Credit Card Programs Policy

Effective Date:

November 9, 2016

Supersedes:

Credit Card Programs: Overview

Policy Review Date:

3 years from effective date

Issuing Authority:

Research Foundation President

Responsible Party:

Chief Financial Officer

Contact Information:

518-434-7050

rffinance@rfsuny.org

Reason for Policy

This policy provides a statement of use, administration, and controls around the Research Foundation for The State University of New York ("Research Foundation" or "RF") credit card programs.

Statement of Policy

Use

Credit cards are provided to RF employees to facilitate the purchase of business or project related goods and services and to substantiate eligibility for waiver of New York state (NYS) sales tax for corporate transactions. Misuse will result in card cancellation. See the "Card Cancellation" block below.

Cards may be cancelled by an operating location if the cardholder

None of these credit card programs can be used for cash advances and RF credit cards must not be used for personal expenses other than incidental costs incurred while in travel status.

Review of Purchases

Business or project-related purchases made with a credit card must be reviewed for compliance with the financial institution's rules and regulations, federal regulations, sponsor guidelines, and Research Foundation policies. (Refer to "How to Review a Request for Goods, Services or Payment.") Since this review takes place after the purchase and payment to the vendor or supplier has been made, the cardholder may be responsible for payment to the credit card financial institution or for reimbursement to the RF if it is determined that the purchase is not allowable.

Available RF Card Programs

The Research Foundation (RF) offers the following card programs through American Express (AMEX), Citibank Visa Business Travel Account (BTA) and Bank of America:

Program Type

Program Details

Liability

Corporate Travel Card Program

Travel cards in cardholders name for business-related travel expenses only.

Credit limits are placed based on the traveler and also available at the transactional level.

The Bank of America Travel card program is supported and monitored by central office. Campuses choosing to use other travel card programs are responsible for managing and monitoring their programs.

Personal

Business Travel Account (BTA)

For travel-related expenses only, the BTA involves no plastic cards.

The account is used by specific NYS contracted travel agencies for charging airline and rail tickets directly to an operating locations's RF business office.

BTA accounts offered through American Express and Citibank Visa and are managed at the campus level.

Corporate

Purchasing Card (P-Card) Program

This type of card can be tailored by the campus for specific types of purchases and can carry a limit, or it can also be used for all purchases including travel.

There is no charge for this type of card and there is no minimum number of cards required.

The Bank of America P-Card program is supported and monitored by central office. Campuses choosing to use other purchasing card programs are responsible for managing and monitoring their programs.

Corporate

Establishing Credit Card Programs

The RF Central Office centrally manages and monitors the Bank of America P-Card and Travel Card programs for the campuses. With prior approval of the RF Chief Financial Officer, operating locations may obtain credit cards through other financial organizations although the campus needs to ensure proper monitoring and internal controls of these programs.

Information on how to establish any of the RF credit card programs is provided in the following documents:

Requesting P-Cards or Travel Cards

New P-cards or Travel Cards requested by campuses must be approved by an authorized campus official.

Billing Procedures

Billing procedures vary depending on the type of account.

BOA Travel Credit Card

Individual billing; individual liability. Billing is to the specific individual holding the card and paid within 20 days. Requests for reimbursement are handled as a vendor payment request through the operating location's business office.

BTA (Business Travel Account)

Central billing; corporate liability. Travel expenses are billed directly to the operating location's central business office for immediate payment. Each operating location's central business office administers the BTA for the account-holding travel agency.

BOA Corporate Purchasing Card

Central billing; corporate liability. The purchasing card is a corporate liability card and must be centrally billed and paid within 25 days. Therefore, operating locations must establish and fund an account from which the bills will be paid. The costs are then billed back to the grant or cardholder, as appropriate.

Managing RF Credit Card Programs

Operating locations are responsible for managing each credit card program. Procedures and rules must be developed and clearly communicated to all cardholders for the following:

Credit Limits

An operations manager or designee must establish a credit limit for the corporate purchasing card.

