Mailings that meet minimum volume and preparation requirements to qualify for reduced postage rates are called business mail. Properly accepting business mailings is critical for the Postal Service since it accounted for $25 billion in revenue in 2010. Several types of Postal Service facilities accept business mail. Business Mail Entry Units have acceptance clerks with specialized training and systems for accepting business mail. Local Post Offices can also accept business mail.
Most revenue for bulk business mailings is recorded using a system called PostalOne!. PostalOne! has built-in controls that assist clerks in properly accepting the mail. However, approximately 11,000 units that recorded more than $114 million in Permit Imprint and Periodicals transactions in FY 2010 have been forced to operate without PostalOne!. Regardless of the level of training or type of system used, each unit must accept, verify, and collect postage for mail according to required policies and procedures, a process for which it is crucial to have PostalOne!. If classified and accepted improperly the Postal Service risks accepting improperly prepared mail or mail paid at an improper rate.
For the past several years, the Postal Service has faced significant revenue losses due in part to decreased mail volume and increased competition from other media alternatives. The Postal Service must continue to explore opportunities to improve processes and eliminate redundancies in their system. Because business mail acceptance generates a significant amount of revenue, the Postal Service may want to reevaluate the number of entry points for accepting business mailings, including the 11,000 units not on PostalOne!.
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The topic is hosted by the Office of Audit Field Financial – East team.