Credit Card Policies and Procedures

• Provides a quick and easy method to purchase required items.
• Reduces paperwork required for purchase and payment.
• Provides end users with increased autonomy.
• Allows weekend and evening transactions.
• Increases the vendor database to include suppliers which do not accept purchase orders.
• Eliminates the need for prepayment with order.
• Facilitates International Transactions.

Benefits to the University

• Reduces the volume of purchase orders, invoices and checks.
• Provides prompt payment which results in improved supplier relations.
• Enables Purchasing personnel to concentrate on higher value-added activities

Credit cards will only be issued for the purposes of purchasing goods and services essential for departmental operations. Credit cards will no longer be issued for the purposes of travel and entertainment with the exception being a cohort of pre-determined areas where frequent travel is necessary. Final determination of credit card issuance rests with the Director of Procurement Services, Assistant Vice President of Financial Planning and University Budgeting and the Vice President for Finance & Administration.

Further restrictions on credit card issuance are as follows:

• Cards will only be issued in individual name. Cards issued in a department’s name will not be allowed.
• No individual will be issued more than 1 credit card
• The total number of cards issued to any one department shall be kept to a minimum and at the determination of the Director of Procurement Services, Assistant Vice President of Financial Planning and University Budgeting and Vice President for Finance & Administration
• Cards will not be issued unless a budget has been established and adequate funds exist at time of issuance.
• New cards must be requested using the Credit Card application and signed by the applicable supervisor.

It is recommended the chair/director delegate a single individual that serves in a central administrative capacity for the department to serve as a cardholder for their department and the chair/director serve as that approving authority.

Employees deemed eligible for a Drew University Credit Card are required to complete a credit card application. The application must be approved by the employee’s supervisor and then forwarded to Procurement Services. Final determination of credit card issuance rests with the Office of the Chief Financial Officer. Upon issuance, the credit card will be sent by Bank of America directly to the cardholder.

The intended use of the card is for official Drew University business only in the purchase of goods and services to meet the operational needs of the department. Usage of the card for other than its intended purpose may result in revoking of the card and the employee being held personally responsible.

All cards will default to a transactional and monthly credit limit of $2,500 per purchase and per month. Alternate limits may be established in special cases and with appropriate justification.

Each card is preset with restrictions on type of vendor. Any vendor accepting a VISA card has been assigned a Merchant Category Code (MCC) from VISA. Those vendors with an MCC classified as Travel/Entertainment (i.e. hotels, restaurants, etc.) and Fleet (gas stations, etc.) will be restricted, excepted those issued cards specifically setup for this purpose. Any transaction attempted with a vendor whom has an assigned MCC in these categories will automatically decline.

Every card is linked to a default Banner fund/org as indicated and determined on the cardholder’s application. However, cardholders may designate by transaction on their monthly expense report how to allocate each transaction, thereby eliminating the need for frequent reclass journal entries.

Any requests to any change to a card – including transactional limit, credit limit, or vendor restrictions – must be requested via email to the Program administrator with their supervisor copied on the request and have valid justification. Only the Program administrator can effect changes to any credit card.

It is the responsibility of the cardholder’s supervisor to report to the Program Administrator when an employee retires or separates from the University.

USING YOUR PROCUREMENT CARD

• Purchases may be made in person, through the Internet or by telephone. Be sure to use caution whenever giving card information to an Internet supplier. Purchases should only be made from websites that are secure.
• It is the cardholder’s responsibility to ensure that purchases are made within the limits of the department budget and within Drew’s Purchasing requirements.
• The monthly cycle for Credit Card activity ends on the last day of the month.
• Advise the supplier that Drew University holds a New Jersey Sales Tax Exemption (22-1487164). A copy of Drew’s tax exempt certificates are available upon request.
• Request that all paperwork supporting the transaction be sent directly to you.
• Maintain a Reconciliation Log. You should make an entry immediately after each use of your card to include transaction date, vendor, amount, and description of items purchased. Your receipts must be kept with your log. Reconciliation Log template.
• NEVER give any information concerning your card to anyone who calls or sends you an email.

RESTRICTIONS CONCERNING USE

The Credit Card is for Drew University business use only. Use of this card for personal purchases, even if there is an intent to reimburse, is a violation of University Fiscal Policy. Violation of this policy may result in disciplinary action including termination of employment.

