1. UNIT RESERVE Pacific Area Finance Training February 2008

2. 2 Objectives  To establish the procedures for assuming control of and responsibility for the unit reserve.  To establish and clarify the procedures for ordering, issuing, returning, and receiving stock.

3. 3 Importance of the Unit Reserve The Unit Reserve stock is comprised of:  Saleable stock  Redeemed stock  Bird Stamps  International Reply Coupons (IRC)  Money Orders  Bait Money Orders It must be correctly maintained otherwise:  Unit is less likely to generate revenue  Stock Custodian is accountable for financial losses

4. 4 Accepting Unit Reserve Responsibility Complete a work order request to maintenance (PS Form 4805, Maintenance Work Order Request) to change safe combinations and locks.  Safe combination and all locks should be changed on the day you agree on the count and sign the receipt.  Complete separate PS Form 3977 envelope to protect each safe/vault combination and duplicate keys.  Responsible employee and witness seal the envelope, sign and round date over seams of the envelope.  PS Forms 3977 must be sent registered mail to the Postmaster/designee.  (F-1 Section 372.21).

5. 5 Accepting Unit Reserve Responsibility (Cont.) Counting the Stock Two independent counts must be performed concurrently.  Use PS Form 3294-P, Cash and Stamp Stock Count and Summary.  Count stamps, verify money orders and bait money orders; record all on PS Form 3294-P.  Both counts are compared, and discrepancies are resolved.  Outgoing and Incoming stock custodians sign on page four of PS Form 3294-P to agree on the count.

6. 6 Accepting Unit Reserve Responsibility (Cont.) Counting the Stock  Employee stock overage – AIC 057  Employee stock shortage – AIC 767  For shortage, issue a letter of debt determination (LDD) for non-bargaining or a letter of demand (LOD) for bargaining employees.  When debt is paid, clear in AIC 367.

7. 7 PS Form 3294-P 1 2 34

8. 8 Accepting Unit Reserve Responsibility (Cont.) Discrepancy of $100 or more Submit a PS Form 571, Discrepancy of $100 or more in Financial Responsibility, to:  OIG (your local division)  District Finance Manager  Host Postmaster/MPOO  Accountability File

9. 9 PS Form 571

10. 10 Accepting Unit Reserve Responsibility (Cont.)  Sign the PS Form 3369-P, Consigned Credit Receipt.  Post audit results on PS Form 3368-P. Recommendation: After adjustments are posted, print and retain a copy of PS Form 3958, Main Unit Reserve Stamp Stock Transaction Record, and Inventory by Category.

11. 11 Unit Cash Reserve  Fixed amount of rolled coins and smaller denomination currency established for the unit to use as a source of change.  The Postmaster/Unit Manager establishes or changes the amount by sending a written request with justification to the District Finance Manager.  Assigned on Form 3369-P to a single individual (Stock Custodian) who is directly accountable.

12. 12 Unit Cash Reserve (Cont.)  All or part of the unit cash reserve may be reassigned using PS Form 3369-P.  The reassigned funds must not be co- mingled with any other accountable cash credits assigned to the employee(s).

13. 13 Unit Cash Reserve (Cont.) To determine the unit cash reserve amount  Calculate the previous quarter’s postage sales using AIC 852, Total Sales from the unit’s 1412.  Divide by the number of business days to get an average daily sales amount.  If a unit has reduced hours on Saturday, count those days as ½ days.  Multiply the average daily sales amount by 5%.

14. 14 Change Funds Request to Bank How to request a PIN Send your request via email to the Manager of Financial Control and Support with the following information:  Office name and address  Finance number and unit ID code  Total number of PINs requested  Contact person  Funds required up to authorized cash reserve amount PIN and information packet mailed to office address. Upon receipt of PIN, you can order change funds. Recommendations: Change funds should not be ordered during the last week of the month. Maintain a log of change funds ordered/received.

15. 15 Receipt of Change Funds  Bank will issue requested change funds with an invoice.  Verify the amount and sign the invoice.  Replace the authorized amount in the vault with the equivalent amount of coins and small denomination bills received.  Enter the amount of the verified invoice in AIC 293, Cash Remitted Change Funds.  Bank will debit the USPS bank account for the amount of change funds.  Amount in AIC 293 will be exported for auto banking reconciliation.  Any discrepancy amounts will be expensed to the Post Office Unit ID.

16. 16 Ordering Stamp Stock The ordering cycle is set by the Stamp Distribution Office (SDO) to insure an organized and timely processing of orders. Placing Orders:  Regular orders – once a month.  Emergency orders – local district policy. Stamp Stock Level:  Ensure total office accountability does not exceed three months of stamp stock sales.

17. 17 Ordering Stamp Stock  Stock Custodian (SC) reviews current Inventory by Category.  PS Form 17 latest edition – May 2007.  Prepare in duplicate PS Form 17, Stamp Requisition/Stamp Return.  Complete all required fields.  Both copies must be legible.  Original to SDO.  Duplicate – office copy.

