Federal Reports

This management alert presents issues the U.S. Postal Service Office of Inspector General (OIG) identified during the Channel Partner Visibility and Compliance audit (Project Number: 22-069). Our objective is to provide notification of these issues for accelerated attention and action. Specifically, we found material weaknesses in internal controls over the U.S. Postal Service’s Channel Partner programs.In recent years, the Postal Service designed a strategy to address issues related to its relationships with Channel Partners. Most recently, the Postal Service issued termination letters for its Resellers’ contracts, effective September 30, 2022. The Postal Service established the USPS Connect eCommerce program in May 2022, to foster direct relationships with partners, including those that previously worked through Resellers. Although termination of the Resellers’ contracts addresses some of the issues we have identified, it does not mitigate other risks that could continue with implementation of the Connect eCommerce program.See Appendix A for additional information about this management alert.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The Office of Inspector General is required by statute to report annually the most serious management and performance challenges facing the U.S. Department of Commerce (the Department). Attached is our final report on the Department’s top management and performance challenges for fiscal year 2023.