Effective immediately, Handbook F-1, Accounting and Reporting Policy, is revised to reflect current Postal Service™ policy. The following changes are covered below:
n Monitoring outstanding money orders at Headquarters (HQ) units.
n Making cash disbursements at HQ units.
n Reporting and recording on buildings, land, and leasehold improvements.
n Evaluating impairment of long-lived assets.
n Adding approval levels for international payables.
n Updating overall responsibilities for Stamp Distribution Centers (SDCs) at HQ units.
n Handling insurance claims in field units.
Handbook F-1, Accounting and Reporting Policy
* * * * *
3 Assets
* * * * *
3-1 Cash and Cash Equivalents
* * * * *
3-1.5 Money Orders
* * * * *
3-1.5.2 Headquarters Units Policy
* * * * *
[Revise the second paragraph to read as follows:]
Accounting Services is responsible for monitoring outstanding (un-cashed) money orders and identifying money orders that are outstanding for more than 2 years. Each month, Accounting Services is required to record these items as miscellaneous revenue and to notify Corporate Accounting quarterly of the balance for escheatment. When requested, these money orders or a replacement commercial check may be reissued to the payee.
* * * * *
3-1.6 Cash Disbursements
* * * * *
3-1.6.2 Headquarters Units Policy
[Revise text to read as follows:]
No one Postal Service employee must be allowed to be responsible for any two of the following cash disbursement-related duties:
a. Preparing checks.
b. Approving disbursements.
c. Signing checks.
d. Reconciling bank accounts.
e. Acting as custodian of petty cash (imprest fund).
f. Controlling and verifying the balances of computerized cash disbursement data.
The preferred method of paying all recurring Postal Service expenses is through EFT.
Accounting Services responsibilities include, but are not limited to the following:
n Ensuring vendor offsets comply with government mandates.
n Releasing only vendor payable, payroll payable, payroll checks, and EFTs that have been “certified” for payment.
n Issuing disbursement checks only with the written authorization of the Accounting Service Center Manager or designee located in Eagan.
n Complying with all payment rules and regulations associated with payments to foreign postal administrations.
n Monitoring payments required to be denominated in foreign currencies.
n Matching uncertified invoices from suppliers to a purchase order and a receiving report to be eligible for payment certification. Invoices from suppliers operating under the terms of approved contracts must be consistent with the terms of those contracts to be eligible for payment.
n Taking action on “stop-payment” requests received from suppliers. These requests must be in writing.
n Issuing “stop-payments” for checks issued to payees within 7 business days of the day of claim.
n Periodically scheduling checks outstanding (un-cashed for more than 2 years) to be recorded as miscellaneous revenue. When requested, these checks may be reissued to the payee.
* * * * *
3-6 Property and Equipment
* * * * *
3-6.2 Buildings, Land, and Leasehold Improvements
3-6.2.1 Responsibilities
* * * * *
3-6.2.1.2 Headquarters Units Policy
* * * * *
3-6.2.1.2.2 Facilities
* * * * *
[Revise items c and e to read as follows:]
c. Prompt decisions are made on the disposition of excess USPS property.
* * * * *
e. Assets and Payables, Headquarters, provides guidance to Accounting Services in regard to real estate transactions prior to recordation.
* * * * *
3-6.2.1.2.4 Accounting Services
[Revise text to read as follows:]
Accounting Services performs the following functions:
a. Maintains subsidiary ledgers for Real Property, Leasehold Improvements, and the Interest Capitalization System.
b. Prepares management reports for tracking the status, and ensuring the timely capitalization, of Facilities capital projects.
c. Prepares other internal reports necessary to reconcile the Facilities eFMS database against the Real Property and Leasehold Improvement Subledgers.
d. Prepares journal voucher entries to record the gain or loss on real property disposals.
