Effective January 22, 2015, the Postal Service™ is revising the following sections of Handbook F-1, Accounting and Reporting Policy, to reflect current policy.
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Handbook F-1, Accounting and Reporting Policy
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2 General Policies
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2-4 Financial Reporting Framework
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2-4.1 Financial Reporting Framework
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2-4.1.2 Finance Numbers
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2-4.1.2.2 Headquarters Units Policy
[Revise the first paragraph of 2-4.1.2.2 to read as follows:]
Before a new administrative finance number will be issued for a Headquarters entity, confirmation that Organizational Effectiveness, under the vice president of Employee Resource Management, has officially approved the new organizational entity must be provided.
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2-4.1.3.1 Field Units Policy
[Revise 2-4.1.3.1 to read as follows:]
Although infrequent, field units may request changes to the Legacy Chart of Accounts. Requests for changes must be submitted via email through the area Finance office to FNCM-HQ.
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2-4.1.3.2 Headquarters Units Policy
[Revise the second sentence of 2-4.1.3.2 to read as follows:]
***All Headquarters unit requests for changes in the charts of accounts must be submitted directly via email to FNCM-HQ.***
[Revise item 3 to read as follows:]
3. Authorizing additions, changes, or deletions of Legacy and Natural Accounts via an AIC/GLA Form.
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2-4.1.7.1 Field Units Policy
[Revise the second paragraph of 2-4.1.7.1 to read as follows:]
Field unit managers/Administrative Post Office managers must ensure that the daily financial report is prepared in accordance with the procedures detailed in Handbook F-101, Chapter 5.
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3-1.1.1.6 Customer Refunds
[Revise the first paragraph of 3-1.1.1.6 to read as follows:]
Field unit refunds are limited to a maximum of $1000 (except for Sure Money refunds for the transaction amount) and must be fully documented and authorized. Refund payments can be made locally by no-fee money order not to exceed $1000, or cash not to exceed $25. Refunds over $1000 should be sent to the SIC for processing by Accounting Services.
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3-1.1.2.1 Operating Cash and Cash Receipts
[Revise item a to read as follows:]
a. Opening mail/batching receipts.
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3-1.3.2 Headquarters Units Policy
[Revise the third paragraph of 3-1.3.2 to read as follows:]
Returned checks under $5,000 are authorized to be sent directly to the collection agency contracted by the USPS. NSF checks of $5,000 or more are the initial responsibility of Accounting Services to collect. Returned checks that remain uncollected after exhausting Accounting Services collection efforts are authorized to be sent to the collection agency contracted by the USPS.
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3-1.5.2 Headquarters Units Policy
[Revise the second paragraph of 3-1.5.2 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 two years. Each month, Accounting Services is required to record these items as miscellaneous revenue and at the end of each quarter, to request approval from Corporate Accounting for any adjustment of the escheatment account. When requested, these money orders or a replacement commercial check may be reissued to the purchaser or payee designated by the purchaser. Accounting Services maintains an escheatment offset reserve to account for money orders cashed subsequent to escheatment. This reserve is reviewed quarterly.
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3-1.6.1 Field Units Policy
[Revise 3-1.6.1 to read as follows:]
When it is required that a field unit process a payment, field units should use the following payment methods in accordance with established hierarchy order of priority:
a. Electronic Funds Transfer with eBuy2 and National/Area Contracts.
b. Purchase Card Account Local Payments.
c. Purchase Card Account Checks.
d. PS Form 2551, Non-Goods and Non Services Payment Authorization.
e. Cash and No-Fee Money Order Local.
In field units, local payments must be avoided and only used in emergency situations following procedures in Handbook F-101.
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3-1.6.2 Headquarters Units Policy
[Revise the second to last bullet of 3-1.6.2 to read as follows:]
n Issuing “stop-payments” for checks issued to payees within 2 business days after formal notification in writing from the payee. Note: Payments are not stopped until 14 calendar days following the check date to allow time for the check to clear.
