Credit Card Policy

Rhode Island School of Design (“RISD”) is committed to the responsible stewardship of its financial resources. RISD utilizes credit cards issued to authorized individuals to enable certain types of payments while performing RISD business. All RISD credit card transactions must adhere to RISD procurement policies.

This policy pertains to any faculty or staff member who holds a RISD-sponsored credit card (Purchasing Card and/or Travel & Entertainment Card), anyone who acts as a delegate or approves transactions for a RISD credit card, and/or anyone who authorizes an individual to obtain or use a RISD credit card.

The RISD credit card program currently supports two types of credit cards. All credit card transactions must adhere to RISD procurement policies and each transaction must be substantiated, include supporting documentation, and submitted for departmental approval and then to Procurement Services in a timely manner (30-days).

Approver: an individual responsible for confirming that transactions are appropriate, compliant with policies, and approved in a timely manner.

Cardholder: the individual authorized to hold and use a RISD credit card as a purchasing agent for the department, and ultimately for the school. Faculty & staff may be cardholders.

Egencia: RISD’s authorized system for online travel booking (air travel, hotel, train, and car reservations). Cardholders can obtain login credentials by contacting Procurement Services.

Workday: RISD’s authorized system for online expense management, including all credit card activity substantiation, report preparation, receipt retention, and approval workflow.

Dean or Department/Office Head: an individual who is a department chair, department head, or who oversees a RISD office.

Departmental Purchases: expenses associated with the purchase of goods or services to support a RISD department, center, program, work group, or organization.

Departmental Purchasing Card: one of the cards available through the RISD credit card program, which is used for departmental purchases and may be used by those individuals who have the responsibility to purchase on behalf of their department. The Departmental PCard holder is typically aligned with a departmental coordinator who has been trained on departmental purchasing policies and procedures. The Departmental PCard should be used for low dollar departmental goods and services (typically less than $2,500) that cannot be purchased through the punchout portal or from contract suppliers.

Departmental Purchasing Card Statement Cycle: one calendar month, beginning on the first day of the month and ending on the last day of the month.

Delegate (Procurement & Expense Specialist roles in Workday): an individual designated by the cardholder to assist in the substantiation of credit card activity and preparation of reports on behalf of the cardholder. The cardholder retains ultimate responsibility for the appropriate and allowable use and substantiation of all transactions associated with their RISD credit card.

Individual Business Expenses: expenses such as travel, business meals, books/materials, etc., to support an individual’s job duties, teaching, or research associated with an individual’s work that is being performed as part of their RISD responsibilities.

Low Dollar Purchase: goods or services with a total transaction value less than $2,500 ($2000 with T&E Card).

T&E (Travel & Entertainment) Card: one of the cards available through the RISD credit card program, which is used for individual business expenses, including travel. The T&E card should be used for an individual’s business expenses while traveling or other reimbursable business expenses. This card may also be used to pay for individual guest travel.

RISD Credit Card Program: the overall program that supports the use of departmental PCards and T&E cards.

RISD credit cards are financial tools used by authorized individuals to enable certain types of payments while performing RISD business.

The RISD credit card program currently supports two types of credit cards:

• Departmental & individual purchasing cards (“PCard”) which simplify the purchase of low-dollar goods and services that cannot be readily purchased through the punchout portal or through other contract suppliers, and
• Travel and Expense Cards (“T&E Card”), primarily used to pay for travel, entertainment, food-related and individual business expenses (issued to individuals only).

All credit card transactions must adhere to RISD expense policies. Each transaction must be substantiated with supporting documentation, and submitted via Workday for departmental approval and then to Procurement Services in a timely manner (30 days). Credit card activity substantiation must be authorized by the department/division head and submitted for approval within Workday.

New cardholders must complete the acknowledge that they have reviewed and will comply with the RISD Credit Card Policy. Failure to use the credit card in compliance with RISD policy can result in revocation and possible disciplinary action, as well as pay deduction for charges deemed personal in nature or against RISD policy. Fraudulent use of the credit card can result in employment termination and criminal charges.

SUMMARY of RISD CREDIT CARD PROGRAM RESPONSIBILITIES

The responsibilities of each person involved in the RISD credit card program are explained below.

