Management Advisory Report - Fiscal Year 2014 Statistical Tests Reviews
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 statistical 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 independent public accounting firm uses the Origin-Destination Information System-Revenue, Pieces, and Weight report 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 set procedures. In three of 15 districts reviewed, we identified four exceptions associated with two key financial reporting controls. Specifically, technicians did not always:
■ Properly enter or verify information keyed into the laptop computer (three).
■ Properly identify, isolate, and capture test mail (one).
These issues are similar to those previously reported. In response to our prior report, management began providing updated quarterly and individualized training to staff and managers on sampling methodology policies and procedures. When data collectors 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 has begun providing updated training to applicable personnel on sampling methodology policies and procedures and is updating all statistical programs handbooks. These actions are ongoing. Accordingly, we are not making any recommendations.