TIME & ATTENDANCE COLLECTION SYSTEM (TACS) OVERVIEW JUNE 2, 2004 TACS

BENEFITS OF TACS ELIMINATED LIMITATIONS OF FORMER T&A SYSTEMS  Five systems with different data formats and reports  Required expensive modifications to systems across the country to comply with any new legal requirements and Union contracts  Organization needed one platform for all work hour and payroll information to feed all of our reporting systems  Did not use Web based technology  Near real time data downloads for instant reporting  Ease of use by all operators

BENEFITS OF TACS (continued) CENTRALIZED MANAGEMENT CONTROL  Centralized view of all sites’ T&A data at HQ/Area/Cluster  Access available from the largest to the smallest offices  Modifications to application implemented across the country instantaneously; no site-by-site implementation  Eliminates delay in full compliance to Postal T&A standards across the country  Interfaces with all corporate information systems such as FLASH, DOIS, and PIMS  Integral part of USPS long term strategy of single platform for all work hour data

TACS SYSTEM TACS CONSISTS OF FIVE COMPONENTS  TACS (PAYROLL)  RTACS (MANUAL/EBR)  TVR (NON EBR OFFICES)  ERMS (IVR)  ADJUSTPAY

TACS SYSTEM (continued) TACS IS A PROGRAM THAT - is comprised of over 650,000 lines of computer code - includes all updates to FLSA and FMLA regulations - includes all updates to union contract provisions - successfully pays over 700,000 employees correctly - has the capacity to produce 85 types of reports

TACS SYSTEM SECURITY EXTERNAL SECURITY FEATURES - Electronic Badge Reader system access is password protected - Badges are in lockable racks - Badge racks are located in highly visible areas - Employee ID’s are on badges, not SSN’s - TACS sites are located in restricted areas - e1357 security process is required for any access to TACS systems - District Internal Control Group required to perform periodic TACS reviews

TACS SYSTEM SECURITY (continued) INTERNAL SECURITY FEATURES - Only authorized TACS personnel and supervision are allowed access to system - All terminals are password protected - TACS system tracks and records all users and any entries made to employee files by time, date, and SSN - User profile function restricts level of access as determined by management - District TACS managers are required to periodically perform system and process reviews - Random FLSA reviews conducted by Area and Cluster

TACS REPORTING SYSTEM TACS REPORTS ARE SEGREGATED INTO THE FOLLOWING FOUR GENERAL TYPES OF CATEGORIES Administrative type reports - USER, BADGE, ACTIVE OPN, VALID CODE, & MISC SITE Employee type reports - SCHEDULE, HIGHER LEVEL, COMPARISON, CMS/TACS, LIST, & MOVES Finance type reports - LTATS, PPWK, FLASH, LDC/OPN, & STATION SUMMARY Clock Ring type reports – OVERTIME & DISALLOWANCE

TACS – SUPERVISOR RESPONSIBILITIES Supervisors are responsible to authorize employee time for whom they supervise. Supervisors must authorize payroll adjustments for the employees whom they supervise. Resources: District/Area/Headquarters Labor Mr. Donahoe Letter dated June 4, 2002 Mr. Donahoe Letter dated January 31, 2003 Information Packets sent to Area Labor by Michael J. Harrison – Jack W. Green TACS website Adjustpay Website – PP 14 additional documents added

TACS PAYROLL ADJUSTMENTS Adjustments CityPerCityPerCityPer APPay PeriodAdjustmentsEmployees1,000AdjustmentsEmployees1,000AdjustmentsEmployees1, ,622770, ,433733, ,656707, ,162768, ,221732, ,534706, ,362768, ,235732, ,259706, ,634767, ,914731, ,500702, ,276771, ,419735, ,090703, ,586777, ,442740, ,312708, ,057796, ,317760, ,213723, ,887770, ,424740, ,896708, ,941758, ,687728, ,941698, ,926757, ,795727, ,165698, ,511755, ,234725, ,478695, ,507754, ,173725, ,251695, ,267752, ,218723, ,369693, ,046751, ,599723, ,959692, ,533748, ,237720, ,494691, ,621747, ,506720, ,932690, ,013745, ,184719, ,106745, ,275718, ,899744, ,711718, ,943742, ,125716, Normalized32,641739, ,764712, ,949739, ,808713, ,822739, ,796713, ,249738, ,180711, ,531736, ,742710, ,616734, ,100708, ,70719,622, ,53918,844, ,04911,224, %-17.26% -4.31% FY 2003FY 2004FY 2002 Totals

TACS LABOR RELATED ADJUSTMENTS Administrative Agency decision Administrative Agency settlement Arbitration decision Back Pay – Typically 80 hours or more Decision - Court of Law Dispute Resolution Team Decisions – NALC Equal Employee Opportunity Commission (EEOC) decision Equal Employment Opportunity Commission (EEOC) settlement Grievance settlement (general hours adjustment) Grievance settlement (lump sum) Merit Service Protection (MSPB) settlement Merit Service Protection (MSPB) decision payment Pre-Arbitration settlement Redress settlement (EEOC)

TACS LABOR RELATED ADJUSTMENTS (cont’d) Grievance - Lump Sum <10,000

TACS LABOR RELATED ADJUSTMENTS (cont’d) Grievance - Lump Sum >10,000

TACS LABOR RELATED ADJUSTMENTS (cont’d) Grievance - Hours Adjustment

TACS LABOR RELATED ADJUSTMENTS (cont’d) Class Action - Lump Sum or Hours

TACS LABOR RELATED ADJUSTMENTS (cont’d) Agency - Lump Sum

TACS LABOR RELATED ADJUSTMENTS (cont’d) Agency - Hours Adjustment

TACS LABOR RELATED ADJUSTMENTS (cont’d) Exceptions & References

MISCELLANEOUS TACS TOPICS - CMS / TACS INTERFACE - COMPARISON OF PS FORM 50 INFO TO TACS MASTER FILE - DISALLOWED TIME ISSUES - QUESTIONS?