Docstoc

SOX COMPLIANCE

Document Sample
SOX COMPLIANCE Powered By Docstoc
					NAPS REGIONAL CABINET
       MEETING


   January 14, 2011

     Charlotte NC
SOX COMPLIANCE
 Sarbanes-Oxley Act of 2002
         H. R. 3763
      January 23, 2002
    USPS
ACCOUNTABILITY
  Postal Accountability and
     Enhancement Act
         H. R. 6407
     December 3, 2006
Approach of SOX Initiative

  FY 2007    FY 2008      FY 2009
  Prepare   Document      Test

       FY 2010       FY 2011
  Full Assessment   Standard Ops.
      SEPTEMBER 30, 2010
THE POSTAL SERVICE MUST BE
 COMPLIANT WITH THE SARBANES
 OXLEY ACT (SOX)
 THE POSTMASTER GENERAL MUST
 CERTIFY THAT WE ARE COMPLIANT.
 THE AREA VICE PRESIDENT MUST
 CERTIFY THAT WE ARE COMPLIANT.
 THE DISTRICT MANAGER MUST
 CERTIFY THAT WE ARE COMPLIANT
Testors

 Area--Field Financial Specialist--
  Testing/Remediation
 HQ--Financial Testing & Compliance
  Analyst--Testing
 OIG—Testing
 Ernst & Young--Testing
    THE SOX INDICATORS
EVALUATE HOW WELL WE ARE
   ADHERING TO THE KEY
 CONTROLS AND FINANCIAL
        PROCESSES.
  EVERYONE PLAYS A ROLE,
    EITHER DIRECTLY OR
 INDIRECTLY, EVERYONE IS
INVOLVED IN OUR FINANCIAL
        REPORTING.
      SOX INDICATORS
BANKING DIFFERENCES
247/647 NET YTD
TIMELY MAILING STATEMENTS
PERFORMANCE BASED
  VERIFICATION
STAMP CREDIT AUDITS FLOOR
STAMP CREDIT AUDITS UNIT
  RESERVE
      CALL TO ACTION
       INDICATORS

EXCESS STAMP STOCK
OPEN EMPLOYEE ITEMS
RETAIL ASSOCIATE CASH COUNTS
ACCOUNTS RECEIVABLE
EXCESS FLOOR STOCK
POS COMPLIANCE
           VITAL FEW REPORT
              SOX/CTA NPA
   Performance Based Verifications
   Unit Reserve Audits—POS Sites only
   SIA Retail Floor Stock Counts—POS only
   Banking Differences—All Sites
   Timely Entry of Mailing Statements—BMA
   Employee Cash Counts
   247/647 Net YTD Indexed
            SOX/CTA cont’d.

   Excess Floor Stock—POS only
   Excess Unit Stock
   Employee Items
   Accounts Receivable
   APC Counts
   Bank Secrecy Act (BSA) Compliance
   Unit Reserve Cash Counts
     Functions Currently Being
              Tested

   Smart Pay
   Automated Postal Centers
   Voyager
   Postal Retail Units
   Business Mail Entry
   Banking
                                             HOT SOX ITEMS
                                                          DAILY
The SOX Drawer                                   1) BSA (Bank Secrecy Act)
                                                 2) Clerk Cash Retained
                                                 3) No Fee Money Order Index
                                                    a) Not Applicable
                                                    b) One Time Local Purchase
                                                    c) No Available Cash – Customer
                                                         Change

                                                        MONTHLY
                                                  1) Voyager
                                                 2) SSA Cash Count
Welcome to the SOX Drawer                        3) Unit Reserve Cash Count
This is one article in a series of
                                                 4) Inactive clerk credits > 30 days
Metro Leader articles that feature                  with cash--Must be closed
Finance Activity Tips and Best                   5)Retail Floor Stock Count
Practices to stay in SOX
compliance.
                                                  Quarterly –First Month
                                                  1) APC Count
                                                  2) Unit Reserve Stock Count

