Tip of the Month
Policy 1252.3 – Reconciling a Purchasing Card (P-Card)
Q: As the reconciler, what do you do if you don’t believe a charge is proper?
A: The reconciler acts as the approval authority for each P-Card purchase. If, as the reconciler, you do not understand the charge or have reason to believe that the charge is not proper:
- Go to the cardholder for an explanation.
- Go to the Department Head or Business Manager to verify that the charge was appropriate.
- Go to Purchasing to verify that the charge is within applicable laws and University policies.
- Go to Internal Audit if fraud or abuse is suspected.
- The final step of the reconciliation process is approval. At this step, the reconciler’s electronic signature is captured to an archive file. This file will be kept for five years.
For more information, see Policy 1252.3.
Policy 1252.2 – Using a Purchasing Card
Q: Can I use the University’s purchasing card to purchase a gift card or individual membership?
A: NO, gift cards and individual membership are non-allowable.
For more information, see Policy 1252.2.
Policy 1234 – Contractual Services
Q: Are contractual services contracts required to be approved by the department?
A: Yes, to ensure the department has reviewed and agreed to the terms of the contract.
For more information, see Policy 1234.
Procedure 302.2 – Restrictively Endorsing Checks for Deposit
Q: How should check items received by the university be endorsed?
A: Check items received by the university should be endorsed:
- For Deposit Only
- To the Account of
- The University of North Carolina at Chapel Hill
Check items must be endorsed by the payee in order for the bank to transfer funds from the payor. The restrictive endorsement directs the bank to only deposit the funds to the University’s bank account. If the payor makes a check to the University payable to an individual, the individual must endorse the check and then add the above restrictive endorsement.
This step is an important internal control and helps safeguard assets, which in this case are check items belonging to the University.
For more information, see Procedure 302.2 of the Finance Division’s Policy and Procedure Online Manual.
Policy 1237 – Changes to Purchase Orders
Q: Who do I speak to if I want to make changes to my purchase order?
A: If you need to make a change to a purchase order (additions, deletions, other corrections) call the appropriate agent listen on the purchase order and submit a change request.
For more information, see Policy 1237 – Changes to Purchase Orders.
Policy 1263 – University – Related Business Entertainment Expenses
Internal Conferences, Training Sessions, Recognition Events, Business Meetings, and Seminars
A meal, such as a luncheon, and refreshment breaks which are provided as part of a departmental conference, training session, a recognition event for one or more employees, a business meeting, or a seminar are reimbursable as business entertainment expenses. These events are planned in advance, have a written agenda and have a list of attendees. The costs incurred should be prudent and reasonable.
Policy 1218 – Purchasing Method
Q: Why do I need to get authorization to purchase goods or services in excess of $5,000?
A: Authorization is required to ensure adherence to State statutes and maintain effective internal control. Contracts of suppliers who do not have to accept returns usually contain language that increases the difficulty of pursuing that vendor in a potential lawsuit. In addition to ensuring the University receives the best value through open competition, required authorization and rules governing state agency purchasing provides Purchasing Services with information on a vendor’s historical performance, financial status and other important factors that mitigate the risk of receipt of faulty goods.
Emergency or Pressing Need Purchases
Q: My department was just given some additional money but needs to spend it within the next several days. Can this be considered an emergency purchase?
A: No, your circumstances do not fit the emergency or pressing need criteria as listed above.
For further details, see:
Policy 1240 – Emergency or Pressing Need Purchases
2-Step Verification (DUO)
Q: What is 2-Step Verification and why is the university using it for W-2 forms?
A: Two-step verification is a security method that uses two methods of identity verification to ensure that you are “you” before allowing you access to personal or sensitive data from a website. Traditionally, when accessing information on the web at UNC, employees would use their Onyen and password to gain access. The two-step adds a second verification: by registering your mobile phone, landline or tablet in the system, the system then sends you a link to the device you registered with a code. Using the code, you can then access the system with the sensitive information that you are trying to obtain.
UNC is using it for W-2 forms to provide extra protection from online hackers who are trying to access financial or personal information.
For more information see: http://ccinfo.unc.edu/featured-resources/online-employee-tax-forms/
Graduate Student Health Insurance Program (GSHIP)
GSHIP is a separate plan from the UNC system-wide mandatory student health insurance plan.
Q: If a student is not eligible for the Graduate Student Health Insurance Plan, is there other insurance available?
A: If these students are degree seeking, enrolled in at least one credit hour, and eligible to pay the Campus Health Services student health fee, they can participate in the student health insurance plan. More information about this plan is available through Campus Health Services.
The determination that an individual is an independent contractor is to be made prior to the individual’s performance of service.
Q: Is a single-member LLC (limited liability company) an independent contractor?
A: Yes. An LLC can be one of four types – 1) a single-member, 2) C corporation, 3) S corporation, or 4) P partnership. If the LLC is a single-member LLC, they are an independent contractor and UNC will issue form 1099. Single member LLCs can use either their social security number or an employer identification number (EIN) for tax reporting and form 1099.
Mobile Communication Devices
Policy permits the University to issue a monetary stipend to select employees who meet the policy criteria pertaining to the use of wireless devices for University business purposes.
Q: The stipend I receive is not enough to cover my entire phone bill. May I request a reimbursement for the balance?
A: No. The intent of the stipend is to provide compensation for business-related activity on a personal MCD without the user having to submit documentation for business-related calls. The allowance is not intended to cover personal use of the device.
For more information, see Policy 1269 – Mobile Communication Device Business Expenses.
Q: May an employee be reimbursed for home internet expenses?
A: No, this is a personal expense. The state budget manual allows for internet connectivity while traveling, but not from home. If a Dean believes that reimbursement is permissible due to health reasons or if regular on campus work space has been temporarily unavailable (such as in a remodel), this would be allowable. A memo justifying this reason from the Dean specific to the individual and stating the time period permitted must be attached to every voucher.
For more information, see Policy 1227 – Unauthorized Purchases