**U.S. Debit Card Program**

**Effective Fiscal 2019**

###### GUIDE FOR BASIC ACCOUNTING AND REPORTING

**U.S. DEBIT CARD PROGRAM**

**EFFECTIVE FISCAL YEAR 2019**

**PREPARED BY:**

**GENERAL LEDGER AND ADVISORY BRANCH**

**FISCAL ACCOUNTING OPERATIONS**

**BUREAU OF THE FISCAL SERVICE**

**U.S. DEPARTMENT OF THE TREASURY**

# Version History

**Background**

Federal Program Agencies (FPAs) are required to hold funds within the U.S. Treasury unless they have independent statutory authority to hold funds outside Treasury, in accordance with Title 31 U.S.C. § 3302, *“Custodians of Money.”*  In addition, 31 CFR Part 208, *“Management of Federal Agency Disbursements,”* requires federal payments to be made via electronic funds transfer. However, one exception is if an FPA disburses payments through a Financial Agent designated by Treasury for reasons of economy and efficiency.  In certain cases in which it’s necessary to make a payment, Direct Deposit may not be preferred or possible. For scenarios such as these, the U.S. Debit Card Program is regarded as a versatile financial solution to non-electronic payments. 1 TFM Part 4a, Chapter 3000 *“Requirements for Scheduling Payments Disbursed by the Bureau of the Fiscal Service”*, Section 30115.10g – “U.S. Debit Card” includes the U.S. Debit Card Program as an option to comply with the EFT provisions of 31 CFR Part 208.

**The Bureau of the Fiscal Service’s Office of Chief Counsel has determined that FPAs do not need independent statutory authority to disburse payments via the U.S. Debit Card Program even though for accounting purposes the funds pool held by the U.S. Debit Card Financial Agent is treated as Funds Held Outside of Treasury.**

The U.S. Debit Card program enables FPAs to issue federal payments to individuals through the use of a prepaid debit card issued by MetaBank.  FPAs load the U.S. Debit Card with a prepaid amount (which is accounted for in a host system with a database of card serial numbers and associated balances) and then issue the card to a Federal payee. The payee may use the card at automated teller machines to make cash withdrawals or at point-of-sale terminals to make retail purchases. FPAs may issue the card as:

· A disposable payment mechanism, whereby a fixed amount of value is loaded onto the card, and, once the value is spent, the U.S. Debit Card is discarded; **OR**

· A reloadable payment mechanism, whereby the FPA can make multiple payments to a payee.

For more information, please visit: https://www.fiscal.treasury.gov/fsservices/gov/pmt/dbtCrd/dbtCrd_home.htm

This scenario shows the USSGL entries and reporting requirements for the U.S. Debit Card Program. For simplicity, the scenario reflects an FPA with funds from an **unexpired Treasury Account Symbol** establishing a U.S. Debit Card account.  The FPA subsequently uses the U.S. Debit Card for a cash advance and/or an expense to pay for the normal costs of operations. This scenario follows USSGL TFM crosswalks.

**Listing of USSGL Accounts Used in This Scenario**

*A beginning Trial Balance is not used in this scenario.*****

**Illustrative Transactions**

**The following transactions represent a Federal agency establishing a new U.S. Debit Card Fund, advancing funds to users, and the issuance of a U.S. Debit Card to payment recipients.  Within this scenario, the FPA is operating from an unexpired Treasury Account Symbol and a direct appropriation.**

**Preclosing Trial Balance**

**Closing Entries**

**Postclosing Trial Balance**

**Financial Statements**

**Reclassified Financial Statements**

�Please also refer to GTAS Edit Rule #5, “Funds Held Outside of Treasury Business Line Balances” within the USSGL Treasury Financial Manual Supplement, Section VII: GTAS Validation and Edits.  (� HYPERLINK "https://tfm.fiscal.treasury.gov/v1/supplements/ussgl.html" ��https://tfm.fiscal.treasury.gov/v1/supplements/ussgl.html�) Agencies must verify that the balances of USSGL 112500 and other cash accounts equal the balance of Funds Held Outside of Treasury (FHOT) reported from the Central Accounting and Reporting System (CARS).

                               Page 15 of 19**FY2019**