OIG Finds Problems with application of criteria used by USPS To Select Post Offices For Closure
OIG also found: “The Postal Service provided information on the RAOI offices by the four groups on two public websites, USPS.com® and PRC.gov, on July 26 and 27, 2011, respectively. We noted that composition of the four groups differs between the two public postings.”‘
The USPS OIG issued audit report “Postal Service-Operated Retail Facilities Discontinuance Program” below are some of the highlights:
The Postal Service issued new procedures for the discontinuance of Postal Service-operated retail facilities. Subsequently, the Postal Service applied the new procedures to begin the first headquarters-initiated study to review more than 3,600 offices for discontinuance opportunities. Our objectives were to assess policy changes for the closing, consolidation, and suspension process; and discontinuance opportunities. This report is part of an ongoing series of retail optimization reviews. Read more
OIG Report On USPS Health and Safety Program
OIG found in some locations that safety was not always a priority to management
Highlights of the USPS OIG audit:
Previously, the Postal Service, as a federal agency, was exempt from private sector provisions of the OSH Act. When PESEA became effective, the Postal Service became fully subject to the OSH Act. This gave OSHA jurisdiction over the Postal Service in matters relating to employee safety and health and required the Postal Service to comply with OSHA standards and regulations. If violations occur, OSHA may cite or fine the Postal Service or, in extreme cases, refer the agency for criminal prosecution. Read more
OIG: USPS Should Offer eMailboxes To Consumers
An Opportunity for the Postal Service?
Out of 23 posts in industrialized countries, the U.S. Postal Service is one of the few remaining posts not offering an eMailbox solution to its citizens. And while there are private sector technology industry standouts in the U.S. that have developed widely popular e-mail and secure storage services, their business models sacrifice consumer privacy in the interest of ad-based revenue generation.
In an increasingly digital world, it may make sense for the Postal Service to offer eMailbox services in addition to traditional delivery. A consumer would also be able to sign up for an accompanying highly secure data storage area service called the eLockbox, which would provide added security for the archiving of important legal and personal documents with anytime, anywhere secure access. Today many electronic documents, especially financial records, reside primarily on the banks or billers Web site and not with the consumer.
Offering eMailboxes to Consumers: An Opportunity for the Postal Service? | USPS OIG:
USPS OIG Poll: How Far Does Your 44 Cents Go?
From The USPS OIG:
When mailing a letter that weighs about one ounce, the U.S. Postal Service’s 44 cents is one of lowest First Class postage rates. Whether you are mailing a letter locally or sending a greeting card across country, it still only costs 44 cents now, but will increase to 45 cents in January. The graph below compares the U.S. Postal Service’s postage rate with other countries. As you can see, Norway charges the highest rate, which is nearly four times the cost U.S. rate.
Some might feel it is reasonable for the Postal Service to increase rates and charge a fee comparable to those in other countries. On the contrary, others might say the Postal Service’s rate must remain at an affordable level, especially for people with lower incomes. They might also say raising the rate to a level found elsewhere would drive customers away even faster.
What do you think about the current postage rate? Do you think 44 cents is reasonable?
If 44 cents is too low, how much do you think the Postal Service should charge?
OIG: USPS Had More Than 3.4 Billion Delayed Mailpieces During Fall 2010
…a 37 percent increase over the same period last year. We have referred three instances of intentional misreporting of delayed mail to the Office of Investigations over the past several years.
Mailers expressed concerns over the substantial amount of delayed Standard Mail® and Periodicals during the 2010 Fall Mailing Season.
Approximately 95 percent of this delayed mail was Standard Mail. This adversely impacted service and resulted in approximately $10.9 million in revenue at risk. Factors contributing to this condition included failure to adjust mail flow, sort plans, and staffing to meet operational changes, particularly when implementing consolidations and realignments. We identified a very small amount of stand-by time (or idle time) during this period; thus, it appears the vast majority of employees were engaged in processing mail. Contributing factors also included underestimating mail volumes, underutilizing machines, not consistently color-coding mail, and not accurately identifying and reporting delayed mail. We have referred three instances of intentional misreporting of delayed mail to the Office of Investigations over the past several years.
