Section: Procurement and Auxiliary Services
Policy Number: 5-22
Policy Name: UD Credit Card
Date: October, 2000; July 1, 2005; April 6, 2009; December 2010

  1. PURPOSE

  2. To set forth the Policies and Procedures for the University of Delaware UD Credit Card Program and requests for reimbursement of business expenses.

  3. POLICY

    1. INTRODUCTION

    2. The University of Delaware UD Credit Card Program has been established to provide a convenient means with which to make purchases and to provide a convenient method for paying for those purchases. In addition, the online application for managing and reporting on UD Credit Card transactions also provides for the submission and payment of the reimbursement of business expenses to employees. Procurement Services is responsible for managing the Program, and each Academic or Administrative department is responsible for managing its Cardholder accounts. Four areas of responsibility have been defined within each department to assist in this management effort. They are the Cardholder, Card Administrator, Independent Reviewer and Department Contact. It is important to understand that these four areas of responsibility do not necessarily equate to four separate individuals within the department. It is permissible for one individual to be assigned one or more of these responsibilities as defined in these Policies and Procedures. The ultimate decision as to how each of these responsibilities is assigned will be made within each department.

      In addition to the UD Credit Card, the University also offers the UD Cash Advance Card which in addition to being used for credit transactions can also be configured to permit cash withdrawals at ATMs or bank locations. Throughout this policy, references to the UD Credit Card also apply to the UD Cash Advance Card.

    3. DEFINITIONS

      1. UD Credit Card: A charge card issued to an employee of the University of Delaware for the purpose of making authorized purchases on the University's behalf. The University will issue payment for charges made with the UD Credit Card. UD Credit Cards can be issued with the ability to purchase goods and services that:

        1. Exclude Travel and Entertainment categories

        2. Include only Travel and Entertainment categories

        3. Include all goods and services categories plus Travel and Entertainment categories

      2. UD Cash Advance Card: Cards issued to an employee of the University of Delaware that can be used to withdraw a cash advance against the amount available on the card. Cards can be established to withdraw the entire balance as cash or some portion thereof. These cards may also be used for credit transactions. References to UD Credit Cards throughout this document also apply to the UD Cash Advance Cards.

      3. Cardholder: University Employee whose name appears on the UD Credit Card and is accountable for all charges made with that UD Credit Card.

      4. Proxy: Person designated by Cardholder who verifies the Cardholder's UD Credit Card transactions in the online system. The Proxy can be the Cardholder's Card Administrator. In any case, the 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. A Cardholder's failure to provide receipts and sign the billing statement must be reported by the Proxy to the Program Administrator who will notify Internal Auditing each billing cycle.

      5. Card Administrator: University employee(s) within each department responsible for verifying online that all charges against the Cardholder's account and all reimbursement requests are backed up by Support Documentation and that the documentation is retained within the department. Card Administrators have the ability to allocate individual charges to as many as ninety nine University purpose codes and accounts. 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.

      6. Independent Reviewer: University employee(s) within each department responsible for sampling and testing UD Credit Card and Reimbursement Request transactions to verify that they are appropriate and supported by adequate documentation. To be effective, the Independent Reviewer must be in a position to objectively question any and all Cardholder purchases and reimbursements. Cardholders may not be their own Independent Reviewers and whenever possible, the Independent Reviewer should not be subordinate with a reporting line to the Cardholder. A department may have more than one Independent Reviewer.

      7. Department Contact: University employee within each department responsible for receiving and disseminating UD Credit Card information within their department and for relaying UD Credit Card information from within their department to the Program Administrator. It is recommended that each department have only one Department Contact.

      8. Program Administrator: Procurement Services employee responsible for administering the UD Credit Card Program for the University and acting as the main contact between the University and the Bank.

      9. Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the UD Credit Card. This amount must not exceed $5,000.00. Departments may establish lower limits on a per Cardholder basis. A single transaction/charge may include multiple items but cannot exceed $5,000.00.

