Policy 6.3.1 —
Bookstore OperationsPolicy 6.3.2 —
Vending and ConcessionsPolicy 6.3.3 —
Expenditure of State FundsPolicy 6.3.4 —
Financial ReimbursementsProcedure 6.3.4.1 —
Travel, Transportation and AllowancesProcedure 6.3.4.2 —
Operating College VehiclesPolicy 6.3.5 —
Chart of AccountsPolicy 6.3.6 —
Contracting AuthorityPolicy 6.3.7 —
PurchasingProcedure 6.3.7.1 —
Equipment InventoryProcedure 6.3.7.2 —
Reporting Lost or Stolen EquipmentProcedure 6.3.7.3 —
Sale, Trade or Disposal of EquipmentProcedure 6.3.7.4 —
Use of College Procurement CardsPolicy 6.3.8 —
Historically Underutilized BusinessPolicy 6.3.9 —
Payment Card SecurityPolicy 6.3.10 —
Identity Theft Red FlagPolicy 6.3.11 —
Foreign National Compliance PolicyPolicy 6.3.12 —
Companies that Boycott Israel and the Iran Divestment ListPolicy 6.3.13 —
Business EntertainingI. Bookstore/General Store Operations
All financial transactions pertaining to bookstore operations shall be accounted for in a proprietary institutional account and kept separate from all of the College’s other activities. Markup of textbooks shall be reasonable and consistent with the markup prevailing among other North Carolina Community College’s. Periodically, but at least every four years, the Board shall review the College’s mark-up on textbooks and other instructional materials sold through the bookstore to determine if the mark-up is appropriately balanced between affordability for students and other priorities identified by the Board.
II. Use of Bookstore/General Store Operating Revenues
A. Bookstore/General Store receipts shall first be used to support bookstore/general store operating expenses including, but not limited to: salaries and benefits of bookstore personnel, purchase of inventory, marketing, supplies, travel, equipment associated with the operation of the bookstore/general store, enhancement of the bookstore/general and bookstore/general facility support costs, such as, utilities, housekeeping, maintenance and security.
B. Receipts in excess of the above operating expenses shall be transferred to the appropriate account and expended consistent with the following provisions:
1. Funds may be used to support instruction, student support services, student financial aid (e.g. scholarships, grants, loans, Work Study), student refunds, student activities, giveaways to students, curriculum development, program improvement, professional development, instructional equipment, and capital improvements related to facilities associated with the bookstore/general store and student activities.
2. Funds shall not be used to support any supplemental salary, benefit or other form of compensation for the College’s President. Funds shall not be used to support administrative costs, promotional giveaways to individuals other than students, entertainment expenses, fundraising expenses, and capital improvements not allowed under (B)(1) above.
Legal Reference: 1H SBCCC 300.3
Adopted: January 9, 2019
Profits received from the College’s operation for vending machines and other concession activities shall be deposited, budgeted, appropriated and expended for the following purposes:
A. To support enterprises;
B. For expenditures of direct benefit to students; and
C. Other institution-related expenses authorized by the President.
Vending revenues and other concession profits will not be used for salaries.
Legal Reference: N.C.G.S. § 115D-58.13; 1H SBCCC 300.4
Adopted: January 9, 2019
I. Disbursement of State Funds
State funds expended by the College shall be disbursed through a disbursing account that the State Treasurer has established for the College. The signature of College officials that are authorized by the College’s President to sign vouchers issued on State funds shall be maintained on file with the State Treasurer and the State Board. The State Treasurer will furnish signature cards for this purpose.
II. Expenditure of State Funds
State funds shall be expended consistent with the purposes for which the State Board allocated the funds. In the event that the College expends State funds for an unauthorized purpose, the College shall reimburse the State for the amount from non-State funds.
A. Allowed Expenditures
1. Travel Expenses
State funds may be expended for travel in accordance with Policy 6.3.4–Financial Reimbursements.
