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MSMA annually awards members for their greatest accomplishments. It’s time for YOU as a member to “Toot” your horn. This is your chance to SHINE! Each year the MSMA National Board of Directors accepts nominations for its annual awards to recognize a member or chapter for their outstanding contribution to the industry. These awards will be presented at MAILCOM ‘17 Conference & Exhibition in Philadelphia, Pennsylvania scheduled April 10-12. The deadline to submit applications for these awards is March 1st, 2017. Details and information can be found on the National website at MSMA Annual National Awards. Categories are: Manager of the Year Award: Established to recognize a member's outstanding contributions to the profitability of their company and profession. The recipient of this award is recognized by their peers who deem them worthy of being honored for his/her professional accomplishments and for sharing their experiences with others. Chapter of the Year Award: Presented annually to the Chapter that best upholds the standards and mission statement of MSMA. Qualifications for consideration include educational programs, network relations, participation in industry activities, timely communications to members, current with required reporting to National Board, and maintaining and sustaining membership and development. Distinguished Service Award: Established to annually recognize a member in good standing who has made significant contributions, over an extended period towards the advancement and enrichment of either their local chapter or the national association. Supplier of the Year Award: This award will recognize a MSMA Supplier member for outstanding contributions made within the Industry. It takes into consideration accomplishments made by the applicant through the past year. The recipient of this award is recognized by their peers who deem them worthy of being honored by his/her professional accomplishments and for sharing their experiences with others. If you have any questions concerning the awards program or applications, please email Barbara Fahy at [email protected] December 2016 PostScript

December 2016 PostScript - msmanational.org · December 2016 PostScript. DC Metro ... John Hopkins University ... Lauren Makal Lauren has grown in the contract from the onboarding

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MSMA annually awards members for their greatest accomplishments. It’s time for YOU as a member to “Toot” your horn.

This is your chance to SHINE! Each year the MSMA National Board of Directors accepts nominations for its annual awards to recognize a member or chapter for their outstanding contribution to the industry. These awards will be presented at MAILCOM ‘17 Conference & Exhibition in Philadelphia, Pennsylvania scheduled April 10-12.

The deadline to submit applications for these awards is March 1st, 2017. Details and information can be found on the National website at MSMA Annual National Awards.

Categories are:

Manager of the Year Award: Established to recognize a member's outstanding contributions to the profitability of their company and profession. The recipient of this award is recognized by their peers who deem them worthy of being honored for his/her professional accomplishments and for sharing their experiences with others.

Chapter of the Year Award: Presented annually to the Chapter that best upholds the standards and mission statement of MSMA.

Qualifications for consideration include educational programs, network relations, participation in industry activities, timely communications to members, current with required reporting to National Board, and maintaining and sustaining membership and development.

Distinguished Service Award: Established to annually recognize a member in good standing who has made significant contributions, over an extended period towards the advancement and enrichment of either their local chapter or the national association.

Supplier of the Year Award: This award will recognize a MSMA Supplier member for outstanding contributions made within the Industry. It takes into consideration accomplishments made by the applicant through the past year. The recipient of this award is recognized by their peers who deem them worthy of being honored by his/her professional accomplishments and for sharing their experiences with others.

If you have any questions concerning the awards program or applications, please email Barbara Fahy at [email protected]

December 2016

PostScript

DC Metro Chapter Celebrates its Members By: LaChelle Bynum, EMCM, MDC

“Success is the progressive realization of a worthy goal”

MSMA DC Metro Chapter held its Member Appreciation celebration on October 21, 2016. The event was held at the City Club in Washington, DC. In addition to the awards presented, Chapter President, Mr. Floyd Creecy, presented

“Image Boosters: Being Your Best You” which was a very lively presentation and a raffle giveaway was held. We also had some notables in the audience this year Barbara Fahy, MSMA President and Lance Humphries, MAILCOM Managing Director.

Metro Mail Services, GrayHair and So-Bran of the Washington, DC area sponsored this event at the GOLD and SILVER levels respectively. This enabled DC Metro to keep the pricing at an economical level.

There were two new dynamics in this event held for the first time in the DC Metro Chapter history and they were: Corporate Member of the Year and Shining Star of the Year.

