U.S. Postal Service: Stronger Mail Acceptance Controls Could Help Prevent Revenue Losses
GGD-96-126
Published: Jun 25, 1996. Publicly Released: Jul 22, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed the U.S. Postal Service's (USPS) controls over postage paid on presorted and barcoded mail, focusing on whether USPS controls ensure that mailer-claimed discounts are earned.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| United States Postal Service | The Postmaster General should direct bulk mail acceptance program supervisors and managers to periodically report to appropriate Postal Service levels on operation of the bulk mail acceptance system, initiatives, and the progress and effectiveness of related improvements so management can be reasonably assured that required mail verifications, including supervisory reviews, are done and that the results are documented as required. |
Closed – Implemented
The Postmaster General advised that the Postal Service has implemented reporting requirements on bulk mail acceptance activities. At the local level, detailed results on verifications of mailers' statements are to be regularly reported. Higher-level management officials are to audit the operations of large acceptance units. Acceptance units are to perform periodic self-audits, and the Postal Inspection Service is doing a National Coordination Audit of the bulk mail acceptance function.
|
| United States Postal Service | The Postmaster General should direct bulk mail acceptance program supervisors and managers to periodically report to appropriate Postal Service levels on operation of the bulk mail acceptance system, initiatives, and the progress and effectiveness of related improvements so management can be reasonably assured that mailings resubmitted following a failed verification are reverified and errors are corrected. |
Closed – Implemented
The Postal Service said that information on the extent and results of verifications is now available on its internal Executive Information System to allow immediate access by field managers responsible for managing this process. Also, reports of verifications are rolled up at the national level.
|
| United States Postal Service | The Postmaster General should direct bulk mail acceptance program supervisors and managers to periodically report to appropriate Postal Service levels on operation of the bulk mail acceptance system, initiatives, and the progress and effectiveness of related improvements so management can be reasonably assured that acceptance clerks and supervisors are provided with adequate, up to date procedures, training, and tools necessary to make efficient and objective verification determinations. |
Closed – Implemented
In a September 5, 1997, letter to the Chairman of the House Subcommittee on the Postal Service, the Postal Service stated that it had just completed refresher training for all Managers, Business Mail Entry, to ensure all available tools are utilized. In addition, the Service reported that risk-based verification procedures had been implemented nationwide and Business Mail Entry reports were being rolled up at the national level.
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| United States Postal Service | The Postmaster General should direct bulk mail acceptance program supervisors and managers to periodically report to appropriate Postal Service levels on operation of the bulk mail acceptance system, initiatives, and the progress and effectiveness of related improvements so management can be reasonably assured that information on the extent and results of verifications, including supervisory reviews, is regularly reported to appropriate levels, including Postal Service headquarters, and that such information is used regularly to assess the adequacy of controls and staffing, training needs, and acceptance procedures. |
Closed – Implemented
The Postal Service implemented various reporting requirements on verifications of mailings, including supervisory reviews of such verifications. Such reports are to be used at several management levels to assess mail acceptance operations.
|
| United States Postal Service | The Postmaster General should direct bulk mail acceptance program supervisors and managers to periodically report to appropriate Postal Service levels on operation of the bulk mail acceptance system, initiatives, and the progress and effectiveness of related improvements so management can be reasonably assured that risk becomes the prominent factor in determining mailings to be verified. |
Closed – Implemented
The Service reported to the Chairman of the House Subcommittee on the Postal Service in a letter dated September 5, 1997, that risk-based verification procedures were implemented nationwide and that Business Mail Entry reports were being rolled up at the national level.
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| United States Postal Service | The Postmaster General should direct bulk mail acceptance program managers to develop methodologies that can be used to determine systemwide losses associated with accepting improperly prepared mailings. |
Closed – Not Implemented
In a letter dated September 5, 1997, the Postal Service stated that rather than developing methodologies to determine systemwide losses, it wanted to focus on identifying systemwide opportunities to improve its revenue protection processes.
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Government sponsored enterprisesStaff utilizationInternal controlsLossesPostal ratesRisk managementMail processing operationsPostal serviceData errorsControl systems