Upcoming Audit Work

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.

This audit is in response to a congressional request to identify causes of mail delays. This audit will examine how Delivering for America network changes such as transportation optimization and processing consolidations affect service performance in South Dakota. South Dakota mail may often travel long distances out of state for processing. Transportation changes, planned conversions to local processing centers, and revised service standards further influence delivery times, which can range from two to seven days. Rural areas may be especially impacted. 

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.