The Postal Service inspector general has issued a management alert calling on USPS to immediately recover overpayments due from suppliers.
According to the IG, USPS did not properly identify and recover about $9.9 million in fuel overpayments to suppliers for fuel year 2009-2010 and failed to collect them because the reconciliation process was not reasonably conducted and documented.
It said the process lacked detailed documentation (including for actual gallons purchased) to support fuel pooling by suppliers and the gallons that suppliers used over their allotted amount to determine the fuel overpayments.
The process also lacked summarized calculations showing that all gallons and contracts were reconciled and accounted for. For example, the IG said there was no complete list and count of all supplier contracts and their annual contract gallon allowances and purchases, or documentation on the negotiations and disposition on overpayments and collection.
Postal management agreed to re-conduct the 2009-2010 Voyager Card Program reconciliation and collect overpayments, but it does not think the discrepancy is as big as the IG’s estimates.