Policy Contact: Zags Travel & Expense Credit Card Administrator, Controller s Office

Effective Date: April 28, 2014 Prepared by: Controller s Office Last Revision: April 28, 2015 Approved by: VP for Finance Policy Contact: Zags Travel & Expense Credit Card Administrator, Controller s Office Title: Policy: Purpose: Zags Travel & Expense Card Policy The Gonzaga University Zags Travel & Expense Card (Card) is a Visa-brand credit card issued by US Bank to eligible University employees and may be used solely for purchases related to official University business for Ordinary, Reasonable and Necessary Expenses. The Card may not be used for personal purchases, unauthorized transactions, or shared with any other individual. Proper internal control should be maintained over the application process, acceptable usage, and accounting for transactions. Gonzaga University established the Card program to improve the efficiency, flexibility, and convenience related to purchasing goods, services, and travel while reducing transaction processing costs. Advantages to the Cardholder: Added convenience to employees during business travel and while conducting University business by reducing the need for reimbursement Faster order placement and receipt of goods Travel insurance and assistance No need to advance money for out of pocket purchases Purchases can be made quickly, even outside of normal business hours Expensing of charges is completed after the purchase and does not hold up the order process Verification and reconciliation of transactions are done within Zags Travel and Expense online, on or off-campus Purchase requisitions and purchase orders are not needed for transactions purchased with the Card Advantages to the Department: Reduces need for check and purchase requisitions More flexibility in managing budgets Less paperwork at the start of the purchasing process Electronic approval and oversight Transactions usually post to Zags Travel and Expense 3-5 business days from date of transaction, depending on the vendor. Effective April 28, 2015 page 1 of 10

Scope: Responsibilities: Posting to Banner, which allows for budget to actual comparisons, is automatic after submission of approved expense report. Advantages to the University: Expedites and streamlines purchasing process Vendors receive payment quicker Uniform training for all Cardholders Electronic system from start to finish Cardholders are empowered to make purchases while controls ensure compliance with University guidelines University funds spent through the Card program allows the University to earn a Rebate, helping to offset central administrative costs Enhanced record keeping and tax compliance All Cardholders and personnel who approve applications for new cards and process and approve Card transactions Cardholders are responsible for the proper use of the Card in compliance with this policy as well as other University policies and must process the charges in a timely manner using Zags Travel and Expense. Prior to receiving a Card, the Cardholder must read and sign the Zags Travel & Expense Card Application & Acknowledgement Form. The Cardholder is responsible for all purchases made with their assigned card. The Cardholder is responsible for obtaining necessary approvals before using the Card to purchase goods or services and for following the guidelines for purchasing set forth below. Once a purchase is made, the Cardholder is responsible for confirming goods are received. Cardholders are responsible for safeguarding the Card as if it were cash and must notify the bank immediately if the Card is lost or stolen. Any Personal Expenses inadvertently charged to their Card and any charges considered Card Misuse will be claimed as Personal Expenses and repaid to the University by making a deposit to the Controller s Office. Cardholders are responsible for notifying and turning their Card in to the Credit Card Administrator upon separating from the University. Expense Approvers are responsible for reviewing and approving Card transactions and receipts using Zags Travel and Expense in a timely manner, ensuring compliance with this and other University policies, and monitoring their Cardholder s use to ensure Spending Limits are appropriate. The Expense Approver is the critical role in the Card process to identify potential or actual Card Misuse. Expense Approvers are also responsible to notify the Credit Card Administrator when a Cardholder has any change in employment status. Expense Approvers are responsible for notifying the Credit Card Administrator and ensuring Cardholders separating from the University turn their Card in to the Credit Card Administrator. Effective April 28, 2015 page 2 of 10

