USPS Office Of Inspector General’s Audit Plan For 2011

The USPS Office Of Inspector General’s 2011 Audit Plan

A few highlights:

The Financial Risk category pertains to the critical financial risk the Postal Service faces as it, like other companies, deals with the economic slowdown affecting the nation. Factors
exacerbating financial risk include the crisis in the financial industry, increases in energy costs, significant declines in mail volumes, and mandated annual payments to pre-fund retiree health benefits. The anticipation of further declines in volume means the Postal Service still faces major challenges to cut costs and increase revenues.

Examples in the Financial Risk category include issues with a clear financial impact, such as:
– Labor costs and volume reductions.
– Financial statement audits.
– Sarbanes-Oxley Act implementation.
– Pricing.

Examples of Planned Work Under Financial Risk in FY 2011
In FY 2011, we plan to conduct work that addresses:

Department of Labor and the US Postal Service—Workers’ Compensation Program: We plan to review the requirements for the Postal Service to participate in the Federal Employee Workers’ Compensation Program, problems existing in the program, and the impacts to the Postal Service of the current arrangement. We also plan to benchmark with other companies to determine how their costs compare with the Postal Service and to identify best practices for reducing workers’ compensation cost.

Financial Fraud Vulnerability – Internal and External: We have several audits planned in this area—we plan to look at no-fee money orders, imprudent purchases,
bad check prevention and collection, click-n-ship postage, Automated Postal Center Postage and stamp accountability.

Substantial Savings Available by Prefunding Pension & Retiree Health Care at Benchmarked Levels: We will benchmark Postal Service prefunding pension and retiree health care fund requirements against other large companies and the federal government.

Examples of Planned Work Under Operational Risk in FY 2011

Work we plan to do in FY 2011 includes:
Plant Production Efficiency: We plan to assess the overall efficiency of the processing and distribution network for FY 2010.

First-Class Mail on Air Transportation: We plan to determine whether opportunities exist to improve density of First Class mail on air transportation and reduce overall
transportation costs.

City Delivery Efficiency – National Capping: We will summarize the results of our audits that assessed overall efficiency of city delivery operations and identified
opportunities to reduce operating costs.

OSHA Compliance: We plan to assess the Postal Service’s processes to ensure compliance with Occupational Safety and Health Administration regulations.

Benchmarking with Other Delivery Companies: We plan to identify opportunities for improving mail distribution to carriers by benchmarking with the commercial mailing

Nationwide Facility Excess: We will identify nationwide opportunities for the Postal Service to optimize excess space.

We address the following management challenges facing the Postal Service:

Strategic Direction and Infrastructure Challenges – The Postal Service must address its critical financial challenge while 1) increasing its effectiveness and efficiency; 2) ensuring that products and services are self-sustaining; and 3) balancing legal considerations and stakeholder views.

Labor and Management – The Postal Service must ensure its compensation and benefit costs are effectively aligned in anticipation of further reductions in revenue. The
Postal Service must analyze labor dispute settlements to assess whether there are recurring scenarios that could be avoided.

Cost Control and Reduction of Energy Consumption – The Postal Service must control costs and reduce energy use to maintain universal service. The Postal Service
must compare contract analysis assumptions with actual performance to determine whether it should continue to outsource products and services or perform them

Revenue, Brand Protection, and Growth – The Postal Service must manage its pricing of products and services to ensure maximum revenue and provide greater value to its customers.

Customer Service – The Postal Service must balance its public service obligation with the need to remain commercially viable.

Preserving Integrity and Security – The Postal Service must provide a secure infrastructure for the nation’s mail system – despite threats of terrorism or natural disaster – to safeguard its resources (employees, facilities, and applications) and protect and maintain the integrity of its proprietary and customer data.

Technology Improvements and Information Transparency – The Postal Service must optimize its use of technology and provide information that better meets the needs of its managers and stakeholders.

Public Outreach – The Postal Service must educate stakeholders and the public about the financial challenges it faces and the fact that it is funded by ratepayers not tax

Regulatory Challenges – The Postal Service must comply with legal and regulatory mandates. 

see full report

4 thoughts on “USPS Office Of Inspector General’s Audit Plan For 2011

  1. Un fricking believable! The OIG in any federal agency has a simple mission – to be the Internal Cops of that agency to protect against Fraud, Waste, and Abuse. There is nothing about that in this text! OIG = COPS…

    If you were to join the OIG, and really understood what they’re supposed to do, vs. what they do in the USPS OIG, you’d quit. You’d then go join an agency that has an OIG to become Federal Agents and catch crooks. Why? Because you joined to be a COP, not a CLIPBOARD.

    What they describe in this text is a District Support team audit mission. Nothing more, nothing less. Where are the USPS COPS for catching our internal crooks??? If the OIG ain’t gonna do it, take away their guns and badges, then dress them up like Erkle!

  2. I wonder if the OIG is going to audit the PIRs (post-implementation reviews) that are a requirement for the dozens of mail processing facilities that have closed as a result of the bogus AMP “studies” . PO 408 says if the stated savings are not being met or if service is negatively affected, the AMP closure must be reversed. I’ll bet that these reviews will never see the light of day, if they are performed at all, and if the OIG gets to review them, they will receive a heavily redacted version.

  3. The OIG is at it again. A U.S. Senator is investigating why the OIG did not go after management when it was and still is giving excessive perks to washing and district managers and office slugs and now they are again going after the unions. Can you say “one hand whitewashing the other”? I’ll be going to work for the new postal company as a hiring manager and making it my sole purpose to make sure no former OIG and washington slugs ever step one foot in the hiring line.

  4. I still think you really need to focus on reducing management. No reason to have the management to workers (who handle the mail) ratio that exists today. No reason to have all the district and area offices and people that work in those offices that exists today. No reason to have as many light/limited duty people that exists today.

    Why do you have so much paper work, just to deliver mail?

    Why did USPS spend billions of dollars on FSS, and then make all these complicated rules so that mail will run on those machines? With the tech that is around today, why should mailers have to adapt to what thoses machines can handle?

    Poor engineering examples are everywhere in USPS offices. Why is Fedex and UPS scanning tech so much more advanced that what the USPS offers?

Comments are closed.