Procurement Card Policy

Purpose

By virtue of G.S. 143-49, the North Carolina Secretary of Administration has the power and authority to establish and maintain a procurement card program for use by State agencies, community colleges, and nonexempted constituent institutions of The University of North Carolina. Pursuant to Section 01 NCAC 05B .1523 of the North Carolina Administrative Code (“Code”), procurement cards are utilized for official use only and shall be used in accordance with applicable state law and with the statewide contract established and maintained by the Division of Purchase and Contract (946A). The University of North Carolina System adopted Policy 1300.7.2[R] on 11/07/24 to document the requirements for its constituent institutions.  UNC Asheville’s Policy is consistent with Policy 1300.7.2[R].

UNC Asheville has elected to utilize the procurement cards in accordance with the Code. To effectively administer and manage the types of purchases allowed under the Code, UNC Asheville had elected to use a two-card system, one for travel purchases and one for all other eligible purchases (“P-Cards & T-Cards”). For purposes of this policy, these two card types will be referred to as Procurement Cards unless otherwise designated.

While Procurement Cards present an inherent enterprise risk, Procurement Cards used optimally, with proper compliance management, provide a ready-made and convenient tool for the professionals serving the business needs of UNC Asheville.

Scope

This policy is designed to protect both Procurement Card users and UNC Asheville. It is expected that all Procurement Card holders and Procurement Card program administrators, officers, and staff will uphold this policy and applicable state law to the highest degree.

_________________________

1In accordance with 01 NCAC 05B .1523., the UNC System will submit a copy of its regulation to the Division of Purchase and Contract within 90 days after the regulation’s implementation and thereafter whenever this regulation is updated. Use of procurement cards by any agency is contingent on satisfactory compliance review, as determined by the Division of Purchase and Contract.

 

Responsibility

The provision of Procurement Cards places a great deal of trust in UNC Asheville employees to utilize University resources solely in the best interests of the University. Thus, all purchases on a Procurement Card shall be strictly for official UNC Asheville business. As such, it is expected that UNC Asheville employees authorized to use a Procurement Card will do so in compliance with this policy and applicable state law.

Misuse of a Procurement 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 Procurement Card, potential disciplinary action up to termination, and possible filing of criminal charges. In addition, as a condition for use of the Procurement Card, an employee who is issued a Procurement Card agrees that UNC Asheville may direct repayment or withhold from the employee’s paycheck an amount equal to any unauthorized Procurement Card charges made by the employee.

Procedures for Obtaining and Using a Procurement Card

  1. Authorizing a Procurement Card
    1. Eligible Cardholders. A Procurement Card may be made available to all UNC Asheville employees. Procurement Cards shall only be issued to a permanent employee, who purchases goods or services or travels on behalf of UNC Asheville on a recurring basis. An exception to this requirement may be granted by the Assistant Controller – Financial Operations for special circumstances. Such exceptions will be documented in writing.
    2. All Procurement Cards shall show the name of UNC Asheville, cardholder name, UNC Asheville logo, UNC Asheville Tax Exempt number, and indicate they are for official use only.
    3. Procurement Card Application, Training, and Agreement. All Procurement Card applicants must complete a Procurement Card application, a Procurement Card holder agreement , and attend a Procurement Card usage training session, outlining the terms and conditions of Procurement Card authorization and usage (“Agreement”) prior to issuance and usage of a Procurement Card. Failure to uphold the terms and conditions of the agreement will result in revocation of the Procurement Card and may result in disciplinary action, potentially including termination of employment and criminal prosecution, as well as direct repayment or potential paycheck withholding equal to any unauthorized Procurement Card charges made by the employee.
  2. Appropriate use of the Procurement Card
    1. Use of a Procurement Card is restricted to the authorized Procurement Card holder. Delegation of Procurement Card use is not allowed. An exception to this requirement may be granted by the Assistant Controller – Financial Operations, for special circumstances. Such exceptions will be documented in writing. 
    2. Procurement Card use is to enable UNC Asheville 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. Procurement Card holders shall complete training regarding use of the Procurement Card at least every other year.

_________________________

 2Regardless of any exception granted under this policy, Procurement Cards shall only be issued to employees of the institution.

 

Procurement Card Program Personnel

The Chancellor is responsible for ensuring the UNC Asheville has adequate personnel to administer and monitor the Procurement Card program. Rebates to the institution as a result of Procurement Card activity shall be prioritized to support these staffing costs.

The director of the Procurement Card Program is known as the Procurement Card Administrator. The Procurement Card Administrator is the Business Services Director. The Chief Procurement Officer is the Assistant Controller – Financial Operations. The Business Services Director is responsible for the implementation of the Procurement Card program, the requirements of this policy, and the requirements in each Cardholder Agreement.

The Business Services Director shall:

  1. Receive and review Procurement Card holder applications
  2. Review transaction limit exceptions;
  3. Ensure transaction limit and merchant category code controls are activated;
  4. Review payments of monthly Procurement Card bills;
  5. Enforce Procurement Card holder terms and conditions; and. 
  6. Ensure Procurement Cards are deactivated for Procurement Card holders who no longer meet the requirements of this policy, their cardholder Agreement, or applicable state law. 
  7. The Administrator, in consultation with the Assistant Controller – Financial Operations, shall establish transaction limits for Procurement Cards in accordance with applicable law.   Transaction limits for each Procurement Cards shall not exceed $5,000 per transaction and $25,000 per month unless an exception is approved, in writing, by the Assistant Controller – Financial Operations.

The Reconciliation Staff shall:

  1. Review, reconcile, and approve P-Card expenditures within thirty days of payment.
  2. 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.
  3. Discrepancies reviewed by staff 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 Use of a P-Card is not intended to replace the University’s formal bid process where that process is appropriate or required by law or University policy.
4  All Procurement Cards requested on behalf of UNC Asheville shall be sent to the Program Administrator by a traceable delivery method.

 

Delegation of Authority

UNC Asheville shall document in writing any delegations of authority. Any such delegations shall be included in the Audit report pursuant to the Audit Oversight section of this policy.

Training

P-Card Program Personnel, including the Administrator and Reconciliation Staff, shall complete P-Card training every other year. 

Procedures Documents

UNC Asheville maintains both P-Card and T-Card detailed procedure documents consistent with the requirements of this regulation and applicable state law. The procedure documents can be found on the UNC Asheville Budget & Finance web page.  This policy shall be reviewed annually by the Assistant Controller – Financial Operations, Business Services Director, along with other Budget & Finance leadership, making revisions as needed.

Audit Oversight

UNC Asheville’s Director of Internal Audit shall evaluate compliance with this policy and state law as it relates to the use of Procurement Cards. The Director of Internal Audit shall report the findings of their Procurement Card program compliance to the institution’s Board of Trustees’ Audit Committee on at least an annual basis. Inclusive of this review and report, the Director of Internal Audit, along with the Assistant Controller – Financial Operations and Business Services Director, shall review the list of their institution’s active Procurement Card holders at least once a year.

Certification

UNC Asheville’s Chancellor, Executive Vice Chancellor Budget & Finance, and the Associate Vice Chancellor Finance/ControllerAssistant Controller – Financial Operations shall certify UNC Asheville’s compliance with this policy annually, on or before January 31st. The UNC-System Office President may, from time to time, in his or her discretion, impose further requirements on an UNC Asheville’s Procurement Card program, particularly if UNC Asheville fails to uphold the standards outlined within this policy.

Virtual Campus Tours

Launch Experience