SOX Compliance

1. SOX Compliance 1412/Banking Financial Differences

2. What is SOX? • Sarbanes-Oxley Act (SOX) of 2002 • How did this come about? *Large corporate financial scandals. • As a result of SOX, Section 404 Postal Act of 2006 *The US Postal Service is mandated as an organization to be SOX Compliant by September 30, 2010 • Who will the USPS be accountable to for SOX Compliance? *Postal Regulatory Commission (PRC) as well as independent regulatory oversight.

3. United State Postal Service • What does SOX mean to each of us? *Accountability-SOX Compliance is not optional it is mandatory. • Can we expect audits from Area and OIG? *Yes, presently SOX audits are taking place in the CO/WY District. • What will auditors be looking for? *Effectiveness and efficiency of operations *Reliability of financial reporting *Compliance with applicable laws and regulations

4. SOX is about • Good business practices • Accountability and ownership • Effective execution of controls • Timely, accurate and authorized transactions • Across-the-board consistencies in managing postal processes, procedures and databases

5. SOX is not about • Meeting revenue goals • Meeting service standards • Productivity targets • Waiting time in line at the post office

6. What training, tools and resources are available to me to ensure my office is SOX Compliant by June 30, 2010 the Co/Wy District goal? • SOX Compliance Tools and Resources Webpage • Ongoing Web meetings – SOX Compliance Training • SOX Compliance Hotline – (303) 853-6704 8am-6pm M-F 9 am-12 noon Saturday *Finance questions *BMEU questions • Accounting Help desk - 1-866-974-2733, send an email to Help Desk, Accounting - St. Louis, MO • helpdeskaccounting-st.louismo@usps.gov • The Colorado/Wyoming District is committed to delivering ongoing training and communications to make you more aware of what we need from you to become and remain SOX compliant.

7. Colorado/Wyoming SOX Compliance Website • http://cowyoming.usps.gov/index.cfm?treeID=47280

8. References F 101 Policy Net Accounting Home Page Blue Page (Work Tab)(References)(MoreReferences) POS ONE Website User Information - Training (Left Side) NCR POS ONE Training and Links POS ONE Procedures Guide POS ONE Functionality Guides (Training Sheet)

9. Management Responsibilities • F 101, Chapter 2, 2-4 Field Unit Responsibilities • This chapter reviews daily, weekly, quarterly and annual responsibilities. • 2-4.1 – Daily Responsibilites related to 1412, closeout and Financial Differences • Closeout is more than just preparing the deposit, management is responsible to ensure procedures are carried out correctly – • Verify support documents to AIC – • Verify PVI machines in balance – • All funds are deposited each day

10. What is a PS Form 1412? • The PS Form 1412 is the beginning link in the chain of financial reporting. This form is used to record all daily financial transactions. • Each working day, a PS Form 1412, Daily Financial Report, is completed by a retail associate. This individual PS Form 1412 summarizes all the financial transactions of retail associates. • Individual PS Forms 1412 (prepared by retail associates) are added together to create a Consolidated Unit PS Form 1412 summarizing all of the financial transactions for the entire postal retail unit. • Today, electronic versions of the PS Form 1412 are based on this original form. Prior to data being transmitted electronically, the manual (paper) PS Form 1412 was used by all postal retail units.

11. Let’s Look at the 1412

12. Start with the Receipt Side • Verify each AIC and support documents submitted • Examples: • AIC 114-Postage Due / BRM Invoice– PS Forms 3584 Postage Due Log and/or 3582P BRM/Postage Due Invoice • AIC 108 –Premium Forwarding Service Application Fee-PS Form 8176 – Premium Forwarding Application • AIC 264 US Passport Fees– PS Form 5659 – Passport Transmittal • AIC 109 – Postage Value Imprinter (PVI) – POS PVI Verification (POS & IRT) • AIC 110 – Post Office Postage Meter Sales – PS Form 3602-PO WebBats Activity Report by Date and Receipt Report by Date Postal One Reports – PS Form 3083 Periodical, Permit and BRM/PD Non Postal One office the manual PS Form 3083 • AIC 247 – Financial Differences Overage - PS Form 1908 Financial Adjustment Memorandum • Continue with the Disbursement AIC verification using the Support Documentation Crosswalk. • Support Documentation

14. Miscellaneous AIC’s • AIC 123 - Lobby Service Revenue - Funds collected from Post Office Box keys (refundable and non-refundable fees), P O Box lock replacement fee, unresolved overages from employee stamp credits (more than one year old), and unresolved overages from cash credits (more than 90 days old). • P O Box Keys • P O Box Key Replacement • P O Box Lock Replacement • Unresolved Employee Stamp Overage • Unresolved Employee Cash Overage • P O Box Late Fee • AIC 126 - Miscellaneous Non-Postal Revenue - Funds collected from weighted-average BRM monthly fee, undeliverable customer account funds, loss of postal property, lost badges, money found loose in the mail, unclaimed money from Mail Recovery Center, fines and penalties, jury duty fees, jury or witness fees received while on court leave, personal telephone calls, telephone related taxes and OWCP check payable to the USPS. • Funds collected from weighted-average BRM monthly fees • Undeliverable customer account funds • Loss of Postal Property • Lost Badges • Money found loose in the mail • Other:_____________________________________ • AIC 153 - Damages to Property Other Than Vehicles - Funds collected from damages to government-owned personal property under custody and control of the Postal Service other than motor vehicles, such as street letterbox equipment, NDCBU lock changes, etc. • Clerk _____________________________ • TOTALS • AIC 123___________________________ • AIC 126___________________________ • AIC 153___________________________

