FF-AR-09-052 - Fiscal Year 2008 Financial Installation Audit - Business Mail Entry Units

December 22, 2008 PRITHA N. MEHRA VICE PRESIDENT, BUSINESS MAIL ENTRY & PAYMENT TECHNOLOGIES KATHLEEN AINSWORTH VICE PRESIDENT, RETAIL OPERATIONS SUBJECT: Audit Report – Fiscal Year 2008 Financial Installation Audit – Business Mail Entry Units (Report Number FF-AR-09-052) This report summarizes the results of financial audits we conducted at 96 statistically selected business mail entry units (BMEU) for fiscal year (FY) 2008 (Project Number 08BD002FF000). We conducted these audits in support of the audit of the U.S. Postal Service’s financial statements. The Postal Reorganization Act of 1970 requires annual audits of the U.S. Postal Service’s financial statements. See Appendix A for additional information about this audit. Conclusion Based on the items we reviewed at 96 BMEUs, financial transactions were reasonably and fairly presented in the accounting records and, generally, the internal controls we examined were in place and effective. However, we identified four locations where 1major controls were not effective. In addition, we identified various internal control and compliance issues related to managing customer accounts and eligibility; accepting, verifying, and clearing the mail; monitoring Special Postage Payment System (SPPS) agreements and authorizations; and protecting Postal Service revenue. Although internal controls were generally in place and effective, a significant deficiency continues ...