P-Cards

In an effort to provide better service and ensure financial controls, North Carolina School of Science and Mathematics (NCSSM) implemented a Procurement Card (P-Card) program with Bank of America (BOA). The purchasing card program is designed to streamline the way each department transacts small order purchases for goods. For this program to be effective, each cardholder must be aware of how the card can be used.  

BENEFITS  

• The use of the purchasing card will allow Departments to obtain certain goods much faster and easier while sharply reducing the paperwork and processing time in the office as well as in Purchasing and Accounts Payable.  

• It will enable employees to be more efficient and to focus on the value-added aspects of their jobs.  • It will provide cost savings through consolidated payment (one monthly payment to credit card vendor, versus multiple supplier payments).  

• This program has increased user functionality, widespread vendor acceptance, pre-defined spending limits, electronic account coding, and online reporting. Online reporting offers a variety of reports that will allow management to view spending by cardholder, department, and account number. These functions allow  greater flexibility and management of expenditures. 

• Important benefits for suppliers include receiving payment in as few as three business days and elimination of invoicing and collection activities.  

• Be a convenience to the Departments and a cost savings for the School. Cards are free to the State and rebates are earned with some Vendors.

• Reduce the number of Purchase Orders and checks issued. Cards can be used with vendors that are not in E-Procurement and you do not have to request Substitute W-9 forms. 

• Payments to vendors are more efficient—they get paid within a 24-48 hour period. 

• The School is not liable for fraud on P-Cards.

• BUT - The cardholder is personally liable for willful misuse of  the card! 

RESPONSIBILITIES  

A vital part of the program is collection of documentation and prompt entry of information into the BOA Works program by the cardholder. This is required so a complete audit trail is always present. When a purchase is made using the purchasing card, the transaction is visible the in the BOA Works program within 24 hours. The cardholder must promptly sign off on transactions and upload/attach the receipt(s) for all purchases. The receipts are reconciled against the monthly cardholder report. The receipts are electronically uploaded and attached to the transaction in BOA Works and forwarded for departmental approval then sent to Purchasing. The documents will be kept on file/achieved for five (5) years. Each cardholder is responsible for the goods that are ordered and charged to their card. This means the user of the card can be held personally responsible for any charges that are made.  

Purchases charged against NCSSM funds that are not made in accordance with policy are the personal responsibility of the individual placing the order.  

TRAVEL  

Some cards may be approved for travel and may be used for airlines, hotels, vehicle rental, meals, and parking fees.  These charges must be pre-approved on a Travel Authorization Form. All travel forms can be found on Business Office Forms & Documents on the NCSSM website. Hotel charges must be within the State Rate unless a higher amount is preapproved by the Chancellor or his designee. See Paragraph III. E. for information about vehicle rental.  Vehicle rentals should be through Enterprise Rental and per State Term Contract.  

Travel Reimbursement Request 

Travel Authorization Form 

Travel Authorization Form - Instructions 

Local Travel Reimbursement 

CONTACTS

The Purchasing Card Coordinator and Administrator are responsible for providing support and assistance to cardholders.

• The Administrator is responsible for distributing/processing new card applications, processing changes in cardholder information, scheduling training and updating Policy and Procedures Manual. The Purchasing Card Administrator is the interface between NCSSM and Bank of America.

• The Purchasing Card Coordinator is the interface between the cardholder and NCSSM.

Purchasing Card Administrator:

Norma Evans 

norma.evans@ncssm.edu 

(919) 416-2791 

Purchasing Card Coordinator:

Judy Black 

judith.black@ncssm.edu

(919) 416-2792 

CARDHOLDER POLICY AND PROCEDURES  

CARD APPLICATIONS  

A new P-card application form (Links are below) and a copy of the purchasing manual must be reviewed and signed by  employee and supervisor for each card requested, and then must be submitted to the Purchasing Card Administrator.  The cardholder requesting the card, the cardholder’s approver, and the Area Vice Chancellor must sign the application  form. The Purchasing Manager will then approve the requested application and applicable spending limits. 

New State P-Card Request forms 

New Foundation P-Card Request forms 

All cardholders are originally setup with the State of North Carolina Standard P-Card Limits: $500 per transaction / $2500 limit per month. These limits can be adjusted with supervisor approval. Cardholders will be required to attend  mandatory training sessions covering the use of the card and all applicable restrictions. Cards will be distributed once  the training has been successfully completed, an Employee Cardholder Agreement has been signed and approved, and  an initialed and signed copy of this manual has been submitted to Purchasing.  

Department Approvers/Vice Chancellors may place restrictions on individual cards as follows: 

• More restrictive dollar amount per purchase than imposed for a standard cardholder. 

• Limit dollar amount per day. 

• More restrictive dollar amount per billing cycle than imposed for a standard cardholder.  

