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

Title

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 Accountholders, Group Proxy Reconcilers, and Group Approvers and
  2. enforce penalties on Purchasing 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 published in the UNC-Chapel Hill Purchasing Card Program Handbook on September 12, 2018 have been updated and become effective along with this policy and will be enforced accordingly.

Scope of Applicability

Transactions made with the University Purchasing Card are subject to audit and, as such, must have 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 UNC-Chapel Hill P-Card Accountholders and applies to all purchase transactions.

Policy

Policy Statement

All employees assigned Works access, including Accountholders, Group Proxies / Reconcilers and Approvers must complete the following P-Card training at initial P-Card setup and at card renewal:

General descriptions of P-Card Accountholder (or Proxy Reconciler) infractions include:

  1. Failure to reconcile transactions prior to the 1st of the month following the end of the billing cycle. Account will be suspended until all outstanding transactions are reconciled.
  2. Failure to provide a valid business justification for purchase (i.e. reason for purchase)
  3. Failure to immediately report loss or theft of a card upon discovery
  4. Splitting transactions to circumvent transaction limits.
  5. Failure to supply valid receipt, invoice, or other support documentation.
  6. Using P-Card to purchase non-allowable items per the P-Card policy or misuse of any temporary exception to Purchasing Card restrictions.
  7. Failure to clean up the P-Card Clearing Account 559530 by the end of following month. It is the P-Card unit’s responsibility to ensure the correct Chartfield String (CFS) is assigned to the P-Card transactions and clear the P-Card clearing account every month.
  8. Other infractions warranting disciplinary actions, as deemed appropriate by P-Card Administrator or the Accountholder’s Business Manager or Department Head.

1st Offense

Courtesy email warning to Accountholder, Group Approver and Accountholder’s direct supervisor

2nd Offense

Email notification of infraction to Accountholder, Accountholder’s direct supervisor, unit Business Manager, and MOU Financial Lead or Dean

3rd or Greater Offense

Immediate thirty (30) to ninety (90)-day suspension of Accountholder’s P-Card.

NOTE: The P-Card team 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 P-Card. The Accountholder, Group Proxy Reconciler, Group Approver, Direct Supervisor, MOU Lead and Dean or Department Head will receive an email notification.
  2. Department Head or Dean 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 completed 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

Rebecca Spanos
Title: Travel and Payment Card Services Manager
Unit: Finance and Operations
Email: rspanos@email.unc.edu
Phone: 919-843-9027

Other Contacts

Hua Shen
Title: Purchasing Card Program Administrator
Unit: Finance and Operations
Email: hua_shen@unc.edu
Phone: 919-962-2255

Beverly R. Braxton
Title: Purchasing Card Program Assistant
Unit: Finance and Operations
Email: beverly_braxton@unc.edu
Phone: 919-962-2258

Details

Article ID: 131443
Created
Thu 4/8/21 9:09 PM
Modified
Wed 5/4/22 2:11 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
05/04/2022 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Travel and Payment Card Services Manager
Last Review
Date on which the most recent document review was completed.
05/04/2022 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
05/04/2022 12:00 AM
Next Review
Date on which the next document review is due.
05/04/2023 12:00 AM
Origination
Date on which the original version of this document was first made official.
06/28/2019 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget