Skip to header Skip to Content Skip to Footer

05.160 Purchasing Card Program

The UNCW Purchasing Card Program allows for the easy, rapid purchase of goods and services both on-line and in store up to $5,000 per single transaction by University employees. Liability rests with the University and not the Cardholder, subject to proper use. This policy is intended to give reasonable assurance, in a cost-effective manner, that card transactions will be appropriate and show sufficient documentation. Appropriate maintenance of purchasing/payment receipts and other documentation is essential to the success of the program.

Authority:

Vice Chancellor for Business Affairs

History

Updated January 15, 2025; Links updated July, 2024; Updated March 31, 2020; Updated January 2017; Updated October 1, 2008 supersedes former Administration Policy No. PUR2.00, “Purchasing Card Program”; Updated January 1, 2008; Updated July 1, 2006; Effective May 1, 2001

Source of Authority:

Office of State Purchasing; UNC Policy 1300.7.2[R]; NCGS § 143-49; North Carolina Administrative Code Section 01 NCAC 05B .1523; the statewide contract established and maintained by the Division of Purchase and Contract (946A).

Related Links:

Responsible Office:

UNCW Purchasing Services

Policy Details:

  1. Purpose

    The UNCW Purchasing Card Program allows for the easy, rapid purchase of goods and services both on-line and in store up to $5,000 per single transaction by University employees. Liability rests with the University and not the Cardholder, subject to proper use. This policy is intended to give reasonable assurance, in a cost-effective manner, that card transactions will be appropriate and show sufficient documentation. Appropriate maintenance of purchasing/payment receipts and other documentation is essential to the success of the program. The delegation of authority to purchase goods and services using the Purchasing Card (or P-Card) is a privilege that automatically ceases upon separation from the University.

    The University has elected to utilize P-Cards in accordance with the law. While P-Cards present an inherent enterprise risk, P-Cards used optimally, with proper compliance management, provide a ready-made and convenient tool for the professionals serving the business needs of the University.

    This policy is designed to protect both P-Card users and the University. It is expected that all P-Card holders and P-Card program administrators, officers, and staff will uphold this policy and applicable state law to the highest degree. This policy aligns with the UNC System Office Regulation 1300.7.2[R] and is designed to uphold compliance with applicable state laws and regulations.

  2. Policy

    The provision of P-Cards places significant trust in university employees to utilize University resources solely in the best interests of the University. Thus, all purchases on a P-Card shall be strictly for official University business. As such, it is expected that University employees authorized to use a P-Card will do so in compliance with this policy and applicable state law. Use of the P-Card must be in compliance with existing State Contracts and any contracts that UNCW may have established. Use of the P-Card for personal purposes is strictly prohibited.

    For use of the P-Card for Business Entertainment purposes, completion and approval of the Business Entertainment form is required.

    Misuse of a P-Card, including but not limited to violation of this policy or applicable state law, or failure to adhere to the terms and conditions of the cardholder agreement as defined below, will result in revocation of the P-Card, potential disciplinary action up to termination, and possible filing of criminal charges. In addition, as a condition for use of the P-Card, an employee who is issued a P-Card agrees that the University may direct repayment or withhold from the employee’s paycheck an amount equal to any unauthorized P-Card charges made by the employee. P-Card Infractions/Violations will be reported to the Vice Chancellor for Business Affairs, Cardholder Manager, Dean of the respective school, Associate Vice Chancellor for Finance, Internal Audit, and the Chief Procurement Officer. Should a cardholder lose card privileges, they may only receive another card with approval of the Vice Chancellor for Business Affairs.

    Loss of P-Card privileges shall not provide the Cardholder authorization to use personal credit cards for university business purchases and seek reimbursement.

  3. Procedures

    1. Authorizing a P-Card.

      1. Eligible Cardholders. A P-Card may be made available to all University departments or units upon approval of Supervisor and/or Department Head and the P-Card Administrator. P-Cards shall only be issued to a permanent employee, who purchases goods or services on behalf of the University on a recurring basis. An exception to this requirement may be granted by the Chief Procurement Officer or his or her designee for special circumstances. Such exceptions must be documented in writing.

      2. All P-Cards shall show the University name, cardholder, the state seal or University logo, and indicate they are for official use only.

      3. P-Card Application, Training, and Agreement. All P-Card applicants must complete a P-Card application, a P-Card usage training session, and a P-Card holder agreement, outlining the terms and conditions of P-Card authorization and usage (“Agreement”) prior to issuance and usage of a P-Card.

    2. Appropriate use of the P-Card.

      1. Use of a P-Card is restricted to the authorized P-Card holder. Delegation of P-Card use is not allowed. An exception to this requirement may be granted by the Chief Procurement Officer or his or her designee for special circumstances. Such exceptions must be documented in writing.

      2. P-Card use is to enable departments to expedite applicable transactions quickly and efficiently by minimizing paperwork and processing time, acquiring appropriate goods and services in a timelier manner, and decreasing departmental difficulty with vendors.

      3. P-Card holders and approvers shall complete P-Card training at least every other year. Additional training may be required based on roles, infractions, and card activity.

  4. Personnel

    The Chancellor is responsible for ensuring the university has adequate personnel to administer and monitor the P-card program. Rebates to the University as a result of P-Card activity shall be prioritized to support these staffing costs.