The purchasing card is assigned specifically to a cardholder and, as such, becomes the cardholder’s personal responsibility. Cardholders should ensure that the card is stored in a secure location at all times. To report a lost or  stolen card (or a card number you think is compromised), immediately contact BOA and advise them to cancel your  card and they will issue a replacement card to be sent to the Procurement Card Administrator or Procurement Card  Coordinator immediately. A card that is subsequently found after being reported lost shall be returned to the  Purchasing Card Administrator to be destroyed. Also, BOA may contact the cardholder after suspending your P-Card,  if they suspect fraudulent activity on your P-card. The cardholder is responsible for contacting BOA immediately to  resolve this suspected activity and either your p-card will be reinstated or a new P-Card will be issued to you.  Immediately upon notice that a cardholder is leaving NCSSM the card must be surrendered to NCSSM Procurement  Card Administrator. Always keep the card in a secure place, just as you would a personal credit card. Treat it as if it  were cash.  

NCSSM is exempt from North Carolina Sales and Use Tax for qualifying purchases. The tax-exempt number is 400051.  This tax-exempt number will be printed on the face of all procurement cards. The cardholder must make the vendor aware of NCSSM’s tax-exempt status and provide the number, if needed, when placing all orders. If the tax-exempt number is not given and the vendor charges sales tax, the cardholder will be responsible for corresponding with the vendor to resolve the tax issue. 

CARDHOLDERS, WHEN MAKING OVER THE COUNTER PURCHASES, MUST BE CAREFUL TO MAKE THE VENDOR/MERCHANT AWARE OF THIS BEFORE THE PURCHASE.  

The items below are not exempt and NCSSM must pay tax: 

• Prepared food and beverage taxes 

• State sales taxes levied on electricity or local, private, or toll telecommunication services • Rental Vehicles 

• Highway taxes 

• Hotel Charges 

State P-Card purchases ARE Tax Exempt. Foundation P-Card purchases are not. Tell vendors you are purchasing  from with State P-Cards in advance that we are not subject to NC Sales and Use tax, and make sure the tax is not  charged.  

FOUNDATION CHARGES  

For charges to be reimbursed to NCSSM from a Foundation Account, tax may be paid. Foundation will reimburse  NCSSM the full amount of the purchase(s). Check requests may be submitted during the month; however, Foundation requires that check request(s) for all transactions be submitted by the end of each credit card billing period.  

RESTRICTIVE USE OF THE CARD  

Cardholders are prohibited from using the State purchasing card for the following items: 

• Personal purchases or identification. 

• Cash advances. 

• Gift Certificates. 

• Food Purchases unless a Student is involved. (Student(s) must be identified on receipt submitted) • Avoiding the use of a State Term Contract Item. 

• Gasoline purchases – NCSSM and DOA Motor Fleet Management Vehicles must use Wright Express (Wex) Gas Card. 

• Radioactive materials. 

• Purchases from International vendors. 

• Alcohol. 

• Tobacco. 

• Capital Improvements. 

• Items for resale. 

You are NOT allowed to “SPLIT TRANSACTIONS” to process a $$ purchase that is over your card limits.  (i.e. Cost $5,000, you charge 2 - $2500 purchases to work around your card limits.  

Contact Purchasing if you need to increase your P-Card limits (with Supervisor approval required first) 

You MUST get a detailed receipt for every transaction. (Receipt should show all items purchased) (A summary  receipt with only Total amount is not acceptable) Collect all documentation and submit all transactions ON TIME! 

When you receive a notification email from BOA regarding a purchase/transaction you have made, PROMPTLY enter  information in Works. The reconciliation process is very important and you are expected to complete this process  on time.

• If you are late submitting your monthly report and receipts 3 times in one year, or receive 3 emails notifying you of transaction errors in your P-Card purchases, your P-Card will be REVOKED. 

• Purchases made with the P-Card are not encumbered. These expenses are posted monthly to the General  Ledger. Therefore, you MUST monitor your charges and not overspend your budget. 

To ensure compliance with NCSSM policies and State purchasing laws and regulations, the Purchasing Card Administrator and Coordinator review all transactions. Any questions or concerns are discussed with the Cardholders and their supervisor.  

The card remains the property of Bank of America and must be surrendered immediately upon notice of termination  of employment, or upon request for any reason by an authorized person such as the Purchasing Card Administrator,  the Cardholder’s Approver, or the Area Vice Chancellor. If the cardholder is found in violation, the Purchasing Card  Administrator has the authority to cancel the purchasing card without notice and notify the cardholder’s Area Vice  Chancellor accordingly. If you are leaving the School or going on extended leave the P- card must be surrendered to  Purchasing. If you are transferring to another department within NCSSM, please ask your new department supervisor  to notify Purchasing immediately.  

