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.
• Accommodates weekend and evening transactions.
• Increases the vendor database to include suppliers that do not accept Purchase Orders.
• 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, Controller and Chief Financial Officer.

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, Controller and Chief Financial Officer
• 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 procure@drew.edu. Final determination of credit card issuance rests with the Controller. Upon issuance, the credit card will be sent by Bank of America directly to Procurement, who will notify the cardholder to collect it from the Procurement Office.

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 the card and the employee being held personally responsible.

All cards will default to a transactional and monthly credit limit of $5,000 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 certificate is available upon request.
• Request all paperwork supporting the transaction be sent directly to you.
• You should allocate all transactions in the BOA Works Application.  Receipts must be uploaded for all transactions $25 and above..
• 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 listed below:

• Cash Advances
• Furniture
• Food or beverages (unless specifically authorized)
• Travel & Entertainment Expenses (unless specifically authorized)
• 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
• Any item or service normally provided by a University department such as Facilities, Communications, University Technology, etc.
• Products from vendors who solicits sales by telephone.
• Partial payments for goods or services valued over the card transaction limit.
• Payments for transactions which should be covered by a Drew Purchase Order.
• Continuing services such as subscriptions, unless no other form of payment is accepted.

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 or through Bank of America Works
• Program Administrator at 973-408-3293.

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 destroyed.

In the event of any discrepancy appearing on the cardholder’s statement to their records, 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 in Bank of America Works, and the Program Administrator notified.  The Program Administrator will have the card immediately cancelled and a new card will be issued promptly.

Cardholders are strongly encouraged to register their card upon issuance of their card to obtain a username and password. This will facilitate transaction review and receipt upload on a real-time basis.

All cardholders are required to allocate the FOAP and upload receipts through Bank of America Works on a transaction-by-transaction basis so that signoff is possible on receipt of the monthly statement. Allocated transactions with supporting documentation (receipts are required for transactions $25 and above) must be submitted to their supervisor for review and approval through the system workflow prior to submission to the Program Administrator.

Failure to allocate and upload receipts within 5 business days of month-end will automatically inactivate the individual’s card.  It will not be activated until the transactions have been allocated and the receipts submitted. For illustration purposes:

Statement ending June 30 = credit card reconciliation due five (5) business days after statement ending.

It is the responsibility of the cardholder to ensure the transactions are allocated and supporting documentation uploaded and routed appropriately and timely.  If 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.  Transactions are not considered submitted until received by the Program Administrator.

Related Links:

How to Reconcile Transactions:

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How to Approve Transactions:

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• Under the direction of the Director of Procurement, 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 shared with the Director of Procurement, Controller, Chief Financial Officer, President and the Board as necessitated.
• Purchases which have not been documented, 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 and possible termination of employment.