OIG Report: Postal Service Performance During the 2010 Fall Mailing Season (PDF)
OIG Says USPS Lowered 2009 Pay for Performance Scores To Save money
The Office of Inspector General for the U. S. Postal Service has issued an audit report on the 2009 Pay- for-Performance program. On August 27, 2010 NAPUS and the League filed a joint letter to the OIG requesting their assistance with an investigation into Postmasters’ 2009 Pay-for-Performance program’s final core requirement ratings and appeals. Our request for an investigation was not based simply on reduced monetary payouts due to manipulation of the program. Rather, we requested this investigation based on the failure of the U.S. Postal Service to comply with the administrative rules of the PFP. It appears from the OIG’s report that the OIG found that the Postal Service did fail to comply with the rules. Read more
USPS OIG: The High Cost of Low-Cost Mail
USPS OIG Survey on the biggest challenges facing the Postal Service in reducing costs. A recent paper published by OIG found:
“1. The mail business is labor intensive, and labor makes up 80 percent of Postal Service expenses. This means that in order to achieve real cost savings, the Postal Service has to cut labor costs. While ideally labor costs could be cut to match declines in volume, this is challenging because the Postal Service’s delivery network has significant fixed costs.
2. Since 1972, the total cost of benefits to the Postal Service has risen an astounding 448 percent above inflation, while the real amount spent on wages has declined by nearly 3 percent. This extraordinary increase in benefit costs is due to three factors: a general trend of higher benefit costs that has affected most U.S. companies, the gradual transfer of postal retiree benefit costs from the federal government to the Postal Service, and repeated overcharges for these retiree benefit cost”
OIG Report: USPS Could Save $Billions By Eliminating Door-To-Door Delivery
OIG: USPS does not require Congressional approval for this policy change. USPS could save $$Billions more by converting curbside delivery into centralized delivery.
USPS OIG Audit Report – Modes of Delivery (Report Number DR-AR-11-006)
Notwithstanding these limitations, the Postal Service should develop a comprehensive
strategic plan to aggressively move from existing door-to-door delivery to curbside
delivery, which could save more than $4.5 billion a year. Future strategies should also
evaluate savings opportunities associated with conversion of curbside to centralized
delivery — which could save the Postal Service an additional $5.1 billion — and
mandate centralized delivery for new delivery points.
This strategic plan would significantly reduce delivery costs and could be implemented
internally through policy changes. It would not require congressional approval, unlike
other significant cost-savings initiatives, such as moving from 6- to 5-day delivery. At the
same time, these changes would increase fairness and consistency of service to
customers, as curbside delivery would be the primary delivery mode.
OIG Audit Of USPS Web-Based Program Used For Closing Post Offices
Filed under: audits, oig, post offices, postal, postal news, usps
USPS OIG audit report of the web-based application, the Change Suspension Discontinuance Center (CSDC) program, used for the discontinuance of Postal Service-operated retail facilities. According to OIG: “The CSDC program’s discontinuance process follows applicable federal law and Postal Service policies. By law, the Postal Service cannot close small POs solely for operating at a deficit.” Read more
OIG Finds Over $400k In Questionable USPS Purchases On Beer, Sports,Gift Cards
USPS OIG Audit Report – Purchasing Compliance and Imprudent Purchases Follow-Up Audit;
The Postal Service has an increased risk of loss when purchases are made without proper authorization or justification
This report presents the results of a follow-up audit to determine whether purchases complied with U.S. Postal Service policy and whether imprudent purchases were still occurring related to the SmartPay® Purchase Card and select Accounts Payable Excellence (APEX) system transactions since our last audit. Read more