In the event a card is inactive for 180 days, the card will be cancelled unless the cardholder provides a justification for  retaining the card. 

HOW TO USE THE PURCHASING CARD  

The cardholder is the only person authorized to make purchases using his or her card. Giving the card or card  number to another person to make a purchase is not allowed, even if that person has the authority to purchase on  the account; however, the Cardholder may make the purchase for the individual. Remember the Cardholder is solely  responsible for protecting the card from misuse. 

PURCHASES  

• Follow proper internal procedures specific to your department to obtain authorization to make the purchase. Make sure you have supervisor approval before making a purchase with your P-Card. 

• Be certain that the total amount (including all shipping, handling, postage, freight, etc.) will not exceed your  card’s single purchase limit. And again DO NOT SPLIT transaction to circumvent your transaction limits.  Contact NCSSM Purchasing department via email (and copy your supervisor in the email for approval) if  you need a transaction or monthly limit increase PRIOR to making the purchase. 

• Determine whether the Purchasing Card is the most appropriate tool to use for this purchase (check the list  to make sure it’s not a restricted item and determine whether a State Term Contract is available). • Notify all vendors(when using your State P-Card) that NCSSM is sales tax exempt. The Tax Exemption  Certificate Number is shown on the front of each purchasing card. If a tax-exempt certificate is required,  contact the Purchasing Department. 

• Determine that the price quoted is the best you can obtain. Although competition is not required for  purchases under $5,000.00, purchasing card users must search for the best value products before expending  NCSSM funds. Best practice is to always request (3) quotes per Vendor for item you wish to purchase, if  the item you wish to purchase is NOT on STC. The user should look for alternative products or vendors, just  as one would do if spending one’s own money. 

• Obtain an itemized receipt at the time of purchase. Receipt must show all items purchased. DO NOT attach  just a summary receipt showing the total $$ of purchase to transaction in BOA Works program. • To Ship Items: For items not being picked up, the Cardholder must give the supplier his/her name followed  by PC (name/PC), department name, phone number, and complete delivery instructions as follows. All  delivery information must be visible on outside of package. Goods may not be shipped to the home address  of any employee.  

 Ship via UPS, Federal Express, or other method as suitable for the purchase.  

• Follow your departmental instructions regarding records of purchases and place the receipts in a secure  place. Upon receipt of the BOA Works e-mail notification regarding the charge/purchase, promptly sign onto  the BOA Works website and enter the purchase information in Works (code, enter comment, and sign off on  the transaction within 24 hours). NOTE: DO NOT use link provided in email of BOA notification! (Links have  proven to be unreliable) 

• *If supervisor requests: Prepare a Monthly Report in a timely manner with the receipts/documentation  attached electronically and, submit it for approval to your supervisor. Your supervisor is also responsible for approving your transactions electronically in BOA Works before the 24^th of each month also. (*Optional: the monthly report to your supervisor is based on the supervisor’s preference. It is acceptable if your supervisor requests only electronic transaction approvals)  

• The 24^th is the last day of the billing period; therefore, all transactions are required to be coded, receipts attached and submitted prior to the 24^th of each month! 

• If transactions are still open by the due date as listed above, a past due reminder message will be sent to the cardholder. 

• After another week, if transaction(s) are still open in BOA Works for the current month, a second  notice will be sent to the cardholder and copied to the cardholder’s approver or vice chancellor. Note: Records will be kept of cardholders who require multiple notices or have submitted incorrect codes or  information, or missing receipts. After 3 such notices, a cardholder will lose their purchasing card privileges.

• Upon receiving the goods ordered, always retain all boxes, containers, special packaging, packaging slips,  etc. until you know that you are going to keep the goods. The cardholder is responsible for inspecting the  goods upon arrival. 

• When placing an order for items to be charged to a Foundation Account, the cardholder must immediately  submit a check request to Foundation for them to reimburse NCSSM for the full amount of the purchase. 

PURCHASING RECORDS RETENTION  

BOA stores all transactions electronically for 7 years. The State of NC requires purchasing record retention for 5 years.  (To generate a report in BOA for a purchase over 2 years old, you must choose a 2-year time period for the report to run correctly. BOA’s Works systems cannot run reports for periods longer than 2 years at a time)  

OTHER FORMS TO COMPLETE  

When using the Purchasing Card there is no need to submit any other form. If an unnecessary form such as a purchase order, requisition, or check request is submitted for something bought using a Purchasing Card and a duplicate shipment is received, the cardholder is responsible for resolving the issues. In cases where the cardholder is  

responsible for the error, cardholder may be required to pay for excess charges caused by the duplicate order (including payment of the full order, if it cannot be returned, or payment of a restocking fee, if charged). 

RETURNED, DAMAGED GOODS, CREDITS  

If goods need to be returned, the cardholder is responsible and should work directly with the supplier. Here are some tips: 

• Always retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods.  

