Upcoming Audit Work

In March 2021, the U.S. Postal Service released its 10-year strategic Delivering for America (DFA) plan, to address continuing annual financial losses, unmet service performance goals, and evolving public and consumer demands. Over the past five years, the Postal Service has undertaken major initiatives to build a best-in-class mail and package processing network. These efforts include establishing Regional Processing and Distribution Centers, creating Regional Transfer Hubs, and implementing the Regional Transportation Optimization program. Our objective is to determine the impacts that network change initiatives have had on the Postal Service and its stakeholders.

The Origin-Destination Information System – Revenue, Pieces, and Weight (ODIS-RPW) is the probability sampling system used to assist in estimating Postal Service revenue, volume flow, and weight. The Postal Service uses this information to develop proposals for new Postal Service rates, assist in budget preparation, conduct management studies, and support management decisions concerning mail flow and service performance in transportation and operations. Our objective is to determine whether the Postal Service conducted ODIS-RPW statistical tests in accordance with established policies and procedures. The scope of our audit is fiscal year 2023 Q1 through 2026 Q2.

The Postal Reorganization Act of 1970, as amended, requires annual audits of the U. S. Postal Service’s (USPS) financial statements. As part of these audits, USPS guidelines state the USPS Office of Inspector General (OIG) annually audit the expenses and payment amounts paid to officers, or on their behalf, for travel and representation. 
USPS OIG is conducting an audit of the USPS’s fiscal year 2025 officers’ and executive directors’ travel and or representation expenses. The audit’s objective is to determine if USPS officers and executive directors followed the applicable policies and procedures for travel and or representation expenses.

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.

The Postal Regulatory Commission (PRC) uses the government purchase card as its preferred acquisition method for purchases under $10,000 to expedite purchasing, streamline payments, and reduce administrative costs.  All cardholders must follow policies and procedures and obtain proper approval for every purchase, secure their card, maintain accurate records, reconcile bank statements, and receive training. Our objective is to evaluate the Postal Regulatory Commission’s purchase card expenses and assess the effectiveness of current internal controls and procedures.