      10. Monthly Spending Limit: A dollar limitation of purchasing authority assigned to the Cardholder for the total of all charges made during each monthly billing cycle. This amount may not exceed $20,000.00. Departments may establish lower limits on a per Cardholder basis.

      11. 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 by the Bank and can be created by the Cardholder, Proxy or Card Administrator in the online reconciliation tool, Works.

      12. Default Purpose: The University non-grant funded purpose code assigned to an individual Cardholder's UD Credit Card. Only one Default purpose 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 unless those charges are reallocated. (See section II.M.).

      13. Support Documentation: A merchant produced or non-University document that records the relevant details for each item purchased including quantities, amounts, 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.). For Reimbursement Requests Support Documentation includes receipts as required by the Business Hosting and Travel Policy 3-7 and any documentation describing, authorizing or explaining the expense to be reimbursed.

      14. Works: The online application for managing, reporting and allocating UD Credit Card transactions and Reimbursement Requests.

      15. Card Issuer (Bank): The UD Credit Card is a Visa Card issued by Bank of America. The phone number for 24 hour customer service for the UD Credit Card is 888-449-2273. This number can also be found on the back of the card.



    4. RECEIVING THE UD CREDIT CARD

      1. A complete UD Credit Card Enrollment Request web form must be submitted for each prospective Cardholder. This form must be routed for approval to the account code administrator for the default purpose and then routed to the Program Administrator.

      2. All prospective Cardholders must review the online training tools to be eligible to receive a UD Credit Card.


    5. AUTHORIZED UD CREDIT CARD USE

      1. Cardholders are authorized to use the UD Credit Card to purchase any merchandise, services, travel or entertainment required as a function of their job duties at the University with the exception of the following:

        1. Items for Personal Use

        2. Items for Non-University Purposes

        3. Cash Advances (Approval may be granted on an individual basis.)

        4. A catered event on campus by anyone other than University's Dining Services

        5. Contracting

        6. Gasoline for personal vehicle or university-owned vehicle (University Fleet Card should be used for university-owned vehicles.)

        7. Financial services

        8. Radioactive material (Order via Environmental Health and Safety)

        9. Laboratory animals (Order via the Laboratory Animal Facility)

        10. Any purchases prohibited by University policy or not related to University business

      2. Only the Cardholder whose name is embossed on the UD Credit Card is authorized to use the UD Credit Card and is responsible for ensuring that all charges made with the UD Credit Card are in compliance with these Policies and Procedures.

      3. The total value of any one charge made with the UD Credit Card may not exceed the single Transaction/Charge limit stipulated on the UD Credit Card Enrollment Request web form.

      4. Purchases of the following items must be authorized in advance by the designated individual within the University. Authorization must be obtained in writing and included with the Support Documentation for that purchase.

        1. Respirators - Director of Environmental Health and Safety

        2. Refrigerators - Director of Environmental Health and Safety

        3. Fume hoods - Director of Environmental Health and Safety

        4. X-ray equipment - Director of Environmental Health and Safety

        5. Copiers - Director of Supporting Services

        6. Printing - Publications Manager

        7. Biological safety cabinets - Director of Environmental Health and Safety

        8. Laminar Flow Clean Benches - Director of Environmental Health and Safety

        9. HEPA filtered equipment - Director of Environmental Health and Safety

        10. Insurance - Director of Risk Management

      5. Purchases of the following items must be communicated in writing to the designated individual. A copy must be included with the Support Documentation for that purchase.

        1. Laser Equipment - Director of Environmental Health and Safety

        2. Intrusion Alarms - Director of Public Safety

      6. In addition to the other policies and procedures set forth in this document, 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 following:

        1. University Travel and Business Hosting Policy (Policy 3-7)

        2. All travel and entertainment charges must be approved by the individual (or their Proxy) who is actually traveling on University business or entertaining on behalf of the University using the online application provided for that purpose. If the traveler is a non-University person, the Cardholder must approve the charges using the same application.

