Fiscal Year Closing Guidance

Message From the Controller

I encourage each of you to continue your efforts to control expenses. It is important that we carry this effort through to the end of the fiscal year.

While we must make accruals for goods received and services rendered, we must also control discretionary activity. This does not mean curtailing business; but it does mean making prudent choices, deferring or eliminating noncritical activity, and not purchasing goods or services at year-end simply because we have available budget funds.

We need to encourage our contractors to bill us in a timely manner so we can recognize the expense prior to the close of accounting period 13.

The following instructions will assist you, when appropriate, in helping the Postal Service close its financial books in a timely and efficient manner. Please note the minimum expense accrual is $10,000.

I. Instructions for Fiscal Year Closing

All organizations are requested to limit their expenditures to essential spending. Accordingly, all vice presidents should review discretionary spending to ensure the Postal Service attains its financial target for this fiscal year (FY).

The government fiscal year comprises 365 days (366 in leap years) always ending on September 30. However, for internal reporting purposes, the Postal Service reporting cycle comprises 13 accounting periods (APs) of 28 days each, totaling 364 days. This year the Postal Service reporting cycle for internal reporting ends on September 7, 2001. AP 14 is an estimation period used to convert the Postal Service's internal reporting cycle to the government fiscal year.

The instructions and reporting dates in this Postal Bulletin supplement procedures followed during the normal AP or quarterly reporting schedule.

II. Capital and Expense Commitment or Accrual Activities

A. Capital

Purchasing will not accept capital and expense requisitions after August 17 unless work is currently under way on advance requirements or the buying manager grants an exception. Capital commitments, particularly Postal Service support equipment, should also be limited to essential needs.

Purchasing will attempt to issue the required contract in time for the San Mateo Accounting Service Center (ASC) to process against FY 2001 funds. Contracts for requisitions requiring issuance of a solicitation or negotiation with vendors received prior to September 7 may not be issued in time for processing against FY 2001 funds. Requisitions received September 8 and after will be processed against FY 2002 funds.

Purchasing will process all requisitions for the issuance of contracts against FY 2001 funds according to the following priorities:

Priority 1 - Capital commitment requisitions.

Priority 2 - Expense commitment requisitions.

Commitment documents with award dates prior to and including September 7 must be forwarded to reach the San Mateo ASC not later than September 10. Appropriate receiving reports or certified invoices for goods and services received by September 7 must be forwarded to the San Mateo ASC for receipt no later than September 10. Please expedite processing of receiving reports and certified invoices as these documents are used to charge costs to the proper FY. Additionally, review contracts to ensure sufficient funds are available to cover accruals.

B. Unpaid Expenses or accruals for goods and services received September 7 and prior. Expense accrual limit for FY 2001 is $10,000.

If it is impossible to furnish a certified invoice in time to reach the San Mateo ASC by September 10, a minimum of $10,000 may be accrued per contract sequence number or miscellaneous (noncommitment) purchase or service.

CONTENTS

The Postal Bulletin is also available on the World Wide Web at http://www.usps.com/cpim/ftp/bulletin/pb.htm for customers and at http://blue.usps.gov for employees.

Administrative Services

Correction: PS Form 3600-EZ, Postage Statement -
First-Class Mail - Easy Nonautomation Letters, Cards,
or Flats - Permit Imprint

Customer Relations

Mail Alert

National Stamp Collecting Month: Special Die Hub

Customer-Contact Personnel: One-Time Benefit Check to
Social Security Recipients

Postmaster Finder - Postal History Database Available
to the Public

Domestic Mail

DMM Correction: Labeling List Changes

DMM Revision: Parcel Post ZIP Code Deletion

DMM Revision: Information-Based Indicia

POM Revision: Delivery Confirmation Service and
Signature Confirmation Service

Special Services Barcoded Label Deadline - IRS
Extension

Reminder: Free Mail Program for Members of the
Armed Forces

Notice: Coming Soon - Online Shipping e-Label at
www.usps.com

Overseas Military Mail

Finance

Accountbooks and Statement of Accounts for Postal
Fiscal Year 2002

Fraud Alert

Withholding of Mail Orders

Domestic Orders

Invalid Express Mail Corporate Account Numbers

Missing, Lost, or Stolen U.S. Money Order Forms

Missing, Lost, or Stolen Canadian Money Order Forms

Counterfeit Canadian Money Order Forms

800 Number Available to Verify Canadian Money Orders

International Mail

IMM Revision: International Mail - Direct Sacks of Printed Matter to One Addressee (M-Bags)