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

• Many suppliers require a “Return Authorization Number” before they will accept a return. Without a return number and original packaging, the package may be refused and/or no credit will be issued to your account. 

  • In some cases, there may be a restocking fee (usually a percentage of the purchase price). If the supplier is completely responsible for the error or problem the Department should not have to pay restocking or any other fee; however, if the supplier is not fully responsible the fee may have to be paid. Use the Purchasing Card to pay this fee as long as it does not exceed the limits.  

DISPUTED TRANSACTIONS/FRAUDULENT CHARGES  

Items that appear on the cardholders BOA Works transaction log that are considered fraudulent, or if the cardholder receives a phone call from the Fraud department at BOA, Cardholder should contact BOA immediately to resolve.  Then Cardholder should notify the NCSSM Purchasing Card Administrator, and cardholder should manually enter a note on the BOA Works on-line reconciliation screen. The cardholder should also submit a “Cardholder Dispute Form” to NCSSM’s Procurement Card Administrator (Attachment.) 

If there is a problem involving a dispute with a supplier (such as the Department claims the item doesn’t work and the supplier claims that it does) and satisfaction is unable to be obtained from the supplier, please notify the NCSSM Procurement Card Administrator in writing. Be sure to describe the problem and all of the efforts made thus far in attempting to resolve the dispute.  

PROCESSING TRANSACTIONS/GENERAL RECONCILIATION INSTRUCTIONS  

NCSSM has adopted Bank of America’s On-Line program called “Works” for electronic coding and on-line reporting. Transactions must be signed off promptly in Works. A monthly Cardholder Report can be generated by Works and can be obtained online through the “Works” Program. A Cardholder Statement will be mailed to the Cardholder. This is not a billing statement and does not require payment. NCSSM will pay from a master control invoice each month. All charges, once approved by the cardholder, department approver, and Purchasing Department, will be entered into the North Carolina Financial System (NCFS).  

To ensure timely processing, cardholders should enter information in Works daily (code, enter comment, attach receipt and sign off on the transaction within 24 hours from Works notification).

Note: 1000 & 2000 coding is ONLY used for payroll. Do not use these codes in BOA Works.  

Demonstration: BOA Works Program – Transaction processing 

• Video Tutorial (click here) 

• Login system 

• Steps of processing Transaction In BOA Works program 

P-cardholder MUST code each of their transactions using the dropdown arrows in each field! Cardholders should not ever use the “default codes” that populate the fields when they first open a transaction to process it! 

• Upload receipts 

• Submit transaction for approval 

AGAIN: Each cardholder is responsible for the approval and submission of his/her cardholder transactions timely.  BEFORE THE 24^TH OF EACH MONTH! Each cardholder is responsible for the collection of all receipts and submitting them electronically with transaction submission in BOA Works. The cardholder is responsible for verifying that all transactions have been signed off on through the “Works” on-line program, all receipts are attached to the transaction in BOA Works program, and the transaction is approved by the cardholder’s approver. Any cardholder failing to obtain a receipt must complete the “Missing Receipt Affidavit” form (Attachment), have their Area Vice Chancellor approve this, and upload/attach the form to the transaction. 

The Purchasing Department will review all transactions online for proper General Ledger coding. Purchasing will coordinate with the department and make any required adjustments internally IF transactions are submitted before the 24^th of each month. If the coding is incorrect on a transaction, and the date is after the 24^th of each month, the cardholder will have to notify NCSSM’s Business Office Budget Analysts to correct the amount in their department budget instead. Once reviewed and approved, the Purchasing Coordinator will sign-off/Sweep the transactions in BOA/NCFS. At this point, the file is considered a Locked Export File and cannot be changed through the BOA on-line system. 

All new P-cardholders should receive the following electronically from Purchasing: 

• Email with BOA Works login 

• Email from BOA Works welcoming you to program 

• Email from BOA Works with your Login/verification id (NCID/Full new P-card number) 

• Password to BOA Works: Your phone number (what you filled out on P-Card Request form) or Master phone number for account is: 919-416-2791 

Guidelines: 

• How to upload receipts in BOA Works 

• How to create an Expense Report in BOA Works 

• How to create a Monthly Report in BOA Works 

If you did not receive these items, please notify Purchasing asap. 

Please save the BOA Works program in your “Internet Favorites” or on your toolbar to access program. The hyperlink BOA sends with notification emails, does not work sometimes. Use your saved Internet Favorite to access the BOA Works program every time.  

Feel free to contact Purchasing when you receive your first transaction notification email from BOA Works. We will be happy to walk you through coding, attaching your receipt and submitting your first P-Card purchase!  

Remember to always contact Purchasing if you have any issues in BOA Works, or need any type of Purchasing assistance!

forms linked here for download