Chapter 200 Financial and Business Affairs

201. Accounts Payable and Travel

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: Business, Finance and Administrative Services

History: Revised June 2006 Revised September 2004

Applies to: ●Faculty ●Staff ●Students

Related Policies: Office of State Budget and Management Budget Manual
Office of the State Controller Cash Management Policy
Office of the State Controller Accounts Payable Policy

Contact Person: University Controller (910) 672-1062


This policy addresses the payment process for goods and services received by the university and the payment process for travel. The Accounts Payable (AP) Unit within the Controller's Office, Division of Business and Finance, is responsible for processing these payments.

The goal of the AP Unit is to consistently and accurately process completely supported and documented payments in a timely manner so that vendor terms are honored and the university may take advantage of cash discounts. The AP Unit is committed to providing high-quality service to departments and vendors and prompt responses to requests for information.

Fayetteville State University uses the AP component of the Banner Finance. The AP component electronically matches the purchase order, receiving information, and the invoice for payment. The AP system also prevents the entering of duplicate invoice numbers, reducing the chance of paying an invoice twice, and provides a 1099- Miscellaneous Income tax reporting feature for processing the Statement of Recipients of Miscellaneous Income (Form 1099-MISC).


The central state agencies governing how state entities are to manage, process, and disburse state monies are the Office of State Budget and Management (OSBM) and the Office of the State Controller (OSC).

For the disbursement of money, the statewide cash management plan shall provide at a minimum that:

A. Moneys deposited with the State Treasurer remain on deposit until final disbursement to the ultimate payee;

B. The order in which available resources are expended is subject to state law regardless of whether the State entity disbursing the moneys is subject to the Executive Budget Act;

C. Federal and other reimbursements of expenditures paid from State funds shall be paid immediately to the source of the State funds;

D. Billings to the State for goods received or services rendered shall be paid neither early nor late but on the discount date or the due date to the extent practicable; and

E. Disbursement cycles for each State entity shall be established to the extent practicable so that the overall efficiency of the warrant disbursement system is maximized while maintaining prompt payment of bills due.

OSBM and OSC have policies and procedures listed on their websites for State entity compliance.


A university employee traveling on official university business is expected to exercise the same care incurring expenses that a prudent person would exercise if traveling on personal business and expending personal funds. Excess costs, luxury accommodations and services unnecessary or unjustified in the performance of official university business are not acceptable under this policy. Travelers will be responsible for unauthorized costs and any additional expenses incurred for personal preference or convenience.

A. State Policies Regarding Travel

This section provides basic information on travel policies and procedures based on the State Budget Manual, which sets forth travel policies relative to securing authorization and reimbursement for official state travel. The administration and control of travel is in accordance with the provisions of the North Carolina General Statutes. Failure to comply with any part of the State rules and 3 regulations pertaining to travel could result in audit exception(s) and adversely affect the university's financial reputation.

The policies and procedures as stated in this manual apply to State Budgeted Funds deposited with the State Treasurer, whether derived from appropriations or university receipts, Institutional Trust Funds, and Contracts and Grants.

All travel is contingent upon availability of funds.

B. Travel Authorization

When a university employee travels on official state business, a Travel Authorization Form is completed noting the following items:

  1. All university related travel requires completion of the Travel Authorization Form prior to the actual travel date(s).
  2. The Travel Authorization Form must have required signatures, the supervisor and budget account manager (this can be the same person but they must sign twice).
  3. The address on the Travel Authorization Form must be where the traveler's reimbursement check is to be mailed. If not mailed, then note picking-up check on form.
  4. If requesting airline tickets to be purchased by FSU, complete the estimated amount on the appropriate line of the Travel Authorization Form and attach a completed Airline Reservation Form, (Do not submit a reservation form if the traveler is purchasing his or her own tickets).
    • a. To secure airline tickets, the estimated amount for the ticket must be listed on the appropriate line on the Travel Authorization Form as well as completed on the Airline Reservation Form.
    • b. Both forms must be submitted at least 10 working days prior to trip.
    • c. An electronic airline ticket is e-mailed to the traveler normally 3 days after the paperwork is submitted.
  5. If advance registration is requested, note the amount on the appropriate line and attach a completed registration form(s) with the payee information for check processing.
  6. A blanket travel authorization may be used when a university group is attending an event being paid from a single budget line. A separate sheet or group travel roster must be attached reflecting names of all persons covered on the blanket Travel Authorization Form
  7. If traveling using Title III funds, the Travel Authorization Form must be submitted to the Title III office for approval before being sent to the Business and Finance Office.

Authorization for travel is delegated to the traveler's supervisor. This individual's approval indicates that appropriate review of the travel request has been made and travel conforms to all rules and regulations, and is properly supported with valid reason, documentation, and fund availability. Once the travel has been completed, the traveler's supervisor must review and approve the travel reimbursement request. The supervisor's signature indicates that the travel and request for reimbursement is in accordance with State travel regulations and properly supported with valid documentation and receipts.

NOTE: Further details concerning allowable travel rates and regulations are listed under the Travel Reimbursement section or in the State Budget Manual, both of which may be helpful in completing a Travel Authorization Form for pending travel.

C. Processing Travel Authorizations

  1. A university travel requester shall submit an approved Travel Authorization Form to Accounts Payable (AP) for processing.
  2. AP shall verify that the travel authorization meets State travel guidelines, has proper departmental signature authorization, and that there is ample department budget to cover the travel amount requested.
  3. If all criteria are met, AP signs off on the travel authorization. If not, the travel authorization is returned to the requestor.
  4. AP shall process and mail a check for any prepaid costs (e.g., airline, hotel, registration).
  5. AP shall file the travel authorization by traveler's last name for matching with travel reimbursement.

D. Travel Advance

When a university employee travels on official state business, a travel advance may be requested on a Travel Authorization Form and must comply with the following conditions:

  1. Employee who does not have a Corporate American Express Card. NOTE: University employees may apply for a corporate American Express card under FSU's corporate account to assist with travel costs as an alternate to a travel advance. There will be about a month turnaround time once card is applied for. Please contact AP, Travel, to apply.
  2. The request must be less than or equal to 80% of the estimated cost of lodging and meals.
  3. The Travel Authorization Form requesting an advance must be submitted to AP at least 10 working days prior to the travel start date in order to process the check request.
  4. The traveler must not have a travel advance outstanding. No traveler is permitted to have a travel advance outstanding for more than one trip at a time.
  5. The traveler must submit the travel reimbursement request to AP within 30 calendar days after trip completion. If travel costs are less than the advance amount, a personal check must be attached to the Travel Authorization Form. (The cashier's office will also accept credit cards and cash, in lieu of a check.)
  6. The traveler must sign the Travel Authorization Form which authorizes FSU to deduct from the traveler's salary any payment advancements for which a travel reimbursement has not been submitted 30 calendar days after travel completion.
  7. If a travel advance is obtained and the trip is not taken, the advance must be repaid within 5 working days. If the trip is postponed, the advance must be repaid and a new advance obtained against a new Travel Authorization Form.

E. Processing Travel Advances

  1. The university travel requester shall submit an approved Travel Authorization Form (requesting a travel advance) to AP for processing.
  2. AP shall verify that the travel authorization meets State travel guidelines, that the form has proper departmental signature authorization, and that there is ample department budget to cover the travel amount requested.
  3. If all criteria are met, AP signs off on the Travel Authorization Form. If not, the Travel Authorization Form is returned to the requestor.
  4. AP will process and mail checks for any prepaid costs (e.g., airline, hotel, registration) and travel advances.
  5. AP will file the Travel Authorization Form with the documentation for reimbursement and travel advance settlement.

F. Travel Reimbursement

Within 30 calendar days upon completion of the authorized travel, the traveler MUST complete a Travel Reimbursement/Expense Report form along with supporting documentation/receipts and submit to the traveler's supervisor for review and approval. Submitting a Travel Reimbursement/Expense Report is mandatory when any authorized travel is completed, regardless of expected reimbursement.

