®

1

SARBANES-OXLEYSARBANES-OXLEY February 12, 2011 February 12, 2011

2

What is Sarbanes-Oxley?

Myth: It is an additional workload.

Fact: It is simply following the processes and procedures that exist.

Myth: Only pertains to retail transactions

Fact: It is all financial transactions

Myth: Only for customer services

Fact: It is everyone’s responsibility

3

SOX Buzz words

What are the three buzz words for SOX, that if you follow, you will usually be in compliance?

Accurate

Timely

Authorized

4

FY 2010

USPS is testing the effectiveness of financial controls at postal facilities across the country. This phase is an important step as USPS works toward Oct 1, 2010, when its finances will be subject to the terms of the Sarbanes-Oxley (SOX) Act. (USPS News Link Sept 23)

Need to be at least 95% compliance in all financial aspects

FY 10 Focused on BMA/DMU and PVDS

FY 11 will be BMA/DMU, PVDS, PRU, Voyager, Smartpay and BRM

5

In Compliance

Success:• BMEU and BRM –

• Negative balances• Inactive Accounts• Late Mailing Statements

• Voyager-• Reconciling statements

• Audits-• Clerk cash counts• SIA retail floor audits

• Purchasing-• Smartpay card• eBUY

6

SOXTips of the Week

PS FORM 3971

Detailed information can be found in

Field Finance Training: Timekeeping

http://blue.usps.gov/wps/portal/accounting/training/finacctreport#TK

PS Form 3971, Request for or Notification of Absence: A PS Form 3971 must be completed for every period of leave taken. This is the supporting documentation for the leave entered.

Unscheduled Leave: Employee’s time card is attached to the PS Form 3971 and kept in the Supervisor/Manager office. Employee meets with Supervisor to retrieve their time badge and signs the PS Form 3971. Supervisor finalizes the form and files it in the centralized location in the unit by employee name.

Scheduled Leave: Except for emergencies and unexpected illness or injury, leave for all employees must be requested and approved in advance by the appropriate supervisor on a PS Form 3971. Sufficient leave balance to cover the period requested should be verified.

7

SOXTips of the Week

PS FORM 3971

Detailed information can be found in

Field Finance Training: Timekeeping

http://blue.usps.gov/wps/portal/accounting/training/finacctreport#TK

Future leave:

PS Forms 3971 for future leave are kept in a central location in each unit and Plant. The Plants file by tour by date and the Units file by date. Supervisor verifies the leave slips when making the schedule for the following week, inputs the leave into eRMS and finalizes the PS Form 3971. The form is then filed in the central location by employee name.

****see next slide for a properly completed PS Form 3971****

8

Completing Time and Attendance Forms

PS Form 3971, Request for or Notification of Absence

9

Steps Necessary for Compliance

Communication

Follow policies and procedures

Continue to be aware of policy and procedures changes

Promote good business practices; reinforce accountability

Ensure processes are in place

Provide oversight and follow up

10

Daily Certification

Daily SOX BMEU Certification• Not just a writing exercise• Must be completed same day• Effective Oct 1st , this will be included in the

escalation process

Daily SOX Certification• Not just a writing exercise• Certifying you are completing the

checklists and items• Tracks the employee who was logged in

compares to name typed in

11

Reviewing documentation

Money orders• Clerk found guilty of converting money orders for

personal use $42,000.

PS Form 3533 Refunds• Clerk issues false refunds

Converting Postal Funds for personal use• Clerk does not input each transaction and pockets the

funds

Not conducting actual audits• Hides shortages

12

Financial transactions

eTRAVEL• Local travel • Duplicate payments• Within 5 days of return

Purchasing• eBuy• Smartpay Card• Invoices

Timekeeping• PS Form 3971• PS 1017A & B• PS Form 1723• Clock rings

13

Importance of Key Financial Activities

Fully performing the financial activities will help prevent loss of revenue

Activities ensure timely and appropriate revenue and expense recognition

The absence of any one or a combination of key financial activities could result in a material weakness.

14

Reinforces public trust in our financial reporting

Standardization and streamlining of processes and systems

Increased accountability and ownership of controls

Improved structure to solve operational issues by working together across functions

Consistent documentation of processes and systems

Benefits of Compliance