Upcoming Audit Work

In 2017, the Postal Service launched the Automated Package Verification (APV) system to detect underpaid postage automatically for PC Postage customers. APV checks shippers' entries against actual weights and dimensions, charging additional postage or refunding overpayments. In 2022, the Postal Service integrated APV into the USPS Ship platform. When discrepancies are found, the Postal Service invoices for additional postage or issues refunds. Our objective is to evaluate effectiveness of the Postal Service’s automated solutions to verify package attributes and charges. Contact us if you have any information or input that might be beneficial to the auditors on this topic.  

In September 2024, the Postal Service published an update to its strategic Delivering for America (DFA) plan. The updated DFA plan provides a roadmap for continued transformation of the Postal Service into a financially sustainable, high-performing organization. The plan identifies several contracted operations, including Terminal Handling Service (THS), Highway Contract Routes (HCR), and Surface Transfer Centers (STC), that were in the process of being insourced as a cost-reduction and efficiency strategy. This audit’s objective is to assess the effectiveness and impact of insourcing operations under the DFA plan.
 

This audit is a follow-up from a December 16, 2022 OIG report, Delivery Operations – Undelivered and Partially Delivered Routes. The previous audit examined how the Postal Service managed routes with undelivered or partially delivered mail. It found that although electronic systems and reports track delayed mail on delivery routes, they do not specify how many routes were left undelivered or only partially delivered. The current audit will evaluate the effectiveness of enhancements made by the U.S. Postal Service to address these deficiencies, including how undelivered and partially delivered routes are identified and reported, and how customers will be notified.

Following the 2024 audit—which found that the Postal Service was not tracking contractor accidents and lacked visibility into subcontractors, who were not always screened—there has been a significant push for transparency and stricter oversight. In efforts to support and maintain safety at Postal Service facilities and on contract service routes, there are multiple regulations, policies, and procedures to assist Postal Service personnel and contractors. As such, our objective is to determine if the Postal Service is effectively overseeing contract trucking suppliers and related subcontractors, to ensure compliance with policies and regulations.

At the end of Fiscal Year (FY) 2026 Quarter 2, the Postal Service held $4.5 billion in available cash, resulting in the Postal Service disclosing that it has sufficient liquidity to remain operational through May 2027. This is not the first time the Postal Service faced low liquidity; cash was also low in FY 2011 through FY 2013 and during FY 2019. This white paper will examine its current cash position and cash flows, as well as the cash flows and conditions in those past periods of low liquidity. We also plan to explore cash management strategies pursued in the past and today.