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January 27, 2010

SOX Compliance Goes Postal on New Mexico Papers

News travels fast about Sarbanes-Oxley compliance—unless, apparently, you’re in Clovis, New Mexico.

The Clovis News Journal—paper of record for Clovis, population 37,200—announced last week that it could no longer deliver two newspapers to its subscribers around eastern New Mexico on the day of publication. The reason? Sarbanes-Oxley.

“Due to the federal Sarbanes-Oxley Act and its required implementation locally by the U.S. Postal Service, the Portales and Clovis post offices no longer can provide same-day mailed service of the Portales News-Tribune and the Clovis News Journal,” read a Jan. 19 post on the News Journal Website from circulation director Mike Grigg.

When reached by phone—because, really, a story like this is too good not to investigate—Grigg recounted the full tale. Previously, the News-Journal delivered papers to the local post offices by 4 a.m. for same-day delivery to subscribers via mail carrier. At the end of December, however, the local post offices informed Grigg that since those offices are not “24-hour business mail entry units,” then SOX compliance rules dictate that the offices cannot accept the newspaper mailing until 10 a.m. And since the local mail carriers head out to their delivery routes before then, the News-Journal would not reach subscribers until the following day.

Saturday and Sunday papers aren’t mailed until Tuesday, Griggs adds. The delays affect roughly 410 subscribers.

The Postal Accountability and Enhancement Act of 2006 does require the U.S. Postal Service to comply with parts of SOX, including the internal control report required under Section 404, beginning with the annual report for fiscal 2010. The government’s fiscal year began last October, so the Postal Service would indeed be in the midst of Section 404 compliance right about now.

Grigg told Compliance Week that he believes the issue is the result of the post office “misinterpreting the SOX requirements.” Grigg said he’s been in touch with the regional postal headquarters in Albuquerque, N.M., and “is hoping to get the problem fixed.”

Jerry Carlton, a supervisor in the Clovis post office declined to comment and referred Compliance Week to the Albuquerque district post office. A call to that office was not returned.

However, Robert Bokor, manager of mail classification in the Postal Service Pricing and Classification Service Center in New York, tells Compliance Week that the problem “isn’t a SOX issue at all.”

“I have no idea how anyone got the idea that it was, but it has nothing to do with SOX,” Bokor said in a phone interview. He figures the issue is a “misunderstanding” between the local paper and the local post office, but that both parties are “working to straighten it out.”

And for anyone from Clovis who hasn’t heard the news yet: the Eastern New Mexico Zias beat Midwestern State the other night, 70-56. Just thought you’d want to know.

Posted by: maguilar @ 12:43 pm

Filed under: Uncategorized

5 »

  1. Didn’t SOX cause ALL our Social, Political, Economic and Environmental problems including Global Warming, Poverty and Climate Change? Just a thought…

    Comment by Bob Benoit — January 29, 2010 @ 3:35 pm

  2. Obviously the newspaper delivery issue is a misunderstanding but it exemplifies the attitude that SOX compliance dictates business practices. Of course this is false but the attitude could be the result of a poorly executed compliance program.

    Comment by Julie Harrer — January 29, 2010 @ 5:33 pm

  3. Perhaps if SOX weren’t so constantly tedious, I’d be more inclined to side with the idea that this is merely a compliance “misunderstanding” or “misinterpretation” of the rules.

    Comment by Jr Deputy Accountant — February 22, 2010 @ 3:46 am

  4. Are they talking about the white sox or the red sox? Personally I’m pulling for the white sox. But hey, it’s just a game.

    Comment by Don — February 22, 2010 @ 2:46 pm

  5. The P.O.’s involved are clearly misinformed! They just don’t want to have a “delayed postage statement.” Due to SOX, BMEU’s CANNOT have any delayed statements (and YES….ALL THIS IS BEING DONE UNDER THE GUISE OF “SOX COMPLIANCE”!!!) FURTHERMORE, SOX is costing the USPS MORE money and delaying the processing of mail due to all of the ridiculous double work having to be done. Why don’t the people responsible for implementing it come and watch what they are trying to enforce. Have they ever touched any mail??? Do they know the process? NO….otherwise they would then see how stupid some of their “rules” are.

    Comment by USPS clerk — February 27, 2010 @ 12:37 am

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