“Corporate Member of the Year” honors the corporation which supports the local MSMA membership by: the corporate member that has continually supported the Metro DC Chapter by allowing their employees to take advantage of MSMA’s educational events, encourage MSMA certifications, allows Board member participation, endorses MSMA’s mission and helps further the Chapter’s goals. Eligibility - Corporate membership in good standing for at least two years.

The winner of the “Corporate Member of the Year" was ServiceSource, unanimously elected by the DC Metro Board. The below explains the breadth of this organization which serves throughout the United States.

ServiceSource is a leading nonprofit disability resource nonprofit with regional offices and programs located in ten states and the District of Columbia. We serve more than 23,000 individuals with disabilities annually through a range of innovative and

valued employment, training, habilitation, housing and other support services. Our proven collaborative approach helps foster a more inclusive and supportive community where individuals with disabilities can succeed and thrive. Strategic partnerships with local community businesses, government entities and nonprofits help bridge the gaps for individuals with disabilities, seniors, and veterans, creating sustainable opportunities that benefit the entire community and result in greater independence for the individual.

Floyd Creecy, Chapter President (pictured far right) presented the award to Teresa Guzik, Community Relations Specialist (pictured left), and Jonathan Ransom, Program Manager (pictured middle) of ServiceSource.

DC Metro Chapter Celebrates its Members (continued)

Shining Star of the Year” requires the member to be in good standing with MSMA, the staff member has shown growth

within the last year, a positive team spirit attitude, has contributed to the success and well-being of their operation and examples given by the manager to exemplify the outstanding qualities of the staff member. Entries were submitted from:

John Hopkins University

ServiceSource located at Department of Transportation

HeiTech located at Department of Commerce

MSTI (Management Support Technology, Inc.) located at Federal Trade Commission

All the entries were properly prepared, which made the team’s review seamless. The matrix developed reduced any subjectiveness that may come when an award is given. The award consisted of two paid tickets for the event (manager and staff), certificates, all received membership for the remaining 2016. The winner received a “Shining Star of the Year” Award” and free membership for both 2016 and 2017. Nominees were:

Lauren Makal Lauren has grown in the contract from the onboarding of my being a program manager at the Federal Trade Commission. She has been an asset to the contract which has increased the visibility of the mail operations and increased the customer service levels for internal and external.

Mary Thomas Mary served as a supervisor at the Navy Yard for 13 years. She currently works at the Department of Transportation with John Parker as the supervisor of the mail operations. Mary is diligent with training staff, assisting program manager on contractrual obiligations, providing feedback on reporting points and provides customer service throughout DOT.

LaKeysha Richardson LaKeysha is a team leader at the John Hopkins campus. She was integral in the modernization of the mail operations that service over 10,000 customers. She networks, communicates with staff, customers and external stakeholders. The continued positivity that she displays everyday enhances the mail operations in an exponential way

Michael Tann Michael Tann is an enthusiastic Printing Operator at HeiTech Services. In his 2-year tenure with HeiTech Services, Michael was promoted from a Mail Clerk to a Print Operator. Michael moved forward in his educational goals by obtaining his MDC certification in 2014. He recently renewed his certification in July 2016. He displays a positive attitude every day. Michael’s selfless attitude spreads within the team and everyone reflects his team spirit.

And the winner of 2016 “Shining Star of the Year Award” was Mr. Michael Tann, Printing Operator at HeiTech Services. Congratulations Michael!

Floyd Creecy, Chapter President (pictured far left) presented the award to Michael Tann, Printing Operator at HeiTech Services, Jennifer Bartwell (pictured middle) and LaChelle Bynum (pictured far right) VP of Education for the Chapter & Regional Director of MSMA National.

Chicago Chapter Celebrates 20th Anniversary By: Barbara Fahy, MDC MSMA Chicago Chapter celebrated their 20th Anniversary on November 16, 2016 at Ditka’s Restaurant in Oakbrook Terrace, IL. It was our privilege to welcome Lance Humphries as our special guest speaker; many of us who know him as the long-time leader at the MSMA National level, Managing Director of MAILCOM and the speaker at the Chicago Chapter inaugural meeting back in November 1996.

With past, present and future members in attendance, Lance spoke about the history and the future of MSMA and the benefits of becoming a local member. MSMA’s common interest in the mailing and distribution industry, is to provide one with career growth, self-development and beneficial networking opportunities. The goal is to present our membership with educational content which in turn increases one’s value to their organization.

