Upcoming Audit Work

This audit supports the Independent Public Accounting (IPA) firm's integrated audits of the Postal Service's financial statements and internal controls over financial reporting. We test and re-perform selected financial controls as agreed upon with the IPA. In addition, we also select and test additional controls to support our own year-end audit work. Our audit objectives are to determine whether 1) selected accounting transactions in the general ledger are fairly stated and whether selected key financial reporting controls surrounding those transactions were operating effectively and 2) selected key financial reporting controls were designed and operating effectively.

The Postal Service relies on major mailers and consolidators who generate approximately $15.9 billion of the Postal Service’s revenue through marketing and other large scale mailings. Major mailers rely on PostalOne!, a complex system designed for business mailers that interfaces with 45 other Postal Service systems. PostalOne! allows business customers to begin the process of entering mail and allows for electronic access, documentation, business mail management, and payment. It is an internal and external facing site that provides automated scheduling services for drop shipment mailings, electronic documentation, postage statements, simplified mail acceptance, and verification and payment processes. The objective of this audit is to determine whether the Postal Service appropriately implemented and communicated changes to PostalOne!.

The Postal Inspection Service, an investigative agency within the Postal Service, reported that since 2020, there has been a major increase in the creation, sale, and use of counterfeit postage. Counterfeit postage labels are being sold on eCommerce platforms and websites at heavily discounted prices, and it is estimated that the Postal Service incurs monetary losses of $600 million per year as a result. The Postal Service, in collaboration with the Postal Inspection Service, works to prevent, detect, and respond to the use and sale of counterfeit postage and reduce monetary losses. Our objective is: To evaluate the Postal Service and Postal Inspection Service's efforts to address counterfeit postage.