Financial and Business

UD Credit Card

Section:	Financial & Business Policies
Policy Name:	UD Credit Card
Policy Owner:	Executive Vice President
Responsible University Office:	Office of the Vice President For Finance and Deputy Treasurer
Origination Date:	October, 2000
Revisions:	July 1, 2005; April 6, 2009; December 2010; August 13, 2015; June 13, 2017
Legacy Policy Number:	5-22

SCOPE OF POLICYThis policy sets forth guidelines and procedures for the University of Delaware Credit Card Program (the Program) which encompass the UD Credit Card and the UD Declining Balance Card.These policies are applicable to all UD Credit Cardholders and articulate the overall Card Administration including requirements for receiving a credit card, appropriate card usage, and responsibilities and roles pertaining to approval as well as allocation of usage, fraud, cash advances, and reimbursement.
DEFINITIONS
1. Billing Statement – a listing of all transactions charged to the Cardholder’s UD Credit Card account up to the end of the monthly billing cycle. This statement is generated in Works by the Card Issuer, Cardholder, Proxy, or Card Administrator.
2. Bona Fide Business Purpose – defined by the Internal Revenue Service (IRS) as a provable real business need that requires that particular individual’s presence and services. Incidental services such as typing notes or assisting in entertaining are not enough to make the business purpose deductible.
3. Card Administrator – a University employee within each department responsible for verifying that all charges against the Cardholder’s account are backed up by Supporting Documentation and that the documentation is retained for a requisite amount of time. Cardholders may not be their own Card Administrators and a Card Administrator may oversee more than one Cardholder account depending on how the department elects to manage its accounts. A department may have more than one Card Administrator.
4. Card Issuer – the UD Credit Card is issued by a credit card company. The phone number for 24-hour customer service is on the back of the card.
5. Cardholder – University employee whose name appears on the UD Credit Card.
6. Cash Advance – a service provided by the credit card that allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency.
7. Default Purpose Code – the University non-grant/state funded purpose code assigned to an individual Cardholder’s UD Credit Card. Only one Default Purpose Code can be assigned to any one UD Credit Card and all charges made with the UD Credit Card will be posted into that Default Purpose Code unless those charges are reallocated.
8. Departmental Credit Card Purchasing Specialist – individual that has been designated by the business office and department to transact certain purchasing activities (travel, supplies, hosting, etc.) on behalf of the department.
9. Independent Reviewer – a University employee within each department responsible for sampling and testing UD Credit Card transactions to verify that they are appropriate and include Supporting Documentation. The Independent Reviewer must be in a position to objectively question any and all Cardholder purchases and reimbursements. A department may have more than one Independent Reviewer.
10. Merchant Commodity Code (MCC) Restrictions – UD Credit Cards can be configured to limit the types of goods and services the cardholder can purchase. The UD Credit Card can be configured as follows:
  1. Exclude Travel and Entertainment categories;
  2. Travel and Entertainment categories only;
  3. Include all goods and services categories including Travel and Entertainment.
11. Monthly Spending Limit – the total dollar limitation of purchasing authority assigned to the Cardholder for the total of all charges made during each monthly billing cycle.
12. One-Up Supervisory Approver – The Cardholder’s supervisor that reviews and approves all charges (based on the UD Human Resources Supervisory table).
13. Program Administrator – Procurement Services employee responsible for administering the Program for the University and acting as the main contact between the University and the merchant services provider or Card Issuer.
14. Proxy – individual designated by the Cardholder who performs all of the Cardholder’s administrative functions. The Proxy verifies the Cardholder’s UD Credit Card transactions in the online system.
15. Purpose Code Administrator – also referred to as Account Code Administrator, is the individual with ability to allocate costs to a particular purpose code within the University general ledger.
16. Supporting Documentation – a merchant produced or non-University document that records relevant details for each item purchased including quantities, amounts, dates, participants and a description of what was purchased, the total charge amount, and the merchant’s name and address (e.g., sales receipt, original invoice, packing slip, credit receipt, etc.). In the absence of this, a University Approved Affidavit may be utilized as an exception.
17. Transaction/Charge Limit – the total dollar amount allowed for any single transaction made by the Cardholder using the UD Credit Card. A single transaction/charge may include multiple items but cannot exceed the transaction/charge limit.
18. UD Declining Balance Card – a card issued to an employee at the University that can be used to fund a cash advance. The UD Declining Balance Card can be established to fund the entire balance or some portion thereof, as cash. References to UD Credit Card throughout this document also apply to the UD Declining Balance Card.
19. UD Credit Card – a charge card issued to an employee at the University for the purpose of making authorized purchases on the University’s behalf. The University will issue payment to the merchant/Card Issuer for charges made with the UD Credit Card.
20. University Approved Affidavit – a sworn statement in writing signed by the employee and his/her supervisor documenting the items purchased, the business purpose, and other relevant information.
21. Works – the current online application for managing, reporting, and allocating UD Credit Card transactions and reimbursement requests.
POLICY STATEMENT
1. This policy addresses usage and administrative responsibilities around the UD Credit Card. Only UD employees are eligible to receive the UD Credit Card, and usage can be restricted based on business needs.
2. The UD Credit Card is only to be used for Bona Fide Business Purposes and must never be used to purchase items for personal use or for non-University purposes even if the Cardholder intends to reimburse the University.