Definitions: Vice Presidents or assigned delegates are responsible for approving all Zags Travel & Expense Card Application & Acknowledgement Form and Zags Travel & Expense Card Change Request Form. Credit Card Administrator is responsible for day-to-day Card program administration and maintenance including responsibilities to: provide training to Cardholders and Expense Approvers distribute Cards interact with the bank to add, change, and delete Cardholders issue and update Cardholder policy & procedures monitor purchases for compliance & propriety analyze purchase trends facilitate resolution of disputed charges manage Cardholder limits and activation levels Billing Cycle The Card has a 30 or 31 day Billing Cycle ending on the 20 th or next business day of every month. The next business day after the statement ending date is when the monthly card limit renews. Business Entertainment Any activity generally considered to provide entertainment, amusement, or recreation and may include meals. The expense must be ordinary and reasonable. All attendees must be accounted for per IRS Publication 463. Business Expense Ordinary, Reasonable and Necessary charges for goods or services that support the ongoing work of the University. Business Meals A meal attended by staff, faculty or students, which may or may not include other individuals not employed by the University and where there is a bona fide Business Purpose. All attendees must be accounted for per IRS Publication 463. Business Purpose Statement of justification that expense is directly connected with the performance of Cardholder duties (e.g. Finalize FYxx budget with Chair or 20xx AJCU Finance Officers Conference in Detroit). Card The Zags Travel & Expense Card (Card) is a Visa-brand credit card issued by US Bank to eligible University employees and may be used solely for purchases related to official University business for Ordinary, Reasonable and Necessary Expenses. Cardholder A person to whom a University Card has been issued. The Cardholder is accountable for all charges made with the Card. Card Misuse Any charge that is determined to be a misappropriation of University funds or that is out of compliance with this and other University policies. These charges will require repayment by Cardholder. Effective April 28, 2015 page 3 of 10

Procedure: 1.0 Applying for a Card Credit Card Administrator Controller s Office staff member responsible for administering the Card program for the University and acting as the main contact between the University and the Bank. Declined Charge Authorization for the charge has been refused. Expense Approver The person that is responsible for reviewing and approving charges. Ordinary, Reasonable and Necessary Expense An expense is ordinary if it is normal and customary. An expense is reasonable if a prudent person would incur the expense in a similar situation. An expense is necessary if it is essential to University business. Personal Expense Any Card transaction not used for business purposes that requires repayment to the University by the Cardholder. Rebate The return of all or part of an amount paid for goods or services to the University s general budget. Spending Limit A dollar limitation of purchasing authority assigned to the Cardholder for each transaction as well as the total of all transactions during each Billing Cycle. Split Transaction When the total transaction amount exceeds the Cardholder s single transaction limit and the vendor splits the total charge into two or more transactions so that they will clear the Cardholder s single transaction limit. This is not allowed. Unacceptable Purchases Any purchase deemed nonessential to the University or its Mission, or is considered to be Card Misuse. Any purchase that is considered restricted and should be purchased through the Purchasing Department using the purchase requisition process. (Please refer to Purchasing of Goods and Services and Special Considerations.) Zags Travel and Expense The University s online expense management system. https://zagstravelandexpense.gonzaga.edu/ 1.1 Who is eligible for a Card? Any authorized faculty or staff member who: o travels on business, or o is involved with business entertaining, recruitment, and/or student or employee development, or o frequently has the need to purchase low dollar items including supplies, subscriptions, dues/memberships, and conference registrations The Card is issued to an individual staff or faculty member, not a department. 1.2 Who is not eligible for a Card? Any individual not employed by the University Effective April 28, 2015 page 4 of 10

