The objective of the audit is to evaluate the process for issuing salary checks early and determine the impact for cashing the salary checks prior to the pay date.
The Postal Service opened a payroll clearing account for employees that do not receive direct deposit. This account became effective for the February 5, 2010 pay date. An analysis of the Point of Service (POS) tender data for February 2010 revealed the payroll checks are being distributed early on the Wednesday and Thursday prior to payday and are being cashed at POS offices. Again, a similar pattern occured on the Wednesday and Thursday prior to the February 19, 2010 pay date. To conduct our audit, we will: Review the POS tender data for February 2010. Review employee schedules to determine the purpose of the employee receiving their salary check in advance. Hold discussions with Postal Service management to determine when the payroll account is funded. Conduct site visits at a minimum of # sites in the Northeast area to conduct interviews with Postal Service management to determine why they are distributing salary checks in advance and why they are allowing the checks to be cashed early. (Note: Of the 6 districts cashing over 100 checks, the largest violation occurred in 5 districts in the Northeast Area. Review USPS regulations, manuals, and policies and procedures as criteria to evaluate internal controls over disbursing checks early and cashing them prior to the pay date at POS offices.
source: USPS Office of Inspector General