Procurement Card Program

Business Services Policy PC 09 07


1.0 Overview of the Procurement Card Program

1.1 Purpose of the Card 1.2 Benefits and costs/requirements

2.0 Where to Get Help

2.1 Card Provider

2.2 University Names and Addresses

3.0 Cardholder Policies and Procedures

3.1 Obtaining a Procurement Card            

3.2 Keeping the Procurement Card Secure            

3.3 Limitations of Transaction Amounts           

3.4 Changing Card Limits and Updating Cardholder Information            

3.5 Additional Procurement Guidelines            

3.6 Automatic Renewal of the Procurement Card            

3.7 Termination of Employment            

3.8 Transfer to Another Department            

3.9 Inactive Accounts

4.0 How to Use the Procurement Card

4.1 Applicable Rules and Regulations            

4.2 Cardholder Only Persons Authorized            

4.3 Purchases in Person            

4.4 Purchases by Phone, Fax, or Mail            

4.5 Other Forms to Complete            

4.6 Returns, Damaged Goods, and Credits

5.0 Disputed Transactions

5.1 Dispute of Statement Items            

5.2 Dispute with Vendor

6.0 Reconciliation Procedures

6.1 Importance            

6.2 Billing Cycle/Statements            

6.3 Documentation provided by Card Provider            

6.4 Information in UNC Pembroke budget accounts            

6.5 On-line Reconciliation via the Web

7.0 Audit Procedures

8.0 Procurement Card Reinstatement Policy

8.1 All delinquent Statements must be Turned In            

8.2 Memo from Department Head            

8.3 Privileges Cleared for Reinstatement            

8.4 Schedule for Reinstatement of Privileges            

8.5 Opportunity for Cardholder to Provide Incomplete Information            

8.6 Revocation of Privileges for Purchase Over $2,500 Limit            

8.7 Revocation of Privileges for Cardholder Abuse            

8.8 violation Reporting

9.0 Responsible Authority            


1.0 Overview of the Procurement Card Program

1.1 Purpose of the Procurement Card

The UNC Pembroke Procurement Card is essentially a standard Visa Card. The Procurement Card is issued to an employee, empowering this person to purchase goods on behalf of the University. This program has been established to allow rapid purchase of low dollar goods while simultaneously reducing paperwork and handling costs associated with the small purchase process. Under no circumstance may the Procurement Card be used for personal purchases.

1.2 Benefits and Costs/Requirements.

1.2.1 To the Cardholder Benefits

It is easier to make purchases. The Visa Card is accepted virtually anywhere, and it eliminates delays associated with asking a vendor to accept a small check request or purchase order number. Materials may be acquired faster. Complete transaction reporting is provided on a weekly basis. Vendor information becomes easier to research and locate. Each Procurement Card has a unique number that is tied to departmental budget accounts. Costs/Requirements

There is currently no fee associated with the program. The Cardholder is responsible for obtaining itemized receipts with pricing for a monthly reconciliation process. Each Cardholders account is also reviewed and approved by a higher authority (normally at the Department or School level).

1.2.2 To the University. Benefits

The number of procurements and check requests will decrease, thereby reducing the amount of paperwork and time associated with the small purchase process. There is an opportunity to reduce imprest/petty cash accounts. Transactions and payments will match each Card. Vendors will receive payment within two-to-three working days after the Vendor processes the purchase.

1.2.3 To the Merchant. Benefits

The Card Provider will pay the Vendor two to three working days after the Vendor processes the purchase. The Vendor will have a higher comfort level. The strength of the Visa name (and the protection the Vendor has when accepting the card) encourages Vendors to make sales that would not be made if a small purchase number or purchase order were presented. The Procurement Card process eliminates Vendor invoicing and the Vendor’s accounts receivable process. Costs/Requirements

Every transaction made with the Procurement Card carries a fee that the Vendor must pay to the credit card network. This is what finances the credit card industry, and the process is basically the same for all credit cards.

2.0 Where to Get Help

2.1 The Card Provider

We have an agreement with a credit card provider (Bank of America) for Visa card services. The Card Provider provides monthly statements on-line.

