In the Matter of the Petition by                                )
                                                                               )
CORDELIA MILLS                                                   )
172-40 133rd Avenue Apt. 8F                               )
                                                                               )
   at                                                                         )
                                                                               )
Jamaica, NY 11434-3926                                       )     P.S. Docket No. DCA 98-167

APPEARANCE FOR PETITIONER:                           Charles Scialla
                                                                               453 Preakness Avenue, #5
                                                                               Paterson NJ 07502-1121

APPEARANCE FOR RESPONDENT:                        Stephen M. Yamond
                                                                               Labor Relations Specialist
                                                                               United States Postal Service
                                                                               421 8th Avenue, Room 3505
                                                                               New York, NY 10199-9401

FINAL DECISION UNDER THE DEBT COLLECTION ACT OF 1982

Petitioner, Cordelia Mills, filed a timely Petition requesting an oral hearing under the Debt Collection Act of 1982, as amended, 5 U.S.C. §5514(a), after receiving a Notice of Involuntary Administrative Salary Offsets on March 20, 1998. The Notice advised Petitioner that she was indebted to the Postal Service in the amount of $5,727.62 resulting from a shortage in the Cash Retained portion of her accountability at the Hells Gate Station of the New York Post Office.

A hearing was held on June 23, 1998, in New York, NY. The Postal Service presented the testimony of six employees. Petitioner presented the testimony of one employee as well as testifying on her own behalf. In addition to the transcript of the hearing, the record also contains Respondent's Exhibits R-1 through R-17, and Petitioner's Exhibits P-1 and P-2.

FINDINGS OF FACT

1. Petitioner is a supervisor of customer services, and is currently assigned to the Washington Bridge Station of the New York Post Office. From 1994 until earlier this year Petitioner was assigned to the Hells Gate Station. Included in her responsibilities at the Hells Gate Station was the accountability for the unit reserve stamp stock and a "cash retained" account. (Transcript pages (Tr.) 74, 84).

2. On January 27, 1998, an audit was performed of Petitioner's accountability. This audit disclosed an overage in Petitioner's stamp stock of $54.29 and a shortage in Petitioner's cash retained account of $5,727.62. Petitioner's accountability was audited a second time on the same date and with the same result. Petitioner signed the audit documents thereby indicating her concurrence in the accuracy of the audit's findings. (Tr. 78; Respondent's Exhibits (RX) 2-5, 7).

3. Petitioner kept the cash retained account in a lockable tin box in the station's vault. The vault contained both an inner and outer area. Only Petitioner had access to the inner vault, and that was where she kept her stamp stock. The tin box containing the cash was kept in the outer vault. This outer vault area remained open during the day since the clerks kept their stamp drawers in this area. (Tr. 59, 60, 77, 78).

4. The cash in the "cash retained" account was used, among other uses, to provide change to the clerks at the station. Since Petitioner did not begin work each day until 10:30 a.m., the station manager arranged that she and four other supervisors (or acting supervisors) had keys to the cash box so that they could have access to it to allow them to make change in Petitioner's absence. (Tr. 9, 34, 46, 48-50, 77). It was also the practice of the station manager (and was common knowledge at the station), to keep her key to the cash box in an unlocked drawer in her desk (Tr. 46, 47, 81). Petitioner complained to the station manager that these practices prevented her from protecting the cash which was included in her accountability (Tr. 86, 96, 97).

5. Amongst those individuals with a key to the cash box was the station's 204-B clerk⁽¹⁾. On one occasion, this individual lost all her keys to the locks at the station (including the lock on the cash box). However, the locks were not changed because of this loss. (Tr. 51, 53, 96).

6. The Hells Gate Station manager did not transfer Petitioner's accountability to another supervisor when Petitioner took a vacation, or even when she served on jury duty for a 30-day period (Tr. 46, 78). This was contrary to Postal Service regulations (see §421 of Handbook F-1, Post Office Accounting Procedures), as well as contrary to the policy of the New York Post Office (Tr. 29, 35, 36; Petitioner's Exhibit P-2).

DECISION

Petitioner does not dispute that a shortage of $5,727.62 occurred in the cash retained portion of her accountability. She argues, however, that the policy of the station manager at the Hells Gate Station, of allowing numerous individuals to have access to the cash box, as well as the failure to transfer Petitioner's accountability when she was on vacation or extended jury duty, should relieve her of any responsibility for the shortage. Petitioner further argues that management's failure to change the locks at the station after the 204-B clerk lost her keys should likewise relieve her of responsibility for the shortage in her account. Finally, Petitioner argues that she conscientiously followed Postal Service policies and procedures and that this is demonstrated by the fact that her stamp stock, which was kept in an area where only she had access, did not have a shortage.

Respondent argues that Petitioner was an experienced financial supervisor who has not denied the fact that a shortage occurred in her accountability or that the shortage was in the amount of $5,727.62, and that she should be held strictly liable unless she can demonstrate that she exercised reasonable care. Respondent further argues that Petitioner should be estopped from arguing that management failed to provide security, thereby contributing to the shortage, because she did not complain about a lack of security until the hearing in this Petition and never filed a written complaint concerning the lack of security.

It would be manifestly unfair to hold Petitioner alone responsible for the loss that occurred in the cash retained account at the Hells Gate Station. Although Petitioner was assigned nominal responsibility for this account, under the management policy that existed at the station, at least five other supervisors held keys to, and had access to the cash box.

Since management instituted the policies (and was well aware of those policies), that resulted in multiple access to the cash retained account, it is no defense to this Petition that Petitioner did not complain in writing concerning that situation.

Accordingly, Petitioner is not liable for the loss of $5,727.62 from the cash retained account and this Petition is sustained.

William K. Mahn
Administrative Judge

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1. The "204-B" is a clerk that has finance responsibilities. (Tr. 48).