15. P O Box Late Fees • Many customers do not renew their PO Boxes on time (by the last day of the month) or during the delinquent period (the 1st through the 10th of the month after the rent is due). If the customer wishes to renew a PO Box that is in a “closed” status (starting on the11th of the month), it must be “reactivated” in WebBATS. • Currently, the instructions are to change the lock on the box and enter the new key/combo number in WebBATS to charge the $15.00 lock change/handling fee that is required to reactivate the PO Box for the same customer. Changing the lock is not required if the customer does not want a new lock. • While many post offices have improved the enforcement of the lock change fee in the past few years, late payment handling fees are not consistently collected from customers whose PO Boxes reach “closed” status and then wish to renew their PO Box service. To ensure consistency and reduce the costs, the lock change/handling fee must be charged to reactivate a PO Box in “closed” status—regardless of whether the lock has actually been changed. • Remember! The best practice is to remind your customers to pay on time. • The following procedure needs to be followed to charge the $15.00 lock change/handling fee and reactivate the PO Box for the same customer: • If …Then…It’s the last day of the paid month. The customer’s PO Box rent is due! The customer has not renewed PO Box by the first day of the next month. Block or plug the PO Box. Continue to put mail in PO Box until the 10th of the month. Customer is classified as “delinquent” in WebBATS. The customer renews between the 1st and the 10th of the delinquent month. No lock change/handling fee is assessed in POS or at an APC. The customer has still not renewed by the 11th of the delinquent month. The PO Box status is automatically changed to “closed” in WebBATS and the customer’s mail is returned to senders. The clerk may decide to hold off on changing the lock during the WebBATS reactivation period. However, if there are no other boxes available, this box can be offered to a new customer without charging the old or new customer. The reactivation period begins on the 11th day of the delinquent month and ends 30 days later. Customers who attempt to use an APC to renew the PO Box receive this message, “I’m sorry. This PO Box has been closed. Please go to the retail window for assistance.” The lock has not been changed and the customer wants to renew the same PO Box between the 11th of the delinquent month and the next 30 days. The customer must pay a $15.00 lock change/handling fee—regardless of whether the lock has actually been changed. In POS: Follow the normal workflow to renew the PO Box. Go to Customer services>more customer service options>Miscellaneous services>.Enter AIC 123, and enter $15.00 in the Miscellaneous Purchase screen.Check to see if the customer needs anything else and collect the customer’s payment. Print the customer’s receipt, and thank the customer for his or her business. In WebBATS: Go to Payments>Post Payments>box number>Lock fee. Select >Save. The lock hasbeen changed and the customer wants to renew the same PO Box between the 11th of the delinquent month and the next 30 days. In POS: Follow the normal workflow in POS to renew the PO Box. The system automatically charges the $15.00 lock change/handling fee and a $2.00 key deposit for 2 keys. (If the PO Box is a combination lock, no key deposit is charged.) Issue a $1.00 refund for each key the customer returns. Check to see if the customer needs anything else and collect the customer’s payment. Print the customer’s receipt, and thank the customer for his or her business. In WebBATS: Manually update the Key Inventory. In IRT: Touch PO Box Fees Key and enter the PO Box renewal amount into either AIC 115 (annual) or AIC 158 (semi-annual). Touch Misc. Fees # Key and enter the $15 lock change/handling fee into AIC 123.In WebBATS: Post the PO Box payment and the lock change/handling fee. In eMOVES:1412 Entry> Enter the appropriate PO Box renewal fee into the correct AIC 115 (annual) or 158 (semi-annual).1412 Entry> Enter the $15 lock change/handling fee into Misc. AIC>123In WebBATS: Post the PO Box payment and the lock change/handling fee. Customer has not renewed by the end of the WebBATS reactivation period, which begins on the 11th day of the delinquent month and ends 30 days later. Replace the lock. The PO Box is now available to the public and the customer’s mail continues to be returned to senders. If the customer requests renewal after the last day of the delinquent month, give them another available PO Box. If the same box is still available, follow the procedures above until POS and WebBATS are updated. • Note: This procedure will be automated when POS and WebBATS are updated.

16. Verification of PVI Reports

17. Issuing PS Form 1908, Financial Adjustment Memorandum

18. Current Rates Assigned Account Number Complete Name and Address Employees Printed Name and Signature Round Date Stamp Handwritten Date

19. PS Form 3083 is required to be submitted daily regardless of activity Printed Name Printed Date Unit Name/Finance #

20. 17-3.1 Handling Over-the-Counter Pickup Over-the-counter postage due mail is short paid mail or BRM for which postage is collected directly from the customer upon delivery. Postage is not withdrawn from a customer trust account. Upon receiving payment for the required postage and piece rates, affix stamp(s), meter strip, or postage validation imprinter (PVI) label to the article for the amount paid. Cancel postage stamp's before giving the article to the customer. Posting of collected funds is based on the type of postage affixed as follows: AIC 090 for postage stamps. AIC 109 for PVI labels. AIC 110 for postage meter strips. Manager Name/”Verified” 17-3.2 Carrier Delivery — City, Rural, and Star Route PRU employees must not use postage stamps, meter strips, or PVI labels on mail for delivery by carrier. BRM and postage due must be consigned to city, rural, and star route carriers on PS Form 3584, Postage Due Log. The same form is used to clear carriers of responsibility. 17-3.5 Verifying PS Form 3584, Postage Due Log The Amount Collected column of the PS Form 3584 must be verified by the unit manager or supervisor at least once a month. The individual line entries of one randomly selected PS Form 3584 from each delivery unit must be verified. The manager or supervisor performing the verification must annotate the PS Form 3584 “verified” and sign it. Total Total Total These 2 columns must match 1st column