To report a lost or stolen card, call Card Provider as soon as possible at 1-888-449-2273 (help is available 24 hours a day) and notify the UNC Pembroke Procurement Card Administrator of this action.

For billing questions, or any general customer service questions, first call the UNCP Procurement Card Program Administrator, Tommy McKenzie at 6349.  If it is after UNC Pembroke normal business hours, call the Card Provider at 1-888-449-2273 (help is available 24 hours a day).

To dispute a transaction on your statement, please refer to Section 5 of this guide.

2.2 University Names and Addresses

The University provides support and assistance to Cardholders and Departments in the distribution and processing of new Card applications. The Procurement Card Program Administrator processes all changes in Cardholder information, schedules training, updates all documentation, and audits all aspects of the program. Follow-up audits by Internal Audit will be made. Please call the Program Administrator whenever you have any questions.

Procurement Card Program Administrator: Tommy McKenzie


Fax (910-521-6688)


3.0 Cardholder Policies and Procedures

3.1 Obtaining a Procurement Card

3.1.1 Procurement Cards will be issued to those authorized by the University to purchase goods. Training will be required for each Cardholder, Reconciler and Approver. The Procurement Card will be issued only to permanent personnel upon successful completion of training and testing. The names of both the University and the Cardholder appear on the card. Card Provider currently does not charge for the issuance of a Card; however, low usage Cards will be reviewed regularly.

3.1.2 Purchases from sponsored programs must strictly adhere to all contracts, grants and other agency guidelines applicable to each account.

3.1.3 Enrollment Forms can be found at the Purchasing's home page under Procurement Card.

3.2 Keeping the Procurement Card Secure

Always keep the Procurement Card in a secure place. Treat it like cash.

3.3 Limitations of Transaction Amounts

3.3.1 The following limits have been assigned to the Procurement Card:

Single purchase limit of $2,500 (Including tax and shipping)

Monthly purchase limit of $7,500.00

Daily number of transactions is unlimited at this time

Monthly number of transactions is unlimited at this time

3.3.2 These are general limitations. If these do not fit your purchasing patterns please contact the Procurement Card Program Administrator to discuss modification of the limits. A limit modification request form must be completely filled out, signed by the Departmental Approver and submitted to the Program Administrator for consideration.

3.3.3 Cardholders are reminded that splitting transactions in order to remain within the established purchase limit per transaction is prohibited and doing so may result in loss of Procurement Card privileges and/or disciplinary action up to and including termination of employment.

3.3.4 Changing Card Limits and Updating Cardholder Information

To request a change in the monetary limits on the Card, you must submit a request on the appropriate form in writing to the Procurement Card Program Administrator, and it must have Department or College level approval (Section 3.3). Changes of personal data (address, phone, budget code, etc.) may be e-mailed to the Procurement Card Program Administrator (

3.4 Additional Procurement Guidelines

3.4.1 It is the Cardholder’s responsibility to insure that purchases are made only from legitimate companies. If you have any questions about the legitimacy of a Vendor or individual, please contact the Procurement Administrator and DO NOT PROVIDE THE CARD NUMBER.

3.4.2 Follow procedures that are already in place with the small purchase process. The Cardholder is responsible for purchases that commit University resources, and is therefore responsible for determining the legitimacy of the purchase and the selection of the Vendor.

3.4.3 The Procurement Card is strictly for University business. Purchase must be for the use and benefit of the University. No personal purchases are allowed. Intentional misuse or abuse of the Procurement Card will result in the immediate revocation of privileges, and may be cause for disciplinary action up to and including termination of employment.

3.4.4 North Carolina Term Contracts

When a State or University contract is available the contracted supplier must be used. Contracts may be reviewed by visiting the NC Department of Administration Purchase and Contract website,,  by viewing the Purchasing's website,, or by calling the Purchasing Office (910-521-6349) to speak with the Purchasing Administrator

3.4.5 Using the Internet (WWW)

Many companies offer the option of making purchases via the web. If you choose to purchase on the web, you must make sure the vendor site is secured before entering the credit card number. Look for the padlock icon located on the vendor’s order form.       

