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Audit Reports

Sep
01
2015
Report Number:
NO-MA-15-005
Report Type:
Audit Reports
Category: Transportation / Vehicles

Management Alert - Leased Trailer Damage Payments

This management alert presents our concerns with invalidated and unsupported leased trailer damage claim payments to suppliers (Project Number 15XG034NO000). We also found that the U.S. Postal Service needs to avoid or recover associated daily lease payments for trailers that are out of service for more than 10 days for repair. Damaged trailer claims have averaged about $2.1 million per year nationwide over the last 2 fiscal years. These issues came to our attention during our ongoing project, Use of Leased Trailers – Western Area (Project Number 14XG025NO002).

Report Recommendations

# Recommendation Status Value Management Response OIG Response USPS Proposed Resolution
1

R - 1 -- Review and update damage claims policy and procedures.

Closed $0 Agree
2

R - 2 -- Ensure all policies and procedures for damage claims are being enforced before payments are issued.

Closed $0 Agree
3

R - 3 -- Ensure suppliers provide all supporting documentation for damage claims as required in the contract terms and conditions on leased trailers and that represent a single damage incident caused by Postal Service negligence.

Closed $0 Agree
4

R - 4 -- Identify any improper damage claim payments already made and initiate recovery of those payments where practical.

Closed $0 Agree
5

R - 5 -- Ensure all responsible local Postal Service personnel follow terms and conditions to timely request substitute trailers or pay adjustments if repairs go beyond 10 days, and ensure they submit payment adjustments to recoup the daily trailer lease rate beyond the allotted 10 day period.

Closed $0 Agree