Federal Reports

This report presents the results of our audit of the Postal Automated Redirection System. 

The Postal Automated Redirection System (PARS) was deployed in 2007 to handle letter mail that cannot be delivered to the name and address on the mailpiece. Mail sorting equipment can automatically intercept mail with an active Change of Address (COA), and PARS sorting equipment can forward it to the new destination, reducing additional mail handling. If mail that is undeliverable as addressed is not intercepted during the automated process, a carrier at the delivery unit can identify it as either forwardable — with a valid COA — or as return to sender and send it back to the plant for further processing. With the average American moving 11.7 times in their lifetime, the Postal Service must effectively handle PARS mail to ensure timely delivery of essential communications, such as bills, checks, and court documents. 

Our objective was to assess the effectiveness of procedures for processing and handling PARS mail. To accomplish our objective, we conducted interviews with U.S. Postal Service Headquarters management, obtained and analyzed PARS related data for fiscal years (FY) 2023 and 2024, and determined avoidable costs incurred due to identified issues. 

This report presents the results of our audit of Efforts to Reduce Workhours in Mail Processing.

The U.S. Postal Service’s mail processing function involves the sortation and distribution of mail for dispatch and delivery. During fiscal year (FY) 2024, more than 107,000 employees worked in the mail processing function. Based on workhour plans, which the Postal Service develops as part of its annual budget process, the Postal Service planned to reduce mail processing workhours by more than 28 million hours between FYs 2022 and 2024.

Our objective was to assess the Postal Service’s efforts to reduce workhours in mail processing. We analyzed trends in mail processing workhours, volume, and productivity, and we compared actual workhours to workhour plans during FYs 2022 through 2024. Also, we interviewed headquarters personnel to gain an understanding of the workhour planning process and workhour reduction efforts. Further, we interviewed personnel at nine judgmentally selected mail processing plants, and 10 judgmentally selected processing divisions regarding mail processing workhour management.

Although management reduced workhours in mail processing facilities by more than 17 million hours during FYs 2022 through 2024, there may be opportunities to further reduce workhours by stabilizing or improving productivity. The workhour reductions included a 5 percent decrease in overtime hours; however, mail processing facilities used 10.8 million more hours than planned, which resulted in at least $174.8 million in additional cost. While productivity slightly increased during FY 2024, some mail processing facilities still saw declines in productivity during that year. Opportunities exist for management to more effectively plan for workload shifts and operational challenges during initial workhour planning and to improve mail processing productivity. The Postal Service spent an additional $63.6 million in FY 2024 to cover the additional workhours.

Our Objective(s)To determine (1) whether Bowman & Company, LLPs work complied with the Single Audit Act of 1984, as amended, and the Office of Management and Budget's Uniform Guidance, and the extent to which we could rely on the auditor's work on the U.S. Department of Transportations (DOT) major programs, and (2) whether the Delaware River Port Authoritys reporting package complied with the reporting requirements of the Uniform Guidance.
Why This AuditDuring the fiscal year that ended on December 31, 2022, the Delaware River Port Authority expended approximately $32 million from DOT programs. Bowman & Company determined DOTs major programs were FTAs Federal Transit Cluster, FHWAs Highway Planning and Construction Cluster, and OSTs National Infrastructure Investments Discretionary Grant Program. We performed a quality control review on the single audit conducted by Bowman & Company to ensure compliance with all Federal laws and regulations.
What We FoundReview of Audit Work

Bowman & Company complied with the requirements of the Single Audit Act, the Office of Management and Budget's Uniform Guidance, and DOTs major programs.
We found nothing to indicate that Bowman & Companys opinion on DOT's major programs was inappropriate or unreliable.

Review of Reporting Package

We did not identify any deficiencies that required correction and resubmission of the Port Authoritys reporting package.

RatingWe assigned Bowman & Company an overall rating of Pass.