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Audit Reports

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Dec
18
2015
Report Number:
FT-FO-16-001
Report Type:
Audit Reports
Category: Finance

Management Advisory - Fiscal Year 2015 Statistical Test Review

Background

The Postal Accountability and Enhancement Act of 2006 requires the U.S. Postal Service to report its annual revenue and mail volume to the Postal Regulatory Commission. The Origin-Destination Information System-Revenue, Pieces, and Weight is a continuous, national probability statistical sampling system that provides estimates of destinating mail revenue, volume, and weight. The Postal Service uses the data to develop new postage rates, conduct studies, prepare its budget, and support decisions on mail operations.

As part of this process, data collection technicians conduct statistical mail tests. The tests include sampling live mail and collecting data to estimate stamp use to calculate postage bought by the public but not used.

The U.S. Postal Service Board of Governors contracted with an independent public accounting firm to express opinions on financial statements and internal controls over financial reporting. The firm uses the Origin-Destination Information System-Revenue, Pieces, and Weight data to support its opinions. The U.S. Postal Service Office of Inspector General coordinates audit work with the independent public accounting firm to ensure adequate coverage.

Our objective was to determine whether the Postal Service conducted statistical mail tests in accordance with established policies and procedures.

What The OIG Found

Data collection technicians did not always conduct system tests in accordance with policies and procedures. We observed 45 tests in 15 districts and identified exceptions in three tests in three districts. Specifically, the technicians did not always:

┬ª Properly identify, isolate, and capture the correct test mailpieces.

¦ Properly enter or verify data keyed into the laptop computer.

These issues are similar to those previously reported. In response to our prior report, management provided training and published updated draft versions of statistical programs handbooks.

When data collection technicians do not properly collect or report test data, there is increased risk management relies on incorrect data to support decisions concerning mail operations.

What The OIG Recommended

Management discussed the issues identified during its National Statistical Programs Quarterly Training held the week of August 17, 2015, and provided process review training to all attendees. Accordingly, we are not making any recommendations at this time.

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