Finance

POSTMASTER/FIELD GUIDE REVISION

New Account Identifier Codes for Postal Lobby Copy Machine Revenue

Effective September 1, 2006, we will activate two new account identifier codes (AIC) for Post OfficesTM and postal retail units to record postal lobby copy machine activities:

• Use AIC 248, Copy Machine Revenue, to record funds received from postal lobby copy machines.

• Use AIC 548, Copy Machine Refunds, to record the amounts refunded to the copy machine servicing company.

Post Offices and postal retail units that have not modified contracts with their postal lobby copy machine vendors must record postal lobby copy machine activities as follows:

1. Collect funds from lobby copy machines and record the funds in AIC 248, Copy Machine Revenue, and deposit the funds.

2. Upon receipt of an invoice from the vendor, the Post Office or postal retail unit will process the payment as follows:

• Complete PS Form 3533, Application and Voucher for Refund of Postage, Fees, and Services.

• Ensure that the supervisor has printed his or her name on and signed the PS Form 3533 to authorize the payment.

• Record the amount into AIC 548, Copy Machine Refunds, and AIC 280, Disbursement Sent to ASC.

• Attach the system-generated receipt for the AIC 548 amount to the completed PS Form 3533 and submit to the following address:

SCANNING AND IMAGING CENTER
US POSTAL SERVICE
PO BOX 9000
SIOUX FALLS SD 57117

3. Keep a log of these transactions at the local unit.

Postmaster/Field Guide

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Account Identifier Code and General Ledger Account Crosswalk

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We will incorporate these revisions into the next printed edition of the Postmaster/Field Guide. The online version is accessible on the Postal Service Intranet.

• Go to http://blue.usps.gov/finance.

• Under "Departments," click on Accounting.

• In the Quick Links section, under "References," click on Postmaster/Field Guide.

— Revenue and Field Accounting,
Finance, 8-17-06

NOTICE

Fiscal Year 2006 Closing Guidance

Message from the Controller

I ask that each of you continue your efforts to control expenses. It is important that we carry this effort through to the end of the fiscal year. We must also control discretionary activity. This does not mean curtailing business, but it does mean making prudent choices by deferring or eliminating non-critical activity, and purchasing goods or services throughout the year, rather than at the end of the fiscal year, simply because there are available budget funds. I ask that you encourage your contractors to bill us in a timely manner for goods received and services rendered so we can recognize the expense prior to the close of the fiscal year. Additionally, I ask that you process accruals for goods received and services rendered, but not invoiced, as of September 30. Please note the minimum expense accrual is $20,000.

The following instructions will assist you, when appropriate, in helping the Postal Service close its financial books in a timely and efficient manner.

Lynn Malcolm
Vice President, Controller

I. Instructions for Fiscal Year 2006 Closing

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

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

II. Fiscal Year

The Postal Service prepares its annual reports on a government FY basis that comprises 365 days (366 in leap years), always ending on September 30.

III. Capital and Expense Commitment or Accrual Activities

A. Capital/Expense

Supply Management will not accept capital and expense requisitions and requests for contract modifications after September 8, unless work is currently under way on advance requirements or the buying manager grants an exception. Supply Management will accept capital purchase card transactions through September 15. Also, organizations should limit capital commitments, particularly Postal Service support equipment, to essential needs. The schedule for Supply Management processing is as follows:

• For requisitions received on or before September 8, Supply Management will attempt to issue the required contract/modification in time for the San Mateo Accounting Service Center (ASC) to process against FY2006 funds.

• Requisitions received on or after October 1 will be processed against FY2007 funds.

Organizations must forward hardcopy paper commitment documents to reach the San Mateo ASC no later than September 20. Electronic files received for commitments through September 20 will be processed for FY2006.

Appropriate receiving reports or certified invoices for goods and services received by September 30 must be forwarded to the San Mateo ASC for receipt no later than October 2. Please expedite processing of receiving reports and certified invoices as these documents are used to charge expense to the proper FY. Additionally, review contracts to ensure sufficient funds are available by September 20 to process invoices and PS Form 8163, Request for Fiscal Year Expense Accrual.

