Grassley Keeps Focus on Financial Management at Postal Service
Grassley Keeps Focus on Financial Management at Postal Service
Sen. Chuck Grassley is keeping pressure on the Postal Service by asking for reports on how the Service is improving financial management following recent news of a possible postal rate increase and excessive payments by the Service when its employees relocate.
Grassley said he wants to shine the spotlight on the Postal Service to make sure any increase in the cost of stamps is not wasted by poor management. Earlier this month, Grassley complained about the Postal Service giving its employees an extra allowance for relocation expenses, totaling as much as $25,000, on top of reimburseable relocation expenses related to shipping household items or the sale of a home, for example. There is no requirement made of Postal Service employees to show that the extra allowance he questioned was used for relocation-related expenses.
Grassley is chairman of the Senate Committee on Finance. A copy of Grassley's request to the Inspector General for the Postal Service follows here, along with his May 4 news release regarding this issue.
May 31, 2005
The Honorable David Williams
United States Postal Service Office of Inspector General
1735 N. Lynn Street
Arlington, VA 22209-2020
Dear Mr. Williams:
Recently, as Chair of the Senate Finance Committee (Committee), I questioned the Postmaster General for awarding what I believe are unnecessarily generous miscellaneous relocation payments to senior executives, some of whom moved only a few miles. In addition, recent reports by the Government Accountability Office (GAO) and in the press suggest that the
United States Postal Services (USPS) is facing a major financial crisis.
At a time when the financial footing and operational structure of the United States Postal Service (USPS) are being questioned and postal rates are increasing, it is essential that the USPS effectively ensure that it incurs only costs essential to effective operations. How the USPS manages its finances has a direct impact on the cost of postage to American citizens. The USPS
recently proposed an increase in postage rates to replenish its escrow fund and a similar increase is anticipated in 2006.
I understand that the USPS OIG is currently developing an overall strategic audit plan of action to implement current pending legislation that will require it to review the various systems that are used to allocate cost and revenue in the rate making process. Accordingly, as Chairman of the Committee, I request that the USPS OIG provide this committee with the results of those audits as they are completed to ensure that the rate increases are properly supported by data systems. In addition, I ask that you determine whether efficiencies and cost savings the Postal Service has realized over the past few years are appropriately factored into the rate making process.
Thank you in advance and I greatly appreciate your continued assistance in ensuring accountability in government.
Sincerely,
Charles E. Grassley
Chairman
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http://finance.senate.gov/press/Gpress/2005/prg053105.pdf