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Viewing: 1252.2 - University of North Carolina at Chapel Hill Procedure on Using a Purchasing Card

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Current Status: Active PolicyStat ID: 5446879

1252.2 - University of North Carolina at Chapel Hill Procedure on Using a Purchasing Card

Responsible University Officer
Director of Purchasing Services

Responsible Unit
P-Card Officer

Related Policies

1252 - University of North Carolina at Chapel Hill Policy on Small Order Purchase via Purchasing Card

Procedure Statement

This procedure states the scope of what the Purchasing Card can be used for to comply with state auditing rules. It details allowable and non-allowable uses of the P-Card, and defines the oversight of card use.

Reason for Policy

Allowable and non-allowable charges

The following is a sample list of allowable and non-allowable charges. If you have questions about a purchase, please contact the P-Card Officer at 919-962-2255.

Allowable

  • Advertising (no contract/agreement involved)
  • Caterers or restaurants that are providing food/beverage for University meetings & events (if no contract required)
  • Conference Calls
  • Copying/Framing/Photo Developing (that produces a supply item)
  • Credential Verification/Background Checks
  • Conference Registrations
  • Medical License/DEA License/Passport Renewal
  • Professional Business Related Membership Dues
  • Newspaper/Magazine/Online Subscriptions
  • Postage/Shipping/Courier
  • Repairs from a vendor (a corporation or partnership)
  • Reprints
  • Rentals (If a Rental Involves a Contract with Terms and Conditions requires review by Procurement Services)
  • Services from a vendor (a corporation or partnership)
  • State Contract Purchases (must use contract vendor)
  • Supplies (office/shop/IT/lab)
  • Travel &Entertainment for Athletic Department and Student Travel on Request
  • Utility (power/water/gas/cable)
  • Zipcar
  • Uber and Lyft rides to and from the Clinics for Clinical Trial Studies using Departments Defined Dashboard

Non-Allowable

  • Any purchase that requires agreements or contracts.
  • Items otherwise available from ePro Vendor Catalog.
  • Note: All agreements and contracts must be submitted for review and approval to Purchasing Services on a requisition.
  • Alcohol/Tobacco
  • Anything costing more than $5,000
  • Avoiding State Contracts
  • Cash Advance
  • Gift Certificates/Gift Cards
  • Personal Items
  • Radioactive Materials
  • Research Gases
  • In-Restaurant Dining
  • Services from a Sole Proprietor (a Doing-Business-As Vendor - these are independent contractors)
  • "Splitting" of transactions to avoid purchasing thresholds
  • Travel (Exception allowed for Athletic and Student Travel on Request)

Blocked Vendors

The University has also blocked several Merchant Category Codes (MCC). MCC numbers are used to identify the dozens of different types of vendors served by Visa. The University has blocked many of these numbers (primarily travel, restaurants and entertainment), and your card will not be accepted if presented to one of these blocked vendors. Decisions by the University to block vendor categories are based on whether or not P-Card purchases from a category are deemed appropriate by the Purchasing department. Questions in this area should be directed to the P-Card Officer.

In addition to the restrictions on use, additional restrictions may be applicable to an individual user as determined by the individual's department. The University's P-Card Officer will explain all of the restrictions when the P-Card is issued.

When a State Term Contract is available the contracted supplier must be used. State contract information is available at the Department of Administration website, or by calling the appropriate buyer in Purchasing Services.

Exclusions

Oversight of P-Card Use

The University's P-Card Officer is charged with oversight of this delegation of purchasing authority to individuals. To ensure compliance with University policies and State purchasing laws and regulations, an after-purchase compliance review will be conducted on individual purchases. Using a random sample technique, the University's P-Card Officer will screen the list of purchases and select certain purchases to review. The Officer will request that the individual produce documentation to support all purchases, including an invoice. Violations of University policies and State purchasing laws and regulations will result in notification of the department head and the Assistant Vice Chancellor for Finance and Accounting and may result in disciplinary action against the individual or removal of the P-Card privilege, or both.

If the P-Card office or an approver finds misuse of a P-Card, they will contact the employee who allegedly misused the card by sending a copy of the P-Card Misuse Form / Letter of Notification. This serves as an official warning of misuse and could be followed by further corrective action if more abuses occur.

Frequently Asked Questions

Q: Can I use my P-Card to pay my cell phone that exceeds my stipend plan?
A: No.

Q: What should I do if I fail to notify a vendor about the University's tax-exempt status and am charged sales tax?
A: Contact the vendor, provide a copy of the University's tax-exempt number and obtain a credit for the charged tax.

Q: How long should I keep original receipts and P-Card statements?
A: Accountholders will receive electronic statements for their records. There is no audit requirement for the maintenance of P-Card statements. Receipts must be uploaded to transactions in Works, which retains all receipts for 7 years.

Related Data

1252.1rd - P-Card Program Handbook

1252.2rd - Purchasing Card Misuse Abuse Notification

1252.2.1f - Student Travel Pre-Approval Request Form

Department of Administration State Term Contract Information

History

Revised:
July 9, 2018:  Updated relevant forms to reflect new P-Card Policy.
Per our email, we will be reviewing these changes during the June Policy Review Committee Section, so they will go live after approval no later than July 20. Thank you.

January 3, 2018 - Added catering and removed printing to list of what a P-card can be used for; added "splitting" to non-allowable items.
May 22, 2017 - Added services and repairs from a vendor (corporation or partnership) under allowable items; removed vehicle repairs under allowable items, and clarified that the non-allowable services are from sole proprietors (those "doing business as" vendors or independent contractors).

November 11, 2015 - Updated allowable/non-allowable list.

October 1, 2014 - Updated naming of requisitions.

January 30, 2013

October 20, 2011

All revision dates: 10/10/2018, 8/3/2018, 3/5/2018, 2/28/2018, 5/22/2017, 11/11/2015, 10/1/2014, 1/30/2013, 10/20/2011
Attachments:

Approval Signatures

Step Description Approver Date
Publication Matthew Teal: University Program Specialist 10/10/2018
University Policy Review Committee Jennifer Deneal: Administrative Director 10/10/2018
Finance Policy and Communication Subcommittee Janet Kelly-Scholle: Associate Director 10/8/2018
Jessica Shu Jyun Hwang-Strickland: Director of Procurement Svcs Operations 10/8/2018
Older Version Approval Signatures
Step Description Approver Date
Publication Matthew Teal: University Program Specialist 10/10/2018
University Policy Review Committee Jennifer Deneal: Administrative Director 10/10/2018
Finance Policy and Communication Subcommittee Janet Kelly-Scholle: Associate Director 10/8/2018
Jessica Shu Jyun Hwang-Strickland: Director of Procurement Svcs Operations 10/8/2018
Older Version Approval Signatures
Publication Matthew Teal: University Program Specialist 8/3/2018
University Policy Review Committee Jennifer DeNeal: Administrative Director 8/3/2018
Finance Policy and Communication Subcommittee Janet Kelly-Scholle: Associate Director 7/23/2018
Jessica Shu Jyun Hwang-Strickland: Director of Procurement Svcs Operations 7/17/2018
Publication by Office of Ethics and Policy Matthew Teal: University Program Specialist 3/5/2018
Finance Communications Office Christine Shia: Public Comm Specialist 3/5/2018
Bernard Law: Dir. Purchasing Services [AD] 2/28/2018