4 P-Card Program Overview The purpose of the University’s P-card program is to simplify purchasing processes.The program is designed to maintain accountability while reducing the cycle time and administrative burden of procurement procedures such as purchase requisitions and orders, direct pay requests, and reimbursement requests.Purchase Limits:Single purchase limit is $2,500Daily limit is $5,000Monthly limit is $25,000
5 P-Card Program Overview Benefits to the CampusSimplifies process for making purchasesExamples: Conference registration fees; subscriptions to professional journalsReduces the need to use personal funds and submit reimbursement requestsReduces the need for travel advances, check prepayments, and AAA voucher codesProvides convenience, security, and flexibility to make small dollar purchasesExpedites access to goods since payment is immediateAllows for flexibility and can be modified and customized to meet each department’s needs
6 P-Card Roles and Responsibilities AccountholderUse the P-card according to internal policies and proceduresMaintain card in secure location at all timesEnsure spending limits and allotted budget are not exceededEnsure NC sales and use tax is not charged on purchasesEnsure a Travel Authorization (TA) is fully approved before prepaying travel expensesObtain a receipt (vendor name, date of purchase, item description and total amount of purchase) for each purchase and submit to ReconcilerProvide additional information regarding expenses to Reconciler as necessary
7 P-Card Roles and Responsibilities ReconcilerReceive receipts from AccountholderCompare receipts with transactions in Bank of America Works™Review and sign-off on transactions in Works:Provide supporting comments (e.g. description, business purpose)Ensure correct fund, organization and account code are usedReconcile discrepancies with Accountholder when necessaryAssemble reconciliation packet (billing statement and receipts) for Approver and sign-off on reconciliation packet
8 P-Card Roles and Responsibilities ApproverEnsure p-card usage and activity is in compliance with internal policies and proceduresReview reconciliation packet with transactions in Works:Ensure comments are documentedEnsure correct fund, organization and account code are usedFlag transactions as necessarySign-off on transactions in Works and the reconciliation packetEnsure reconciliation packet is submitted to Travel & Complex Payments by the required dated
9 P-Card Roles and Responsibilities Department HeadProvides fiscal oversight and management of business operations within his/her departmentSelects department employees for participation in the UNC Charlotte Purchasing Card Program based upon business need and ability to fulfill program requirementsMonitors the use of the p-card in his/her department, taking appropriate action with departmental staff when requiredEnsures FLSA-subject staff members are performing p-card activities during regular work hours or with the advanced approval of their supervisor if overtime is required to complete task
10 P-Card Roles and Responsibilities Purchasing Card AdministratorProvides program management and oversightDevelops and delivers effective training for usersEnsures program compliance and quality assurance
12 P-Card – Discussion Questions 1. Who currently has a P-Card?What efficiencies/advantages has your department experienced from using the P-Card?What challenges have you encountered in using the P-Card in your department?2. If your department does not yet have a P-Card, what barriers do you see that prevent you from obtaining a card?
13 P-Card – Key PointsSubstantial efficiency benefits available to departments and the University in using P-cardEspecially beneficial for travel-related transactionsDefined roles and responsibilities help ensure adequate monitoring and oversight of card activityCardholder, Approver, Reconciler, AdministratorRefer to Financial Services’ resources and guidance to implement and/or expand P-card usage within your departmentPurchasing Card ManualP-Card Training“Resources” tab of Financial Services website
15 e-Procurement Overview UNC Charlotte’s e-Procurement program enables the University to utilize product catalogs that are custom built by each supplier and backed by a competitively bid contract.By using the 49er Mart platform, the purchase-to-pay business process is automated and eliminates the need for much of the paper processing that was central to the previous system.The State of North Carolina sets the guidelines that the University must follow.
