Upcoming Audit Work

In fiscal year 2025, the Postal Service spent over $15 billion through contracts to buy a wide variety of products and services, ranging from delivery vehicles to common office supplies. Contracts specify the business requirements, price, payment arrangement, and other terms and conditions for procurement. Given the amount of funds spent and the missions these contracts support, it is critical that Postal Service procurement leaders manage their specific portfolios effectively. The objective of our audit is to evaluate the Postal Service’s oversight of its contracts, including pre-award and post-award processes.

In 2017, the Postal Service launched the Automated Package Verification (APV) system to detect underpaid postage automatically for PC Postage customers. APV checks shippers' entries against actual weights and dimensions, charging additional postage or refunding overpayments. In 2022, the Postal Service integrated APV into the USPS Ship platform. When discrepancies are found, the Postal Service invoices for additional postage or issues refunds. Our objective is to evaluate effectiveness of the Postal Service’s automated solutions to verify package attributes and charges. Contact us if you have any information or input that might be beneficial to the auditors on this topic.  

In September 2024, the Postal Service published an update to its strategic Delivering for America (DFA) plan. The updated DFA plan provides a roadmap for continued transformation of the Postal Service into a financially sustainable, high-performing organization. The plan identifies several contracted operations, including Terminal Handling Service (THS), Highway Contract Routes (HCR), and Surface Transfer Centers (STC), that were in the process of being insourced as a cost-reduction and efficiency strategy. This audit’s objective is to assess the effectiveness and impact of insourcing operations under the DFA plan.
 

This audit is a follow-up from a December 16, 2022 OIG report, Delivery Operations – Undelivered and Partially Delivered Routes. The previous audit examined how the Postal Service managed routes with undelivered or partially delivered mail. It found that although electronic systems and reports track delayed mail on delivery routes, they do not specify how many routes were left undelivered or only partially delivered. The current audit will evaluate the effectiveness of enhancements made by the U.S. Postal Service to address these deficiencies, including how undelivered and partially delivered routes are identified and reported, and how customers will be notified.

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.