3.5 Automatic Renewal of the Card

3.5.1 A Procurement Card will be issued to you as you enter the program. Once you have the Card, nothing will be required from you to continue from year to year. Cards have a 2-year expiration date and will be mailed directly to the Procurement Card Office approximately one month prior to the expiration date. Return the expired card to the Procurement Card Program Administrator upon expiration.

3.5.2 All Vendors that have the Procurement Card number on file must be contacted with the new expiration date for continued approval of charges. Federal Express is a prime example. If the expiration date expires and you have not contacted them, the bank will deny charges and they will put you on a cash-only basis.

3.5.3 Do not forget that each Procurement Card is tied to a default budget account. If that account number changes, you must contact the Procurement Card Program Administrator to update the information.

3.6 Termination of Employment

The Procurement Card remains the property UNC Pembroke and/or Card Provider. The Procurement Card must be surrendered immediately upon termination of employment or upon the request of either your supervisor or the Procurement Card Program Administrator. Vendors with the Procurement Card number on file must be contacted in order to discontinue future charges in your name by the department.

3.7 Transfer to Another Department

If the Cardholder, Reconciler or Approver transfers to another department, different University financial account information is involved. It is the Cardholder, Reconciler’s and Approver’s responsibility to provide the correct financial information for a new card. If you transfer to another Department, the current Card issued to you must be cancelled and returned to the Procurement Card Program Administrator. A new enrollment form will need to be submitted and approved by the appropriate Department head. Attending the training class will not be required if you have had a Procurement Card in your previous position.

4.0 How to Use the Procurement Card

4.1 University Rules and Regulations

Procurement with the Card does not change the rules and regulations of the University or your internal Departmental procedures. The Procurement Card is merely another means of payment for small purchases. You must obtain an itemized receipt with pricing for every purchase.

4.2 Authorized Cardholder

Please remember that the Cardholder is the only person authorized to make purchases with the Procurement Card. Giving the Card or Card number to another person or using someone else’s Card may result in revocation of Procurement Card privileges and/or disciplinary action up to and including termination of employment. To assist in keeping track of transactions and receipts, a transaction log is provided for your use. The Procurement Card Program Administrator requires this log to be submitted monthly.

4.3 Purchases in Person

4.3.1 You should follow the proper internal procedures set up specific to your Department for determining that a purchase is required and authorized.

4.3.2 Determine whether the Procurement Card is the most appropriate tool to use for the purchase (Example: not if purchasing x restricted item or if the total purchase is over the $2,500 limit, etc.).

4.3.3 Determine that the total amount of the purchase including shipping, handling, postage, freight, insurance, etc., does not exceed either the $2,500 limit or the daily/monthly limits listed above. If the limit is exceeded, the bank will automatically refuse the transaction and the vendor will reject the purchase.

4.3.4 Determine that the price quoted is the best you can obtain.

4.3.5 Determine at the time of purchase that the vendor has charged appropriate sales tax for out-of-state/country purchases, and record this amount (preferably on the transaction log). Sales tax paid is required as part of the reconciliation process, which is discussed later in this guide.

4.3.6 Obtain a receipt at the time of purchase or pickup. If ordered on the World Wide Web, print a copy of the final order/acknowledgment/receipt. If an item is shipped the packing slip must be kept. All receipts and other paperwork must be forwarded each month to the Card Administrator as part of the reconciliation process.

4.3.7 Remember to give the supplier your name, department, phone number, and complete delivery instructions. Central Receiving is used as the delivery point (due to weight, size or need for loading dock), please use the following address:

<Department Name> UNCP Central Receiving P- card One University Drive PO Box 1510 Pembroke, NC 28372-1510

4.4 Purchase by Phone, Fax, or Mail

4.4.1 Remember – the Cardholder is the only person authorized to place an order. You may, when necessary, have someone else pick up the items; however, this person is not authorized to sign the credit card sales slip.

