NATIONAL PCC DAY SEPT 16, 2009 THE EFFECT OF POSTAL ACCOUNTABILITY REVENUE PROTECTION BMEU YOU THE CUSTOMER ®

® Postal Accountability Act of 2006 Vision 2013 Sarbanes – Oxley Act

® Vision 2013 What Matters Most to Customers Leverage Our Strengths Embrace Change

® Big Changes For Business Mailers Workshare Workhours Programs

® Move Update Commitment to Reduce Undeliverable Mail Not a New Program Just New Elements Not Only About Your Mailing List But Also About Your Mailing Processes

® Move Update Primary Move Update Methods: 1. Ancillary Service Endorsement 2. OneCode ACS®/ACS™ 3. NCOALink® 4. FASTforward® Alternative Move Update Methods: 1. Legal Restraint Percent Accurate Note: Alternative Move Update methods apply to First-Class Mail only.

® Initial Contact With Your BMEU Technician MERLIN Communication Between the Processing Plant, Stations, BMEU and Inspection Services.

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® Initial Contact With Your BMEU Technician MERLIN ( Mail Evaluation Readability Look Up Instrument ) Communication Between the Processing Plant, Stations, BMEU and Inspection Services.

® Initial Contact With Your BMEU Technician MERLIN ( Mail Evaluation Readability Look Up Instrument ) Communication Between the Processing Plant, Stations, BMEU and Inspection Services.

® What Are Additional Requirements of Move Update. Update your records Retain documentation for 2 years

® If You Are Required to Undergo a Review With Inspection Services Have your records in order Cooperate

® What is the relationship between the Inspection Services and the BMEU

® 6 Areas of BMEU Risk to USPS Revenue 1. By-Pass Mailings 2. Presort Fraud 3. Plant Verified Drop Shipments 4. Eligibility Fraud 5.Bribery/ Collusion 6. Fraud vs. USPS customers by 3 rd party mailers.

® By- Pass Mail Permit Imprint mailings that enter USPS operations without detection and verification Mailing statement never presented or entered into Postal One Inadvertent or deliberate attempts by mailers to avoid payment USPS error and non-compliance in verification and payment

® Presort Fraud Deliberate misstatements of volume, sortation and payment Permit imprint misrepresented as metered to avoid payment Affixed(pre metered) rate misrepresented to increase VAR or reduce amount owed Required finest depth of sort not performed- mail jackpotted to mixed ADC or upstream destination

® Plant Verified Drop Shipments Mail is outside of USPS control after verification is completed at origin Round dated PS form 8125 signed by USPS clerk given to mailer as proof of payment Cursory review of Form 8125 (# of sacks or trays) by USPS personnel at destination not performed or inadequate Counterfeit/ false form 8125 produced by mailer No origin/ destination reconciliation of Form 8125

® Eligibility Fraud Misrepresentation of eligibility to mail at heavily discounted periodicals or non- profit rates, or at presort rates Move Update misrepresentation Periodical and Non- Profit eligibility frauds.

® Bribery/ Collusion/ Employee Error Bribery of USPS verification personnel located at Postal BMEU’s or at Mailer plants and AO’s Employee error- sometimes lacking knowledge or understaffed resulting in unrealized revenue.

® Fraud vs. USPS Customers Using 3 rd Party Mailers Third party mailers invoice customers for mailings never submitted to USPS Customer request refund for non delivery of seeded pieces or no response from mailing