2. Accreditation Expenses and Dues
a. Accreditation expenses relative to Southern Association of Colleges and Schools Commission on Colleges may be paid from State funds within the College’s current allotment. These expenses shall be limited to payment of travel, subsistence, lodging, and honorarium incurred by members of visiting committees, other bona fide representatives, and members of the staff of accrediting organizations.
b. The College may pay from State funds the required annual dues of the Southern Association of Colleges and Schools Commission on Colleges, and such institutional association membership dues as the Board deems to benefit the College.
c. The College may also pay from State funds the fees for accrediting individual programs offered by the College if the College’s President determines that the accreditation provides value to graduates of the program.
3. Campus Security
The College may use up to a specific amount of State funds designated by the State Board for campus security. Under this authority, the College may:
a. Hire security or campus police personnel;
b. Contract for professional security services and other security-related services; and
c. Purchase surveillance cameras, call boxes, alert systems, and other equipment-related expenditures, excluding vehicles.
4. Employee Recognition
The College may use State funds for purchases related to the recognition of employees for meritorious service through programs such as the one authorized by the State for State employees. In addition, State funds may be expended, not to exceed Fifty Dollars ($50), for the purchase of a plaque or for the printing and framing of a certificate to recognize employee service or performance. The expenditure of State funds for these purposes is subject to the availability of funds within the College.
B. Prohibited Expenditures
1. Athletics
The College shall not use State funds to create, support, maintain, or operate an intercollegiate, club, or intramural athletics program. Athletic programs may only be supported by student activity fees or other non-State funding sources that are authorized for that purpose.
2. Promotional Giveaways
The College shall not use State funds to purchase promotional giveaway items or other gifts for any reason, including promotional giveaway items purchased for College marketing and advertising. “Promotional giveaway items” are items given to an individual or entity for less than fair market value that do not serve an instructional or institutional purpose. Items that serve “an instructional or institutional purpose” are those used for classroom instruction and daily, routine operations of the College not associated with marketing, advertising, recruiting, or fundraising.
3. County Funded Items
Unless otherwise authorized by law, the Colleges may not use State funds for those budget items listed in N.C.G.S. § 115D-32 that are the County’s responsibility to fund.
Legal Reference: N.C.G.S. § 115D-32; -58.3; 1H SBCC 200.3 through 200.11
Adopted: January 9, 2019
For all financial reimbursements, the College follows the North Carolina Community College System Accounting Procedures Manual and Reference Guide, Section 1: Fiscal Procedures (the “Manual”). The Board hereby incorporates the Manual.
Consistent with the Manual, the Board of Trustees hereby delegates to the President the authority to establish the IRS business standard mileage rate as the reimbursement rate for official business travel or establish a rate lower than the maximum as a result of limited budget availability for travel.
Adopted: January 9, 2019
Travel, Transportation and Allowances
The College follows all state guidelines in reimbursing employees for College-related travel. In accordance with state policy, the College requires that all travel reimbursement requests be filed for approval and payment within thirty (30) days after the travel period has ended. Travel period is defined as the calendar month during which the travel occurred.
Reimbursement may not be made for commuting between an employee’s home and his or her duty station except for temporary or part-time continuing education instructors. Mileage will be reimbursed at the amount established by the College administration not to exceed the rate set by the IRS and the Office of State Budget and Management (OSBM).
Employees are encouraged to utilize College vehicles or rental vehicles for College related travel.
If a College or rental vehicle is not available, employees may request reimbursement for use of a personal vehicle. The reimbursement rate for college related travel when a vehicle is not available will be the college mileage rate.
If a College or rental vehicle is available for travel employees may request to use their personal vehicle for college related travel. The reimbursement rate for travel when a vehicle is available will be at 50% of the college mileage rate.
The College requires that all over-night, college-related, reimbursable travel be approved at least two weeks in advance by the employee’s Vice President or supervisor and authorized by the appropriate Vice President.
Students who travel on official institutional business must be paid from funds supporting the particular organization or activity in which their participation requires travel.
Temporary or part-time continuing education instructors who travel more than 15 miles to or from a duty station for the purpose of teaching continuing education courses may be paid mileage expense if such expense is approved in advance and in writing by the President or the Vice President of Instruction and Student Services.
