on Sep 19th, 2011
in Finances: Cost & Revenue
| 12 comments
Let’s take a simplistic view of the Postal Service by dividing it into two groups: Operations and Finance. Operations’ main concern is to make sure mail is delivered and other services are rendered to satisfy customers’ needs. On the other hand, Finance’s responsibility is to ensure that all the information stemming from the Operations side is captured for billing/payment and financial statement reporting purposes. After all, the Postal Service needs to be paid for their good work, doesn’t it? Based on audits of prior years’ financial statements, it seems Operations personnel were not always aware what financial impact their action or inaction had on the Postal Service when it came to the big picture. For example, Operations personnel might process the mail and deliver it to the customers’ satisfaction. However, internal supporting documentation and data might not have been updated in a timely manner. When personnel do not process documentation for services rendered according to Postal Service policy, the Postal Service risks losing money. Over the years, management has taken steps to provide Operations and Finance personnel with the bigger picture. They have advised the Operations side of their impact on the Postal Service’s financials and the repercussions of not completing processes correctly. The question is do you believe this endeavor has been successful? Let us know what you think in the comments section below. This blog is hosted by the OIG's Financial Reporting Directorate.
on Feb 14th, 2011
in Finances: Cost & Revenue
| 12 comments
[dropcap style="font-size: 60px; color: #9b9b9b;"] T [/dropcap]he Postal Accountability and Enhancement Act of 2006 requires the Postal Service to comply with specific sections of the Sarbanes Oxley Act of 2002 (SOX). Among other financial reporting requirements, SOX mandates internal control compliance – making sure that financial transactions are reasonably and fairly presented in the accounting records - and places the responsibility on postal management. A recent district-wide audit of 13 postal retail units found 80 internal control compliance issues related to stamp accountabilities, disbursements, and financial accounting and reporting. The cause for most of these issues was attributed to a lack of adequate training, the insufficient financial background of some unit managers, why they were placed in the position without receiving the necessary financial training, and an absence of oversight by the managers and supervisors responsible for implementing financial internal controls. Why do these managers lack the proper training and background to adequately supervise financial operations? One possibility is the amount of management turnover at retail units. The management turnover rate was high at some retail sites visited during the audit. For example, one retail unit had three different acting station managers in the last 18 months. Often, new or acting managers and supervisors come from different segments of the Postal Service and are placed in positions which require them to supervise financial operations. Is there a benefit for bringing in someone from a different segment to oversee the operations of a retail unit? How should they be trained? Please give your comments. The topic is hosted by the Office of Audit Field Financial – West team.
on Dec 13th, 2010
in Finances: Cost & Revenue
| 35 comments
The Postal Service does not receive tax dollars to sustain its operations, but relies on accurate postage payments for support. While the vast majority of the Postal Service’s customers pay the full cost of mailing, revenue loss, otherwise known as revenue leakage, can occur when individual or business customers don’t pay the appropriate postage for their mailings. Postage may be paid in a number of ways. Customers can buy stamps at a customer service window and apply them to letters and packages as they need them, which can sometimes lead to underpayment of postage. Business customers can pay through meter or permit accounts. Business Mail Entry Units make sure that the correct postage has been affixed or claimed when discounts are claimed. Online sellers can use PC Postage and Click-N-Ship® postage with free carrier pick-up, eliminating the hassle of taking their goods to the Post Office to be weighed and shipped. Of course, this could lead to mistakes in mailings sent out under the wrong, and cheaper, mailing class for which the goods do not apply, such as mailing a set of skis as media mail. Because of its dire financial situation, it’s now more important than ever for the Postal Service to protect the revenue it is due whether it comes in from the post office window, meters, online postage accounts, or from permit accounts. Now is the time to share your thoughts and help the agency get back in the black. What are the best ways to protect Postal Service revenue? Enter your comments below. The Office of Audit Sales and Service team is hosting this topic.
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