• Approver
  Any RISD credit card approver is responsible for examining the card transactions to confirm the charges are appropriate and comply with RISD policies. Expense reports, which contain T&E Card transactions, are first routed to a supervisor of the cardholder for managerial approval. This occurs prior to submission of the expense report to a secondary individual for cost center approval depending on the dollar amount of the transaction/expense report. Procurement Services will then review all expenses and expense reports for appropriateness and allowability under RISD policy.
• Cardholder
  A RISD cardholder is authorized by Management and the Director of Procurement as the authorized user of the card. Cardholders are responsible for the security of the RISD credit card and are not authorized to share the card or card number with other parties.
• Delegate (Procurement & Expense Specialist roles in Workday)
  An expense delegate may be assigned by the cardholder and is responsible for reviewing each credit card transaction in Workday on a regular basis. This includes verifying the accuracy of the transactions, documenting the business purpose, recording the appropriate cost center, and notifying the cardholder that the report is ready for submission.
• Procurement Services
  Procurement Services reviews RISD credit card transactions on a sample basis and all expense reports; this does not replace the RISD Dean or VP responsibility outlined above. Procurement Services will direct the cardholder to correct any errors. If necessary, Procurement Services may correct the department’s error and will provide the department with a copy of the accounting entry. If excessive or repeated errors occur, additional training may be required. In the unlikely event of chronic and irreconcilable accounting difficulties, the RISD credit card may be revoked or result in disciplinary action to the cardholder.

1. TIMELINESS of SUBSTANTIATION

RISD’s T&E Card transactions must be substantiated in an expense report, and approved by the department within 30 days of the expense being incurred. RISD departmental purchasing card transactions must be submitted and approved by the department within 30 days of the monthly statement closing date.

2. CARD SPENDING and TRANSACTION LIMITS

The default spending and transaction limits on departmental purchasing cards are:

• PCard (general supplies)
  Single Amount Limit: $2,500
  Daily amount limit: $5,000
  Monthly limit: $20,000
  
  
• T&E Card (food, travel, lodging, entertainment)
  Single Amount Limit: $2,500
  Daily amount limit: $5,000
  Monthly limit: $10,000 Procuring goods or services that exceed an individual’s card spending limit must be ordered according to the college’s Procurement Policy. Requests for higher transaction and/or monthly limits increases may be submitted to Procurement Services via a Credit Line Increase Request in Etrieve. Procurement Services will confirm or deny a request within 48 hours of receipt of the completed form.

3. ALLOWABLE USES of RISD CREDIT CARDS

The T&E Card and PCard are designed and intended to be used to facilitate and support different types of financial transactions.

The PCard facilitates the purchase of goods or services to support a RISD department, center, program, work group, or organization. This card should be used for low dollar departmental goods and services (typically less than $2,500) that cannot be purchased through the Workday Punchout suppliers or from contract suppliers.

T&E Cards are the primary way to pay for travel and individual business expenses. These types of expenses should support an individual’s work that is being performed as part of their RISD responsibilities. These may include expenses such as travel, business meals, and other miscellaneous expenses to support an individual’s job duties, teaching, or research.

Entertainment expenses charged to RISD must be in RISD's interests. Federal law requires that anyone entertaining a guest on behalf of the college will identify all the guests being entertained and a provide a detailed business purpose justifying the expense on the expense report. It should be noted that policy dictates that travel and entertainment expenses must be prudent in nature. For example, first class airfare is restricted.

4. UNALLOWABLE USES of RISD CREDIT CARDS

RISD credit cards may not be used to hire or purchase these goods and services:

• hazardous materials
• chemicals
• capital equipment
• computers
• independent contractors
• entertainers
• temporary employees
• personal purchases
• gift cards
• purchases from suppliers participating in the Marketplace or from contract suppliers

In general, purchases that require advanced documentation such as insurance, service level agreements, and pricing quotes should be paid via requisition or contract. RISD enables credit cards using standard merchant category codes to restrict the purchase of other prohibited categories of goods and services.

5. CARDHOLDER RESPONSIBILITIES

Those requesting a RISD credit card must submit and initial the electronic Etrieve application affirming that they have reviewed and agree to comply with RISD policy and any applicable sponsor restrictions, and understand that card issuance and continued use requires the successful completion of training as well as policy compliance.

