Finance

Fiscal Year 2007 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 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

I. Instructions for Fiscal Year 2007 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 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 which comprises 365 days (366 in leap years), always ending on September 30.

III. Capital and Expense Commitment or Accrual Activities

A. Capital and Expense

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:

 

For requisitions received…

Funds are processed as follows…

On or before September 7, 2007

Supply Management will attempt to issue the required contract or modification in time for the San Mateo ASC to process against FY 2007 funds.

On or after October 1, 2007

San Mateo will process against FY 2008 funds.

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:

 

Send electronic files for...

To this ASC...

No later than...

Capital commitments

San Mateo

September 25, 2007

Facilities capital commitments and expense payments

Saint Louis

September 30, 2007

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.

B. Unpaid Expenses or Accruals for Goods and Services Received on or Before September 30 (Expense accrual minimum for FY 2007 is $20,000.)

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.

IV. Liquidation of Accruals

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.

V. Submission Schedules

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:

 

 

Form #

Item

Submit By

Submit To

Received by Date

N/A

Back pay awards

All offices

Eagan ASC

Aug 1

PS 7381

Requisition for Supplies, Services, or Equipment

All offices

Supply Management Headquarters

Sep 13

PS 17

Stamp Requisition/Stamp Return

Field offices

SSC/SDO

Sep 13

PS 1727

Award Recommendation/Authorization (Quality Step Increase)

All offices

eAwards

Sep 24

Health Nurse (COHN) Award

All offices

eAwards

Sep 24

PS 1270

Idea Proposal

All offices

eAwards

Sep 24

N/A

Award Report

All offices

eAwards

Sep 24

N/A

PCES Recognition Authorization or Vice

President Award Authorization for PCES in EAS Positions

All offices

eAwards

Sep 24

N/A

Individual EAS Recognition/Awards Program Authorization

All offices

eAwards

Sep 24

N/A

EAS Team Recognition Authorization

All offices

eAwards

Sep 24

RHD

Right-hand Drive Vehicle Incentive Award

All offices

Eagan ASC

Sep 24

PS 1839

Payment Record for Carrier Drive-Out Agreements

Field offices

Scanning & Imaging Ctr.

Sep 13

PS 1164-A

Claim for Reimbursement for Postal Supervisors (for Employee Business Expenses only)

Field offices

Scanning & Imaging Ctr.

Sep 13

N/A

Inspection Service/Office of Inspector General Award Forms

Field offices

Eagan ASC

Sep 24

N/A

Commercial Bank Reconciliations

US Bank, JP Morgan Chase, and Citibank

Eagan ASC

Oct 13

N/A

BPA cover sheets

All offices

San Mateo ASC

Oct 2

N/A

Capital and expense receiving report

All offices

San Mateo ASC

Oct 2

N/A

Certified invoices — supplies and services, bulk fuel and oil purchases, motor vehicle parts, nonmetered heating fuel

All offices

San Mateo ASC

Oct 2

PS 1782

Training Request and Authorization

All offices

San Mateo ASC

Oct 2

PS 8163

Request for Fiscal Year Expense Accrual

All offices

San Mateo ASC

Oct 2

PS 8230

Authorization for Payment

All offices

Scanning and Imaging Ctr.

Sep 29

PS 8232

Payment for Personal Services Contracts

Field offices

Scanning and Imaging Ctr.

Sep 24

PS 3533

Application for Refund of Fees, Products and Withdrawal of Customer Accounts

Field offices

Scanning and Imaging Ctr.

Sep 29

N/A

Tort claims

All offices

Scanning & Imaging Ctr.

Oct 2

N/A

eTravel (Approving Official)

All offices

St. Louis ASC

Oct 2

N/A

eTravel (Receipts)

All offices

Back Office

Oct 2

PS 1129

Cashier Reimbursement Voucher and/or Accountability Report (imprest fund)

All offices (imprest)

San Mateo ASC

Oct 2

N/A

Project facility system

Facilities

St. Louis ASC

Oct 2

N/A

Money order vouchers

Field offices

St. Louis ASC

Oct 2

PS 3637-G

Batch Header for Official Mail (attach supporting documents)

Field offices

Scanning & Imaging Ctr.

Oct 5

PS 4541

Order-Invoice for Vehicle Repair (commercial work order)

Field offices

Support VMF

Sep 27

PS 7370

Request for Funds Transfer

Field offices

District Budget Office

Oct 2

PS 8049

Vehicle Hire Pay Adjustment

Field offices

St. Louis ASC

Sep 26

Vehicle Hire Payment Certification reports

Field offices

Support VMF

Oct 2

SF 97

The U.S. Government Certificate of Release of a Motor Vehicle

Field offices

San Mateo ASC

Sep 29

N/A

Government bills of lading

National Traffic Service

San Mateo ASC

Sep 28

N/A

Capital commitments (CAMS) through APEX-CAMS electronic interface

Supply Management Headquarters

San Mateo ASC

Sep 25

N/A

Hardcopy paper commitment documents

Supply Management Headquarters

San Mateo ASC

Sep 21

N/A

Government Printing Office

Supply Management Headquarters

San Mateo ASC

Sep 21

N/A

Telecommunications

Raleigh Network Operations

San Mateo ASC

Sep 27

N/A

Government Travel Account (GTA)

St. Louis ASC

St. Louis ASC

Oct 2

N/A

Gasoline Credit Card (fleet card) payment and accrual

U.S. Bank

San Mateo ASC

Oct 2

N/A

Direct Vendor Delivery (DVD) and eBuy1

Topeka MDC

San Mateo ASC

Oct 5

N/A

U.S. Bank VISA accrual

U.S. Bank

San Mateo ASC

Oct 3

N/A

Relocation Management Firm (RMF) accruals

Accounting, Headquarters

San Mateo ASC

Oct 2

N/A

eBuy utilities

All offices

eBuy Post/Certify Module

Sep 29


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

PS Form 8163, Request for Fiscal Year Expense AccrualPS Form 8163


Items that will be accrued by Corporate Financial Reporting or the SMASC.B. Schedule II — Submission ProcessingThe table below describes the schedule for submitting forms.