CPCC Procurement Overview

to Manual Table of Contents

Revised August 2007

Location | Authority | Procurement methods | Violation of regulations | Department agents | Definitions | Inventory responsibility | Procurement records | Procurement Information | Equipment using utilities service | Fiscal year limitations | End of year planning

Location

The Procurement Departmental offices of the Campus Administrative Services are located at the Harper Campus, 315 West Hebron Street, Charlotte NC 28273.

Authority

The Procurement Department has sole authority within the institution to buy goods and services for use by the faculty, staff, and administration.

Procurement methods

All procurement requiring a purchase order must be made by processing an on-line requisition and using a CPCC purchase order, issued only by the Procurement Department. The purchase order, check request, and VISA Procurement Card (hereinafter referred to as 'P-card' or 'Procurement card') are the only legal purchases allowed by CPCC.  NOTE:  GIFT CARDS -   CPCC departments will no longer be permitted to use College funds to purchase retail gift cards/debit cards to distribute to employees.  IRS regulations consider gift cards/debit cards to be a cash equivalent with a requirement to be added to an employee’s W-2 earnings as taxable income.  Because of the expense and complexities involved with tracking and monitoring any additions to an employee’s W-2, CPCC will no longer allow the purchase and distribution of retail gift cards/debit cards.  If your department has purchased a gift card/debit card prior to October 6, 2008, you may distribute these by December 31, 2008.  This will prevent any loss of funds that have been used to purchase the card.

A check request form or procurement card may be used in lieu of a purchase requisition and purchase order for certain transactions such as subscriptions and membership dues. For a complete list of allowable check request transactions see "Requisition and Procurement Regulations". Refer to the P-Card manual for its guidelines.

Violation of regulations

Any person responsible for purchases made in violation of state rules and regulations may be held personally liable for any and all financial commitments made (SEE North Carolina General Statute #143, paragraph 58). Other guidelines may apply for procurement card violations.

NOTE: Purchase orders issued after a purchase has been made are only to be allowed with the Procurement Departments approval. No department or individual is allowed to make purchases without a purchase order number being assigned in advance or by using a procurement card. Procurement has sole authority to make exceptions to this procedure when requested in advance.

Department agents

The administrative head of each department within the College is responsible for authorizing agents who may enter or approve requisitions and for furnishing this information to the Procurement Department.

Definitions

State funds are annual appropriations from the state to the College for day-to-day operating expenses such as salaries, equipment, library book purchases and building funds.

County funds are appropriations from the Mecklenburg County Board of Commissioners for College facilities operations and employees' salary supplement.

Foundation funds support employees' insurance benefits and the President's special events budget.

Federal funds support Federal Grant Programs.

Inventory responsibility

The College administration and all employees are accountable for the management and security of all purchased supplies and equipment.

Procurement and Inventory records

The Procurement Department furnishes computerized records to the Inventory Control Department (or based on information requested). The records contain details concerning

Accounts Payable provides invoice copies to Inventory Control who records serial numbers, inventory numbers, and locations, regardless of funding sources, to further substantiate inventory control records.

Procurement information

A complete Internet listing issued by the Purchase and Contracts Division of the State of North Carolina gives

Equipment using utilities service

Individuals purchasing equipment that might require installation of a new utility service should contact the Manager of Facility Services beforehand. The following are typical installations requiring help from Facility Services:

The Executive Director, Facilities Management will determine if such service now exists or if it is to be installed, the lead time required, and any other procedures that need to be followed.   The department making the request should also ask the Executive Director what costs will be added to the purchase by requesting this service.

Fiscal year limitations

Unless the State Budget Division grants special permission to carry operating funds forward into the following budget year, all unexpended, current expense money (operating funds) for the current fiscal year must revert to the State, according to North Carolina General Statutes.

End-of-year planning

Because purchased goods must be received before payment is made, the Procurement Department  makes a concerted effort two to three months before the end of the fiscal year to expedite all outstanding purchase orders.

The Procurement Department, or the department making the purchasing request, may contact vendors to expedite orders expected within the fiscal year and may cancel outstanding items or entire orders if the vendor assures the College that an item cannot be delivered during this period.  The requesting department must advise the Procurement Department of any changes or cancellations.

Encumbrances should be requested by use of on-line requisitioning for expected procurement card usage in March, April and May and entered by the requisition cut-off date; charges made in June will be paid from the beginning of the new fiscal year's budget.

NOTE: Purchase orders issued late in the fiscal year may be held open in Accounts Payable if the issuing department indicates to such a need to the Procurement Department, and the invoice will be paid from the beginning of the new fiscal year.


Last modified: 08/30/07
URL:http://inside.cpcc.edu