Upcoming Audit Work

Background

The U.S. Postal Service’s mission is to provide timely, reliable, secure, and affordable mail and package delivery to more than 160 million residential and business addresses across the country. The U.S. Postal Service Office of Inspector General (OIG) reviews delivery operations at facilities across the country and provides management with timely feedback in furtherance of this mission. 

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the Chandler Station in North Hollywood, CA (Project Number 25-124-1). The Chandler Station is in the California 3 District of the WestPac Area and serves about 58,983 people in ZIP Codes 91601 and 91602, which are considered predominantly urban communities. The unit also services ZIP Code 91603 for PO Box routes.

Our objective is to assess the effectiveness of the Postal Service's process to identify, manage, and address its deferred maintenance.

The Postal Service owns over 8,800 and leases over 25,000 properties ranging in size from 273 square feet to 32 acres. Currently, the Postal Service is in the process of optimizing their infrastructure and updating facilities. If you are aware of any outstanding maintenance issues, repairs, or have any information that might be beneficial, feel free to contact us.

The reclassified financial statements are the financial statements prepared by federal entities that connect the entities general-purpose financial statements to the government-wide financial report. The objective of this audit is to express an opinion as to whether the U. S. Postal Service's Reclassified Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position (Note 36) present fairly, in all material respects, the financial position and results of operations of the Postal Service as of and for the fiscal year ending September 30, 2025, in conformity with accounting principles generally accepted in the U.S. and pursuant to the requirements prescribed by the U.S. Department of Treasury and the Office of Management and Budget.

As part of its Delivering for America plan, the Postal Service is redesigning its network of nearly 19,000 delivery units to reduce inefficient operations and costs. The Postal Service has identified key markets where it can aggregate several delivery units into fewer, larger Sorting and Delivery Centers (S&DCs) that are centrally located. As of November 2024, the Postal Service rolled out 83 S&DCs that encompassed 9,497 routes and expects to develop 36 more in 2025 that would encompass 3,313 routes. Our objective is to determine if the Postal Service evaluated and created routes accurately at the S&DCs. If not, estimate the cost impacts.

As part of their Delivering for America plan, the Postal Service is investing $40 billion for network modernization, based around Regional Processing and Distribution Centers (RPDCs), Local Processing Centers (LPCs), and Sorting and Distribution Centers (SDCs). Overall, the Postal Service will establish 60 RPDCs to consolidate mail processing operations and create fewer points in the processing and transportation networks. Each RPDC processes mail and packages originating in its service area and has one or more LPCs associated with it. This audit will focus on the network transformation and consolidation of operations at Indianapolis, IN RPDC.