The objective of this audit is to determine whether internal controls for issuing refunds for walk-in revenue were in place and effective at the Carmel Mountain Postal Store, San Diego, CA.
The OIG Field Financial Risk Model identified the San Diego District as the second highest risk district for percent of refunds for walk-in revenue to total walk-in revenue (.388 percent) at the end of fiscal year (FY) 2017, quarter (Q) 4.
The Carmel Mountain Postal Store made $60,932, or 40.1 percent, of all refunds for walk-in revenue for the San Diego District, in FY 2017, Q4. It was selected because its refund and void dollar amount exceeded $100,000, an increase of 45 percent from FY 2016.
The audit team reviewed all 194 refund stamps and fee transactions, totaling $46,330, for the months of July 2017 and September 2017.
What the OIG Found
Internal controls for refunds for walk-in revenue were in place and functioning at the Carmel Mountain Postal Store. However, unit personnel did not always properly complete refund claims.
Specifically, the unit did not notate the account identifier code in the ‘Request Disbursement For’ section in 30 of 194 refund claims reviewed.
When the type of refund expense is not recorded properly, the Postal Service risks using inaccurate and unreliable refund data to monitor performance.
What the OIG Recommended
We recommended district management reiterate the requirements for properly completing the refund claim form.