Adopted: January 9, 2019
Revised: October 4, 2022
Operating College Vehicles
College vehicles are provided for use by faculty and staff for conducting college business. To prevent scheduling conflicts, employees wishing to use the College vehicles should indicate MCC Vehicle under Travel Methods on the Travel Authorization Form which is routed to the Vice President of Administrative Services via the respective Vice President. Cars may not be reserved more than one month in advance of actual travel. The use of private cars is desirable if it is known that the vehicle shall be parked in an airport parking lot or other location for as much as two (2) days.
Students may use college cars only with the permission of the Vice President of Administrative Services. Normally, student use of college cars is limited to the SGA President. Other students may operate buses and vans when permission is granted by the Vice President of Administrative Services upon the request of a faculty or staff member and when the student user has turned in a completed Field Trip Authorization Form and has undergone a driving record check.
Spouses and children of institution employees may accompany them in institution cars if space is available and all travel is strictly for official institution business. Spouses may not operate college vehicles.
Adopted: January 9, 2019
For all accounting procedures, the College follows the North Carolina Community College System Accounting Procedures Manual and Reference Guide, Section 2: Chart of Accounts (the “Manual”). The Board hereby incorporates the Manual.
Adopted: January 9, 2019
The Board is the official legal entity for the College. Unless otherwise delegated, the power to contract on the Board’s behalf is solely vested with the Board. The College’s size and complexity,
however, is such that individual review by the Board of every agreement is neither feasible nor in the College’s best interest. Therefore, certain delegations of contracting authority are appropriate within the following specified guidelines.
A. Contacting Authority Delegation – the President is hereby expressly authorized and empowered to contract in the Board’s name as follows:
1. All full-time employment contracts shall be signed by the President. The President may designate Vice President/ Deans to sign part-time/temporary contracts.
2. Capital Improvement Change Orders – The President and the Board Chair may jointly approve a capital improvement change order when, in the opinion of the President, the deferral of the change order until the next regular board meeting would cause a significant delay in the progress of the capital improvement project. All change orders thus approved shall be submitted to the Board for ratification at the earliest practical time.
3. Service Agreements – The President and Vice President of Administrative Services/Chief Financial Officer shall have authority to execute service agreements.
4. Instructional Agreements – The President is expressly authorized to sign all instructional agreements on the Board’s behalf.
5. Cooperative Agency Agreements – The President is authorized to sign all cooperative, interinstitutional and interagency agreements on the Board’s behalf.
B. Signatory Authority – Unless the authorizing action of the Board specifically provides otherwise, any contract approved by the Board shall be executed on the Board’s behalf by either the Board Chair or the President.
C. Custody of Contracts – The President is hereby designated as custodian of all Board contracts. He/she shall maintain on file in either the President’s office or the Business Office one of every contract to which the Board is a party.
D. Reporting – The President shall periodically report to the Board all contracts made pursuant to delegated authority.
Legal Reference: N.C.G.S. § 115D-14
Adopted: January 9, 2019
I. N.C. Community College Purchasing and Equipment Procedures Manual The Board hereby incorporates the N.C. Community College Purchasing and Equipment Procedures Manual (“Manual”). The Manual shall control in the event of any inconsistencies with this Policy or any of the College’s purchasing procedures. The Board herby authorizes the President to develop an internal purchasing manual consistent with this policy.
II. Purchasing and Bidding
Purchasing procedures are originated by the North Carolina Division of Purchase and Contract. Such procedures are sanctioned by N.C.G.S. § 143, Article 3 and § 115D-58.5.
A. State Contract Items – Items on state contract may be ordered directly from the vendor subject to any restrictions on the contract certification.
B. Non-Contract Items – Non-contract items of less than $10,000 total order may be placed by the College without the oversight or approval of the Division of Purchase and Contract Good purchasing practices mandate that competition is to be sought for all purchases. For small purchases, where the total order is $5,000 or less, telephone or e-quotes should be obtained to establish competitive prices, unless the items are purchased off a state contract. A record of those quotes should be attached to the requisition. For the purchase of more than $5,000 but less than $10,000, a minimum of three written quotes must be obtained and attached to the purchase requisition, unless the items are purchased off state contract. If three written quotes cannot be obtained, users must attach a note explaining the circumstances.