With the exception of Title III funded trips, the traveler shall forward the approved Travel Reimbursement Form to AP for processing. Title III funded trips should be sent to the Title III office for approval. Approved Title III reimbursement forms shall be processed promptly and sent to the Business and Finance Office.

AP shall review and verify the following requirements:

1. Meals (State approved meal rates are listed on the Travel Reimbursement Form):

  • a. Meal reimbursements are allowed during overnight travel at the rates authorized by the State. This authorized State rate includes tips.
  • b. Employees are allowed to claim a meal allowance during commercial air travel even though the meal(s) are shown and offered as part of the flight schedule.
  • c. Employees are allowed to claim breakfast reimbursement even if the lodging establishment offers a free continental breakfast as part of the room cost.
  • d. The costs of meals included as part of a conference registration are not reimbursable on the Travel Reimbursement form.
  • e. Meal allowances cannot be paid to employees for lunches if travel does not involve an overnight stay.

Employees are eligible for meal allowances for breakfast and dinner meals during daily travel or overnight travel when the following applies:

  • a. Breakfast - The traveler departs from the duty station prior to 6:00 AM and the workday is extended by 2 hours.
  • b. Dinner - The traveler returns to the duty station after 8:00 PM and the workday is extended by 3 hours.
  • c. Travel must involve a travel destination located at least 35 miles from the employee's assigned duty station or home whichever is less.

2. Lodging (State approved lodging rates are listed on the Travel Reimbursement Form):

  1. Lodging reimbursement requires an itemized receipt from a commercial lodging establishment.
  2. The payment of taxes or fees applied to the cost of lodging is allowed in addition to the lodging rate and is to be paid as a lodging expense.
  3. Excess lodging above the State rate (plus taxes) must be approved on the Excessive Rate Form before travel occurs and subject to the following reasons:
    • a. Travel is to a high-cost area.
    • b. The employee is unable to secure lodging within the current allowance.
    • c. The employee submits, in writing, an opinion that personal safety or security is unattainable at the current allowance.
  4. Excess lodging is not allowed for reasons of convenience or personal preference.
  5. Lodging must involve a travel destination located at least 35 miles from the employee's duty station or home whichever is less.
  6. Baggage handling tips may be claimed as "miscellaneous" expenses, not to exceed $5.00 per porter for arrival and departure.
  7. Room service snacks, movies, mini-bars and personal phone calls are not allowable travel reimbursement expenses.

3. Mileage (State approved mileage rates are listed on the Travel Authorization Form and Travel Reimbursement Form and are subject to future change):

  • a. Effective September 1, 2005, the State approved mileage rate for personal-owned vehicle (POV) use is 48.5 cents per mile. Payable to the traveler if a state-owned vehicle (SOV) is not available or the request for a SOV is denied.
  • b. If a SOV is available and the employee drives his/her own vehicle, the mileage reimbursement is at the Motor Fleet rate of 25 cents per mile.
  • c. Parking fees, tolls, and storage fees are reimbursable with proper receipts.
  • d. Reimbursement for travel between an employee's duty station or home (whichever is less) and the nearest airport and parking are allowed under the following circumstances for travel by:
    • 1. Taxi or airport shuttle - actual costs with receipts.
    • 2. Personal vehicle - the business standard mileage rate set by the IRS for a maximum of two round trips with no parking charges or one round trip with parking charges (receipt required).
    • 3. Use of Public transportation - receipts needed for trips costing more than $5.00 each way.

G. Travel Expenses

Receipts are required for the following items:

  1. Parking fees,
  2. Tolls,
  3. Storage fees,
  4. Taxi & shuttle service (if one way trip exceeds $5.00),
  5. Telephone access fees for business calls,
  6. Transportation by common carrier (air, rail, bus).

Receipts are not required for the following items:

  1. Meals unless exceeding the State's allowable rate.
  2. Baggage handling tips ($5.00 per day).
  3. Valet parking tips ($5.00 per day).
  4. Public transportation (not to exceed $5.00 per one way trip).

H. Processing Travel Reimbursements

  1. Employee completes a Travel Reimbursement and submits to supervisor for review and approval.
  2. Employee submits an approved Travel Reimbursement Form to AP for processing.
  3. AP matches Travel Reimbursement Form with file copy of the Travel Authorization.
  4. AP verifies the Travel Reimbursement Form agrees with the Travel Authorization, meets State travel guidelines, and contains proper department approval signature.
  5. If all criteria are met, Travel Reimbursement Form is processed. If not, the Travel Reimbursement is returned to the requestor for corrections.
  6. AP processes travel in the accounting system to produce a reimbursement check for the employee.
  7. AP mails check or holds for employee pick-up.


University disbursements for the payment of goods and services (except payroll) are normally prepared within seven (7) working days after receipt of the required documentation by AP.

Failure to submit the proper documentation to AP delays the disbursement process, which adversely affects budgets and vendor/campus business relations. To minimize disbursement delays, all departments with the exception of Facilities Management and the Library must inform the vendors with whom they do business to send ALL invoices directly to:

Fayetteville State University
Accounts Payable
1200 Murchison Rd.
Fayetteville, NC 28301-4298

Failure to comply with the following disbursement requirements could result in audit exceptions, improper payments, and/or delayed payments.

A. Adequate Documentation

  1. Disbursements shall only be made from original source documentation, such as invoices, agreements, contracts, and requests, which sufficiently describes the purpose of the disbursement.
  2. Documentation must originate from outside the university.
  3. Vendor verification and maintenance shall be done by FSU's Purchasing Department.
  4. Documentation must identify the payee by name, the payee's address, and FSU's purchase order number.
  5. Documentation must be centrally received in AP.
  6. Under special circumstances when the original invoice is not sent directly to AP by the vendor, the campus department in receipt of the invoice must forward the invoice to AP in a timely manner and before the due date.
  7. Documentation for disbursements must be retained in accordance with state and federal retention policies.

B. Approval for Payment

  1. Disbursements must be approved by the person or persons authorized by the university to make such approvals (Chancellor, Vice Chancellors, and Department Heads).
  2. An authorized signature or initials must be on the supporting documentation indicating accuracy and approval of payment (Controller or AP Supervisor).
  3. All invoices are reviewed and approved for completeness of supporting documents and required clerical checking by the Controller or AP Supervisor.
  4. Construction project inspection reports by a university representative or architect must be available before approval of payment.
  5. Contract payments must be approved by the designated contract administrator or Vice Chancellor for Business and Finance.

C. Receipt of Goods and Services

  1. Receiving report documentation must be available to AP demonstrating the goods or services were actually received, counted, and examined before payment can be made.
  2. Generally, receipt of all goods at FSU is through Central Receiving.
  3. Receiving is done electronically through the AP System, which matches the purchase order, receiving, and the invoice.
  4. Under special circumstances when receiving is not done through Central Receiving, the receiving report must be forwarded by the campus department to AP in a timely manner for prompt payment.

D. Account Classification

  1. 1. The disbursement must be accurately classified to the proper account distribution and agree with established account classifications.
  2. 2. Payments should not be coded to budget level Banner account number but to the actual expenditure Banner account number.
  3. 3. AP must review the propriety of the account classifications.

E. Allowable and Eligible

For federal programs, the disbursement must be for an allowable activity and for eligibility of recipients per federal regulations. Monitoring of allowable and eligible disbursements is done by the Contracts and Grants Section within the Controller's Office.

F. Net of Credits

  1. The disbursement is net of applicable credits (i.e., cash discounts).
  2. Billings to the university for goods or services rendered should not be paid early or late but on the discount date or due date to the extent practicable.
  3. AP is responsible for determining that cash discounts are taken.
  4. AP must be promptly notified of returned purchases and for correlation of such purchases with a vendor credit advise. G. Purchase and Contract Regulations

The disbursement must comply with State purchase and contract rules and regulations as listed in the State Purchasing Manual and FSU's Purchasing Policies and Procedures.

