on Jul 12th, 2010
in Finances: Cost & Revenue
| 5 comments
The Sarbanes-Oxley (SOX) Act of 2002 grew out of large corporate financial scandals. SOX aims to improve corporate governance and enhance the accuracy of financial reporting. While compliance is required by the Postal Act of 2006, the Postal Service believes it is a great way to make its business stronger. SOX helps target areas of improvement and strengthen financial accounting, making the Postal Service a better business. As a result, the Postal Service designed and implemented new business mail acceptance procedures and requirements in an effort to comply with SOX. The initiative includes new check-in, verification, recording, placarding, and induction procedures for processing business mail; daily certifications of SOX compliance by business mail entry units; an updated mail acceptance handbook; and enhanced customer use of the PostalOne! system. Although the Postal Service hopes to strengthen its financial integrity and reporting accountability and reinforce the public’s trust in the Postal Service, there is widespread confusion at postal facilities about SOX compliance and how it changes (or does not change) mail acceptance and verification policies. Mailers and service providers often argue that postal facilities are misinterpreting SOX compliance policies, describing problems such held-up mailings, inconsistent acceptance processes, insufficient education and training, and inconsistent approvals from postal personnel. What do you think about the Postal Service’s new business mail acceptance procedures? We’d like to hear from you. We are also currently conducting an audit evaluating whether the Postal Service is effectively implementing the requirements of SOX. Click here for more information or to provide comments on the audit. This topic is hosted by the Office of Audit Field Financial – Central team.
on Jan 25th, 2010
in Finances: Cost & Revenue
| 124 comments
How much does it cost to develop, print, ship, inventory, secure, sell, and cancel a stamp used to mail a letter? What about the stamps that are never sold? The Postal Service destroys billions of stamps each year because they are obsolete. In FY 2008, the Postal Service printed 37 billion stamps, which cost $78 million to print. In that same year, they destroyed old stamps, some of which were printed more than 10 years ago, that were valued at approximately $2.8 billion. Those stamps were printed, shipped, counted multiple times in various inventories, and finally shipped back for destruction under secure conditions. How much does this cost and does the Postal Service benefit from the expense?
Are there better alternatives to stamps? Business customers often rent postage meters and use permits for bulk mail. Now, the advent of online postage vendors has given individual customers an alternative to stamps. Customers that use online postage can customize their postage and incorporate approved language or pictures.
Not everyone has access to a computer. What can we do for people who do not have access to online postage or who simply do not want to use online postage? One answer may be simplifying the Postal Service’s current stamp inventory. What if all postage stamps were “Forever Stamps”? Stamps would never become obsolete and have to be destroyed, and production costs would never eat up their contribution to overhead. After a rate increase — now generally an annual event rather than every 3 or 4 years — there would be no 1-cent or 2-cent stamp shortages or rush to produce the next generation of denominated stamps. What about stamp collectors? Would philatelic sales suffer if the Postal Service reduced the denominations it offered? Commemorative Forever Stamps could be issued in limited quantities to satisfy collectors. Some commemorative stamps could be sold locally, while others could only be ordered and shipped direct from a central location. Forever Stamps that marked holidays or other special events such as birthdays would be very useful for people who wanted to stock up. And what could be more appropriate for wedding invitations than “Forever Love” stamps? Do you know of a better method of postage payment, convenient and available to everybody that could be implemented? Tell us what you think. This topic is hosted by the OIG's Field Financial East directorate. Topic was revised to indicate that 37 billion stamps not $37 billion worth of stamps were printed in 2008.
on Dec 7th, 2009
in Finances: Cost & Revenue
| 19 comments
If the Postal Service is to recover from its current financial problems, it needs revenue. In addition to identifying additional sources of revenue, it must protect the revenue it is already due whether it comes in from the post office window, meters, online postage accounts, or from Permit accounts for business mailers. Ensuring that the Postal Service collects all of its revenue will help secure the agency’s position as a trusted service provider for years to come.
That’s where you come in. What do you think are the greatest revenue leakage risks the Postal Service faces, and what are the best ways to protect that revenue? Now is the time to share your thoughts and help the agency.
This topic is hosted by the OIG's Sales & Service directorate.
This site provides a forum to discuss different aspects of the United States Postal Service and how it can be improved. We encourage you to share your comments, ideas, and concerns.
This is a moderated site—we will review all comments before posting them. We expect that participants will treat each other with respect. We will not post comments that contain vulgar language, personal attacks of any kind, or offensive terms that target specific individuals or groups. We will not post comments that are clearly off-topic or that promote services or products. Comments that make unsupported accusations will also not be posted.
We ask that reporters send questions to the USPS OIG Media Office through their normal channels and refrain from submitting questions here as comments. We will not post questions from reporters.
We recognize that the Web is a 24/7 medium, and your comments are welcome at any time. Given the need to manage Federal resources effectively, however, we will review comments and post them from 9:00 a.m—5:00 p.m Eastern Time, Monday through Friday. We will read and post comments submitted after hours, on weekends, or on holidays as early as possible the next business day.
To protect your own privacy, and the privacy of others, please do not include personal information or personally identifiable information such as names, addresses, phone numbers or e-mail addresses in the body of your comment.
Except when specifically noted, any views or opinions expressed on this forum (or any other forums available via an RSS feed) are those of the individual bloggers. The views and posted comments do not necessarily reflect those of the U.S. Postal Service Office of Inspector General, or the Federal government.
Thank you for taking the time to read this comment policy and disclaimer. We plan to blog weekly on as many emerging new media topics as possible. We encourage your participation in our discussion and look forward to an active exchange of ideas.