Finance

HANDBOOK F-26 REVISION

Additions, Modifications, and Upgrades

Effective September 8, 2001, Handbook F-26, Personal Property Accounting, is revised to reflect a change in the capitalization criteria.

We will incorporate these changes into the next printed version of Handbook F-26.

Handbook F-26, Personal Property Accounting

2 Personal Property Policies

225 Additions, Modifications, and Upgrades

[Revise 225 to read as follows:]

Expenditures for additions, modifications, and upgrades to capital equipment items are added to the cost of the original items of capital equipment only if they are, at least, one-half of the capitalization criteria (currently $3,000; therefore, the criteria for Additions, Modifications, and Upgrades would be $1,500 or more) and if any of the following occur:

a. The productive capacity or operating efficiency is materially increased.

b. The life of the item is significantly extended.

c. The modification adapts the item to a different use.

If the criteria is not met, the items are then expensed.

- Corporate Accounting, Finance, 8-23-01

HANDBOOK F-1 REVISION

Segmented Inventory Accountability

Effective August 23, 2001, Handbook F-1, Post Office Accounting Procedures, is revised to reflect Segmented Inventory Accountability (SIA) changes in section 48, Managing Accountable Paper and Cash at Offices with Segmented Inventory Accountability.

We will incorporate these changes into the next printed version of Handbook F-1 and into the online version located on the corporate intranet at http://blue.usps.gov (click on Information, then Policies and Procedures, then Handbooks).

Handbook F-1, Post Office Accounting Procedures

4 Managing Accountable Paper

48 Managing Accountable Paper and Cash at Offices with Segmented Inventory Accountability

[Revise 481 to read as follows:]

481 Overview

Segmented Inventory Accountability (SIA) is a financial concept used at Postal Service retail units with POS ONE point-of-service terminals. Each unit must contain and maintain a unit reserve stock and has a number of different segments. A window services employee is identified as a sales and services associate (SSA), and an associate's role determines his or her access and responsibility for the assigned inventory segment(s). Employees (SSA) working at window services do not have a stamp stock inventory assigned as individual accountability. Instead, they work from a shared retail floor stock. SSAs working from the retail floor stock are assigned a $100 cash credit, identified as cash retained, for which they are individually accountable. Other segments may require stamp stock inventory assigned as individual accountability.

[Revise title and text of 481.1 to read as follows:]

481.1 Retail Floor Stock

The major change incorporated in this section is the inclusion of the concept of retail floor stock. Under this concept, two modifications are made to traditional controls. First, cash is separated from stamp stock in retail credits. Second, a shared retail floor stock replaces individual stamp credits for SSAs.

[Revise 482 to read as follows:]

482 Responsibility for Retail Unit Operations

The postmaster/unit manager or supervisor is responsible for compliance with the procedures defined in this section. Key elements of this responsibility include establishing and controlling segments within the unit, monitoring inventory levels, ensuring proper entry of all financial transactions, remittance of all funds in excess of authorized reserves, and monitoring of operations including count procedures. The postmaster/unit manager or supervisor is responsible for providing adequate security for all accountable items.

[Revise 482.2 to read as follows:]

482.2 Responsibility for Inventory Items, Cash, and Equipment

It is the responsibility of all employees to ensure:

· Financial integrity.

· Security of all postal stock, funds, equipment, and facilities.

· Reporting of all retail transactions to include providing a receipt to each customer.

· In POS ONE sites, using the POS ONE cash drawers for all daily transactions as they occur. (See section 151.42)

Employees are accountable for:

· Cash directly assigned to them.

· Money order stock directly assigned to them.

· Stamp stock directly assigned to them.

· Correct collection and remittal of all funds due the Postal Service.

[Revise 483 to read as follows:]

483 Unit Reserve Responsibility

1> The unit reserve is assigned to the postmaster, unit manager, supervisor, or finance clerk (lead SSA) at a finance station. A finance station has no domiciled supervisor and has no more than three full-time SSAs assigned to the unit. A finance clerk (lead SSA) may also be assigned a credit from which direct sales to the public are conducted.