H. Separation of Duties

The following duties are generally performed by different staff:

  1. Receiving and invoice processing.
  2. Invoice processing and making general ledger entries.
  3. Invoice processing and check signing.
  4. Invoice processing and check mailing.

I. Invoice Processing

  1. Obtain the requisition, purchase order, and receiving report supporting the invoice.
  2. Compare invoice quantities, prices, and terms with those indicated on the purchase order.
  3. Compare invoice quantities with those indicated on the receiving report
  4. Check accuracy of calculations.
  5. Destroy extra copies of invoice to prevent duplicate payments.
  6. Stamp paid on file copy of invoice to prevent duplicate payments.

J. Check Writing Schedule

  1. Mondays, Wednesdays, and Fridays - Checks are printed in AP. (Check write days may change due to special circumstances such as month-end close, holidays, etc.)
  2. Tuesdays, Thursdays, and Mondays
    • a. Funds are requisitioned from the Office of State Controller (OSC) prior to 11:00 AM.
    • b. OSC approves FSU's available cash at 2:00 PM or depending on circumstances, the approval could be later than 2:00 PM. Regardless of time, AP cannot release checks to vendors or employees until OSC approves that cash is available.
    • c. Checks to be picked up will be held for 10 business days.
    • d. Checks are usually mailed out by 2:30 PM depending on time of OSC approval.

K. Check Signing

  1. Signed checks must be delivered directly to the mailing facility, making the checks inaccessible to persons who requested, prepared, authorized, or recorded the checks.
  2. Check signing is limited only to authorized personnel.
  3. Unused checks are adequately controlled and safeguarded by placement in the Cashier's vault.
  4. Signing blank checks in advance is prohibited.
  5. Making checks out to "Cash" is prohibited.
  6. Signature plates are adequately controlled and separated physically from blank checks by keeping them locked in AP.
  7. All checks signed are properly accounted and controlled by recording check numbers in the Check Signing Log Book.

L. Voided Checks

Voided checks are properly accounted for and effectively cancelled by stamping void on checks and voiding checks in the AP System.

M. Disbursement Types

1. Invoices with Purchase Order

This disbursement type represents the majority of payments for goods and services, which includes utilities, processed by AP. All purchases for goods and services are initiated with a purchase requisition (on-line or manual) except for travel.

2. Travel

Travel includes travel advances, travel prepayments (registration/conference fees and airline tickets), and travel reimbursements.

For the above disbursement types, the below listed items are important for prompt processing and payment:

  1. Timely receipting must occur in the accounting system by Central Receiving.
  2. Invoices must be sent directly to AP.
  3. Invoices sent to campus departments must be forwarded to AP on a timely basis and before the due date.
  4. For items picked-up by campus departments, the invoice must be forwarded to AP on a timely basis and before the due date.


A. 1099 Miscellaneous Tax

FSU is accountable to the Internal Revenue Service (IRS) and the North Carolina Department of Revenue for payments made for services rendered by non-university personnel. The university is required to file a 1099-MISC form with the IRS (due February 28) and North Carolina Department of Revenue and payee (due January 31) for each vendor (payee) paid the following amounts:

  1. Rents of $600.00 or more;
  2. Royalties of $10.00 or more;
  3. Other income of $600.00 or more;
  4. Non-employee compensation of $600.00 or more; and/or
  5. Medical and health care benefits of $600.00 or more.

B. Sales Tax

Beginning July 1, 2004, all State entities (including FSU) will be exempt from sales tax on direct purchases of items, except electricity and telecommunications services per North Carolina Department of Revenue. FSU’s sales-tax exemption number is 400050.

202. Employee Personal Mail

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: General University Policies

Applies to: ● Administrators ● Faculty ●Staff

History: Approved - September 9, 2008
First Issued - July 31, 2008

Related Policies: University Mail Center

Contact for Info: Office of Business and Finance (910) 672-1151


The purpose of Fayetteville State University's (FSU) mail services is to support the educational mission of the university by delivering mail and related services to university employees and the student body in a timely, cost effective, and efficient manner. University Mail Services acts as the liaison with the U.S. Postal Service, United Parcel Service, Federal Express, DHL, and other private carriers of mail and packages, both domestic and international in the performance of official university related business.


All mail addressed to FSU becomes the property of the university upon acceptance by University Mail Services. University Mail Services exists for the preparation and distribution of materials, the content of which is to relate to the official business of the university. FSU's mail distribution services, per university policy and according to federal regulations, are not to be used for commercial or personal purposes and/or dissemination of statements on behalf of a political campaign or candidate. Official business materials are those dealing with some aspect of the university's operation that can be defined as being essential to the instructional, research, and community service programs and activities of the university as differentiated from private business or personal mail. Administrators, faculty and staff must have all personal mail and parcels directed to their home, or other non-university address. Personal or commercially related materials sent to the university in violation of this policy, i.e., personal items from commercial establishments, not specifically used in the course of university business, will be removed and/or returned to the sender. There will be no exceptions to this policy.


Each FSU department head or unit director is responsible, in accordance with operational policies for University Mail Services, for determining whether materials to be postage metered/addressed and/or distributed by University Mail Services relate to official business of the university. Mail processed through the University Mail Center is monitored for a valid FSU return address and a proper departmental fund/org code before expending FSU postage funds.

When questions occur concerning such determination, (i.e.,. personal bill payments, personal letters and/or packages) the matter will be referred to the next level of university administration (department head, dean or vice chancellor). This prohibition ensures that FSU postage funds are used for university business mail only.

Stamped personal mail will be handled by the University Mail Center according to standard U.S. Postal Service guidelines.

Note: A limited number of U.S. Postal Service boxes are available for personal rental on a yearly basis. Please contact the University Mail Services office at (910) 672-1123 for availability and current rates.

203. Fixed Assets

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: Business, Finance and Administrative Services

Applies to: ●Administrators ●Faculty ●Staff

History: Revised - September 1, 2017
Revised - July 1, 2009
First Issued - July 30, 2005

Related Policies/Regulations/Statutes: Purchasing

Contact for Info: Vice Chancellor for Business and Finance (910) 672-1151


As a public institution, Fayetteville State University (University) and its employees have a fiduciary responsibility to protect and safeguard all University assets and ensure they are used to carry out the University's instruction, research and public service missions. The use of University assets for private use or personal business activities is prohibited.

The University's investment in its fixed assets (land, buildings, fixed equipment, infrastructure, moveable equipment, intangible assets, etc.) is significant and thus this policy is established to ensure all the University's fixed assets are acquired, safeguarded, controlled, disposed and accounted for in accordance with state and federal regulations and applicable accounting pronouncements.

This policy also addresses ownership of the University's fixed assets, assignment of responsibility and accountability for fixed assets, and includes the definition of the capitalization thresholds for fixed assets. University (University) property. This policy applies to all employees of the University.


A. Capitalized Fixed Assets

A capitalized fixed asset is property such as equipment, buildings and land, with a cost or value equal to or greater than $5,000 at the date of acquisition and an expected useful life of more than two years. Capitalized fixed assets are acquired for use in normal operations and are not for resale. All capitalized fixed assets are entered into the Fixed Assets System for inventory and financial reporting purposes. Assets costing below $5,000 are expensed in the fiscal year of purchase. Costs incurred to keep a fixed asset in its normal operating condition that do not extend the original useful life of the asset or increase the asset's future service potential are not capitalized. These costs are expensed as repairs or maintenance. Fixed assets containing separate physical parts (such as CPU, monitor and keyboard) are not considered one asset having one or more component parts.