16 e-Procurement Overview Purchasing Office’s Role and ResponsibilitiesEnsure adherence to North Carolina laws and rules governing purchasesExtension of the State’s Purchase & Contract division with delegated purchasing authorityInitiate term contracts to make ordering easier at the departmental levelReview of vendor contractsSingle point of contact with vendors
17 e-Procurement – 49er Mart 49er Mart is a web-based, e-procurement system that streamlines the requisition and purchase order process:One-stop shopping for catalog and non-catalog itemsReduce time and effort in the purchasing processCost savings through contract supplier aggregationImproved business practices via approval workflowsIncreased efficiency with the use of central invoicing and electronic receivingProduce, in conjunction with Banner, accurate and more timely financial information
18 e-Procurement – 49er Mart Goods and services may be procured multiple ways using 49er Mart:Hosted CatalogsPunch-Out CatalogsNon-Catalog Form to order from all other vendorsSpecialized forms:General ServicesChange RequestAfter-the-FactNon-CompliantMulti-Invoice Service OrdersComplete instructions available through the 49er Mart online Moodle course
19 49er Mart – Roles and Responsibilities Requester: A 49er Mart role which authorizes a user to shop and apply accounting codes.Requesters can place an order, which submits the requisition into the approval workflow, or assign the cart to another requester to enter funding information.Approver: A 49er Mart role which authorizes the user to approve requisition workflow steps based on accounting codes and dollar value.Approvers may either approve the requisition, return the requisition to the requestor with a note detailing why, reject line items on the requisition or reject the entire requisition.Approvers will be notified via when a requisition has been submitted for approval. The contains a link directly into the appropriate approval area.
20 49er Mart – Closing the Transaction Receiving should be completed as ordered items are actually received. Do not wait until the full order is received; enter multiple partial receipts as needed.When the invoice is processed against a purchase order, the Requestor will receive an that receiving is needed.49er Mart will post the receiving and return a receipt number and the PO #. The PO# can be clicked on to review any details regarding the PO, including the updated Receipt Status.Payment will not be made to the vendor until receiving is completed by the department
22 e-Procurement – Spend Analysis Purchasing periodically monitors departmental spendCompliance issues are addressedOpportunities for cost savings are investigatedContact your Purchasing Agent with questions
23 Bidding and Contract Requirements All procurement requests are subject to the State’s established thresholds for bidding and contract regulations (see University Policy )Cumulative purchases throughout the yearRequests $5,000 and under may generally be ordered from the supplier of your choiceUnder $5,000Informal bid requiredBetween $5, $25,000Formal bid process requiredPosted to the State’s Interactive Purchasing System websiteAnything over $500,000 exceeds the University’s delegationOver $25,000Competition waiver may be approved through use of a Sole-Source Justification Memo (SSJ)Requests may NOT be split into multiple smaller requests to avoid the bidding requirements
24 Contractual ServicesPurchasing Agents are the source for accurate answers on how to proceed with a contractContract types available:State of North CarolinaConsortiums (E&I; US Communities)UNCC bid/RFP contractsConvenience contracts for campus:Shredding Service; Moving ServicesNegotiation of individual departmental contractsReviewing and negotiating of Terms & ConditionsTemplates available from Purchasing:Independent Contractor AgreementPersonal Services AgreementOther useful contract forms:Independent Contractor ChecklistContract ChecklistMany contracts available in the “Contracts” section of 49er MartConsultants require special approval in addition to the contract
25 e-Procurement – Discussion Questions How has the user of 49er Mart / e-Procurement improved efficiencies in your department?What challenges have you encountered in using 49er Mart / e-Procurement processes in your department?
