Background
The Postal Accountability and Enhancement Act of 2006 (PAEA) requires the U.S. Postal Service to produce an Annual Compliance Report (ACR) and provide the report to the Postal Regulatory Commission (PRC) within 90 days of the end of each fiscal year (FY). In support of the ACR, the Postal Service provides billing determinant spreadsheets to the PRC. Postal Service management prepares billing determinant spreadsheets quarterly and at the end of each fiscal year. Billing determinants report the volume by rate, weight, and calculated revenue and compares the result to the reported Revenue Pieces and Weight volume. In its annual report to the PRC, the Postal Service is required to use only accepted analytical principles.
On July 9, 2023, the Postal Service introduced USPS Ground Advantage, which ships packages in two-to-five business days across the continental United States. USPS Ground Advantage provides businesses and the public with a ground shipping option using Postal Services’ last-mile delivery route system.
What We Did
We performed this audit as part of our mandate under PAEA to regularly audit Postal Service data collection systems and procedures used in collecting information to prepare annual reports to the Commission. Our objective was to assess the billing determinant calculation processes for Ground Advantage. We recalculated the Ground Advantage billing determinants for Quarter 4 of FY 2023 and Quarters 1 and 2 of FY 2024.
What We Found
The Postal Service Ground Advantage billing determinant calculation process was generally effective; however, the USPS Ground Advantage standard operating procedures did not include all calculation procedures. Specifically, we found the USPS Ground Advantage standard operating procedures did not include COVID-19 test kit volume procedures used for calculating the billing determinants.
Recommendations and Management’s Comments
During fieldwork, management implemented corrective action, and accordingly, U.S. Postal Service Office of Inspector General did not make any recommendations. Management agreed with the finding.