4.4.2 PHONE – An entry on the transaction log should be made when placing a telephone order. Sales tax information should be recorded for all out-of-state/country purchases, since this is a critical part of the monthly reconciliation. When you call, state that you are calling from UNC Pembroke and that you will be making your purchase on a Visa Procurement (credit) Card. Give the supplier your name, phone number, delivery address, and complete delivery instructions. Request that an itemized receipt and/or packing slip that shows DOLLAR AMOUNTS be sent with the purchase. Retain this with your transaction log.

4.4.3 FAX – Follow all applicable steps from the instructions for phone orders. Retain a copy of the fax, and also the fax confirmation, for your records. Do not mail a copy of the order to the vendor, because this increases the chance that the order will be duplicated. If the vendor requires the original, be sure to clearly mark it “CONFIRMATION OF FAX ORDER, DO NOT DUPLICATE.”

4.4.4 MAIL – Follow all applicable steps from the instructions for phone orders. Retain a copy of the order for your records, and request a receipt for your records.

4.5 Other Forms to Complete

When using the Procurement Card there is usually no need to submit any additional paperwork to a Vendor. If, however, a duplicate shipment is mistakenly made, it is the responsibility of the Cardholder to resolve the issue with the Vendor. If unable to resolve in a timely manner, contact the Procurement Card Administrator at 521-6349 or e-mail

4.6 Returns, Damaged Goods, and Credits

4.6.1 Item purchased with the Procurement Card will periodically need to be returned for one reason or another. Credits should be listed on the transaction log. Credit receipts/memos should be received and turned in with the monthly statement. Credits listed on the monthly statement should be documented as to when the original charge was made if a credit invoice is not available.

4.6.2 Always retain boxes, containers, special packaging, packing slips, etc.; until you are certain that you are going to keep the items. Some items, such as software or fragile pieces, cannot be returned without the original packing materials.

4.6.3 Read all enclosed instructions carefully. Often a critical phone number and other instructions are included the packing slip and/or receipt.

4.6.4 In some cases there may be a restocking fee. The Procurement Card may be used to pay this fee as long as it does not exceed any of the Card limits.

4.6.5 If you need help in packaging goods for return please contact UNCP Central Stores/Receiving at 775-4161.

5.0 Disputed Transactions

5.1 Dispute of Statement Items

5.1.1 Purchases appearing on the monthly statement from the Bank maybe disputed up to thirty days from the date of the statement.

5.1.2 If the Cardholder does not recognize a charge or some other problem arises, the first step is to contact the Vendor for information regarding the charge. Contacting the Vendor saves time and usually solves most issues.

5.1.3 If you are not satisfied with the outcome of communications with the Vendor, complete the on-line dispute form and review it with the Procurement Card Administrator. The Procurement Card Administrator will then determine the next step.

5.1.4 A copy of the dispute form should be submitted with the monthly statement.

5.2 Dispute with Vendor

If you have a Vendor dispute and are unable to obtain satisfaction from the Vendor, contact the Card Administrator. You will be required to describe the problem and all of the efforts you have made in attempting to resolve it. The Card Administrator will advise you on the next steps to follow.

6.0 Reconciliation Procedures

6.1 Importance

Reconciliation of purchases by the Cardholder is the final step in the Procurement Card process. It is also one of the most important steps, because this is where the Cardholder provides itemization and pricing of all items purchased. Statements are available around the 25th of the month and will be distributed by the Departmental Reconciler.  A statement can be printed from the online Works Program at anytime. 

6.2 Billing Cycle/Statements

The billing cycle for the Procurement Card ends on the 20th of each month and the statements are due to the Procurement Card Program Administrator on or before 10 working days after the 20th of that same month. If any statement remains open after this date the Card will be immediately cancelled and the Cardholder, Reconciler, and Dean (or other division head) will be notified of the cancellation. Timely reconciliation and responsible purchasing are the only ways to keep a card.

6.3 Documentation provided by the Card Provider

The Card Provider provides an electronic feed, which transmits all transactions posted for the previous week from Monday-Friday on a daily basis.

6.4 Information in UNC Pembroke accounting system

Successful receipt of the feed is critical to the continuation of the Procurement Card Program. The electronic feed from the Card Provider is used for three purposes:

6.4.1 First, the financial data is used to reconcile the overall charges to the University. These charges are checked for accuracy on a daily basis. At the end of each billing cycle, the departmental budget accounts to which the Procurement Card transactions apply are debited for the billed amount. Remittance is made to the Card Provider on the basis of these charges.

