Upcoming Audit Work

As part of its Delivering for America plan, the Postal Service is redesigning its network of nearly 19,000 delivery units to reduce inefficient operations and costs. The Postal Service has identified key markets where it can aggregate several delivery units into fewer, larger Sorting and Delivery Centers (S&DCs) that are centrally located. As of November 2024, the Postal Service rolled out 83 S&DCs that encompassed 9,497 routes and expects to develop 36 more in 2025 that would encompass 3,313 routes. Our objective is to determine if the Postal Service evaluated and created routes accurately at the S&DCs. If not, estimate the cost impacts.

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.

Contract Delivery Services (CDS) are a contractual agreement between the Postal Service and an individual or company for the delivery and collection of mail to and from homes and businesses. CDS offers a cost-effective way for the Postal Service to extend its reach while maintaining control over business expenses. In many cases, CDS routes provide an efficient method for delivering mail to communities, especially in rural or underserved areas.

Our audit will evaluate the management, efficiency and safety of CDS operations. Specifically, we will evaluate supplier costs, vehicle requirements, driver safety, and security measures for CDS routes.