Although credit is unlimited for the Corporate Credit Card, an operations manager or designee has the option of setting a credit limit for these cards.

Credit limits for Citibank BTA are established via the Citibank Risk Assessment Form.

Card UsPrograme Options

Operating locations are responsible for managing the use of credit cards. For considerations, restrictions, and benefits of each card program, see:

Overview of the Citibank Visa BTA in Credit Card Programs: How to Establish a Citibank Visa Business Travel Account (BTA)

Overview of Bank of America Corporate Purchasing Card Program in Credit Card Programs: Bank of America Purchase Card Program

Overview of Bank of America Corporate Travel Card Program in Credit Card Programs: Bank of America Travel Card Program

Authorized Cardholders

The operations manager or designee is responsible for ensuring that an up-to-date list of authorized cardholders and their signatures is maintained at the operating location. Authorized cardholders may include, but are not limited to, the following persons:

Sponsor Guidelines

Rules and procedures must be developed and implemented to ensure that purchases comply with sponsor regulations. To help ensure compliance with sponsor guidelines, purchases made during the last 30 days of a project period should be limited to emergency purchases required to complete the project.

Vendor Disputes and Returns

The operations manager or designee must determine who will be responsible for resolving vendor disputes. Central office is not responsible for resolving disputes with vendors. Rules and procedures must be developed and implemented for the return of goods purchased with a credit card and for the cancellation of travel expenses that were paid for by an RF credit card program.

Documentation Requirements

Payment documentation for business or project related purchases should be forwarded by the cardholder to the campus office of record and should include the following:

Card Cancellation

The Research Foundation may cancel any AMEX or Citibank Visa or BOA VISA credit card program with or without notice. This may be necessary if the cardholder violates financial institution, Research Foundation, or operating location rules and requirements governing use of the card. Any charges resulting from abuse become the personal liability of the cardholder.

The operations manager or designee must follow these steps to cancel an employee's card:

Step

Action

1

Contact American Express directly by calling (800) 528-2122.

Contact Citibank at (800) 790-7206, or use online system at www.citimanager.com.

Contact the finance office at (518) 434-7050 for Bank of America cards

2

If possible, obtain the cancelled card from the cardholder.

3

Remove the cardholder from the authorized list of cardholders for the location.

Responsibilities

Responsible Party

Responsibilities

OM or designee

Responsible for authorizing who can approve cards and/or increase/decrease credit card limits.

Cardholders

Responsible for safe keeping of the card and following rules pertaining to use of card.

Operating Locations

Responsible for the administration of any credit card programs outside the centrally administered Bank of American program. This includes managing and monitoring of programs

Central Office

Responsible for the administration of the Bank of America program. This includes managing and monitoring the program.

Definitions

Misuseor abuse of the card - Some examples include but are not limited to:

Related Information

Travel Site

Unrestricted Fund Expense Policy

Documentation Guidelines for Purchasing and Payment Activities

Procurement Site

Credit Card Programs: Bank of America Purchase Card Program

Credit Card Programs: Bank of America Travel Card Program

How to Establish a Citibank Visa Business Travel Account

Forms

RF Purchasing Card (P-Card) Administrator Agreement Form

RF Travel Card Agreement for Employees

Change History

Date

Summary of Change

November 9, 2016

Added references that campuses are responsible for card monitoring and ensuring internal controls are in place when utilizing card programs other than the corporate Bank of America program. Added requirement that all Travel Cards or P-Cards be accompanied by a completed authorization form with cardholder agreeing to terms of card use.

December 7, 2012

Created new policy called RF Credit Card Programs Policy; supersedes Credit Card Programs: Overview procedure. Effective 3/15/2013

January 25, 2010

Added references for Citibank Visa program

November 14, 2012

Added references for BOA Program and documentation requirements

 

 

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