The following specifically applies to capitalized fixed assets:

  • The term capitalized fixed assets consists of land, improvements to land, easements, buildings, building improvements, vehicles, machinery, furniture, equipment, infrastructure and all other tangible or intangible assets that are used in operations and have a normal life expectancy of more than two years.
  • Library books and other library materials will not be capitalized or recorded on the Fixed Assets System.
  • The University does not capitalize its works of art/collections. Works of art/collections are maintained for public exhibition, education, or research purposes; protected, kept unencumbered, cared for and preserved; and required proceeds from their sale are to be used to acquire other collection items. Collections maintained in this manner are to be charged to operations at the time of purchase rather than be capitalized.
  • The University does not capitalize modular workstations or cubicle office installations because over time the panels can become damaged due to items being reconfigured or taken to different areas on campus.

B. Departmental Fixed Assets

1. Definition

The term departmental fixed assets refers to all tangible assets costing less than $5,000 and having an estimated useful life of more than two years. Tangible items include equipment and portable electronic devices. Examples include, but are not limited to the following:

  • Equipment: Equipment is defined as an asset that is not consumable or expendable; it is movable, even though sometimes it is attached to other objects or buildings. Equipment may fall into one of these categories:
    • Furniture - desks, cabinets, chairs, tables, and bookcases
    • Office - fax machines, telephones, and shredders
    • Electronic Data Processing (EDP) - computers, printers, and scanners
    • Educational - scientific, medical, laboratory and classroom, as well as recording studio and audiovisual
    • Other - athletic equipment, lawn mowers, etc.
  • Portable Electronic Devices: Portable Electronic Devices include IPads, tablets, voice recorders, laptop computers, digital cameras, projectors and other items especially susceptible to theft.

Departmental fixed assets are not entered into the Fixed Assets System. The cost of departmental fixed assets includes shipping charges, legal fees, setup costs, sales tax, etc. (when applicable) in addition to the purchase price, all of which must be less than $5,000.

2. Departmental Fixed Assets Inventory

Each department head is responsible for safeguarding all assets purchased for the department against theft or loss. The department must maintain its own database or spreadsheet of departmental fixed assets that tracks the old University tag number, asset description, serial number, building location, and room number, make and model of the item, IP address if known, date asset was placed in production, individual assigned the asset.

Each department head is responsible for designating a departmental employee to be responsible for the department's inventory, to include, but not be limited to tracking the department's fixed assets. That employee shall annually, on or before October 31st, submit a signed certification listing the departmental inventory to the department head. The employee will be required to annually attend mandatory training offered by the Division of Business and Finance.

Documentation related to the department's fixed assets, including signed certifications, shall be kept for a minimum of five (5) years.

3. Audits

Departmental fixed assets are subject to internal and external audits. Each year, the Internal Auditor shall audit a random selection of departments for compliance with this Policy.

C. Land and Land Improvements (Non-depreciable)

Acquired land is recorded at the purchase price plus additional costs such as legal and recording fees, surveying fees, damage payments, and land/site improvements that ready land for its intended use and produce permanent benefits. Examples of land/site improvements are excavation, fill and grading, removal, relocation, or reconstruction of property of others, such as railroads and telephone and power lines, and the construction of retaining walls. If land and building(s) are acquired as a single parcel, the value of the land shall be determined separately from the building(s) and recorded as land. Donated land or land that is obtained by means other than purchase is recorded at acquisition value. Land is entered on the Fixed Asset System if the total cost is $5,000 or more. Land valued below $5,000 is not entered into the Fixed Asset System but is expensed and tracked by the Fixed Asset Coordinator.

D. Buildings

Buildings are valued at the purchase price or construction cost. Costs shall include all charges applicable to the building (i.e., broker's fees, architect's fees, etc.) Permanently attached fixtures to the building (i.e., heating and ventilation systems) shall be included in the cost of the building. Buildings valued at $5,000 or above are capitalized and recorded on the Fixed Assets System. Donated buildings shall be capitalized at the acquisition value at the time of donation. After the Office of State Construction inspects a building, the University will receive a Letter of Acceptance from the Office of State Construction. After receipt of this letter and when the building is ready for occupancy, the building is considered complete.

E. Additions/Renovations/Improvements

An addition increases the physical size or operating capabilities of an asset through expansion or extension. An example of an addition is a new wing to a building or the addition of an air-conditioning system to a building.

Renovation and improvement costs are incurred to restore or improve existing buildings or other capitalized assets. These costs involve the substitution of old parts for new ones and increase the economic benefits to be derived from the asset. In order to capitalize an addition, renovation, or improvement cost, certain criteria must be met:

  1. The cost must equal or exceed the $5,000 capitalization threshold; and
  2. The renovation or improvement must either significantly extend the useful life of the original asset, or increase the future service potential of the asset.

If both of these criteria are met, the cost must be capitalized and recorded as a new asset in the Fixed Assets System at total purchase price or construction cost. Expenditures not meeting these criteria will be expensed.

F. Infrastructure

Infrastructure assets are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Land and land improvements must be capitalized separately from road system infrastructures. Road systems are designed for motor vehicle travel and should not be part of the State Department of Transportation (DOT) road system. Road costs shall include the costs of pavement, culverts, lighting systems, drainage systems, guardrails, markings, traffic control devices, signage, bridges, tunnels, and other buildings that are an ancillary part of the road system. Utility systems include, but are not limited to, water distribution systems, sanitary sewer collection systems, natural gas systems, electrical distribution systems, and telecommunication/fiber optics systems that are independent of a single building.

G. Lease Agreement

A lease is considered a capital lease if it meets any one of the following criteria:

  1. The lease transfers ownership of the property to the lessee by the end of the lease term.
  2. The lease contains an option to purchase the leased property at a bargain price.
  3. The lease term is equal to or greater than seventy-five percent (75%) of the estimated economic life of the leased property (e.g., lease term six (6) years, estimated life eight (8) years).
  4. The present value of rental and other minimum lease payments equals or exceeds ninety percent (90%) of the fair market value of the leased property less any investment tax credit retained by the lessor (e.g., future minimum lease payments $9,000, fair value $10,000).

Capital leases equal to or greater than $5,000 shall be capitalized in the Fixed Assets System.

H. Intangible Assets

Common types of intangible assets are computer software, easements, land use rights, patents, copyrights, and trademarks. Intangible assets with an estimated useful life of two or more years are capitalized if they meet the following thresholds: 1) Purchased or licensed computer software, easements, land use rights, patents, copyrights and trademarks are capitalized when the value or cost is $100,000 or greater, and 2) internally generated computer software is capitalized when the value or cost is $1,000,000 or greater. All other assets not meeting these thresholds are expensed in the year of purchase.

I. Fixed Assets Acquired through Grants

Fixed assets acquired with federal financial assistance are subject to property management standards set by the federal government. These standards are found in the Common Grants Management Rule (Common Rule) of revised OMB Circular A-102 (1997). Additional property standards may be included in the grant agreement. When the University does not hold title to property acquired with federal funds, the property shall not be capitalized. The property can be inventoried for tracking purposes. All inventoried assets acquired with federal funds must be flagged to ensure that federally funded assets will not be sold or transferred without following federal property disposition guidelines. When federally funded assets are no longer needed for the grant program, the University must dispose of the assets according to federal disposition guidelines.

J. Gifts/Donations

Gifts/donations are received from outside sources. If the gift/donation received meets the capitalization requirements (costing $5,000 or greater), they are recorded at acquisition value at the time of the donation.


A. Purpose of Tagging

Maintaining a positive identification of assets is the primary purpose of tagging. Tagging will also do the following:

  • Provide an accurate method of identifying individual assets;
  • Aid in the annual physical inventory;
  • Assist in controlling the location of all physical assets;
  • Aid in the maintenance of fixed assets; and
  • Provide a common ground of communication for both the Division of Business and Finance and the asset users.

B. Central Receiving

Only fixed assets costing $5,000 or more will be tagged at Central Receiving with a University tag. When the fixed asset is not received in Central Receiving, the department must notify the Fixed Assets Coordinator within five (5) business days so that the tagging process can be completed.

The role of Central Receiving is as follows:

  • To deliver all non-computer items to campus departments;
  • To attach a University tag with the corresponding unique number to each recorded fixed asset costing $5,000 or more;
  • To enter the corresponding unique number from the University tag into the procurement system.