2> At other units where no supervisor is domiciled, the unit reserve stock may be assigned to a window service technician (lead SSA). When the unit reserve stock is assigned to a window service technician (lead SSA), that employee may not also have accountability for any credit from which sales are made directly to the public.

3> The individual assigned to the unit reserve is referred to as unit reserve custodian. The unit reserve custodian is directly accountable for the value of all items in the unit reserve stock.

4> Assignment of the unit reserve stock is made using Form 3369-P, Consigned Credit Receipt, and all counts of the unit reserve are posted to Form 3368-P, Accountability Examination Record.

5> A POS ONE Unit Reserve Financial Report (Form 3958, Main Stock (or Unit Reserve Stock) Transaction Record), Stamp Stock Unit 1412, or an IRT Form 3958, is prepared and signed every day that transactions affect the unit reserve stock.

6> The unit reserve contains items listed in section 413 of this handbook. The unit reserve custodian maintains and secures all accountable papers for the unit beyond the levels authorized for the various segments. The employees assigned to the various segments within the retail unit obtain these items directly from the unit reserve.

7> The unit reserve stamp stock is maintained at the required 9-week stock level in compliance with section 422.2. Do not exceed the 9-week sales level for your office.

484 Segments

[Revise 484.1 to read as follows:]

484.1 Definition

Segments define the assignment of cash or stamp stock to various individuals or roles within a unit.

On each unit's system-generated Form 1412, Daily Financial Report, the total of all stamp stock is posted in AIC 853, Stamp Accountability Closing Balance. In both the POS ONE system and on the IRTs, the "Clerk Balance List" generates a report of the balance of each segment's stock. The total value of stock computed on the "Clerk Balance List" must always equal the unit's total reported in AIC 853 on the daily financial report. The "Clerk Balance List" will always include a unit reserve, a retail floor stock, and may include other segments such as mobile unit, philatelic, or self-service (vending).

Similarly, the unit's daily financial report (Form 1412) has a total of AIC 753, Cash Retained. This is defined on the "Clerk Balance List" by listing the unit's cash retained reserve plus the various assigned associates' cash retained credits.

Note: Rural carrier credits and stamps on consignment are included in the unit reserve accountability. They are fixed amounts entered into the unit reserve total as unique item numbers and are not segments. Replenishment is made by purchasing stock from retail floor stock.

[Revise 484.2 to read as follows:]

484.2 Segments Assigned from the Unit Reserve

Segments assigned from the unit reserve include:

· Vending (Self-Service Credits) - Stock for sale through vending equipment is assigned to the Self- Service Postal Center (SSPC) technician, or designated employee, who is directly accountable for that inventory. This credit is replenished directly from the unit reserve to the designated employee to whom the credit is assigned, unless this function is supported by the Stamp Distribution Office (SDO) or Stamp Service Center (SSC) as a separate unit ID.

· Mobile Unit Credits - Stock for use by associates assigned to operate mobile units is issued directly from the unit reserve. This credit is accountable to an individual.

· Philatelic Units (or dedicated windows) - Where a dedicated philatelic credit is used, stock is issued directly from the unit reserve. The credit is accountable to an individual.

· Retail Floor Stock - Stock for this inventory is issued from the unit reserve. The purpose is to provide a common inventory for use by the associates in units as defined in section 481.1. This credit is not accountable to any individual.

· Stamps by Mail (where volume prohibits filling requisitions by an associate) - Stock for this inventory is issued from the unit reserve. The purpose is to provide an inventory for use in filling stamp orders received from customers by mail or fax. This credit is accountable to an individual.

Note: Special Event Credits - On occasion, the Postal Service establishes credits associated with special events. Temporary credits can be assigned to one of the accountable segments with stock issued directly from the unit reserve. At the completion of the event, all sales must be posted. A count is conducted and the balance is either returned to the unit reserve, prepared for destruction, or moved to retail floor stock.

