Expands the main menu


Audit Reports

  • Image
    Photo of Storage Facility at the Washington NDC.
Report Number:
Report Type:
Audit Reports
Category: Retail, Sales & Marketing

Management Alert - Unsecured Assets at the Washington Network Distribution Center

The Washington NDC is a highly mechanized U.S. Postal Service mail processing plant that distributes standard mail and packages in piece and bulk form. To carry out its mission, the Washington NDC owns the following types of assets:

  • Capital assets have a unit cost of $10,000 or more, are acquired through purchase, transfer, or donation, and depreciate. In calendar year 2014, the threshold for capital assets was increased from $3,000 to $10,000.
  • Expendable assets cost less than $10,000 and include items such as repair parts, replacement components, mail transport equipment, and workroom furniture. 
  • Sensitive assets are a subcategory of expendable assets and consist of assets vulnerable to theft or loss, and include items such as computers, laptops, cell phones, digital cameras, and other valuable portable equipment. 

Assets can be stored onsite in internal stockrooms or outside in storage facilities. Washington NDC management utilizes a 6,375 square feet external portable structure – built in 1995 – to store equipment and repair parts that exceed the storage capacity of its internal stockroom.

The Postal Service is responsible for protecting these types of assets from loss, theft, damage, and impairment, as well as ensuring they are accounted for through an effective asset management program. Asset management includes maintaining accurate identification and tracking of the assets within their stockrooms and storage facilities, updating data systems as appropriate, and establishing physical safeguards over the assets. 

The Vice President, Supply Management is responsible for establishing and maintaining national asset management policies, programs, and procedures. Within a facility, asset accountability is the responsibility of the facility head, material accountability officers (MAO), and stockroom personnel.  Asset management responsibilities include identifying and transferring active and inactive assets, determining the usability of inactive assets, conducting periodic reviews, and prompt and accurate reporting through appropriate inventory management systems. 

Report Recommendations

# Recommendation Status Value Management Response OIG Response USPS Proposed Resolution

Instruct the Manager, Washington NDC, to establish physical safeguards over the assets in the external portable structure, in accordance with Handbook AS-701, Asset Management.

Closed $0 Agree

Instruct the Manager, Washington NDC, to define and communicate who is responsible for the assets in the external portable structure and require staff to conduct periodic reviews of the assets to identify inactive items for appropriate disposition, in accordance with Handbook AS-701, Asset Management.

Closed $0 Agree

Instruct the Manager, Washington NDC, to conduct a physical inventory of all assets located in the external portable structure and record assets in the appropriate inventory management systems.

Closed $0 Agree

Instruct the Manager, Washington NDC, to develop and implement an action plan to address all exterior portable structure safety and maintenance issues identified during our audit.

Open $0 Agree