What is a 'signing authority matrix'?

• A. A document listing who has authority to approve and sign checks, with limits and escalation procedures.
• B. A form for employee time-off requests
• C. A schedule of board meetings
• D. A chart of accounts

Answer: (A)

A signing authority matrix defines who has the authority to approve and sign checks and other payments, along with the dollar limits and escalation steps. It clearly assigns roles (such as treasurer, finance manager, or department heads), specifies how many signatures are required for different payment amounts, and outlines what approvals are needed if a payment exceeds certain thresholds or falls outside normal routines. This structure supports strong internal controls by enforcing separation of duties, preventing unilateral large payments, and providing a clear, auditable trail for payments. It also helps ensure consistency and quicker resolution when approvals are needed.

Other items in the list don’t fit this concept: a form for employee time-off requests is about staffing and human resources, a schedule of board meetings is about governance timing, and a chart of accounts is about organizing financial data and reporting.