RUL - 30.06.23 Procurement Card

1. Purpose

The purpose of the North Carolina Central University (NCCU) Procurement Card (P-Card & T-Card) Program is to simplify procurement and payment processes for low dollar goods and services, to speed up the process of paying vendors, to generate rebate which can help pay for the costs of the program, to save money; and to assist with business travel needs. This program is designed to maintain accountability and provide a more efficient cost-effective method for procuring small dollar goods and services.

2. Authority

The P-Card Program is governed by the state of North Carolina Department of Administration, Division of Purchase and Contract, under Administrative Code 01 NCAC 05B.1523 and the 946A-Procurement Card State Term Contract. It is administered by the NCCU’s Purchasing Department. P-Card accounts are issued and used exclusively for NCCU business purchases only.

3. Scope

The NCCU P-Card is a corporate VISA credit card issued through Bank of America Merrill Lynch (BOA) with corporate liability. Its primary purposes are:

• To pay for business related goods and services purchased on behalf of the University.
• To facilitate rapid payment of low dollar goods and services purchased within the guidelines of the University Purchasing Guidelines.
• To reduce costs and streamline the steps associated with traditional procurement processes; and to
• Provide fraud protection in the purchase of various goods and services.

4. Roles and Responsibilities

University employees and management play key roles in supporting the P-Card Program. A summary of each role and its responsibilities is provided below. All individuals who participate in the Purchasing Card Program must successfully complete training appropriate for their roles.
Approval for participation in the Procurement Card Program rests with a Vice Chancellor or Senior Cabinet level official, or their designee, based upon business needs of the unit, and their ability to fulfill program requirements.

4.1  Cardholder

Cardholders are responsible for the proper use of the P-Card when buying goods and services for University business purpose. The P-Card must follow relevant spending guidelines and may not be used to circumvent other required University purchasing and payment methods. Cardholders are prohibited from using the card for cash transactions or to receive cash credits. Individuals who travel more than five times per year should be eligible for a purchasing card for travel purposes. ,However, travel exceeding three times per year may also be considered. The responsibilities of a Cardholder are as follows:

• Successfully complete annual training and sign the Procurement Card Agreement every year.
• Ensure compliant use of the P-Card according to University policies, purchasing guidelines, and the P-Card Program Manual.
• Always maintain the P-Card in a secure location.
• Never allow anyone else to use the P-Card assigned to them.
• Ensure transactions are not split to circumvent spending limits or University guidelines.
• Ensure NC Sales and Use Tax is not charged on purchases.
• Ensure each purchase transaction has a valid receipt, and that the receipt clearly states the vendor name, date of purchase, item description, and total amount of purchase.
• Initiate reconciliation and sign-off of P-Card transactions.
• Clarify the transaction item description or business purpose of the expense.
• Maintain documentation to support each purchase transaction.
• Assist with resolution of billing discrepancies, disputes, and credits.
• Contact BOA and the Program Administrator immediately if the card is lost or stolen.

4.2  Reconciler

The Reconciler and Cardholder may be the same individual. The decision as to who shall serve in this role is determined by the specific department. The responsibilities of a reconciler are as follows:

• Receive and upload original receipts from the Cardholder into Works®.
• Compare receipts with the electronic transaction record in Works®.
• Review and approve each transaction in Works® to ensure the following:
  • Purchased item(s)/service(s), charged amount, and the vendor name match the receipt.
  • Verify North Carolina sales and use tax are not included.
  • Verify the description of the expense is clear.
  • Verify the business purpose of the expense is clear, and provide required and supporting documentation.
  • Verify the correct Fund, Organization, Account, and Program (FOAP) are utilized.
• Resolve discrepancies with Cardholder, when necessary.

4.3 Approver

• Ensure the Accountholder uses their P-Card in compliance with University Policies, purchasing guidelines, and the P-Card Program Manual.
• Reviews transactions in Works® to verify purchases are documented and charged to the correct Fund, Organization, Account, and Program (FOAP).
• Review transactions for reasonableness of spending.
• Ensure the cardholder has not exceeded the spending limits or fund budget on any transaction.
• Review to ensure the cardholder has not split any transactions to circumvent spending limits or University purchasing guidelines.
• Reviews accuracy of receipts uploaded in Works®
• Ensures transaction review and signoff is completed by the 1st of the month following the end of the billing cycle.
• Ensures a P-Card Maintenance Request Form or P-Card Termination Form is submitted if an employee transfers to another department or terminates employment, or if card use is non-compliant with policy and procedures.

4.4 Department Head

• Provides fiscal oversight and management of business operations within the department.
• Oversees the use of the P-Card within the department and take appropriate action with departmental staff when necessary.

