• Seton Hall University
• Policies and Procedures

Purpose

The purpose of this policy is to provide standards governing eligibility, issuance, appropriate business use, expense reconciliation, cardholder responsibilities and transaction approval related to the Seton Hall University credit card.

Scope

This policy is a University policy and applies to all faculty, administrators and staff issued, utilizing or responsible for approving purchases on, a University credit card.

Definitions

Approver: An employee who is responsible for examining, evaluating and confirming that both the use of the credit card, as well as the credit card transactions, are appropriate and compliant with policies and approved in a timely manner. An approver shall have appropriate knowledge of the cardholder’s responsibilities and reasonably seek and review related supporting documents in order to arrive at a determination regarding approval. To approve a credit card transaction, the approver must be vested with the authority to approve allocation of credit card expenses to the funding source (e.g., Banner Finance Index) identified by the cardholder.

No cardholder may serve as an approver for their own transactions or transactions to which they were a party, nor may they direct or require another employee or approver to approve such transactions. No approver should report to the cardholder whose transactions have been submitted to them for review.

For purchases charged to external sources, such as grants or grant-related contracts, where the cardholder is the Principal Investigator, the approver is typically the Department Chair or Center/Institute Director with additional approval by the Office of Grants Accounting required.

Banner Finance Index: A six-digit designation that identifies a source of funds.

BOA Works: The Bank of America (“BOA”) web-based platform for credit card reconciliation and reporting processes.

Business Purpose: The necessary, reasonable, and appropriate University need justifying the expense charged to the University credit card. Expenses must support or advance the goals, objectives and mission of the University. The business purpose answers the question as to why the purchase/transaction was made. Each credit card transaction submitted to an approver must be accompanied by a description of the requisite University business purpose which must be written clearly and in easily understood, non-technical terms.

Card Compliance: Card Compliance is a financial unit that shall reside within the Office of the Vice President for Finance/Chief Financial Officer and be responsible for administering the credit card program and ensuring compliance with this policy.

Cardholder: An employee to whom the University credit card is issued.

Expense Delegate: An employee designated by the cardholder to assist in the substantiation of credit card activity and preparation of submissions and other reports to the approver on behalf of the cardholder. The cardholder retains the ultimate responsibility for the appropriate and allowable use and substantiation of all credit card transactions.

Reviewer Delegate: An employee designated by the approver to assist in the review of the substantiation of credit card activity and other related reports submitted by the cardholder. The approver retains the ultimate responsibility for assuring proper use and timely reporting and reconciliation of the credit card by the cardholder.

TAR: The “Transaction Allocation Report” serves as the credit card statement and is available on the BOA Works site. It is the vehicle for monthly credit card reconciliation.

Policy

As with all commitments of University funds, the use of the credit card must fulfill a business purpose of the University.  Use of the credit card is to be limited to specific purchases when other means of procurement or payment are not available or feasible. All University credit card transactions must adhere to University Purchasing policies and the University’s Financial Ethics Statement.

The University credit card may only be issued to those employees authorized in accordance with this policy.

1. Eligibility for Issuance of a University Credit Card

Employees who demonstrate a business need may be authorized to hold and use the University credit card. Issuance of the credit card is not an entitlement, nor reflective of job title or position.

2. Issuance of a University Credit Card

Any employee requesting a credit card is required to complete an application available online at: University-Procurement-Credit-Card-Request-Form.pdf. Card Compliance is available to assist and/or answer questions at cardcompliance@shu.edu

If approved by the employee’s approver, Card Compliance will review and determine whether the employee has established the requisite business need for a credit card and the appropriate spending limits.

If approved for issuance of a University credit card, the employee is required to undergo training by Card Compliance regarding University credit card use before the credit card is activated for use. Training shall include the appropriate, allowable uses and the prohibited uses of the credit card as well as the process of reconciling charges made to the credit card through TAR using BoA Works. Credit card reconciliation is required on a monthly basis. A cardholder must secure approval of their monthly University credit card usage from their approver.

A University credit card will not be issued until the employee has certified to completion of training and receipt of the University Credit Card Policy. Acceptance of a University credit card is affirmation by the cardholder that they will comply with the University Credit Card Policy and acknowledgement that failure to do so may result in discipline, up to and including termination, and other actions by the University, including referral to appropriate law enforcement agencies.

