• on Apr 13th, 2015 in OIG | 4 comments

    If you’ve rummaged around our website lately, you may have noticed a new tab on our home page entitled Audit Asks. “What is Audit Asks?” you might ask. It’s where you can read about some of our upcoming audits in their early stages and respond to questions that can help us develop more complete and useful audit reports.

    Audit Asks is actually an update of our audit project pages, initially launched about 6 years ago to get feedback from our readers. With the new Audit Asks format, we have added some eye-catching graphics and changed our writing style to prompt more feedback.

    Engaging stakeholders is important to us, as this blog attests. Your comments provide valuable insights and can help guide the direction of our audits, as well as our findings. This is also your opportunity to send links to documents you think will be useful during the audit planning phase. During this phase the audit team learns about the subject, collects a broad range of data, contacts key experts and stakeholders, and develops the specific objectives of the audit. This is when we decide on the breadth and depth of the topic of the report.

    Right now, for example, you can let us know about your experience with reduced window hours at select post offices and whether you think this will generate the intended savings. Or you can tell us what you think about voting by mail or your views on the new mobile delivery devices used to track packages and communicate with local post offices.

    Are you following us on Twitter and Facebook? It’s a great way to be informed when the audit announcements are posted in Audit Asks.

    And while we’re asking, are there specific issues you believe merit a U.S. Postal Service Office of Inspector General audit? We conduct objective, independent audits of Postal Service programs and operations to prevent and detect fraud, waste, and misconduct, and to promote economy, efficiency, and effectiveness. If you have an idea for an audit along any of these lines, we would love to hear from you. 

  • on Apr 3rd, 2015 in Strategy & Public Policy | 0 comments

    In the sage words of Yogi Berra, “If you don’t know where you’re going, you will wind up somewhere else.” So, where does the U.S. Postal Service want to go? Well, by 2016 it hopes to end up a lot closer to solvency. And to get there, it developed the Delivering Results, Innovation, Value and Efficiency (DRIVE) management process.

    DRIVE is a portfolio of strategic initiatives the Postal Service is implementing to meet ambitious performance goals and close its $20 billion financial gap. Each initiative is made of specific projects, goals, and milestones all leading toward a broad, overarching goal. The Postal Service began its DRIVE initiatives in 2011.

    So, how are the DRIVE initiatives working out? Well, the 19 initiatives are in various stages of development, funding, and implementation, and the Postal Service has about $2 billion in available capital to support all of them. The Postal Service said it generated $4.9 billion in new sales opportunities and cut $868 million in costs through DRIVE. It also reported that it has revitalized its Priority Mail package service and reduced its facilities footprint by more than 3 million feet.

    We’ve been keeping an eye on this process and have completed three DRIVE audits. Our reports looked at overall management of DRIVE (DP-AR-13-008), Initiative 6 (DP-AR-14-001), which aims to improve employee availability, and Initiative 42 (DP-AR-14-005), which focused on marketing new and existing services.

    Our first audit found DRIVE program management compares favorably to best-in-class program management practices – but there are opportunities for improvement. The other two reports reviewed specific initiatives and urged improvements, such as setting more aggressive goals, promoting accountability, and accurately measuring achievement. For example, one of the goals of Initiative 42 was to increase shipping and mail revenue by $5.2 billion in fiscal year 2014. As of May 2014, the Postal Service reported reaching $3.4 billion of that goal; however, we found the Postal Service does not have the capability to measure goals against recorded sales. A separate DRIVE initiative is intended to improve this ability to accurately measure goals.

    We are looking at other DRIVE initiatives, as well. But we would like to hear your thoughts on the value of this management tool.

    Do you believe the initiatives discussed here are improving the Postal Service?

    What DRIVE initiatives would you like to see the Postal Service pursue?

    Do you think these initiatives are the best way for the Postal Service to reach solvency? If not, what should it do instead? 

  • on Mar 16th, 2015 in Mail Processing & Transportation | 1 comment

    This is the second blog in our two-part series on sustainability. Last week’s blog, Green Scene, focused on recycling efforts.

    When do growth and reduction go hand-in-hand? When the world’s posts are trying to grow their business but reduce their carbon footprint.

    The 25 national postal operators that make up the International Post Corporation (IPC) have made great strides toward achieving their carbon dioxide emission reduction goals, but they hit a bump in 2013 and 2014. A coalition of the world’s industrialized posts, the IPC is aiming to cut carbon dioxide emissions by 20 percent by 2020. Half of the IPC members have already reached the target. But last year marked the first increase in emissions from the use of heating and transport fuel for the group as a whole since the IPC environmental measurement program began in 2009.

    One reason for the backsliding is actually a good problem. The global growth in e-commerce, which has boosted the posts’ number of parcel deliveries, is making emission reduction targets more challenging. Especially harsh winters in some countries and a big increase in size in one of the operator’s delivery networks have also contributed to the posts’ higher fuel consumption.

    IPC officials are stressing the importance of switching to renewable energy, either self-generated or purchased, wherever possible.

    The U.S. Postal Service is one of the 25 posts taking part in the IPC Environmental Measurement and Monitoring Program. It’s also one of the posts that saw its transportation fuel use increase. In its 2014 Sustainability Report, the Postal Service notes that “an aging [postal vehicle] fleet and the need to service more delivery points are pushing our fuel demand upward.” Still, the Postal Service must continue its efforts to manage its fuel resources as efficiently as possible, for both its own fleet and its contracting vehicles. (Our 2014 audit report offered recommendations on encouraging fuel efficient practices in highway contract routes.) This should get easier in the next couple of years as the Postal Service replaces its long-life vehicle fleet. This summer the Postal Service will select vendors to build new vehicle prototypes and it will award a contract of up to $6.3 billion over several years beginning in 2017.

    With continued parcel growth expected, how can the world’s posts meet the demands of customers while reducing their carbon footprints? What technologies might benefit the Postal Service specifically? 

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