3. Accounts Payable is responsible for managing the Credit Card Program. Each college, unit, and department is responsible for managing its Cardholders’ accounts.
4. Only the Cardholder whose name is embossed on the UD Credit Card is authorized to use the UD Credit Card and all such use shall be in compliance with UD policies and procedures.
POLICIES STANDARDS AND PROCEDURES
1. General Guidelines for the UD Credit Card
  1. Cardholders are accountable for all charges made with their UD Credit Card and are responsible for checking all transactions against the corresponding Supporting Documentation to verify their accuracy and propriety.
  2. A Cardholder who makes an unauthorized purchase with the UD Credit Card or uses the UD Credit Card in an inappropriate manner may be subject to disciplinary action including card cancellation, restitution or repayment obligation of nonconforming charges, potential termination of employment, and/or criminal prosecution.
  3. The total value of any one purchase made with the UD Credit Card may not exceed the single Transaction/Charge limit as approved by the Program Administrator. Cardholders cannot disaggregate a purchase into multiple transactions in order to not exceed the Transaction/Charge Limit.
  4. Cardholders that have received authorization to use their UD Credit Card to charge University business related travel and/or entertainment expenses are required to ensure compliance with the University Travel and Business Hosting Policy (Policy 3-07).
  5. The University of Delaware discourages the use of high-risk vendor merchant processors such as PayPal or Square. If the vendor accepts no other form of payment, then a complete business description that includes date, service and product offering, vendor name, location, and contact information, and all documentation regarding a Bona Fide Business Purpose must be included in the credit card allocation documentation in Works. Incomplete or insufficient vendor and product information are considered a violation of policy.
2. Receiving the UD Credit Card
  1. The University will issue credit cards to appropriate personnel as determined by the business office within the respective department, the unit or college, and Accounts Payables department.
  2. A UD Credit Card Enrollment Request form must be submitted for each prospective Cardholder. This form must be approved by the following individuals:
    1. Purpose Code Administrator for the Default Purpose Code;
    2. Supervisor;
    3. Credit Card Program Administrator.
  3. Minimum of projected annual spend of $5,000 and description of business needs for the credit card must be justified in the notes of the requesting documentation for card approval.
  4. All prospective Cardholders must complete the online training tools to be eligible to receive a UD Credit Card, and they must complete an annual recertification.
  5. The UD Credit Card single transaction charge limit is $5,000. Departments may request lower limits on a per Cardholder basis. Increased limits must be approved by the Vice President for Finance and Deputy Treasurer.
  6. Default maximum credit card limit is $10,000. Departments may request lower limits on a per Cardholder basis. Increased limits must be approved by the Vice President for Finance and Deputy Treasurer. The Cardholder is prohibited from exceeding the set credit limit.
3. Making a Purchase with the UD Card
  1. Consult Blue Hen Market, the online purchasing center, to purchase from UD preferred suppliers. The Cardholder must purchase from preferred merchants whenever possible to take advantage of pricing and terms negotiated on a University-wide contract basis. Purchases not made from preferred vendors for like products require written justification.
  2. All credit card purchases, either online or in person, must contain a complete receipt that satisfies Supporting Documentation requirements.
  3. When making purchases via telephone, computer, mail order, etc., Cardholders should give the merchant the account number embossed on their UD Credit Card and direct the merchant to include the following on the shipping label and/or packing slip, when possible:
    1. Cardholder name and phone number;
    2. Department name;
    3. Complete campus delivery address including building name and room number; and
    4. The words “credit card purchase”.
  4. Cardholders are encouraged to receive their own shipments; however, if someone on Campus will be receiving a shipment on the Cardholder’s behalf (e.g., Receiving and Delivery), the Cardholder should notify them in advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining a receipt related to the purchase and verifying that the documentation complies with the requirements for Support Documentation.
  5. If a vendor does not accept credit cards, you must purchase the goods or services via a Purchase Order Request through Procurement Services.
4. Unallowable Purchases on the UD Credit Card & Advanced Approvals
  1. Cardholders are not authorized to use the UD Credit Card to purchase any of the following:
    1. Purchases for personal use;
    2. Purchases for Non-University Purposes;
    3. Purchases for Non-Bona Fide Business Purpose;
    4. Gasoline for personal vehicle or university-owned vehicle (the University Fleet Card should be used for university-owned vehicles).
  2. Purchases of the following items on a UD Credit Card must be authorized in advance by the designated department listed below. Authorization must be obtained in writing and included with the Supporting Documentation for that purchase.
    1. Environmental Health and Safety – All chemical and laboratory related materials including but not limited to Respirators, Laboratory refrigerators, Fume Hoods, X-ray equipment, Biological safety cabinets, Laminar flow clean benches, HEPA filtered equipment, 3-D Printers and makers, and Laser equipment.
    2. Office of Communication and Marketing – Website services and marketing publications.
    3. Treasury Services – Online credit card processing and banking services.
    4. Risk Management – Insurance
    5. Public Safety – Intrusion Alarms
5. UD Credit Card – Cash Advances and Declining Balance Cards
  1. Cardholders, who receive authorization to withdraw cash with the UD Credit Card, must return any remaining cash to their Card Administrator within 60 days of the Cardholder’s return to campus. The Card Administrator will then arrange for that cash to be deposited with the Cashier’s Office per the procedures set forth in the University’s Cash Receipts Policy (Policy 3-21).
