February 1, 2017

In the Matter of the Debt Collection Act Petition

JESSIE ROBY v. UNITED STATES POSTAL SERVICE

P.S. Docket No. DCA 16-234

APPEARANCE FOR PETITIONER
Edith B. Roundtree
President, Branch 154
National Association of Postal Supervisors

APPEARANCE FOR RESPONDENT
Andrew M. Potawsky
Labor Relations Specialist
United States Postal Service

FINAL DECISION UNDER THE DEBT COLLECTION ACT OF 1982

The Postal Service assessed Jessie Roby with a debt of $1,315.60 based on a stamp shortage in a unit reserve account.  I rule in favor of Ms. Roby.

FINDINGS OF FACT

1. Ms. Roby was on annual leave from February 18, 2014, through February 21, 2014 (Tr. 33, 125).  She expected to report to work on Monday, February 24, 2014.  However, on February 20, 2014, Ms. Roby was called and told to report on February 20th to the Midport Station Post Office in Port St. Lucie, Florida, to count the unit reserve stamp stock and accept accountability for it from Rosemary Fiorenza, the then acting manager and unit reserve custodian at Midport Station (Tr. 18, 33, 42, 46, 116; Pet. Exh. 3). 
2. Ms. Fiorenza had been temporarily assigned to Midport Station.  Accountability for the unit reserve needed to be transferred on February 21st from Ms. Fiorenza because she was returning to her permanent work location on February 22nd.  (Tr. 27, 31, 115; Pet. Exh. 3). 
3. The expected quantities of unit reserve stamps in the Point of Sale (POS) System on February 21, 2014, were based on a previous count done on January 28, 2014.  The January 28, 2014 count was signed by Ms. Fiorenza, but it was not signed by the lead sales associate (even though her name appears on the report).  (Pet. Exhs. 1, 3).
4. During the morning of February 21, 2014, Ms. Fiorenza and the lead clerk verified the contents of the unit reserve.  Ms. Fiorenza looked at the contents of the safe and called out numbers for the lead clerk to write down.  The lead clerk did not physically count the stamp stock.  (Tr. 103).
5. Later that day, February 21, 2014, Ms. Fiorenza told Ms. Roby to verify the contents of the safe holding the unit reserve to effectuate the transfer.  Ms. Fiorenza and Ms. Roby did not physically count each item or count the stock together.  While Ms. Roby attempted to verify the contents of the safe, she was interrupted several times.  (Tr. 114-15, 118-19; Pet. Exhs. 1, 8).
6. Ms. Roby and Ms. Fiorenza then signed the POS One Report (PS Form 3294).  The sentence above Ms. Fiorenza’s signature provided:  “I certify the count to be correct[.]”  The sentence above Ms. Roby’s signature provided:  “I have examined this Cash/Stamp Credit[.]”  The report provided that the unit reserve included 150 books of A Flag for All Seasons stamps (Item No. 688400).  (Resp. Exh. 3; Tr. 152, 163).  Each book contained twenty stamps and was worth $9.60 (Tr. 69, 115, 119, 136; Pet. Exh. 8).
7. While Ms. Fiorenza served as the unit reserve custodian, she regularly had difficulty opening the safe and had other employees at Midport Station assist her in opening it.  Ms. Fiorenza would have the other employees dial the combination.  (Tr. 42-43, 47-49).  Those employees continued to work at Midport Station after February 21, 2014 (Tr. 97, 98, 102, 128).
8. Ms. Roby could not open the safe on February 24, 2014 (the first day back at work after being on leave), because Ms. Fiorenza had given Ms. Roby an incorrect combination (Pet. Exh. 5; Tr. 123, 124).
9. On February 25, 2014, after receiving the correct combination, Ms. Roby opened the unit reserve safe for the first time since she took over the unit reserve on February 21st.  Ms. Roby counted the stock that day.  The 150 books of A Flag For All Seasons stamps were not in the safe.  (Tr. 123, 124, 125; Pet. Exhs. 3, 8).
10. Ms. Roby and another employee immediately searched for the missing stamp stock, but could not find it (Tr. 125; Pet. Exh. 8). 
11. On April 12, 2014, Ms. Roby and another employee conducted an audit of the unit reserve and confirmed that it was short the 150 books of A Flag for All Seasons stamps.  The total value of the 150 books was $1,440.  The audit also showed a surplus in Item 9100, Item Conversion, which reduced the unit reserve shortage to $1,315.60.  Ms. Roby and another employee certified the count to be correct.  (Pet. Exh. 2). 
12. The Postal Service assessed a debt of $1,315.60 for the shortage in the unit reserve (Letter of Debt Determination attached to Petition).  Ms. Roby filed a Petition challenging the assessed debt.  The parties agreed to proceed without the Postal Service sending a Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act. 

