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QUESTION 1: Do other agencies have debit cards on their payee accounts? If so what Checks and balances do they use to protect from exploitation? Our supported living and group home clients have VISA cards. We maintain them in each home, locked up and sign out sheet when needed. Then returned with receipts. Our Client Finance team retrieve the scanned receipts each week and also an expense log titled Visa has each transaction recorded and submitted. Our Client Finance team has access to the online banking site for the Visa Cards and reconciles all transaction with receipts and then records those expenditures in the accounting system per category of items. This information is placed on an income statement we produce at the end of the month so all financial data is identified. The Finance team actually activates the card and deactivates the card, if a client leaves the agency the cards are turned into the Finance team and the bank is notified so any remaining funds can be refunded back. The card amounts are uploaded on a weekly basis depending on the needs of the client that week for any additional funds above the set amount already capped. For instance, a client may have a cap amount of $50 each week to be uploaded on the card, but in one particular week they need a new mattress so an additional amount of $100 above the $50 is added to the card. We have an import sheet constantly updating and uploaded into the system. Attached below are the forms and processes and if anyone wishes to know more please contact Judy G. Lee, Accounting Coordinator Finance, Developmental Services, Inc. Auditing Visa Card Receipts Protocol for VISA Card Transactions Sample Bank Instructions Visa Card Import Visa Credit Tracking Sheet We have two accounts per individual. One is used as a checking account to pay monthly expenses and does not have a debit card. The other account has a debit card and no checks. The debit card is used for the individuals personal spending. The level of funds in the debit card account is controlled by the accounting department. Transfers are done upon request from the program manager or individual served in some cases. Program managers, parents, guardians are given view only online access to view balances and transactions in both accounts. There are enough eyes on the account to determine if something looks suspicious. We use debit cards for many of the consumers we are rep payee for. Most of our consumers have bank accounts set up at a local credit union. The credit union allows a secondary checking account. We requested the credit union not allow overdraft protection on the secondary account. Funds are transferred to the debit card account as needed for use which secures the remaining funds in the consumer’s account and limits any fraud/theft risk. The debit cards are kept in our office and are signed out as needed by consumers/staff. We require cards be returned to our office after each use. We also do not give staff the pin# assigned to the debit cards. We have not encountered any problems with purchasing at locations requiring the cards to be ran as debit which would require the pin #. We have found debit cards to be more secure and easier to manage than using checks or cash. Online banking allows us to monitor card use and is more secure than using cash. Checks are still used for most consumers also. Typically to pay any bills or to send with the consumer to the bank to get weekend spending money. Additional Resources: At the May 10 INARF Financial Management Professional Interest Section meeting there was a panel discussion on Managing Client Finances. To review the materials and recording click here. Social Security Administration Guide for Organizational Payees Social Security Administration Best Practices For Maintaining An Effective Representative Payee Accounting System Social Security Administration Training Resources for Organizational Payees The Consumer Financial Protection Bureau (CFPB) created the Managing Someone Else's Money guides to help financial caregivers by walking them through their duties, providing tips on protecting their loved ones from financial exploitation and scams, and offering helpful resources. This information is a compilation of suggestions, ideas, and opinions shared by INARF Members in response to the featured question. This information should not be considered official interpretation or guidance of State or Federal Policy. Additionally, statements within this document do not necessarily reflect an official position or opinion of INARF.