Audit Reports

Background

Each year the U.S. Postal Service is required to report on compensation in the annual Comprehensive Statement of Postal Operations (Comprehensive Statement). For calendar year (CY) 2022, the annual salary of each Postal Service employee was limited to $226,300. Two exceptions granted under the Postal Accountability and Enhancement Act of 2006 (PAEA) allow the Postal Service to exceed this limit. The first exception provides for bonuses or other rewards such that the employee’s total compensation does not exceed the salary of the U.S Vice President ($261,400). The second exception allows the Postal Service to exceed the salary of the U.S. Vice President by 20 percent ($313,680) for up to 12 critical senior executives.

What We Did

Our objective was to determine whether the Postal Service complied with applicable maximum total compensation provisions of the PAEA and related Postal Service policies and guidelines for CY 2022. We reviewed significant provisions of PAEA; Postal Service policies, procedures, and guidelines regarding compensation, benefits, and bonuses; payroll, bonus, and award information from Postal Service systems; and employment agreements applicable to the compensation limits for the project scope. We also conducted interviews with Postal Service employees.

What We Found

Postal Service complied with the applicable compensation provisions of the PAEA and its policies and guidelines related to benefits, bonuses, and awards to employees in CY 2022. We reviewed 98 employees who earned more than $226,300 in CY 2022 and found their compensation did not exceed the PAEA limits. In addition, the Postal Service has policies and procedures to monitor employee benefits, bonuses, and awards to adhere to the compensation limits.

Recommendation

Based on the audit results, we did not offer any recommendations.