DECISION

The Postal Service bears the initial burden of showing that Ms. Roby was the accountable unit reserve custodian at Midport Station and that a stock shortage representing an actual loss existed after a properly conducted audit of that account.  Ralph v. United States Postal Service, DCA 15-204 (January 5, 2016); Kelly M. Vo, DCA 13-206 (October 10, 2013).  If the Postal Service meets this initial burden of proof, Ms. Roby may be held liable for the unit reserve shortage unless she shows circumstances sufficient to alleviate or offset the debt.  Id.

The Postal Service assessed a debt of $1,315.60 based on the April 12, 2014 audit.  Ms. Roby does not dispute the accuracy of count.  Instead, she challenges the accuracy of the February 21, 2014 count which she signed. 

The Postal Service has presented a prima facie case by submitting a signed POS One Report showing a shortage.  However the presumptive accuracy of such a report may be overcome by other evidence.  See Cindy L. Chapin, DCA 13-207 (February 21, 2014) (absence of handwritten check marks next to a particular item on count sheet); Queen E. Stevenson, DCA 09-472 (February 26, 2010) (known discrepancy in audit report). 

Ms. Roby argues that the February 21, 2014, count was inaccurate because it showed 150 books of A Flag for All Seasons stamps instead of zero.  Normally, I would discount Ms. Roby’s argument as self-serving given her own signature on the report and thus give it no weight.

However, the record in this case supports Ms. Roby’s argument.  Ms. Roby was called in from annual leave to conduct the count, which means that it was an unplanned count conducted under the time pressure of Ms. Fiorenza leaving Midpoint Station the next day.  Ms. Roby was interrupted during the count.  She was told to verify the stock, not count each item.  And, she was not in Midpoint Station from Friday afternoon until Monday because she was still on annual leave.  The circumstances surrounding the February 21, 2014 count make its accuracy suspect, but by themselves are not enough to overcome the signed POS One Report.

Additional unique facts shift the outcome in favor of Ms. Roby.  On the first day back to work after being on annual leave, Ms. Roby could not open the safe because she was given an incorrect combination.  The next day, when she was finally able to open the safe, she discovered the shortage of 150 books of A Flag For All Seasons stamps and began searching for the missing stamps.  Based on the circumstances, I conclude that Ms. Roby and Ms. Fiorenza inaccurately counted the stamps on February 21, 2014.  Based on the unique facts of this case, I am not persuaded that the unit reserve contained 150 books of A Flag For All Seasons stamps when Ms. Roby took over as the unit reserve custodian. 

In the alternative, while there is no evidence of wrongdoing, it is possible that other employees who had the safe combination accessed the safe over the weekend and removed the 150 books of stamps.  If they used the combination and removed stamps without authorization, Ms. Roby would not be liable for the loss because the stamps were reasonably secured in the safe and Ms. Roby did not cause the shared access to the safe.  Accordingly, Ms. Roby is not liable for the shortage in the unit reserve.

ORDER

The Petition is granted.  The Postal Service may not collect the assessed debt of $1,315.60 by administrative salary offset.

Peter F. Pontzer
Administrative Judge