[Revise 484.3 to read as follows:]

484.3 Documentation of Stock Assignment

484.31 POS ONE Offices

1> Assignments of all individually accountable credits and unit reserve stock are documented by the completion of Form 3369. In these instances, assigned employees are accountable for all stock, accountable paper, money orders, and money in their respective credits.

2> For stamps on consignment, the contract serves as documentation for the credit.

3> Retail floor stock is issued directly from the unit reserve. Although no individual is accountable for this stock, each associate making sales from this credit is responsible for ensuring adequate protection and security of Postal Service resources.

4> Form 17, Stamp Requisition, or an approved electronic equivalent, is retained to document shipments of stock from the unit reserve to retail floor stock and from retail floor stock back to the unit reserve. The unit reserve stock custodian signs the Form 17 as "shipped" or "received" as appropriate. An associate must independently count all stock moved into and out of the retail floor stock and sign the appropriate Form 17 as "witnessed" or "verified by."

[Revise title and text of 484.32 to read as follows:]

484.32 Retail Postal Stores with IRTs

1> Associates selling from the retail floor stock segment at IRT units must maintain stock balances to operate the IRT. Although these associates have a stock value listed on the "Clerk Balance List," they are not individually accountable for this balance, and no Form 3369 is required.

2> The IRTs do not have the ability to accommodate the retail floor stock segment. In essence, since each associate has to maintain a stock balance to operate the IRT, the retail floor stock is valued at the total of all associates' IRT balances. Even though each individual associate, working from credits that represent the retail floor segment, has a balance listed on the "Clerk Balance List," none are held to be individually responsible for that listed value. The total of balances for all associates operating from the retail floor stock must at all times be equal to the total retail floor stock segment.

3> In this IRT environment, each shipment of stock into or out of the unit reserve must be documented on a Form 17. The exact item numbers and quantities shipped to the retail floor stock from the unit reserve must be "shipped" by the unit reserve custodian and "witnessed" by one of the associates operating in the retail floor stock segment, with signatures required. Ensure that stock shipped to the retail floor stock is adequately distributed among the associates to maintain an operational balance. In some instances, stock credit will have to be transferred between associates to maintain operating stock balances on their IRTs.

4> Stock returned from retail floor stock must be documented on Form 17 also. The stock is independently verified by an associate and the stock custodian. An associate "witnesses" the Form 17, and the stock custodian "receives" the stock, with signatures required.

485 Retail Floor Stock

[Revise 485.1 to read as follows:]

485.1 Definition

Retail floor stock is a common inventory used by associates in units as defined in section 481.1. This stock is not assigned to an individual.

Retail floor stock is divided into two major components:

· Display stock, which is only used in postal retail stores, comprises the following two items:

- Open Merchandise Stock - Shrink-wrapped stamp stock and philatelic products that are displayed in the open merchandising area, accessible to the general public on the slat wall or gondola.

- Closed Merchandise Stock - Stamp stock and philatelic products displayed in the retail clerk area, inaccessible to the general public and nonretail employees.

· Loose Stock - Accountable paper held as a common credit available to all associates in a designated retail window unit, but not on display. This stock is held in the associate's area, inaccessible to the general public and non-retail employees.

[Revise 485.2 to read as follows:]

485.2 Retail Floor Stock Limits

Retail floor stock, which is the sum of display stock plus loose stock, must be limited to a 2-week level as determined by same period last year (SPLY) stamp sales. (Formula: SPLY->AIC 852, Total Sales, minus AIC 096, Vending, and AIC 094, Stamps by Mail.) The limitations must be enforced to minimize the risk of losses that might be associated with the concept of common accountabilities.

Note: Proper inventory controls are an essential part of managing the retail floor stock and minimizing potential losses. Broken stock (partial sheets, loose stamps, etc.) held in the loose stock must be kept to a minimum to simplify the count of the unit.

[Revise 485.3 to read as follows:]

485.3 Money Order Form Sets

Each associate is assigned money order form sets as explained in section 74 of chapter 7 of this handbook. Do not split a package of domestic money order form sets between associates. Associates acknowledge the receipt of blank money order sets by signing Form 17 and accepting money orders in the POS ONE/IRT system. A complete record of all blank money order sets assigned to associates is maintained using Item 0-137A (green logbook) including money order serial numbers, date, and associate's printed name and initials.

