Upcoming Audit Work

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.

The U.S. Postal Service delivers over 110 billion mail pieces each year, and these mailings should include Postal Service authorized stamps (or other postage) to verify payment. However, counterfeit stamps—enabled by advanced printing technologies and proliferating online marketplaces—pose a growing threat to Postal Service revenues, operations, and customers. The Postal Service and U.S. Postal Inspection Service (USPIS) engage in prevention, education, and enforcement efforts to mitigate this growing threat, and they reported seizing counterfeit stamps worth $16 million in fiscal year 2025. This audit will evaluate the Postal Service and USPIS’s efforts to address counterfeit stamps. 

The Postal Service faces persistent difficulties in both meeting its service performance targets and achieving financial sustainability. These challenges stem from a complex mix of internal and external factors. The internal environment is marked by ongoing network restructuring, aging infrastructure and equipment, labor issues, and struggles with organizational culture and management effectiveness. Externally, it must contend with declining mail volume, a surge in e-commerce and package volumes, regulatory constraints, and policy changes.

Our audit will evaluate the operational and financial performance of selected postal districts, specifically examining how operational culture impacts key performance indicators.

The Postal Service must thoroughly screen and evaluate prospective employees to ensure suitability and maintain the integrity of the organization. The level of clearance required is based on the type of position; however, most positions are considered low risk and require a background investigation called a National Agency Check with Inquiries (NACI). Our objective is to assess the U.S. Postal Service’s employee background screening process to determine whether the Postal Service properly granted NACI clearances to employees.

As part of its Delivering for America plan to achieve service and financial stability, the Postal Service changed service standards to increase mail transported by surface transportation. Specifically, First-Class Mail (FCM) service standards were extended by an additional one-to-two-days, and Marketing Mail standards were also shortened to two days beyond the applicable FCM standard.

Following these changes, nearly all FCM and Marketing Mail moved via surface transportation. However, in fiscal year 2025, air transportation for these mail classes began to rise. This project will evaluate the effectiveness of market dominant mail (FCM and Marketing Mail) transported by the air network.