We shared past experiences and a few laughs, while taking a stroll down memory lane through our picture board. A great time was had by all and everyone left a winner with door prizes, give away gifts and helpful information about our great organization. We also welcomed new individuals as well as new corporate members. Lastly, a Certificate of

Appreciation from the MSMA National Board was presented to the Chicago Chapter from Barbara Fahy and Lance Humphries.

Message from Barbara Fahy, MDC MSMA National President

As we approach the end of 2016, I am proud of all the accomplishments that both the MSMA National Board and the MSMA Local Chapters have achieved. At our last National Board/ Chapter President’s Meeting, the participants discussed both the successes and challenges they have encountered and some of the new Educational Programs/Networking opportunities presented to their memberships. The MSMA National Educational Webinars continue to be very popular and we are in the process of putting together the schedule for 2017. If you have any topics to recommend or wish to be a speaker, please reach out to our Education Committee.

The National Board continues to meet monthly via conference call and is in the process of implementing several of the goals and objectives that are part of our Strategic Plan, which has included expanding the scope and focus of MSMA. You will soon be hearing about a new MSMA Certification which will be launched early next year.

I would also like to congratulate the MSMA Chicago Chapter which just celebrated their 20th Anniversary!

It is now more important than ever to take an active role with our personal and professional growth by providing value-added services to our companies, clients and associates. Active participation in the MSMA provides the networking, educational and social atmosphere to help us become more effective leaders in our industry.

As an all-volunteer organization, we rely on your support and participation at the local and national levels and seek your input to growing the Association, not only for today, but for tomorrow’s leaders. We are always looking for individuals to serve on the MSMA National Committees.

On a personal note, I would like to thank everyone who serves on the National and Local Chapter Boards. Their support and dedication to MSMA is invaluable.

I encourage you to consider attending the MAILCOM Conference, April 10th – 12th in Philadelphia, Pennsylvania and

possibly become a CMDSM, CMDSS or MDC. One of the benefits of a MSMA membership is a generous discount to attend the MAILCOM Conference. All the information you need is at your fingertips by visiting the MAILCOM or MSMA websites. Please review the accompanying articles throughout this edition of PostScript.

My best wishes to you and your families for a safe and enjoyable holiday season. I look forward to seeing you at a local MSMA Chapter Event or the Spring MAILCOM Conference in April.

Thank you for your continued support of MSMA. Please feel free to contact any of the National Board members if you have any questions.

President’s Message

MAILCOM ’17 Spring Conference – Justifying Your Attendance MAILCOM ‘17 will be back in Philadelphia, Pennsylvania. Celebrate with fellow

MSMA members across the country in historic Philadelphia at MAILCOM ‘17 on April 10-12, its 37th Anniversary. Philadelphia has a rich history…like the Liberty Bell and Independence Hall where the United States Declaration of Independence and Constitution were signed.

Getting the approval to attend important conferences like MAILCOM has always been challenging – even more so under the current economic conditions. But actively participating in MAILCOM is a key to success for you as a professional in the mail/print/delivery industries and

just as important to the success of your organization.

Many companies, organizations and individuals have benefited from their involvement with MAILCOM over the years. If you are considering attending a MAILCOM Conference, then here are some ideas to help you obtain the necessary approval to attend.

Keys to Getting Approval to Attend MAILCOM - Approval often comes down to the ROI, (Return on Investment) to your organization – are the benefits worth the costs? Before discussing benefits, let’s start with the costs. There are ways to lower the cost to attend.

First, there are group discount registration fees available if two and or up to four or more people from your company register for the conference. You should check with your organization to see if there are other people from within your company planning to attend. Attendees do NOT need to come from the same office, only the same company to receive one of the Group Discounts offered by MAILCOM. If not, register as early as possible to receive the Discounted Early Bird Registration rate.

Second, you can shop around for the least expensive transportation method. Also, be sure to register at the hotel early to ensure the conference discount rate. In some cases, your company might have a travel department that has Corporate Discounts at many hotels so you might want to check with them first. There are a number of attendees each year that will offer to pay some or all of the travel costs out of their pockets. People that do that look at it as an investment in their careers – and it shows your management how committed you are to developing yourself and adding value to your organization. The biggest key to getting approval is to explain the return (benefits) to you and your organization. Here are some benefits that you can tailor to your own situation:

Learning ways to reduce costs and improve efficiency Learning Best Practices and Ideas for Process Improvements Learn about the latest technology and automation and other tools Build a strong network and support group Become inspired to succeed Add more value to your key stakeholders

MAILCOM offers many sessions geared to leadership and management best practices, and proven ways to provide more positive work environments for your employees that will drive improved morale, motivation and performance.

