View/Hide Spending Authority Policy
SPENDING AUTHORITY POLICY
Effective Date: July 2026
Purpose
This policy establishes spending authority levels and approval requirements
for all purchase requisitions and expenditures. It applies to all employees
initiating purchases on behalf of the company.
This policy applies to all departments and covers non-job-related goods,
services, and any expenditure processed through the accounts payable
function. Capital expenditures, payroll, and pre-approved blanket purchase
orders are subject to separate authorization procedures.
Spending Authority Levels
All purchases must be approved by the appropriate authority prior to
issuance of a purchase order. Approval thresholds are based on the total
value of the transaction, including all fees, shipping, and applicable
taxes.
|
Tier
|
Spend Range
|
Primary Approver
|
Secondary Approver
|
|
Tier 1
|
Under $500
|
Department Manager
|
Not Required
|
|
Tier 2
|
$500 – $2,500
|
Department Manager
|
Finance
|
|
Tier 3
|
$2,500 – $10,000
|
Department Manager + Finance
|
Executive Approval
|
|
Tier 4
|
Over $10,000
|
Finance + Executive
|
Frank Peczuh
|
Approvers listed as ‘Not Required’ are not needed for that tier, but the
primary approver is always required regardless of spend level.
The following rules govern purchasing authorization and apply to all tiers:
1. No purchase order may be issued without a completed and approved
purchase requisition on file.
2. Split transactions — dividing a single purchase across multiple
requisitions to avoid a higher approval tier — are prohibited.
3. Verbal approvals are not acceptable. All approvals must be documented
on the requisition form or via company email and attached to the AP package.
4. Emergency purchases exceeding an employee’s authorization level must
receive retroactive written approval within two business days.
5. Vendor selection for purchases over $2,500 should include a minimum of
two competitive quotes where reasonably available.
6. All approved requisitions must be submitted to Accounts Payable before
goods or services are ordered.
Exceptions and Escalations
Exceptions to this policy require written justification and must be approved
by the VP of Finance. Recurring exceptions will be reviewed quarterly. Any
employee who authorizes or processes a purchase outside of these guidelines
may be subject to disciplinary action.
Scope
This policy applies to all departments and covers non-job-related goods,
services, and any expenditure processed through the accounts payable
function…