    1. P-Card Program Administrator. The Vice Chancellor for Business Affairs or designee shall designate a P-Card program administrator for the University (“Administrator”). The Administrator is responsible for implementing the P-Card program, the requirements of this policy, and the requirements in each P-Card holder Agreement.

      1. Responsibilities. The P-Card Program Administrator shall, at a minimum

        1. Receive and review P-Card holder applications;

        2. Review transaction limit exceptions for disposition by the Chief Procurement Officer or his or her designee;

        3. Ensure transaction limit and merchant category code controls are activated;

        4. Review payments of monthly P-Card bills;

        5. Enforce P-Card holder terms and conditions; and

        6. Ensure P-Cards are deactivated for P-Card holders who no longer meet the requirements of this policy, their cardholder Agreement, or applicable state law.

        7. Transaction Limits. The Administrator, in consultation with the Vice Chancellor for Business Affairs, or, if so, designated by the Vice Chancellor for Business Affairs, the institution’s Chief Procurement Officer, shall establish transaction limits for P-Cards in accordance with applicable law. Transaction limits for each P-Card shall not exceed $5,000 per transaction and $25,000 per month unless an exception is approved, in writing, by the Chief Procurement Officer or his or her designee.

    2. Reconciliation Staff. The Vice Chancellor for Business Affairs or his or her designee shall ensure the University has Reconciliation Staff (“Reconcilers”) to review, reconcile, and approve P-Card expenditures within thirty days of payment.

      1. The Reconcilers shall, at a minimum, be responsible for ensuring they have received supporting documentation for each purchase, each purchase has been made pursuant to this policy and state law, and that any discrepancies are pursued immediately.

      2. Discrepancies reviewed by Reconcilers may include but are not limited to failure to receive the goods or services purchased, fraud or misuse, altered charges, duplicate charges, and incorrect amounts.

    3. Delegations. The University shall document in writing any delegations of authority. Any such delegations shall be included in the Audit report pursuant to Section VI of this policy.

    4. Personnel training. At a minimum, P-Card Program Personnel, including the Administrator and Staff, shall complete P-Card training every other year. Further training or certifications may be considered based on university needs.

  5. UNCW Guidelines

    This policy outlines the overall P-Card responsibilities as prescribed by the UNC System Regulation 1300.7.2(R). Additional UNCW guidelines are either included below or within separate UNCW procurement guidance.

    1. Cardholders must reconcile charges in the Works system in a timely manner that meets the monthly deadlines posted in Works and upload the receipts and any applicable documentation required per the UNCW P-Card Guidelines. All charges must be reconciled with receipts uploaded by the designated statement period date. Failure to approve transactions and attach receipts with the monthly reconciliation will result in a compliance violation.

    2. Cardholder Approvers must complete training prior to having the role and upon being designated an approver, sign off approval of P-Card transactions in the Works System in a timely manner that meets the monthly deadlines posted in Works. Cardholder approvers must ensure the appropriate account has been charged for the applicable purchase and that the purchase is compliant with the UNCW Guidelines and this policy. Failure to approve transactions and attach receipts with the monthly reconciliation will determine the card to be in failure of the cardholder approver to approve transactions and ensure transactions are attached and signoff on the receipts with the monthly reconciliation will result in a compliance violation.

  6. Audit Oversight

    The University Chief Audit Officer shall evaluate compliance with this policy, the UNC System Office Regulation 1300.7.2(R), and state law as it relates to the use of P-Cards. The Chief Audit Officer, or his or her designee, shall report the findings of their P-Card program compliance to the university’s Board of Trustees’ Audit, Risk and Compliance Committee on at least an annual basis. Inclusive of this review and report, the Chief Audit Officer, along with the Chief Procurement Officer or his or her designee, shall review the list of their institution’s active P-Card holders at least once a year.

    Additionally, the University P-Card program can be subject to review by the Department of Administration, Division of Purchase and Contract.

  7. Certification

    The Chancellor, Vice Chancellor for Business Affairs, and Chief Procurement Officer shall certify their University compliance with the UNC System Office Regulation 1300.7.2(R) by January 31, 2025, and again on or before January 31 annually thereafter. The UNC System Office President may, from time to time, in his or her discretion, impose further requirements on an institution’s P-Card program, particularly when an institution fails to uphold the standards outlined within the regulations.

  8. Relation to State Laws

    This policy as adopted by the Vice Chancellor for Business Affairs supplements, and does not supplant or modify, those statutory enactments, regulations, and policies which may govern the activities of public officials.

  9. North Carolina Sales Tax

    Cardholders shall make every effort to ensure the North Carolina Sales Tax is not applied to the purchase. Cardholders should use established vendors that have accepted the sales tax exemption form and remove sales tax from the purchase transaction. Cardholders shall have access to the UNCW Sale Tax Exemption Certificate to present to vendors for removal of North Carolina Sales Tax.

  10. Policy Updates

    At a minimum, UNCW P-Card policy shall be reviewed annually by the Vice Chancellor for Business Affairs, Associate Vice Chancellor for Finance, and Chief Procurement Officer, making revisions as needed. This policy will be updated to reflect changes in state laws or UNC System Office regulations to ensure continued compliance.