The UNCW Purchasing Card Program allows rapid purchase of low-dollar goods by front-line employees. Liability rests with the university and not the cardholder. 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.
Vice Chancellor for Business Affairs
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
Office of State Purchasing
UNCW Purchasing Services
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. 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 is a privilege that automatically ceases upon separation from the University.
Policy
General Use Policy
The Purchasing Card Program does not change "what" you can buy under State and Federal guidelines; it offers another means to process a purchase. The purchasing card cannot be used for personal purchases, even if the intent is to reimburse the University. Supplemental references for the Purchasing Card Program are (all related links are all located on the Purchasing Website):
WORKS Purchasing Card Reconciliation System link and tutorials available on the Purchasing Services Website
Documentation and Review Policy
Transactions and Receipts:
Receipts are uploaded to Purchasing Card transactions in WORKS and are used to document the business purpose served by the purchase. The Cardholder reviews each transaction for accuracy. Budget authorities review that each purchase complies with State, Federal or University guidelines. Two sign-offs (Cardholder/Reconciler and Budget Authority) are required on each transaction.
Bank of America WORKS System:
The WORKS system enables review of charges immediately after charges are posted by the bank. This web-based system also provides the means for departments to make required fund/account changes, thus ensuring purchases are charged to the proper fund and/or account.
Timeliness of Posting to Banner
Charges are posted to Banner weekly and at cycle end.
Cardholder Policies and Responsibilities
The Purchasing Card may be issued only to permanent full-time employees, with the approval of the respective employee's supervisor and/or department head. The Budget Authority cannot be a Cardholder.
Upon completion of the required training, the Cardholder is issued a Purchasing Card. The Cardholder (whose name appears on the card) signs a Purchasing Cardholder Agreement form, is accountable for all purchases made using the Purchasing Card, and is responsible for protecting the card to the same degree as a personal credit card. The Cardholder must immediately notify the Bank, Department Head, and Purchasing Card Administrator(s) if their Purchasing Card is lost or stolen to prevent unauthorized charges.
Purchases must be for a legitimate business purpose and in accordance with all published guidelines for appropriate use of the Purchasing Card, including adherence to State contract terms. Cardholders are responsible for understanding what items are allowed to be purchased with the Purchasing Card and what items are not allowed. Cardholders may be personally financially responsible for items purchased that are on the “NC Debarred Vendor List.”
Receipts:
Uploaded receipts are required to support each transaction, unless the purchase is processed through an uShop catalog that is Purchasing Card payment enabled. It is the responsibility of the Cardholder to ensure the goods are received and that receipts are obtained. The Cardholder is responsible for reconciliation and sign-off of transactions, including Approver sign-off with itemized receipts uploaded by posted modification cut-off date. (See Purchasing Card Webpage and WORKS for published dates)
Refunds:
All refunds must be credited to the Cardholders Purchasing Card from which the purchase was made. The Cardholder is responsible for resolving disputes with vendors and the Bank. Assistance from the Purchasing Services is available to the Cardholder, if needed.
Vendor/Manufacturer Rebates:
A rebate is defined as a return of all or part of an amount given in payment for product. Cardholders may at times purchase items for which a rebate is available. In this case, it is the responsibility of the department or Cardholder to follow the appropriate procedures to receive the rebate.
No Cardholder or University staff will be allowed to profit personally from a rebate. Therefore, all rebates must be returned to the department to be deposited back into the fund used to make the original purchase.
Preferably, rebate checks should be made out to the University. If the check is made out to an individual, it must either be signed over to the University or a personal check in the amount of the rebate must be submitted to the University for deposit.
Rebates in the form of certificates or gift cards must be returned to the department to be used for future purchases.
Card Inactivity
In the event a Purchasing Card is inactive for twelve consecutive (12) months, the Purchasing Card will be reviewed for possible cancellation.
Sales Tax Exemption
The University is a tax-exempt entity and is not required to pay North Carolina Sales and Use tax on goods (See Certificate of Exemption on Tax Compliance website)
When making a purchase, the accountholder should make the vendor aware of the exemption by providing the tax exempt number printed on the Purchasing Card or providing a hard copy of the Certification of Exemption.
Purchasing Card accountholders are responsible to verify that the invoice provided by a vendor does not include a charge for North Carolina Sales and Use Tax. If taxes are charged a credit should be requested from the vendor to be applied back to the Purchasing Card
Department Head and Budget Authority Responsibility for Program Management
The Budget Authority is responsible for managing the purchasing card program within their respective department or unit. Responsibilities extend to management of card use including appropriate use of the Purchasing Card, card limits, sufficient budgets, proper account coding using the WORKS system, required documentation, and review and approval of purchases. The Budget Authority approves each card issued within his/her department and establishes the default fund and the monthly card limit. The Budget Authority may designates a Reconciler to assist in program management
Reconciler Responsibility
Reconcilers are designated by the Budget Authority and can, particularly in large departments, play an important role in program monitoring.
Responsibilities include:
Reviewing transaction accounting information in the WORKS system. Updating/correcting accounting information as needed (which may include fund and account codes) before charges are approved and transferred to Banner.
Maintaining Allocation Profile. Using the Account Maintenance Form, request the addition of new funds and the removal of expired or invalid funds from and the addition of new funds to the WORKS account.
Act as a liaison to the Purchasing Card Administrator. Immediately retrieves cards and notify Purchasing Card Team when employees leave the department or University or when the card is no longer needed.
Assisting Purchasing, Accounting, auditors and others examining the Purchasing Card Program.
Assisting the Budget Authority in monitoring appropriateness of purchases (See Purchasing Card Guideline Summary link on Purchasing Card Website).
Purchasing Card Administrator Responsibility
The UNCW Purchasing Card Administrator, in Purchasing, is responsible for:
Processing new and replacement cards.
Providing support and assistance and acting as bank liaison for the Cardholders, Reconcilers and Approvers.
Auditing before feeding transactions to Banner.
Cancellation or suspension of cards as required.
Training new program participants.
Maintaining access privileges for WORKS.
Accounting Office Responsibility
All Purchasing Card transactions are subject to Controller’s Office and Internal Audit review. The Associate Controller for (Operations) is responsible for providing budget authorities and other campus users with guidance in determining the appropriateness of a charge to a specific funding source.
Budget Office Responsibility
The Budget Office is responsible to provide budget authorities with guidance in establishing cardholder limits.
Compliance Infraction Guide
In order to ensure compliance with the policies and procedures of the program, actions will be taken by Purchasing Services when infractions are discovered during purchasing card activity reviews. Infractions are classified as Minor Infractions and Critical Infractions. Additional information is included in the Compliance Infraction Guide located on the Purchasing Card Webpage.