United States Department of Agriculture
Research, Education, and Economics

ARS * CSREES * ERS * NASS
Policies and Procedures

Table of Contents

1. ABBREVIATIONS
2. POLICY
3. AUTHORITIES
4. DEFINITIONS
     Administrative Officer
     Courier Service Designee
     Postage Custodian
     Indirect Research Costs
5. FORMS
6. PROCUREMENT OF POSTAGE METER EQUIPMENT--LEASE OR PURCHASE
     Unit Administrative Officer or Designee
7. PURCHASE OF METERED POSTAGE FROM THE POST OFFICE
     CHECK PAYMENT METHOD
     IMPREST FUND METHOD
8. PURCHASE OF POSTAGE STAMPS
9. SMALL PACKAGE COURIER SERVICE
10. SECURITY AND ACCOUNTABILITY
11. VERIFICATIONS
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6

1.    ABBREVIATIONS

• AAO     - Area Administrative Officer
• AO        - Administrative Officer
• CAD     - Contracting and Assistance Division
• FMD     - Financial Management Division
• GSA     - General Services Administration
• GSD     - General Services Division
• LC        - Location Coordinator
• NFC     - National Finance Center
  
  

2.    POLICY

It is ARS policy to procure and use metered mail, postage stamps, and small package courier service for official Government business instead of postage-and-fees-paid mail. The postage custodians are responsible for the accountability and security of the postage set on the meters, postage stamps, and equipment.

3.    AUTHORITIES

• 41 CFR Chapter 201-45.107
  
• Treasury Financial Manual for Guidance of Departments and Agencies, Volume 1, Sections 4-3040.10 and 4-4030
  
• Manual of Procedures and Instructions for Cashiers, Section 0701
  
  

4.    DEFINITIONS

Administrative Officer: An employee responsible for performing, or supervising employees who perform, administrative support duties related to budget and fiscal; procurement and contracting; personnel; automatic data processing; and other office support services.

Courier Service Designee: An employee designated by the unit supervisor to be the liaison and point of contact for handling all matters relating to courier delivery services; receiving the procurement copy of the airbill; verifying and approving vendors' invoices for payment; and completing AD-757.

Postage Custodian: An employee designated by the unit supervisor to be responsible for the custody, security, and accountability of the postage meter(s) and the related postage which is set on the meters. This employee is also responsible for buying and issuing postage stamps and assuring that they are used properly.

Indirect Research Costs: Any research costs at a location which benefit more than one Research Management Unit and cannot be effectively charged directly to each research account. These costs are accumulated and controlled in indirect cost accounts and distributed to the research accounts at pre-set rates.

5.    FORMS

• AD-700    - Procurement Request
• AD-757    - Miscellaneous Payment System Voucher
• 3602-A     - Daily Record of Meter Register Readings
• PS-3603    - Receipt for Postage Meter Setting
• SF-1164    - Claim for Reimbursement for Expenditures on Official Business
• SF-1165    - Receipt for Cash Subvoucher

6.    PROCUREMENT OF POSTAGE METER EQUIPMENT--LEASE OR PURCHASE

Unit Administrative Officer or Designee

Prepare a requisition (AD-700) to acquire the postage meter(s) and other mailing equipment and forward documents to the authorized purchasing official. Area and Location offices will charge their indirect research accounting code.

NOTE: Headquarters units do not lease or need to purchase postage meter equipment. They receive mail services through agreements with the Beltsville Area, National Agricultural Library, Animal and Plant Health Inspection Service, and Office of Operations, USDA. If Headquarters offices require equipment, contact GSD.

7.    PURCHASE OF METERED POSTAGE FROM THE POST OFFICE

CHECK PAYMENT METHOD

Postage Custodian

• Prepare AD-757, requesting a check for the amount of the postage desired to be set on the meter. Refer to Exhibit 1.
  
  NOTE: The payee's name will be "U.S. Postmaster" and the payee's address will be the address of the Postal Custodian who requested the check. Do not use the custodian's name on the check.
  
