Upcoming Audit Work

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 Inspection Service, an investigative agency within the Postal Service, reported that since 2020, there has been a major increase in the creation, sale, and use of counterfeit postage. Counterfeit postage labels are being sold on eCommerce platforms and websites at heavily discounted prices, and it is estimated that the Postal Service incurs monetary losses of $600 million per year as a result. The Postal Service, in collaboration with the Postal Inspection Service, works to prevent, detect, and respond to the use and sale of counterfeit postage and reduce monetary losses. Our objective is: To evaluate the Postal Service and Postal Inspection Service's efforts to address counterfeit postage. 

This audit supports the Independent Public Accounting (IPA) firm's integrated audits of the Postal Service's financial statements and internal controls over financial reporting. We test and re-perform selected financial controls as agreed upon with the IPA. In addition, we also select and test additional controls to support our own year-end audit work. Our audit objectives are to determine whether 1) selected accounting transactions in the general ledger are fairly stated and whether selected key financial reporting controls surrounding those transactions were operating effectively and 2) selected key financial reporting controls were designed and operating effectively.

Priority Mail Express (PME) is the Postal Service’s fastest mail service, offering 1-day or 2-day delivery by 6 p.m., with a money-back guarantee. However, with the implementation of Local Transportation Optimization (LTO) in October 2023, most optimized post offices within the 16 LTO regions can no longer offer overnight PME. To support this initiative, the Postal Service announced in October 2024, changes to PME service, adding an extra delivery day in some cases. This audit will evaluate the Postal Service’s initial implementation of the new PME service.

The U.S. Postal Service Office of Inspector General initiated fieldwork on the U.S. Postal Service’s Service Performance During the FY 2025 Peak Mailing Season. Our objective is to evaluate the U.S. Postal Service’s performance during the fiscal year (FY) 2025 peak and post seasons, the implementation of its peak season preparedness plan, and operational changes to the network potentially impacting performance. We plan to issue the final report in May 2025.