SOX Overview

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SOX Overview

• MTAC MeetingNovember 19, 2008

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What SOX Means for USPS

• As a result of the Postal Act of
  2006, the Postal Service has
  two SOX requirements
• A quarterly certification by the
  CEO and CFO starting
  December
  31, 2007 (Section 302)
• An annual certification by the CEO and CFO
  requiring independent auditor review beginning
  September 30, 2010 (Section 404)

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What SOX Is and Is Not About
SOX Is
SOX Is NOT
Developing Monitoring and Reporting
Mechanisms Making Sure We Follow Our Own
Policies and Procedures Changing Our Ways of
Doing Things to Match Our Policies
Determining Policies and Procedures Business
Process Reengineering Working to Increase
Productivity or Efficiency
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BMEU Audit Issues

• Delayed postage statements
• Incomplete postage statements
• Negative balances

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BMEU Audit Issues

• Inadequate verification
• Cursory, In-depth verifications not performed
• Drop-ship accuracy
• Rate eligibility
• First versus standard
• Periodicals
• Non-profit
• Shape-based
• Carrier route
• Move update

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Questions