In the Matter of the Petition by: DONALD G. MAUS, P. O. Box 75603, Seattle, WA 98125-0603 P.S. Docket No. DCA-83 12/28/90 Grant, Quentin E., Chief Administrative Law Judge APPEARANCE FOR PETITIONER: Donald G. Maus, P. O. Box 75603, Seattle, WA 98125-0603 APPEARANCE FOR RESPONDENT: M. Perry Johnson, Esq., Office of Field Legal Services, Western Division, United States Postal Service, 850 Cherry Avenue, San Bruno, CA 94099-0170
By petition filed November 2, 1990, Petitioner Donald G. Maus requested a hearing, based on written submissions, on a Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act, dated October 18, 1990. Accordingly, this decision is based on written submissions including additional documents and written arguments filed by the parties pursuant to my order dated November 30, 1990.
1. Petitioner Donald G. Maus is the Supervisor Mail & Delivery, Queen Anne Station, Seattle, WA 98109.
2. In the period relevant to this matter, Ms. Maus was assigned accountability for the reserve stock of that station.
3. The reserve stock is the main stock of the station and is used exclusively for disbursements by the accountable employee to window clerks. Such disbursements are tracked on Form 17 or other appropriate forms to show additions to the accountability of window clerks and reduction of the reserve stock.
4. During a routine financial audit of the Queen Anne Station by the Postal Inspection Service on or about June 5, 1990, the reserve stock was found to be short the amount of $695.30. Mr. Maus has not questioned the accuracy of the audit. On June 5 he signed a Form 3294 (Cash and Stamp Stock Count and Summary) showing a shortage of $695.30 and agreed to the count.
5. As a result of the audit a letter of demand for repayment of the shortage was issued to Mr. Maus on June 11, 1990, and received by him on June 12.
6. On June 26 Mr. Maus requested reconsideration of the demand on three grounds: (1) that since the shortage occurred in redeemed stock, it is possible that an offsetting overage may appear when the stock is certified for destruction; (2) that the unit manager has not counted the reserve stock since February 1988 even though flexible credits have been out of tolerance; (3) there is no evidence of his failure to enforce USPS policies and procedures.
7. On September 12, the Acting Director, City Operation (Seattle) denied the request for reconsideration, finding none of the grounds advanced by Mr. Maus valid, and directed him to propose a voluntary repayment schedule or face involuntary collection action.
8. Mr. Maus failed to pay the indebtedness or to propose a voluntary repayment schedule. Therefore, on October 18, 1990, the Seattle Field Division issued a Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act advising Mr. Maus that the indebtedness would be collected by deducting 15% of his disposable pay for approximately four pay periods beginning on November 23, 1990.
9. On November 2, Mr. Maus exercised his statutory right to file a petition requesting a hearing under the Act and a waiver of the indebtedness for the following reasons: (1) failure of the Postal Service to follow proper procedures and time limitations in collection of the debt; (2) the possibility that either of two window clerks removed from their duties following investigation by Postal Inspectors may have taken advantage of an error made by Mr. Maus in his handling of stamp stock; (3) that an overage of $515.00 found during audit in a window clerk's stock could be related to Mr. Maus' shortage and used to offset it.
Under § 132 of Handbook F-1 (Post Office Accounting Procedures), employees, such as Petitioner, to whom the postmaster consigns postal funds and accountable paper, are held strictly accountable for any loss unless evidence establishes that they exercised reasonable care in the performance of their duties.
Petitioner does not contest the accuracy of the audit, the amount of the asserted debt, or the terms of the proposed repayment schedule. His arguments focus, rather, on circumstances justifying excuse or waiver of the debt.
Petitioner's argument based on procedural defects involves the inappropriate use by USPS, at one point, of PS Form 3239 for initiation of involuntary offsets and failure of the postmaster/ installation head to issue his notice of disposition of Petitioner's request for reconsideration within 15 days of receipt thereof as required by section 452.241 of the Employee and Labor Relations Manual. Petitioner has shown no prejudice as a result of either of these defects and there is nothing by way of statute, regulation, or decision that supports excuse or waiver of the debt on account thereof.
There is no evidence to substantiate Petitioner's argument that either of the two removed window clerks may have contributed to or created the shortage by taking advantage of an error by him in his handling of stamp stock.
Petitioner has produced no evidence showing a relationship between his stock shortage and the overage found in the stock of a window clerk. Such a relationship is required to authorize offsetting an overage against a shortage (F-1, § 472.222 and .223).
Finally, Petitioner argues that he should be found to have exercised reasonable care in the performance of his duties on the ground that this is the first shortage found in his stock in his seventeen years of exercising responsibility for such stock. Surely, Petitioner's record is commendable. However, without more, it does not constitute evidence that he used reasonable care as related to this particular shortage.
I conclude that shortage of $695.30 existed in Petitioner's reserve stock as found in the audit, that he has not shown that he exercised reasonable care in performing his duties related to such shortage so as to entitle him to relief from liability therefor and, consequently, that he was properly issued the notice under the Debt Collection Act which gave rise to the proceeding.