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. 

The Postal Service operates approximately 31,000 retail units. Management at these retail units must provide adequate security for all accountable items such as USPS funds, accountable paper, and equipment and report their financial activity at the close of each business day. This audit will determine compliance with policies and procedures regarding financial controls and safeguarding of assets at selected Postal Service retail units.

The U.S. Postal Inspection Service’s (USPIS) mission is to support and protect the U.S. Postal Service and its employees, infrastructure, and customers; enforce the laws that defend the nation’s mail system from illegal or dangerous use; and ensure public trust in the mail. USPIS prioritizes strategic goals and defines the tactical actions required to succeed in the current law enforcement environment.

On October 1, 2024, USPIS launched a new strategic plan, which expanded the previous strategic plan goals outlining both Key Mission and Business Priorities and includes actionable steps to address each priority. The Key Mission Priorities represent critical and emerging issues affecting the Postal Service’s employees, the postal infrastructure, and postal products, as well as the success of USPIS’s mission. Management states Key Business Priorities were developed through extensive research and communication with representatives from various headquarters and field operations.

Our objective is to assess the Postal Inspection Service’s strategy, resources, and strategic priorities used to accomplish its mission. Our audit scope will consist of an analysis of USPIS strategy and resources, to include its personnel and spending budget.
 

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.