21. Additional Resource Credit Card and Debit Card Acceptance Procedures Handbook F-101, Chapter 9-2, Credit and Debit Cards Credit Card Receipt • Credit/Debit Cards • Enter credit card receipts into AIC 762 and debit card receipts into AIC 772 on the PS Form 1412. • Check your credit card receipt(s) against the Batch Close Report for Credit/Debit Cards. A Batch Close Report documents the total credit/debit card sales for the day. DATE 23-9016083266-01 TIME 08/22/09 14:40 U S POSTAL SERVICE #1740350429 209 S 1ST ST RICHBURG ST 12345 TRAN # CLERK ID AUTH 09 5 045827 VISA SALE ACCT. NUMBER EXP 1234567891100000 0408 TOTAL $24.00 X____MARCO POLO_____________________ SIGNATURE WE DELIVER FOR YOU! TOP COPY: U S POSTAL SERVICE BOTTOM COPY: CUSTOMER Note: Credit card receipts must be kept in a separate and secure location. They should be kept secure enough that only those with an official “need to know” have access to them. F 101, 9-2.1 Retention – 2 years

22. Batch Close Report DATE 23901603266 TIME 08/22/09 16:17 U S POSTAL SERVICE #1740350429 209 S 1ST ST RICHBURG ST 12345 BATCH CLOSE REPORT TRN CT TT AMOUNT ACCOUNT NUMBER DATE TIME AUTH VOID INFO ============================ CLERK ID: 5 89 VI SL 9.40 1098765432100101 011807 14:40:24 045827 CREDIT CARD ITEM COUNT 1 CREDIT CARD AMOUNT 24.00 GRAND TOTALS CREDIT CARD ITEM COUNT 1 CREDIT CARD AMOUNT 24.00 NO DEBIT CLOSE – NO TRANSACTIONS 8/22/09 16:17 CREDIT CLOSE SUCCESSFUL 8/22/09 16:17 • Batch Close Report for Credit/Debit Cards • This is the Batch Close Report document. As explained on the last screen, this report is the total credit/debit card sales for the day. • In this example, there was only one credit card sale for the day and no debit card sales. • For this activity, enter the total of the day’s credit card sales ($24.00) into AIC 762 on your PS Form 1412. A Batch Close Report tells you the total credit/debit card sales for the day on each terminal. RAs are responsible for submitting all credit/debit receipts and are liable for missing receipts if transaction is disputed.

23. Consolidate 1412 • After verification of each individual 1412, Consolidate the Unit onto one Consolidated Unit 1412. • Small offices are to have individual 1412’s and each day a Consolidated Unit 1412. Units are not allowed to work out of the main stock.

24. The Consolidated Unit PS Form 1412 Information from all the Individual clerk PS Forms 1412 is combined together to create a Consolidated Unit PS Form 1412.

25. Common errors in POS • Found in the POS ONE Procedures Guide • Money orders – Chapter 27 • 27.8 Recovered Transaction • 27.13 Sequentially Omitted • PVI – Chapter 34 • PVI Mismatch • PVI Verification • 34.2 PVI Warning Messages • 34.5 PVI Add/Remove • Unit Cash Reserve – Chapter 51 • Raising or Lowering

26. Continue to verify support documents with the Unit 1412. • If adjustments are necessary try to accomplish them the same day. Utilize the AIC Helper for assistance. • POS Offices – Watch for the PVI Warnings on the Individual 1412’s but also verify on the Closeout Reports.

27. Closeout is more than preparing the deposit. • It is management’s responsibility to ensure procedures are carried out correctly. • Verify each AIC and Support documentation required. Ensure each support document is completed accurately. • If an error has occurred try to correct/adjust. Ensure PS Form 1908 is completed accurately and completely.

28. Submit all funds - DAILY • F 101, Chapter 5-1, Report daily revenue from all sources each day. • Carrier bar postage dues • Checks received for PO Box Rents • Customer Account Deposits, etc.

29. RA Closeout - POS • Chapter 5-4.1 POS — Retail Associate Closeout • Individual RAs must prepare PS Form 1412 whenever financial transactions are performed at the window service counter. • The POS system provides messaging during the daily closeout to assist the RA with the proper procedures for closing out the day’s business, verifying the PS Form 1412, preparing and submitting the bank deposit, and completing all of the supporting documentation that accompanies it. Immediately after the RA selects <End Clerk’s Day> in POS, a message with daily closeout reminders will appear on the screen for the RA to read. (Refer to the NCR POS ONE Procedures Guide (most recent version) available at the POS ONE Web site for the messaging that appears during the RA closeout workflow. See subchapter 5-4 for the link to the POS ONE Web site.) • At POS units, RAs conduct their daily closeout as follows: • Verify that the PS Form 1412 entries match the amounts from the supporting documentation. Adjust the AIC(s), as necessary. RAs can either print a preliminary PS Form 1412 or use the PS Form 1412 in the POS system to verify entries. • Review the Money Order Report, check for sequentially omitted money orders, and correct as needed. • Compare the check list with the checks, and adjust, if necessary. • Count funds to be deposited and complete deposit process. If during the closeout process, the RA remits a bank deposit amount different from the POS system expected amount, the RA posts the discrepancy as follows: • Employee Cash — Overage. This will appear in AIC 068. • Employee Cash — Shortage. This will appear in AIC 764. • Note: This will create an entry in the “Unresolved Employee Items” log. Once the nature of the error is researched and resolved, the RA must clear the unresolved employee item. • After selecting <Verified funds & Continue to Sign Out> inthe POS system, the RA proceeds with closeout and certifies the PS Form 1412 is correct by selecting <Reviewed and completed items>. The RA prints the final PS Form 1412. • Submit the following to the closeout employee: • Individual manual receipts and supporting documents organized by type. Any applicable system-generated reports can be filed with the RA’s copy of PS Form 1412. • The final PS Form 1412. • Funds to be deposited. The RA must remain with funds until a designated employee verifies the deposit and initials the AIC 751 and/or AIC 752 entry on the RA’s copy of PS Form 1412. • Spoiled and voided money orders (all parts) for destruction. • PS Form(s) 8105-A and 8105–B. • Keep the RA’s copy of PS Form 1412 until the next stamp and/or cash credit count or resolution of differences, whichever is longer. • -4.1 -

