Expands the main menu

Breadcrumb

Audit Reports

Jul
12
2013
Report Number:
HR-MA-13-003
Report Type:
Audit Reports
Category: Human Resources

Postal Career Executive Service I Annual Leave

BACKGROUND:

The U.S. Postal Service established the Postal Career Executive Service in 1979 to fill key leadership and management positions. Postal Career Executive Service I employees include area, district, and headquarters executives, but excludes officers and vice presidents.

The Postal Service provides 208 hours of annual leave each year to executives for personal or emergency purposes. These employees can accumulate unused annual leave; however, Postal Service policy requires executives to use or lose 80 hours of leave each year once they accumulate a set number of hours. Executives may request leave by completing and obtaining approval using a manual leave request process. The Postal Service also offers programs to exchange leave for cash or donate leave to employees in need.

Our objective was to review compliance with and adequacy of Postal Career Executive Service I annual leave policies and procedures.

WHAT THE OIG FOUND:

At the end of leave year 2012, the Postal Service had 589 Postal Career Executive Service I active employees, 21 of whom had not taken at least 80 hours of annual leave, as required. We found that, except for a U.S. Postal Inspection Service executive, the Postal Service appropriately adjusted leave balances in accordance with policy. We also found that Postal Service policy on executive annual leave use was not clear and an opportunity exists to improve controls. Specifically, the policy does not clearly define how various ways of using annual leave satisfy the requirement to use 80 hours annually. Additionally, management did not apply leave rules to Postal Inspection Service employees and relied on a manual leave system that is susceptible to fraud and misuse. When policies are not clear and weak internal controls exist, there is increased financial risk to the Postal Service.

WHAT THE OIG RECOMMENDED:

We recommended management clarify the policy on annual leave use, improve system controls to accurately adjust leave balances for Postal Inspection Service employees, and conduct a cost/benefit analysis to determine whether the Postal Service should automate the leave request and notification system for executives. 

Report Recommendations

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

R - 1 -- Clarify the annual leave policy (with examples) to include how various ways of using annual leave satisfy the requirement to use 80 hours annually and communicate to applicable personnel.

Closed $0 Agree
2

R - 2 -- Modify and test leave system controls to ensure U.S. Postal Inspection Service Postal Career Executive Service I equivalent employees' annual leave amounts are calculated according to Postal Service policy, and communicate policy to applicable personnel.

Closed $0 Agree
3

R - 3 -- Perform an independent cost/benefit analysis to determine whether the Postal Service should automate the leave request and notification system, and take appropriate action.

Closed $0 Disagree