C. New Computer Equipment

ITTS will contact Central Receiving daily to determine if any computer equipment has been received. Central Receiving will tag computer equipment and thereafter the ITTS staff will pick up all computer equipment from Central Receiving, sign documentation indicating pick-up by ITTS, load the necessary software(s) and notify the campus department via e-mail that computer equipment has been received and when delivery can be expected. ITTS will deliver computer equipment to the responsible campus department and complete an Equipment Transfer Form - FA-14 located on the Business and Finance webpage. A copy of the form shall be forwarded to the Fixed Assets Coordinator if the asset's cost is over $5,000. If the asset's cost is under $5,000 the department should keep a copy for their records and give a copy to the department receiving the item.


A physical inventory of capitalized assets is taken to verify the location of assets recorded in the Fixed Assets System. Inventories are taken at least annually and shall be completed prior to the financial reporting due date.

The Fixed Assets Coordinator will conduct a physical inventory of capitalized assets annually. The Fixed Assets Coordinator will require the cooperation of departmental personnel in accomplishing the physical inventory task and will attempt to minimize the demand on the employees' time. The Fixed Assets Coordinator will conduct the physical inventory process as follows:

A. The Fixed Assets Coordinator shall send inventory worksheets listing all capitalized assets to the department head, along with instructions on how to prepare properly for the physical inventory.

B. The department head or his/her designee shall locate all inventory worksheet items listed, update the inventory worksheet data, and return the information to the Fixed Assets Coordinator within ten (10) business days.

C. The Fixed Assets Coordinator will audit randomly completed capitalized Fixed Assets inventory worksheets. The Fixed Assets Coordinator shall arrange a date and time to meet with the department head or his/her designee in order to conduct the physical inventory. The department's designee shall be prepared to escort the Fixed Assets Coordinator to each item, to make arrangements for laptop computers to be brought to the office, and to have access to locked offices, classrooms, or labs.

D. Upon completion of the physical inventory, the Fixed Assets Coordinator will update the Fixed Assets System as needed and send a missing items schedule and a final inventory printout to the department.

It is recommended that a physical inventory of capitalized assets also be taken each time there is a change at a management or supervisory level having responsibility for the assets. The outgoing and incoming supervisor/manager shall sign the Physical Inventory Worksheets. The signatures indicate that the supervisor/manager is aware of the existence of the assets and where they are located and that the count is accurate.


A. Fixed Assets Located Off-Campus

Because equipment purchased by the University to further its educational mission and office space is provided to its faculty and staff, fixed assets should generally remain on campus. If it becomes necessary for equipment to be taken off campus, the department must fill out and sign the Agreement for Equipment Located Off-Campus Form-FA-16, located on the Business and Finance webpage. The employee taking the equipment must sign the agreement. Under no circumstances should anyone take a capital fixed asset off campus before it has been tagged. The department can request that an asset be tagged immediately by calling the Fixed Assets Coordinator. Removal of University equipment for off-campus use without University approval may result in the individual being charged with the misappropriation of state property and/or larceny.

As long as the fixed asset is located off-campus, the employee user and the department head must sign a new Form FA-16 during the physical inventory process each year. The confirmation must reaffirm that the original reason(s) the item was located off campus are still valid and that the department head continues to acknowledge his or her responsibility for the item.

B. Transfers Within the University

Prior to changing the assigned location of any fixed asset within the University or at an off-campus location, the Equipment Transfer Form (FA-14) must be completed.

The Surplus Property Officer shall inventory the item(s) and sign off on the Equipment Transfer Form. If Facilities Management personnel are required to move the equipment, a work order must be executed. Facilities Management personnel shall not move items without proper authorization. Following the move, the Equipment Transfer Form (FA-14) shall be forwarded to the Fixed Asset Coordinator who will then enter the location changes into the Fixed Assets System. A copy of this form shall be signed and returned to the department.

C. Transfers Between Other Universities and State Agencies

Assets are transferred when they are permanently moved from the University to another institution or state agency. If the asset move is temporary, then the transfer is treated as an asset on loan. No State department, institution, or agency shall transfer any property owned by the State between other State departments, institutions, or agencies without written authorization from the State Surplus Property Office. If assets are to be transferred due to legislative action, approval does not have to be obtained from the State Surplus PropertyAgency. The University's Equipment Transfer Form (FA-14) must be completed indicating the asset number, description, location, and the reason for the request. The form shall be approved by the department head and should be transmitted to the Surplus Property Coordinator.


A. Missing Assets

Fixed assets are considered missing when an inventory is taken and assets on the Physical Inventory Worksheet are not found. This can occur because an asset is moved to another location, but the new location is not recorded on the system before the Physical Inventory Worksheets are run, the asset could be lost, or the asset could be stolen.

If there are any missing asset(s) after completion of the physical inventory, the Missing Asset Report shall be completed by the person responsible for the asset. The form is routed through proper management levels as determined by each campus department for signatures. A fixed asset report listing missing assets from the Fixed Asset Coordinator shall be sent to the Vice Chancellor, Dean, or appropriate Division Head responsible for the unit where the asset is located. Upon receipt, the Vice Chancellor, Dean, or appropriate Division Head shall cause to be documented all efforts that were made to find the missing asset(s). If the asset(s) is found, it is noted on the printout and the status code changed.

After one year, if the asset is not found and not determined to be stolen, it shall be retired as a lost asset. The number of reviews of the missing asset listing (after the physical inventory and before the next year's physical inventory) is left to the Chancellor and/or Vice Chancellor of Business and Finance's discretion.

B. Stolen Assets

All incidences of lost or stolen University property should be reported to the University's Police for investigation. A copy of the incident report should be sent to the Fixed Assets Coordinator.

According to North Carolina law, if any state property has been stolen, the employee discovering the theft must report it to his/her supervisor. This is to be done as soon as possible, but no later than three (3) days from the day of discovery. The supervisor is then to notify his/her chain of command until the Legal Counsel and the University Police have been notified. The Legal Counsel must notify the State Bureau of Investigation (SBI) in writing within ten (10) days of being notified. The SBI may investigate or may allow the University Police to investigate. If the investigation reveals a violation of criminal laws, the district attorney will be contacted for further legal action. The fixed asset shall be retired on the Fixed Assets System with a retirement code. The General Ledger shall reflect an entry to reduce the fixed asset account.

C. Cannibalized Equipment

If equipment becomes irreparable, but certain parts or components can be used to maintain other similar pieces of equipment, the irreparable item can be cannibalized. The Fixed Assets coordinator should be notified of the irreparable or cannibalized asset, and also of the asset the cannibalized equipment will be used to support.

D. Replacement of Defective Equipment Under Warranty

If an asset becomes defective while under warranty and is replaced by the vendor, the following information shall be reported to the Fixed Assets Coordinator:

  • Vendor's name and return address
  • Purchase Order Number
  • Serial Number
  • Asset Tag Number for capitalized fixed assets
  • Contact the Fixed Assets Coordinator to remove the University tag

Once the equipment is replaced, the Fixed Assets Coordinator shall replace the original University tag for capitalized fixed assets.


Depreciation is the allocation of the total acquisition cost of a fixed asset over its estimated useful life. Land, certain land improvements, construction-in-progress, inexhaustible works of art, historical treasures and similar assets are not depreciated. The University uses the straight-line method of depreciation using the half-year convention method. Straight-line is a time-based method used when the service life of the asset is affected primarily by the passage of time. The estimated useful life of a depreciable asset is the period over which services are expected to be rendered by the asset. Straight-line depreciation is calculated by dividing total asset cost by estimated useful life in years, generally fifteen (15) to seventy-five (75) years for general infrastructure, fifty (50) to one hundred (100) years for buildings, and seven (7) to thirty (30) years for machinery and equipment. A review of the useful life of assets shall be conducted annually. Donated capital assets are valued at acquisition value at the date of acquisition.