30. 5-3.1 RA Closeout - IRT • Individual RAs must prepare PS Form 1412 whenever they perform financial transactions at the window. • At IRT units, RAs conduct the daily closeout as follows: • Verify that the PS Form 1412 entries match the amounts from the supporting documentation. Adjust the AICs as necessary. RAs can either print a preliminary PS Form 1412 or use the PS Form 1412 in the IRT system to verify entries. • Print the clerk report from the credit and debit card terminals and verify that the amounts match AICs 762 and 772 and that all receipts are accounted for. Adjust the AIC(s) as necessary. • Verify money orders by comparing voucher amounts, serial numbers, and dates to the IRT money order list and make corrections as needed. • Compare the check list with the checks, and adjust, if necessary. • Count funds to be deposited and verify that total funds equal the sum of AIC 751 and AIC 752. • Submit the following to the closeout employee: • Individual manual receipts and supporting documents organized by type. Any applicable system-generated reports can be filed with the RA’s copy of PS Form 1412. • The signed final PS Form 1412. • Funds to be deposited. The RA must remain with the funds until the designated employee verifies the deposit and initials the AIC 751 and/or AIC 752 entry on the RA’s copy of PS Form 1412. • Issued money order vouchers. • Spoiled and voided money orders (all parts) for destruction. • PS Form(s) 8105-A and 8105–B. • Keep the RA’s copy of PS Form 1412 until the next stamp count or after resolution of differences, whichever is longer.

31. 5-2.1 RA Closeout - eMoves • Individual RAs must prepare PS Form 1412 whenever financial transactions are performed at the PRU. RAs must be identified by name or clerk number on all PS Form 1412 supporting documents (e.g., tapes, lists, and receipts). • At the beginning of the day in which transactions will occur, RAs prepare a PS Form 1412 in ink and in duplicate, entering the date, name, and opening accountability balance. If an error is made, draw one line through the entry. Write the correction above and initial. • At electronic Money Order Voucher Entry System (eMOVES) units, RAs conduct their daily closeout as follows: • Complete PS Form 3602-PO, Postage Collected Through Post Office Meter, if the unit has a postage meter. • Print the clerk report from the credit and debit card terminal. • Run tape of money orders sold. • Verify that the sequential order of money orders is continued from the previous day and that the amount, fees, issue ID, and date are correct. • Run tape of checks accepted. • Organize all supporting documentation by type and calculate the manual PS Form 1412 entries by AIC. • Verify that all numbered receipts are sequential. • Verify the opening balance (AIC 840) matches the previous day’s closing balance (AIC 853). • Post the AIC totals from the supporting documentation to PS Form 1412. • Count the funds to be deposited and enter amounts to AIC 751 and/or AIC 752. • Calculate the postage sales and make the appropriate AIC entries to balance PS Form 1412. Post packaging product sales to AIC 093, postal related merchandise sales to AIC 098, and official licensed retail product sales to AIC 231. • Complete the Stamp Accountability section of PS Form 1412 as follows: • Enter AIC 841 for stock received from the stamp distribution office (SDO), stamp services center (SSC), or a PRU. • Enter AIC 848 for stock returned to the SDO, SSC, or a PRU. • Enter AIC 852, which includes the total of AICs 007–014, 084–089, 090–092, 094–097. • Sign and date the PS Form 1412. • Submit the following to the closeout employee: • PS Form 1412 with supporting documents. • Funds to be deposited. The RA must remain with the funds until the designated employee verifies the deposit and initials the AIC 751 and/or AIC 752 entry on the RA’s copy of PS Form 1412. • Issued money order vouchers. • Spoiled and voided money orders (all parts) for destruction. • PS Form(s) 8105-A, Funds Transaction Report (FTR), and 8105–B, Suspicious Transaction Report (STR). • Initiate a new PS Form 1412 for the next business day, and carry forward today’s stamp closing balance in AIC 853 to the next day’s stamp opening balance (AIC 840). • Keep the RA’s copy of PS Form 1412 until the next stamp credit count or after resolution of differences, whichever is longer.

32. PS Form 3533 Completion-Clerk Clerk Signature Clerk Signature Witness if available Manager’s signature/Reviewed

33. PS Form 3533 Completion - Customer Customer Signature Signature ofManager/Supervisor when destroyed, Date and Witness Customer Signature and/or Money Order Number Accepting Clerk Signature Witness if Available

