Upcoming Audit Work

As part of its Delivering for America’s 10-year strategic plan, the U.S. Postal Service is allowing a higher percentage of mail volume to be transported by surface transportation rather than air transportation, which is less reliable and more costly. The Postal Service has a limited surface carrier base due to their contracting requirements and is obligated to maintain the safety of the mail and assets to preserve the public’s trust. Our objective is to assess the effectiveness of highway contract route safety controls and contract compliance and oversight.

The Office of Personnel Management (OPM) administers pension, health insurance, and life insurance benefits for federal agencies. Postal Service is responsible for withholdings and contributions reported in the Report of Withholdings and Contributions for Health Benefits, Life Insurance and Retirement; and the enrollment information reported on the Supplemental Semiannual Headcount Report. Our objective is to assist the OPM in assessing the reasonableness of retirement, health benefits, and life insurance withholdings and contributions as well as enrollment information submitted via the Semiannual Headcount Report by the Postal Service. This attestation engagement will apply agreed-upon procedures, which are the responsibility of OPM, from October 2022 through August 2023.

Billing determinants are spreadsheets that Postal Service employees manually produce to report volume and revenue for every Postal Service price within each class of market dominant mail. Volumes from the competitive billing determinants are an indirect input used to ensure the Postal Service does not set product prices below its price-floor. Our objective is to assess the Competitive Parcel Select billing determinant process. The scope of our audit will be for fiscal year FY2021 and FY 2022. The estimated report release date is August 2023.

The Selected Financial Activities and Accounting Records audit supports the Independent Public Accounting (IPA) firm’s integrated audits of the Postal Service’s financial statements and internal controls over financial reporting through re-performance of selected financial control tests and independent testing as agreed upon with the IPA. Our audit objectives are to determine whether the Postal Service: 

• Fairly stated accounting transactions in the general ledger and whether selected controls surrounding those transactions were designed and operating effectively. 
• Properly tested, documented, and reported its examination of selected key financial reporting controls at Headquarters and Accounting Service Centers.
   

With the Postal Service Reform Act of 2022, the U.S. Postal Service Office of Inspector General now has oversight jurisdiction of the Postal Regulatory Commission (PRC). The PRC is an independent agency that exercises regulatory oversight of the Postal Service.  It is composed of five commissioners, supported by a staff of approximately 80 individuals, who oversee rate setting and performance of the Postal Service. The Office of Secretary and Administration is responsible for acquisition planning, procurements, and supply management. The objective of our audit is to evaluate acquisition planning and the internal controls over the contracting practices for the procurement of goods and services under contracts issued by the PRC. The scope of our audit will include contracts issued by the PRC for the procurement of goods and services from October 1, 2019, through September 30, 2022.