Note: When an associate's credit is canceled, the assigned money orders are returned to the unit reserve. These may be reassigned to another associate and the newly-assigned associate must verify the continuity of serial numbers. The associate acknowledges the receipt of blank money orders by signing Form 17, accepting money orders in the POS ONE/IRT system, and initialing the money order log maintained in Item 0-137A.

[Revise 486.1 to read as follows:]

486.1 Unit Cash Retained Reserve

1> A unit cash retained reserve is established for the unit. This is used to provide retail floor stock associates and employees assigned to the other segments a source for rolled coins and smaller denomination currency. This reserve is fixed in amount. It is established via a written request by the postmaster/retail unit manager to the district finance manager. This request must include the proposed amount of the unit cash retained reserve, and the total of all associates' cash retained, that will be reported in AIC 753, along with justification. The district finance manager is responsible for reviewing the request, including the amount, and sending written authorization or denial to the unit within 5 working days of receiving the request.

2> The unit's cash retained reserve is assigned to an individual, on Form 3369-P, who is directly accountable. When circumstances warrant, the unit cash retained reserve custodian may reassign all or part of the unit cash retained reserve using Form 3369-P. The unit cash retained reserve has no tolerance. These reassigned funds must not be mixed with other accountable credits assigned to the employee.

[Revise title and text of 486.2 to read as follows:]

486.2 Sales and Services Associates Cash Retained

Associates working from the retail floor stock segment do not sell from an individual stamp credit. Associates are authorized a cash retained amount of $100 for which they are individually accountable.

The total of the unit cash retained reserve and the individual associate cash retained amounts must be equal to AICs 353/753 as reported on the unit's Form 1412 and cannot exceed the approved amount.

Note: Form 3369-P, Consigned Credit Receipt, is used for each assigned cash retained credit.

[Revise 486.3 to read as follows:]

486.3 End of the Day Internal Controls

Due to the change from individual accountabilities to the retail floor stock concept, close-out procedures are modified. POS ONE and the IRT both generate a "Clerk Balance List." At close out, the person consolidating the unit's Form 1412 must:

1> Verify that the total of the cash retained balances (both the unit's cash retained reserve and the individual associate's cash retained) is equal to the total entered as AIC 753 on the unit's Form 1412.

2> Verify that the total stamp stock accountability appearing in AIC 853 on the unit's Form 1412 is in agreement with the unit's total stamp accountability on the "Clerk Balance List."

Note: In POS ONE, the "Clerk Balance List" shows the unit reserve, self-service vending credits, mobile credits, philatelic credit, and the retail floor stock credit. The retail floor stock credit replaces the traditional individual window employee credits.

487 Conducting Counts

[Revise 487.1 to read as follows:]

487.1 Responsibility

>> The postmaster/unit manager is responsible for ensuring that all required counts are performed, including stamp stock credits, cash credits, unit reserve stock, and retail floor stock. This is to ensure compliance with all existing contractual commitments, required time frames for counts, documentation of results, and prompt reporting and resolution of any discrepancies.

[Revise 487.3 to read as follows:]

487.3 Count of the Unit Cash Retained Reserve

1> The unit's cash retained reserve is to be counted at the end of each accounting period (AP). Any portions reassigned to employees on Form 3369-P must be counted at least once every 2 weeks in conjunction with the cash credit count. The count is performed by the assignee and a witness, one of whom must be a nonbargaining employee, (for finance stations see Note in section 487.41). There is no tolerance for unit cash retained reserve accountabilities or the reassigned portions.

2> At any time the unit cash retained reserve custodian is reassigned, a count must be performed and a new Form 3369-P prepared.

[Revise 487.31 to read as follows:]

487.31 Discrepancies in the Unit Cash Retained Reserve

Overages

>> Overages are to be placed into AIC 068, Cash Retained Overage, and submitted to the bank. Unresolved cash retained overages are removed from trust and declared as revenue (AIC123, Lobby Services Revenue) after 90 days.

