FF-AR-07-075 Fiscal Year 2006 Financial Installation Audit – Contract Postal Units

January 25, 2007 LYNN MALCOLM VICE PRESIDENT, CONTROLLER KATHY AINSWORTH ACTING VICE PRESIDENT, DELIVERY AND RETAIL SUBJECT: Audit Report – Fiscal Year 2006 Financial Installation Audit – Contract Postal Units (Report Number FF-AR-07-075) This report presents the results of our audits of 16 statistically selected contract postal units (CPU) during fiscal year 2006 (Project Number 06BD003FF000, formerly Project Number 06XD003FF000). We conducted the audits to support the audit of the U.S. Postal Service financial statements. Based on the items we reviewed, financial transactions were reasonably and fairly presented in the accounting records, and, generally, the internal controls we examined were in place and effective. However, the CPUs had internal control and compliance issues related to cash and stamp accountability, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx, 1and the xxxxxxxxxxxxxxxxxxxxxxxx. We made recommendations to district management addressing the findings at each unit. District management’s comments were responsive to our findings and recommendations and the actions taken or planned should correct the issues identified at these installations. The Postal Service reviewed a draft of this report and chose not to respond since there were no recommendations. 1 In this report, we discuss only those findings reported at three or more CPUs. Appendix B is a summary of all ...