The Drew University Credit Card is a Visa credit card intended for use by budget managers (or their designees) to make purchases of low-dollar value goods or services. The Credit Card is the preferred purchasing method which provides an efficient way to make such purchases and payments.
Beginning Fall 2017, our credit card issuer will be transitioned to Bank of America. Included with this change in credit card issuer is converting to a one card program. No longer will separate cards be issued for purchasing of goods & services (“P-cards”) and Travel purposes (“T-Cards”).
All cards from the prior issuer (PNC) will be made inactive upon issuance of the new cards from Bank of America.
The Director of Procurement Services and his designee shall serve as the credit card program administrator.
The Purchasing Card Program is designed to empower University personnel to allow direct purchase of approved goods or services from suppliers which accept the Visa credit card. The program is intended for use by departments which are regularly involved in low-dollar value procurement transactions. Prospective cardholders and their supervisors are expected to read and understand the policy and procedural information provided within this document before making application for a card. You are also expected to keep a record of your transaction limits, default account number, card number and bank telephone number.
Benefits to the Cardholder
• 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 positions where frequent travel is a condition of their employment. Final determination of credit card issuance rests with the Director of Procurement Services, Assistant Vice president of Finance 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 Finance 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.
Requesting a New Card
Any individual requesting a new card must complete the credit card application-FY18 and have signed by their supervisor. Upon approval, it must be forwarded to the Purchasing department whom will place the order with Bank of America. The card will be received by the Purchasing department and the cardholder will be notified when ready to pick up.
Cardholders will be asked to sign for their card upon pickup. The card cannot be released to any individual other than the cardholder without prior approval of the cardholder.
Cards will be issued by the card issuer inactivated and can only be activated by the cardholder or the Program Administrator.
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 $5,000 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 or on our website at http://www.drew.edu/fba/faculty-staff/.
• 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. A Reconciliation Log template is available on our website at http://www.drew.edu/fba/faculty-staff/.
• 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
• 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.
• 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.
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 Credit-Card-Reconciliation upon receipt of their monthly statement. It must be submitted to their supervisor for review and approval 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 = expense report due by July 31.
Cardholders have the ability to designate applicable fund/org by transaction on their monthly reconciliation report. The Accounting GL code will be determined by the Merchant Category Code (MCC) of the vendor from whom the transaction occurs (MCC’s are assigned by VISA to all vendors accepting credit cards). Accordingly, all transactions will be tied to one of the following GL codes:
70100 – Lodging
70101 – Entertainment
70102 – Transportation
70103 – Meals
70206 – Other Material and Supplies
73202 – General Contractual Services
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).
Monthly statements will no longer be in hard copy format via regular mail. Rather accommodations have been made to make monthly statements available electronically within a few days of the end of each month at the following website:
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.
Due to the frequency of usage, convenience and competitive pricing, Drew has entered into contract with Amazon. All cardholders intending on using Amazon to purchase goods and services must be setup under Drew’s business account. Any transactions made on a Drew University credit card that are not under Drew’s business account will not be authorized and the individual’s credit card be inactivated.
Use of Amazon for the purchase of goods and services does not eliminate any purchasing policy requirements or restrictions.
To request a new account or transfer of an existing account, please contact the Program Administrator via email.
• Under the direction of the Director of Procurement Services, the Program Administrator will audit all expense reports 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