September 2018

Policy 1213: Prohibition of Gifts or Favors from Vendors

It is unlawful for a State employee to willfully receive or accept gifts or favors from vendors. This includes travel coordinators who are prohibited from accepting free tickets or other personal benefits from travel agencies.

University faculty, staff, or students involved in preparing plans, specifications, or estimates for University contracts, awarding or administering such contracts, or inspecting or supervising construction may not accept gifts or favors from any vendor who has a current contract with the University, has performed under a contract within the past year, or is anticipated to bid on such a contract in the future.  For more, see Policy 1213.

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Policy: University of North Carolina at Chapel Hill Information Security Controls Standard

This standard defines the minimum security controls for Information Technology systems in use at UNC-Chapel Hill. Units within the University may apply stricter controls to protect information and systems in their areas of responsibility. The standard applies to each UNC-Chapel Hill Affiliate for any covered system under their control.

Policy 306 University of North Carolina at Chapel Hill Policy on Imprest Checking (Bank) Accounts

Departments are required to perform monthly reconciliation of the imprest checking account to the fund source in ConnectCarolina and reconcile the checkbook to the bank statement. The bank reconciliation should include the following controls:

  • Identifying, resolving and clearing reconciling items.
  • Notifying Cash Management in Accounting Services of any unauthorized activity.
  • Evidence of supervisor review and sign off on the reconciliation.
  • Assigning the duties of writing checks and reconciling the imprest account to two different individuals.
  • Documenting any communications or discussions with the bank employee regarding the account.

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 708 Independent Contractor

University of North Carolina at Chapel Hill Policy on Independent Contractors

An individual who is engaged by the University to provide a service could be considered an employee or an independent contractor. The independent contractor is subject to the direction or control of the University only as to the end result, not as to the methods and means used to accomplish that result. The determination that an individual is an independent contractor is to be made prior to the individual’s performance of service. Originating departments are to seek confirmation of independent contractor status from Disbursement Services prior to making any employment commitment or preparing any payment vouchers. Effective July 1, 2014, a new process for independent contractor hiring includes background checks.


  • University of North Carolina at Chapel Hill Procedure 708.1 – Independent Contractor Predetermination Process
  • Related Data Item 708.1.1rd – Domestic Vendor Independent Contractor Workflow Process and
  • Related Data Item 708.1.2rd – Foreign Vendor Independent Contractor Workflow Process.

To read more, see Policy 708.

Policy 1281 – Repair of In-Warranty and Out-of Warranty Equipment

In-Warranty Equipment

Most equipment is warranted by the manufacturer against faulty parts or workmanship for a period of time after its purchase. Generally, a warranty card or online registration form must be completed and submitted to the manufacturer for the warranty to be in effect. Submission of such information is the responsibility of the using department and should be done as soon as an item is received.

Legally, a manufacturer is responsible for replacement or repair of defective equipment. However, the equipment must be returned freight prepaid to an authorized repair center, only the defective part is replaced at no charge, and replacement labor costs may be charged to the customer. A requisition must be submitted to obtain in-warranty service.

To read more, see Policy 1281.

Policy 1231 – Solicitation of Quotations, Bids and Proposals

The solicitation of competitive quotes, bids or proposals is the sole responsibility of Purchasing Services. Purchases for goods and services should be made from items available at University Stores or through existing State contracts, unless lower prices can be obtained from other sources adequately documented. To read more, see Policy 1231.

Policy 1212 – Solicitation by Sales Representatives

Unsolicited and/or non-approved solicitations of University business by outside sales representatives are unwarranted and not desired.  The University follows the State policy that requires goods and services be obtained from either State term contracts, by competitive bidding, or the small order process for procurements less than $5,000.  In order to conduct formal business with the University, a sales representative must first register with the State of North Carolina to participate in the formal bid process. Prospective vendors are required to first make contact with Purchasing Services to gain an understanding of the rules for conducting business with the University before meeting with prospective customers at their campus location.

To read more, see Policy 1212.

Procedure 304.1 – Establishing, Maintaining and Closing a Petty Cash Fund Account

Maintaining a Petty Cash Fund

Maintaining a petty cash fund includes timely replenishing, increasing or decreasing the authorized amount.

To replenish a petty cash fund, the petty cash custodian will perform the following:

Obtain receipts for all payments made from petty cash funds. An acceptable receipt should include the date of the transaction, a brief description of the materials purchased, or the services rendered; the total cost; and a clear indication that the charge has been paid. Receipts that bear evidence of alteration cannot be accepted or processed.

When the vendor’s printed invoice form is used as a receipt, the invoice must clearly indicate that it has been paid.  For example, the vendor may stamp the invoice with the official “Paid” stamp of the firm, or make the invoice out to “Cash Sale” and use the firm’s cash register receipt with “Cash Sale” imprinted on it; or may mark the invoice “Paid” and sign or initial it.

Complete Petty Cash Imprest Checking Reimbursement Voucher and submit to Disbursement Services with receipts.  Disbursement Services will review, approve account changes, and issue a check to the petty cash custodian.

Reconcile and replenish the petty cash fund a least once a month or when needed.

To find out more, read Procedure 304.1.

Policy 1403 – Automobile Accidents and Damages

All automobile accidents involving University-owned, Motor Fleet Management, rental or personal vehicles being used for official state business must be immediately reported to Risk Management Services, regardless of damage or fault. This includes not only accidents but also damage such as broken windshields, theft or vandalism. The vehicle operator’s immediate supervisor should also be notified of the accident.

Different claims reporting procedures apply depending on the type of vehicle involved, the coverages that are applicable, and who is at fault for the accident. Risk Management Services will provide the necessary instructions to assure the proper procedures are followed.

Automobile accidents should always be reported to the appropriate law enforcement agency. A police report documents how the accident occurred, who was involved, and when applicable, assists in our recovery against the responsible third party.

Q: I had an accident in a University vehicle. Who should I notify?

A: All automobile accidents involving University-owned, Motor Fleet Management, rental or personal vehicles being used for official state business must be immediately reported to Risk Management Services. This notification should be made by completing an Automobile Loss Notice. The driver’s immediate supervisor should also be made aware of the accident.

Read more about Policy 1403.

Policy 604 – University-Owned Surplus Property

Items that have become obsolete or no longer needed are to be sent to the University Surplus Property Warehouse. University Surplus Property will transfer, sell, dispose of an item through the State Surplus Property System, recycle, or scrap items no longer useful to the University.

Q: I have an item that is unserviceable, such as a broken chair. Can I put the broken chair in the trash?

A: No, the item has to be sent to the University Surplus Property Warehouse for disposal or recycling.

To read more about how to handle University surplus, see Policy 604.

ITS Help & Support: Password Security

Your computer password is your best defense against damaging intrusions.  Without a well-chosen password or set of passwords, any other security measures protecting yoru data are greatly weakened.  Never share your passwords with anyone.  The most frequent password mistakes made include choosing an obviuos password or writing down teh password near your computer.

You can avoid creating an insecure password by making sure it meets these requirements.

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.

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