OIG: Postal managers buying TiVos, video games, designer watches with postal funds
TweetThe following is excerpted from USPS OIG Report FF-MA-09-002:
Employees have made, and are continuing to make, imprudent and unnecessary purchases during a time of severe economic uncertainty in the Postal Service. While such purchases are generally not in direct violation of Postal Service policies, they conflict with the Postal Service’s objective of driving down costs in all operations and processes. Moreover, the public’s view of such imprudent purchases could have a detrimental effect on the Postal Service’s public image due to the perception that the
agency is using funds from sales of stamps to purchase expensive items.
Imprudent Purchases Made by Postal Service Employees
Employees have made purchases, primarily gifts and items for meetings, which we believe are imprudent and unnecessary during a time of severe economic uncertainty in the Postal Service. In a recent report on the Postal Service’s progress in the areas of network strength, realignment planning, accountability, and improved communication, the Government Accountability Office (GAO) stated the Postal Service “must increase efficiency and decrease costs across all its operations” in order to respond to declining mail volumes. In addition, the Vice President, Controller, has directed employees to “continue efforts to control expenses” by making “prudent choices and deferring or eliminating non-critical activity.” Some examples of imprudent purchases we identified follow.
Employees put these purchases into the eAwards System (eAwards):
1. Electronic and household items such as Global Positioning Systems (GPS), navigational systems, video game consoles, camcorders, digital cameras, personal computers, printers, an espresso machine, and a TiVo® system given as employee awards/recognition, purchased in late fall 2007, and costing a total of $93,234.
2. Thirteen 23-inch high-definition televisions given as employee awards, purchased in fall 2007, and costing $6,435.
3. Three designer watches given as employee awards, purchased in fall 2007, and costing $4,370.
Employees did not put these purchases into eAwards:
4. Carnival type games and amusements for an employee appreciation and family day event, purchased in fall 2007, and costing $7,995. Cardholders are not required to put purchases related to employee appreciation into eAwards.
5. A 2-day year-end meeting held in November 2007 by one area costing $26,884, including the cost of breakfast, lunch, and dinner; meeting rooms; audio-visual equipment; and incidentals such as baggage handling and gratuities for 60 people. The purchase included lodging for 14 attendees whose duty station was less than 50 miles from the meeting place. Cardholders were not required to put these purchases into eAwards since this was a business meeting and not an employee recognition award event.
6. Tickets for sporting events, purchased in late fall 2007 and winter 2008, costing a total of $28,498. These purchases included a professional basketball game that 450 employees attended and where they received food and hats, and season tickets for a major league baseball team. Cardholders were not required to put these purchases into eAwards because the per ticket cost was less than $50.
We found the documentation supporting the purchases listed above and others did not always provide sufficient detail to identify the number of items purchased, the number of people attending events or recognized for awards, or the specific purpose or reason for the purchase. Without extensive testing, it is not possible for management or the U.S. Postal Service Office of Inspector General (OIG) to determine the extent to which some of these purchases (i.e., events) occur because they are not always tracked separately.
Items of value – such as GPS and navigational systems, electronic appliances, watches and gift cards – are captured in eAwards. Some of the purchases we identified – tickets to sporting events, business meetings and appreciation days – are associated with recognition or events; therefore, they are not required to be put into eAwards. As cited in a recent OIG report, expenses associated with internal and external events (meals, refreshments, employee recognition gifts, gift cards, et cetera) should be separately tracked to facilitate transparency and accountability.
In addition to the types of purchases noted above, we identified spending for food and meals made using Purchase Cards totaling over $7 million in FY 2008. However, we did not include specific examples in our report, as the Postal Service recognized the need to strengthen its policy in this area and recently issued a management instruction that provides additional guidance. The Postal Service travel policy states that anyone in travel status must deduct all meals provided from their per diem expense. Managers told us that meals are provided only under specific circumstances, often to
ensure that people in travel status are available for a meeting for the maximum amount of productive time. We plan to continue to monitor these purchases throughout FY 2009 to determine whether the new management advisory is effective.
Although most of the purchases we tested were not in violation of Postal Service purchasing procedures, the nature of the purchases is in direct conflict with the Postal Service’s objective of driving down costs in all operations and processes. In addition, due to the perception that the Postal Service is using funds from stamp sales to purchase expensive items, this kind of imprudent spending could damage the Postal Service’s public image (goodwill). Both managers and those with awards approval authority should consider the costs of the awards and the perception of these awards to
outside individuals. The imprudent purchases we identified represent items of value that are above and beyond employee salaries and bonuses.
We believe a reduction in purchases is feasible based on our analysis of Purchase Card data from October 2006 through September 2008. In fact, chart 1 shows that in Quarter 4, FY 2008, purchases decreased to an average of $24 million per month, down from an average of nearly $32 million per month for the first 9 months of FY 2008. We believe this is due to a recent emphasis on cost cutting, and further reductions are possible to realize additional cost savings by emphasizing the need to limit the amount of spending on non-cash items.