6.4.2 Second, all of the data, including information about Cardholder, purchases, Vendors, etc. are in the reconciliation database. Searches by Vendor, dates, state, etc., may be made, and data is saved for five years. Access to the database follows security procedures already in use by budget accounts, and Reconcilers will be given access upon approval of request for security clearance to the Procurement Card Program.

6.4.3 Third, the reconciliation procedure, which the Reconcilers use to verify all Card purchases, is updated via World Wide Web. The Procurement Card Program allows Reconcilers to modify budget account numbers and object codes, enter out-of-state taxes, verify weekly purchases and balance monthly printouts. Reconcilers approve all purchases on-line. Failure to reconcile transactions on-line in a timely fashion will result in revocation of Procurement Card privileges.

6.5 On-line Reconciliation Via the Web

Specific instructions for navigating through the reconciliation process on the web are provided in a separate document available from the Procurement Card Home Page. The primary responsibility for insuring integrity of the Procurement Card Program rests with the Cardholder and Departmental Reconciler

7.0 Procurement Card Audit Procedures: In an effort to ensure compliance with Procurement Card policies and procedures, the following Procurement Card Audit practices will be followed:

100% of all new procurement cards will be audited for the first 90 days

Thereafter, 20% of all existing procurement cards will be randomly audited

Every procurement card will be audited at least once annually

Any procurement card misuse will result in a 90 day audit

8.0 Procurement Card Privileges Reinstatement Policy

8.1 Delinquent Statements

All delinquent statements must be turned in to the Procurement Card Program Administrator before consideration can be given to reinstatement of privileges

8.2 Memorandum

A memorandum from the Department Head and next level supervisor must be submitted to explain the reason for the discrepancy which caused the cancellation and steps that will be taken to prevent it from happening in the future.

8.3 Account Privileges

Procurement Card privileges may be reinstated no earlier than ten (10) working days following completion of the steps described in sections 8.1 and 8.2, above.

8.4 Schedule for reinstatement of privileges:

First Offense-Reinstatement will occur ten (10) working days after receipt of delinquent statement and memo with sufficient explanation.

Second Offense-Thirty (30) days after receipt of delinquent statement and memo with sufficient explanation.

Third offense – Privileges will not be reinstated.

8.5 Every effort will be made to give the cardholder an opportunity to provide the incomplete information (missing receipts, receipts not itemized, etc.) by using, email, fax, campus mail, and/or phone. However, if Cardholder consistently provides incomplete information, the following will occur:

8.5.1 Account will be put in a hold status. Cardholder (and possibly Reconciler and Approver) will be required to attend another Procurement Card class or have a review of rules and regulations with the Procurement Card Program Administrator. Upon satisfactory completion of this review, account will be taken off hold status.

8.5.2 Account will be closed. If, after retraining, the Cardholder continues to submit statements with incomplete information, account will be closed.

8.6 Penalty for purchase Over Limit

If Cardholder makes a purchase over the transaction limits as detailed in section 3.3 the account will be revoked for a period of two months. Written explanation from the Department Head and Cardholder and attendance by both at another Procurement Card class, is required before privileges will be reinstated.

8.7 Abuse of Procurement Card Privileges

If Cardholder abuses the Procurement Card Privileges (personal purchases, lets others use card, fraud, etc.), privileges will be suspended and a review will be conducted. If deemed necessary, privileges will be revoked and further personnel actions may be taken.

8.8 Procurement Card Violation reporting

Any serious violation involving suspected theft, fraud, or similar misuse of a procurement card, which has been reported to and/or investigated by the State Bureau of Investigation or other law enforcement agency, shall be reported by the local card program administrator to the Division of Purchase and Contract within not more than thirty (30) calendar days after referral to the law enforcement agency.

9.0 Responsible Authority

The authority to enforce this policy lies within the Purchasing Office. Any questions may be directed to 910-521-6349 or

Authority: G.S> 143-49(8)            INCAC 5B. 1522