This alert responds to concerns brought to our attention regarding the Kansas City, MO, Stamp Fulfillment Services’ (SFS) handling and storage of the U.S. Postal Service’s off-sale inventory. Our objective was to evaluate internal controls over off-sale retail merchandise and accountable paper stored at the Kansas City SFS.
The Postal Service needs to improve controls over off-sale inventory at the Kansas City SFS. Management did not follow policies to dispose of off-sale inventory in the best interests of the Postal Service. Further, management provided Harry Potter stamps at a discount to Royal Mail without Postal Service Headquarters’ knowledge or approval. Headquarters contributed to these issues by providing inadequate oversight of management’s activities. As a result, management used off-sale inventory for improper purposes and is at risk of losing revenue of $24,371 for the Harry Potter stamps they provided to Royal Mail.
Read full report
Source: USPS Office of Inspector General