Shortages

>> Shortages must be reported in AIC 764, Cash Retained Shortages, on the day of the count unless paid from personal funds at the time of the count. The shortage, if not paid at the time of the count, is cleared by an entry to AIC 364, Cash Retained Shortage Cleared.

[Revise 487.32 to read as follows:]

487.32 Documenting Count Results

>> Form 3294-C, Cash Credit Count and Summary, is used for each count of unit cash retained and all results posted to Form 3368-P, Accountability Examination Record. Form 571, Discrepancy of $100 or More in Financial Responsibility, is required for differences of $100 or more. If a shortage is paid at the time of the count, Forms 3294-C and 3368-P should indicate "paid by personal funds." File in accordance with section 426.5.4.

[Revise title of 487.4 to read as follows:]

487.4 Counts of Associate's Cash Retained Credits

[Revise 487.41 to read as follows:]

487.41 Frequency

>> Each associate's cash retained credit is to be counted randomly at least once every 2 weeks (14-day period), or once every 10 scheduled days in that unit, for pool and relief SSAs (credits not used at least once an AP must be cancelled, see section 426.6). Each associate's domestic, international (MP-1 and ATI), and bait money orders must be counted in conjunction with the cash retained count (see section 487.46). If an associate has a reassigned portion of the unit cash retained reserve, it must be counted in conjunction with the associate's cash retained count. The assigned associate and a nonbargaining employee perform the count(s).

Note: If a nonbargaining employee is not assigned or domiciled at the retail unit, the lead SSA (associate with the unit reserve assigned) may conduct the count with the assigned associate. The postmaster, manager, or supervisor responsible for the unit manages and monitors these counts performed by the lead SSA. In addition to this, management also performs counts of all associates' cash credits at his or her unit no less than once a quarter (90 days).

[Revise 487.42 to read as follows:]

487.42 Tolerance

>> Each associate is allowed a tolerance of $5 in his or her assigned cash retained credit. If a count results in a discrepancy of $5 or less, record the results on Forms 3294-C and 3368-P.

487.43 Overages

>> For overages exceeding the $5 tolerance, reconcile cash credit and record the full amount of overage in AIC 068, Cash Retained Overage, at the time of the count. Cash in excess of the associate's balance listing is deposited to the bank.

Note: Unresolved cash retained overages are removed from trust and declared as revenue (AIC 123, Lobby Services Revenue) after 90 days.

[Revise 487.44 to read as follows:]

487.44 Shortages

>> For shortages exceeding the $5 tolerance, reconcile cash credit and record the full amount of the shortage in AIC 764, Cash Retained Shortages, at the time of the count; this decreases AIC 752. When the employee repays the shortage, clear the suspense item using AIC 364.

[Revise 487.45 to read as follows:]

487.45 Documenting Count Results

>> Form 3294-C is used to document each cash retained count with signatures of employees that performed the count. Results of the counts are posted to Form 3368-P, and Form 571 is initiated for differences of $100 or more. If a shortage is paid on the day of the count, the Form 3368-P should indicate "paid by personal funds." File in accordance with section 426.5.4.

[Revise 487.46 to read as follows:]

487.46 Inventory of Money Order Blank Stock

Money orders issued to an employee working from the retail floor stock must be audited in conjunction with the required cash count and documented on Form 3294-C. Any discrepancies are resolved and reconciled into the POS ONE system. (For missing money orders, see section 742.3. 5.)

487.5 Unit Reserve Count

[Revise 487.51 to read as follows:]

487.51 Frequency

1> Unit reserve stock is counted at least once every 12 months or no less frequently than once every 4 months if assigned to a bargaining employee. This count is conducted in conjunction with a count of the retail floor stock at least once every 12 months. The unit reserve must be counted any time custody of the unit reserve changes, and a new Form 3369-P must be prepared. All credits held by the custodian must also be counted when the unit reserve is counted.

2> Whenever the results of the retail floor stock count exceed the 1/2% threshold (over or short), the unit reserve stock count is performed concurrently.