Supply Management will process all requisitions for the issuance of contracts against FY2006 funds according to the following priorities:

Priority 1 - Capital commitment requisitions.

Priority 2 - Expense commitment requisitions.

B. Unpaid Expenses or Accruals for Goods and Services Received on or Before September 30 (expense accrual minimum for FY2006 is $20,000)

If it is impossible to furnish a receiving report or certified invoice for goods received or services rendered through September 30 in time to reach the San Mateo ASC by October 2, and the expense per contract sequence number or miscellaneous (noncommitment) purchase or service is $20,000 or more, the expense must be accrued.

Complete PS Form 8163, a copy of which is found on page 18 of this Postal Bulletin. You can also obtain the form at http://blue.usps.gov; under "Essential Links," select Forms. Attach supporting documentation to the form (see PS Form 8163 for examples of proper vendor documentation). Documents received at the San Mateo ASC pertaining to activities occurring October 1 and later will be recorded in FY2007.

IV. Liquidation of Accruals

When submitting an actual certified invoice to liquidate an accrual, include the statement "Accrued to FY2006" on the face of the document. Do not mail to the Scanning and Imaging Center. Mail these invoices directly to:

MANAGER
ACCOUNTING SERVICE CENTER
2700 CAMPUS DR
SAN MATEO CA 94497-9401

Liquidate accruals as soon as possible. Offices must monitor their accruals and invoices to ensure that the accruals are properly liquidated. All FY2006 accruals processed by the San Mateo ASC that are not liquidated by the close of November 2006 (FY2007) will be reversed to a service-wide finance number as a prior-year credit. Subsequent invoices will be charged to the appropriate budget finance number as an FY2007 expense.

V. Submission Schedules

Please use the following schedules relating to FY2006 closing:

Schedule I - Accrual Processing Information (see item A below)

Schedule II -Submission Processing (see item B on page 19)

A. Schedule I - Accrual Processing Information

The following are examples of instances when items may be accrued using PS Form 8163 if goods or services have been received on or before September 30:

• You have not received a receiving report.

• The dollar amount must be $20,000 or more.

• You will not get an invoice to certify for payment by September 30.

Document calculation of accrual on PS Form 8163 or on a copy of a previous month's invoice. You may also use an adding machine tape as proof of the accrual calculation.

Service Maintenance Contract - Copier

Review the last invoice processed to determine the amount to accrue from the service ending date through September 30.

To estimate the accrual amount, perform the following:

1. Calculate the number of days to accrue (count from the first day of the next billing cycle through September 30).

For example:

Billing period last invoice = 8/19-9/17

Number of days to accrue = 13 (9/18-9/30)

2. Calculate the daily rate.

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

For example:

Invoice amount = $60,000

Billing period = 30 days (8/19-9/17)

Daily rate = $2,000 ($60,000 for 30 days)

3. Calculate the accrual amount.

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

For example:

Accrual amount = $2,000 x 13 = $26,000

Note: No service maintenance accruals should be made unless there are less than 12 monthly (or the equivalent of 1 year) invoices processed for the current FY. If there are less than 12 invoices processed (or the equivalent of 1 year), you should accrue for the missing invoices.

Utility Billing Accrual - Natural Gas/Electricity

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

Note: No utility accruals should be made unless there are less than 12 monthly (or the equivalent of 1 year) invoices processed for the current FY. If there are less than 12 invoices processed (or the equivalent of 1 year), accrue for the missing invoices.

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 unbilled period ending September 30 and obtain the necessary supporting documentation.

Note: Do not accrue if the amount is less than $20,000.

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) and eBuy purchases.

• FEDSTRIPs*.

• 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 (Raleigh).

• Relocation Management Firm (RMF) services*.

• Tort claims.

• Travel.

• Uniform allowances.

• Vehicle repairs on PS Form 4541, Order-Invoice for Vehicle Repair (Commercial Work Order).

*Items that will be accrued by Corporate Financial Reporting or the San Mateo ASC.

B. Schedule II -Submission Processing

*Do not place orders for DVD or eBuy purchases from October 1 through October 4, 2006, except for critical needs.

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

— National Accounting, Finance, 8-17-06