Student employees Volunteers Temporary employees 1.3 The Card may be issued under one of the following profiles: Purchaser Profile o For Cardholders to transact non-recurring low dollar value purchases that are not available through a University contract, not on the Purchasing of Goods and Services and Special Considerations list, and with a value less than the single transaction limit. Examples include membership dues, subscriptions and miscellaneous supplies. Traveler Profile o For Cardholders to transact individual business travel and Business Entertainment purchases. Examples include airfare, business meals, conference registration and travel meals. Combined Profile o For Cardholders requiring elements of both the Purchaser and Traveler Profiles above. 1.4 Spending Limit options include: Profile Purchaser Traveler Combined Tier Spending Limits Single Transaction Billing Cycle I $500 $1,500 II $2,500 $7,500 III As Approved* As Approved* I $1,500 $4,500 II $2,500 $7,500 III As Approved* As Approved* I $1,500 $6,000 II $2,500 $15,000 III As Approved* As Approved* * Tier III is available for certain employees requiring limits in excess of Tier II. Cardholder must submit justification for the higher limit and additional approval from the Purchasing Director and Controller's Office is required. To request a higher limit, submit a completed Zags Travel & Expense Card Change Request Form. 1.5 The Card program is a company billed, company paid program. Even though the Card will be issued in the Cardholder s name and the Cardholder will receive a monthly informational statement by mail or online, the bank will not perform a personal credit Effective April 28, 2015 page 5 of 10

check on the Cardholder. All transactions on the Card are the University s liability. The Controller s Office is responsible for paying Card statements. 1.6 The Card will not be ordered until all the following requirements have been met: Complete the Zags Travel & Expense Card Application & Acknowledgement Form including obtaining the proper approval signatures. Submit all completed required documentation to the Credit Card Administrator. Processing time to receive a Card is 2-3 weeks. The Card will be mailed to the Controller s Office. The Controller s Office will notify the Cardholder when your Card is ready for pick up. 2.0 Card Security and Lost, Stolen or Damaged Cards 2.1 Each Cardholder is responsible for charges incurred on their Card. The following are some rules to abide by to help keep each Card as secure as possible. Not adhering to these rules will be considered a violation of this policy. Under no circumstances should the Cardholder ever allow anyone else to use their Card. If another employee needs to make business-related purchases using a Card he or she should apply for a Card. Because email lines are not secure, Cardholders should never email their full 16- digit Card account number to anyone (including both external merchants and internal University employees). When completing online ordering at merchant websites, Cardholders must always verify that the website address begins with https. The s indicates that the website is secured and encrypted. If the website address begins with only http, it is not secured and encrypted and using it can compromise your Card account number. Keep the Card in your possession unless other arrangements have been made to secure the Card within the department until needed. Do not write any portion of the Card number down or share the number with others. Never provide sensitive information, including your Card information unless you initiated the call. Neither the Credit Card Administrator nor US Bank will ask you for this information as they already have access to the records. 2.2 If your Card is lost, stolen or damaged, immediately notify US Bank Customer Service at 1-800-344-5696. Representatives are available 24/7. Next, notify the Credit Card Administrator. 3.0 Usage Guidelines 3.1 The Card may be used for purchases in the normal course of business within departmental budget guidelines. See Purchasing of Goods and Services and Special Considerations. Misuse of the Card may result in revocation of Card privileges, disciplinary action, termination, and/or criminal prosecution. 3.2 Purchases made with federally sponsored funds must be made in accordance with A-21 guidelines. Please contact the Grant Accountant for more information. 3.3 Cash advances are not allowed. Effective April 28, 2015 page 6 of 10