26 e-Procurement and Purchasing – Key Points Be familiar with State/University procurement and bidding thresholds and requirements49er Mart should be used for ordering both catalog and non-catalog itemsReinforce with your department that vendor invoices should be sent directly to Accounts PayableRefer to Financial Services’ resources and guidance to more effectively use 49er Mart in your department49er Mart training course in Moodle“Resources” tab of Financial Services websiteContact your Purchasing Agent
28 Complex Payments – Overview What is a “complex payment”?ScholarshipStipendHonorariumPrizes and awardsPayments to independent contractorsDual-employment paymentsFood purchasesPersonal reimbursements (non-travel)Any payment to an individual classified as a foreign national / non-resident alien for tax purposes
29 Complex Payments – Concepts and Tax Implications Worker classification:Should the worker be classified as an employee or independent contractor?Determination must take place prior to performance of any servicesNC 4% withholding:NC Statute requires withholding at a rate of 4% on payments of more than $1,500 during a calendar year for certain personal services performed in NC by nonresidents and for services performed in NC by ITIN holdersReportable payments:Form 1099-MISC must be issued for each non-employee person paid at least $600 in the calendar year for “reportable payments”Fringe benefits:A form of pay in addition to stated pay for the performance of servicesGenerally taxable unless specifically excluded by IRS
30 Complex Payments – Concepts and Tax Implications Foreign nationals / Non-resident Aliens:Must withhold federal income tax from all income paymentsWithhold at 30% unless eligible for exceptions (tax treaty, IRS code)Must complete a Foreign National Information Form before requesting paymentRoyaltiesPayment for the use of intellectual propertyNeed to determine the residency status of the payeeGross-upIncrease of gross payment due to recipient to cover any taxes withheld so the individual receives the desired net amountMust use non-allocated fundsUnrelated Business Income Tax (UBIT)
31 Complex Payments – DPR, 49er Mart, or Other Method? Complex payments may be requested through different methods, depending on the nature of the payment:Direct Pay Request49er MartHR Form (PD-7, PD-17, ePAF, CP-30)Certain information forms may be required to be submitted to the Tax Office or Travel/Complex Payments office prior to requesting payment to ensure recipient is eligible for paymentExamples: Independent Contractor checklist; Foreign National Information Form, Vendor Information FormRefer to the “Independent Contractors, How to Pay” guidance contained on the Resources tab of the Financial Services website
32 Complex Payments – Roles and Responsibilities RequestorDepartment-levelIdentify payeeCompletes payee information/eligibility forms, if requiredCompletes initial request for paymentResponsible for ensuring appropriate use of fundsApproverReviews and approves request for paymentAccountable for appropriate use of fundsAdditional ApprovalMay be required depending on nature of payment and/or funding sourceExamples: Tax Office, Grants & Contracts AdminPaymentOnce approved, payment completed by appropriate department in Financial Services
33 Non-Cash Transactions Gift cards may be used as part of a petty cash fund (e.g.– gift cards may be used to make human subject payments)Should be treated with same care and supervision as petty cashRefer to updated University Policy on Awards/Gifts once available (under development as of January 2014)Departments must maintain records documenting the use of the gift certificates and cards that include the recipients’ information and the gift certificate or card number or other similar identification numberDepartments are responsible for tracking non-cash payments to individuals within each calendar year. If the cumulative amount of non-cash transactions to an individual equals or exceeds $600 in a single calendar year, the transactions must be reported to the Tax Office.
34 Complex Payments – Discussion Questions Which complex payment-related topics are you unsure of or would like to discuss more?What are some of the most common types of complex payments requested by your department?
36 Travel – OverviewReimbursable travel must have official University “business purpose”:Attending approved job related trainingWorking on behalf of or officially representing the University (including research)Providing a University service upon the University’s requestEnables business expense payments without tax consequence to employees if plan is followed:Business purpose must be establishedExpense substantiation – receiptsSpecified period of time
37 Travel – OverviewTravel plans should be approved in advance of the trip:Helps ensure that departments are aware of and have the necessary funds allocated to cover anticipated travel expensesTravel Authorization Form facilitates this requirementTimely Submission of reimbursement requests:Travel reimbursement requests should be submitted to the Travel Office within thirty (30) days of the return dateAny travel reimbursement requests submitted ninety (90) days or later after the return date will be taxable to the traveler
38 Travel – Travel Manual University Travel Manual: Guidance for business officers and other faculty/staff regarding payment for travel expenses incurred for UNC Charlotte business purposesDeveloped in consideration of Internal Revenue Service (IRS), Office of State Budget and Management (OSBM), and other applicable regulations and guidanceUpdated periodically; latest version located on Financial Services website
40 Travel – Roles and Responsibilities Travelers:Travelers shall be fully aware of all UNC Charlotte travel policies and procedures prior to traveling and expending funds on behalf of the University, and should conduct University business in compliance with these policies and procedures.Travelers conducting business on behalf of the University shall exercise good judgment and travel in a cost-efficient manner.Supervisors:Supervisors review and approve travelers’ Travel Authorization and Travel Reimbursement Forms, along with any other travel-related forms requiring supervisor approval.The supervisor is responsible for ensuring that the employee’s reimbursable travel expenses are for official University business purposes, are justifiable and reasonable, and are adequately documented in accordance with guidelines in this Manual.Business Managers:Provide business process leadership within departments and facilitate understanding and adoption of University travel policies and practices.
