Mail Management

Labor Programs Run by States Could Reduce Postage Costs Gao ID: GGD-91-43 March 20, 1991

Pursuant to a congressional request, GAO reviewed Department of Labor (DOL) opportunities to reduce postage costs through improved mail management operations at State Employment Security Agencies (SESA).

GAO found that: (1) past DOL efforts to reduce SESA mailing costs achieved limited cost reductions due to inadequate presort equipment and software; (2) DOL could reduce its annual mailing costs by a total of $6.7 million by successfully encouraging SESA to presort more and to include the nine-digit zone improvement program (ZIP) code on their mail; (3) SESA had little incentive to minimize postage costs because savings resulting from improved mail management did not benefit them directly; and (4) to achieve postal savings, DOL would have to provide SESA with funds for presort equipment and software, or get them to use contractors to presort their mail.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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