  
• Enter the appropriate indirect research accounting code (XOlXXXXXXX) on the AD-757 and send to AAO, AO, or LC for approval.
  
  NOTE: In cases where Location or Area offices are serviced by the same postage meter equipment, use the program management and indirect research accounting codes for each office and prorate the expenditures equitably.
  
  
• Submit request for check in sufficient time to prevent the total depletion of the postage set on the meter.

AAO, AO, or LC

• Sign and forward AD-757 to designated Certifying Officer.

Certifying Officer

• Certify and process AD-757 and forward to NFC for payment. (Check will be mailed to the Postage Meter Custodian by the Treasury Disbursing Center.)

Postage Custodian

• Take the check and the meter to the Post Office and have Custodian official set the postage on the meter for the amount of the check. The Post Office official will issue a PS-3603 (Exhibit 2).

IMPREST FUND METHOD

Imprest funds may be used only in emergency situations when there is insufficient time to request and receive a check and postage is needed to process the mail and the transaction does not exceed $500. Otherwise, use the check payment method.

AO, AO, or LC

• Prepare and approve an AD-700 to authorize the Imprest Fund Cashier to issue cash to the Postage Custodian.

Postage Custodian

• Present the approved AD-700 to Imprest Fund Cashier and request a specific amount in cash to purchase meter postage when needed.

Imprest Fund Cashier

• Issue a SF-1165, according to MANUAL 303.4C and Exhibit 3.
  
  
• Advance the cash and obtain the Postage Custodian's signature on the "Interim Receipt for Cash" portion of the SF-1165.

Postage Custodian

• Take the cash and the meter to the Post Office and have an official set the postage on the meter for the amount of the AD-700. The Post Office will issue a PS-3603 (Exhibit 2).
  
  
• Return the original PS-3603 and SF-1165 to the Imprest Fund Cashier. Retain a copy of the PS-3603 with accountability records.

Imprest Fund Cashier

• Void the stub of the SF-1165 and give it to the Postage Custodian who signed for the cash.
  
  
• Include the original copy of the PS-3603 with the Imprest Fund Cashier's reimbursement voucher to replenish the imprest fund.
  
  NOTE: Do not include the "void" copy of the SF-1165 with the Imprest Fund Cashier's reimbursement voucher.

8.    PURCHASE OF POSTAGE STAMPS

The use of postage stamps is authorized for unique or emergency needs and for those locations whose operation is so small that a postage meter is unjustified. The imprest fund may be used for purchase of stamps, or they may be purchased with personal funds and claimed on SF-1164 as prescribed in DIRECTIVE 341.1. The stock of postage stamps on hand should be limited to a maximum of 3-months usage.

AO, AAO, or LC

• Prepare and approve an AD-700 to authorize the Imprest Fund Cashier to issue cash to purchase stamps upon receiving requests from the postage custodian.

Postage Custodian

• Present the approved AD-700 to the Imprest Fund Cashier and request a specific amount in cash to purchase postage stamps when needed.

Imprest Fund Cashier

• Issue an SF-1165, according to MANUAL 303.4C and Exhibit 4.
  
  
• Advance the cash and obtain the Postage Custodian's signature on the "Interim Receipt for Cash" portion of the SF-1165.

Postage Custodian  

• Take the cash and the SF-1165 to the Post Office. Purchase the stamps and have the Post Office employee sign the SF-1165.
  
  
• Return SF-1165 to Imprest Fund Cashier.

Imprest Fund Cashier

• Include the SF-1165 with the Imprest Fund Cashier's reimbursement voucher to replenish the imprest fund.

Postage Custodian

• Secure stamps in a locked container. Maintain an inventory record of the supply of postage stamps which includes purchases and usage.

9.    SMALL PACKAGE COURIER SERVICE

In accordance with GSA Contract No. GS-00F-13300, the use of Federal Express for overnight delivery of express small packages up to 70 pounds and less than 108" in length and girth combined or shipments up to 150 pounds nationwide, including Alaska,Hawaii, and Puerto Rico is mandatory for civilian executive agencies.

