U.S. Postal Service: Revenue Losses From Express Mail Accounts Have Grown
GGD-97-3
Published: Oct 24, 1996. Publicly Released: Oct 24, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed the U.S. Postal Service's controls over Express Mail Corporate Accounts (EMCA), focusing on: (1) whether there is any basis for the allegation of EMCA abuse; and (2) if so, what steps the Service is taking to help avoid or minimize EMCA revenue losses.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| United States Postal Service | To help reduce revenue EMCA losses and other related problems, the Postmaster General should require Service executives to determine if EMCA are the most cost effective method for achieving the purpose for which they were intended, in light of all relevant factors. |
The Postal Service responded in a letter dated January 7, 1997, to Chairman McHugh that it has decided to continue to allow customers to use EMCAs.
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| United States Postal Service | If EMCA are determined to be a necessary or desirable method, the Postal Service should: (1) establish stronger requirements for opening EMCA; and (2) hold managers and employees accountable for handling EMCA transactions in accordance with the new requirements as well as existing Service policies and procedures for verifying EMCA numbers, closing EMCA with negative balances, and recording required data for all Express Mail packages accepted. |
The Postal Service implemented revised regulations that went into effect as of March 27, 1997, to ensure proper accounting procedures are in place to reduce uncollectible EMCA revenue. The new regulations: (1) required postal service employees to verify the mailing address on new account applications to ensure the service can collect the postage due; (2) increased the initial deposit required to open an EMCA to $250 or the total of 4 weeks expected postage and fees, whichever is higher; (3) increased the minimum account balance to $250 or 4 weeks' average postage and fees; and (4) permitted the Service to close any EMCA that remains below the minimum account balance for two consecutive accounting periods.
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