the chancellor or the chancellor’s designee to enter into the transaction and execute the necessary documents.
Under the current routing process, Bill Maki, Vice Chancellor for Finance and Facilities, executes these contracts pursuant to delegated authority. This Board-approval and system-level signature requirement is separate from, and takes precedence over, a campus CFO’s individual delegated signature limit. Contracts below the Board threshold may still require other system-level approval, consultation, or reporting under the applicable 5.14 procedures.
Before routing a contract for signature
- Calculate the full TCV, including renewals, extensions, options, amendments, and other monetary commitments.
- Confirm that required procurement, legal, risk, financial, and system-level reviews are complete.
- Verify that the proposed signer has a current written delegation covering contracts and amendments.
What if authority is unclear?
Do not sign or route the contract to an assumed signer. Contact your institution’s procurement or contract management office to confirm the delegation, required approvals, and routing path.
Related policies and resources
- Board Policy 1A.3, Part 4
- Minnesota State Delegation/Rescission of Authority form
- Board Policy 5.14, Contracts, Procurements, and Supplier Diversity
- Procedure 5.14.5, Purchasing
- Minnesota State Contracts Manual
- Minn. Stat. §§ 136F.06 and 136F.581
- Minn. Stat. § 471.345
- Minn. Stat. Chapters 16A, 16B, and 16C, including § 16A.15, subd. 3