Federal Manager's Daily Report

Budget constraints have impacted the Postal Service’s ability to fund repairs, alterations, and capital improvements, the USPS inspector general has found.

It said that from fiscal 2009 – 2012, financial challenges have led to a $382million decrease in the budget to facilities for maintenance.

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In fiscal 2012, USPS spent $266 million (29 percent) below the industry average on facility repairs, over a dollar less per square foot. As a result, in fiscal 2011 and 2012, facilities did not complete 19,033 repairs (18 percent) estimated to cost $271 million, according to the IG.

It said half of those incomplete repairs represented safety, security, and potential future major repairs, and future costs for these unfunded repairs could reach $1.4 billion.

Postal management agreed with recommendations to develop a strategy and reallocate funds to complete repairs and establish written procedures to accurately classify repairs and reconcile prioritization lists annually.