34. 5-4.2 POS-Unit Closeout • The POS system provides messaging during the close unit workflow to assist the closeout employee with the proper procedures for closing the unit, verifying the PS Form 1412, preparing and submitting the bank deposit, and completing all of the supporting documentation that accompanies it. (Refer to the NCR POS ONE Procedures Guide (most recent version) available at the POS ONE Web site for the messaging that appears during the close unit workflow. See subchapter 5-4 for the link to the POS ONE Web site.) • At POS units, conduct the unit closeout as follows: • Verify each RA’s funds to be deposited with amount reported in AIC 751 and/or AIC 752 on the RA’s final PS Form 1412. • Compare the check lists to checks. • Keep the funds in security containers at all times. • Verify that the RA’s final PS Form 1412 entries match the amounts from the supporting documentation. • Print and review the unit’s preliminary PS Form 1412 and any additional reports that support the day’s business. • Consolidate all the RAs’ funds and prepare the unit’s bank deposit following procedures outlined in part 9-1.2. • Verify that the bank deposit matches the amount reported in AIC 751 and/or AIC 752 on the unit’s PS Form 1412. • Review the Money Order Report: • Verify the money order serial numbers. • Verify spoiled and voided money orders (all parts), and submit them to the unit manager for destruction. • Report any missing money orders to the USPIS immediately. • Identify any sequentially missing money orders at closeout. Note: If an RA is unable to account for the dollar amount of a missing money order, complete a PS Form 6401 and mail it to the SIC to retrieve a copy of the cashed item. Mail the issue information regarding missing money orders, identified within the same month as the issue date, to the following address: • GENERAL ACCOUNTING BRANCH — MISSING VOUCHERSACCOUNTING SERVICESPO BOX 82449ST LOUIS MO 63182-2449 • If applicable, log PS Form(s) 8105-A and mail PS Form(s) 8105-A and PS Form(s) 8105-B to the address at the bottom of the forms (see part 10-1.2). Ensure PS Forms 8105-A and 8105-B are verified for the correct money order numbers issued. • Verify that the unit PS Form 1412 entries match the amounts from the supporting documentation. Examples: • Compare PS Form 3083 with AICs 053, 070, 074, 453, 470, and 474. • Compare PS Form 3584 and/or PS Form 3582-P with AIC 114. • Compare PS Form 3533 as follows: • For PS Forms 3533 submitted to the SIC, with AIC 280. • For PS Forms 3533 paid locally, with the appropriate refund AIC. • Compare PS Forms 17 with AIC 841 and AIC 848. • Review the PVI Activity Report for mismatch warnings and make corrections if necessary. (See part 6-3.4.) • Verify that all credit and debit card receipts as listed on the Credit and Debit Card Unit reports are submitted. RAs are liable for missing receipts. • For financial differences (overages or shortages), create financial adjustment memorandums assigning them to the appropriate employees. Select AIC 247 for overages and AIC 647 for shortages, and use the corresponding reason code to identify the transaction type (see part 8-6.2 for a list of reason codes). (Refer to the NCR POS ONE Procedures Guide (most recent version), available at the POS ONE Web site, for details on creating and clearing financial differences. See subchapter 5-4 for the link to the POS ONE Web site.) • Provide the unit manager with the Financial Differences History — Unit Report from POS. (This report will print at closeout only when created or cleared financial adjustment transactions have been recorded for that business day.) Notify the unit manager when messages appear at closeout indicating necessary action for financial differences. • Provide the unit manager with the Unresolved Employee Items Report from POS. • Print the PO Box/Caller Service Unit Report and give a copy to the Post Office Box clerk for processing. • Print the Permit Account Activity Report, and give it to the business mail entry unit or business reply mail clerk, if applicable. • Review the POS Close Unit — Reminders message for instructions and additional information for closeout reports. • To proceed with closeout and certify that the PS Form 1412 is correct and all documentation has been verified, select <Reviewed & completed items> in the POS system. Print the final PS Form 1412. • File PS Forms 1412 (unit and RA) and supporting documentation. File credit and debit card receipts in a separate and secure location.

35. 5-3.2 IRT – Unit Closeout • At IRT units, perform the unit closeout as follows: • Verify each RA’s funds to be deposited with amount reported in AIC 751 and/or AIC 752 on the RA’s final PS Form 1412. • Compare the check lists to checks. • Keep the funds in security containers at all times. • Verify that the RA’s final PS Form 1412 entries match the amounts from the supporting documentation. • Consolidate the clerk disks. • Print the following unit reports: • UNIT 1412 (Select #1). • DOM MONEY ORDERS (Select #2). • INTL MONEY ORDERS (Select #3). • CLERK BALANCES (Select #4). • 3544’s (Select #6). • ADJUSTMENT (Select #9). • RET RCPT (ELECTRONIC) (Select #11). • CUSTOMS (Select #12). • EXPRESS MAIL (Select #13). • PVI ACTIVITY (Select #14). • DEL/SIG CONFIRM (Select #16). • GXG (Select #18). • Consolidate all the RAs’ funds and prepare the unit’s bank deposit following the procedures outlined in part 9-1.2. • Verify that the bank deposit matches the amount reported in AIC 751 and/or 752 on the unit’s PS Form 1412. • Run the Batch Close Report from the credit and debit card terminals and verify that the totals match AICs 762 and 772. • Verify that all credit and debit card receipts as listed on the Credit and Debit Card Unit report are submitted. RAs are liable for missing receipts. • Review the Money Order Report: • Verify the money order serial numbers. • Verify the amounts, issue ID, and date (must be issue date, regardless of office hours). • Report any missing money orders to the USPIS immediately. • Verify spoiled and voided money orders (all parts), and submit them to unit manager for destruction. • Identify any missing vouchers at closeout. Note: If an RA is unable to account for the dollar amount of a missing voucher, complete PS Form 6401 and mail it to the SIC to retrieve a copy of the cashed item. Mail the issue information regarding missing vouchers, identified within the same month as the issue date, to the following address: • GENERAL ACCOUNTING BRANCH — MISSING VOUCHERSACCOUNTING SERVICESPO BOX 82449ST LOUIS MO 63182-2449 • If applicable, log PS Form(s) 8105-A and mail PS Form(s) 8105-A and PS Form(s) 8105-B to the address at the bottom of the forms (see part 10-1.2). Ensure PS Forms 8105-A and 8105-B are verified for the correct money order numbers issued. • Verify that the unit PS Form 1412 entries match the amounts from the supporting documentation. Examples: • Compare PS Form 3083 with AICs 053, 070, 074, 453, 470, and 474. • Compare PS Form 3584 and/or PS Form 3582-P with AIC 114. • Compare PS Form 3533 as follows: • For PS Forms 3533 submitted to the SIC, AIC 280. • For PS Forms 3533 paid locally, the appropriate refund AIC. • Compare PS Forms 17 with AICs 841 and 848. • Review the postage validation imprinter (PVI) Activity Report for mismatch warnings and make corrections if necessary. (See part 6-3.4.) • For financial differences, make adjustments and issue PS Form 1908. Increase or decrease the incorrect AIC and offset to AIC 247 or AIC 647. (See part 8-6.1 for supporting documentation for AIC 247/647 activity.) • Log employee items (see Appendix C, Exhibits 7–12). • Provide PS Form 3544 or the PO Box/Caller Service Unit Report to the Post Office Box clerk for processing. • Verify that the Clerk Balance Report matches the unit AIC 853. Research and resolve any discrepancies. • Sign the unit’s PS Form 1412. • Copy the main supervisor disk to the back-up supervisor disk. • Copy the supervisor disk to the Retail Consolidation Unit (RCU) transmit disk. Set for transmission. • File PS Forms 1412 (unit and RA) and supporting documentation. File credit and debit card receipts in a separate and secure location. • Secure all IRT disks when they are not in use.