3. Competitive Bid Items – Non-contract items over $10,000 must be sent by requisition to the Division of Purchase and Contract for competitive bids.
Legal Reference: N.C.G.S. 115D-58.5; 1H SBCC 500.1 – 500.2
Adopted: January 9, 2019
The College shall conduct an annual inventory of capitalized assets. Spot checks may be made at
intervals when deemed necessary or advisable. The College shall inventory non-capitalized high-risk assets at least once every two (2) years. The Vice President of Administrative Services shall
be responsible for making sure that the inventory is completed.
Adopted: January 9, 2019
Any damaged, stolen or missing materials or equipment owned by the College must be reported to the Vice President of Administrative Services as soon as the discovery is made. A written report must be filed within twenty-four (24) hours of discovery of the loss. Conditions and circumstances leading to damage or loss should be included in the report, as well as actions proposed or taken to eliminate future losses.
Pursuant to N.C.G.S § 114-15.1, the President shall report possible violations of criminal statutes involving misuse of State property to the State Bureau of Investigation.
Adopted: January 9, 2019
When the College’s equipment reaches the end of its useful life, becomes inoperable, becomes obsolete or is replaced, the College, without the approval of the State Board of Community Colleges, may use any of the following to depose of said equipment:
1. Transfer the equipment to another community college.
2. Dispose of the equipment through the State Surplus Property Agency.
3. Sell or exchange the equipment (i.e., personal property) pursuant to Article 12, Chapter 160A of the North Carolina General Statutes.
4. Cannibalize or recycle the equipment (see page 73 of the N.C. Community College Purchasing and Equipment Procedures Manual entitled “Cannibalization of Equipment”).
Should the capitalized asset be determined to have no useful value and cannot be traded, sold, cannibalized or recycled, it may then be discarded.
Legal Reference: N.C.G.S. §§ 115D-15; 160A-266 through -271
Adopted: January 9, 2019
Procurement Cards (“P-Cards”) may be used to complete transactions where the preferred state procurement method is not possible due to time or purchasing constraints. Utilization of P-Cards is limited. In order to use the College’s P-Card, a requisition must be submitted through Etrieve. P-Cards shall be used for the following kinds of items.
1. Purchases of supplies or travel registration that cannot be bought with purchase order.
2. Hotel Reservations approved by the College President.
3. Emergency situations (broken equipment, etc.) that require immediate purchase.
P-Cards are not intended to circumvent the purchasing process. P-Card use shall be closely monitored. Any person using a P-Card without authorization will be personally responsible for reimbursing the College within twenty four (24) hours the amount of the purchase.
In addition, refer to the College’s Purchasing and Procurement manual for detailed purchasing procedures.
Adopted: January 9, 2019
The Colleges affirms the State of North Carolina’s commitment to encourage participation of historically underutilized businesses in the College’s purchase of goods and services. The College prohibits discrimination against any person or business on the basis of race, color, ethnic origin, sex, gender, disability or religion.
The College has adopted the following verifiable percentage goals for participation in the College’s contracts by women and minority-owned business: ten percent (10%) for participation by minority-owned, female-owned, disabled-owned, disabled business enterprises or non-profit work centers for the blind and severely disabled in the total annual value of all purchases of goods and services.
Legal Reference: N.C.G.S. §§ 143-128.2 through -128.4; City of Richmond v. J.A. Croson Co.,
488 U.S. 469 (1989)
Adopted: January 9, 2019
Credit card processing at the College shall comply with the Payment Card Industry Data Security Standards (PCIDSS). The following security requirements have been established by the payment card industry and adopted by the College to ensure compliance with the payment card industry. These requirements apply to all employees, systems and networks involved with credit card processing, including transmission, storage or electronic and paper processing of credit card numbers.
I. Authorized Employees
Credit card processing for official college business is restricted to Business Office/Bookstore/General Store personnel only. No other College employees are authorized to process such information for any reason. College employees who process credit card information or who have access to this information will complete annual data security training.
