Upcoming Audit Work

In fiscal year 2025, the Postal Service spent over $15 billion through contracts to buy a wide variety of products and services, ranging from delivery vehicles to common office supplies. Contracts specify the business requirements, price, payment arrangement, and other terms and conditions for procurement. Given the amount of funds spent and the missions these contracts support, it is critical that Postal Service procurement leaders manage their specific portfolios effectively. The objective of our audit is to evaluate the Postal Service’s oversight of its contracts, including pre-award and post-award processes.

The Postal Accountability and Enhancement Act of 2006 (PAEA) amended portions of Title 39 U.S.C. regarding maximum compensation limits for employees, executives, and officers. The Postal Service has limited ability to pay specific executives over the maximum amount allowed by the executive schedule, either through bonuses or additional pay authority. Our objective is to determine whether the U.S. Postal Service complied with applicable maximum total compensation provisions of the Postal Accountability Enhancement Act of 2006 (PAEA) and related Postal Service policies and guidelines for calendar year (CY) 2025.

The Postal Service categorizes employees into two primary groups: career and pre-career. Career employees receive a full range of benefits while pre-career employees do not yet have permanent status and do not receive full employee benefits.

As mentioned in its 10-Year Delivering For America Plan (DFA), the Postal Service began to increase the number of employees converted from pre-career to career positions. However, this increased compensation costs for the Postal Service. Our objective is to assess the financial and service-related impacts of the Postal Service's employee composition.

The Office of Inspector General (OIG) is responsible for the annual audit of the travel and representation expenses incurred by Postal Service officers. Additionally, we include the travel expenditures of other Postal Service executives in this audit. Our objective is to determine whether Postal Service officers and executive directors’ travel and representation expenses were properly supported, reasonable, and complied with Postal Service policies and procedures.

As part of their Delivering for America plan, the Postal Service is investing $40 billion for network modernization, based around Regional Processing and Distribution Centers (RPDCs), Local Processing Centers (LPCs), and Sorting and Distribution Centers (SDCs). Overall, the Postal Service will establish 60 RPDCs to consolidate mail processing operations and create fewer points in the processing and transportation networks. Each RPDC processes mail and packages originating in its service area and has one or more LPCs associated with it. This audit will focus on the network transformation and consolidation of operations at Indianapolis, IN RPDC.