Purpose  Policy General Use Policy Documentation and Review Policy Timeliness of Posting to FRS Cardholder Policies and Responsibilities Department Head and Budget Authority Responsibility Card Coordinator Responsibility Purchasing Card Administrator Responsibility Purchasing Office Responsibility Accounting Office Responsibility Budget Office Responsibility Policy Enforcement Procedure Obtaining a Card PACS System Privileges Making a Purchase After the Purchase Viewing/Editing Charges on PACs Reporting a Lost or Stolen Card Terminating Cards

Appendix A  (Minimum Program Guidelines for Management of the Purchasing Card Within a Department) Appendix B  (Appropriate and Inappropriate Use of the Purchasing Card) Form:  Cardholder Set-Up Form Adobe PDF Form  (Fill in on-line and print for signature, OR print and fill in by hand or typewriter.)

Effective June 24, 2001, the bank support for the UNCW Purchasing Card Program is provided by MBNA.   Bank support was previously provided by First Union.  Policies and procedures remain the same.

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 sufficiently documented. Appropriate maintenance of purchasing/payment receipts and other documentation is essential to the success of the program.

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. Under no circumstance may the purchasing card be used for personal purchases, even if you intend to reimburse UNC Wilmington.

Supplemental references for the Purchasing Card Program are:

• Appendix A. Minimum Program Guidelines for Management of the Purchasing Card Within a Department
• Appendix B. Appropriate and Inappropriate Use of the Purchasing Card
• Purchasing Card Users Guide - available on the Purchasing Services Web site
• Purchasing Administrative Card System (PACs) Manual - available on the Purchasing Services Web site

Documentation and Review Policy

Statement and Receipts:
A system of original receipts behind monthly credit card statements is used to document the business purpose served by the purchase. The cardholder reviews each statement for accuracy. Budget authorities review that each purchase complies with state, federal or university guidelines. Both signatures (cardholder and budget authority) are required on the statement. When the budget authority is the cardholder, a card coordinator or other designee will sign for documentation. Signed statements are submitted to the Purchasing Office.

PACs System:
The Purchasing Office is responsible for providing timely means of review for departments. The Purchasing Administrative Card System (PACs) enables review of charges immediately (one business day) after charges are posted to the bank. This web-based system also provides the means for departments to make required account number changes, thus ensuring purchases are charged to the proper fund and object code.

Timeliness of Posting to FRS

Charges are posted to FRS as soon as possible after monthly invoice payment.

Cardholder Policies and Responsibilities

The purchasing card may be issued only to permanent employees, with the approval of the respective employee's supervisor and department head.

Upon completion of the required training, the cardholder is issued a purchasing card. The cardholder (whose name appears on the card) signs a Cardholder Agreement form, is accountable for all purchases made using the card number and is responsible for protecting the card to the same degree as he/she would protect their personal card.

The cardholder must immediately notify the bank, department head, and Purchasing Card Administrator if his/her 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.

Original receipts are required to support each transaction. It is the responsibility of the cardholder to ensure the goods are received and that receipts are obtained.

The cardholder is responsible for timely submittal of reconciled statements with receipts.

All refunds must be credited to the purchasing card from which the purchase was originally made.

 The cardholder is responsible to resolve disputes with suppliers and the bank. Assistance from the Purchasing Office is available to the cardholder, if needed.

Department Head and Budget Authority Responsibility for Program Management

The department head is responsible to manage the program within his/her respective department. Responsibilities extend to management of card use including appropriate use of the purchasing card, card limits, sufficient budgets, proper account coding using the PACs system, required documentation, and review and approval of purchases.

The department head/budget authority approves each card issued within his/her department and establishes the default account number (six-digit university account number and object code) and the monthly card limit. The monthly limit for an individual purchasing card may not exceed $10,000 without Budget Office approval.

The department head retrieves cards and notifies Purchasing when employees terminate employment, leave the department, or when cards are no longer needed.

The department head designates a card coordinator to assist in program management.

See also Appendix A. Minimum Program Guidelines for Management of the Purchasing Card Within a Department.

Card Coordinator Responsibility

Card coordinators are designated by the department head and can, particularly in large departments, play an important role in program monitoring. Card coordinators are required to sign a Card Coordinator Agreement form.

Responsibilities include:

• Review accounting information in the PACs system. Update accounting information as needed (which may include six-digit account, object code, sales tax for out-of-state transactions and freight), before charges become transactions in FRS.
• Act as a liaison to the Purchasing Card Administrator and immediately cancel cards when employees leave the department or university.
• Assist Purchasing, Accounting, plus any other reviewers and auditors in examining the Purchasing Card Program.
• Assist the department head in fulfilling other monitoring responsibilities (See Appendix A).