        3. The University business related purpose for all travel and entertainment related expenditures, along with the date(s) of the travel or entertainment, the location(s) and the involved parties must be documented using the online application.

        4. If the person is not a US citizen, a UDW-8 must be obtained when issuing an honoraria or payment for their services.

        5. 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 Cardholders return to campus. The Card Administrator will then arrange for that cash to be deposited with the Cashiers Office per the procedures set forth in the University's Cash Receipts Policy (Policy 3-21).



    6. UNAUTHORIZED AND/OR INAPPROPRIATE UD CREDIT CARD USE

      1. The UD Credit Card must never be used to purchase items for personal use or for non-University purposes, even if the Cardholder intends to reimburse the University.

      2. A Cardholder who makes an unauthorized purchase with the UD Credit Card, as defined in section II.D, or uses the UD Credit Card in an inappropriate manner will be subject to disciplinary action including possible card cancellation, termination of employment at the University of Delaware and criminal prosecution.


    7. MAKING A PURCHASE WITH THE UD CREDIT CARD

      1. Consult Blue Hen Market, online purchasing center to purchase from UD preferred suppliers. The Cardholder should purchase from preferred merchants whenever possible to take advantage of pricing and terms negotiated on a University wide contract basis.

      2. 2. Confirm that the selected merchant accepts credit cards. If not, choose another vendor or submit a requisition to Procurement so that the purchase can be made via a Purchase Order. In either case, inform the Program Administrator, via the Department Contact, about the fact that the original merchant did not accept credit cards.

      3. When making purchases in person, the Cardholder must sign the charge receipt and retain the customer copy. The Cardholder must verify that either the charge receipt or sales receipt complies with the requirements for Support Documentation set forth in section II.B.13.

      4. 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

        4. The words "credit card purchase"

      5. 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 set forth in section II.B.13.


    8. 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 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 Support 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.


    9. RECORD RETENTION

      1. Cardholder Responsibility: The Cardholder is responsible for obtaining Support Documentation from the merchant (sales receipt, packing slip, etc.) for all purchases made with the UD Credit Card with a value of $10.00 or over, and verifying that the documentation complies with the requirements for Support Documentation set forth in section II.B.13.

      2. Card Administrator Responsibility: It is the Card Administrator's responsibility to assure that all Support Documentation and the corresponding Cardholder 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 retain all Cardholder documentation within a central depository 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. Independent Reviewer Responsibility: 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 as outlined in section II.N.


    10. REIMBURSEMENT REQUESTS

      1. Employee Responsibility: It is the responsibility of the employee 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. Card Administrator Responsibility: It is the Card Administrator's responsibility to assure that all Support Documentation including evidence of the supervisor's approval and a copy of the reimbursement request are retained within the department and to review such documentation before signing off on the transaction in the online system used to process the Reimbursement Requests.

      3. Deadline for Reimbursements: Expenses reported more than six months (180 days) after the ending date of the business activity will not be reimbursed and should not be submitted absent extenuating circumstances. Extenuating circumstances which prevent submission at some point within the 6 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

        4. Travel outside the country for an extended period of time if documentation cannot be readily sent to the University

        5. Note: Each department must establish or adopt a process to be followed for Reimbursement Requests as described in section II.L.


    11. CARDHOLDER 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. 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. 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 must be reported by the Proxy to the Program Administrator who will notify Internal Auditing.

      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 receipts and related Support Documentation to their Card Administrator.



    12. CARDHOLDER CHARGE DISPUTE RESOLUTION

      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 60 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 Support Documentation for the charge.



    13. 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 in the designated field if a charge is inappropriate based on the available Support Documentation and University policy.