                                     “ A new level of Responsibility”
              Future Testing


   GATS
   Payroll
   BRM
   VMAS
   JVs
 BANKING DIFFERENCES
POSSIBLE CAUSES (OCCURRENCES):
  CHECK AMOUNTS DO NOT MATCH
  DEPOSIT SLIPS
  COUNTERFEIT BILLS
  DEPOSIT SLIPS DO NOT MATCH AIC
  752 ON UNIT 1412
IMPROVE SCORE:
  DO NOT MAKE ERRORS
  DETERMINE CAUSE AND PUT A
  PROCESS IN PLACE
    AIC 247/647 NET YTD
OVERAGES/SHORTAGES CHARGED TO THE
 UNIT (DOLLARS)

IN-TRANSIT STAMP STOCK:
STOCK NOT PICKED UP TIMELY
STOCK PICKED UP WITH INCORRECT
  SHIPMENT NUMBER OR AMOUNTS

BANKING DIFFERENCES
DEBIT CREDIT CARD DIFFERENCES
 Performance Based Verifications
Timely Entry of Mailing Statements
• PBV is determined by a mailer’s past
  record with mailings
• PBV is determined by Postal One

• Timely Entry--Confirm postage statement
  is checked-in to Postal One!
  with required fields!
                                   Continuing SOX Compliance in FY 2011
                            BME Managers – Did you know in November 2010, BMA SOX Compliance testing
The SOX Drawer              began at the 60 largest revenue generating units across the country? In addition, a
                            sampling of 60 sites which generated revenue in excess of $1 million in FY 10 was
                            also performed. Is your unit in compliance?
                               FY11 Q1 preliminary results of the 6 Financial Controls tested are as follows:

                            Controls                                               Number of Exceptions
                                                                               Top 60   Random 60 Total
                            BMEU Check-In Procedure                               --           2         2
                            Verification of Mail Contents                         3          11         14
                            Use of PS Form 3607-P Clearance Document              3            1         4
                            End-of-Day Reconciliation                             7            5        12
                            SOX Certification Questionnaire                        5          10        15
Welcome to the SOX Drawer   Postage Statement Completion                          9            2        11
Managers – Did you know
that following policy and   TOTAL                                                 27             31          58
procedures will keep you
in SOX compliance?            The results identify how critical it is that each site follow the policies for mail
                            acceptance each day to meet all of the SOX Financial Controls.
                              Employees should be aware of available resources such as job aids and user
                            guides which can be found at: http://blue.usps.gov/bma/dm109.htm

                                                       A New Level of Responsibility
Stamp Credit Audits—Floor (RFS)
Stamp Credit Audits—Unit Reserve
• RFS Audits are completed monthly by the
  21st of each month

• Unit Reserve Audits are completed the
  first month of each quarter
 OPEN EMPLOYEE ITEMS
EMPLOYEE ITEMS MAINTAINED
 AT THE LOCAL OFFICE.
AIC 754 – SALARY ADVANCE
AIC 755 – TRAVEL ADVANCE
AIC 764 – EMPLOYEE CASH
 CREDIT SHORTAGE
AIC 767 – EMPLOYEE STAMP
 CREDIT SHORTAGE
 ACCOUNTS RECEIVABLE

  EMPLOYEE DEBTS OWED THE
       POSTAL SERVICE

HEALTH BENEFITS
CASH SHORTAGES
STAMP CREDIT SHORTAGES
SALARY OVERPAYMENT
            Credit Counts/Audits
                    POS
•   Retail Floor Stock (RFS)—monthly
•   Individual Cash Credits—monthly
•   Unit Cash Retained—monthly
•   Unit Reserve Stock—first month of the
     quarter UNLESS the RFS count is
     out-of-tolerance
        Credit Counts/Audits
              non-POS
• Craft employee credit counts—every 4
   months
• PM & PMR counts—once each FY
• Unit Reserve counts—annually (unless
   assigned to a craft employee)
A FINAL POINT

     PAY
  ATTENTION
      TO
   DETAILS

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:9/1/2011
language:English
pages:24