DOCKET SECTtOM
POSTAL.IUTECOMMISSION~:~ ,., :,
WASHINGTON, DC 2026%O&l
Docket No. R97-1
Postal Rate And Fee Changes,1997
MOTION OF ALLIANCE OF NONPROFIT
TO COMPEL ANSWERS TO INTERROGATORY
(February 10,1998)
MAILERS
ANMIVSPS-28
The Alliance of Nonprofit Mailers (“ANM”) hereby moves to compel the
Postal Serviceto answer interrogatory ANMLJSPS-28, propounded by ANh4 on
January23, 1998. The interrogatory,a follow-up to ANM/lJSPS-22, asksthe Postal
Serviceto explainhow it would accountfor revenuecollectedat commercial Standard
(A) ratesin responseto a back postageassessmentagainstmail originally entered at
nonprofit Standard(A) rates. The full text of ANMKJSPS-28 is attached as Exhibit
1 to this motion.’
The Postal Serviceobjects to the question on two grounds: (1) the question
is improper follow-up; and (2) the question exceedsthe limits on such discovery
imposed by Presiding Officer’s Ruling No. R97-1186 (Jan. 9, 1997). Neither
objection is well founded.
’ The interrogatory was originally numbered ANM/IJSPS-27. As noted in the
objection, however, ANhI previously propounded a different interrogatory with the
samenumber. To avoid confusion,the questionat issueshall henceforth be identified
as ANMAJSPS-28.
Interrogatory ANMAJSPS-22 was a general request for all Postal Service
publications and regulations concerning the “accounting treatment (in RPW and
elsewhere)ofmail” bearing nonprofit Standard(A) Mail indicia that was (I) entered
at commercial Standard (A) rates or (2) later assessedadditional postage on the
grounds that the mail was ineligible for nonprofit rates. Presiding Officer’s Ruling
No. R97-l/86 compelledthe Postal Serviceto answerthe question, but allowed it to
limit its “inquiry and response”to “those personnelat Serviceheadquartersinvolved
in a regularbasiswith RPW data, and to those handbooksapplicablenationally.” Id,
at 9. In its answer,the PostalServiceassertedthat it had no materialsat headquarters
that “specificaJlyaddressthe conditions described”in ANM/USPS-22. Responseof
USPS to ANMAJSPS-22 (filed Jan. 16, 1998).
ANM has followed up with ANM/USPS-28 becauseit finds incredible the
notion that an organization as large and rule-bound as the Postal Servicelacks rules
to governthe accountingtreatment of commercialStandard(A) revenuereceivedin
these circumstances.
ANMAJSPS-28 is
entirely appropriate--indeed,
conventional-as a follow-up to the Postal Service’sanswer. As the Postal Service
notes,the secondquestionis essentiallya variant of the first. Objection of the USPS
(Jan.30, 1998)at 5. It is not unusualin litigation againstthe Postal Servicefor more
specific variants of a question to elicit a responsiveanswer after a more general
version has elicited only a brush-off. That, indeed, is one of the main reasonsfor
allowing follow-up questions.
The Postal Service’sclaim that ANM/USPS-28 “is merely an attempt to ask
the Postal Service the same questions that the Presiding Office ha.sruled are not
timely” (USPS Objection at 5) is incomprehensible. While limiting the scope of
ANMAJSPS-22, Presiding Officer’s Ruling No. R97-l/86 compe:lledthe Postal
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Serviceto answerit.
Finally, ANM does not seek to expand the scope of the Postal Service’s
inquiry beyond the limits set in Ruling No. R97-l/86. If a diligent:inquiry among
“those personnelat Serviceheadquartersinvolved in a regular basiswith RPW data,”
and a diligent scrutiny of “those handbooks applicable nationally” still leavesthe
Postal Service clueless about how it accounts for revenue received in the
circumstancesposed, ANM will acceptthat as an answer.
Respectfully submitted,
Joel T. Thomas
1800K Street,N.W., Suite 810
Washington,D.C. 20006
(703) 476- 4646
AU&N
1722Eye Street, N.W.
Washington,DC 20006
(202) 736-8214
SIDLEY &
Counselfor Alliance of Nonprofit Mailers
February 10, 1998
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EXHIBIT
1
ANMRJSPSZS. Assumethat severalmailingsbearingNonprofit StandardMail (A)
(or nonprofit third-class) indicia later gave rise to payment of back postage on
grounds that eachaffected mailing was ineligible for nonprofit rates.
a.
When a checkis receivedfor paymentof the back postage,would the
payment be credited to a StandardMail (A) (commhercial)revenue
account, or to a Nonprofit Standard Mail (A) revenue account?
Pleaseidentify the account to which the paymentwould be credited,
andexplainwhy the PostalServiceaccountsfor such paymentsin this
way.
b.
Assumethat the checksfor paymentof backpostagewere all received
within the sametime fhune,but in diierent cities. Would the payment
always be credited in the samemanner as described in responseto
precedingpart (a), or is it possiblethat in one city it would be credited
one way, but in another city it would be credited difierently? Please
explain.
C.
If your responseto preceding part (b) is that such payments are
systematicallycredited in the sameway, please:
i.
identify the accounting regulation, role, standard,guideline,
instruction, or procedurethat specifiesthe ac:countto which
the receipt of payment of back postage (under the
circumstancesspecifiedhere) should be credited, and
ii.
produce a copy of the accounting regulation, rule, standard,
guideline, instruction, or procedure.
d.
When the payment is credited to a revenue account in the manner
describedin responseto precedingpart (a), is a new or revised form
3602 lilled out? Ifnot, what record(s)is (are)filled out in conjunction
with receipt of the payment? Please identify the regulation, rule,
standard,guideline, instruction, or procedure that slpecifieswhen a
new or revisedform 3602 is to be tilled out, and produce a copy of
the regulation, rule, standard,guideline, instruction, Ior procedure.
e.
Assume that the check for payment of back postage is received and
credited to a revenueaccount (as describedin your responseto part
(a)) in an office that is part of the PERMIT system. Pleasedescribe
how the PERMIT systemwould pick up and reflect these additional
revenues in the RPW system. For example, would the PERMIT
systempick up revenueswithout any correspondingmail volumes? If
not, how is the situationhandled? Pleaseidentify the regulation, rule,
standard, guideline, instruction, or procedure that specifieshow the
PERMIT systemwould pick up and reflect these additional revenues,
and produce a copy of the regulation, rule, standard, guideline,
instruction, or procedure.
f.
g.
Ifa revisedform 3602 is tilled out, doesit have the effect of removing
the volume for which the paymentof back postageis made from the
nonprofit categoryandtransferringit to the commercialrate category?
Assume that a nonprofit organization has made a payment for back
postage within the sameyear when the mail was entered and the
“case” has been closed. How are the revenuesand volumes for the
affected mail finally recorded in the revenueaccotmtsand the RPW
system? Please identify the regulation, rule, standard, guideline,
instruction,or procedurethat specifieshow the revenuesand volumes
for mail affected in this mannershould be recorded a.ndreported and
producea copy of the regulation,rule, standard,guideline, instruction,
or procedure.
CERTIFICATE
OF SERVICE
I hereby certify that I have this day sewed the foregoing clocumenton all
participants of record in this proceedingin accordancewith section 12 of the Rules
of Practice.
February 10, 1998