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Postal Inspection Service Provide Statistics and Activities for the 6-Month Period of April 1 Through September 30, 2009

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Postal Inspection Service Provide Statistics and Activities for the 6-Month Period of April 1 Through September 30, 2009 Semiannual Report on the Audit, Investigative, and Security Activities of the United States Postal Service April 1 – September 30, 2009 Cover photos by Gerald Merna at the National Postal Museum in Washington, DC www.postalmuseum.si.edu MESSAGE FROM THE INSPECTOR GENERAL AND THE CHIEF POSTAL INSPECTOR In this report, the U.S. Postal Service Offi ce of Inspector General (OIG) and the U.S. Postal Inspection Service provide statistics and activities for the 6-month period of April 1 through September 30, 2009. New to this issue are fi scal year summary results for October 1, 2008, through September 30, 2009. The fi rst section of the report highlights audits and reviews by the OIG’s Offi ce of Audit (OA) that address key Postal Service risks through audit work. Postal Service executives often work closely with their OIG counterparts to identify problems and collaborate on solutions. These efforts have resulted in signifi cant savings opportunities. During this period, OA issued 167 audit reports and management advisories, and the Postal Service accepted 87 percent (187 of 216) of the OIG’s signifi cant recommendations. The second section of the report features investigative work conducted by the Postal Inspection Service and the OIG’s Offi ce of Investigations to preserve the sanctity of the mail, protect the integrity of postal personnel, and safeguard employees and customers. The third section describes the Postal Inspection Service’s security investigations, projects, and initiatives addressing protection for all postal employees, customers, facilities, revenue, and assets. During this reporting period, Postal Inspectors and Special Agents closed 6,266 investigations. The investigations led to 3,860 arrests and more than $963 million in fi nes, restitutions, and recoveries, of which more than $12.5 million went to the Postal Service. Both the OIG and the Postal Inspection Service play a key role in ensuring America’s confi dence in the mail and maintaining the integrity and accountability of the postal system, revenue, assets, and employees. With the support of the Governors, Congress, and Postal Service management they will continue to help ensure that the Postal Service will exist into the next decade and beyond. David C. Williams William R. Gilligan Inspector General Chief Postal Inspector SUMMARY OF PERFORMANCE April 1 – September 30, 2009 AUDIT Reports issued 167 Signifi cant recommendations issued 216 Total reports with fi nancial impact 71 Funds put to better use $7,665,457,764 Questioned costs1 $1,266,278,769 Revenue Impact $527,010,403 TOTAL2 $9,458,746,936 INVESTIGATIONS3 Investigations completed 6,266 Arrests 3,857 Indictments/informations 2,123 Convictions/pretrial diversions4 3,928 Administrative actions 1,440 Cost avoidance $112,029,808 Fines, restitutions, and recoveries $963,126,807 Amount to Postal Service5 $12,531,510 OIG HOTLINE CONTACTS Telephone calls 47,526 E-mail 15,569 Virtual Front Offi ce calls 1,372 Standard Mail 1,183 Voice mail messages 585 Facsimile 318 National Law Enforcement Communications Center 295 TOTAL CONTACTS 66,848 1 Includes unsupported costs of $50,354,832. 2 The Postal Service agreed to recommendations or proposed alternative corrective actions that, if implemented, could result in nearly $9.5 billion in savings. 3 Statistics include joint investigations with other law enforcement agencies. 4 Convictions reported in this time frame may be related to arrests made in prior reporting periods. 5 Amount included in fi nes, restitution, and recoveries. TABLE OF CONTENTS AUDIT WORK BY RISK CATEGORY ........................................................ 1 Strategic Risk .............................................................................................................................................................. 1 Financial Risk .............................................................................................................................................................. 3 Operational Risk ........................................................................................................................................................... 5 INVESTIGATIONS ................................................................................. 13 Revenue and Asset Protection ..................................................................................................................................... 13 Workers’ Compensation Fraud .................................................................................................................................... 15 Delay, Destruction, and Theft of Mail ........................................................................................................................... 18 Identity Theft .............................................................................................................................................................. 21 Mail Fraud ................................................................................................................................................................. 22 Money Laundering ..................................................................................................................................................... 23 Contract Fraud ........................................................................................................................................................... 23 Robberies .................................................................................................................................................................. 24 Burglaries .................................................................................................................................................................. 25 Dangerous Mail Investigations..................................................................................................................................... 26 Child Exploitation via the Mail...................................................................................................................................... 28 Narcotics Traffi cking ................................................................................................................................................... 29 Offi cial Misconduct .................................................................................................................................................... 30 Homicides, Assaults, and Threats ................................................................................................................................ 30 Executive Investigations and Internal Affairs ................................................................................................................. 31 SECURITY AND CRIME PREVENTION .................................................. 33 Security ..................................................................................................................................................................... 33 National Preparedness ............................................................................................................................................... 34 Global Security and Investigations ............................................................................................................................... 36 Cyber Intelligence ...................................................................................................................................................... 37 Consumer Education and Fraud Prevention .................................................................................................................. 39 SPECIAL FEATURES............................................................................... 2 Estimate of Postal Service Liability for Retiree Health Care Benefi ts ................................................................................. 2 Operational Effi ciency ................................................................................................................................................. 11 OIG Kicks Off OWCP Fraud Awareness Campaign ........................................................................................................ 15 OIG Establishes a Major Fraud Investigations Division ................................................................................................... 23 APPENDICES ....................................................................................... 43 APPENDIX A — Reports Issued to Postal Service Management .................................................................................... 43 Reports with Quantifi able Potential Monetary Benefi ts ................................................................................................ 44 Report Listing .......................................................................................................................................................... 47 APPENDIX B — Findings of Questioned Costs ............................................................................................................. 50 APPENDIX C — Recommendations That Funds Be Put to Better Use ............................................................................. 51 APPENDIX D — Reported Non-monetary Benefi ts ........................................................................................................52 APPENDIX E — Reports with Signifi cant Recommendations Pending Corrective Actions ................................................
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