A key goal of the Transformation Plan is that the Postal Service culture be more performance based. Realization of that goal requires that the Postal Service assure accountability in each of its processes.

     Accordingly, the Postal Service has established an internal control function that will minimize the level of risk that is normally associated with each process and ensure that accountability is maintained. The new internal control function is directed by Headquarters and operates through a team of staff experts who are trained internal control analysts. Control analysts are assigned as consultants to the management of each performance cluster to assist those managers in optimizing performance under existing internal controls and policies within their cluster.

     Control analysts are charged with identifying and evaluating control processes and policies which need improvement. Risk evaluations will be conducted at both the area and national levels. These evaluations are data based and will reveal weaknesses in existing controls, processes and policies which will then be prioritized for improvement on a national basis. To maintain the efficiency and effectiveness of internal controls, evaluation results will be reported quarterly to management. This active, integrated internal control system will enable the Postal Service to enhance revenue assurance, accountability, and operational efficiency and, thereby, to enhance customer satisfaction.

     In 2003, the Internal Control function established and trained field staff. Today, there are 80 Internal Control Group (ICG) field managers, each of whom has received over 40 hours of training consisting of orientation to internal controls, risk prioritization tools and, data mining tools and techniques. Each ICG field unit consists of an ICG analyst who will be conducting reviews based on data driven indicators. There are now approximately 500 field ICG staff members actively conducting reviews of the Postal Service's internal control processes. As part of the ongoing training of field staff, the Institute of

Internal Auditors will present a customized Risk and Control course to the field staff in January 2004. The course will familiarize ICG staff with the requirements of the Sarbanes- Oxley Act of 2002 and provide instruction in methods to evaluate current Postal Service controls.

     Currently there are a variety of tools, systems, and software to complete decision analysis documents that are used for planning, approval, tracking, and post implementation reviews. The Universal Decision Analysis System (UDAS) will be a standardized, analytical tool following program management principles that addresses the five phases for programs and projects: concept, planning, design, implementation, and review and close-out. Existing tools, systems, programming, or technology will be used to develop a core tool that will integrate with all functional area processes to provide a standard, validated model. Conceptual and planning activities for UDAS began in 2003, and implementation is expected in 2004.

     This universal tool will assist in facilitating the prioritization, development, approval, and management of projects and programs. This standard approach will also eliminate the need for outsourcing the development of decision documents. This model will provide improved internal controls, allow for more indepth financial and risk analyses, and allow for the development of performance measures to track program success and accountability following program management guidelines.