February 27th, 2009 10:57
This is reminiscent of the so called “big wigs” on Wall st circumbenting rules and taking care of one another. Although on a different level monetarily the same principle applies with these Managers. They chase city carriers around on a daily basis to make sure they are productive and now are in the process of cutting Rural carriers with the count and yet we find out how much upper management is on board with this whole cost cutting issue. They want the lower level employees to sacrifice but not them. The first thing that should be done is get rid of every administrative job that does not directly impact the mail instead of cutting where the rubber meets the road.
February 27th, 2009 15:07
Exactly what kind of “sacrifices” are lower level employees making? Many of them are protected by no-layoff clauses — who gets those assurances anywhere, anymore, but in the USPS? — and they get benefits that most workers can only only dream of.
Mail volume is declining and will continue to do so. Any other industry that is experiencing similar declines in their services or products (think newspapers, for example) are laying off thousands of employees, closing offices, etc. God forbid if the Postal Service tries to consolidate a couple of plants; the first thing the unions do is go crying to Capitol Hill. That doesn’t happen in the real world.
I agree with you that the Postal Service needs to cut where the rubber meets the road. Literally. Routes need to be expanded or eliminated. Carriers need to be laid off. And if carriers REALLY cared about productivity, the NALC would agree to evaluated routes, just like the rural routes. But carriers have been fighting this for years, because once you go to evaluated routes, productivity soars and routes would be eliminated.
Go tell your neighbors about the “sacrifices” carriers make. See if you get any sympathy. They’ll laugh in your face when they learn about your COLA-protected wages (who gets THAT anymore?), no layoffs, no post office closings, etc.
February 27th, 2009 16:52
after this mail count, rural routes will more than likely be consolidated, salaries greatly reduced. The most recent COLA was ZERO. When DPS flats are implemented in every district, everyone’s wish of rural carriers laid off and routes consolidated will come true. Rural routes will have over 1200 homes and will be delivering until midnight every night. Be careful what people ask for.
February 27th, 2009 17:22
Cozmot, are you smoking that stuff that falls out of the southbound end of a northbound skunk? You sound like we carriers have it made. If that’s so, why did YOU go into management? I KNOW why, because you don’t want to work.
It really isn’t the fact that carrier craft need be reduced, but the fat, pugent ranks of stinking management like your kind is what is drowning the very dinosaur that still walks the earth.
Be it not for the carriers, clerks, and others that DO TOUCH the mails, management is only a festering pus filled boil on the derriere of the Eagle as she flies proudly throughout this land, making her rounds.
February 27th, 2009 17:22
Very interesting, Anthony Vegilante, Executive VP and Chief HR Officer (big titles), in a memo dated 2/26/09, suspended all employee award spending(known as eAwards). He wrote that this action in no way suggests a lack of appreciation for the tremendous job that postal employees do on a daily basis. So if you didn’t receive your hi def TV or fancy watch yet you are out of luck!
February 27th, 2009 18:22
I must be in the wrong post office. No such elaborate eAwards have ever been given out at fox valley p@dc.
February 27th, 2009 19:43
This latest report of abuse by postal managers is nothing new or surprising to anyone who has been with the USPS for any length of time. Almost all USPS employees start their postal career in the craft. If they don’t fit in well because of substandard performance or simply lack the social skills to get along with their co-workers, or are simply unable or unwilling to physically perform the work, then they soon enter into management. No special training required. No formal education needed. In fact, the dumber, the better. If you can say “yes, sir”, you will quickly be promoted. Can you think of any industry where supervisors and managers of the highest levels do not require some type of formal education, or at least a background in basic common sense? I welcome a congressional investigation in the USPS. The USPS boneheads in Washington, DC have run this ship so far up on shore she will never sail again without a new captain and crew. Can you say Captain Joeseph Hazelwood?
February 27th, 2009 20:36
Cozmot!! Could you get off your high horse and look in the mirror!! YOU are what is wrong with the Postal Service!!
I don’t need 3 or 4 of you (managers) with your clipboards and coffe cups in hand to tell me how to sort a flat or case a letter.It is not rocket science and if it was I am sure you are quite uneducated, cause why work for the usps?? Why?? cause no real management firm would hire a hack like you with zero managerial skills and your abundant ‘people skills’ you so clearly demonstrate in your diatribe against carriers!!
I hateto stoop to your level, but I must. you are a short-sighted, finger pointer, management kiss ass!! You have probably never worked an honest day in your life..now don’t get mad put down your coffee and clip board and watch a real person work!! A Postal Letter Carrier!!
February 28th, 2009 08:00
Please, I don’t want to lose my perks-the wonderful free toilet and drinking fountain. I lost 2,000 after the last mail count and this one will be even worse. After count is over, we witness a miracle-all the mail comes back-tons of parcels and flats. The highest paid employee in our office(PM) might show up for a couple of hours a day-then again she might not. Investigate? Bring it on-just start where the stench is the worst-at the top of the food chain.