Improve your credibility within the industry and your organization. You will learn important information that will benefit you personally - and your organization. As you go home and apply what you know you will gain greater respect and recognition. In addition, you can work towards your Master Certification in Mail Communication (MCOM) Certification by earning one or two professional management certificates while at MAILCOM. MCOM is ONLY offered at MAILCOM. You can also take advantage of the opportunity to earn the professional certifications sponsored by MSMA, including the Mailpiece Design Consultant (MDC), Certified Mail Distribution System Manager(CMDSM) or Certified Mail Distribution Systems Suppliers (CMDSS). Professional credentials that will enhance your career and benefit your company.

Become a teacher, inspire others and build a stronger team. With all the learning, networking and inspiration you receive, you will be equipped to go back home and inspire and teach others. This will be rewarding to you - and your team!

One final tip: If you do attend MAILCOM, make sure you prepare a thorough written report to share with your boss and team. Also, do a verbal presentation of the key highlights from your report and let your excitement show through at what you gained at the conference.

– BY PAUL KOVLAKAS, MDC

USPS Files for Price Changes to take effect January 22nd 2017 As expected, the USPS has formally proposed price changes that are targeted to take effect on January 22nd of next year. The changes are laid out in two separate filings (for Mailing Services and for Shipping Services), which are now under review at the Postal Regulatory Commission (PRC) to ensure the changes comply with federal regulations. The PRC is expected to render a decision on each filing in the mid to late November timeframe.

If approved by the PRC, most prices will see an increase but there are some that will decrease. While the cost of a 1 ounce stamped letter increases from 47 cents to 49 cents, the price for mailers that use a postage meter to pay for a 1 ounce letter will decrease from $0.465 to $0.46, or 3 cents less than the price of a stamped letter (currently the metered letter price is 0.5 cent less than the stamped price).

There are additional changes that are beneficial for mailers worth noting. The USPS is extending the current “up-to-2-ounce” price for First-Class Presort Letters category to include a maximum of up to 3.5 ounces, so letters weighing up to 3.5 ounces can be mailed for the same price as a 1 ounce letter, promoting the use of inserts and promotional content in statements and invoices for example.

Also, the maximum weight for First-Class Mail Nonautomation Presorted Machinable Letters and Standard Mail Machinable Letters is increasing from 3.3 ounces to 3.5 ounces, and the weight limit for Flats piece-rate only pricing will increase from 3.3 ounces to 4 ounces. Here are some additional highlights of Mailing Services changes.

The average increase across each Market Dominant (Mailing Services) mail class will be as follows:

o First-Class Mail 0.780%

o Standard Mail 0.895%

o Periodicals 0.832%

o Package Services 1.007%

o Special Services 2.536%

5-Digit automation presort prices decrease 0.8% while AADC and MAADC prices increase by 1%.

Certificate of Mailing fees are increasing 6.1%.

First Class Mail (FCM) Parcels weighing 0 to 4 ounces will pay a uniform price, with an increase of 1.9%, and prices for parcels above 4 ounces will have a consistent 18 cent differential for each additional ounce.

Return Receipt prices increase 2.9 %. Electronic Return Receipt will be priced at $1.45, while hardcopy Return Receipt will cost $2.75.

The 3-Digit and AADC presort categories will be merged for letters as the AADC category.

Alternate Postage is renamed to Share Mail with simplified requirements and pricing.

FSS (Flats Sequencing System) Rate Cells will be eliminated.

COD or “Collect on Delivery” will be renamed as “Collect on Delivery Hold For Pickup” and the USPS will limit the delivery option to Hold For Pickup at a Post Office, rather than street delivery, so that payment from the recipient can be collected over the counter.

The Full-Service IMb Incentive discounts are being maintained (0.3 cents per FCM piece, 0.1 cent per Standard Mail piece).

The Postal Service has also proposed that “Standard Mail” be rebranded as “USPS Marketing Mail”.

On the Competitive Products (Shipping Services) side, the USPS has proposed price changes that represent an average 3.9% price increase across all Shipping Services. Some highlights include:

Prices across Priority Mail Express (PME) are increasing 3.4%, with Retail prices increasing 3.7%, Commercial Base Prices (CBP) increasing an average of 2.4% (set at a flat discount of 11.2% off retail), and Commercial Plus Prices (CPP) increasing an average of 2.3%. The CBP and CPP price is the same for PME.