3. University Cardholder Responsibilities

1. 1. 1. By accepting the University credit card, the cardholder affirms that they:
         • shall use the University credit card only in the best interests of the University;
         • shall further a legitimate business purpose when using the credit card;
         • shall document the business purpose for each purchase;
         • shall timely review and reconcile their transactions;
         • shall allocate transactions to the correct accounting codes;
         • shall maintain and preserve all credit card receipts and supporting documents for review, reporting and audit purposes; and
         • shall comply, in all respects, with the University Credit Card Policy.
           
           
      2. Cardholders are responsible for protecting the University credit card as they would any University asset. The card number shall not be posted, emailed, shared, or made visible in any place that is accessible by others. Cardholders are responsible for the physical security of the credit card and the security of the credit card account information.
         
         
      3. The University credit card is authorized for business purposes only. Authorized use is the responsibility of the employee whose name appears on the card. Purchases shall only be authorized by the employee to whom the card is issued.
         
         
      4. Personal use of a University credit card is strictly prohibited.  In the event the cardholder inadvertently charges a personal expense to their University credit card, the cardholder is required to notify Card Compliance immediately and reimburse the University, as instructed.
         
         
      5. Any unapproved or unallowable expense transacted with the credit card, unless the result of fraud or made without the cardholder’s knowledge or consent, shall be immediately reimbursed by the cardholder.

4. Transactions and Spend Limits

1. 1. 1. The University credit card is subject to a single transaction spending limit, which means that the cardholder is authorized, per transaction, to purchase up to a certain limit. The University credit card will be declined if the cardholder attempts, in a single transaction, to purchase more than the cardholder is authorized, per transaction, to purchase. Cardholders cannot split a purchase to avoid the single transaction spending limit, nor can single transactions be split among multiple cards.
         
         
      2. A total monthly dollar spending limit is assigned to a University credit card.
         
         
      3. Limits may be adjusted on a temporary basis, if needed. Requests for an adjustment of a spend limit should be submitted to Card Compliance at cardcompliance@shu.edu and will be evaluated on a case-by-case basis.
         
         
      4. When two or more cardholders are present at the time that the University credit card is to be used (e.g., to pay for a business meal), the highest-ranking employee should generally use their card for the transaction,

5. Allowable Uses of the University Credit Card

1. 1. 1. The University credit card is authorized for business purposes only.
         
         
      2. Examples of appropriate, allowable uses of the credit card include:
         1. 1. Cardholder’s meals, lodging, local transportation and other travel-related expenses occurring while on approved business travel.  Air/bus/train transportation is to be managed by the University’s designated travel management agency as in effect from time to time.
            2. Other meals having a specific business purpose.
            3. Conference and seminar registrations.
            4. Materials, goods, supplies or services in those limited circumstances when no other form of University payment is accepted or timely available.
               
               
      3. Alcohol is an allowable University expense and permitted only when it is clearly related to a specific business purpose, such as a fundraising or donor event, or for the residential priest community. Cardholders are responsible for complying with University policies regarding alcohol and all such purchases must be appropriately documented with itemized receipts that clearly describe the business purpose as well as the names of the participants involved.

6. Prohibited Uses of the University Credit Card
For a list of prohibited uses of the credit card, please see Appendix A.

1. 1. 1. Cardholder Responsibilities
         
         
         1. Each cardholder is responsible for retaining documents supporting all monthly purchases and any returned purchases or credits so that cardholder spending activity can be verified and reconciled on the BOA Works website. All such documents must be attached to the cardholder’s TAR.
         2. Each cardholder must complete their TAR at the close of each monthly cycle. The monthly cycle ends on the 22nd of each month. The cardholder is responsible for ensuring that the necessary business purpose is provided for each transaction, that all receipts and other supporting documents are attached, and that they have signed their TAR.
         3. Each cardholder is responsible for obtaining appropriate approval of their TAR and ensuring that their TAR is submitted to Card Compliance.
         4. If an expense(s) is to be charged to a grant or grant related contract, the cardholder is responsible for ensuring that such purchasing is allowable under the terms of their grant(s)or grant related contract(s).   Such allowed expenses are to be charged to funds that are assigned Banner Finance Index numbers that begin with a 2, 5 or 6. The completed TAR, with supporting documents and approval by the appropriate approver, is then required to be sent to Grants Accounting for review and approval. If approved, Grants Accounting will then forward the TAR to Card Compliance. If Grants Accounting finds that the TAR is incomplete and/or is lacking supporting documents and/or questions whether a transaction is allowable under the term of the grant(s) or grant related contract(s), the TAR will be returned to the cardholder, and the cardholder is required to resubmit a completed TAR that responds to the deficiencies found by Grants Accounting.
         5. Each cardholder must ensure that their completed TAR, approved by the appropriate approver and Grants Accounting, if applicable, with supporting documents attached, is submitted to Card Compliance by the 10th of the following calendar month. If Card Compliance finds that the TAR is incomplete and/or is lacking supporting documents, the TAR will be returned to the cardholder, and the cardholder is required to resubmit a completed TAR that responds to the deficiencies found by Card Compliance.
         6. If an additional Banner Finance Index needs to be added to the credit card, the cardholder’s approver shall submit such request to Card Compliance. If a Banner Finance Index is to be removed from a credit card, the cardholder shall submit such a request to Card Compliance and copy their approver.
         7. Summary reports and other information that capture cardholder spending by transaction and by vendor are available in BOA works. These reports should be reviewed periodically by the cardholder for accuracy. Cardholders are required to review their transactions monthly. Failure to do so will prevent a replenishment of the monthly limit spending allotment and use of the credit card may be restricted until the transactions are reviewed by the cardholder.
            