II. Procedures
A. Each College employee who processes credit card information must strictly adhere to the following:
1. Access to credit card information is restricted to Business Office personnel.
2. System and desktop passwords must be regularly changed.
3. Accounts should be immediately terminated or disabled for employees who leave employment with the College.
4. Credit card information should not be stored in any format.
B. Credit card information, including the card number, cardholder name, CVV code and expiration date should not be retained for any reason.
C. Employees may not send or process credit card data in any insecure manner including transmitting such data via email, courier or instant messaging. Credit card information may not be left exposed to anyone.
D. The College’s Technology Department shall maintain additional procedures to ensure compliance with PCIDSS including:
1. Configuration of card processing procedures, including segmentation of local area networks and protection through deployment of firewalls.
2. Logging control procedures.
3. Wireless use procedures.
4. Encryption procedures.
Adopted: January 9, 2019
Legal Reference: N.C. Community College Written Memoranda CC10-029 (issued 7/21/10)
I. POLICY OVERVIEW
This Policy is intended to meet the requirements of the FTC “Red Flag Rule.” Identity theft is a fraud committed or attempted using the identifying information of another person without that person’s authority. The College shall undertake reasonable measures to detect, prevent, and mitigate identity theft in connection with the opening of a “covered account” or any existing “covered account,” and to establish a system for reporting a security incident.
II. DEFINITIONS
A. Covered Account – A covered account is a consumer account designed to permit multiple payments or transactions. These are accounts where payments are deferred and made by a borrower periodically over time such as a tuition or fee installment payment plan.
B. Creditor – A creditor is a person or entity that regularly extends, renews, or continues credit and any person or entity that regularly arranges for the extension, renewal, or continuation of credit. Examples of activities that indicate a college or college is a “creditor” are:
1. Participation in the Federal Perkins Loan program;
2. Participation as a school lender in the Federal Family Education Loan Program;
3. Offering loans to students, faculty or staff;
4. Offering a plan for payment of tuition or fees throughout the semester rather than requiring full payment at the beginning of the semester.
C. Identifying Information – Any name or number that may be used, alone or in conjunction with any other information, to identify a specific person including: name, address, telephone number, social security number, date of birth, government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number, student identification number, computer’s Internet Protocol address, routing code or financial account number such as credit card number, in combination with any required security code, access code, or password that would permit access to an individual’s financial account.
D. Red Flag – A red flag is a pattern, practice or specific activity that indicates the possible existence of identity theft.
E. Security Incident – A collection of related activities or events which provide evidence that personal information could have been acquired by an unauthorized person.
III. IDENTIFICATION OF RED FLAGS
Broad categories of “Red Flags” include the following:
A. Alerts – alerts, notifications, or warnings from a consumer reporting agency including fraud alerts, credit freezes, or official notice of address discrepancies.
B. Suspicious Documents – such as those appearing to be forged or altered, or where the photo ID does not resemble its owner, or an application which appears to have been cut up, re-assembled and photocopied.
C. Suspicious Personal Identifying Information – such as discrepancies in address, Social Security Number or other information on file; an address that is a mail-drop, a prison, or is invalid; a phone number that is likely to be a pager or answering service; personal information of others already on file; and/or failure to provide all required information.
D. Unusual Use or Suspicious Account Activity – such as material changes in payment patterns, notification that the account holder is not receiving mailed statement, or that the account has unauthorized charges.
E. Notice from Others Indicating Possible Identify Theft – such as the College receiving notice from a victim of identity theft, law enforcement or another account holder reports that a fraudulent account was opened.
IV. DETECTION OF RED FLAGS
College employees shall undertake reasonable diligence to identify Red Flags in connection with the opening of covered accounts as well as existing covered accounts through such methods as:
A. Obtaining and verifying identity;
B. Authenticating customers; and
C. Monitoring transactions.
A data security incident that results in unauthorized access to a customer’s account record or a notice that a customer has provided information related to a covered account to someone fraudulently claiming to represent the College or to a fraudulent web site may heighten the risk of identity theft and should be considered Red Flags.
V. SECURITY INCIDENT REPORTING
College employees who believe that a security incident has occurred shall immediately notify his/her appropriate supervisor and the Vice President and Chief Financial Officer. Upon review of the incident, the Vice President and Chief Financial Officer shall determine what steps may be required to mitigate any issues that arise in the review. In addition, referral to law enforcement may be required.
