Navy Cash Standard Operating Procedures - Financial Management ...

Working Drafth. For security reasons and to prevent fraud, the new permanent Navy Cash card arriveson the ship in a “pendactive” status and must be activated before it will work (see paragraph8.4.16.a, Card Activation).8.4.20 Close or Suspend an Account Pending Transfer or Discharge?a. Cash Out or Transfer Funds on Card. When a cardholder is being discharged from theNavy or Marine Corps, transferring to an activity that does not have Navy/Marine Cash, or nolonger desires to have a Navy/Marine Cash account, he or she should move all the funds on theNavy/Marine Cash card from the chip (electronic purse) and the strip (Navy/Marine Cashaccount) back to his or her home bank or credit union account using the K80 Cashless ATM.Alternatively, he or she may move all the funds on the strip to the chip and “cash out” the chip atthe disbursing office in accordance with paragraph 8.4.9.b. Monitor Cardholder Transfer Dates. The disbursing office must work closely with thepersonnel office to keep track of cardholders who will be leaving the ship within 30, 60, and 90days. To assist in monitoring transfer dates, the Disbursing Officer should ensure that theprojected “Transfer Date” and “Transfer Type” in each cardholder’s member profile is current(see paragraph 8.4.22, Account Information Update).(1) Shore Report. Based on the transfer dates in the member profiles, a shore reportwill be generated when a cardholder’s transfer is within a 30-day window. The shore report willcontain account balances and will serve as a notice to clear any negative balances before thesecardholders leave the ship.(2) Transfer to Shore Command. The transfer dates in the member profiles will alsobe used to pull accounts of cardholders who have left the ship off the ship’s Navy Cash rosterand transfer these accounts to a “shore command” roster. Once these accounts are transferred tothe shore command roster, a standard set of reports, including the daily Negative Balance Reportand Returned Items Detail Report, will continue to be generated, so that any account activity canbe monitored ashore and any negative account balances can continue to be pursued.(3) Automatic Blocking of ACH Access and Suspending of Navy Cash Account.When transferred to the shore command, a Navy Cash account is automatically suspended andNavy Cash access to the bank or credit union account is automatically blocked. The cardholdercan still use any value remaining on the chip to purchase things on the ship. Blocking ACHaccess only prevents Navy Cash access to bank and credit union accounts from the ship.Suspending an account only prevents online ATM withdrawals and online PIN-based andsignature-based purchases ashore. However, the cardholder can still use the card for signaturebasedpurchases ashore, even when the Navy Cash account balance is negative, at merchantswho process transactions in an offline mode.c. 30 Days Prior to Transfer or Discharge(1) Review Negative Balance Report. The Disbursing Officer should review thedaily Negative Balance Report on a daily basis and ensure cardholders within 30 days of transferor discharge are not listed on the report. The amount of any negative balance in a Navy/MarineCash account represents a debt to the U.S. Treasury funds pool. Even though the amount of thatdebt is not part of his or her accountability the Disbursing Officer is responsible for collecting onthat debt. There are several options available to accomplish this (see paragraph 8.8.1). TheDisbursing Officer should ensure that the cardholder’s Navy Cash access to their home bank orNC SOP Ver 1.12 Chpt 8 Disbursing.doc 8-50 16-Aug-07