A. Obsolete, Unserviceable, and Unnecessary Equipment and Furniture

Under no circumstance can State-owned equipment be sold, scrapped, donated, traded or given to another entity without the approval of the State Surplus Property Agency. State- owned equipment may not be disposed of outside of cannibalization by the department who has custody of the equipment without the prior approval of the State Surplus Property Agency.

Prior to transferring assets to surplus, the department head shall complete an Equipment Transfer Form (FA-14). After the completion of the form, the department shall contact the Surplus Property Coordinator. Before assets can be turned in for surplus, the Surplus Property Coordinator will inspect the asset. If necessary, the department will execute a work order for Facilities Management to move the surplus items. Departments are required to maintain a copy of the signed Equipment Transfer Form (FA-14) for the items turned in to surplus.

B. Hard Drive Erasure of Computer Equipment

The University is obligated and committed to the removal of confidential data and University owned and licensed software applications from obsolete computers sent to surplus property. This will ensure the University is maintaining data security and integrity while being compliant with the IRMC Enterprise Security Standard Number S003, Permanent Removal of Data from Electronic Media.

To ensure due diligence, the following process shall be followed:

  1. A department desiring to have a computer surplused should contact ITTS;
  2. ITTS shall pick up the computer(s) marked for surplus or salvage; and determine if the equipment is salvage or should be surplused;
  3. If determined to be salvage or surplus, ITTS shall completely erase the hard drive;
  4. ITTS shall attach a pre-printed label to each computer that indicates the hard drive has been erased; and
  5. ITTS shall submit a work order to Facilities Management requesting pick up of the computer(s) to be salvaged along with a completed and signed Equipment Transfer Form (FA-14).

C. Equipment Trade-Ins

On occasion, it is more economical to trade-in an asset than to sell it as surplus property. When bids for the purchase of a new item are requested and it appears a trade-in may be advantageous, the solicitation must contain a provision requesting that a trade-in allowance be offered and prior approvals by the Surplus Property Coordinator and State Surplus Property Office are required. After authorization is obtained, the asset removal procedure will begin by the Surplus Property Coordinator.

204. Leadership in Environmental and Energy Design (LEED)

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: Business, Finance and Other Administrative Services

Applies to: ●Administrators ●Staff

History: Approved - March 3, 2012

Related Policies: Sustainability
Sustainability Policy [UNC Policy #600.6.1]
Sustainable and Green Building Practices [North Carolina Department of Environment and Natural Resource]

Contact for Info: Associate Vice Chancellor for Facilities (910) 672-1433
Sustainability Officer (910)-672-1431


Fayetteville State University (University) is committed to being a good environmental steward and proactive manager of energy, water and other natural resources within the University's control. The University has made sustainability a core value of institutional operations, planning, capital construction and purchasing practices. Sustainability has also been incorporated into the University's Strategic Plan. The purpose of this Policy is to provide guidance concerning "green" building standards that will be utilized when new facilities are being constructed or major renovations are made to existing University facilities.


It is the intent of the University to construct "green" buildings that promote healthful, durable, affordable, and environmentally sound practices in building design and construction. To accomplish this, the University has adopted this Policy to ensure that all new buildings, as well as major renovations, are capable of being Leadership in Environmental and Energy Design (LEED) certified or a similar equivalency. LEED is an international recognized green building certification system developed by the U.S. Green Building Council. Buildings may be LEED certified after there is third party verification that the building is designed and built to specified standards in order to conserve energy and water, reduce greenhouse gas emissions and provide a healthy indoor environment.

Buildings that achieve LEED certification are awarded Certified, Silver, Gold, or Platinum certification depending on the number of credits earned. LEED buildings are assessed in six performance areas:

  • Sustainable sites (e.g. reducing stormwater run-off, and using trees to create shade)
  • Water efficiency (e.g. innovative ways to reduce water use)
  • Energy (e.g. using renewable energy and optimizing energy efficiency)
  • Materials and resources (e.g. using certified wood and recycled materials)
  • Indoor environmental quality (e.g. using low emitting materials)
  • Innovation (innovation in design)
  • Regional Priority (e.g., benefit to the University's local and regional area)

The University shall attempt to obtain no less than a silver certification for its newly constructed or renovated buildings.


University units whose responsibilities include planning, designing, constructing or renovating University facilities shall be responsible for ensuring adherence to this Policy.

205. Procurement Cards

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: Business, Finance and Administrative Services

Applies to: ● Administrators ● Faculty ●Staff

History: Revised - June 1, 2016
Approved - July 1, 2015

Related Policies: Purchasing Policies and Procedures [FSU]

Contact for Info: Procurement Card Administrator (910) 672-1199
Purchasing Director (910) 672-1086


Fayetteville State University's (University) Procurement Card (P-Card) is designed to improve efficiency in processing repetitive, low dollar purchases. The P-Card is a Corporate Visa Card, issued to Fayetteville State University, which is to be used for allowable University business purposes. This policy provides information and guidance to members of the University community on the usage of the P-Card.


The P-Card is essentially a standard Visa card in which the liability rests with the University instead of the individual Cardholder. The P-Card cannot be used for University travel related expenses, unless authorized by the Division of Business and Finance, and under no circumstances can the P-Card be used for personal purchases.

The P-Card is issued to an employee to allow the employee to purchase allowable goods and services on behalf of the University within set spending limits. An employee in possession of a P-Card is responsible for the safeguarding of the P-Card against fraud and misuse. Any fraud or misuse resulting from an employee's use or possession of the P-Card will subject the employee to disciplinary action.


P-Cards may be issued to an employee who is authorized by the University to purchase goods and services. To apply for a P-Card, the Enrollment Application and the Memorandum of Understanding and Agreement Form must be completed and returned to the University's Procurement Card Coordinator. These forms are accessible on the Purchasing Department's website.

Issued P-Cards will have the University's and the Cardholder's name on the front of the P-Card. The Cardholder shall be the only individual authorized to make purchases using the P-Card.

Giving a P-Card or P-Card number to any individual or using a P-Card not assigned to the individual may result in the revocation of P-card privileges and disciplinary action. It is highly recommended that the P-Card be kept in a secure place.

Prior to the issuance of a P-Card, all Cardholders, Unit Hea ds , and Departmental Reconcilers shall attend training sessions offered by the Division of Business and Finance.

P-Cards have a three (3) year expiration date. Employees whose P-Cards are set to expire will received a new P-Cards prior to the expiration date of the current P-Cards. Before the issuance of a new P-Card, the P-Cardholder will be required to attend a training session offered by the Division of Business and Finance.


A. Limitation on the Amount of Purchase

Limits on an employee's P-Card shall be established by the Division of Business and Finance based upon the needs of the department. However, standard limits are as follows:

  • Single transaction limit - $2,500.00
  • Daily Limit - $5,000.00
  • Monthly limit - $15,000.00

Employees desiring to purchase items exceeding $2,500.00 must receive approval from the University's Procurement Card Administrator.

B. Limitation on Type of Purchase

The University has blocked some Merchant Category Codes (MCCs) for Vendors who provide goods and services not allowed on the P-Card such as travel and entertainment, alcoholic beverages, gambling, etc. The P-Card will be declined if presented to a type of Vendor that falls under a blocked MCC. If a transaction is made pertaining to a non-allowable purchase without prior authorization, the P-Card will be suspended and the account will be subject to closure.

C. Purchasing from a Non-Approved Vendor

It is the Cardholder's responsibility to insure purchases are only from legitimate Vendors. If there are any questions regarding the legitimacy of a Vendor or individual, the Purchasing Department should be contacted. The P-Card number should not be provided to a questionable Vendor.


The Cardholder is responsible for purchases made that commit the University. Thus, the Cardholder shall be held responsible for ensuring that the purchase and the Vendor are legitimate and that the amount of the purchase does not exceed the limits outlined above. In addition, the Cardholder is responsible for the following:

A. Verification of Purchases and Itemized Receipts

The Cardholder shall be responsible for verifying that the total amount of the purchase (including shipping, handling, postage, freight, insurance, etc.) does not exceed approved P- Card spending limits.