  2. Honoraria or payment to a non-US citizen for services must have a completed UD W-8.
6. Credit Card Program Procedures
  1. Receipt Retention
    1. The Cardholder is responsible for obtaining Supporting Documentation from the merchant (sales receipt, packing slip, etc.) for all purchases made with the UD Credit Card with a value of $25.00 or over, and for verifying that the documentation complies with the requirements for Support Documentation.
    2. It is both the Cardholder and Card Administrator’s responsibility to ensure that all Supporting Documentation and the corresponding billing statement are retained within the department per the following retention schedule:
      1. University Funded Purchases: Retain for no less than 3 years after the year in which the documentation is received.
      2. Grant Funded Purchases: Retain until notification is received from the Research Office to do otherwise.Note: It is recommended that the Card Administrator retains all Cardholder documentation within a central repository and coordinate the record retention function with the departmental Records Management Contact. It is further recommended that the documentation for grant records be retained separately.
      3. It is the Independent Reviewer’s responsibility to conduct and document the periodic reviews of Cardholder activity and to report any irregularities or inappropriate transactions to the Cardholder and Card Administrator.
  2. Merchandise Returns and Exchanges
    1. The Cardholder is responsible for contacting the merchant when merchandise purchased with the UD Credit Card is not acceptable (incorrect, damaged, defective, etc.) and for arranging a return for credit or an exchange.
    2. If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with the Supporting Documentation for that purchase. Receiving cash or checks to resolve a credit is prohibited.
    3. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the Support Documentation for that purchase.
  3. Reimbursement Requests for Goods and Services
    1. In instances when the UD Credit Card is not accepted and a personal card must be used, it is the responsibility of the Cardholder being reimbursed to provide complete and accurate information and documentation (including evidence of supervisor approval) in support of the business expenses submitted for reimbursement.
    2. It is the Card Administrator’s responsibility to ensure that all Supporting Documentation, including evidence of the supervisor’s approval and a copy of the reimbursement request, are retained within the department. The Card Administrator must review such documentation before signing off on the transaction in the online system used to process the reimbursement requests.
    3. Expenses reported more than four months after the purchase will not be reimbursed and should not be submitted absent extenuating circumstances. Extenuating circumstances which prevent submission at some point within the 4-month period are expected to be rare. Circumstances that may justify an exception include:
      1. Extended personal illness;
      2. Death in the family;
      3. Unanticipated extended leave of absence; and
      4. Travel outside the country for an extended period during which time documentation cannot be readily sent to the University.Note: Each department must establish or adopt a process to be followed for Reimbursement Requests
  4. Cardholder Responsibilities – Verification of Charges
    1. Cardholders are accountable for all charges made with their UD Credit Cards and are responsible for checking all transactions against the corresponding Support Documentation to verify their accuracy and propriety. (Confirm all charges are appropriate within 30 days). This check must be done on a regular basis but no less frequently than once per billing cycle using the University’s online transaction verification system and the Cardholder’s Billing Statement.
    2. The Cardholder can verify their transactions in the online system personally or through the use of a Proxy. The use of a Proxy does NOT exempt the Cardholder from any policy requirement and the Cardholder remains ultimately responsible for the purchases made. If a Proxy is used, the Cardholder must review and sign their Billing Statement each month attesting to the validity of the included transactions. The Cardholder’s failure to do so for each billing cycle is considered a policy violation.
    3. If a particular charge or credit does not appear online or on the Billing Statement, it must be checked against future online transaction information and/or the next Billing Statement. If the charge or credit does not appear within 60 days after the original charge was made, the Cardholder must notify the Program Administrator.
    4. After all transactions have been checked and the Cardholder signs off on the transactions in the online system, the Cardholder must forward all applicable receipts and related Support Documentation to their Card Administrator.
  5. Charge Disputes
    1. In the case of a disputed charge, the Cardholder must try to resolve the dispute directly with the merchant. If the dispute cannot be resolved, the Cardholder must dispute the charge online in Works within 45 days of the date of the transaction.
    2. If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained as Supporting Documentation for the charge.
  6. Card Administrator – Verification of Cardholder Charges and Reimbursement Requests
    1. The Card Administrator is responsible for reviewing each transaction and reimbursement request using the online transaction verification system and flagging the designated field if a charge is lacking appropriate Supporting Documentation or is not in compliance with University policy.
    2. For a charge or reimbursement to be supported there must be adequate Supporting Documentation available so that the Card Administrator can determine that the purchase is appropriate and that the Cardholder or employee is accountable for that purchase or expense.
    3. For a reimbursement to be properly supported the process must meet the following minimum requirements:
      1. Must include a printout or PDF of the Works reimbursement request;
      2. Must include attached scanned or original receipts, as required by University policy, of the transaction(s); and
      3. Must include documentation of the appropriate supervisor’s approval of the reimbursement in either of the following forms:
        