Prices across Priority Mail (PM) are increasing 3.9%, with Retail prices increasing an average of 3.3%, Commercial Base Prices (CBP) increasing an average of 4.1% (and will reflect an average discount of 11.2% off retail), and Commercial Plus Prices (CPP) across PM increasing an average of 4.5% (will reflect an average discount of 16.8% off Retail).

Parcel Select prices on average will increase 4.9%

Parcel Select Lightweight on average will increase 8%

Parcel Select Ground will increase 2.7%

Parcel Return Services prices increase 5.5%

First-Class Package Services prices increase 4.1%

Retail Ground prices increase 3.8%

In addition:

Premium Forwarding Service prices increase 3.8%

Global Express Guaranteed (CXG) prices increase 4.9%

In this filing, some International product prices remain unchanged. First-Class Package International Services (FCPIS) Priority Mail Express (PME) and Priority Mail Express International (PMEI) prices will not change.

Barcoded PMI shipments to select countries will get a delivery scan in lieu of a signature.

IPA and ISAL prices increase 3.8%

Airmail M-Bag prices increase 4.9%

Are you ready for Full-Service Assessments? If you’re a USPS Full-Service mailer, your Mailer Scorecard will show if you’re meeting thresholds for mail quality metrics that are required as part of Full-Service requirements. You can access your Mailer Scorecard by signing on to the USPS Business Customer Gateway (BCG). By meeting Full-Service requirements, mailers qualify for the Full-Service incentive discount of 0.3 cents and 0.1 cent (three-tenths and one-tenth of a cent) on First-Class and Standard Mail automation mailings.

This September, the US Postal Service began testing monthly email assessment notifications to mailers that exceed monthly thresholds for Full-Service metrics, with another round happening in October. These assessments are for test purposes and no payments are due, but you can use the information in these emails to focus your efforts to improve your Full-Service metrics performance where it’s needed before live assessments are due and must be paid starting in November.

USPS will be evaluating your Full-Service eDoc for the following mail quality metrics: Valid MID’s, STID’s and entry facilities, proper mail owner identification, unique container, handling unit and piece barcodes, and properly linked Copal trays. If your mail quality metrics fail to meet the established targets, you’ll be required to pay an assessment based on data and metrics from mailings entered the prior month (so November assessments will be based on data from October mailings). The amount of the assessment is essentially the loss of the Full-Service incentive discount on the portion of your monthly volume that exceeds thresholds. Beginning November this year, you will lose the Full-Service incentive discount for pieces in error over the Full Service quality metric threshold.

More information about the assessment process can be found in section 6.0 of the Publication for Streamlined Acceptance for Letters and Flats found here: Publication for Streamlined Mail Acceptance for Letters and Flats.

In the automated notification process the USPS is sending postage assessment notifications to email addresses associated to BCG user roles in the following order of precedence:

1. The Verification Assessment Evaluator (VAE) identified on the BCG. If no VAE is identified the notification is sent to; 2. The Business Services Administrator (BSA) for Manage Mailing Activity. If there is no BSA for Manage Mailing Activity

the notification is sent to; 3. The BSA for an alternate PostalOne! service; Audit Mailing Activity, eVS/PRS Customer, Scan Based Payment Customer.

If you want to review your VAE or BSA assignments, you can review, change or add current user roles through the Business Customer Gateway using information found at: BCG Account Management guide.

To ensure mailers are prepared for the November and ongoing assessments, the Postal Service has been conducting a series of Mailer Scorecard Hotline calls, encouraging mailers to access the Full-Service Mail Quality Metrics and reach out to local USPS BMEU staff for assistance. More information for these calls can be found at https://ribbs.usps.gov/. Any irregularities or questions with the Mailer Scorecard can be reported through the hotline calls, PostalOne! Helpdesk at 800-522-9085 or via email at [email protected]. Include the phrase “Mailer Scorecard” in the subject line of the email.

Precious Cargo Priority Mail Flat Rate Boxes Have you ever had to ship a laptop, tablet or smartphone? Maybe you’re sending a tablet to your child who’s away at college, or perhaps a laptop that needs to be repaired. Whether you’re selling a used cellphone or distributing them to employees across the country, you need to know about three new flat rate shipping boxes from the US Postal Service.

