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 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. 

Contract Delivery Services (CDS) are a contractual agreement between the Postal Service and an individual or company for the delivery and collection of mail to and from homes and businesses. CDS offers a cost-effective way for the Postal Service to extend its reach while maintaining control over business expenses. In many cases, CDS routes provide an efficient method for delivering mail to communities, especially in rural or underserved areas.

Our audit will evaluate the management, efficiency and safety of CDS operations. Specifically, we will evaluate supplier costs, vehicle requirements, driver safety, and security measures for CDS routes.

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.