4.0 Card Misuse 4.1 Any charge on the Card not considered to be an acceptable Business Expense or falling under Unacceptable Purchases will be categorized as Card Misuse and a violation of this policy. Every violation discovered will be monitored by the Credit Card Administrator and will result in a notification to the Cardholder and Expense Approver of the infraction. Card Misuse is subject to corrective action which may include notification of Card Misuse, additional training, the suspension or loss of card privileges, disciplinary action, or termination of employment depending on the severity of misuse. 4.2 Intentional and repeated Card Misuse shall result in immediate revocation of Card privileges, and may further result in restitution and/or criminal charges. The University reserves the right to pursue all legal remedies available to it with respect to inappropriate Card usage. 4.3 Any charges considered Card Misuse are required to be settled by either repayment to the Controller s Office by the Cardholder or reduction of subsequent expense reimbursements. As a Cardholder, you agree to settle the amount due in a timely manner. Any amounts outstanding beyond a reasonable period of time will be reported to the cardholder s area Vice President and Human Resources and may be repaid by way of immediate payroll deduction which you authorized by signing the Zags Travel & Expense Application & Acknowledgement Form (see Applicant Acknowledgement section). 4.4 Cardholders shall not Split Transactions in order to circumvent the per-transaction dollar limits. If the Cardholder has a business reason for making purchases that exceed the spending limit, refer to section 10.0. 4.5 Your Card remains the property of the University. You are required to surrender the Card upon request from the Credit Card Administrator. If the Card is not surrendered upon request, it will be considered stolen and appropriate action will be initiated by the University. 5.0 Fraudulent or Disputed Charges 5.1 It is the responsibility of the Cardholder to review Card charges frequently using Zags Travel and Expense or monthly statements to ensure there are no fraudulent purchases being charged to the account. If unauthorized charges appear, contact US Bank Customer Service at 1-800-523-9078 immediately. US Bank will close your current account and send a replacement card to the Controller s Office. Contact the Credit Card Administrator to advise them as well. The Credit Card Administrator may request a replacement card to be rushed should your travel plans require it. 5.2 US Bank deploys a fraud monitoring service that monitors your usual purchasing habits and seeks to identify potentially fraudulent transactions before they can be approved. Should an attempted transaction be stopped, please call US Bank at 1-800-523-9078 to verify the transaction. Please also see section 6.0 Declined Charges. 5.3 By using a Card, the University is offered the consumer protection of having the ability to file a dispute for a suspected or identified errant transaction. Common causes of disputes are goods lost in transit, incorrect charges or correct charges posted to the wrong statement, and receipt of an incorrect item or quantity. Effective April 28, 2015 page 7 of 10

5.4 Below is a flowchart of the dispute resolution process. Cardholder notes discrepancy or error in Zags Travel and Expense. Cardholder attempts to resolve problem by contacting the supplier/vender. If problem resolved, cardholder verifies correction in Zags Travel and Expense. If problem cannot be resolved, cardholder calls US Bank Customer Service within 60 days of transaction date Cardholder fills out dispute form and faxes a copy of the form to US Bank Customer Service. US Bank places the charge in dispute until problem is resolved. 6.0 Declined Charges 6.1 If the Card is ever declined for a bona fide Business Expense, please consider the following: Are you exceeding your monthly or single transaction limit with this purchase? Are you attempting to procure an item at a merchant that would not be considered a normal business vendor? (e.g., jewelry stores, casinos) Are you attempting to procure an item that is not allowed within your Cardholder Profile? (e.g., purchasing airfare with a Purchaser profile) See section 1.4 If you feel the decline should not have occurred, you may contact the Credit Card Administrator or US Bank at 1-800-344-5696 for further information regarding the decline and/or assistance to resolve the problem. 7.0 Returns, Credits, Exchanges & Rebates 7.1 It is the responsibility of the Cardholder to contact the merchant when merchandise purchased with the Card is received that is defective or incorrect. The Cardholder must arrange for a return for credit or an exchange. If a return for credit is made, it is the Cardholder s responsibility to obtain a receipt from the merchant. The refund must be credited to the same Card on which the original purchase was made. It is strictly prohibited for a Cardholder to accept a refund in the form of cash or check. If you have questions, contact the Credit Card Administrator. 8.0 Card Renewal/Expiration 8.1 Your Card is valid through the last day of the month in which it is due to expire. Your renewal card will be mailed to the Controller s Office. The Controller s Office will notify the Cardholder when your Card is ready for pick up. If you do not receive your renewal card or have concerns, contact the Credit Card Administrator. 9.0 Termination of Employment or Closing of Card 9.1 The Zags Travel & Expense Card is property of Gonzaga University and must be surrendered when requested or upon separation from the University. Prior to separation from the University, Cardholders must surrender their Card to the Credit Card Administrator (or their VP who will forward the Card and notify the Credit Card Administrator of termination to update Card records). Do not send Cards via USPS or campus mail. To release the Cardholder from responsibility for the Card, the Credit Card Effective April 28, 2015 page 8 of 10