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[Revise the title of 3-2.3 to read as follows:]
3-2.3 Other Employee Item Receivables
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3-2.3.1 Field Units Policy
[Revise the fourth, fifth, and sixth paragraphs of 3-2.3.1 to read as follows:]
Each field unit must maintain a master control of employee items, either a system-generated report or a manual ledger, listed by individual item with total amount.
Employee items are defined as any unresolved emergency salary issued, advance travel issued, and employee stamp stock and/or cash credit shortage. The field unit manager or supervisor must ensure employee items are resolved in a timely manner.
If authorized, field unit employee items may be moved to the Oracle Accounts Receivable system. A properly completed PS Form 1902, Justification for Billing Accounts Receivable, must be submitted to Accounting Services. Supporting documentation must be retained locally, and the field unit must record proper entries to their daily financial report.
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3-2.4.2 Headquarters Units Policy
[Revise the first paragraph of 3-2.4.2 to read as follows:]
Allowance for uncollectible accounts is reviewed and evaluated quarterly for overall reasonableness by Corporate Accounting and Accounting Services. A separate allowance account is maintained for foreign country receivables.
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3-6 Property and Equipment
[Revise the sixth paragraph of 3-6 to read as follows:]
Facilities Service Offices (FSOs) are responsible for notifying Corporate Finance on a timely basis for the acquisition and disposal of buildings, land, and leasehold improvements.
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3-6.3.2.2 Headquarters Units Policy
[Revise the first paragraph of 3-6.3.2.2 to read as follows:]
Building costs are capitalized after the building is beneficially occupied, the technical work is completed, and the Postal Service accepts the total facility for occupancy or use, unless the total project cost is less than $10,000.
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3-6.3.3.2 Headquarters Units Policy
[Revise the sixth sentence of 3-6.3.3.2 to read as follows:]
***Improvements, except major capital, made to a fully depreciated facility are depreciated over the next 12 months following the month of capitalization. The improvement cost is capitalized by adding to the carrying value of the building.***
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3-6.4.2.2 Headquarters Units Policy
[Revise the first sentence of 3-6.4.2.2 to read as follows:]
The Postal Service capitalizes all acquisitions of land unless the total project cost is less than $10,000.***
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3-6.5.2.2 Headquarters Units Policy
[Revise 3-6.5.2.2 to read as follows:]
The Postal Service capitalizes leasehold improvements if the cost is $10,000 or more.
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4-2.1.1.1 Field Units Policy
[Revise the last paragraph of 4-2.1.1.1 to read as follows:]
Payments to field unit cleaning suppliers for non-recurring, one-time cleaning services may be made locally by no-fee money order, not to exceed $1,000, or cash, not to exceed $25.
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7-1.1 Field Units Policy
[Revise the first sentence of 7-1.1 to read as follows:]
The Postal Service records compensation expense based on entries to the timekeeping system, eAwards system, and through miscellaneous payroll forms mailed to the SIC.***
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7-3.4 Training
[Revise the second paragraph of 7-3.4 to read as follows:]
Management Instruction EL-710-2013-1 establishes the policy and procedures for requesting and approving funds for training.
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7-3.5.1 Field Units Policy
[Revise the last paragraph of 7-3.5.1 to read as follows:]
For annual payments of $10,000 or more to a self-employed individual or annual payments of $2,500 or more to a cleaning service company, the contract request must be sent to the Category Management Center (CMC). The CMC will issue the cleaning services contract and send to Accounting Services located in San Mateo.
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7-3.9.1 Field Units Policy
[Add sentence at the end of 7-3.9.1, before the Note, to read as follows:]
The damaged article must be retained at the field unit until the claim is resolved. All claims must be submitted properly to Accounting Services to provide proper customer service and streamline internal processing.
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7-4 Interest Expense
[Add sentence at the end of 7-4 to read as follows:]
Accounting Services is responsible for the recording of capitalized interest.
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We will incorporate these revisions into the next online update of Handbook F-1, Accounting and Reporting Policy, which is 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.
— Revenue and Field Accounting,
Controller, 1-22-15
