GPO Mailroom: March

U.S. GOVERNMENT PUBLISHING OFFICE

OFFICE OF INSPECTOR GENERAL

AUDIT REPORT REPORT NUMBER 15-07

GPO Mailroom: Controls over Express Package Processing

March 24, 2015

U.S. GOVERNMENT PUBLISHING OFFICE

OFFICE OF INSPECTOR GENERAL

Date March 24, 2015 To Chief Financial Officer From Inspector General Subject: Audit Report--GPO Mailroom: Controls over Express Package Processing Report Number 15-07

Enclosed please find the subject final report. Please refer to the "Results in Brief" for the overall audit results. Our evaluation of your response has been incorporated into the body of the report. We consider management's comments responsive to the recommendations. The recommendations are resolved and will remain open for reporting purposes pending completion of the proposed actions.

We appreciate the courtesies extended to the audit staff during our review. If you have any questions or comments about this report, please do not hesitate to contact me at (202) 512-0039.

MICHAEL A. RAPONI Inspector General

Attachment

cc: Director, GPO Deputy Director, GPO General Counsel Chief of Staff Chief Administrative Officer

Contents Introduction ................................................................................................................................................. 1 Results in Brief ............................................................................................................................................ 2 Background................................................................................................................................................... 4 Results and Recommendations............................................................................................................7 Appendix A ? Objectives, Scope, and Methodology .................................................................. 11 Appendix B ? Management's Response ......................................................................................... 13 Appendix C ? Status of Recommendations................................................................................... 15 Appendix D ? Unaccounted For Packages (August and September 2014) .................... 16 Appendix E ? Report Distribution.................................................................................................... 17 Major Contributors................................................................................................................................. 18

Office of Inspector General

Report Number 15-07

March 24, 2015

GPO Mailroom: Controls over Express Package Processing

Introduction

The Office of Inspector General (OIG) conducted an audit to evaluate the policies, procedures, and activities designed to maintain accountability over express package processing. We initiated the audit after receiving several reports of missing items. In July 2014, a package containing a label/writer was reported as missing. And in October 2014, a package containing a sample of a U.S. Capitol Police uniform was reported as missing.

Typically, packages are received by Central Receiving, transferred to the mailroom, processed through the mailroom, and delivered to the appropriate recipient. To track packages, GPO uses Pitney Bowes SendSuiteTM Arrival? Inbound Package Tracking Software. In fiscal year 2014, the Central Receiving Section (Central Receiving) at GPO transferred 6,100 express packages to the mailroom for delivery to recipients. Generally, express delivery packages (such as Federal Express [FedEx] and the United Parcel Service [UPS]) are delivered to Central Receiving and subsequently transferred to the mailroom. Within GPO, the Office of Finance and Administration is responsible for processing and delivering express packages and incoming mail to the appropriate recipients. However, GPO plans to transfer its mail room operations to the Chief Administrative Officer in the future.

To accomplish our objective, we reviewed the reports prepared on the missing packages; assessed policies and procedures in place for processing express packages; traced and analyzed packages received in August and September 2014; and interviewed various staff to gain an understanding of GPO's processes related to express package processing. We conducted this audit from November 2014 through February 2015 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence that will provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives and limited scope. See Appendix A for details of our objective, scope, and methodology.

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Results in Brief

While a process1 for delivering express packages was in place, mailroom personnel did not always follow the procedures. For example, a review of all packages received during August and September 2014 revealed the following:

Of the 1,088 packages transferred to the mailroom from Central Receiving, 45 (4 percent) could not be accounted for and GPO could not provide the status and/or final disposition of the 45 packages.

Of the 1,088 packages transferred to the mailroom from Central Receiving, 52 (5 percent) were missing recipient signatures that document receipt of the packages.

For the 1,088 packages, no packages were scanned to reflect they left the mailroom and were "enroute" for delivery.

End-of-day reconciliations were not always performed.

We also noted that written mailroom procedures need strengthening. While existing procedures outlined steps for processing and delivering packages, those same procedures did not address key actions, such as steps personnel take when a package cannot be delivered after several attempts, the length of time a package is held before it is returned, circumstances when packages are recorded as "delivered" when a corresponding signature does not exist, and steps to take to locate missing packages.

These deficiencies were generally due to resource constraints and competing priorities. As a result, GPO lacks reasonable assurance and safeguards for protecting assets against waste, loss, unauthorized use, and misappropriation.

Recommendations

We recommend that the Chief Financial Officer: (1) establish a process to reconcile packages received by Central Receiving with packages recorded in the mailrooms Arrival? Inbound Package Tracking Software, (2) expand upon current written procedures to detail undelivered packages, holding periods, recipient signature requirement, and missing package processing, and (3) ensure staff follow written procedures to ensure recipient signatures are obtained to document receipt of a package, are scanned to reflect a package was removed from the mailroom and enroute for delivery, and document reconciliations of end-of-day undelivered packages.

1 Mailroom Procedure, Delivering Express Packages, Effective May 1, 2007.

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