Administrator will document when the Card is received on the Zags Travel & Expense Card Application & Acknowledgement Form. This action should also be taken if the Card is closed for any other reason. 9.2 It is recommended that if a Cardholder goes on leave, the Credit Card Administrator be notified so that the Card can be temporarily suspended, then reactivated upon notification of their return. 10.0 Changes to Your Account or Spending Limit 10.1 Use the Zags Travel & Expense Card Change Request Form to request changes to your account profile (e.g., Card Profile and Tier or name changes). 10.2 Use the Zags Travel & Expense Card Change Request Form to request temporary or permanent changes to the Spending Limit of your Tier 3 cards. A clear justification for an increase must be provided. Processing time for limit changes is 3 business days following receipt of a completed Zags Travel & Expense Card Change Request Form. 11.0 Processing Your Card Transactions 11.1 Gonzaga University utilizes Zags Travel and Expense (http://zagstravelandexpense.gonzaga.edu) to expense all Card charges. Contact the Credit Card Administrator for training and support. A library of training videos is accessible within Zags Travel and Expense under Help, Training. 11.2 Processing Card transactions should be done in a timely manner (within 15 days of the transaction). Any outstanding charges as of May 20 th need to be processed and approved by May 25 th. This will help with fiscal year end cutoff by ensuring transactions are booked into the proper period. Contact your Expense Approver or the Zags Travel and Expense Program Administrator with any questions regarding this expense program. 11.3 Any transaction, or portion of transaction that is a Personal Expense must be marked as Personal Expense (do not reimburse) and is required to be settled by either repayment to the Controller s Office by the Cardholder or reduction of subsequent expense reimbursements. As a Cardholder, you agree to settle the amount due in a timely manner. Any amounts outstanding beyond a reasonable period of time will be reported to the cardholder s area Vice President and Human Resources and may be repaid by way of immediate payroll deduction which you authorized by signing the Zags Travel & Expense Application & Acknowledgement Form (see Applicant Acknowledgement section). 11.4 Original itemized receipts are required to be uploaded and attached to the corresponding charge in Zags Travel and Expense. E-receipts may take the place of an itemized receipt if the merchant provides one. If an itemized receipt is lost, every effort should be made to obtain a duplicate receipt from the vendor. As a last resort, you can use the Missing Receipt Affidavit, available in the Receipts drop down menu on an Expense Report missing receipts, as support of your transaction. This should only be used on rare occasions and will not be acceptable as a normal practice. 11.5 Business Meals or Business Entertainment require attendee s names to be entered into Zags Travel and Expense. 11.6 All expenses require a documented Business Purpose. This explains the business reason money was spent. Please be as detailed as possible to explain your expense. Effective April 28, 2015 page 9 of 10

11.7 Although the University is tax exempt on its income, all purchases made by the University are subject to sales or use tax. Taxes should be included in the cost of all purchases; if erroneously not included in the purchase total, the tax liability will be calculated, accrued and charged to the Cardholder s general leger account. Items subject to use tax must be identified in Zags Travel and Expense by the Cardholder. These types of items are generally tangible items purchased online that are shipped to and used in Washington. If sales tax for these items is not charged, please use the check box labeled Tax Not Paid in Zags Travel and Expense so the proper tax can be assessed. Revision History Date Section Notes/Comments/Changes Approved by: 4/28/15 Policy formally approved and adopted. Chuck Murphy, Finance VP Effective April 28, 2015 page 10 of 10