USPS OIG audit report of the web-based application, the Change Suspension Discontinuance Center (CSDC) program, used for the discontinuance of Postal Service-operated retail facilities. According to OIG: “The CSDC program’s discontinuance process follows applicable federal law and Postal Service policies. By law, the Postal Service cannot close small POs solely for operating at a deficit.”

Highlights of the report:

WHAT THE OIG FOUND:
The CSDC program could reduce current cycle time by approximately 22 percent (up to 62 days), improve the standardization and tracking of retail facility closures and consolidations, and provide management greater visibility over discontinuance activities enterprise-wide. Although the CSDC program enhances the process through automation, improvements to the discontinuance process are limited to guidance in current Postal Service policies. Management is currently reviewing Handbook PO-101. Accordingly, any modification to the CSDC program’s discontinuance process will be contingent on management updating its policies and procedures.

With declining mail volume, changing consumer needs, and nearly 100,000 locations offering access to postal products and services, the Postal Service is renewing its efforts to optimize its retail facility network. The Postal Service recognizes a need to improve the administration and management of the discontinuance process. Accordingly, management designed and implemented a new web-based program in 2010. One component of the CSDC program contains the closing and consolidation process for Postal Service-operated retail facilities. Management built the discontinuance process in the CSDC program to follow procedures and guidelines prescribed in Handbook PO-101. In October 2010, the Postal Service began training field offices, and it rolled out the CSDC program in December 2010.

Conclusion
The discontinuance process in the CSDC program is a web-based application that complies with federal law and Postal Service policies and improves the Post Office™ (PO) closing and consolidation process. Specifically, the CSDC program could reduce current cycle time by approximately 22 percent (up to 62 days), improve the standardization and tracking of retail facility closures and consolidations, and provide management greater visibility over discontinuance activities enterprise-wide. Although the CSDC program enhances the process through automation, improvements to the closing and consolidating process are limited to guidance in current Postal Service policies. Management is currently reviewing Handbook PO-101. Accordingly, any modification to the CSDC program’s closing and consolidating process will be contingent on the Postal Service updating its policies and procedures. The U.S. Postal Service Office of Inspector General (OIG) has initiated a comprehensive review of the draft Handbook PO-101, which will examine all components of the discontinuance process. Therefore, we are not making recommendations in this report regarding this issue.

Compliance with Federal Law and Postal Service Policies
The CSDC program’s discontinuance process follows applicable federal law and Postal Service policies. By law, the Postal Service cannot close small POs solely for operating at a deficit.

The Postal Service is also required to:
 Provide public notice and opportunity to comment on its intention to close or consolidate a PO.
 Consider the effect on the community and employees, economic savings, and any other factors the Postal Service determines necessary.
 Provide effective and regular postal service.
 Make final determination available to the public.
 Provide the public with adequate time to file any appeals before the Postal Regulatory Commission (PRC).

The CSDC program also tracks the total number of Postal Service-operated retail facilities and total number of facilities under a discontinuance study at the national, area, and district levels. In addition, the CSDC program tracks each Postal Service-operated retail facility’s operational data such as revenue, operating expenses, PO boxes, delivery routes, office level, and staffing. On May 24, 2011, the CSDC program’s discontinuance tracking reported there were:

 1,367 facilities initiated for discontinuance studies.
 190 facilities removed from consideration because postmaster vacancies were approved to be filled.
 97 facilities awaiting approval to begin discontinuance studies.
 1,080 facilities approved for discontinuance study.
 41 of 1,080 facilities were recommended for discontinuance with proposals submitted to HQ for review and final determination.

Full OIG report