41 Travel – Roles and Responsibilities Department Heads:Department Heads are responsible for ensuring that its department’s financial resources are managed in an efficient and cost-effective manner, including that travel expenses are consistent with the educational, research and professional needs of the University, as well as the mission and goals of UNC Charlotte.Travel & Complex Payments department (“Travel Office”) and Purchasing Card Office:Units within the Controller’s Office of Financial Services that facilitate travel and business expense payments for UNC Charlotte’s travelers and employees.Additional Approvals:Depending on fund source for travel, additional approvals may be required for travel authorizations and reimbursement requestsExample: Grants & Contracts Administration (sponsored funds)
42 Travel – P-Card UsageA University-issued Purchasing Card (P-Card) is the most efficient method to use when paying travel-related expenses:Most airlines/hotels accept P-CardExpedites traveler’s arrangementsSimplifies expense reimbursement process once trip is completedUniversity employees who have P-card holders within their departments may have their P-card holder pay for business travel expenses using the card once a Travel Authorization Form has been completed.Note that employees are not permitted to make travel-related payments on behalf of others unless payment is made on a P-card holder’s purchasing card authorized for that purpose.Refer to Travel Manual for allowable / non-allowable travel-related charges on a P-Card
43 Travel – Advances / Pre-Payments Should only be requested when necessaryNon-employees are not eligible to receive travel advancesShould be reasonable and only for incidental, out of pocket expenses that cannot otherwise be prepaidAmount should not exceed the traveler’s estimated out of pocket expenses as indicated on Travel AuthorizationAll advances must be reconciled within 30 days of return date (or no later than June 30th of current fiscal year)Per OSBM Budget Manual, holders of state-issued credit cards should not be issued travel advancesPre-Payment Requests:Should only be requested for vendors that do not accept a P-Card or direct billing arrangementExample: Conference/registration fees when conference sponsor does not have capability to accept credit card payments, so a check must be requested
44 Travel – Discussion Questions What travel-related topics are you unsure of or would like to discuss more?What is your department’s internal process for reviewing travel-related requests prior to submitting to Travel/Complex Payments?
45 Travel – Key PointsBe familiar with University travel policies and the Travel ManualServe as your department’s “champion” for understanding travel-related requirementsUnderstand your department’s internal review procedures for travel-related requests prior to submitting to Travel/Complex PaymentsDrive consistency in your departmentRefer to Financial Services’ resources and guidance related to the travel process:Travel Manual“Resources” tab of Financial Services website
47 Petty Cash – Purpose & Misuse Intended forPurchasesGoods & services necessary to carry out official University functionsLow-priced items <= $100*Local vendorsHuman subject payments <= $25* Purchases may not be split into smaller increments to avoid the $100 limit. Written approval for one-time exceptions or special exceptions to exceed the $100 limit must be granted by Director of Materials Management. Renewed annually.Not Intended forCashing checksMaking loans or travel advancesReimbursements of any kind**Credit card purchasesTravel-related expenditures (mileage/fuel/parking/tips in travel status)Paying wages or overtime to any students or employee**Small parking fees or tips paid while not in travel status, but as part of university business will be allowed
48 Petty Cash – Purpose and Misuse Not Intended to avoid established purchasing procedures.Should be viewed as a “last resort”Where purchase orders or purchasing cards (P-Card) are not accepted; andWhen processing a direct pay request (DPR) would substantially increase the cost of the transaction.*Commercially prepared food purchases (i.e. pizza) not prepared by Chartwells, related to student-oriented activities, and occurring during non-business hours may be purchased from petty cash with an approved exception granted by the Director of Auxiliary Services and approved Food, Beverage, & Amenity Expense documentation.Purchases Not Allowed Through Petty CashEstablished ProceduresTravel-related expenditures (meals/fuel/parking/tips in travel status)Travel Procedure ManualMeals or entertainment expenses for a business purposeNon-Travel Reimbursements; Meals or Pre-paid Dining CardsCommercially prepared foods*Food Service - 709AlcoholAlcoholic Beverages - 706Floral tributes, small gifts and other tokens of appreciation, or prizes and awards.Gifts, Awards, & Prizes –(Under Development)Routine supplies available via purchase order or purchasing card49er Mart; P-CardPurchases that would otherwise not be approvedAppropriate Use of University Funds – 601.8Purchasing Policy –
