• Seton Hall University
• Policies and Procedures

Purpose

The purpose of this policy is to set forth standards and responsibilities associated with initiating and authorizing expenditures, and other financial commitments, that ultimately result in the expenditure of the funds of Seton Hall University (the “University”). This policy is intended to protect University resources by requiring that the use and commitment of University funds fulfill a University business purpose and is undertaken in a responsible and appropriate manner consistent with University policies, the University mission, applicable law, and ethical practices.

Scope

This policy applies to all employees who are responsible for transactions involving the expenditure and/or commitment of University funds, regardless of the funding source, either as an Initiator or as an Approver.

Definitions

Initiator: An employee, designated by the appropriate member of the Executive Cabinet of the University (the “Executive Cabinet”), who is vested with the financial and budgetary responsibility to assess and determine whether a proposed expenditure or commitment of funds (a “transaction”) appropriately satisfies a business purpose and, if a business purpose is appropriately satisfied, is authorized to then originate the transaction, consistent with other University policies. In so doing, the Initiator is certifying that the transaction fulfills a business purpose and is consistent with other University policies.

Approver: An employee, designated by the appropriate member of the Executive Cabinet, who is vested with the financial and budgetary responsibility to certify that the transaction appropriately satisfies a business purpose, consistent with other University policies, and that sufficient funds are available to fulfill the transaction.

Delegated Approver: An employee to whom an Approver may delegate their authority, only after written authorization by the Approver’s applicable member of the Executive Cabinet and the Vice President of Finance and Chief Financial Officer (the “CFO”). The Approver shall, at all times, remain responsible for all transactions authorized by the Delegated Approver.

Business Purpose: The necessary, reasonable, and appropriate University need justifying the transaction. Transactions must support or advance the goals, objectives and mission of the University. The business purpose answers the question as to why the transaction is to be made.  Each transaction submitted to an Approver must be accompanied by a description of the requisite University business purpose which must be clearly written and in easily understood, non-technical terms.

Fiscal Stewardship: Ethical, responsible, prudent and effective management and commitment of University funds in accordance with University policies, the mission of the University, applicable law and ethical practices.

Policy

Seton Hall University strives to promote fiscal accountability and efficiencies when performing any and all financial transactions and utilizing University resources. University funds are derived from multiple sources, including tuition and fees, gifts, endowments, grants, contracts and restricted funds. To achieve fiscal stewardship, all financial transactions must satisfy a business purpose and comply with the mission of the University, all University policies, procedures, applicable law and ethical practices.

The following fiscal stewardship responsibilities are to be fulfilled in order to achieve the prudent financial management of all University funds:

1. All Initiators and Approvers are responsible for the fiscal stewardship of University resources.
   
   
2. Each Approver is responsible for ensuring that the Approver has the appropriate authority to approve a transaction.
   
   
3. Delegation of authority by an Approver.
   
   
1. Approvers may delegate their authority, for non-personnel transactions only as defined below, up to the monetary limit established by the University for the Approver, in those limited instances where the delegation will enhance the effectiveness and efficiency of the business of the University without jeopardizing the integrity of the transaction.
   
   
2. Approvers are permitted to request delegation of their authority only to those employees who report directly to the specific Approver.
     
3. Approvers are responsible for ensuring that a proposed Delegated Approver has the requisite financial and budgetary expertise to fulfill the responsibilities of an Approver.
   
   
4. Delegation of authority can be limited to specific transactions.
   
   
5. Any request by an Approver to delegate authority shall be submitted to the CFO for review and approval, but only after receipt of written approval of such delegation from the Approver’s applicable member of the Executive Cabinet.  The request shall include (i) the types of transactions for which such approval authority is sought, (ii) the maximum approval amount for each type of transaction, and (iii) any other limits or specifications placed on such employee’s approval authority.
   
   
6. Delegation of authority is limited to a period of up to one (1) year.  If the Approver seeks a continuation of the delegation, Approvers shall be required to reaffirm their requested delegation, in whole or in part.
   
   
7. Notwithstanding anything to the contrary, the Approver shall remain responsible for all transactions approved by their Delegated Approver.
   
   
8.  For the avoidance of doubt, delegation of authority cannot apply to personnel matters, including but not limited to, salary, stipends and all other forms of compensation.
   
   
9. Employees who are delegated approval authority cannot thereafter delegate such approval authority that they were delegated to other employees. 
   
   
10. For purposes of this policy, reference to “Approver” shall include a “Delegated Approver.”
    
    
4. All Initiators and Approvers are required to always act with integrity in exercising their financial and budgetary responsibilities when managing University funds. This includes ensuring that all financial transactions are in the best interests of the University, satisfy business purposes of the University, and are reasonable, and appropriate.  Initiators and Approvers must always exercise sound judgment in carrying out their duties. Approvers must ensure that the requested financial transactions comply with University policies, procedures and applicable federal, state and local law and regulations.  
   
   
5. Transactions involving grant funds or gifts must be in accordance with the terms and conditions as agreed between the University and any sponsor or donor. 
   
   
6. All Initiators and Approvers shall protect University resources against theft, loss, unauthorized use, and improper disposition.

Approval and Review Process

1. Each transaction submitted by an Initiator to an Approver shall be accompanied by a description of the requisite University business purpose, which must be clearly written and in easily understood, non-technical terms.
   
   
2. At least two (2) employees, including an Initiator and an Approver, must render determinations regarding every financial transaction involving an expenditure or other financial commitments of the funds of the University.
   
   
3. Employees cannot approve transactions involving themselves, their family members or others, as proscribed by the University Policy on Conflict of Interest and Commitment, https://www.shu.edu/policies/conflict-of-interest-and-commitment-policy.html nor those employees to whom they report. Transactions requesting payment to, or that benefit, an employee with approval authority, always require approval by the next higher level of fiscal authority.
   
   
4. Initiators shall be responsible for transactions they initiate.
   
   
5. Approvers shall be responsible for transactions they approve.
   
   
6. Each Approver must affix the Approver’s own signature (physical or electronic, as permitted) to any documents involving the expenditure and/or commitment of University funds. Signing or affixing another employee’s name is strictly prohibited.
   
   
7. The University may revoke the approval authority or delegation authority of any employee at any time and for any reason. Division vice presidents and other members of the Executive Cabinet can revoke approval authority or delegation authority of any employee who reports directly or indirectly to them.

Compliance

If an expenditure or financial commitment is in violation of this policy, the Initiator and/or Approver may be subject to disciplinary action, up to and including termination, referral to appropriate law enforcement agencies, and any other actions deemed appropriate by the University, including the pursuit of restitution.

Related Policies

• Negotiating and Entering into Contracts and Leases
• Gift Policy: Acceptance, Reporting and Naming
• Purchasing Policy Overview
• Credit Card Policy
• University Policy on Conflict of Interest and Commitment

Responsibile Office

Office of the Vice President for Finance & Chief Financial Officer

Approval

Approved by Monsignor Joseph R. Reilly, S.T.L., Ph.D., President, upon the recommendation of the Executive Cabinet on January 7, 2026.

Effective Date

January 7, 2026