Philately

Stamp Announcement 01-39: Holiday Celebrations - EID

Pictorial Cancellations Announcement

Correction: Stamp Announcement 01-35, Woody Wagon Presorted Stamp

Special Cancellation Die Hubs

Post Offices

Post Office Changes

Processing International Mail Trays

Notice and Correction: Proper Identification of Damaged Mail Transport Equipment Rolling Stock

Notice and Correction: Removal of Trash From Mail Transport Equipment

Postal Employees

Vehicle Maintenance Facilities: Safety and Health Inspections

Thrift Savings Plan Fact Sheet

Retail

Announcement: Commercial Mail Receiving Agency (CMRA) - Toll-Free Number and Web Site

Reminder: Commercial Mail Receiving Agency (CMRA) - Relocation Procedures

Reminder: Commercial Mail Receiving Agency (CMRA) - August 1, 2001, Compliance Date For Addressing Standards

Items Authorized for Sale in Self Service Vending Machines

Postal Bulletin Semiannual Index

Postal Bulletin Distribution

Postal Bulletin Index

Semiannual Index PB 22055 (7-26-01)

Complete PS Form 8163, Request for Fiscal Year 2001 Expense Accrual, a copy of which is found on page 5 of this Postal Bulletin. Documentation supporting accruals must be attached (see PS Form 8163 for examples of proper vendor documentation). Processing of all FY 2001 documents ends on September 14. Documents received at the San Mateo ASC pertaining to activity occurring September 8 and later will be recorded in FY 2002.

III. Liquidation of Accruals

When submitting an actual certified invoice, include the statement "Accrued to FY 2001" on the face of the document.

Accruals must be liquidated as soon as possible. Offices must monitor their accruals and payments to ensure that the accruals are properly liquidated. All FY 2001 accruals processed by the San Mateo ASC that remain unliquidated at the end of AP 06, FY 2002, will be reversed automatically as a prior year credit. Subsequent payments will be charged to the appropriate budget finance number as a FY 2002 expense.

Please use the following schedules relating to FY 2001 closing:

Schedule I - Accrual Processing Information (below)

Schedule II - Submission Processing - September 7 and Prior (page 7 in this Postal Bulletin)

Schedule III - Submission Processing - September 8 and Later (page 7 in this Postal Bulletin)

Schedule I - Accrual Processing Information

The following are examples of items that may be accrued using PS Form 8163 if goods or services have been received September 7 and prior; no receiving report has been sent; the dollar amount of service rendered exceeds $10,000; and you will not get an invoice to certify for payment by September 7:

Service Maintenance Contract - Copier

Review the last invoice processed to determine the amount to accrue from the service ending date through September 7.

To estimate the accrual amount, perform the following calculation:

· Calculate number of days to accrue.

Billing period last invoice = 7/26 - 8/24

Number of days to accrue = 14 (8/25 - 9/7)

· Calculate the daily rate.

Divide the last invoice amount by the number of days in the billing period to determine a daily rate.

Invoice amount = $30,000

Billing period = 30 days (7/26 - 8/24)

Daily rate = $1,000 ($30,000 / 30 days)

· Calculate the accrual amount.

Multiply the daily rate calculated by the number of days that will be accrued.

Accrual amount = $1,000 x 14 = $14,000

Utility Billing Accrual - Natural Gas

· Use the accrual amount calculation for service maintenance as shown above.

Other Goods or Services Accrual - Consultant Contract

· Calculate the accrual amount.

Check with the vendor to validate the cost of goods or services received during the period 8/14 - 9/7 and obtain the necessary supporting documentation.

Note: Do not accrue if the amount is less than $10,000.

The following items may not be accrued on PS Form 8163:

Basic Pricing Agreements (BPA)
Bulk fuel deliveries, oil purchases, and vehicle parts
Capital
Carrier drive-outs
Credit card purchases *
Direct Vendor Delivery (DVD) purchases
FEDSTRIPs *
FTS 2000 *
Gasoline credit card (fleet card) purchases *
Government Printing Office (GPO) printings *
Government Travel Accounts (GTAs) *
Imprest funds
Incentive awards
Inventory
Nonpostal training
Nonmetered fuel
Telecommunications *
Relocation Management Firm (RMF) services *
Tort claims
Travel
Uniform allowances
Vehicle repairs on PS Form 4541, Order-Invoice forVehicle Repair (Commercial Work Order)

* Items that will be accrued by National Accounting or the San Mateo ASC.

Address questions concerning these instructions to the appropriate servicing finance office.

Schedule II -Submission Processing - September 7 and Prior

Schedule III - Submission Processing - September 8 and Later