36. 5-2.2-eMoves – Unit Closeout • At eMOVES units, perform the unit closeout as follows: • Verify each RA’s funds to be deposited with amount reported in AIC 751 and/or AIC 752 on the RA’s PS Form 1412. • Compare the check lists to checks. • Keep the funds in security containers at all times. • Verify that the RA’s PS Form 1412 entries match the amounts from the supporting documentation. • Consolidate all the RAs’ funds, and post the deposit amount to the unit’s PS Form 1412 in AIC 751 and/or AIC 752. • Prepare the unit’s bank deposit following procedures outlined in part 9-1.2. • Run the Batch Close Report from the credit and debit card terminal(s). Verify that all credit and debit card receipts are accounted for. The amounts from the Batch Close Reports, the receipts, and AIC 762 and AIC 772 entries must all match. RAs are liable for missing receipts. • Review the money order tape(s): • Verify that the RAs are identified on the adding machine tapes or listings. • Verify the money order serial numbers. • Verify that beginning and ending numbers are correct and sold in sequence. • Verify the amounts, issue ID, and date (must be issue date regardless of office hours). • Report any missing money orders to the U.S. Postal Inspection Service (USPIS) immediately. • Verify spoiled and voided money orders (all parts), and submit them to the unit manager for destruction. • Identify any missing vouchers at closeout. Note: If an RA is unable to account for the dollar amount of a missing voucher, complete PS Form 6401, Money Order Inquiry, and mail it to the Scanning and Imaging Center (SIC) to retrieve a copy of the cashed item. Mail the issue information regarding missing vouchers, identified within the same month as the issue date, to the following address: • GENERAL ACCOUNTING BRANCH — MISSING VOUCHERSACCOUNTING SERVICESPO BOX 82449ST LOUIS MO 63182-2449 • If applicable, log PS Form(s) 8105-A and mail PS Form(s) 8105-A and PS Form(s) 8105-B to the address at the bottom of the forms (see part 10-1.2). Ensure PS Forms 8105-A and 8105-B are verified for the correct money order numbers issued. • Organize PS Forms 3544, USPS Receipt for Money or Services, and PS Forms 3602-PO and verify accountable receipt numbers are in sequential order. • Prepare a consolidated unit PS Form 1412, and organize all supporting documentation. • Verify that the unit PS Form 1412 entries match the amounts from the supporting documentation. Examples: • Compare PS Form 3083, Trust Accounts Receipts and Withdrawals, with AICs 053, 070, 074, 453, 470, and 474. • Compare PS Form 3584, Postage Due Log, and/or PS Form 3582-P, BRM/Postage Due Invoice, with AIC 114. • Compare PS Form 3533, Application for Refund of Fees, Products and Withdrawal of Customer Accounts, with the following: • For PS Forms 3533 submitted to the SIC, AIC 280. • For PS Forms 3533 paid locally, the appropriate refund AIC. • Compare PS Form 3602-PO with AIC 110. • Compare PS Form 17, Stamp Requisition/Stamp Return, with AICs 841 and 848. (For AIC 848, attach the system-generated shipment number receipt or report to the manual PS Form 17.) • For financial differences, make adjustments and issue PS Form 1908, Financial Adjustment Memorandum. Increase or decrease the incorrect AIC and offset to AIC 247 or AIC 647. (See part 8-6.1 for supporting documentation for AIC 247/647 activity.) • Provide the unit manager with the Unresolved Employee Item Report from eMOVES. • Provide PS Form 3544 for Post Office Box and Caller Service to the Post Office Box clerk for processing. • Complete the Stamp Accountability section on the unit PS Form 1412. (AICs 841 and 848 are posted for stamp stock shipped to the SDO, the SSC, or another location. May also be posted to correct a prior overstated AIC 841 entry.) • Sign and date the unit PS Form 1412. • Enter the information from the unit PS Form 1412 into eMOVES and upload as directed. • Print documents: • eMOVES PS Form 1412. • Money order and missing money order reports. • Any other supporting documentation as needed. • Complete the accountability recap sheet. The recap sheet must include the unit reserve and all other stamp and cash accountabilities. • Verify that the total of the recap sheet matches AIC 753 and/or AIC 853 on the unit’s PS Form 1412. • File PS Forms 1412 (unit and RA) and supporting documents. • File credit and debit card receipts in a separate and secure location. • Enter Express Mail label data into the Product Tracking System (PTS) Express Mail Label Entry application.

37. Automated Postal Center Kiosks 5-5.3 Responsibilities • 5-5.3.1 Servicing Employee • Employees designated as APC servicing employees (SEs) are responsible for keeping the APC kiosk serviced in order to keep them working properly and serving customers. These responsibilities include the following: • Responds to kiosk alerts within 2 hours (responds to alerts present when shift begins within 1 hour of shift start). Alerts are sent to wireless pagers, which are issued to each SE. • Replenishes consumables and stamp booklets in response to kiosk alerts. • Manages stamp inventory at the kiosk. • Orders consumables and stamp stock as needed. (See part 11-3.4 for stamp stock limits.) • 5-5.3.2 Site Supervisor • The site supervisor is responsible for the operation and servicing of the APC kiosk as follows: • Ensures accountability of all stamp stock (i.e., proper security and financial exams). • Oversees credit exams, which are required monthly for the first 3 months after installation of the machine and once every 3 months thereafter. • Monitors expenses issued by Accounting Services via AIC 247/647. To view expenses, use the FPR Net Financial Differences (AIC 247/647) — Line Detail report in the ADM (Accounting>Shared Reports>SAFR> Store Expense Reports.) • Schedules appropriate SE coverage for the servicing of the kiosk. • Provides back-up service support for the APC in the event the designated service employee is not available. • Provides kiosk opening procedure support as needed. • Updates changes to the site contact information.

