1253 - Policy on Purchase Card (P-Card) Infractions

Title

The University of North Carolina at Chapel Hill Finance Policy 1253 - Policy on Purchase Card (P-Card) Infractions

Introduction

Purpose

The purpose of this document is to create a policy to:

  1. Mandate training for all Purchasing Card (P-Card) accountholders, and
  2. Enforce penalties on P-Card accountholders who violate their Accountholder Agreement by not complying with the terms and conditions regarding use of their P-Card account.

The original training requirements and list of P-Card infractions is published in the University of North Carolina at Chapel Hill Purchasing Card Program Handbook along with this policy and will be enforced accordingly.

Scope 

Transactions made with the University P-Card are subject to audit and, as such, must have an appropriate business justification and be accompanied by required supporting documentation. Accountholders in violation of compliance may have card privileges suspended or permanently revoked. This policy is applicable to all active P-Card accountholders and applies to all transactions.

Policy

Policy Statement

All accountholders must complete the following P-Card trainings:

General descriptions of P-Card accountholder infractions include:

  1. Failure to provide a valid & sufficient business justification for purchase (i.e. reason for purchase).
  2. Failure to supply valid, legible, itemized receipt, invoice, or other supporting documentation.
  3. Splitting transactions to circumvent transaction limits.
  4. Using the P-Card to purchase non-allowable items per the P-Card policy (e.g., personal purchases, etc.) or misuse of any temporary exceptions to P-Card restrictions.  Personal transactions made on the P-Card must be repaid back to the University.
  5. Failure to immediately report loss or theft of a card upon discovery.
  6. Other infractions warranting disciplinary actions, as deemed appropriate by the P-Card Administrator or the accountholder’s business manager or Department Head.

Infractions, including but not limited to those listed above, may result in the following consequences:

  • Misuse form to be submitted and attached to the transaction in Works.  Email notification will be sent to accountholder, Group Approver, and direct supervisor.
  • If an accountholder experiences 3 misuses within a rolling 12-month period, the account will be temporarily suspended until the accountholder meets with the P-Card Office to review policy. 
  • Notification of the suspension will be sent to the accountholder, direct supervisor, Campus Unit Finance Lead, and Dean or Department Head.
  • If a 4th misuse occurs within a rolling 12-month period, the account will remain suspended for 30 days. 

NOTE: The Purchasing Card Office reserves the right to reduce or escalate disciplinary actions at its sole discretion.

Time Period: Rolling 12 Months.

Reconciliation

P-Card accountholders are required to sign off on transactions by the monthly cycle deadline of the 20th of each month. All itemized receipts and any supporting documentation must be attached to each transaction along with a proper business justification. P-Card transactions must not be charged to the P-Card clearing account 559530; the account code must be updated as appropriate prior to the monthly deadline.

Non-reconciled transactions by the deadline will result in the following consequences:

  • Failure to reconcile transactions by the 1st of the month following the close of the billing cycle will result in the immediate suspension of the account. The account will be suspended until all outstanding transactions are reconciled. An email will be sent to the accountholder and approver.
  • If the accountholder (or Group Proxy Reconciler) has reconciled the transactions, but the Group Approver has not approved the transaction(s) by the 5th business day of the month, the account will be suspended until the transaction(s) has been fully approved. Email will be sent to accountholder and approver.
  • If an accountholder incurs 3 suspensions within a rolling 12-month period, they must meet with the P-Card office to review procedures before the account may be reinstated.
  • If a 4th suspension occurs for non-signed off transactions, the account will remain suspended for 30 days.  Email will be sent to accountholder, direct supervisor and Campus Unit Finance Lead.

NOTE: The Purchasing Card Office reserves the right to reduce or escalate disciplinary actions at its sole discretion.

Time Period: Rolling 12 Months.

Abuse and Fraud Rule (Personal purchase made intentionally)

  1. Immediate revocation of the P-Card. The accountholder, direct supervisor, Campus Unit Finance Lead, and Dean or Department Head will receive an email notification.
  2. Dean or Department Head is responsible for taking appropriate disciplinary action after consulting with Human Resources, up to and including termination of employment.

Exceptions

There are no exceptions to this policy.

Definitions

  • Accountholder: The person whose name is embossed on the P-Card and ultimately responsible for its proper use and complete reconciliation
  • Group Proxy Reconciler: May reconcile transactions on behalf of accountholders within their assigned Works group(s)
  • Group Approver: Signs off as final approver of transactions within their assigned group(s)
  • Reconciled: Transactions must be signed off by the accountholder/Group Proxy Reconciler AND Group Approver

Additional definitions and process requirements are detailed in the UNC-Chapel Hill Purchasing Card Handbook.

Related Requirements

University Policies, Standards, and Procedures

Contact Information

Policy Contact

Subject: P-Card Infractions

Unit: Purchasing Card Office

Email: pcard@unc.edu

Publication Details

Issuing Officer: Travel and Payment Card Services Manager

Effective Date: September 1, 2026

Next Review Date: September 1, 2027

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