Some of the improvements are specifically set out below. 1. Regionalization and mechanization of disbursement functions One of the major objectives of the Department's program has been to transfer nearly all field disbursement functions including payroll to the 15 regional controller offices in order to preaudit most of these transactions. These were formerly made by postmasters. The accounting has been simplified and reporting expedited. Statistical data can now be developed as a standard and uniform byproduct of these centralized payment procedures.

Payroll processing. Formerly each post office processed its own payroll, maintained leave and other payroll records, and issued U.S. savings bonds under the payroll-deduction plan. By June 29, 1956, the fully mechanized payroll system was transferred to the 15 regional controller offices from over 38,000 post offices and other regional installations. Since that time the more than 555,000 postal employees have been paid their earnings every 2 weeks by punched card checks prepared mechanically in many regions on high-speed electronic equipment. The regional controller computes pay, maintains time, leave and other payroll records, develops productive man-hour reports, and issues U.S. savings bonds. This system has also provided valuable statistical data heretofore unavailable.

Rental payments.-Leases and rental agreement payments were paid by postmasters. On July 1, 1955, a new punched card system was developed and installed for the mechanization and centralization of these payments in the 15 regional controller offices. Payments have been expedited and valuable statistical data provided for use in administering the Department's realty program. This system facilitates the projection of the Department's liability for rental property for a future period of time for accurate long-range budgetary planning.

Motor vehicle accounting.-Accounting for the Government-owned motor vehicle service fleet was transferred from the garages to the regional controller offices and established on a pool basis. Postmasters were relieved of disbursing functions with respect to payment of motor vehicle vouchers. During 1959, consultants were retained to study the entire motor vehicle program for further refinement of accounting, control, and reporting features.

Indemnity claims.-Postmasters formerly processed and paid indemnity claims under cumbersome and not always uniform procedures. This function was standardized and transferred to the regional controller offices. Many improvements were made with respect to processing and paying these claims. Public Law 83-374, approved May 28, 1954, authorized the payment of indemnities on registered, insured, and c.o.d. mail from postal revenues. This eliminated the necessity of requesting annual appropriations for such payments and further expedites settlement of claims.

2. Transportation accounting

Air and rail payments were made previously in Washington by the Bureau of Transportation and later by the Bureau of Finance. Contract vehicle and powerboat service payments were made by postmasters. Payments have now been transferred to the regional controller offices.

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metava bro bad wonder I vir no esteemtzoq yd bisq 3. Revenue and property control oft rot bollsteni bas beqoleveb asw Handling decountable paperes Progress was made in improving distribution of stamps andbother accountable paper and in procedures for controlling and safeguarding these assets of the Departments Fourteen regional distributing post offices were established for supplyst ing stamped paper tolall offices and in less than bulk lot quantitiest The 56 central accounting offices, which formerly carried out they stampo supply function for fixed oredit-offices as well as the subagencies for stamped envelopes and postal cards were eliminatedtom -Bulk requisitioning. Effective Julybls1957new procedures were installed whereby postmasters requisition builkistimp lots direct from Bureau of Engraving and Printing, bypassing regiondbidistributingo officesProcedures were then developed and installed mechanizing the entire stamp order processing, billing, and inventory control syss tem in 1959.b92290019 190 19tasto-into timme.br ] Embossed stamped envelopes Aohange inappropriation languagei was obtained to permit the payment of embossed stamped envelopes out of revenues.Previously, when the Department sold more stamped envelopes than was anticipated in the budget, it was necessary to obtain a deficiency appropriation from Congress The Appropriation Actoofs 1955 (Public Law 88874, approvech Maly. 28, 1954), permitted the payer ment of printing the stamped envelopes out of revenueen Pinbhed cards procedures were installed ofor processinghstamped envelopet orders through headquarters. •pritmu goop, rastotrogenpr. Printed stamped envelopes.-A modified mail-order procedure for handling printed stamped envelope biders was put into diffect October 1,1984. The purchaser completes a three-part punched card form to be checked and validated by the postmaster and forwarded to Stamped Efivelope Agency at Dayton, Ohio. "The Agency bills the Department

on basis of orders shipped. Postmasters nay requisition bulk quanti ties directly from the: ageney The system has reduced operational, costs, expedited processing, handling and delivery, and simplified the accounting, disbursing, and auditing relative to sales and purchasesq Plain stamped envelopes. Mechanized procedures for processing plain stamped envelope orders were g installed in 1958. This changep and plain stamped envelope orders, and permits, verification of postmasters" accountability for these items, by mechanical means, facilitating ther age alicut Bhi T, er 08 er to as a Improved gecounting control of excess Revenues derived fromq the sale of stamped envelopes in odd lots at prices in excess of accountiq able value are under improved control, ort to

Panorged substantially uniform cessing tg..