3> The unit reserve custodian and another employee performs the unit reserve stock count, one of these must be a nonbargaining employee.

4> Prior to beginning a count, confirm that the total of unit reserve stock and all the SSA credits (segments) equal AIC 853 on the last closed unit Form 1412. Differences must be identified and corrected prior to performing the count (i.e., reconciling stock in-transit).

5> All counts are based on the actual value of the unit reserve stock as shown on system generated reports. Differences are placed in either trust or suspense and attributed to the individual stock custodian.

6> All counts of the unit reserve must be posted in the POS ONE Post Audit/Audit Report Count Sheet or the IRT inventory adjustment process, as applicable.

[Revise title and text of 487.52 to read as follows:]

487.52 Tolerance Amount in Unit Reserve

Tolerance is applied during the required count of the unit reserve stamp stock. The amount of tolerance applied is according to the stamp credit amount chart in section 429.16 and not to exceed $150. The unit reserve stock custodian is accountable and responsible for the total amount of shortage if it exceeds the tolerance amount. Whenever the unit reserve stock is cancelled or transferred, no tolerance is applied and; therefore, the employee is accountable and responsible for the total amount of shortage.

[Revise 487.53 to read as follows:]

487.53 Count and Adjustment Procedures

1> When counting the unit reserve stock, two independent counts are performed. The stock custodian and one other employee conducts the counts. One of them must be a nonbargaining employee.

2> Adjust the unit reserve inventory in the POS ONE Reconciliation/Stock Audit Module on the day of the count. In IRT/POS ONE, count results exceeding the tolerance are posted to trust or suspense on the day of the count.

Overages

>> Any overages exceeding the tolerance, discovered as a result of the unit reserve count, are entered into AIC 057, Employee Overage. Unresolved overages remain in trust for 1 year and then are purged to AIC 123, Lobby Services Revenue.

Shortages

>> Any shortages exceeding the tolerance, discovered as a result of the unit reserve count, are entered into AIC 767, Employee Shortage. Shortages should be resolved as soon as possible. In collecting a shortage from the assigned unit reserve custodian, all contractual provisions must be followed.

[Revise 487.54 to read as follows:]

487.54 Inventory of Blank Money Order Sets

>> An inventory of the unit's blank money order stock is conducted every time the unit reserve is counted.

[Revise 487.55 to read as follows:]

487.55 Documenting Unit Reserve Count Results

>> Form 3294-P is used to document counts of the unit reserve stock, and all results are posted to Form 3368-P. Form 571 is required for differences of $100 or more. File in accordance with section 426.5.4.

487.6 Counting Retail Floor Stock

[Revise 487.61 to read as follows:]

487.61 Responsibility

The postmaster/manager or supervisor has the responsibility for the required count of the retail floor stock and the maintenance of the inventory levels in accordance with section 484.2. When the floor stock is counted, this represents a count of the common inventory used by retail associates including display stock and loose stock.

Note: There is no tolerance applied for retail floor stock counts.

[Revise 487.62 to read as follows:]

487.62 Threshold

>> The goal in operating a retail floor stock is to maintain a threshold within 1/2 percent variance (over or short) of total sales since last count. Total sales are computed by calculating the total amount reported on the unit's Form 1412 in AIC 852, minus AIC 094 and AIC 096, since the last count.

[Revise 487.63 to read as follows:]

487.63 Frequency

>> The frequency of audits is contingent upon maintaining an inventory variance (over or short) at 1/2 percent or less. Retail units are required to count each AP until they achieve three consecutive counts within the 1/2 percent threshold. At that time, counts are required at least once every three APs as long as the threshold is maintained within the 1/2 percent limit. If the counts from the three APs result in a variance in excess of the 1/2 percent threshold , the count frequency reverts to the AP requirement. When the 1/2 percent threshold is achieved on three consecutive AP counts, the office returns to once every three APs count cycle.

Note: If results of the floor stock count exceed the 1/2 percent threshold (over or short), the unit reserve stock count is performed concurrently.

