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 by controlling 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. Please encourage your contractors to bill us in a timely manner for goods received and services rendered, so we can recognize the expense before the end 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
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 instructions and reporting dates in this Postal Bulletin supplement procedures followed during the normal monthly or quarterly reporting schedule.
The Postal Service prepares its annual reports on a government FY basis which comprises 365 days (366 in leap years), always ending on September 30.
Supply Management will not accept capital and expense requisitions and requests for contract modifications after September 7, 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 14. Also, organizations should limit capital commitments, particularly Postal Service support equipment, to essential needs. The schedule for Supply Management processing is as follows:
Organizations must forward hardcopy paper commitment documents to reach the San Mateo Accounting Service Center (SMASC) no later than September 21. The schedule for electronic files transmitted to the accounting services centers is as follows:
Appropriate receiving reports or certified invoices for goods and services received by September 30 must be forwarded to the SMASC 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 21 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 FY 2007 funds according to the following priorities:
Priority 1 — Capital commitment requisitions.
Priority 2 — Expense commitment requisitions.
For goods received or services rendered through September 30, if it is impossible to furnish a receiving report or certified invoice 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 is available on page 75 of this PS Form 8163 is also available on the Postal Service Intranet. Go to http://blue.usps.gov/forms.
Transmit properly completed PS Forms 8163, along with appropriate supporting documentation, via e-mail to SMASC ACCRUAL FORM8163@usps.gov or fax to 650–377-5379 no later than close of business Tuesday, October 2, 2007. Documents received at the SMASC pertaining to activities occurring October 1 and later will be recorded in FY 2008.
When submitting an actual certified invoice to liquidate an accrual, include the statement “Accrued to FY 2007” on the face of the document and a copy of the PS Form 8163 that was either e-mailed or faxed to the SMASC. Do not mail invoices to the Scanning and Imaging Center, mail these invoices and copies of PS Form 8163 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 FY 2007 accruals processed by the SMASC that are not liquidated by the end of November 2007 (FY 2008), 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 a FY 2008 expense.
Please use the following schedules relating to FY 2007 closing:
Schedule I — Accrual Processing Information
Schedule II — Submission Processing
A. 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 on or before September 30:
Document calculation of the 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 calculation:
1. Calculate 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 ($60,000/30 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 equivalent) invoices processed for the current FY. If there are less than 12 invoices processed (or equivalent), you should accrue for the missing invoices.
Utility Billing Accrual — Natural Gas and Electricity
Use the accrual amount calculation for service maintenance as shown above.
Note: Do not make any utility accruals unless there are less than 12 monthly (or equivalent) invoices processed for the current FY. If there are less than 12 invoices processed (or equivalent), you should 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:
Address questions concerning these instructions to the appropriate servicing Finance office.
— Accounting Policy, Finance, 8-2-07
PS Form 8163
