• on Jan 24th, 2011 in Mail Processing & Transportation | 8 comments
    The Postal Service established International Service Centers (ISCs) in 1996 to become more competitive in the international mail market. ISCs distribute and dispatch both incoming and outgoing international mail. The ISC network has facilities located in five major cities: New York, Miami, Chicago, Los Angeles, and San Francisco. The Postal Service hoped that ISCs would improve service and provide the structure needed to support new products and increase revenue. However, International Mail volume has not increased as projected by the ISC marketing and sales plan. During the period FY 2007 to FY 2010, International mail volume declined by approximately 29 percent (from 858 million to 609 million mailpieces). Although the Postal Service reduced expenses by nearly $6 billion in fiscal year (FY) 2009 and by almost $789 million during the first three quarters of FY 2010, the reductions have not been sufficient to offset declines in mail volume revenue. Consequently, the Postal Service is reviewing its mail processing and retail networks to remove duplication and make them more efficient to reflect current mail volumes. In light of international mail volume declines and the Postal Service’s current financial condition, does the Postal Service still need a separate network to handle international mail? Are there other options the Postal Service could pursue to increase International mail volumes and revenue? Please share your comment(s) on how to make the ISC network more profitable, effective, efficient and economical. This topic is hosted by the OIG’s Network Processing Audit Team.
  • on Jan 10th, 2011 in Finances: Cost & Revenue | 6 comments
    Postage Meters are printing machines or systems for home or office that print postage directly onto mailpieces, or onto an approved label, for mailing. Customers can request refunds on meter mail for a variety of reasons. For example, customers can request refunds when meter mail postage is printed for the wrong denomination, mail is damaged before it is delivered to the Postal Service, or postage is printed but not mailed. For customers to receive a refund, they must take their unused meter mail postage along with the Postal Service Form 3533, (Application for Refund of Fees, Products and Withdrawal of Customer Accounts),to their local post office to request the refund. Once postal employees receive a refund request, they process the request manually by counting each piece of metered postage in question to verify the refund amount. The Postal Service charges a 10 percent fee (up to $350) for each refund processed. If the 10 percent fee is greater than $350, the Postal Service charges the customer a flat fee of $35 an hour to process the refund. Once the local postal employee verifies the refund amount, the post office either issues a no-fee money order (if the refund is less than $500) or forwards the supporting documentation to a disbursement center for refund payment. In Fiscal Year 2010, the Postal Service refunded customers more than $21 million for spoiled and unused meter mail postage. If all associated mailpieces were metered at the First-ClassTM 44-cent stamp rate that would mean postal employees manually counted 47.7 million mailpieces to verify meter mail refunds. 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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