1301 Overview

This chapter establishes the Department of Veterans Affairs’ financial policies regarding the accounting and reporting of unredeemed coupons by the Veterans Canteen Service (VCS).

Key points covered in this chapter:

• VCS was established in 1946, in accordance with 38 U.S.C. Chapter 78, to furnish merchandise and services at reasonable prices to Veterans, caregivers, and visitors’
• VA establishes, maintains, and operates Veteran Canteens, where deemed necessary and practicable, at VA medical centers and other Department establishments where similar essential facilities are not reasonably available from outside commercial sources;
• Coupons may be purchased to be used in lieu of cash at Canteen facilities, similar to gift certificates or gift cards used at retail stores;
• VCS will maintain a log of the numbered coupon books and cards to ensure they are not subsequently issued or taken without being purchased;
• VCS records a liability for any coupons or gift cards remaining available for redemption until the coupons or gift cards are redeemed;
• Amounts received for coupon sales will be transferred to the VCS revolving fund account 36X4014; and
• The liability for unredeemed coupons shall be reflected in VA’s consolidated financial statements.

1302 Revisions

Section	Revision	Requesting Office	Reason for Change	Effective Date
Various	Reformatted policy and completed full review.	OFP (047G)	Full review of policy	July 2024
Appendix A	Removed Image for Patriot Bucks, VCS Gift Card, and VCS Patriot Café to align with HTML publishing format.	OFP (047G)	Full review of policy	July 2024

1303 Definitions

Coupon – A certificate, document, or gift card (e.g., Patriot Buck Coupons or Patriot Buck gift cards, etc.) entitling the holder to merchandise or services from the issuing entity.

Gift Cards – A plastic charge card that is “loaded” with a monetary value (e.g., blue or green gift cards) that can be used to buy merchandise at Veterans Canteen Store (VCS).  

1304 Roles and Responsibilities

Veterans Canteen Service (VCS) is responsible for administering the VCS coupon program, including the proper accounting, and reporting of unredeemed coupons.

Veterans Canteen Service, Central Office (DVCSCO), is responsible for the administrative control of the VCS coupon program.

Chief of the Local Canteen is responsible for establishing controls for the security of unpurchased coupons stored at the local canteen, and for maintaining a log of unpurchased coupon books and gift cards.

1305 Policies

130501 Authority for Veterans Canteen Service

1. VCS is an independent unit within VA, authorized by 38 U.S.C. Chapter 78.
2. VA establishes, maintains, and operates Veteran Canteens at VA medical centers and other Department locations where similar essential facilities are not reasonably available from outside commercial sources.
3. VCS offers merchandise and services for sale.
4. The use of coupons and gift cards in VCS establishments is authorized by VHA Directive 1008, Veterans Canteen Service.

130502 Coupons and Gift cards

1. Coupons and gift cards may be purchased for use in lieu of cash at Canteen facilities, similar to gift certificates or gift cards used at retail stores.
2. Coupons may be purchased by Veteran Service Organizations (VSOs), Voluntary Service Program members, and Medical Centers and distributed to Veterans at various service events.
3. Coupons and gift card sales are recorded when purchased and a liability is created. The liability is tracked by Stored Value Solutions (SVS), a private third-party vendor, via a secure portal using the unique number assigned to each card.
4. Coupons are sold by the book and will be recorded in the Patriot Coupon Log with the customer’s name and the serial number of the coupon book(s) purchased. This log shall be kept in a safe at the canteen along with any and all unsold books. The log will be reconciled at the end of each business day to ensure records are properly updated. Coupons shall be defaced when presented for payment.
5. Gift cards are available to customers to purchase at VCS locations. Reference Appendix A for the types of coupons and gift cards available for purchase.

130503 Distribution of Coupons from VCSCO to Local Canteen Stores

1. VCSCO distributes the coupon books and gift cards to the local VCS canteens.
2. Upon receipt, the local VCS Chief will store coupons in a secure manner.
3. VCS will maintain a log of the numbered coupon books and gift cards to ensure they are not subsequently issued or taken without being purchased.

130504 Sale of Coupons

1. VA organizations (e.g., VSOs, Medical Centers, etc.) that need to buy coupons in bulk or where a VA canteen is not present, may make purchases from VCS Central Office using the VCS Gift Card Order Form. A link can be found in the authorities and references section.
2. VCS will collect payment for coupons in the form of cash, check, or credit/debit card. Checks for the purchase of coupons will be made payable to the VCS not the VAMC or VA.
3. Use of federal funds to purchase coupons or gift cards is limited. Refer to Volume XVI, Chapter 1B Government Purchase Card for Micro-Purchases, Volume XVI, Chapter 1C Government Convenience Checks and Volume II, Chapter 4 Awards, Ceremonies, Food or Refreshments, Gifts or Mementos for approved uses.
4. VCS will recognize the total amount of coupons sold as an increase to Cash and Unredeemed Coupons – Canteen liability.
5. VCS will account for the total amount of all unredeemed coupons as a liability.
6. Amounts received for coupon sales will be transferred to the VCS revolving fund account 36X4014.

130505 Redemption

1. Coupons, provided in books, will not be accepted by the canteen if previously detached from the book unless the VCS Chief determines that the acceptance of detached coupon is justified. This helps to prevent non-entitled coupon holders from obtaining merchandise or services from the issuing entity.
2. Coupons will be redeemed for cash under the following circumstances:
   1. By patients and family members for use in coin-operated vending machines.
   2. To reimburse contractors who have received payment in the form of coupons from patients or family members for services provided (e.g., haircut).
   3. By patients or family members in possession of coupons at the time of discharge.
   4. By the executor of the estate of a deceased member. A death certificate will need to be presented.
3. When coupons are used to make a purchase, the unredeemed coupon liability account will be reduced with a corresponding increase to the sales account.
4. Unredeemed coupons remain open until used, since the coupons do not have an expiration date.
5. VCSCO will report nationwide unredeemed coupons as Other Public Funded Liabilities on its Consolidated Balance Sheet with an appropriate note disclosure.

