Mail Management: Labor Programs Run by States Could Reduce Postage Costs
GGD-91-43
Published: Mar 20, 1991. Publicly Released: Mar 20, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed Department of Labor (DOL) opportunities to reduce postage costs through improved mail management operations at State Employment Security Agencies (SESA).
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should encourage SESA to obtain postage discounts by revising the allocation formula for reimbursing SESA administrative costs so that SESA that do realize postage savings are rewarded directly, through increased funding of their administrative costs. |
DOL agrees with the recommendation, but is waiting for the Postal Service to change procedures to require direct accountability. DOL has issued draft guidance on direct accountability to all SESA. DOL should convert to direct accountability by October 1, 1994. Any potential savings would have to be reevaluated after fiscal year 1995.
|
| Department of Labor | The Secretary of Labor should encourage SESA to presort mail and include the nine-digit ZIP code on their mail. If the funds needed to buy presorting equipment are not available, SESA should be encouraged to contract for presorting services as an alternative. |
DOL provided SESA with the funds to automate mailing operations in February 1992.
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Topics
Administrative costsCost controlEmployment assistance programsstate relationsGrants to statesMail transportation operationsMechanizationPostal servicePostal service contractsState-administered programs