UNIT RESERVE

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UNIT RESERVE

• Pacific Area
• Finance Training
• February 2008

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
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
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).

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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.

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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.

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PS Form 3294-P
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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

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PS Form 571
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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
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.

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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
Unit Cash Reserve (Cont.)

• To determine the unit cash reserve amount
• Calculate the previous quarters postage sales
  using AIC 852, Total Sales from the units 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.

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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.

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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.

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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.

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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.

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PS Form 17
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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.

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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.

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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.

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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.

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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.

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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.

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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.

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

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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.

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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.

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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.

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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.

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PS Form 3958