Purchasing Card Administrator Responsibility

The UNCW Purchasing Card Administrator, in Purchasing, is responsible to:

•  Cancel cards or suspend cards to enforce this policy.
• Process new and replacement cards.
• Provide support and assistance and act as bank liaison for the card coordinators, cardholders, and others; for example, when a statement is not received or when a transaction is denied.
• Receive signed statements for all cardholders with activity for the month. Audit for completeness and adequacy of receipts documentation before transferring to Accounting, which is the office of record.
• Download and verify the accuracy of the bank file.
• Maintain access privileges for PACs

Purchasing Office Responsibility

The Purchasing Office is responsible to train new program participants and to audit for compliance with purchasing policy and state contract terms and conditions.

Accounting Office Responsibility

The Accounting Office is responsible to:

• Monitor for compliance with sales tax laws and regulations and maintain documentation in accordance with audit standards.
• Audit for compliance with state policies and regulations, including appropriateness of funding source.

Note: All purchasing card transactions are subject to Accounting Office and internal auditor review.
• The Comptroller's Office is responsible to provide budget authorities 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.

Policy Enforcement

The delegation of authority to purchase goods using the card is a privilege that automatically ceases upon separation from the university or upon reassignment to another cost center (defined by FRS account). The Purchasing Office further reserves the right to revoke and cancel any credit card(s) for failure to comply with the policies and procedures of the program.
 

1.     Cause for Employee Suspension/Termination.

Fraudulent or willful misuse of the card, including willful use of the card to make personal purchases even if you intend to reimburse the university, may result in disciplinary action, up to and including termination of employment.

2.     Cause to Revoke Individual Card Privileges.

Willful misuse of the card for personal expenditures, or inappropriate expenditures as outlined in Appendix B, Appropriate and Inappropriate Use of the Purchasing Card, and the Purchasing Card Users Guide.

3.     Cause to Suspend Individual Card Privileges.

• Two or more contacts to request delinquent receipts or signed statements. (See Appendix A, item e.)
• Two or more instances of splitting transactions to circumvent transaction limits. (See Appendix B, item r.)
• Two or more instances of noncompliance with state contract terms. (Note: State contract terms legally bind the institution. State contract items may be viewed at http://www.uncw.edu/ purchasing.) (See Appendix A, item a.)
• Failure to ensure timely review of changes in PACs, and to enter Accounting changes deemed essential to maintain integrity of general funds. (See Appendix A, item f.)
• Consistent non-use of the card.

4.     Cause to Revoke All Department Cards.

Failure to manage the Purchasing Card Program within a department may result in revocation of all department cards. (See Appendix A.)

5.     Cause to Lower Card Limits.

Overcommitments will be examined by the Budget Office and may result in lowering of credit card limits to ensure adequate funding levels. (See Appendix A, item b.)

1.     Obtaining a Card

• Complete the Cardholder Set-up Form, available on the Administrative Forms Directory at http://www.uncw.edu/sp/AdmForms/FormsPDF/pur200.pdf, and return the signed form to Purchasing Card Administrator by mail or by FAX.

Note:    Department head will determine the following information required on the form:

• Default account number and any other account numbers permitted. (General fund accounts are preferred as the default account.)
• Who will be the Card Coordinator for the department (person able to make changes in the PACs system).
• Monthly transaction limit (not to exceed $10,000 without Budget Office approval) and single transaction limit.

 
• The Purchasing Card Administrator submits the cardholder setup to the bank.

• Upon Purchasing's receipt of the card (usually within two weeks), the Purchasing Card Administrator contacts the cardholder to schedule training.

• At the scheduled training session, the cardholder completes a Cardholder Agreement form and receives a purchasing card, a Purchasing Card Users Guide and a PACs Reference Manual. The cardholder should immediately sign the back of the card for card protection.

2.     PACs System Privileges

Privileges are based on the Cardholder Setup form. Cardholders and budget authorities have applicable view access, and card coordinators have update access. To request changes, send an e-mail to the Purchasing Card Administrator at purpacs@uncw.edu. For instructions on the use of the PACs system, refer to the PACs Reference Manual.

3.    Making a Purchase.

• Determine if the planned purchase is allowable under the guidelines in Appendix B, Appropriate and Inappropriate Use of the Purchasing Card.
• Use the credit card in person, over the phone, via mail, by FAX, or over the internet to obtain goods.
• Identify yourself to the vendor as a UNCW employee. Does the vendor accept Visa?
• Ask if the goods are available? If not, do not charge items on back order.
• Confirm the price including freight and tax does not exceed the card transaction limit. Confirm any educational discounts are applied.
• Give the vendor your purchasing card number and expiration date.
• Always obtain receipts! If in person, do not accept a credit card receipt without an itemized receipt.

IMPORTANT SHIPPING INFORMATION:

• Ask the vendor to include your name and institutional address and the code "VISA" on the shipping label. This information will facilitate Central Receiving in getting your package to you quicker.
• Ask the vendor to include the invoice/receipt in the package (packing slips without pricing will not suffice) or, if you prefer, ask the vendor to send the receipt by FAX.