February 28th, 2009 12:36
Does anyone notice how long it takes for those lazy ass inspectors to investigate anything? This crap should have been dealt with IMMEDIATELY, but they are too busy playing Keystone cops, throwing parties for themselves and wasting money that they don’t have time to take down the big wigs. The article is about something that happened nearly three years ago. That’s why we’re in the mess that we’re in. You try to report fraud and waste to the inspection service hotline and ABSOLUTELY NOTHING is done about it. You’d be better off calling Barney Fife and Andy.
February 28th, 2009 20:39
The House Subcommittee on the Federal Work Force, Postal Service and the District of Columbia will hold a hearing on USPS executive compensation March 25. The panel scheduled the hearing amid media reports that questioned Postmaster General Jack Potter’s more than $800,000 compensation package for FY2008.
A hearing is set for March 25. If there are any issues you would like them to address with Potter & Co, now is the time to contact the committee or its’ individual members.
http://oversight.house.gov/contact/
February 28th, 2009 21:41
Anthony Vegilante, Executive VP and Chief HR Officer (big titles), in a memo dated 2/26/09, suspended all employee award spending(known as eAwards). He wrote that this action in no way suggests a lack of appreciation for the tremendous job that postal employees do on a daily basis. So if you didn’t receive your hi def TV or fancy watch yet you are out of luck!
hellllloooo… he didn’t know the USPS has been bleeding like a pig for nearly a year now???
March 4th, 2009 16:02
Yeah, just look at the perks now. If you are rated OUTSTANDING, your reward is that you get to keep yopur job for 6 mon ths. Look at Baltimore, SMDO Fratini just sucks up to the Plant Manager who F bombs hard working employees. What happens? NADA, NIL, NOTHING. The bum keeps his job. Fratini wouldn’t recognize a good worker if he fell over them. He sits in front of a computer 5-6 hours a tour. Plant manager Incontro F bombs everybody he pleases and hangs on to jerry Lane’s coattails to keep his job for which he is completely non qualified. How about Potter and the perks he gets, including mortgage perks? WOW, to be a VP in the Postal Service. Eliminate 90% of them and sell L’Enfant Plaza.
March 8th, 2009 20:29
Cozmot, How long have you worked for the Postal Service? I’ve carried the US Mail for 28 years and still going all walking all day. When I first started at the PO I wanted to be a rural carrier but making regular was about a 5 year wait. Who with a family wants to do that? So I became a City Carrier, you talk about all the great protections carriers have. If they’re so great why aren’t you one? I’m not going to tell you how hard we work you know thats why you’re not a carrier. Oh yeah and my neighbors I wave or say “Hi” to them when Ipass by as I work while they’re already home from work for the day or not working at all you know those Saturday’s carriers are required to work. By the way we just went through minor route adjustments and consolidated some territory. Mostly we are still carrying the same territory just not as much mail. Why? Because the routes where already long imagine that. I tryed a stint in management, went back to my route after being so frustrated with my fellow supervisors whom where the laziest most spoiled crybabies literally crying babies I’ve ever seen. The amazing thing These people 15 years later are still hidden in the management ranks, incompetent, lazy, over-paid, under-worked spoiled, stupid,arrogant couldn’t and wouldn’t do a full days work without spending half the day on they’re cell phone or worse the PO’s phone taking care of all they’re personal business.By the way I know what you’re thinking and I’ve never owned a cell phone and don’t plan on getting one.By the way I’ll trade you my retirement benefits for yours anyday, okay? didn’t think so. So my friend if the best management strategy you can come up with again today is to belittle letter carriers threaten us with how good we’ve got it or how we should be working harder. Take a look at your fellow number crunchers who won’t have a job when we do go to evaluated routes and relish the day that happens. I won’t have some pompus ass telling me how to carry the route I’ve been carrying for 24 years maybe you can carry a couple splits off me because there won’t be a need for puppet yes men around anymore bring on evaluated routes and get rid of the real dead weight! YOU!
October 11th, 2009 08:25
common sense to end the demise of the P.O.: make all rights adjusted to a strict, agreed upon formula, and then create them like rurals with each having a value and NO time prejudice. Then put them all up for bid with seniority ruling: the older decide choosing harder and possibly more lucrative routes, or easier “walk-in-the-park” variety ones with less monetary renumeration; and on down the line. A) you eliminate supervision oversight (and consequently most of their jobs) AND harrassment, B) eliminate (but with future rehire-provision) carrier jobs (thats the trade off), C) you save –and create a new–stress free and salary comporting postal service. N.B. Good luck letting reason prevail…..
October 11th, 2009 08:27
common sense to end the demise of the P.O.: make all routes adjusted to a strict, agreed upon formula, and then create them like rurals with each having a value and NO time prejudice. Then put them all up for bid with seniority ruling: the older decide choosing harder and possibly more lucrative routes, or easier “walk-in-the-park” variety ones with less monetary renumeration; and on down the line. A) you eliminate supervision oversight (and consequently most of their jobs) AND harrassment, B) eliminate (but with future rehire-provision) carrier jobs (thats the trade off), C) you save –and create a new–stress free and salary comporting postal service. N.B. Good luck letting reason prevail…..