Upcoming Audit Work

Following the 2024 audit—which found that the Postal Service was not tracking contractor accidents and lacked visibility into subcontractors, who were not always screened—there has been a significant push for transparency and stricter oversight. In efforts to support and maintain safety at Postal Service facilities and on contract service routes, there are multiple regulations, policies, and procedures to assist Postal Service personnel and contractors. As such, our objective is to determine if the Postal Service is effectively overseeing contract trucking suppliers and related subcontractors, to ensure compliance with policies and regulations.

At the end of Fiscal Year (FY) 2026 Quarter 2, the Postal Service held $4.5 billion in available cash, resulting in the Postal Service disclosing that it has sufficient liquidity to remain operational through May 2027. This is not the first time the Postal Service faced low liquidity; cash was also low in FY 2011 through FY 2013 and during FY 2019. This white paper will examine its current cash position and cash flows, as well as the cash flows and conditions in those past periods of low liquidity. We also plan to explore cash management strategies pursued in the past and today.

The Office of Inspector General (OIG) is responsible for the annual audit of the travel and representation expenses incurred by Postal Service officers. Additionally, we include the travel expenditures of other Postal Service executives in this audit. Our objective is to determine whether Postal Service officers and executive directors’ travel and representation expenses were properly supported, reasonable, and complied with Postal Service policies and procedures.