Cardholders agree to secure the physical credit card as well as the credit card number and not share the card or card number details. Cardholders further agree to use the credit card for business purposes only and promptly reimburse RISD for any non-business transactions. If the cardholder fails to reimburse RISD within 30-days, the funds may be deducted from the cardholder’s pay. Any unapproved or otherwise unallowable expenses transacted with the credit card, with the exception of charges deemed fraudulent and made without the cardholder’s consent or knowledge, must be reimbursed to RISD in a timely manner. Failure to use the credit card in compliance with RISD policy can result in revocation and possible disciplinary action. Fraudulent or improper use of the credit card can result in employment termination and criminal charges.

6. RECORD KEEPING

Images of receipts for RISD credit card transactions must be attached to the appropriate transactions in Workday. A Missing Receipt Affidavit must be completed by the cardholder and attached to any transactions if the original receipt is unavailable. Missing Receipt Affidavits must be completed by the cardholder and responsibility for these affidavits may not be delegated.

When a meal or event is attended by multiple levels of management from RISD, the most senior staff or faculty member in attendance from the sponsoring department must settle any payment.

7. ACCOUNT TRANSACTION RECONCILIATION

a) PCard Transactions

Cardholders must review their purchases in the settlement system (Workday) as soon as possible. Transaction reconciliation must be completed weekly. It is the cardholder’s responsibility to review, obtain, and include/upload appropriate back-up documentation (sales receipts, invoices, packing slips, or other proofs of purchase to ensure receipt of all goods charged) as part of the account reconciliation process. The goods should be easily identifiable on the proof of purchase. All receipts should be to the credit card transaction for the purchase listed on the receipt, or transaction on the settlement system. Failure to do so may result in card cancellation. Upon reconciliation, all supporting documentation will be saved in the settlement system. If for some reason the cardholder cannot provide an appropriate receipt for a transaction, they must provide a Missing Receipt Affidavit. All cards are subject to audit by Procurement Services.

b) T&E CARD Transactions

Cardholders must review their purchases in the settlement system (Workday) as soon as possible. Transaction reconciliation must be completed weekly. It is the cardholder’s responsibility to review, obtain, and include/upload appropriate back-up documentation for all transactions as part of the account reconciliation process. The expenses should be easily identifiable on the proof of purchase. All receipts should tie to the credit card transaction for the purchase listed on the receipt, and the transaction on the settlement system. Failure to do so may result in card cancellation. Upon reconciliation, all supporting documentation will be saved in the settlement system. If for some reason the cardholder cannot provide an appropriate receipt for a transaction, they must provide a Missing Receipt Affidavit. All cards are subject to audit by Procurement Services.

8. AUDITING

Procurement Services reviews various reports provided by our credit card provider on a monthly and quarterly basis. Random audits of credit card activity and cardholder missing receipt logs are conducted by Procurement Services and RISD’s external auditor. The primary purpose of an audit is to ensure the proper expenditure of funds under this program. Failure on the part of a cardholder to properly implement credit card procedures may result in further guidance and training, or in a severe situation, revocation of the RISD credit card, or disciplinary measures.

9. CARD RENEWAL and CANCELLATION

Procurement cards are renewed automatically and are sent to RISD’s Procurement Services about 30 days before the expiration date of the card. Any changes to policy or procedures that may have occurred since the initial agreement was entered in to would be reviewed at that time and may require the cardholder to sign a revised cardholder agreement form. To cancel a procurement card, please call JP Morgan Customer Service immediately at 1-800-270-7760 to inform them that the card is to be shut off. Please e-mail epro@risd.edu to confirm that the card has been deactivated.

10. SECURITY

• Physical Credit Card and Credit Card Number Security
  RISD credit cards must only be used by the cardholder in whose name the card is issued. Sharing of cards or card numbers is prohibited.
• Lost or Stolen Credit Cards
  It is the responsibility of the cardholder to immediately report a lost or stolen card to J.P. Morgan by calling 1-800-270-7760. The next step is to report this information to Procurement Services via e-mail for follow-up.

This policy was last reviewed/modified on: 10/27/2023

Next scheduled review: As needed

Issuing Office

Controller's Office

Responsible Officer

Senior Vice President, Finance and Administration

Individuals/offices required for review and changes

Controller

Director of Procurement Services