Ohio Admin. Code 3337-55-74 - Payment card program
(A)
General
policy
(1)
As a
public institution, the university is held to a high degree of public scrutiny
and accountability for its business practices. Issuance of a payment card is a
privilege, and every reasonable effort must be made to verify that funds are
used responsibly and in a manner consistent with the purpose and mission of the
university. Payment cards are issued by Ohio university as a convenience for
purchasing goods and some limited services (e.g., travel) by university
employees. As such, payment cards are issued at the discretion of the
university.
(2)
Ohio university (university) offers a corporate payment
card program to provide a convenient means with which to make qualified
purchases that may not be available through the university's e-procurement
system. This program is designed to reduce the costs associated with the
initiating and paying for certain purchases. The program allows the cardholder
to charge authorized purchases to the appropriate university account within the
established limits of the card.
(3)
All purchases
must comply with all university policy and procedure and must meet all grant or
foundation account requirements, with special attention to the Equipment
inventory policy; Travel and entertainment policy; and all Purchasing policies
beginning with number "55."
(4)
The procedures
associated with this policy are an integral part of the university payment card
program. The policy, procedure, training and other documentation (i.e., web
pages) are maintained by the vice president for finance and administration
designee and reviewed with policy reviewers on an as needed
basis.
(B)
Types of payment cards
(1)
The payment card
(pcard) program offers many card types to meet a diverse set of end user needs.
A general overview of each card type can be found in the procedures
documentation listed under the references section of this policy. Card options
will/may change (i.e., new options provided, existing options discontinued) as
the payment card industry options and technology evolve.
(C)
Obtaining a university payment card
(1)
Must be an active
university employee or graduate student with employee status on current human
resource records at the time of request.
Undergraduate students, non-employees, and temporary
agency employees are not eligible to receive most types of university payment
cards but may be eligible for a declining balance card with proper business
justification and approvals.
(2)
Must complete an
application along with business justification/need for the payment
card.
(3)
Application must be approved by the area's CFAO role
and submitted to finance for final determination of card type and
processing.
(4)
Employee must successfully complete training with the
original issuance of a new card and thereafter, a refresher course before a
renewal card can be issued.
(D)
Card usage
limitations and requirements
(1)
Payment cards are used to support the university's
purchasing and payables process. Purchases made with the card must be for
official university business only. Any transactions not related to university
business are considered personal transactions and are
prohibited.
(2)
Certain transactions are prohibited from purchase on
university cards. The list of both allowable and prohibited items takes into
considerations legal requirements, regulatory oversight, preferred suppliers,
and the terms and conditions of other contractual obligations or agreements.
Refer to the payment card website for procedures and additional
guidance.
(3)
Cards are subject to single transaction and monthly
spending limits.
(4)
Payment card increase requests may be submitted for
certain situations and shall be limited in nature. Requests for increases to
single transaction limits up to ten thousand dollars and monthly transaction
limits must be submitted and approved by the planning unit CFAO or designee and
must include detail to support the proposed increase. Any increases approved by
the CFAO must be for an allowable expense for the card under the purchasing
card policy and procedures. All requests above ten thousand dollars must be
approved by the director of payments or designee. The payment card is not a
substitute for standard procurement processes (purchase order, contract review,
insurance requirements, etc.) and, as such, increases may be
denied.
(5)
Splitting transactions (also known as "pyramiding") to
avoid transaction limits established for a card is prohibited.
(E)
Cardholder responsibilities
(1)
Cardholders are
accountable for all charges made with their university payment card and are
responsible for checking all transactions against the corresponding supporting
documentation to verify their accuracy and propriety.
(2)
It is the
cardholder's responsibility to always safeguard the card and account number.
Cards must be kept in a secure location and shall only be used to process
authorized transactions by the authorized cardholder for business transactions.
The cardholder should not "store" the card so that auto-renewals can be
automatically charged, nor can a cardholder authorize "auto-renewal" charges
against a university credit card.
(3)
In accordance
with banking regulations, the cardholder cannot transfer their card to another
individual for use (ex., loan your card or provide your card number to another
person to make a purchase for you).
(4)
The cardholder
must immediately report to the bank if a card is lost, stolen, damaged or there
is a fraudulent transaction charged to the card.
(a)
If you have a
lost or stolen card, contact the bank by calling the number on the back of the
card as soon as possible. For assistance, refer to the procedures on the
website or contact the payment card administrator. If a replacement card is
required, please work through the CFAO and the payment card
administrator.