The Credit Card may not be used for any transaction type listed below:

• Cash Advances
• Furniture
• Food or beverages
• Travel & Entertainment Expenses
• Fleet (rental cars, fuel, etc.)
• Gifts Flowers, Gifts, Cards – Individuals or individual departments may not use University funds to provide flowers, gifts or cards for employees, family members, associates or friends.
• Separation – employee retirement or departure
• Holiday functions, including meals, social activities, decorations and supplies
• Social events
• Birthdays/Weddings/Baby celebrations
• Expenses for university wide social events, meals or entertainment without the prior approval of the President, the board of the staff organization, or Vice President of Student Life.
• Charitable – The authority to use University funds for charitable contributions shall rest in the President’s Office. Individuals or departments may not make donations utilizing University funding.
• Gratuities
• Personal purchases
• Purchase of Gift cards, gift certificates or Drew dollars for any individuals’ ID – faculty, staff, or students included
• The Credit Card may not be used to purchase any item or service which is normally provided by a University department such as Facilities, Telecom, University Technology, etc.
• Do not use your card to purchase any product from a vendor who solicits sales by telephone.
• The Credit Card may not be used to make partial payments for goods or services valued over your card transaction limit.
• The Credit Card may not be used to make payments for a transaction which was originally covered by a Drew purchase order.
• Do not use the card for continuing services such as subscriptions.

CARD SECURITY

Immediately upon receipt of a card, the cardholder must sign the back of the card. It is the cardholder’s responsibility to safeguard the card and account number. Cardholders must not allow anyone to use his/her card or account number. If a card is lost or stolen, the cardholder shall immediately notify the following:

• Bank of America at 888-449-2273
• Program Administrator at 973-408-3309.

The lost/stolen card will immediately be cancelled and a new card will be issued promptly to the cardholder after the reported loss or theft. A card that is subsequently found by the cardholder after being reported lost or stolen must be cut in half and forwarded to the Program Administrator.

In the event of any discrepancy appearing on the cardholder’s statement to their records (transaction log & receipts), cardholders should first contact the merchant directly to resolve the issue.

If the card has been deemed to have been used without the cardholder’s authorization, this is considered fraud must be reported to the Program Administrator immediately. Cardholders have 45 days from the date the transaction was made to report. The Program Administrator will contact the card issuer to have the card immediately cancelled and a new card will be issued promptly.

All cardholders are required to submit a reconciliation through Bank of America Works upon receipt of their monthly statement. It must be submitted to their supervisor for review and approval through the system workflow prior to submission to the Program Administrator. Included backup should be copies of itemized receipts for every transaction, all of which can be submitted electronically via email.

Failure to submit a reconciliation report for their statement by the last day of the following month will automatically inactivate the individual’s card by the system rendering it unusable. It will not be activated until the expense reports have been submitted and up to date. For illustration purposes:

Statement ending June 30 = credit card reconciliation due ten (10) business days after statement ending.

Cardholders have the ability to designate applicable fund/org by transaction on their monthly reconciliation report. It’s the responsibility of the cardholder to ensure the reconciliation report is routed appropriately and timely. If/when multiple funding sources are indicated, the cardholder is responsible to obtain the review and approval (signatures) of all those individuals whom have budgetary control over each indicated funds/org. A reconciliation report is not considered submitted until it is received by the Program Administrator (Finance).

Cardholders are strongly encouraged to register their card upon issuance of their card to obtain a username and password. Cardholders are also able to review their transactions as they occur at any time they wish through this website.

Related Links:

How to Reconcile Transactions:

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How to Approve Transactions:

ManagingTransactions_Approver_QRG_APJ81

• Under the direction of the Director of Procurement Services, the Program Administrator will audit all credit card reconciliations on a monthly basis to ensure that cardholders are maintaining adequate records and abiding by the provisions of this policy.
• Periodic audits will be conducted by an external audit firm and results be shared with the Director of Procurement Services, Vice President for Finance & Administration, President and the Board as necessitated.
• Purchases which have not been documented on a properly-completed credit card reconciliation report, including receipts and appropriate approvals, shall be considered personal purchases and a violation of University policy.
• Violations of this policy shall result in suspension of Purchasing Card privileges