U.S. Postal Service management at the Potsdam, NY, Main Office reported four retail floor stock shortages between June 30, 2016, and March 3, 2017. The unit reported stock shortages on June 30, 2016, for $893.06; September 1, 2016, for $58.85; October 26, 2016, for $57.45; and March 3, 2017, for $734.06. We conducted this audit as a result of a referral from the U.S. Postal Service Office of Inspector General’s Office of Investigations.
Retail floor stock consists of stamps sold on the retail floor. The unit’s reserve stock custodian issues stamp stock directly to the retail floor stock. No individual sales and service associate (SSA) is accountable for this stock. However, each SSA making sales from this credit is responsible for ensuring accurate reporting of the sales, adequate protection, and security of the retail floor stock.
The objective of this audit is to determine whether internal controls were in place and effective to reduce the risk of retail floor stock shortages at the Potsdam, NY, Main Office.
What the OIG Found
Internal controls over retail floor stock were in place and effective during our site visit at Potsdam Main Office. We analyzed all counts from April 1, 2016, through April 19, 2017, and did not identify clear patterns or a cause for the shortages. Unit personnel followed established policies and procedures for the issuance, distribution, and security of the retail floor stamp stock. Specifically, the unit:
- Documented stock transfers from unit reserve to the retail floor stock.
- Limited accessibility of the retail floor stock to SSAs assigned to retail operations during lobby window hours.
- Secured retail floor stock in locked drawers at the retail counter during window lobby hours and in a safe compartment inside the vault after window lobby hours.
- Conducted examinations of retail floor stamp stock inventory quarterly as required.
- Maintained retail floor stock inventory made available to SSAs for daily customer transactions, within allowable limits during our scope period.
What the OIG Recommended
Because controls were in place and effective, we are not making a recommendation.