[Revise 487.64 to read as follows:]

487.64 Procedures

The retail floor stock inventory of the unit is counted separately by two employees. One of the participants must be the postmaster/manager or supervisor responsible for the unit. Use the following procedures:

Floor stock counts should not be performed during business hours.

POS ONE Offices

1> Use Form 3294-P to record the opening balance of the retail floor stock.

2> Perform the physical count of the retail floor stock including display stock and loose stock.

3> Reconcile the retail floor stock, and verify that adjustments are posted to the corresponding AIC/GLA accounts. No tolerance is applied.

4> Print the reconciled/final audit report, and attach to Form 3294-P.

5> Record the amounts in the corresponding section on page 4 of Form 3294-P.

6> Signatures of employees that performed the count are required on the bottom of page 4 on Form 3294-P.

Note: Do not include packaging products or retail products in this count.

Postal Retail Stores with IRTs

1> Use Form 3294-P to record the opening balance of the retail floor stock.

2> Print "Clerk Balance List" to calculate the amounts that represent the retail floor stock, as opening balance, prior to the count.

3> Perform the physical count of the retail floor stock including display stock and loose stock.

4> Use Form 3294-P, pages 2 and 3, to record the retail floor stock as counted.

5> Balance to the actual value of the retail floor stock, calculate the difference, and enter amounts in the corresponding sections on page 4 of Form 3294-P.

6> Record amount of overage or shortage to the corresponding AIC account, no tolerance will be applied.

7> Signatures of employees that performed the count are required on the bottom of page 4 on Form 3294-P.

Note: Do not include packaging products or retail products in this count..

Overages

1> The floor stock count must be entered into the POS ONE Inventory Reconciliation/Stock Audit module, and the overage amount is recorded to AIC 239, Floor Stock Overage.

2> In retail Postal Service stores with IRTs, overage amount discovered as a result of the floor stock count must be recorded to AIC/GLA 239, Floor Stock Overage.

Shortages

1> The floor stock count must be entered into the POS ONE Inventory Reconciliation/Stock Audit module, and the shortage amount is recorded to AIC 639, Floor Stock Shortage.

2> In retail Postal Service stores with IRTs, the shortage amount discovered as a result of the floor stock count must be recorded to AIC/GLA 639, Floor Stock Shortage.

Note: There is no tolerance applied to the floor stock count; therefore, all discrepancy amounts must be recorded to the corresponding AIC/GLA account.

3> The postmaster/manager or supervisor follows these procedures:

[Revise 487.65 to read as follows:]

487.65 Documenting Retail Floor Stock Count Results

1> Record retail floor stock count results in Form 3368-P, Accountability Examination Record.

2> File Form 3294-P with attached POS ONE reconciled/final audit report locally.

3> Prepare Form 571 for all differences of $100 or more, and send to the Postal Inspection Service.

4> Keep copy of electronic article surveillance (EAS) log locally.

Note: File in accordance with section 426.5.4.

[Revise 487.7 to read as follows:]

487.7 Counts of All Other Accountability Segments

1> Other accountability segments, outlined in section 484.2, are individually accountable stamp stock and cash credits assigned. Counts of accountability segments are in compliance with section 429, Conducting Examinations.

2> Frequency of counts for bargaining employees should be no less frequent than once every 4 months.

3> When the unit reserve stock is assigned to a nonbargaining employee, all accountable credits assigned to him/her (i.e., cash credit, stamp stock credit, unit cash retained, vending machine credit) are counted in conjunction with the unit reserve stock. This begins a new cycle for the required "count frequencies" for the unit cash reserve and the vending machine credit (unit cash reserve every AP and vending machine credit every 4 months).

4> In POS ONE offices, which require separation of cash and stock, refer to the POS ONE Users Guide for instructions on entering or reconciling counts in the POS ONE system.

5> Blank money order stock assigned to an accountable segment SSA, must be audited each time the count for that segment is performed. (See section 487.46)

[Revise 487.8 to read as follows:]

487.8 SIA Accountability Counts Chart

* See section 487.51.2

- Post Office Accounting, Finance, 8-23-01