Courier Service Designees

• Contact local Federal Express office to request an account number. To assist in tracking expenses and resolving billing problems, a separate account can be established for each accounting code used to pay for small package courier service shipments.
  
  
• Request Federal Express to send invoice to the address of the appropriate courier service designee for verification and the approval of vendors' invoices for payment.
  
  
• Call local Federal Express office and request a pickup of the item(s) being shipped or schedule daily pickups, if volume warrants.
  
  
• Prepare a Federal Express airbill in accordance with Federal Express instructions. Ensure that the following items are entered on the Federal Express airbill:
  
  
  • Federal Express account number is entered in Sender's Federal Express Account Number block.
    
    
  • ARS 10-digit accounting code is entered in the Internal Billing Reference Information block.
    
    
• Detach and retain Sender's copy of the airbill and send the remaining copies with the package.
  
  
• Retain a copy of the airbill in a pending file for verification with invoice.
  
  
• Verify airbills with invoices and stamp or write "Approved for Payment" on the invoice and sign it.
  
  
  • Prepare an AD-757 according to NFC's MISPAY procedures and Exhibit 5 and obtain signature of supervisor or other appropriate official. Forward AD-757 with the invoice attached to the designated Certifying Officer. Provide information copies of the forms to the servicing Budget and Fiscal Office.
    
    
  • If the Designated Certifying Officer is unknown, field personnel should contact their Unit Administrative Officer and Headquarters personnel should contact the Chief, ADP and Major Equipment Branch, CAD, for information.

Certifying Officer

• Review and certify AD-757 for payment and forward to NFC for processing. 
  
       
  
  

10.    SECURITY AND ACCOUNTABILITY

Postage Custodian

• Lock the postage meter machine after each use and secure the key in a locked file cabinet or safe separately from the postage meter machine.
  
  
• Secure the postage meter machine, stock of postage stamps, and blank airbills in a locked file cabinet or safe when not in use.
  
  
• Maintain the following mail accountability records:
  
  
  • PS 3603, Receipt for Postage Meter Settings
  • Copy of SF-1165, Receipt for Cash - Subvoucher signed by Post Office employee
  • AD-757, Miscellaneous Payment System
  • PS 3602-A, Daily Record of Meter Register Readings (see Exhibit 6)
  • Copy of SF-1164, Claim for Reimbursement for Expenditures on Official Business
  • Copy of Federal Express Airbill (if the Postage Custodian is also responsible for courier operations)

Postage Custodian

• Retain accountability records for 6 years before disposition in accordance with DIRECTIVE 251.8.

11.    VERIFICATIONS

AO

• Appoint two employees, or have imprest fund verifiers, where available, make unannounced verifications of the postage stamp inventory and make periodic reviews of accountability records and security procedures.

FMD/GSD

• Make unannounced verifications during the conduct of Mutual Assistance Reviews, Internal Control Reviews, and Imprest Fund Audits.
  

T. J. CLARK
Deputy Administrator
Administrative Management

Exhibits
1 AD-757 - Miscellaneous Payment System - Postal Meters
2 PS-3603 - Receipt for Postage Meter Settings
3 SF-1165 - Receipt for Cash - Subvoucher - Postal Meters
4 SF-1165 - Receipt for Cash - Subvoucher - Postage Stamps
5 AD-757 - Miscellaneous Payment System - Courier Service
6 PS-3602-A - Daily Record of Meter Register Readings

EXHIBIT 1

COMPLETION INSTRUCTION FOR AD-757
METER POSTAGE

The following numbers correspond to the circled numbers on the following exhibit.

(1) Payee's name or descriptive information - "U.S. POSTMASTER".

(2) Payee's Address: "POSTAL METER CUSTODIAN", not the custodian's name.

(3) Street number or post office box (NTE 30 Characters).

(4) City, State, and Zip Code (NTE 27 Characters).

(5) Fund Code "T5".