Metered postage Metered postage revenues, exceeded stamp reveat postggerezz nues by 1953, but until that time, there was such as, On July 1, 1953, revenuês derived from postage meters o were put under control through the use of a of a punched card accounting system by which each meter is rolled and Further study was made a assure full collection

initiated to record certain types. of miscellaneous non postal receipts as credits to the current budgetary account to which the replacement cost of the respective items 38 Properly chargeabler leroThese items include sale of unserviceable motosq vehicle parts, refunds for 91 drums, sale of motor vehicles: when specifically authorized, sale of unserviceable building maintenance or operating equipment, sale of unserviceable equipment by mailbag repair units and mail equipment shops, and sale of "unserviceable+ andi used postal equipment and supplies. At the Department's requesto language was included in Public Lawi 84 51itapproved fundja 1955) authorizing the crediting of the motor vehicle account witho reimbursements collected for damage to Government-owned vehicles, b and (2) the crediting of mailbage manufacturing costs with the proto ceeds from the sale of scrap material resulting from the manufacture and repair of mailbags. Now, by a law passed in 1959 telephone.com-m missions and fees for court duty are recorded as postali revenues. 19d Customsebllections and payments! Each post office previouslyT madel daily remittances of collections to various customs ports of o entrandn cooperation with the Treasury Department, proceduresd were developed to consolidate post office customs duty collection items inthel 15 regional controller offices, and issueronel check to collector of customs at New York each accounting period to cover the totala collections for the region. The adoption of this plan eliminated more than one half million checks annually, band improved controli at both Bureau of Customs and Post Offices Department: U The new system also provides the Bureau of Customs with a method for accruing income on the mail entries, furnishing actual accountin control over ver amounts due and collections made.

Property accounting –Real and personal property -În 1955 the fland and buildings transferred from the General 2noong 195 To nomi (6) 78

Administration was put on the books and has been maintained on a current basis, although not used in most financial statements because of lack of full property inventories. The project to bring personal property under accounting control is now substantially complete. A number of test installations were first completed to prove the adequacy of the procedures and documents for the maintenance of current and continued property records. All forms and instructions were developed for taking of the nationwide inventories in February 1960, with complete recording of all inventory results in the general ledger records as of June 30, 1960. This inventory included both physical and monetary control of the Department's fixed personal property.

Depreciation. A study of the problems relating to depreciation of real and personal property was made. This necessitated the development of a policy for applying depreciation as a cost factor in the operation of the Department's activities. It was necessary to develop, on an acceptable basis, the cost of space occupied by postal activities in Federal-owned buildings both under and not under control of the Department. This was important since space is occupied in Post Office Department controlled buildings by other agencies and the Department also occupies space in Federal buildings controlled by General Services Administration.

Inventory of supplies.-Inventories of supply items and new equipment in stock have been taken in the supply centers and capital equipment warehouses and for the first time have been placed on the books. Major supply items at other locations will be carried under perpetual inventories controlled by the general books. Inventories of minor items will be expensed and inventories adjusted by physical counts annually.

4. Money order system

Domestic money orders.-A revised money order system was installed in all post offices, using three-part punched-card forms. Money order issuing machines have been tested and ordered, which will give daily totals automatically and effect saving in time in balancing orders. This will insure better accounting and control.

Centralization of money order audit procedures.-A major improvement in the reconciliation of paid money orders was made on September 1, 1955, with the opening of the Kansas City Money Order Center. This center audits approximately 1.3 million money orders daily at one central point. Backlogs in reconciling paid money orders have been eliminated. In August 1956 the processing of semidomestic money orders was transferred to the center. Continuing improvements in the controls and efficiency of operations by the use of highspeed tape machines are under active study.

International orders.-In April 1957, procedures were instituted to improve accounting and control over money order transactions between the United States and foreign countries.

5. Postal savings

New accounting procedures were developed and installed on September 1, 1954, incorporating major features as follows: (1) adoption of punched-card-type certificates; (2) compounding of interest annually; (3) elimination of certain denominations; (4) elimination of

maintenance and preparation of certificate stubs and certain other accounting records at post offices; and (5) substitution of mechanical verification of interest in lieu of manual audit. The adoption of the punched-card certificate permitted mechanical processing and auditing of paid certificates.

6. Instructional handbooks

Instructions required for effective financial operations have been developed and codified as handbooks. Development and completion of these instructions will serve as an important step in securing approval of the Department's overall accounting system by the Comptroller General.

7. Accurate measures of cost

Cost analysis function. One of the major parts of the financial improvement program has been the development of cost data to provide management with effective tools for control, planning and obtaining the greatest operating efficiency. The potential value of accurate and adequate cost data is immeasurable.

Workload factors.-Uniform procedures for forecasting, measuring and reporting workload are used in all post offices with annual receipts in excess of $200,000, all stationary and postal transportation units. Uniform procedures for developing operations targets were also adopted.

Costs of mechanization.-Cost studies are made in connection with installation of mechanized equipment in post offices under the modernization program. These studies are used to determine the extent to which anticipated savings have been realized.

Cost ascertainment. The cost ascertainment system has been improved and refined from time to time. This is a continuing effort. 8. Statistics, economics and sampling

A Statistics and Economics Division was created to coordinate all statistical operations. This unit is developing quality controls and economic samples of the Department's extensive data, to replace the conventional 100-percent accumulation of data. Quality control chart techniques, industrial-type sampling and other statistical techniques and measurements to provide reliable information, and statistics for planning and operational purposes, are being developed and installed.

9. Manpower control system

Provision of system.-The manpower control system as set up in 1953, provides a method of controlling man-hour usage through establishment of allowances and fixing individual responsibility for estimating, controlling, and reporting man-hours.

Coverage of system. This system covers first- and second-class post offices, terminals, airport mail facilities, and transfer offices by designated groups, and each regional group of mobile units. Basic targets for the coming fiscal year in terms of man-hours, workload, revenues and expenses are developed by regional officials for post offices with annual receipts of $1 million or more, during the fourth quarter of each year. These are based on estimates submitted earlier by postmasters, modified to conform with projected economic condi