01 NCAC 05B .1523          PROCUREMENT CARDS

(a)  Procurement cards (organizational charge cards) are for official use only and shall be used in accordance with this Section and with the statewide contract established and maintained by the Division of Purchase and Contract.  Use of procurement cards by any agency is contingent on satisfactory compliance review, as determined by the Division of Purchase and Contract.  As the State's electronic procurement system is implemented, it shall be used to the fullest extent possible, including issuance of purchase orders.  Procurement cards may be used as a payment mechanism within e-procurement if permitted by fiscal policies of the agency.

(b)  Procurement card transactions processed through the State's electronic procurement system, utilizing the card as a payment mechanism within electronic workflow and approval processes, may be in any amount consistent with agency fiscal policies.

(c)  For procurement card transactions processed outside the State's electronic procurement system, the per-transaction limit shall be two thousand five hundred dollars ($2,500.00).  This limit may be changed only under the following circumstances:

(1)           In an emergency (as defined by 01 NCAC 05B .1602 or Governor's declaration), the agency card program administrator may request higher limits on cards in critical areas.  Such increases shall be in effect no longer than the duration of the emergency.  Requests for increased limits are to be made through the Division of Purchase and Contract if time permits and must be reported to Purchase and Contract in any case.

(2)           Agencies may apply to the SPO for higher limits on specific types of transactions, with justification required.

(3)           The SPO may adjust limits based on analysis of the procurement card program's results, on a statewide or agency basis, after taking into consideration current market trends, the economy, and recommendations received from the State Controller and the State Auditor.

(d)  Each participating agency shall designate a procurement card program administrator, who shall be the chief purchasing officer or chief fiscal officer (or person specifically designated by either of these).

(1)           All cards requested on behalf of the agency shall be sent to the program administrator (not to individual cardholders) by a traceable delivery method.

(2)           Cards shall show the agency name, cardholder, the state seal or agency logo, and indicate they are for official use only.

(e)  The card program administrator, in consultation with the agency's chief executive or fiscal officer, shall determine appropriate limits by per-transaction amount (not to exceed the statewide per-transaction limits set in Paragraphs (b) or (c) of this Rule) total per billing cycle, merchant categories, and similar factors.  Agencies shall submit a copy of their procurement card policies and procedures to the Division of Purchase and Contract within 90 days after program implementation and thereafter whenever such policies or procedures are updated.

(f)  The card program administrator shall determine compliance with agency policy and procedures, including cardholders' acknowledgement prior to issuance of cards, account reconciliation, and security.

(g)  Agencies shall comply with procurement card policies prepared and disseminated by oversight fiscal offices (e.g., Office of the State Controller for state departments) governing those agencies under their responsibility.

(h)  No other charge cards that obligate payment by the agency or the State shall be used unless an existing contract obligation requires its use, but that obligation shall be discontinued no later than June 30, 2003.  Requests for exceptions to this rule shall be submitted in writing to the State Purchasing Officer.  Consideration of requests will be based on need, compliance reviews and contract obligations.


History Note:        Authority G.S. 143-49(8);

Temporary Adoption Eff. July 1, 2002;

Eff. April 1, 2003;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. July 23, 2016.