US Postal Service faces fraud risks from improper invoice approvals

A report from the Inspector General indicates that the United States Postal Service is increasing its risk of fraud by approving invoices that lack essential descriptions of goods or services. An audit of time-and-materials contracts revealed that 74% of these contracts, totaling $271.1 million, were approved during 2024 and 2025 without verification that the purchases were actually delivered.

Specific issues identified include invoices that failed to list the number of items delivered, the hours worked by contractors, or even the identity of the supplier. Additionally, the audit found that 60% of unauthorized contractual commitments—informal contracts made by employees without proper authority—were missing required details, involving an estimated $795,000.

The report also highlighted significant issues with no-bid contracts. While workers are required to obtain multiple price quotes for purchases exceeding $1 million or receive supervisor approval to bypass the process, the audit found $792 million in no-bid contracts that proceeded without proper authorization. These findings follow previous instances of procurement fraud where the Inspector General recovered $321.3 million between 2016 and 2025.