In the Matter of the Petition by: ) September 4, 1992 ) ROSE CHESTNUT ) 26 Hilltop Avenue ) ) at ) ) Babylon, NY 11704-2505 ) P. S. Docket No. DCA-142 APPEARANCE FOR PETITIONER: Michael F. Curry NAPS Branch 360 P. O. Box 373 Ridge, NY 11961-0373 APPEARANCE FOR RESPONDENT: Joseph Conaty P. O. Box 9998 Babylon, NY 11702-9998
This proceeding arises from a Petition filed on June 26, 1992, by Rose Chestnut (Petitioner) appealing a Notice of Involuntary Administrative Salary Offsets under the Debt Collection Act (Notice). In the Notice, dated June 16, 1992, Petitioner was advised of the determination of her indebtedness to the United States Postal Service (Respondent) in the amount of $2,313.75 based on a shortage in the Main Stock at the Babylon, NY, Post Office.
In her Petition Petitioner requested a "written hearing," stating she would call no witnesses. Respondent in its Answer stated that it did not oppose Petitioner's request for a decision on the documentary record. In a subsequent telephone conference with the then presiding Hearing Official, the parties stipulated that the decision would be on the written record, and that after the tolling of the 60-day period for issuance of the decision (because of requested extensions), the latest date for the decision would be September 15, 1992. The parties were given until August 20, 1992, to submit final arguments, exhibits, or sworn statements. Respondent submitted exhibits on August 17, 1992. Petitioner has submitted nothing further beyond the information included in her Petition.
1. During calendar year 1991 and through January 29, 1992, the Main Stock of the Babylon, NY, Post Office was assigned to the Superintendent, Window Services, the position held by Petitioner, Rose Chestnut. Petitioner has held that position since February 14, 1987.
2. Because of the transfer of the overall accountability of the Babylon Post Office from the outgoing Postmaster to an incoming Officer-in-Charge (OIC), an audit was conducted on January 29, 1992, by an examiner and Petitioner. A discrepancy of $2,313.75 in the Main Stock was discovered as a result of that audit.
3. After the issuance of the Notice of Indebtedness and Petitioner's appeal, a request was made by the Executive Vice President, National Association of Postal Supervisors (NAPS) Branch 360, on behalf of Petitioner, to inspect the records pertinent to the shortage. Those records were thereafter made available to Petitioner and NAPS for inspection.
4. Following the inspection of records by Petitioner and an investigation made by Respondent, the OIC of the Babylon Post Office concluded that nothing had been revealed which would warrant rescission of Respondent's determination of Petitioner's indebtedness. Respondent, in performing its investigation, checked accountabilities of Station Managers in the North Babylon and West Babylon Stations and the accountabilities of all clerks in those stations and in the Babylon Main Post Office to determine if any overages existed that might account for the shortage in the Main Stock. No such overages were found.
In her Petition Petitioner alleges that in January 1991, when she returned from a 20-month detail, she discovered that the vault area that housed the Main Stock had been reduced in size, and that its security was compromised because the area was accessible to others during work hours. Petitioner stated that as a result of the size reduction she had to store some of the stock outside the area of the padlocked gate, although it was apparently still located within the vault area. Petitioner further alleges that because of a change in her job description in the Spring of 1991, she was unable to devote sufficient time to her accounting responsibilities. Petitioner also alleges that a paper error in redeemed stock should account for $863.75 of the shortage.
As indicated above in the findings, following the receipt of her Petition, Petitioner and her representative were given full opportunity to review and investigate all records pertinent to the shortage. Since that time Petitioner has filed nothing further. Respondent has submitted a sketch of the floor plan of the Babylon Main vault along with several photographs of the vault area. That evidence reveals that the vault area could be secured. The portion of the interior vault area within the metal mesh gate could be enclosed and locked with a padlock and the entrance to the overall vault area incorporated steel doors which could be locked.
Petitioner has submitted no evidence supporting the allegations made in her Petition. Petitioner has submitted no evidence relating to her exercise of reasonable care in the performance of her duties. Nor has Petitioner submitted evidence of severe financial hardship in meeting the payment schedule specified in the Notice. Because Petitioner has submitted no such evidence and has neither denied nor rebutted the assertions made by Respondent in its Answer, there is no basis to exonerate Petitioner from liability for the loss in question.
1. Under the applicable regulations, Handbook F-1, "Post Office Accounting Procedures," ¶ 132, employees such as Petitioner are held strictly accountable for any loss unless evidence establishes they exercised reasonable care in the performance of their duties.
2. There is no evidence in the record that would establish that the loss occurred despite Petitioner's exercise of reasonable care in the performance of her duties.
3. Petitioner is liable to the Postal Service for $2,313.75, the amount of the loss.
4. Because no evidence has been presented of severe financial hardship, the debt is payable by deductions as set forth in the Notice of Involuntary Administrative Salary Offsets, until the debt is collected.
James E. Lemert Administrative Judge