Effective immediately, the following sections of Handbook F-1, Accounting and Reporting Policy, are revised to reflect current Postal Service™ policy.
Handbook F-1, Accounting and Reporting Policy
Transmittal Letter
[Revise 4 to read as follows:]
4. Comments and Questions. Address any comments or questions on the content of this handbook to:
FIELD AND INTERNATIONAL ACCOUNTING
US POSTAL SERVICE HEADQUARTERS
475 L’ENFANT PLZ SW RM 8831
WASHINGTON DC 20260-5242
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2 General Policies
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2-4 Financial Reporting Framework
2-4.1 Financial Reporting Framework
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2-4.1.2 Finance Numbers
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2-4.1.2.1 Field Units Policy
[Revise first paragraph to read as follows:]
Requests for new finance numbers must have the concurrence, depending upon the point of origin, of the district manager and the vice president of Area Operations. The request providing the justification for a new finance number must be submitted with supporting documentation to the manager of Field and International Accounting, Headquarters, for review and concurrence. If Accounting concurs, the request is forwarded to the deputy postmaster general/chief operating officer (DPMG/COO) for final approval of the field request. Corporate Accounting will advise the originating requestor or designated contact whether the request is approved or denied.
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2-4.1.3 Chart of Accounts
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2-4.1.3.2 Headquarters Units Policy
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[Revise second paragraph to read as follows:]
All Headquarters unit requests for changes in the charts of accounts must be submitted directly to Field and International Accounting, Headquarters.
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2-4.1.11 Accounting Accruals
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2-4.1.11.2 Headquarters Units Policy
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2-4.1.11.2.5 Liquidation of Accruals
[Revise section to read as follows:]
Corporate Accounting and Accounting Services must ensure that all prior-year field accruals are cleared or reversed by the date stated in the closing instructions:
a. All accruals are reversed against their associated actual transactions as the actual transactions are processed.
b. Accruals for a fiscal-year close that are not liquidated by the following November close are reversed as a credit to a service-wide finance number.
c. Any related, subsequent current-year payments will then be charged as a current-year expense to the budget holder.
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2-4.1.13 Journal Entries
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2-4.1.13.2 Headquarters Units Policy
[Revise section to read as follows:]
Journal entries originated by Corporate Accounting and Accounting Services must be approved by an authorized individual prior to entry into the JEV system. The posting of all journal vouchers to the general ledger must be verified by Accounting Services JEV entry location personnel.
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2-5 Internal Controls
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2-5.2 Internal Control Monitoring
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2-5.2.1 Separation of Duties
2-5.2.1.1 Field Units Policy
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[Revise second paragraph to read as follows:]
If a separation of duties cannot be maintained due to staffing limits, a deviation must be approved in writing by the next higher level manager with concurrence from the district finance manager (DFM). Working postmasters in cost ascertainment grouping (CAG) H through L offices are excluded from requesting an approval of deviation. The area accounting manager or designee is responsible for randomly reviewing offices that cannot maintain a separation of duties to ensure financial controls are not violated and reporting the results to the district finance manager.
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2-5.2.1.2 Headquarters Units Policy
[Revise section to read as follows:]
Headquarters units must separate the duties of employees who account for assets from those who have access to various assets, and of employees who authorize transactions from those who record or reconcile data, etc. Segregation of duties policies that apply to specific areas are set forth within those sections of this handbook or in specific desk procedures within each Headquarters unit’s operation.
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2-8 Regulatory Compliance
[Revise section to read as follows:]
Although the Postal Service is exempt from complying with many laws and regulations, Field and Headquarters units must comply with designated laws and regulations that specifically affect financial reporting as determined by Corporate Accounting and General Counsel.
Corporate Accounting and Payroll Accounting will monitor changes in laws and regulations and will coordinate with Accounting Services to ensure compliance.
When a conflict exists between bargaining agreements and Laws/Regulations in financial reporting, Laws/Regulations will take precedent in compliance.
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3 Assets
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3-1 Cash and Cash Equivalents
3-1.1 Operating Cash
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3-1.1.2 Headquarters Units Policy
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3-1.1.2.2 Customer Refunds
[Revise section to read as follows:]
Accounting Services is not authorized to make cash refunds. All refunds should be processed by EFT or check.
Accounting Services is authorized to make refunds of postage meter balances to customers after validation of the meter register readings in NMAT.
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3-2 Receivables and Allowance for Uncollectible Accounts
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3-2.2 U.S. Government Receivables
3-2.2.1 Field Units Policy
[Revise section to read as follows:]
On the first business day after the 15th of the month, field units not activated on PostalOne!, with official mail activity, must close out their monthly reports for all transactions since the previous month’s closeout and forward to the Scanning and Imaging Center (SIC) for processing by Accounting Services. PostalOne! sites do not perform a monthly close out, all official mail transactions must be entered daily into the PostalOne! system.
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3-2.3 Other Receivables
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3-2.3.2 Headquarters Units Policy
[Revise section to read as follows:]
The establishment and/or adjustment of an accounts receivable must be processed by an authorized employee except for those generated automatically by system business rules.