            
      2. Approver Responsibilities
         
         
         1. The approver is responsible for ensuring authorized and appropriate credit card use and correct allocation of expenses in connection with University business purpose by requiring that all necessary receipts, invoices, and other supporting documents have been supplied for each transaction.
         2. By signing the cardholder’s TAR, the approver exercises critical control by confirming, through approver’s independent evaluation, that the credit card expenses furthered a University business purpose and are in compliance with University policies.
         3. Approvers who approve a TAR or TARs which are lacking supporting documents or otherwise fail to establish the fulfillment of a University business purpose may be subject to discipline, up to and including termination.

1. 1. 1. Cardholders are responsible for attempting to resolve all disputed credit card charges, including any suspected fraudulent activity, directly with the vendor or directly with BOA in the event BOA alerts the cardholder to fraudulent activity on the credit card. The cardholder must also notify Card Compliance of any disputed transactions and/or suspicion of fraudulent activity. If the cardholder cannot resolve the dispute directly with the vendor, the cardholder shall dispute the transaction with Bank of America via BOA Works.
         
         
      2. If the disputed charge is not resolved within the same month during which the disputed charge appears on the cardholder’s TAR, the cardholder must include this charge on their TAR, with the requisite description explaining the disputed charge. The cardholder shall then seek a credit from the vendor, BOA and/or Card Compliance, as applicable, to be applied in the following month. 

1. 1. 1. The University credit card is the property of the University and the financial institution issuing the credit card.
         
         
      2. The University credit card may be suspended or deactivated at any time for reasons which include, but are not limited to, the following:
         
         
         1. Inactivity: When a credit card is not used for a period of six (6) or more consecutive months.
            
            
         2. Cardholder moves to a new department in the University: When a cardholder transfers or otherwise moves to a new department, they may no longer use a previously issued University credit card. If they seek a University credit card for use in connection with their new department, a new application is required to be submitted in accordance with this policy.
            
            
         3. Cardholder leaves the University: When a cardholder is leaving the University, the cardholder’s supervisor shall promptly notify the applicable approver and Card Compliance of the date of separation in order to protect the integrity of the credit card. The cardholder is required to submit the credit card and a final TAR to the supervisor prior to the employee’s last day of employment.
            
            
      3. If a cardholder believes a credit card has been suspended or cancelled in error, they should contact Card Compliance.
         
         
      4. The University may terminate the credit card at any time, for any reason.

13. Lost / Stolen Cards

The cardholder shall immediately report a lost or stolen University credit card or credit card number to the financial institution issuing the card, whose telephone number will appear on the card, and to Card Compliance.

14. Compliance 

Uncorrected and/or violations of this policy may result in spending limit reduction, card suspension, card revocation, payroll reduction, imputation of taxable income and/or discipline, up to and including termination, and referral to appropriate law enforcement agencies.

15. Auditing

As with all University financial activities, the University credit card program is subject to audits to ensure compliance with this policy and to help to ensure that University resources are used efficiently and effectively. Audits help identify opportunities for improvement.

Appendices

• Appendix A: Prohibited Uses of the Seton Hall University Credit Card
• Appendix B: Unallowable Expenses

Related Policies

• Purchasing Policy Overview
• Travel and Receipt Policy

Responsible Offices

Office of the Vice President for Finance & Chief Financial Officer

Approval

Approved by Monsignor Joseph R. Reilly, S.T.L., Ph.D., President, upon the recommendation of the Executive Cabinet on March 5, 2025.

Effective Date

April 1, 2025