Internal Controls Over Single Drawer Accountability - Bivalve, MD, Post Office
Background
The U.S. Postal Service Office of Inspector General (OIG) used data analytics to identify post offices with cash and stamp stock shortages. Our analytics showed the Bivalve, MD, Post Office, a remotely managed post office (RMPO), had a shortage of $3,243 or 65 percent of the office’s total authorized limit of $5,000 for cash and stamp stock.
An RMPO offers part-time window service hours, staffed by Postal Service employees who operate from a Single Drawer Accountability (SDA). An SDA comprises stamp stock, cash, and money orders specifically assigned to the office, which is overseen by an administrative post office.
The objective of this audit was to review internal controls to reduce the risk of stamp stock and cash shortages at the Bivalve Post Office.
What the OIG Found
Internal controls to reduce stamp stock and cash shortages at the Bivalve Post Office needed improvement.
We determined the $3,243 shortage was due to a burglary. However, the administrative post office postmaster (postmaster) did not notify the OIG about the shortage as required because she was not aware the requirement applied to burglaries. Further, the postmaster did not secure all door keys and the vault combination or replace bait money orders stolen during the burglary.
The postmaster stated she lost track of door key and vault combination assignments and forgot to replace bait money orders.
In addition, the postmaster did not retain required financial documents, and the sales and service associate (SSA) did not always accurately and timely report daily financial transactions, make timely deposit funds, or charge the current price for rolls of stamps.
The postmaster and the SSA were trained but unaware of the requirements for documentation retention and financial reporting. Further, the SSA stated she was aware of some of her errors but did not request assistance to correct them because she was concerned about job security.
If controls over cash and stamp stock are not followed, there is an increased risk the financial records could be misstated and theft could occur without detection.
As a result of this audit, management changed the door locks and vault combination, replaced the bait money orders and created a log to track the distribution of keys and vault combination. Also, management trained the SSA in March 2017.
What the OIG Recommended
We recommended management instruct the postmaster to notify the OIG of all shortages of $100 or more at this office. We also recommended management reiterate the documentation retention policy and verify employees accurately record financial transactions, timely deposit funds, and sell rolls of postage stamps at the current rate.