DoD believes that increasing the usage of the card will decrease costs in its finance and accounting centers and help comply with certain areas of the Debt Collection Improvement Act
With the recently enacted Debt Collection Improvement Act
of 1996 mandating that the federal benefits distributed to some 10 million Americans be switched from Paper checks to electronic transfers by the end of the year, the methods that many consumers use to pay For merchandise in retail outlets will change dramatically, affecting even nonfood retailers, Shepherd says.
DOD has not fully implemented provisions of the Debt Collection Improvement Act
of 1996 that would assist IRS in levying up to 15 percent of each contract payment to offset a DOD contractor's federal tax debt.
The Debt Collection Improvement Act
of 1996 required use of electronic funds transfer (EFT) for all monthly federal payments--including those by the Department of Veterans Affairs (VA) to veterans and their beneficiaries.
Provisions of the Debt Collection Improvement Act
of 1996, referred to as EFT 99, require that the majority of federal government payments, except tax refunds, be made by electronic funds transfer (EFT) in lieu of checks by January 1, 1999.
In December 2001, GAO testified at a hearing before the Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations, House Committee on Government Reform that the Department of Agriculture, primarily the Rural Housing Service (RHS) and the Farm Service Agency (FSA), faced challenges in implementing key provisions of the Debt Collection Improvement Act
of 1996 (DCIA).