Accounting Services is responsible for moving field unit receivable items to the Oracle accounts receivable system. A properly completed PS Form 1902 must be received from a field unit. Accounting Services is also responsible for monitoring accounts receivable activity and for generating invoices, monthly statements, and delinquency notices for accounts receivable items.
Finance charges may be assessed on delinquent receivable accounts as determined by Corporate Accounting and other stakeholders. This group is also responsible for advising Accounting Services of any change in the finance rate and date of implementation.
Accounting Services is authorized to process customer overpayments refunds to customers as identified. Unapplied cash receipts related to accounts receivable must be reviewed by Accounting Services in detail not less than once per month to facilitate timely resolution of all such items. Individual receivable items may be adjusted by Accounting Services for many reasons, including, but not limited to, cases of bankruptcy notification, grievance settlements, or the death of current or former employees. To be processed, accounts receivable adjustments require approvals within the Oracle accounts receivable system based on the dollar value of the adjustment. Adjustments and credit memos over $5,000 to any individual receivable item must be approved by an Executive and Administrative Schedule (EAS) employee from Accounting Services or Headquarters.
With the exception of active employee receivable items, individual receivable items less than $25 may be adjusted by Accounting Services with no additional approval.
Uncollected individual receivable items over $25 meeting Cross Servicing criteria will be turned over for collection.
Accounting Services is responsible for following the provisions of the Debt Collection Improvement Act (DCIA). This act provides the option of referring delinquent debt to a collection agency and/or the U.S. Treasury offset program.
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3-2.4 Allowance for Uncollectible Accounts
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3-2.4.2 Headquarters Units Policy
[Revise section to read as follows:]
Allowance for uncollectible accounts is reviewed and evaluated quarterly for overall reasonableness by Corporate Accounting and Accounting Services.
Accounting Services generates and reviews aging reports monthly for unusual items or trends that could impact the quarterly allowance review. The quarter end allowance adjustments must be approved by Corporate Accounting.
Accounting Services is authorized to request field units to provide an assessment of receivable collectability if necessary.
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3-6 Property and Equipment
3-6.2 Buildings, Land, and Leasehold Improvements
3-6.2.1 Responsibilities
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3-6.2.1.2 Headquarters Units Policy
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3-6.2.1.2.2 Facilities
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FSOs managers ensure that:
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[Revise item e to read as follows:]
e. Assets and Payables, Corporate Accounting, provides guidance to Accounting Services in regard to complex and nonstandard real estate transactions (e.g., swaps, sales-and-leasebacks) prior to recordation.
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3-6.6 Construction in Progress
[Revise section to read as follows:]
The Postal Service records the costs of all construction projects and segregates those costs in separate general ledger accounts to facilitate accounting and financial reporting requirements. Construction-in-progress asset detail information must be maintained to adequately specify projects for capitalization. Construction-in-progress projects are capitalized as depreciable assets when deployed (equipment) or when placed into service (buildings). The Postal Service records property and equipment at cost, including the interest paid on the money borrowed to pay for the construction of major capital additions.
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3-6.6.2 Headquarters Units Policy
[Revise section to read as follows:]
Assets and Payables, Corporate Accounting, develops policy for capitalization of assets.
Accounting Services periodically reconciles construction-in-progress asset records with their applicable general ledger accounts.
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4 Liabilities
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4-3 Customer Deposit Accounts
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4-3.2 Headquarter Units Policy
[Revise section to read as follows:]
The unused balance of a postage evidencing device (PED) is a liability to the Postal Service. Accounting Services is responsible for identifying and correcting Meter Movement Report (MMR) and Computerized Meter Resetting System (CMRS) errors identified in the web-based National Meter Activity Tracking System (NMATS).
Accounting Services is authorized to make refunds of PED balances to customers after validation of the meter register readings in NMAT.
When a customer sends a check to load a PED under CMRS, and the check is returned, the bank will notify the meter company. If collection is necessary, Accounting Services will send the customer a collection letter via First-Class Mail service. If not collected in a timely manner, the check will be forwarded to the Postal Service’s outside collection agency for collection.
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6 Revenues
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6-1 Commercial Revenue
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6-1.2 Official Mail
6-1.2.1 Field Units Policy
[Revise section to read as follows:]
On the first business day after the 15th of the month, field units not activated on PostalOne!, with official mail activity, must close out their monthly reports for all transactions since the previous month’s closeout and forward to the Scanning and Imaging Center (SIC) for processing by Accounting Services. PostalOne! sites do not perform a monthly close out; all official mail transactions must be entered daily into the PostalOne! system.
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6-2 Retail Revenue
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6-2.2 Headquarters Units Policy
[Revise first paragraph to read as follows:]
The Postal Service records revenue from national, alternate channel programs such as Click-N-Ship and consignment stamp sales as the funds produced through those sales are collected.
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We will incorporate these revisions into the next printed version of Handbook F-1 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, 10-21-10
