Background
The Inflation Reduction Act (IRA), enacted in August 2022 as Public Law 117-169, appropriated $3 billion to the U.S. Postal Service to assist with its delivery fleet modernization. The Act provides the Postal Service $1.29 billion in funding for the procurement of zero-emission delivery vehicles (electric vehicles) and $1.71 billion in funding for the purchase, design, and installation of the necessary charging infrastructure at Postal Service facilities.
The Postal Service received funds on September 21, 2022. The funds are held by the U. S. Department of the Treasury and remain available through September 30, 2031. As of February 2024, the Postal Service had disbursed $112.3 million from IRA funds. Of that amount, $70.9 million was used for equipment and $41.5 million was used for infrastructure services. The Postal Service has not used IRA funds to pay for electric vehicles yet.
What We Did
Our objective was to assess the invoice and payment processes for the IRA funds. We reviewed IRA invoices from September 21, 2022, through February 29, 2024, and tested samples of invoices, invoice adjustments, and payments processed and performed control testing during this period.
What We Found
We found that the invoices we sampled were properly approved for payment and were allowable under IRA. In addition, applicable controls were effective to ensure proper payments. However, during the audit, management identified an instance in which an invoice in the amount of $7,684.36 was incorrectly paid using IRA funds. We found that management took appropriate action to correct the payment classification and strengthen related controls.
Recommendations and Management’s Comments
Based on the audit results, we did not offer any recommendations. Management agreed with the finding.
