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Audit Reports

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Feb
10
2016
Report Number:
FT-AR-16-003
Report Type:
Audit Reports
Category: Finance

Officers' Travel and Representation Expenses for Fiscal Year 2015

Background 

The Postal Reorganization Act of 1970, as amended, requires annual audits of the U.S. Postal Service’s financial statements. As part of these audits, the U.S. Postal Service Board of Governors adopted policies and procedures that require annual audits of officers’ travel and representation expenses.

Postal Service officers shape the strategic direction of the agency by setting goals, targets, and indicators within the framework established by the Board of Governors. The Postal Service has classified these positions as Postal Career Executive Service, and they include the Postmaster General, deputy postmaster general, and all vice presidents. The Board of Governors has authorized 50 officer positions.

Our audit objective was to determine whether the travel and representation expenses Postal Service officers requested during fiscal year 2015 were properly supported and complied with Postal Service policies and procedures. During fiscal year 2015, Postal Service officers filed 862 travel reimbursement requests totaling about $832,000. We reviewed 74 requests, totaling about $218,000.

What the OIG Found

Postal Service personnel generally complied with travel and representation expense procedures. However, we identified two issues for management’s attention. Specifically:

  • Officers did not always obtain preapproval to exceed the General Services Administration lodging rate.
  • An officer did not properly reduce the amount for meals provided from his travel reimbursement request.

What the OIG Recommended

We recommended management enforce or revise Officers’ Travel and Representation Expense Guidelines requiring officers to obtain preapproval when they exceed published General Services Administration rates. We also recommended management reiterate to accounting and Travel and Relocation personnel that they should ensure per diem amounts adhere to Postal Service policies when reviewing officers’ travel reimbursement requests.

Report Recommendations

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

R - 1 -- Enforce or revise Officers’ Travel and Representation Expense Guidelines requiring officers to obtain preapproval when they exceed published General Services Administration rates.

Closed $0 Disagree
2

R - 2 -- Reiterate to accounting and Travel and Relocation personnel to ensure per diem amounts adhere to Postal Service policies when they are reviewing officers’ travel reimbursement requests.

Closed $0 Agree