4.5 Program Administrator

• Provides oversight and management of the program.
• Identifies best practices in the industry and gaps in the university’s performance.
• Ensures good customer service to promote efficiency of use, while still remaining compliant with relevant policies.
• Develops and delivers effective training for users.
• Ensures program compliance and quality assurance.
• Enforces University Policy on P-Card Infractions.
• Promotes proper P-Card usage by working with departments to minimize violations and infractions of card usage.
• Disburses Purchasing Cards.
• Ensures that rebate earned through the program is used to enhance compliance and ensure adequate staffing for the program.

5. Spending Limits and Guidelines

• Spending limits per transaction are defined by the Division of Purchase & Contract in State Term Contract number 946A.
• All purchases must be made in accordance with applicable purchasing guidelines.
• All purchases must adhere to the NCCU Spending Guidelines and the Travel Spending Guidelines. Travel Restrictions can be found in the T-Card Program Manual.
• NCCU annually evaluates spending limitation on individual cards, may vary with roles and type of procurement card.

6. Disputed Transactions

Purchases appearing on the monthly bank statement may be disputed within thirty (30) days from the statement date. It is the cardholder’s responsibility to identify and dispute any erroneous charges before the thirty-day limit.

7. Weekly Account Reconciliation

The cardholder is responsible for obtaining itemized receipts with pricing for every transaction that appears on the monthly account statement. Two distinct authorized approvals – one from the cardholder and one from the approver - are required to finalize the reconciliation. Reconciliation approvals and supporting documentation for all transactions occurring Monday through Friday must be completed by 12:00 pm on Wednesday of the week following the transaction’s posting date.

8. Late and Incomplete Reconciliation

Any cardholder account with activity during a billing cycle must complete reconciliation by the required deadline. Reconciliation not approved and finalized by the deadline will be - deemed late and the account shall be placed on a spending hold. The Program Administrator has the authority to lift the spending hold upon the completion of the reconciliation process.

9. Intentional Misuse

9.1 The P-Card is issued for University business purchases only. Any intentional misuse of the P-Card is grounds for cancellation of the account. The cardholder’s supervisor and the Department Head, in consultation with Human Resources, are responsible for taking appropriate action consistent with applicable personnel policies. Pursuant to Section 143-58.1 of the General Statutes, it is unlawful for any person to purchase, attempt to purchase, or procure any property or services for private use or benefit. Such violations constitute a Class 1 Misdemeanor. Penalties for violations of the General Statutes, North Carolina Administrative Code, and Purchase & Contract Procedures may include termination of employment, fines, and imprisonment.

9.2 Pursuant to Section 143-58.1 of the General Statutes, it shall be unlawful for any person to purchase, attempt to purchase, or procure any property or services for private use or benefit. Such violations constitute a Class 1 Misdemeanor. Penalties for violations of the General Statutes, North Carolina Administrative Code, and Purchase & Contract Procedures may include termination of employment, fines, and imprisonment.

10. Exceptions

Only the Director of Purchasing or the Purchasing Card Administrator are allowed to provide written exception(s) to spending on non-allowable Purchasing Card items.

11. Procurement Card Infraction

All transactions made with the P-Card are subject to audit. Cardholders in violation of compliance will have card privileges suspended or permanently revoked and will face additional disciplinary actions up to and including termination of employment.

Procurement Services and the P-Card Program Administrator reserve the right to revoke and cancel any P-Card for failure to comply with policies and procedures of the program at any time.

Infractions will be tracked on a rolling 12-month (fiscal year) basis. The P-Card team reserves the right to reduce or escalate corrective actions at their sole discretion.

11.1 Procurement Card Infraction Types

• Repeated failure to reconcile transactions by Wednesday of each week.
• Failure to provide a valid business justification and receipt of purchase.
• Failure to immediately report loss or theft of a card upon discovery.
• Splitting transactions to circumvent transaction limits.
• Failure to supply valid receipt, invoice, or other support documentation.
• Using P-Card to purchase non-allowable items per the P-Card policy or misuse of any temporary exception to Purchasing Card restrictions.
• Failure to ensure the correct business account is assigned to the P-Card transactions and clear the P-Card clearing account every month.
• Other infractions warranting disciplinary actions, as deemed appropriate by P-Card Administrator or the Cardholder’s Department Head.

11.2 Offenses of Misuse

11.3 Criminal Activity

If a Cardholder intentionally makes a personal purchase, it constitutes theft of state property. Immediate card revocation will occur. The Cardholder’s Division Head, the Vice Chancellor of Administration and Finance, and University Police and Safety will be notified. Appropriate disciplinary action will be taken, and the Cardholder will not be eligible for future P-Card use.

12. Purchase Orders and Receipts

The procurement of goods and services require an advanced purchase order or expenditures during pre-approved travel require a pre-authorization for travel related expenses and documented receipts. For those items procured with a purchase order, the purchasing card may be used for payment, but use of the Purchasing Card does not obviate the need for a purchase order prior to expenditure.