Upcoming Audit Work

At the end of Fiscal Year (FY) 2026 Quarter 2, the Postal Service held $4.5 billion in available cash, resulting in the Postal Service disclosing that it has sufficient liquidity to remain operational through May 2027. This is not the first time the Postal Service faced low liquidity; cash was also low in FY 2011 through FY 2013 and during FY 2019. This white paper will examine its current cash position and cash flows, as well as the cash flows and conditions in those past periods of low liquidity. We also plan to explore cash management strategies pursued in the past and today.

Following the 2024 audit—which found that the Postal Service was not tracking contractor accidents and lacked visibility into subcontractors, who were not always screened—there has been a significant push for transparency and stricter oversight. In efforts to support and maintain safety at Postal Service facilities and on contract service routes, there are multiple regulations, policies, and procedures to assist Postal Service personnel and contractors. As such, our objective is to determine if the Postal Service is effectively overseeing contract trucking suppliers and related subcontractors, to ensure compliance with policies and regulations.

This audit is in response to a congressional request to identify causes of mail delays. This audit will examine how Delivering for America network changes such as transportation optimization and processing consolidations affect service performance in South Dakota. South Dakota mail may often travel long distances out of state for processing. Transportation changes, planned conversions to local processing centers, and revised service standards further influence delivery times, which can range from two to seven days. Rural areas may be especially impacted. 

The Delivering for America (DFA) plan, released in 2021, outlines the Postal Service’s 10-year strategy to improve service and achieve financial sustainability. In 2024, DFA 2.0 provided an updated blueprint for its path forward. Since the release of the DFA plan, the Office of Inspector General has integrated independent and objective reviews of its implementation into our work. This is the fourth in our series of DFA oversight reports. Our objective is to evaluate how the Postal Service’s Delivering for America (DFA) plan has evolved since implementation.  

The Postal Service faces persistent difficulties in both meeting its service performance targets and achieving financial sustainability. These challenges stem from a complex mix of internal and external factors. The internal environment is marked by ongoing network restructuring, aging infrastructure and equipment, labor issues, and struggles with organizational culture and management effectiveness. Externally, it must contend with declining mail volume, a surge in e-commerce and package volumes, regulatory constraints, and policy changes.

Our audit will evaluate the operational and financial performance of selected postal districts, specifically examining how operational culture impacts key performance indicators.