Audit Report – FT- AR-14-011 – 05/28/2014
The Postal Accountability and Enhancement Act of 2006 (Postal Act of 2006) amended 39 U.S.C and revised the cap on total compensation payable to U.S. Postal Service employees. As a result of this revision, the Postal Service could not pay an employee more than $199,700 for calendar year 2013. Exceptions allow some employees annual compensation of up to $230,700 with a Board of Governors approved bonus or reward program and allow employees in critical positions to have annual compensation of up to $276,840.
Compensation includes annual salary, merit lump sum payments, bonuses, awards, and annuity payments.
Our objective was to determine whether the Postal Service complied with the Postal Act of 2006, Postal Service policies and guidelines, and IRS regulations for compensating officers in calendar year 2013.
WHAT THE OIG FOUND:
Although the Postal Service complied with the Postal Act of 2006 and calendar year 2013 IRS regulations, it did not comply with policies requiring an officer who accepts a relocation incentive bonus to sign an employment agreement.
Specifically, management did not obtain signed 12-month employment agreements for both officers who accepted relocation incentive bonuses totaling $39,000 in calendar year 2013.
Officials were not initially aware of the requirement and acknowledged they should have obtained the agreements, which ensures officers reimburse the Postal Service if they separate after receiving a relocation bonus and before completing a minimum of 12 months of employment. Because of our audit, management took the appropriate corrective action to address the issue.
WHAT THE OIG RECOMMENDED:
Because management took corrective action, we are not making any recommendations. We will continue to monitor management’s compliance with Postal Service policy.