38. Contract Postal Units 5-7.1Daily Financial Closeout • CPUs must prepare PS Form 1412 to report daily financial transactions performed and must submit PS Form 1412 to the host Post Office on a daily basis with the required supporting documents (e.g., tapes, lists, and receipts). PS Form 1412 must be prepared in ink, duplicate with date, name and opening accountability balance. If an error is made, draw one line through the entry and write the correction above and initial. • CPUs perform daily closeout as follows: • Complete PS Form 3602-PO, Postage Collected Through Post Office Meter, (if applicable) and enter the calculated amount into AIC 110 on PS Form 1412. • Run a calculator tape of money orders sold and enter the amount of money orders into AIC 100 and the amount of money order fees into AIC 101 on PS Form 1412. • Organize all supporting documents by type and calculate the amount by products and service and enter into the appropriate AICs (e.g., Post Office Box fees, lobby services revenue, etc.) on PS Form 1412. • Post sales of retail products (if applicable) into the appropriate AICs on PS Form 1412. • Run a calculator tape of all checks accepted. • Count the funds (cash, checks and money orders) to be deposited and enter the total amount into AIC 752 on PS Form 1412. • Prepare and dispatch bank deposit following procedures in part 9-1.2. • Calculate the amount of postage sales and enter into the appropriate AICs (e.g., AIC 007, AIC 084, AIC 090, etc.) on PS Form 1412. • Verify that AIC 840 matches the previous day’s AIC 853 on PS Form 1412. • Complete the Stamp Accountability section of PS Form 1412 as follows: • Enter in AIC 841 the total amount listed on PS Form 17, Stamp Requisition/Stamp Return, for stock received. • Enter in AIC 848 the total amount listed on PS Form 17 for stock returned. • Enter in AIC 852 the total amount of postage sales. • Calculate the amount of AIC 853. • Ensure PS Form 1412 is in balance. Totals of AIC 400 and AIC 800 must match. • Sign, date, and submit the PS Form 1412 along with supporting documents (copy of bank deposit ticket, money order vouchers, PS Form 3602-PO, PS Forms 3544, and other receipts to support 1412 entries) to the assigned host Post Office.

39. Host Post Office Daily Financial Reporting Responsibilites5-7.2 • The daily responsibilities of the host Post Office postmaster or designated employee are as follows: • Coordinate with the CPU to ensure receipt of a daily PS Form 1412 with supporting documentation. CPUs cannot combine daily reporting amounts from different days on one PS Form 1412. • Review the money order tape as follows: • Verify money order serial numbers. • Verify that beginning and ending numbers are correct and sold in sequence. • Verify amounts, issue ID, and date. • Report missing money orders to the USPIS immediately. • Verify spoiled and voided money orders (all parts), and submit them to unit manager for destruction. • Identify missing vouchers. Note: If a postmaster is unable to account for the dollar amount of a missing voucher, complete a PS Form 6401 and mail it to the SIC to retrieve a copy of the cashed item. Mail the issue information regarding missing vouchers, identified within the same month as the issue date, to the following address: • GENERAL ACCOUNTING BRANCH — MISSING VOUCHERSACCOUNTING SERVICESPO BOX 82449ST LOUIS MO 63182-2449 • Ensure that employees at the CPU complete the Bank Secrecy Act training, have current forms on hand, and complete and mail forms as required. • Verify the following on PS Form 1412: • The opening balance of AIC 840 with the previous day’s AIC 853 ending balance. • AIC 110 with PS Form 3602-PO if CPU has a postage meter. • AIC entries match the amounts from the supporting documentation. Supporting documentation must agree with the totals entered in individual AICs. (See part 5-7.3 for resolving discrepancies and part 5-7.4 for correcting differences.) Note: CPUs must report unused meter labels in AIC 553 on PS Form 1412 and submit PS Form 3533 with attached labels as supporting documentation. • Enter the CPU’s PS Form 1412 via eMOVES. • Maintain a file with documentation for all AIC 247/647 expenses (financial differences) issued to the CPU. (See part 8-6.1 for supporting documentation for AIC 247/647 activity.) • Examine the CPU’s accountability annually for compliance (see subchapter 13-7). • Ensure that the CPU’s total accountability does not exceed its bonded amount. • For discrepancies of $100 or more, compete PS Form 571, Discrepancies of $100 or More in Financial Responsibility, and submit to the appropriate Office of Inspector General (OIG). See Appendix B-2 for the list of OIG field offices.

40. Preparing the Deposit • Deposit ticket needs to be legible to reduce banking discrepancies • Match deposit ticket to PS Form 1412, make adjustments if necessary • Follow register procedures per the DM-901 • Sign the deposit slip-no initials • If no witness – Leave the line blank (Bank Deposit Preparation Quick Reference, December 2009.) • Secure hand to hand transfer

41. 9-1.2 Banking Procedures for Postal Retail Units • Postal retail units (PRUs) consolidate funds generated from daily transactions into one bank deposit (or two deposits if you must deposit cash separately from checks). • PRUs must not make bank deposits for less than $100. Exception: Check items (checks, money orders, traveler’s checks, etc.) should be deposited within 5 business days even if the total deposit is less than $100. When a PRU does not prepare a bank deposit that is less than $100, the PRU records the funds in AIC 753 on the unit’s PS Form 1412, Daily Financial Report. The amount recorded in AIC 753 must appear in AIC 353 on the next business day and the funds made available for deposit. • When funds exceed normal operating needs during the day, retail associates (RAs) must make advance deposits in addition to regular deposits. • If excess funds are generated throughout the day, PRUs may prepare a consolidated advance deposit. In the event that the financial institution requires separate deposits for cash and checks, no more than four (4) bank deposits may be prepared on a business day. • Each day the deposit is retained until the limits have been met, Register to the safe.