49 Petty Cash – Roles and Responsibilities Petty Cash Fund Officer: a staff member in the Controller’s Office with authority to approve issuance of petty cash funds and administer the funds according to University policies and procedures.Heather Banes, General Accounting, Reese 225, extPetty Cash Officer Responsibilities:Make available and ensure compliance with current policies & procedures.Notify Internal Audit of any noncompliance.Risks Associated With Petty Cash:Accessible Nature“After the fact” ApprovalIncreased Theft, Loss, & Misappropriation of University funds
50 Petty Cash – Roles and Responsibilities Custodian: a full-time permanent employee responsible for maintaining the security, accountability, and replenishment of a petty cash fund.Custodian Responsibilities:Secure funds in a locked box, in a locked location, on campusNot in a bank, wallet, purse, or otherwise comingled with personal funds.Limit access to only the Custodian, but inform Supervisor of locationComplete Annual Renewal Agreement no later than May 31Keep a Petty Cash Transaction LogReconcile & Replenish petty cash at least monthly, by 10th business dayUse Petty Cash Reimbursement FormEven if there have been no expendituresDiscrepancies should be reported to Internal Audit and Petty Cash Fund OfficerIf a theft is suspected, notify Campus Police immediately. Also notify Petty Cash/Change Fund Officer and Internal Audit.Allow unannounced cash counts when requested by auditorsMake all petty cash related documents available to auditors
51 Petty Cash – Roles and Responsibilities Supervisor Responsibilities:Ensure Custodian exercises responsibilities appropriatelyEnsure Petty Cash overages/shortages are addressed and part of the employee’s performance evaluationRepeated overages/shortages will result in the loss of Petty Cash privilegesNotify Petty Cash Fund Officer when Petty Cash Custodian leaves the UniversityClose out Petty Cash fund if Custodian is not availableChange of Custodian:Current custodian, new custodian and supervisor must sign Change of Custodian Form and submit to Petty Cash Fund OfficerCurrent custodian and new custodian must verify funds are correctNew custodian and supervisor must submit a Petty Cash Agreement letterPetty Cash Fund Officer will contact new Custodian for training on policy and procedures
52 Petty Cash – Monitoring Routines Unannounced Audits performed by an Internal Audit representativePeriodic reviews of fund activity performed by Petty Cash Fund OfficerAny fund that remains inactive for six months, or is not being properly administered may be recalled
53 Petty Cash – Other Related Forms located @ General Accounting Petty Cash Request Form – Used to:Establish (Section 1)Increase (Section 2A)Decrease/Close (Section 2B)Deposit Form for Cash & Checks – Used to:Decrease/ClosePetty Cash Reimbursement Form – Used to:ReconcileAt any given time,Total receipts+ Cash on hand+ Pending reimbursement requests= Total authorized petty cash fundOver & Short Account (951720)ReplenishPossible attachments:Original receipts (Please Tape Down)Missing Receipt Affidavit (>=$25)Food, Beverage, & Amenity Expense Form ; Event Flyers/AgendaAwards and Other Gifts Log (e.g. Human Subject Payments <=$25) Under DevelopmentOne-time exceptions from Materials Management (Special annual exceptions will be kept on file)
54 Petty Cash – Discussion Questions Who currently holds petty cash funds in your department?What type of purchases are made with petty cash in your department?How often is petty cash needed? (e.g. once a week, once a month)What challenges have you encountered in using petty cash in your department?
55 Petty Cash – Key PointsEnsure you know your “inventory” of petty cash funds within your departmentAttempt to minimize use, where feasibleUtilize Financial Services’ resources and guidance to help ensure compliance with University policies and procedures