Management Instructions

New Management Instruction: Assessing and Collecting Deficiencies in Postage or Fees

Effective June 1, 2008, Management Instruction (MI) DM-140-2008-1, Assessing and Collecting Deficiencies in Postage or Fees, was posted on the Postal Service™ PolicyNet Web site at http://blue.usps.gov. This manage­ment instruction establishes the policies and procedures for assessing and collecting deficiencies of postage and/or fees, which are generally assessed by the postmaster or manager of a Business Mail Entry Unit (MBME). The MI may not be accessible to our customers, mailer, or agents, therefore the following is an excerpt of the MI related to the Assessment Criteria, Appealing Revenue Deficiencies, and Deficiency Payments.

Assessment Criteria

Time Limits

When a postage or fee underpayment warrants assess­ing a revenue deficiency, the Postal Service may review previous mailings and fee payments to calculate the assessment and may look back no more than 12 months before the date the deficiency was discovered (date of the revenue deficiency report).

Minimum Threshold

When a revenue deficiency is discovered for an amount of $500 or more, follow this MI for reporting, processing, and collecting the revenue deficiency. When a revenue deficiency is discovered for an amount less than $500, report each deficiency to the MBME and the district finance manager (DFM), or the postmaster and the DFM for review and followup.

Prerequisite Notice

Notice to a customer of a content-based deficiency (when contents of the mailing are not eligible for the class of mail or prices claimed) must be provided prior to formal issuance of a deficiency assessment. The requisite notice must reference the applicable DMM standard(s) and any subsequent violations of that standard.

Exceptions: The previously mentioned criteria do not apply if one of the following is found:

1. Fraud or misrepresentation is reasonably suspected. This includes concealment of a different opinion or ruling received from a Postal Service employee before or at the time of mailing.

2. No postage or fees were paid for the service rendered, or there is a misstatement of the amount of postage affixed to the mailpiece.

3. Mailing history discloses evidence of repeated non­compliance with mailing standards.

Note: In cases where one or more of the assessment cri­teria are not met, and none of the exceptions apply, the Postal Service issues a written notification sent by certified First-Class Mail^® to the customer, mailer, or agent describing the noncompliance with Postal Service mailing standard(s). A copy must be recorded and filed indefinitely at the DFM’s office together with the revenue deficiency report. Any subsequent mailing violation of the same DMM standard from this customer, mailer, or agent may result in the assessment of another revenue deficiency.

Reporting

The Postal Service employee who finds a discrepancy or is assigned to investigate a revenue deficiency must do the following:

1. Promptly prepare a full report of the circumstances along with supporting documentation.

2. Submit his or her report to the postmaster at the Post Office™ of mailing or to the MBME.

3. Without delay, forward a copy to the office of the DFM.

Appealing Revenue Deficiencies

A customer, mailer, or agent may appeal a revenue defi­ciency assessment by sending a written appeal within 30 days of receipt of the notification. Mailers must send appeals as follows:

 

 

Type of Revenue Deficiency	If Revenue Deficiency Assessment Is Initiated by…	Submit Written Appeal to…	Final USPS Decision
Underpayment of PO Box Fees, Yearly Application Fees Such as Permit Fees, Periodical Application Fees, and Presort Mailing Fees	Postmaster or MBME	DFM	DFM
Other Fees	Postmaster or MBME	Manager of Pricing and Classification Service Center (PCSC) *	Manager of PCSC *
Underpayment of Mailing Postage (Except Nonprofit)	Postmaster or MBME	Manager of PCSC * (No Second-level Appeal)	Manager of PCSC
	Manager of PCSC	Manager of Mailing Standards MMS) * (No Second-level Appeal)	MMS
Underpayment of Nonprofit Standard Mail Postage	Postmaster or MBME	First-level Appeal to Manager of PCSC * Second-level Appeal	Second-level Appeal MM
	Manager of PCSC	First-level Appeal to MMS *   Second-level Appeal	Second-level appeal to Vice President, Pricing and Classification

* See DMM, 608.8 for addresses.

 

In all cases, the customer, mailer, or agent may be asked to provide additional information and documentation to support the appeal. Failure to submit a written appeal within 30 days of the request is grounds for denying an appeal, and collection efforts are resumed.

Deficiency Payments

After the appeal process is exhausted, proceed to col­lect the amount due based on one of the following three scenarios:

• Full Payment — The customer, mailer, or agent agrees to immediately pay the appealed deficiency amount in full.
• Installment Payment — The customer, mailer, or agent agrees to payment of the appealed deficiency amount, but requests periodic payments rather than a lump sum.
• Settlement Payment — The customer, mailer, or agent proposes a partial payment, and documenta­tion that warrants justification of partial payment must be submitted.

— Accounting Policy,
Finance, 8-28-08