        Signed copy of the Works reimbursement report, or
        
        An attached copy or image of a note or email from the supervisor indicating approval of the expenses.
      4. The reimbursement request must be subjected to the same independent review process applied to UD Credit Card travel and entertainment transactions.
    4. The most recent version of the posted process to acquire and document the appropriate approval for reimbursement requests is found on the Procurement website.
    5. For a charge to be inappropriate, any one or more of the following situations may exist:
      1. Insufficient Support Documentation;
      2. One or more of the criteria for unauthorized card use; and/or
      3. The Cardholder disputes the charge.
    6. All inappropriate charges must be investigated and resolved. The disposition of each inappropriate charge must be documented and retained with the Supporting Documentation and/or Billing Statement. Cardholders are responsible for all inappropriate charges.
    7. Cardholders and Card Administrators must both sign off on all charges using the online transaction verification system as soon as possible after the transactions become available (transactions will be loaded daily). If a particular transaction has not been signed off within 30 days of the Billing Statement date, a reminder will be sent to the Cardholder or the Card Administrator. If after 60 days the transaction has still not been signed off a warning message will be sent and after 90 days, the Program Administrator will notify Internal Audit and the UD Credit Card may be canceled.
    8. After all transactions and reimbursements have been reviewed, the Card Administrator must retain the Supporting Documentation and Billing Statement for further review in accordance with the records retention requirements.
    9. The use of a Proxy for charge verification requires that:
      1. The Proxy cannot be the Cardholder’s Card Administrator or independent reviewer.
      2. Cardholder must supply the Proxy with receipts for all card transactions prior to verification and must sign Billing Statements to document Cardholder agreement with the transactions validated by the Proxy.
      3. A Cardholder’s failure to provide receipts and sign the Billing Statement must be reported to the Credit Card Program Administrator.
      4. Use of a Proxy does not remove any responsibility from the Cardholder with regard to policy compliance.
  7. Charge Allocation to Non-Default Purpose Codes
    1. For any given charge or reimbursement, the Card Administrator has the option to perform an online reallocation from the default purpose to as many as ninety-nine University purposes. If the reallocation option is not exercised prior to the Card Administrator signing off on the transaction in Works, the reallocation will require a journal voucher.
      