If there is a security breach, the College shall comply with all notice requirements
contained in N.C.G.S. § 75-65
Legal Reference: Fair and Accurate Credit Transactions of 2003; FTC Regulations – Red
Flag Rule; N.C.G.S. § 75-65
Adopted: January 9, 2019
I. Definitions
A. A foreign national is a person who was born outside the jurisdiction of the United States, is a citizen of a foreign country, and has not become a naturalized United States citizen under United States law. This includes legal permanent residents.
B. Foreign nationals are classified as either “Nonresident Aliens” or “Resident Aliens”. Section 1441 of the Internal Revenue Code provides a separate tax system with a different set of tax rules and regulations for individuals deemed to be Nonresident Aliens. Colleges making payments to Nonresident Aliens are subject to different tax withholding, reporting and liability requirements.
1. A Resident Alien’s income is subject to tax in the same manner as a U.S. citizen. This means that their worldwide income is subject to U.S. tax and must be reported on their U.S. tax return. Income of Resident Aliens is subject to the graduated tax rates that apply to U.S. citizens.
2. A Nonresident Alien’s income is subject to federal income tax only on income which is derived from sources within the United States and/or income that is effectively connected with a U.S. trade or business.
Nonresident Aliens are taxed according to special rules contained in certain parts of the Internal Revenue Code.
II. Policy
All North Carolina agencies, universities, community colleges and institutions have been tasked with the responsibility of withholding and reporting on payments to foreign national individuals and vendors in accordance with the IRS Code Regulations Section 1441 and policies established by the N.C. Office of the State Controller.
When the College identifies a foreign national or foreign vendor that will be compensated via payroll, accounts payable or student services, the appropriate department shall maintain a copy of evidentiary and supporting documentation such as I-9, W-8BEN, I-20, I-94, I797, passport, and/or employment authorization card. The evidentiary and supporting documentation shall be provided to the Business Office. The Business Office will submit the supporting documentation to the Systems Office before payment is made. If the Systems Office determines that payments made by the College to a foreign national or foreign vendor are taxable, the College shall withhold federal and/or state taxes as instructed by the System Office.
Legal Reference: N.C. Community College Accounting Procedures Manual and Reference
Guide: Fiscal Procedures
Adopted: January 9, 2019
For all purchases and contracts valued at one thousand dollars ($1,000) or more (“Impacted Contracts”), the Board is prohibited from purchasing and contracting with the following:
A. Companies identified on the list of restricted companies, developed by the State Treasurer, that are engaged in a boycott of Israel (“Boycott List”).
B. Companies identified on the list of restricted companies, developed by the State Treasurer, that are engaging in investment activities in Iran (“Iran List”).
Prior to awarding an Impacted Contract, the College will check the Boycott List and Iran List on the State Treasurer’s website to ensure that the company is not a restricted company. Any Impacted Contract made by the College with a restricted company on the Boycott List and/or the Iran list is void.
Legal Reference: N.C. Session Law 2017-193; N.C.G.S. 147, Articles 6E and 6G
Adopted September 9, 2019
A. Consistent with North Carolina’s conflict of interest laws and Policy 1.4 – Conflict of Interest, employees may entertain associates and prospective students on the College’s behalf with the President’s prior authority. When granting authority, the President shall approve the type of entertaining and grant expense limits.
B. Entertainment expenses will be paid or reimbursed if such expenses are directly related to the College’s business and are approved in advance by the President. Employees who incur entertainment expenses not directly related to College business and/or without the President’s approval will be personally liable for said expenses.
C. To be approved by the President, the employee must submit documentation required by the Business Office. The documentation must contain a detailed itemization of the anticipated expenses to be incurred, the date, place and business reason for the entertaining and the names of those participating and their relationship to the College.
D. Entertainment reimbursements claims must be accounted for separately from any other expense reimbursement claim. Receipts must be included with reimbursement claims.
E. Business functions or entertainment involving the consumption of alcoholic beverages will not be reimbursed.
Adopted: January 9, 2019