1306 Authorities and References

• 38 U.S.C. Chapter 78, Veterans’ Canteen Service
• VHA Directive 1008, Veterans Canteen Service
• VHA Directive 4721, VHA General Post Funds – Gifts and Donations
• VCS Gift Card Order Form

1307 Rescissions

Volume VI, Chapter 13, Unredeemed Coupons, dated July 2022.

Appendix A: Previous Policy Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	Reformatted policy and completed full review.	OFP (047G)	Full review of policy	July 2022
1303 Definitions	Updated Coupons and Gift card definitions.	OFP (047G)	Clarified examples of coupons and gift cards	July 2022
130501 Authority for Veterans Canteen Service	Added language to explain VCS authority.	OFP (047G)	Clarified specific authority	July 2022
130501 Authority for Veterans Canteen Service	Clarified language about coupons and gift cards. Changed reference from ‘handbook’ to ‘directive’.	OFP (047G)	Correction	July 2022
130502 Coupons and Gift Cards	Clarified language of Coupons and gift cards.	OFP (047G)	Update	July 2022
130504 Sale of Coupons	Added language to clarify sale of coupons.	OFP (047G)	Added Clarity	July 2022
1306 Authorities and References	Updated all links to references.	OFP (047G)	Corrected broken links	July 2022
Various	Reformatted to new policy format and completed five-year update.	OFP (047G)	Reorganized chapter layout	March 2019
1303 Definitions	Added gift cards to the definition of Unredeemed Coupons.	OFP (047G)	Coupons are now available in paper and gift card form	March 2019

Appendix B – VCS Gift Card and Coupon Quick Reference Guide

1. BLUE GIFT CARDS
   1. Use: Customer purchases VCS gift card to give as gift
   2. Max Loadable Amount $500
   3. Reloadable (Top Up Gift Card)
   4. Order process: Blue Gift Cards are auto-replenished. For concerns or questions about inventory, contact: VCSB2BGiftCardOrders@va.gov
   5. VCS Blue Gift Card Display Guidance: 
      1. Display cards and envelopes in acrylic holders at retail & coffee registers.
      2. VCS is asked to place a few blue gift cards and envelopes in the food cashier drawers for customer requests. 
      3. Use a 4 Tier Acrylic Gift Card Holder (item #1482) and Gift Card Holder Sign with Adhesive Back ,(item #1554)
      4. Place order from VCS Warehouse
         
2. SERVICE GIFT CARDS
   1. Use: Medical Center to give to Veterans and/or employee for appreciation, etc.
   2. Must use Promo funds to purchase
   3. Max Loadable Amount $75
   4. Non-Reloadable
   5. Order Process: VCS Warehouse: Service Card (green) Item #1485 (1 pack= 10 cards)
      
3. PATRIOT BUCKS
   1. $1.00 PATRIOT BUCK COUPON BOOK
      1. Use: VSOs / Vol Service/ MC to purchase for use for various Veteran events. (not to be given to VA employees)
      2. No cash back allowed*
      3. Order Process: VCS Warehouse: $1 Patriot Bucks Coupon Book Item #5094 (1 carton= 2000 books)
      4. Most common uses are Veteran bingo events or Veteran incentives.
   2.  $5.  PATRIOT BUCK GIFT CARD
      1. Use: VSOs / Vol Service/ MC buys to use for various Veteran events. (not to be given to VA employees)
      2. Minimum Load Amount $5.00. Max Loadable Amount $50
      3. Reloadable (Top Up Gift Card)
      4. Order Process: VCS Warehouse: Patriot Bucks Gift Card Item #1558(1 pack= 25 cards)
         
         *Only families of deceased Veteran may redeem Patriot Bucks back for cash.
         **MCs may not use Promo funds as form of payment for purchasing Patriot Bucks.
         ***VA employees are not allowed to use Patriot Bucks to pay for merchandise or food.
         
4. COUPONS: FREE MEAL, BEVERAGE, COFFEE
   1. MC/ Vol Service purchase for service recovery or special events
   2. No cash back allowed
   3. Order Process: VCS Warehouse Item #’s:
      1321 – Free Beverage (50/pk)                             1322 – Free Coffee (50/pk)
      1325 -Service Recovery Pocket Folder               1326 – Free Meal (25/pk)
      
5. HUD-VASH / HOMELESSNESS PROGRAM*
   1. Maximum Loadable Amount $50
   2. Non-Reloadable
   3. Order Process:  VCS Warehouse. HUDASH/Homelessness. Item $1559 (1 pack = 100 cards)
      
      *Only local funds can be accepted as payment.
      
6. *FISHER HOUSE
   1. Maximum Loadable Amount: $50
   2. Non-Reloadable
   3. Order Process: VCS Warehouse: Fisher House Item $1551 (1 Pack+100 cards)
      
      *Only local funds can be accepted as payment
      
7. BULK GIFT CARD PURCHASES
   Note: Available to agencies needing large quantities of gift cards.
   1. Minimum order is 50 cards.
   2. Gift cards Min $5, Max $75 and are non-reloadable.
   3. The agency will fill out the order form and email it to VCSB2BGiftCardOrders@va.gov
   4. Gift Cards will be shipped directly to the customer and will be unloaded for security purposes.
   5. The customer will reach out to VCSB2BGiftCardOrders@va.gov once the cards have been received.