18. 18 PS Form 17

19. 19 Stamp Stock Acceptance Procedures It is critical that the stock custodian records the correct shipment number and exact amount when receiving stock.  Enter each PS Form 17 separately.  Shipment from SDO should be verified and entered into the unit accountability upon receipt.  Stock custodian and a witness must count and verify the shipment to ensure that all the items received match what is listed on PS Form 17.  Stock custodian (SC) and witness sign and date PS Form 17.  Secure the stock once verified.  Report any discrepancies to SDO using PS Form 8144.

20. 20 Stamp Stock Acceptance Procedures (Cont.)  SC inputs all the stamps, by item number, into the Unit Accountability as received (AIC 841, Stock Received).  Ensure accurate entry as shown on PS Form 17 from SDO.  SC reviews the stamp sale dates and ensures stamps are not placed on sale before the sale date listed on the PS Form 17 from SDO.  Any stock returned from the Stamp Destruction Committee, due to improper submission, must be entered into the Unit Accountability (AIC 841) by SC.  Amount shipped will match the original PS Form 17.  File your paperwork.

21. 21 Stamp Stock Return Procedures  The most current PS Form 17 (September 2006) must be used.  SC and a witness prepare and verify stock being shipped.  Correct item numbers should be used.  SC and witness must sign and date form.  Once stock is shipped from the unit, SC must reduce the unit accountability using AIC 848, Stock Return.

22. 22 Stamp Stock Return Procedures (Cont.) No confirmation copy returned to the unit. Saleable stock, redeemed stock, unsold bird stamps, and exchanged or refunded international reply coupons (IRC).  Returned in separate cartons.  Separate PS Forms 17.  Use registered mail to ship. Postal Bulletin (PB) – information when to withdraw specific stamps and when to return to SDO.

23. 23 Redeemed Stamp Stock  Quarterly schedule – return obsolete, damaged, and redeemed stock to SDO.  Each box contains its own PS Form 17 and a total.  Do not submit one PS Form 17 for multiple boxes.  Do not mix stamp items.  Separate by denomination.  Prepare four copies of PS Form 17. Original in an envelope taped to the outside of the package. Two copies inside the package. One office copy filed with daily supporting documentation.

24. 24 Return Stamp Stock  Return of saleable stock.  Authorized by SDO.  Prepare 3 copies of PS Form 17. Original – placed in an envelope affixed to the outside of the package. One copy inside with the stock being returned. One office copy retained with daily supporting documentation.  Ship via registered mail.

25. 25 International Reply Coupons (IRC)  Annual submission to SDO.  US-issued (exchanged) and foreign-issued (redeemed) IRCs accepted through December 31 of each year.  A PB article will contain a reminder.  Redemption rates for foreign-issued redeemed IRCs are based on round date stamp (right hand side of the coupon).  SC must ship IRCs to the SDO for receipt by February 28.

26. 26 International Reply Coupons (IRC) Foreign Issued DATEREDEMPTION RATES 01/01/2002 - 01/07/06$0.80 01/08/2006 - 05/13/07$0.84 05/14/07 - Present$0.90

27. 27 IRC – Shipment Procedures  Bind US-issued IRCs in packages of 100.  Bind foreign-issued IRCs in packages of 100.  Prepare PS Form 17 in triplicate.  Annotate on the PS Form 17, Exchanged/Redeemed IRCs.”  Two separate entries on the PS Form17. US-issued – # of coupons and denomination. Foreign-issued - # of coupons and denomination.  Enter total value of returned IRCs to AIC 848, Stock Returned.

28. 28 IRC – Shipment Procedures (Cont.)  Ship the IRCs along with the original and one copy of the PS Form 17.  File second copy of PS Form 17 with daily supporting documentation.

29. 29 Unsold Bird Stamps  Submit to SDO per District instructions.  Identify the box as “Bird Stamps Returned for Destruction.”  Prepare 5 copies of the PS Form 17: Mark the form, “Returned for Destruction - Bird Stamps.” Submit the original PS Form 17 to SDO in an envelope taped to the outside of the box. 3 copies inside with the bird stamps. File fifth copy of PS Form 17 with daily supporting documentation.

30. 30 Unsold Bird Stamps (Cont.)  Submit timely to the SDO.  Untimely submission becomes the financial responsibility of stock custodian.  Do not commingle birds stamps returned for destruction with return/redeemed stock.  Record bird stamps shipped in AIC 848, Stock Return on PS Form 1412 on the date of dispatch to the SDO.

31. 31 Stamp Stock Custodian Responsibilities  Ensure that all Stamp Credits are transferred to and assigned from the Unit Reserve.  Ensure that PS Form 3958, Unit Reserve Stamp Stock Transaction Record, is generated and signed every day on which there are transactions involving the Unit Reserve Stock.  Ensure that the Inventory by Category for the Unit Reserve matches PS Form 3958.  Ensure individual control of Unit Reserve.  Official item numbers must be used when recording all stamp stock.

32. 32 PS Form 3958