* * * * *
3-6.10 Maintenance and Expense
[Revise the introductory paragraph to read as follows:]
The Postal Service expenses routine repair and maintenance costs for buildings, as well as repair, improvement, and modernization projects that do not meet the capitalization requirements. Expenditures that extend the useful life of the asset should not be expensed. The following types of repair, improvement, modernization, or replacement projects, regardless of amount, are considered expenses:
* * * * *
3-7 Impairment of Long-Lived Assets
[Revise the introductory paragraph to read as follows:]
The Postal Service must evaluate whether information exists that would indicate the Postal Service may be unable to recover, through future operations or sale, the carrying amount of a long-lived asset.
* * * * *
4 Liabilities
* * * * *
4-2 Payables and Accrued Expenses
* * * * *
[Revise title of 4-2.2 to read as follows:]
4-2.2 Foreign Countries Payables and ASC Approval Levels
[Revise 4.2.2 to add 4-2.2.1, Foreign Countries Payables, and place all current text in this section.]
* * * * *
[Add new 4-2.2.2 to read as follows:]
4-2.2.2 ASC Approval Levels
Accounting Service Center personnel are authorized to approve payments in US dollars (USD) up to $10 million. Payments above that amount have to be approved by the Program Manager of International Postal Development in Field and International Accounting, HQ. Additionally, Accounting Service Center personnel are authorized to approve foreign currency payments up to the equivalent of $500,000 USD. Foreign currency payments equivalent to more than $500,000 USD are approved by the Program Manager of International Postal Development in Field and International Accounting, HQ.
* * * * *
4-11 Accountable Paper
* * * * *
4-11.1 Overall Responsibilities
* * * * *
4-11.1.2 Headquarters Units Policy
[Revise text to read as follows:]
The Manager of Retail Fulfillment and Logistics at Headquarters has the following responsibilities:
a. Close SDOs.
b. Establish new Stamp Distribution Centers (SDCs).
c. Ensure each SDC follows established procedures, is properly staffed, and is equipped with Postal Inspection Service–approved security, which may include a safe or vault to secure accountable paper.
d. Ensure that a physical count of every “On-Sale” item in the SDC inventory is conducted at least once a year through weekly cycle counts and that a physical count of the SDC inventory is conducted when custody of the SDC is transferred between individuals.
The SDC manager oversees the daily operations of receiving and shipping accountable paper to all field units within the SDC-designated area of distribution.
The stamp distribution manager at the SDC is accountable for the assigned postal and nonpostal stock in the SDC and is responsible for maintaining adequate accountable paper inventory to fill stamp stock requisitions. The supervisor may be assigned to supervise stamp destruction activities.
Locating missing vendor registered stamp stock shipments and nonregistered envelope and postal card shipments is the responsibility of the SDO or SDC.
The MDC is responsible for supplying money order sets, domestic and international, to field units within its service area.
* * * * *
7 Expenses
* * * * *
7-3 Other Operating Expense
* * * * *
7-3.9 Indemnities
7-3.9.1 Field Units Policy
[Revise text to read as follows:]
Field units are not authorized to locally adjudicate customer claims.
n If a customer submits PS Form 1000, Domestic or International Claim, for a lost domestic article, the field unit must ensure that the PS Form 1000 submitted to Accounting Services is properly completed by the customer and includes the customer’s signature. In addition, proof of insurance and evidence of value must be attached to the PS Form 1000 sent to Accounting Services in St. Louis.
n If a customer submits PS Form 1000 for a damaged domestic article, the field unit must also complete PS Form 2856, Damage Report of an Insured Parcel and Contents, and submit it together with properly completed PS Form 1000, proof of insurance, and evidence of value to Accounting Services. The damaged article must be retained at the field unit until the claim is resolved.
n If a customer attempts to file PS Form 1000 for a lost international article, the field unit must direct the customer to contact the International Inquiry Center (IIC) at 800-222-1811. The IIC will provide the customer with information on the inquiry and claims process.
n If a customer submits PS Form 1000 for a damaged international article, the field unit must also complete PS Form 2856, and submit it together with the properly completed PS Form 1000, proof of insurance, and evidence of value to Accounting Services in St. Louis. The damaged article must be retained at the field unit until the claim is resolved.
Note: If the damaged article was mailed from Canada, then the field unit must direct the customer to contact the sender to initiate a claim with Canada Post.
* * * * *
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, 1-27-11