4.     After the Purchase.

Procedures do not end with the purchase.  MBNA mails paper monthly statements to cardholders. Forward statements (signed by the cardholder and the budget authority) and original receipts, no later than five working days after receipt of statement to the UNCW Purchasing Card Administrator. Refer to the Purchasing Card Users Guide for instructions on the following:

• Reconciling the statement by the cardholder.

Note:  Direct any questions concerning the appropriateness of a particular expenditure being charged to general funds or contract and grant funds to the Comptroller or Sponsored Programs, respectively.
• Full-signature approval of the statement by the cardholder and budget authority.
• Dispute of statement items.
• Returns, damaged goods and credit.
• Disputes with the supplier.

 

5.     Viewing/Editing Charges on PACs

Instructions to login and use the PACs system are outlined in the PACs Reference Manual.

Transactions are posted to PACs daily. PACs users are able to view transactions accumulated during the statement period, as well as previous statements. Transactions are recorded in FRS monthly; there is no daily encumbrance.

Accounting corrections must be made, using PACs, before charges become transactions in FRS. There is a deadline for accounting changes. The Purchasing Card Administrator notifies card coordinators by e-mail when the window of time is open for making these updates.

 Note:   PACs has been designed such that charges to non-general fund accounts cannot be moved to a general fund account. Therefore, general fund accounts are typically set up as the default account.

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6.     Reporting a Lost or Stolen Card.

The cardholder must immediately notify the bank, department head, and Purchasing Card Administrator at extension 3849 if his/her purchasing card is lost or stolen to prevent unauthorized charges. MBNA phone number is: 1-800-804-0833.

For additional information, refer to the Purchasing Card Users Guide.

7.     Terminating Cards.

 The department head or card coordinator must immediately notify the Purchasing Card Administrator when cardholder privileges are to be changed or cards are no longer needed.

a.    Oversee appropriate use of the card. Review and approve purchasing card purchases.

b.    Ensure sufficient funds for purchases (i.e., change default account number, or change card limits when appropriate). As the budget authority, you will automatically have access to view transactions online as they accumulate during the month. If desired, designate a business manager or other employee, who may view the transactions online for your department's cards.

c.    Designate permissible account numbers; that is, the account numbers that may be selected when changing the accounting for an individual transaction in PACs

d.    Identify one or more individuals to be a card coordinator. Card coordinators can make online accounting changes in the PACs system and are a principal contact for the Purchasing or Accounting department. If you are a small department, you may identify yourself as a card coordinator.
Note:   The card coordinator can be a key person who assists in the other program management activities identified below.

e.    Ensure monthly statements are reconciled, and approved, and submitted to the Purchasing Office by the deadline.

f.    Ensure timely review of charges in PACs Each month, there should be a system of internal checks for account numbers, and the appropriate changes must be made by the deadline.

g.    Notify Purchasing when there are changes in permissible and/or default account numbers. (Use the form from the PACs forms menu, or the budget authority may send e-mail to purpacs@uncw.edu or call 910-962-3849.)

h.    Notify Purchasing when there are changes in roles within the department (e.g., new/replaced card coordinator or a change in the designee who views transactions). (Use the form from the PACs forms menu, or the budget authority may send e-mail to purpacs@uncw.edu or call 910-962-3849.)

i.    Know to whom cards are distributed within the department. Notify the Purchasing Card Administrator and retrieve cards when a cardholder exits the university, transfers to another department, or when card use is no longer needed.

Appropriate Use

a.     The Purchasing Card may be used to purchase from in-state or out-of-state suppliers.
b.     The Purchasing Card may be used in person, over the phone, via mail, by fax, or over the Internet
c.     The Purchasing Card may be used to purchase items on state contract if being purchased from the state-contract supplier(s).

Note:   Competition is to be sought on open-market items as you would for other small purchases.

Inappropriate Use

a.     Capital furniture and equipment
b.     Travel (transportation) and related expenses
c.     Entertainment
d.     Cash advances, cash instruments or cash refunds
e.     Consulting, contractual, or personal services
f.      Services of any nature (only goods can be purchased)
g.     Hazardous or radioactive materials
h.     Prescription drugs/controlled substances
i.      Firearms
j.      Stamps or postage
k.     Items available in Central Stores, except work groups based outside of Wilmington
        (e.g., based in Beaufort, NC or Florida)
l.      Items available on state contract from a non-state-contract supplier
        (except work groups based in Florida).
        If in doubt, contact Purchasing's web page, or call Purchasing.
m.    Subscriptions to online services
n.     Commitments for greater than one (1) year
o.     Items on back order
p.     Memberships
q.     Purchases from university departments (such as Bookstore, Postal Services)
r.     Transactions that are split to circumvent transaction limits

Note:   As bank program improvements and state policy/program improvements occur, this appendix will be modified. Please consult Appendix B periodically for updates.