Effective immediately, Handbook F-23, Accounting Policy Reference, is revised to reflect current Postal Service™ policy.
Handbook F-23, Accounting Policy Reference
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2 General Policies
2-1 Basis of Accounting and Use of Estimates
2-1.1 Generally Accepted Accounting Principles
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[Revise the title of 2-12 to read as follows:]
2-12 Financial Testing and Compliance Group
2-12.1 Purpose
[Revise 2-12.2 to read as follows:]
The mission of the Postal Service Financial Testing and Compliance Group is to test key field financial controls in support of compliance with accounting policies and in support of the Postal Service’s external auditors’ audit opinion.
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2-12.2 Responsibilities
[Revise 2-12.1 to read as follows:]
The testers in the Financial Testing and Compliance Group are responsible for performing operational effectiveness testing on key internal controls in the field and for performing the following:
a. Identifying key internal controls within business processes.
b. Developing and implementing testing plans that:
n Coordinate with process owners throughout the testing process.
n Document test results and findings.
n Communicate results and findings to the remediation team and recommend corrective actions.
c. Executing testing after remediation.
d. Communicating results to stakeholders.
e. Documenting and maintaining test results for internal and external review.
Testing locations include, but are not limited, to the following:
a. Post Offices.
b. Business mail entry units and detached mail units.
c. Stamp distribution offices and stamp distribution centers.
d. Kansas City fulfillment center.
e. Distribution network offices.
f. Automated postal centers.
g. Plants.
h. Contract management centers.
i. Organizationwide activities e.g., procurement activities).
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3 Assets
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3-1 Cash and Cash Equivalents
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[Revise item e to read as follows:]
e. Checks outstanding are recognized as a reduction of cash and cash equivalents for financial reporting purposes.
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3-5 Inventories
[Revise the first paragraph of 3-5 to read as follows:]
Inventories, which are composed principally of supplies and repair parts for mail processing equipment, are classified as current assets on the balance sheet. Retail products are classified as inventory until distributed to retail outlets. The majority of inventory is held at the Topeka Material Distribution Center under the supervision of Material Production and Distribution.
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3-7 Property and Equipment
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3-7.2 Specific Policies
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3-7.2.1 Buildings
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3-7.2.1.3 Depreciation
[Revise 3-7.2.1.3 to read as follows:]
The Postal Service depreciates buildings over a service life of 40 years. Depreciation starts the month following the month of capitalization and stops when the building is fully depreciated. If the building is disposed of before becoming fully depreciated, depreciation ceases in the month in which the disposal action is recorded in the general ledger.
The Postal Service depreciates improvements over the remaining service life of the improved building. The improvement cost is added to the undepreciated cost of the building. The depreciation pertaining to the improvement starts the month following the month of capitalization of the improvement cost. Improvements made in the last year of depreciation are depreciated over the remaining months in that fiscal year. When a building is fully depreciated, the improvement is depreciated over 1 year.
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3-7.3 Fully Depreciated Assets
[Revise 3-7.3 to read as follows:]
Fully depreciated assets that remain in service are carried in the financial statements in their respective cost and accumulated depreciation except for capital leased assets, which revert to the lessor at the end of the lease.
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We will incorporate these revisions into the next printed version of Handbook F-23 and into the next online update, available on the Postal Service™ PolicyNet website:
n Go to http://blue.usps.gov.
n In the left-hand column under “Essential Links”, click PolicyNet.
n Click HBKs.
(The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.)
— Field and International Accounting,
Controller, 8-26-10