The Cardholder shall be responsible for ensuring that a receipt for the purchase is received and that the business purpose is written on the receipt.

B. Changes to Cardholder's Information

The Cardholder is responsible for ensuring that the Purchasing Department is aware of any changes in the Cardholder's personal information (address, telephone number, project/grant, etc.). Any changes shall be immediately emailed to the P-Card Administrator.

C. P-Card Surrender

P-Cards remain the property of the University and must be surrendered immediately upon termination of Cardholder's employment, transfer of Cardholder to another University unit or upon the request of a Supervisor or the Director of Purchasing.

D. Reconciliation

It is the responsibility of the Cardholder or the Cardholder's designated reconciler to ensure that the Cardholder's transactions are reconciled and approved in the card management system within seven (7) days of the date the billing cycle ends, unless the seventh (7th) day falls on a Friday, Weekend, or Holiday (due the prior business day). The Purchasing Department will post a P-Card Transaction Deadline Schedule each year for reference. Items not approved in the card management system by the deadline will be charged to the Cardholder's default FOAP (Fund, Organization, Account, and Program).

After the approvals have been completed in the card management system, the Cardholder's Reconciler or Approver must ensure that the monthly P-Card Reconciliation Packet is submitted to the Purchasing Department by the fifth (5th) of the month following the end of the billing cycle. The packet should include the following:

  • Transaction log
  • Bank Statement; and
  • Itemized Receipts; and/or
  • Invoices and packing slips

Any packet which has not been submitted by the due date will result in the suspension of the P-Card until the reconciliation packet is received. A second occurrence will result in the suspension remaining in effect for four (4) weeks from the date the transaction logs are received in Purchasing and will also require a memo from the Department Head before the suspension is lifted. A third occurrence will result in the same actions as the second occurrence, plus the Cardholder and Reconciler must re-attend training before the suspension is lifted.

E. Inactive Accounts

To protect the security of the program, any P-Card that has not been used for six (6) months will automatically be suspended. To reactivate a P-Card the Cardholder must either contact the University's P-Card Administrator or call the number found on the back of the P-Card.


Purchases appearing on the monthly statement from the bank may be disputed up to thirty (30) days from the date of the statement.

If a dispute arises, the Cardholder should contact the Vendor for information regarding the disputed charge. If the Cardholder is unable to remedy a dispute with a Vendor, the Cardholder should contact the University's P-Card Administrator for assistance.

The Cardholder may complete the on-line transaction dispute form and contact the bank's customer service department. The bank may issue a credit if it is found that the charge is not valid.


Cardholders who consistently abuse P-Card privileges (i.e., personal purchases, authorizes others to use the card) or violate a University policy will automatically have the rights to use the card suspended. Additionally, the Cardholder may be subject to disciplinary action.

P-Card privileges may be suspended upon a first violation. Subsequent violations may result in a suspension ranging from four (4) weeks to a permanent revocation of the P-Card privileges. Permanent revocation shall result in cancellation of the P-Card and associated account.


If a card is suspended, a Unit Head may request that a review be conducted by the University's P-Card Administrator to determine if the P-Card should be reinstated. To request a review, the Unit Head should submit the following documentation to the University's P-Card Administrator:

  • A memorandum providing an explanation as to why there was a violation of a University policy or consistent abuse of the P-Card; and
  • An outline of steps that will be implemented to prevent any future abuse or violation of University policy.
206. University Mail Center

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Authority: Issued by the Chancellor. Changes or exceptions to administrative policies issued by the Chancellor may only be made by the Chancellor.

Category: Business, Finance and Administrative Services

Applies to: ●Faculty ●Staff ●Students

History: Revised - December 7, 2010
First Issued - December 4, 2003

Related Policies: United States Postal Service Guidelines

Contact for Information: Mail Center Manager (910) 672-1123


The Fayetteville State University Mail Center collects, distributes, and processes the university's intra-campus, and U.S. mailings related to the university's official business. Official mail includes correspondence that pertains to the university's operations and is essential to the activities of the institution.

The FSU Mail Center is organized as a self-supporting unit with revenue generated from the rental of mailbox units. The university prohibits the use of the Mail Center for personal and/or private gain of employees, for the advertisement of programs by non- university groups, and for endorsements by political entities.


A. Non - Mailable Items

Some items such as metal pieces, glass parts, product samples, chemicals, etc., may not be mailed. These items, besides jamming and/or damaging mailing machines, can cause serious injury to Mailroom employees. These articles may be returned to sender.

B. Non - Standard Mail

Envelopes and post cards of less than 3 1/2" in height or 5" in length or .007 in thickness are considered non-standard and additional charges are levied towards their postage. For more information regarding standard sizes, please contact the FSU Mail Center; we will be glad to provide you with more detailed information.

C. Sizes and Types of Envelopes

The proper size and strength of an envelope should be determined in accordance with the size of the enclosure. Overly large envelopes fail to firmly hold their contents. The enclosures tend to move around and there is a risk of tearing the envelope and losing the contents. A snug fit keeps the enclosure firm in the envelope.

Overstuffing can cause an envelope to burst at the seams and may lead to loss of enclosures.

The size of the envelope should be selected to properly accommodate the contents. For the USPS, the two main categories of envelopes are "letter size" and "flats". Flats are envelopes larger than the maximum letter size, but no larger than 12" high by 15" long and 3/4" thick.

D. Proper Addressing

The complete mailing address should be located within the lower right half of the envelope whenever possible. Extraneous printing or markings should appear as far away from the address as possible. The sender's address should appear in the upper left-hand corner and should be no lower than 1/3 of height of mail-piece from top.

The following SUGGESTIONS will help make the mail that is being sent user friendly to the USPS and speed up delivery:

  • type or machine-print complete address
  • ensure print is clear and sharp
  • use standard business fonts. address characters should not touch or overlap
  • print addresses in 10 or 12 point type
  • black ink on a white background is best
  • maintain a uniform left margin
  • use upper-case letters
  • omit all punctuation
  • include floor, suite and apartment numbers
  • include name of city, state and zip code in that order on the same line
  • use standard two - letter state abbreviations
  • for international mail print the country's name in capital letters without abbreviations
  • if using window envelopes, ensure that the entire address is always visible

Address labels, if used on parcels, packages, letters or large envelopes, must also be addressed according to the above-recommended format. Labels must be applied parallel to the bottom edge of the envelope to be processed by the USPS on automation equipment.


A. Delivery and Pickup

The FSU Mail Center has scheduled runs for pickup and delivery of USPS throughout the university campus. If the department's out-going mail is not ready by the scheduled pickup time for the department, the department's staff must bring it to the FSU Mail Center by 3:30 p.m. for same day processing. Mail received after the 3:30 p.m. deadline will be processed for next day delivery to the main Post Office.

B. Incoming Mail

Incoming USPS mail from the Post Office arrives to the FSU Mail Center at 9:30 a.m. daily. The mail is sorted and delivered throughout the university according to daily scheduled runs.

C. Outgoing Mail

Outgoing mail is picked up from university departments at the same time the incoming mail is delivered, unless other arrangements have been made. Departments are to separate International Mail, First Class Domestic Mail, and Mail Requiring Special Attention. The different categories of mail should be put in separate trays or bundled together and marked accordingly. All outgoing mail should have the department's return address on the envelope.

D. Metered Mail

All mail to be metered shall be charged to the initiating department's account. Departments are responsible for ensuring that the FSU Mail Center is provided with the correct departmental account number to be charged for all outgoing mail. A postage meter form with authorized signatures must be completed. The FSU Mail Center will not process outgoing mail without an account number for services to be billed.

Mail that requires metering should be presented to the FSU Mail Center pre- sealed, in a stack form, and placed together with a rubber band around it. The FSU Mail Center is authorized to meter mail for all university correspondences reflecting a FSU return address. Mail lacking this address will not be metered.