      Note: Reallocation to Revenue or Salary accounts is not permitted.
    2. If a particular charge reallocation involves one or more grant purposes, and the Card Administrator is not sure what the grant allows, they must consult the award document(s) for the affected grant(s). If there are still further questions, the Card Administrator must contact the Research Office.
  8. The Independent Reviewer – Cardholder Transactions and Reimbursement Requests
    1. The transactions on the Cardholder’s Billing Statement and any reimbursement requests should be reviewed monthly, but no less frequently than quarterly, by an Independent Reviewer, to ensure compliance with these policies and procedures. The Independent Reviewer must test a sample of transactions from each statement cycle period to verify that each of those transactions is supported by adequate Supporting Documentation and meets all the criteria for authorized UD Credit Card use or reimbursement. In particular, questionable transactions (e.g., purchases of items for personal use or for non-University purposes, etc.) must be thoroughly scrutinized. The number of transactions reviewed must be sufficient to ensure that the review is effective. Review results must be documented by the Independent Reviewer and retained with the Supporting Documentation and corresponding Billing Statement.
    2. In the case of reimbursement requests, the Independent Reviewer must also examine the related documentation to verify that the approval process adopted by their department or unit was followed. Failure to follow the approval process must be reported to the Card Administrator, Program Administrator, and the department head.
    3. If serious irregularities are detected during the review process, the Independent Reviewer must notify the department head, the Program Administrator, and Internal Audit.
    4. After the independent review process is complete, the Cardholder Billing Statement, the reimbursement request, and all the corresponding Supporting Documentation including the documentation of the independent review must be filed within the department per the record retention requirements.
  9. UD Credit Card Security
    1. It is the Cardholder’s responsibility to safeguard the UD Credit Card and UD Credit Card account number at all times and to comply with Bankcard rules and terms.
    2. Cardholders must keep their UD Credit Cards in a secure location at all times. Cardholders must not allow anyone else to use their UD Credit Cards and/or UD Credit Card account numbers.
    3. Cardholders must not post their UD Credit Card account numbers where they can be easily seen by others.
  10. Lost, Stolen, or Damaged UD Credit or Cash Advance Cards
    1. If a card is lost, stolen, or damaged, the Cardholder must notify the Card Issuer immediately. Representatives are available 24 hours a day at the customer service number located on the back of the card.
    2. Cardholders must notify the Program Administrator within 24 hours after reporting the incident to the Card Issuer, if their card is lost, stolen, or damaged.
    3. After the above notification procedures have been completed, a new UD Credit Card will be issued to the Cardholder by the Program Administrator.
    4. A UD Credit Card that is found after it has been reported lost or stolen must be destroyed. The same procedure applies if a UD Credit Card is damaged.
  11. Cardholder Transfer within the University
    1. Cardholders who transfer to a new position within the same department and require the use of a UD Credit Card as part of their new duties should notify the Program Administrator and continue to use the same card.
    2. Cardholders who no longer require a UD Credit Card in their new position or transfer to a different department must cancel their card.
  12. Cardholder Separation from The University
    1. Prior to separation from the University, Cardholders must surrender their UD Credit Cards and any Supporting Documentation to their one-up supervisor, Card Administrator, or the Program Administrator.
    2. In any case, the UD Credit Card must be canceled.
  13. UD Credit Card Cancellation
    1. The Program Administrator must be notified immediately when a UD Credit Card is to be canceled. The UD Credit Card must be destroyed.
    2. If a Credit Card is inactive for more than 18 months, the Credit Card Program Administrator will terminate the card and contact the business unit to address business need.

The authority to enforce this policy lies with the Procurement Services Department. Any questions may be directed to (302) 831-2161 or procurement@udel.edu.

University Policies

UD Credit Card