      2. For a charge or reimbursement to be supported there must be adequate Support Documentation available so that the Card Administrator can ascertain that the purchase is appropriate and the Cardholder or employee is accountable for that purchase or expense.

      3. For a reimbursement to be supported the process for approval of Reimbursement Requests established or adopted by the department must be followed. The process must include the following minimum requirements:

        1. A printout or PDF of the Works reimbursement request

        2. Attached scanned or original receipts, as required by University policy, of the transaction(s)

        3. Documentation of the appropriate supervisor's approval of the reimbursement, in either of the following forms:

          1. Signed copy of the Works reimbursement report, or

          2. 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 authorized card use set forth in section II.D have not been met.

        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 Support Documentation and/or billing statement. Cardholders are responsible for all inappropriate charges.

      7. Note: If an inappropriate charge cannot be resolved, the Independent Reviewer must be notified. If an inappropriate charge involves fraud or personal use of the card then the Program Administrator, Department Head, and Internal Auditing must be notified.

      8. Cardholders and Card Administrators must both "signed-off" on all charges using the online transaction verification system as soon as possible after they become available (transactions will be loaded daily). If a particular transaction has not been "signed-off" within 30 days of the 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 Auditing and the UD Credit Card may be canceled.

      9. After all transactions and reimbursements have been reviewed, the Card Administrator must retain the Support Documentation and billing statement for further review in accordance with the records retention requirements specified in section II.H.



    14. 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.

      2. Note: Reallocation to Revenue or Salary accounts is not permitted

      3. 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 Office of Sponsored Programs.



    15. THE INDEPENDENT REVIEW OF 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 non-subordinate, as defined in section II.B.6, to ensure compliance with these Policies and Procedures. The Independent Reviewer should test a sample of transactions from each statement cycle period to verify that each of those transactions is supported by adequate documentation and meets all the criteria for authorized UD Credit Card use or reimbursement set forth in section II.D. 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 Support Documentation and corresponding 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 Auditing.

      4. After the independent review process is complete, the Cardholder billing statement, the Works Report of Reimbursement Request, and all the corresponding Support Documentation along with the documentation of the independent review must be filed within the department per the record retention requirements set forth in section II.H.



    16. 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.

      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.


    17. LOST, STOLEN OR DAMAGED UD CREDIT OR CASH ADVANCE CARDS

      1. If a Card is lost, stolen or damaged, the Cardholder must notify the Bank immediately. Representatives are available 24 hours a day at the customer service number located on the back of the card. The number is also found in section II.B.15.

      2. Cardholders must notify the Program Administrator if their cards are lost, stolen or damaged within 24 hours after reporting the incident to the Bank.

      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 by cutting it in half. The same procedure applies if a UD Credit Card is damaged.


    18. CARDHOLDER ACCOUNT MAINTENANCE

    19. Whenever any of the information contained on a UD Credit Card Enrollment Request web form changes, a Cardholder Account Maintenance Form must be completed. The completed Cardholder Account Maintenance Form is then to be forwarded to the Program Administrator. Note: If the default purpose is changed via the Cardholder Account Maintenance Form, the administrator for the new account must indicate their approval.

    20. CARDHOLDER TRANSFER WITHIN THE UNIVERSITY

    21. 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. Cardholders who no longer require a UD Credit Card in their new position or transfer to a different department must cancel their card per the instructions in section II.T..

    22. CARDHOLDER SEPARATION FROM THE UNIVERSITY

    23. Prior to separation from the University, Cardholders must surrender their UD Credit Cards and corresponding Support Documentation to their immediate supervisor, Card Administrator, or the Program Administrator. In any case, the UD Credit Card must be canceled as per the instructions in section II.T.

    24. UD CREDIT CARD CANCELLATION

    25. The Program Administrator must be notified immediately when a UD Credit Card is to be cancelled. The UD Credit Card must be destroyed by cutting it in half.

    26. RESPONSIBLE AUTHORITY

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


Submitted by: Procurement Services