(b)
It is critical that the cardholder report a stolen or
lost card or a fraudulent transaction as soon as possible to ensure that the
university can recover any potential losses should they occur. See procedures
for more detailed instructions.
(c)
The cardholder
must destroy the compromised card immediately and the bank will close the
card.
(5)
All transactions must be fully substantiated.
Substantiation must:
(a)
Have a clearly defined business purpose
(b)
Be accounted for
(this means that the cardholder has updated the costing on the transaction and
attached all required documentation to substantiate the charge against the
credit card) within twenty eight calendar days from the post date of the
payment card transaction in the system.
(c)
Be substantiated
by an itemized receipt. Required receipts for all payment card purchases,
including online purchases, must be detailed and itemized. Itemized receipts
(an image of the receipt is considered sufficient) are required for
substantiation of all expenses unless otherwise noted in policy or
procedure.
(6)
The cardholder is responsible for notifying the bank of
any disputed charges within sixty days.
(7)
Should a
cardholder separate from the university for any reason, the cardholder must
provide all itemized receipts and other information necessary to substantiate
any pending payment card transactions prior to leaving the
university.
(8)
Should a cardholder transfer to another planning unit
within the university, at the time of transfer, it is the cardholder's
responsibility to inform their current planning unit if they have any current
or pending payment card transactions and fully reconcile any expense
reports.
(9)
A cardholer is required to maintain and provide
necessary updates to the information attached to the payment card (i.e.,
cardholder address or contact information.) Please refer to the procedures
document for instructions.
(10)
Grant and
foundation account requirements may be more restrictive. it is the cardholder
responsibility to ensure that the charges against these accounts are allowable
in accordance with the account spending guidelines.
(F)
Approver/ panning
unit responsibilities
(1)
Approvers are accountable for the review of all charges
made with a payment card and are responsible for checking all transactions
against the corresponding supporting documentation to verify their accuracy and
adherence to university policies and procedures. The approver role serves as a
critical internal control role within the payment card program on behalf of the
university. Should a financial approver fail to exercise the due diligence and
control vested with this role, they may be removed as an
approver.
(2)
Approvers have nine calendar days to approve a card
transaction in the system.
(3)
Approvers are
responsible for reporting any known or identified policy violations on a
payment card to finance.
(4)
Prior to separation from the university, cardholders
must surrender their card(s) and substantiation documentation per university
records retention policy. It is the planning unit's responsibility to assure
the return of the card during the exit process and notify the payment card
administrator to immediately cancel the card.
(G)
CFAO
responsibilities
(1)
It is the responsibility of the chief finance and
administrative officer (CFAO) to determine payment card delegations as
appropriate and allowable under policy and procedure. The CFAO has primary
responsibility for oversight of the planning unit's payment card program and
includes but is not limited to:
(a)
Adherence to university policy and
procedures
(b)
Internal controls, including internal training and
guidance,
(c)
Setting reasonable limits, within the scope of the
position responsibilities, and
(d)
Communication
regarding planning unit specific requirements for the use of a university
credit card for their planning unit.
(e)
Approve all
payment card applications. Approval cannot be delegated.
(2)
The
CFAO or delegate(s) within the planning unit has the authority to cancel a card
at any time for any reason.
(3)
When cardholders
move between planning units within the university, the CFAO role will determine
if there is a business need for the cardholder to maintain a university payment
card. Please refer to procedures for additional details.
(H)
Audits
and policy violations
(1)
To ensure compliance with the policies and procedures
of the payment card, continuous monitoring activities are performed by internal
audit and finance.
(2)
After five total policy violations over a two year
period of time, a card will be suspended for at least one two year cycle. In
extraordinary circumstances, the cardholder may receive executive approval to
continue card usage as approved by the executive vice president and provost
(for academic and academic support units) or the vice president for finance and
administration (for administrative units).
(3)
All policy
violations must be tracked in accordance with this policy.
(4)
The university
may enforce corrective action, up to and including termination, in accordance
with applicable policies or rules.
(5)
The university
may seek restitution, as appropriate.
(6)
Criminal charges
may be filed, as appropriate.
(7)
Any suspected
credit card abuse should be immediately reported by the department to internal
audit, finance and/or legal affairs.
Notes
Promulgated Under: 111.15
Statutory Authority: 3337.01
Rule Amplifies: 3337.01
Prior Effective Dates:
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