Policy: 2.6 Authority to Sign Policy 
Section: Finance

Download Authority to Sign Policy

1.Purpose  

The responsibility for the safekeeping and prudent expenditure funds of the Northern Association of Community Councils Inc. (NACC) rests with the Board of Directors. In observance of this duty, the Board of Directors has delegated signing authority of cheques to Board officers and to designated signing authorities. Additionally, this policy establishes clear guidelines for the approval, signing, and management of contracts and agreements to ensure accountability, financial responsibility, and legal compliance within the NACC.

2. Authority

Under NACC By-laws, directors may adopt, amend, or repeal policies relating to the governance, management, operation, and affairs of the Corporation that are not inconsistent with the NACC’s By-laws, as the directors may deem appropriate from time to time.

3. Policy  

This Policy applies to all employees of NACC who have been provided with company equipment. 

a) General Restrictions 

  • All cheques must be signed by two authorized co-signers.
  • Any cheque issued to an officer or manager of NACC, may not be signed by that officer or manager as a co-signor, where possible.
  • All expenditures of $3,000.00 or more shall be paid by cheque

To avoid liability and to control risk management, all of the following types of documents need to be approved and signed by the Executive Director:

  • Licenses
  • Personnel Contracts
  • Operational contracts within authority to purchase limits and budgetary restraints. (sign by Executive Assistant / Administrative Assistant in the absence of Executive Director)
  • Any other document creating a legal agreement

All of the following types of documents need to be approved and signed by the Board of Directors:

  • Leases
  • Any other document that relates to the use, occupancy, purchase, sale, lease or encumbrance of property.
  • Long term contracts and/or contracts exceeding authority to purchase limits or budgetary restraints.

b) Officers of the Board

  1. Any two authorized signatories may sign all cheques issued by the NACC. 
  2. It is mandatory that a Board Member sign all cheques over $5,000.00.

c) Authority to Sign - Contracts

i) With respect to agreements, two signatures are required from any one of:

  • Executive Director

  • Board Member with signing authority

  • Executive Assistant in the absence of Executive Director

ii) Contracts under $5,000 will be signed in accordance with the above General Restrictions provision of this policy.

iii) The Board confers authority to the Executive Director to make offers and sign agreements of employment.

iv) Prior approval by the Board (documented in meeting minutes) will be required with respect to: 

  • Any contract, including contracts for the purchase or sale of goods or services, where the obligation of or the benefit to NACC exceeds $5,000;
  • Any contract or agreement which in the opinion of the Executive Director exposes NACC to an uncertain and potentially significant liability;
  • Any contract or agreement which in the opinion of the Executive Director is precedent-setting or involves sensitive issues;
  • Any lease, license or other agreement for the use or occupation of NACC where the term is or may be in excess of five years (including therein any periods of renewal or extension provided for in the lease, license, or agreement) or the annual rental or other annual payment related thereto exceeds $5,000;
  • Any actions which require the prior approval of a government official (e.g. Minister of Education, Minister of Finance);
  • Any contract or agreement which a Board Committee requests be brought before the Board for approval.

d) Legal Review

Contracts of $50,000 or more shall be reviewed by legal counsel.

e) Compliance with Policy Mandatory

No person is authorized to sign any document that creates an obligation or undertaking on behalf of NACC unless that contract has been reviewed and approved in accordance with this policy; and that individual has signing authority in accordance this Authority to Sign Policy.

4. Monitoring and Review

This policy will be reviewed every two (2) years by the Executive Committee or more frequently if required to ensure compliance with any changes in employment standards to ensure its continued relevance and alignment with the NACC’s operations. Changes to the policy will be documented and communicated to the Board for approval.

5. Board Acceptance

This policy will be approved by the Board of Directors. The President / Chair of the Board will sign and date the policy to indicate its approval and adoption. 

Reviewed:  June 23, 2025 

Revisions Approved: June 23, 2025