E. Preparation of Outgoing Mail

Self-stamped mail should be separated from mail to be metered. All letters should be bundled neatly with rubber bands and should be facing the same way. International Mail, to include Canada and Mexico, and mail requiring Special Handling such as "Certified and Insured" mail must be separated and marked with clear instructions.

F. Forwarding of Mail

The FSU Mail Center does not forward mail. Individuals are responsible for notifying correspondents of their change of address. If mail is received for individuals who are no longer with a department, the FSU address should be completely crossed out and the forwarding address should be shown under the words: "Please Forward". If there is no forwarding address, cross out the FSU address and BARCODE completely and mark the envelope: Return to Sender, No Forwarding Address. Place these envelopes with the regular mail for pick up. If unwanted mail is received, do not open it. Cross-out the FSU address completely along with the bar-coding at the bottom of the address and mark the envelope: Refused, Return to Sender.

G. Accountable Mail

Express Mail, Certified Mail, Insured Mail and Registered Mail comprise the accountable mail category. This mail is tracked and accounted for throughout the mail system. The FSU Mail Center assumes responsibility for this mail when it is received behalf of an employee's or student's behalf. This responsibility is discharged only when the recipient or department designee properly signs the item. To ensure proof and record of receipt, the recipient will be asked to print his/her name legibly and sign and date the Accountable Mail Manifest.

Every effort will be made to deliver this mail as it arrives on the next scheduled run. Express Mail received after the scheduled run for a department has been made, will be delivered on the same day upon the availability of staff.

If a department is closed when the delivery is being made, or if there is no one available at the department to sign for receipt of mail, it will be returned to the mailroom and delivered on the next scheduled run.

H. Interoffice Mail

Interoffice mail is mail/correspondence sent out by FSU departments for delivery to addresses within the university system. All mail must be official university business. This mail can be a non-specific memo for general distribution, or items addressed to a specific individual, or position within the university. Specific address mail, if not in an envelope, should be folded and marked with the individual's name, or title and department.

Interoffice mail envelopes should be used for interoffice mail. If stationary envelopes are used for interoffice mail, please ensure that interoffice mail is printed prominently on the envelope. All personal correspondences to anyone within the university system require appropriate U.S. postage.

I. Change of Address

If a new member is added to a department, or if a faculty or staff member changes departments or buildings, a change of address notice should be forwarded to the FSU Mail Center in the form of a memo, so that future mail may be delivered accordingly.


A. Priority Mail

First class mail that weighs more than 11 ounces and not more than 70 pounds and at the option of the mailer, any other mailable material weighing 13 ounces or less may be sent via Priority Mail.

Priority Mail can be sent to all fifty states and Puerto Rico. This service has a two to three day delivery objective (not guaranteed) to large metropolitan areas within the United States.

Priority Mail envelopes and labels must be used when using this service.

B. Express Mail

Express Mail is an extremely reliable and fast delivery service available from the U.S. Postal Service. This service is available for all major zones in the US and a number of foreign countries.

Express mail is picked up from the FSU Mail Center by the Postal Service. In order to meet the deadlines, express mail should be received no later than 3:30 PM for next day delivery service.

Express mail labels (which must accompany the shipment) and large express envelopes can be obtained in advance by calling the FSU Mail Center.

It is the responsibility of the sending department to complete the "ship to" and "from" address blocks located on the bottom portion of the express label. After completion, the mail may be placed in the department's outbound mail, or it may be taken to the FSU Mail Center. The USPS will send a copy of the express label back to the originating department. The patch (Express Mail ID Number) from the back page should be removed. This is the means for tracking the mail.

C. Insured Mail

Insurance up to $500.00 can be obtained for materials that are sent within the United States, 1st class, 3rd class and parcel post. If items are being sent that are valued at more than $500.00, registered mail should be used; insurance is available up to $25,000.00.

D. Certified Mail

Certified mail should be used when proof of mailing is required. This service is available only when sending an item 1st class within the United States.

A return receipt indicating the date of delivery and signature can be requested for an additional fee. A receipt of the mailing, which is detached from the label and has the official postal postmark, is the official record of the mailing and should be retained by the sender. Labels and return receipts can be obtained from the FSU Mail Center

E. Registered Mail

Registered mail service is available with, or without postal insurance. Items without provable value do not require insurance. The registered mail system is designed to provide added protection for valuable mail. Postage insurance may be purchased to cover articles valued up to $25,000.00. Registered mail is the highest security mail the U.S. Postal Service offers. It incorporates a system of receipts to monitor registered articles from the point of acceptance to delivery. Return receipt and restricted delivery services are available for additional fees. Added security measures may, however, delay the delivery by 24 - 48 hours.

F. Return Receipts

A return receipt offers proof of delivery. This is an optional service and is available for insured, certified registered and domestic express mail shipments. The return receipt identifies the article number of the mailing, the person who signed the receipt for the letter, and the date of delivery to the addressee. It is not necessary to use return receipts with all certified or registered mailings. Be sure to identify the department on the address portion of the return receipts so that it can be routed them back to the original sender.


Business Reply Mail is a service by which correctly formatted mail can be forwarded back to the original sender, free of cost to the party responding. All fees are assessed to the permit holder for actual mail received, and thereafter internally charged to the initiating department. Business Reply Mail should be used for mailings over 500 pieces in a single mailing or over a year.

For example, if 1,000 stamped envelopes are sent out and 500 are returned, postage has been paid on 1,000 pieces. If this mail is sent out as Business Reply Mail, only the pieces that are mailed back to the sender must be paid for. Various postal fees have been paid in order for the University to gain maximum discounts if the business reply envelope or postcard format is correctly prepared. A correct format includes a valid nine digit ZIP, FIM markings and bar code reflecting the ZIP, as well as an acceptable address and placement of the address. In order to verify that a valid number is being used, as well as following the other requirements, it is necessary that the sender review the information with the FSU Mail Center before presenting the sender's order to the printer.

Failure to follow these guidelines could result in penalty fees from the USPS.


Postage due mail is handled and accepted by the FSU Mail Center for all university departments and currently enrolled students.

A university prepaid account is registered with the USPS to facilitate charges for inbound mail that either lacks the proper amount of postage, or mail that has been requested for return. When doing a large mailing (over 200 pieces), ensure that the mailing list is current; otherwise postage has been paid for undeliverable mail and a postage fee has been paid for returned mail.


Standard mail describes a service that has no promised delivery standards, but is usually delivered within a week to two weeks within the continental United States, and usually not more than five (5) days within a radius of 500 hundred miles.

The university has a permit with the Main Post Office in Fayetteville, NC (Green Street Branch) for the preparation of bulk mailings. This provides the university with the ability to process large mailings at a cost of about 1/3 that of 1st class mailings. University departments as well as recognized student and/or faculty organizations can use the bulk permit cannot be used for international mailings.

All forms and mailing materials needed for bulk mailing preparation should be obtained from the Main Post Office. Individuals not familiar with bulk mail preparation should sign up for training classes conducted by USPS Personnel. (Please contact the FSU Mail Center or the Main Post Office for scheduling and sign up for classes).

In order to take advantage of aforementioned savings, the following is required by the Main Post Office:

  • Minimum 200 pieces
  • All pieces must be the same size and weight
  • Pieces must be less than 16 oz.
  • Must be SEALED - cannot use staples to seal
  • The return address must state on the top line the permit holder's name, "FAYETTEVILLE STATE UNIVERSITY"
  • Must have indicia (permit number included) in the upper right hand corner of the envelope in place of postage, per example:
    • Non-Profit Organization
      U.S. Postage Paid
      Permit No. 123
      Fayetteville, North Carolina 28301

An authorization form MUST be obtained from the Main Post Office before you mail under the University Permit Number. The Main Post Office Bulk Mail Acceptance Unit will not accept your mailing without the form.