(6) Leave Blank (for Forest Service use only).

(7) Voucher Number. Headquarters: Leave blank, Certifying Officer assigns.
    Areas: Area Office assigns each Location a block of sequential
    voucher control numbers to use when each AD-757 is prepared.

(8) Payment Code "01".

(9) Action Code "A".

(10) "DATE AGENCY RECEIVED INVOICE" Block and "DATE GOODS OR SERVICES REC'D" block
    block must always be the same which will be the date the AD-757 is prepared at
    the Location.

(11) Type Payment "3".

(12) Document Type "1034"

(13) Document Identification (Meter Number).

(14) Must show "POSTAGE FOR METER #XXXXX".

(15) Leave blank.

(16) Form 1099 "X" in "NO" block.

(17) Accounting Code - 5 digits in column A and either 5 or 9 digits (the additional
4 digits are for use of the local option code) in column B. Please insure that
the accounting codes have been established in the Accounting System.

(18) Object Class "2352".

(19) Amount requested

(20) Total amount requested.

(21) Preparer's signature, date, and telephone number.

(22) Reviewer's signature, date, and telephone number.

(23) Leave blank. Forward to designated Certifying Officer for completion.

COMPLETION INSTRUCTIONS FOR AD-757
FEDERAL EXPRESS PACKAGE COURIER SERVICE

The following numbers correspond to the circled numbers on the following exhibit.

(1)    Vendor Number, leave blank.

(2)     Payee's Name or Descriptive Information "FEDERAL EXPRESS".

(3)    Payee's Address, enter address of Federal Express office serving the office (NTE 30 characters).

(4)     Post Office Box Number (NTE 30 characters).

(5)     City, State, and Zip Code (NTE 27 characters).

(6)     Fund Code "T5".

(7)     Leave blank (for Forest Service use only).

(8)     Voucher Number. Headquarters:    Leave blank, Certifying Officer assigns.
                        Areas:     Area Office will assign each location a block of sequential voucher control numbers to use when each AD-757 is prepared at the location.

(9)     Payment Code "01".

(10)     Action Code "A".

(11)     Foreign Country Code, leave blank.

(12)     Date Agency Received Invoice. Using stamped date on the invoice(s), determine the latest date for the same month. This is the date that should be entered. If invoices cover different months, a separate AD-757 must be prepared for each month.

(13)     Date Goods or Services Rec'd. Using the dates the service was received, enter the latest date in this block.

(14)     Type Payment "1".

(15)     Check Identification Information, Line 1. Document Type "1034". If BPA is established for Federal Express, use Document Type "0038". Document Identification Contract Number, BPA (AD-0038 number) if BPA has been established or GSA Contract number (GS-00F-13300). Insert invoice number(s) (NTE 30 characters). If additional space is required for invoice numbers, use lines 2 and 3 (NTE 30 characters per line). If payment information and invoice numbers exceed the 90 spaces, complete an "Invoice Processed for Payment" sheet (see page 4 of this exhibit for blank copy) and write "Inv, Info Sent Under Separate Cover" in the block on lines 2 and 3.

(16)     Leave blank.

(17)     Form 1099, "X" in "NO" block.

(18)     Accounting Code. 5 digits in column A and either 5 or 9 (the additional) 4 digits are for the use of the local option code) in column B. Please insure that the accounting codes have been established in the Accounting System.

(19)     Object Class "2353".

(20)     Amount of invoice.

(21)     Total amount of voucher.

(22)     Preparer's signature, date, and telephone number.

(23)     Reviewer's signature, date, and telephone number.

(24)     Forward to designated Certifying Officer for completion.

    

EXHIBIT 2

PS-3603, RECEIPT FOR POSTAGE METER SETTINGS

EXHIBIT 3

SF-1165, RECEIPT FOR CASH - SUBVOUCHER - POSTAGE METERS

EXHIBIT 4

SF-1165, RECEIPT FOR CASH - SUBVOUCHER - POSTAGE STAMPS

EXHIBIT 5

EXHIBIT 6