Background
The Postal Service operates approximately 31,000 retail units that provide services to customers nationwide. Retail unit employees are required to adhere to policies and procedures regarding financial reporting and the safeguarding of assets. All retail units must report their financial activity to Accounting Services daily, and retail unit management is responsible for the security of accountable items. Controls over these processes are essential for ensuring financial information is reliable and assets are protected. During a prior audit, we identified potential security matters and financial control issues at selected retail locations. As a result, we visited 10 additional retail units to determine compliance with policies and procedures and whether issues were remediated.
What We Did
Our objective was to determine compliance with policies and procedures regarding financial controls and safeguarding assets at selected Postal Service retail units. Specifically, we interviewed Postal Service management and retail associates, observed the safeguarding of assets, reviewed Postal Service (PS) Form 1412 supporting documentation, and inventoried arrow keys present at the retail units.
What We Found
Selected Postal Service retail units were not always in compliance with policies and procedures regarding financial controls and safeguarding assets. Specifically, retail associates did not always complete supporting documentation for refunds and voids, as required. Of the 553 amounts we reviewed, 122 (22 percent) did not have the required supporting documentation, and 163 (29 percent) had incomplete or inaccurate supporting documentation. In addition, unit management did not properly manage the certification of arrow keys. A total of 84 arrow keys were listed as either “in use” or “in vault” but not found; 37 arrow keys were found but not listed on the report; and 10 arrow keys’ status was incorrect. Further, unit management and retail associates did not always adequately secure accountable items, as required by policy.
Recommendations and Management Comments
We made four recommendations to address the issues identified in the report. Postal Service management agreed with all four recommendations, and its comments and our evaluation are at the end of each finding and recommendation. We consider management’s comments responsive, as corrective actions should resolve the issues identified in the report.