The last time I sent a laptop off for repair I was instructed to use the original packaging if possible. That’s not always an option if you’ve recycled the box that it came in. That’s where the new USPS Priority Mail Flat Rate Precious Cargo Boxes™ seem like a perfect fit.

These innovative boxes provide cutting edge mailing options that ensure safe transportation and delivery of precious and valuable cargo. The boxes contain expanded polyethylene (EPE) foam dots strategically placed inside to apply distributed pressure on the outside of the item, holding it securely in place while in transit and eliminating the need for additional packaging materials.

Priority Mail Flat Rate Precious Cargo Boxes come in three sizes, ready to go for the holiday sending season.

For now, you can only purchase Precious Cargo Boxes online at the Postal Store on USPS.COM, under Shipping Supplies. They start at $6.99 for the small box, $12.99 for the medium box, and $15.99 for the large box.

Inner Dimensions Outer Dimensions

(Inches) (Inches)

Small Flat Rate (Cell Phone box) - SFRBPC3 73/8 x 41/2 x 13/8 73/4 X 51/4 x 11/2

Medium Flat Rate (Tablet box) - FRB1PC2 113/4 x 111/4 x 2 5/8 121/2 x 113/8 x 23/4

Large Flat Rate (Laptop box) - LFRBPC1 17 x 135/8 x 3 1715/16 x 14 x 31/8

Description

By Tony Kuchta, EMCM, General Manager, Lineage

People often ask me for a “purchase price” for mailing equipment. There is a better solution – lease it. First let me give you some history on leasing: The concept of leasing or “paying for the use of something without owning it”, dates back thousands of years to ancient Babylon. In the United States, the leasing of commercial transportation vehicles, primarily railcars and engines, helped spur the spread of the Industrial Revolution (local railroad companies come to mind like BNSF). In 1954, U.S. Leasing was formed for the expressed purpose of buying equipment from vendors and allowing that equipment to be used by the vendor’s customers/end users.

As the first “third party” leasing company, U.S. Leasing took its cue from the captive financing arms of the major industrial firms in the nation. The term; third party leasing company, refers to a company being a separate entity from the manufacturer of the product verses being a captive leasing company. A captive leasing company is owned by the same company that produces the equipment that you want to use. A captive lease company will offer some services a third party will not, and allows for significant flexibility during and at the end of the lease term. In the communication and office equipment marketplace, IBM and Xerox took the lead in offering their customer’s use of their ever-changing equipment and technology for some periodic payment which could be adjusted to accommodate upgrading that equipment in the near future.

The same “ever-changing” environment can be seen with the USPS by the changes in rates, structures, and services that are offered in Postage meter hardware and software. In today’s marketplace numbers range from 90% to 95% of all Postage Machines in use are leased. This is not only due to changes in the mailing rules and regulations, it is also because the postage meter itself must be rented per the USPS from a vendor and cannot be “owned”.

So why buy the car when you can only rent the engine? Leasing is NOT a means of financing your purchase. If you want to own something, and technology or regulations don’t make it have a limited life span by all means go ahead and buy it. If you want to use it, and have no pride in ownership, and changes or rules can make it obsolete soon (under 3 to 5 years) then consider leasing it. Unlike the automobile industry, there is usually no penalty for usage or non-usage. There is no “extra” mail processing fee on a postage meter, like there is in extra mileage fee on a car lease, or there is no “zero mail ran” fee like there is when you don’t use a gift card in a certain time frame.

Buying an item usually involves evaluation of return on investment ($ that could be spent other places), depreciation, amortization etc. Leasing is a simple comparison of what is the cost by leasing vs. the cost (usually machine + labor + benefit) without using the product/s. Since payments are fixed at today’s prices for the entire lease term, a company can guard against the increasing cost of goods or services due to inflation. Leasing also allows the customer to accurately project costs for budgeting purposes. Borrowing funds from a bank to purchase equipment is sometimes quoted at a lower rate than leasing. However, disadvantages of that are a hefty down payment, settlement or borrowing fee. Combine that with depletion of credit lines and your overall cost will significantly increase.

I have listed a few generic points to help you make an educated decision on whether or not leasing mailing equipment is right for you (NOT TAX ADVISE).

