The use of bank debit cards to pay incentives to human subjects is very recent at New York University. As more experience is gained with this cash equivalent vehicle, these guidelines will go through several updates. Please refer to these guidelines regularly to keep posted about changes.

See How Do I... Pay Confidential Research Participants? about giving other forms of incentive to human subjects.

Background

This guideline is addressed to you if you are a research investigator, project administrator, or have been designated to process payments to participants for someone doing research involving human subjects.

A brief overview:

• The use of bank debit cards is the preferred means for giving money to research participants.
• Bank debit cards should be used instead of petty cash funds, whenever possible.
• Recipients can use the debit cards to make purchases and to withdraw money from ATMs.
• Currently, NYU employees may obtain debit cards issued only by Chase Bank and only for incentive payments to research participants.
• The debit cards are obtained from Accounts Payable.
• Chase levies a $3.50 fee per card.
• There is a 24 hour turnaround time to receive the cards after they have been requested.
• Groups of cards ordered must be reconciled prior to placing the next order.
• The allotment of this cash equivalent vehicle is considered by the University to be a cash advance.
  • Due to the unique nature of this advance, the otherwise obsolete Request for Advance Form (ADV3000) and the Steinhardt Expense Reimbursement Form are used to order and reconcile use of these debit cards.

Fiscal Responsibilities

The Requestor is a full time (or equivalent) NYU employee who assumes responsibility for:

• Ordering the debit cards in a timely fashion
• Keeping the debit cards separate and discrete for each research project
• Securing the cards within a locked box or safe within a locked cabinet in a locked office
• Maintaining a Debit Card Log
• Having the Debit Card Log available at all times for inspection by the University’s Internal Audit and General and Restricted Accounting units.
• Reconciling their use

The Approver is the department or unit administrator. The research project’s Principal Investigator should not also be the Approver. The Approver is responsible for:

• Authorizing debit card orders
• Ensuring the security of debit cards until distributed
• Reviewing the Requestor’s tracking and reconciliation of debit card orders

Process

Arranging to obtain debit cards

• Make a plan for their use:
  • Generally plan for cards to be issued and reconciled on a weekly basis.
  • Decide the number and dollar value of the cards needed weekly. If this will vary, project as accurately as possible. Indicate anticipated periods of higher and lower volume.
  • Cards are available in any denomination from $25 to $500.
  • Determine beforehand the chartfield to be used to pay the $3.50 per card bank fee.
  • More than one denomination can be ordered at a time.
  • Since these debit cards are cash equivalents, avoid payments of $600 or more to one individual within a calendar year.
    • Otherwise, the recipient’s name, address and social security number must be reported to the IRS.
    • The $600 annual total applies whether single or multiple payments were made.
    • Your department/unit administrator should contact Michael Wallace in Accounts Payable at least a week prior to submitting your first request.
      • Tell them why you will be using cash debit cards and the plan for their use.
      • If feasible, designate an alternate Requestor and alternate Approver for times when the Requestor or Approver is away.

Ordering debit cards

Allow 24 hours for orders to be filled.

• Complete the Steinhardt Request for Advance Form (ADV3000). 
  • The Payee is the card requestor.
  • The Approver is the department/unit administrator. The Approver should not be the research project’s designated Principal Investigator.
  • Bring the form directly to the desk of Mike Wallace at:
    
    Accounts Payable
    726 Broadway, 9^th Floor

• The requestor will be notified by telephone when the cards are ready for pick-up.
• Cards must be accounted for by the requestor prior to requesting the next batch or within 60 days, whichever is sooner.
• Note: This is the only purpose for which the Request for Advance (ADV3000) is used. All other advances are processed via AP Workflow.

Tracking debit cards

Maintain a Debit Card Log to track debit cards received, used and reconciled. Click here for an example of such a log in use.

Upon distribution of a debit card, complete a receipt. The receipt must be signed by either the recipient or the researcher. Click here for an example of a properly completed receipt.

Reconciling debit cards

New debit cards will not be issued until the prior batch has been reconciled:

• Use the Steinhardt Expense Reimbursement Form to reconcile debit cards:
  • You are the payee.
  • Your department/unit administrator is the approver.
  • Separate chartfields may be used for the face value of the debit card and the bank fee, if desired.
  • Attach a copy of the debit card log as documentation.
  • Note: This is the only purpose for which the Steinhardt Expense Reimbursement Form is used. All other advances are reconciled via AP Workflow.
  • If a card is still on hand when you are ready to order the next group of cards, submit the reconciliation for the current batch, noting the card still held and that it will be accounted for once distributed.
  • Remember to either account for that card once it has been given out or return it to Accounts Payable!
  • Avoid repeatedly holding cards when ordering new ones.
  • If you need more cards before the designated reorder day, an interim request may be submitted. Careful planning should avoid such instances, but it is recognized there are times when it cannot be helped (e.g. there is an unexpected spurt in the number of subjects available).
  • Cards must be accounted for within 60 days of receipt.

Missing debit cards

In the event of theft or loss of the debit cards before cards are given to research participants, immediately notify:

• Your department/unit administrator
  

• Office of Public Safety
  212 998 2222

• Department of Internal Audit
  212 998 2772

• David Wong
  Assistant Director, Administrative Services and Facilities Management
  Office of Administration and Finance
  212 998 5074
  david.wong@nyu.edu

Record the date and reference numbers assigned to theft or loss reports (and get copies of the report), including from the New York City Police Department. These reports will be needed to account for the missing debit cards.

Any loss or theft after debit cards have been given to a research participant is the recipient’s responsibility.

Still have questions?

Contact:

• Your department/unit administrator 

• Phyllis Ginsberg
  212 998 4966
  pg6@nyu.edu

Update January 10, 2012