42. Preparing the Unit Bank Deposit Key components of the deposit ticket. Use signatures, NO INITIALS If no witness, Leave the line blank. Match deposit ticket to PS Form 1412, Ensure legibility, make adjustments The BANK always gives immediate credit for the GRAND TOTAL. Once actual funds are verified, a credit or debit is issued for the difference. 10-Digit Unit ID = Finance Number and Unit ID

43. Let’s talk Financial Differences • Postal retail units (PRUs) must use the following two AICs to report financial differences and adjustments [e.g., banking, money orders, stock ledger, and PS Form 1412, Daily Financial Report, transactions]: • AIC 247 for overages. • AIC 647 for shortages. • Adjustments may also be credited or debited by Accounting Services for financial adjustments related to a unit’s banking, transmitted PS Form 1412 transactions, money orders, and stock ledger discrepancies. Accounting Services issues expenses to PRUs as a result of reconciling the following financial activities: • Sales audit expenses. • Reconciliation exceptions (e.g., banking, credit and debit cards, change funds, Sure Money). • Stamp stock shipment exceptions (stock ledger). • Money order reconciliation exceptions. • A negative amount (appears in parentheses) in General Ledger Account (GLA) 56203 on the Financial Performance Report (FPR), Line 44 Miscellaneous Expenses, is a credit or reduction in expense. A positive amount is a debit or increase in expense. See subchapter 8-6 for procedures for creating and clearing (offsetting) AIC 247 and AIC 647 expenses.

44. Creating or Offsetting AIC 247 andAIC 647 Expenses • 8-6.1 Postal Retail Unit Procedures • PRUs create or offset previously issued AIC 247 and AIC 647 expenses as follows: • Research discrepancies (see section 8-6.1.1). • Enter adjustments in AIC 247 or AIC 647 on PS Form 1412 (see section 8-6.1.2). AIC 247 credits and AIC 647 debits GLA 56203 which appears in Line 44 of the FPR. • Maintain a file with detailed records (documentation) for all AIC 247/647 expenses (financial differences) issued to the PRU. Monitor expenses and ensure timely clearance. The following reports/log (or any combination) can be used as a detailed record and are approved supporting documentation for AIC 247/647 activity. • Financial Differences — AIC 247/647 Log POS units use the Financial Differences History — Unit Report from POS. • FPR Net Financial Differences (AIC 247/647) — Line Detail report in the ADM. For expenses not listed on the AIC 247/647 log, annotate the report with status, action taken, date of offset, etc. • Narrowcast Report. For expenses not listed on the AIC 247/647 log, annotate the report with status, action taken, date of offset, etc. • For expenses that are not cleared (offset), e.g., counterfeit bills, the PRU employee must annotate the AIC 247/647 detailed expense record with the reason. • Note: POS units see section 8-6.1.3 for creating and offsetting financial differences (AIC 247/647).

45. 8-6.1.1 – Researching Discrepancies • The PRU manager is responsible for identifying the cause of discrepancies whether it resulted from an RA’s transactions or a unit-level adjustment. • If the discrepancy remains unresolved, then the PRU manager may request that the AHD research the issue as follows: • The field unit manager calls or e-mails the AHD. • Send an e-mail to Help Desk, Accounting — St. Louis, MO. • Call 866-9SHARED (866-974-2733). • The PRU manager provides the following information in the e-mail or to the Help Desk personnel: • District name, office name, UFN. • Unit contact name and phone number. • Type of expense (e.g., Banking, Stock Ledger, Sales Audit). • Date of expense. • Original business date (date of the transmitted PS Form 1412) or transaction date from the bank if inquiring about a banking reconciliation error. • Amount of expense. • The AHD logs the request in their Remedy system and provides a ticket number as reference for any further inquiries. • The AHD either provides a solution or refers the issue to a subject matter expert (SME). • The SME contacts the PRU to provide further guidance.

46. Reports • Narrowcaster Reports • Help Desk -Trust and Suspense Activity • The need to be on the ~ Account • How to get on the ~ Account

47. Management's Responsibility • Employees serving in management positions have an obligation to control/minimize expense items within their jurisdiction. The following six steps should be followed for any adjustment and/or reconciliation that is received or initiated by a PRU: • 1. Determine the cause of the error and employee responsible for the error. • 2. Post expenses to AIC 247/647 tracking log. • 3. Issue PS Form 1908, Financial Adjustment Memorandum, to the employee responsible for the error. • 4. Ensure the expenses are offset in a timely manner. • 5. Post offsetting entries to AIC 247/647 Log. • 6. Take the appropriate action to prevent future errors. • It is important to remember that PRUs may create/offset an expense for a discrepancy discovered locally as well as offset expenses issued by Accounting Services.

48. Remember: • Expenses must be logged daily on the Financial Differences – AIC 247/647 Log. • Expenses must be verified/validated on the ADM report - The FPR Net Financial Differences (AIC 247/647) – Line Detail. EDW>Accounting>Shared Reports>SAFR>Store Expense Reports>FPR Net Financial Differences AIC 247/647 • Expenses must be researched and resolved in a timely manner.

49. Narrowcast Reports • Microstrategy uses a Narrowcast server to distribute reports to users instead of the user having to run/retrieve them. The Narrowcast server automatically distributes these reports via Email when a specific condition is met and/or a scheduled event (time) occurs. • Some of the exception reports that are generated are: • Daily Reconciliation Exceptions – this report represents differences that exceed $50.00 that are a result of banking or credit/debit card reconciliations. • In-Transit Stamp Stock – provides detail information and instructions for units with stamp stock remaining in-transit for 10 days. • Money Order Expense – detailed report of all money orders expensed. • Monthly Reconciliation Exceptions – detailed report of all of the financial differences for bank deposits, credit/debit cards, and Sure Money that Accounting Services expensed an office for the previous month.

50. Monthly Reconciliation Exceptions Report for Unit