The Tax Reform Act of 1986 eliminated the Investment Tax Credit which allowed purchasers to reduce tax obligations. This opened the door to leasing which COULD BE a tax deductible operating expense. Other changes such as the Alternative Minimum Tax and the Mid-Quarter Convention penalizes the depreciation of purchased equipment. Asset depreciation scheduled often extend beyond the useful life of the equipment, causing additional losses in tax credit. It is on the books – but no longer used.

A Capital Lease treats the asset as if it were purchased.

A corresponding liability, equal to the present value of the lease payments is also recorded each month. The asset is amortized in accordance with the lessee’s normal depreciation procedure.

A Lease having none of these characteristics is an Operating Lease

This is the simplest type of lease to account for, since the Lessee only has to expense the rentals. If service or non-purchasable items are part of the lease agreement the lease could be classified as an operating lease.

All-inclusive programs

All related services such as postage meter rental, postage downloads (some vendors) maintenance and rate changes are added on to the lease payment, and fixed for the entire lease term any additional lease renewal terms. Your organization can save a substantial amount of money by avoiding inflation, age-of-equipment increases, and increased meter usage charges. Companies can also recognize additional savings by reducing the number of checks sent out, as well as cutting down on accounting costs.

So, next time you are looking to acquire equipment make sure you define if you want to own it – or use it. Is there pride in

ownership of a mailing machine no, – a Harley Davidson Motorcycle, YES!

Message from Connie Compton, EMCM, MDP, MDC, MCOM

The September 2016 PostScript Trivia Challenge winner was Ute M. Franklin, CMDSM from Rice University in Houston, Texas. Answers were: 1. James Mason, appointed February 22, 1867 in Sunny Side, Arkansas - Who was the earliest known African-American

Postmaster and what year and where was this Postmaster appointed? 2. Bill Hopson and his last flight was August 27, 1927 - What was the name of the Airmail Pilot who was hired on April 14,

1920? When was his last flight for the Department? 3. Dark Green - What was the color of Mail Collection boxes in 1909?

Ute indicated how MSMA has impacted her career and she said, “I have been a member of MSMA since 1999. With the support of MSMA and other similar organizations, I can keep current with the ever-changing USPS rules and regulations. A great support network, conferences and webinars help me stay abreast. I am also thankful for my CMDSM certification. I am always striving to be the best in my job and MSMA has helped me succeed!”

Congratulations Ute and thank you for participating in the Trivia Challenge. A gift card is on its way.

Trivia questions for the December 2016 PostScript must be answered correctly…and you can only win once. First person that emails the correct answer, will win a gift card.

Email your answers to Connie Compton, [email protected] and add to your email Subject Line “From the Editor – Mail Trivia.”

Include your name, title and a few words on “how MSMA has impacted your career.” Please include the mailing address you wish the gift card to be delivered. Questions are:

1. The first contract of mail collection by automobile was for service in what city and what year? 2. What year was Certified Mail introduced? 3. In what year was the title “post-office inspector” established and what title did it replace?

From the Editor….

MSMA BOARD of DIRECTORS 2016-2017 National President Barbara Fahy, MDC [email protected]

VP Education Mark Hale, CMDSM, CMDSS, MDC [email protected]

Regional Director LaChelle Bynum, MDC [email protected]

Immediate Past President Ron Goglia, CMDSM [email protected]

Director of Marketing Paul Kovlakas, MDC [email protected]

Regional Director Darlene Handy, CMDSM, MDC [email protected]

Executive Vice President Paul Dreifuss, CMDSM, MDC [email protected]

Director of Communication Connie Compton, MDC, MCOM [email protected]

Director at Large Debra Visco, CMDSM, CMDSS, MDC [email protected]

Treasurer Jud Thurman, CMDSM, CMDSS, MDC [email protected]

VP Chapter Operations Thad Weikal, CMDSM, MDC [email protected]

Director at Large Floyd Creecy, CMDSM, MDC [email protected]

VP Membership Dalynnda Odom, CMDSM, MDC [email protected]

Director Certification Services Betsy Shortell, CMDSM, MDC [email protected]

PostScript PostScript is published quarterly by Mail Systems Management Association. It serves to educate members about activities, issues and events within our organization.

Editor ..................Connie Compton, MDC, MCOM National President ................. Barbara Fahy, MDC

P.O. Box 1145

North Riverside, IL 60546-1145

Visit the MSMA Website: msmanational.org