Upcoming Audit Work

The mission of the Postal Service is to provide the nation with trusted, safe, and secure communications and mail services. Recently, news media have often reported concerns about mail theft. Congress has focused on mail theft during congressional hearings and as a result, sent inquiries to the OIG. In a previous OIG report, U.S. Postal Service’s Response to Mail Theft, dated September 28, 2023, we identified several mail theft concerns including management not having actionable milestones, lack of arrow key accountability, and challenges with employee staffing and postal inspector mail theft training. Our objective is to follow up on U.S. Postal Service and Postal Inspection Service’s response to mail theft, and the scope of our audit will be from October 2023 through September 2025.

The Postal Reorganization Act of 1970, as amended, established the Office of the Board of Governors. The Board of Governors sets policies on all Postal Service matters, reviews its practices, conducts long-range planning, directs and controls its expenditures, and approves officer compensation. Board policy requires the Office of the Inspector General to annually audit the Board’s travel and miscellaneous expenses. Our objective is to determine whether Board expenditures were properly supported, reasonable, and complied with Postal Service and Board policies and procedures.  

As part of its Delivering for America plan to achieve service and financial stability, the Postal Service changed service standards to increase mail transported by surface transportation. Specifically, First-Class Mail (FCM) service standards were extended by an additional one-to-two-days, and Marketing Mail standards were also shortened to two days beyond the applicable FCM standard.

Following these changes, nearly all FCM and Marketing Mail moved via surface transportation. However, in fiscal year 2025, air transportation for these mail classes began to rise. This project will evaluate the effectiveness of market dominant mail (FCM and Marketing Mail) transported by the air network.

The Origin-Destination Information System – Revenue, Pieces, and Weight (ODIS-RPW) is the probability sampling system used to assist in estimating Postal Service revenue, volume flow, and weight. The Postal Service uses this information to develop proposals for new Postal Service rates, assist in budget preparation, conduct management studies, and support management decisions concerning mail flow and service performance in transportation and operations. Our objective is to determine whether the Postal Service conducted ODIS-RPW statistical tests in accordance with established policies and procedures. The scope of our audit is fiscal year 2023 Q1 through 2026 Q2.

In March 2021, the U.S. Postal Service released its 10-year strategic Delivering for America (DFA) plan, to address continuing annual financial losses, unmet service performance goals, and evolving public and consumer demands. Over the past five years, the Postal Service has undertaken major initiatives to build a best-in-class mail and package processing network. These efforts include establishing Regional Processing and Distribution Centers, creating Regional Transfer Hubs, and implementing the Regional Transportation Optimization program. Our objective is to determine the impacts that network change initiatives have had on the Postal Service and its stakeholders.