Postal Regulatory Commission

Congressional Budget Justification

Fiscal Year 2020
1

Table of Contents

Executive Summary FY 2020...........................................................................................................................2

Background..........................................................................................................................................................7

Commission Achievements in FY 2018........................................................................................................9

Budget Overview and Highlights for FY 2019..........................................................................................13

Budget Program Information.......................................................................................................................22

Proposed Appropriations Language...........................................................................................................23

Strategic Goals, Work Plans, and Performance Objectives..................................................................25

Office of Inspector General...........................................................................................................................31
2

Executive Summary FY 2020

The Postal Regulatory Commission (Commission) is an independent agency that has 

exercised regulatory oversight over the Postal Service since its creation by the Postal 

Reorganization Act of 1970, with expanded responsibilities under the Postal Accountability 

and Enhancement Act of 2006 (PAEA). The Commission promotes high quality universal 

mail service for the American people by ensuring Postal Service transparency, 

accountability, and compliance with the law, particularly on its rates, product offerings, 

service quality, and competition as a government entity. The Commission’s unique and 

distinct mission is to serve as the primary regulator of the Postal Service and provide 

analyses on postal financial operations to Congress, stakeholders, and the general public. 

The Commission’s job of regulating the Postal Service, the nation’s second largest civilian 

employer, which is currently facing significant financial challenges, could not be more 

important than it is now. 

To accommodate the Office of Management and Budget’s (OMB) request in the context of 

developing the administration’s budget, the Commission transmits the President’s 

appropriation recommendation of $16,615,000 for the Commission. Since Fiscal Year (FY)

2009, Congress appropriates the Commission budget out of the off-budget Postal Service 

Fund, which is the permanently appropriated revolving fund comprised solely of the 

monies that the Postal Service controls and raises from selling its products and services. 

The Commission’s funds, therefore, come from the Postal Service’s ratepayers rather than 

taxpayers. The Commission’s appropriation represents a tiny fraction of the Postal 

Service’s FY 2017 revenues of $69.7 billion. In recognition of the Commission’s 

strengthened regulatory role, the PAEA sought to ensure the Commission’s independence 

by authorizing submission of its budget request to Congress for appropriation of necessary 

sums from the Postal Fund separate from the Postal Service. The Commission respectfully 

notes that section 2009 of Title 39 provides that:

[T]he Postal Regulatory Commission requests to be appropriated, out of the 

Postal Service Fund, under section 504(d) of this title. The President shall

include these amounts, with his recommendations but without revision, in the 

budget transmitted to Congress under section 1105 of Title 31.

For FY 2020, the Commission transmits the President’s appropriation of $16,615,000,

which is close to the Commission’s original request of $16,679,000. This request is in 

keeping with the Commission’s expected expenditures for FY 2018 and FY 2019. In FY 

2018, the Commission appropriation was $15,200,000 and our expenditure was

$15,698,226. The difference between the appropriation and the projected expenditure was

absorbed by our unobligated funds (carryover funds) carried to the new fiscal year.

In FY 2019, the expected appropriation is $15,200,000 and the projected expenditure is 

16,208,000. Again, the variance between the expected appropriation and the projected 

expenditure will be absorbed by the Commission’s carryover funding.

The carryover funds utilized by the Commission were gained from a set of unique 

circumstances. In FY 2017, the Commission carryover was less than $900,000 and was 

made up of a combination of set-aside legal fees no longer needed, and funds gained from a 
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vacant commissioner (and their staff) billet (vacant since November 2015). Then, in May 

2017, the appropriated budget was finally passed and the Commission, which had been 

executing at the Continuing Resolution (CR) amount of $15,200,000, was appropriated a 

$16,200,000 budget. This extra $1,000,000 was urgently needed; however, it was provided 

so late in the year it too became part of the Commission carryover. Rather than continue to 

accrue the carryover funds, the Commission intentionally chose to submit lower 

appropriation requests than needed in FY 2018 and FY 2019. Thus, instead of stockpiling 

the carryover, the Commission responsibly used the carryover funds. However, this 

carryover funding will be completely exhausted by the close of FY 2019. It is therefore vital 

that the Commission receive its requested increase of $1.5 million to reflect the actual

steady state of Commission funding needs. 

The Commission ensured the FY 2020 requested funding was closely aligned with its 

Strategic Plan, and included the minimum amount needed to allow the Commission to meet 

its statutory responsibilities. 

With the requested appropriation of $16,615,000 the Commission will maintain its current 

complement and will comply with unfunded mandates in Information Technology (IT) and 

acquisition (such as ongoing Federal Information Security Management Act (FISMA) 

compliance and the March 2020 deadline for the Enterprise Infrastructure Solution (EIS) 

transition).

Despite the Commission’s small size of 75 Full Time Equivalent (FTE) employees, it serves 

a critically important role in ensuring the continued operation of the Postal Service and its

roughly $70 billion in annual revenues. The vast majority of this revenue is derived from 

the Postal Service’s Market Dominant products and services, all of which require thorough 

review and approval by the Commission before any rate adjustments may be enacted. Most 

of this work must be completed in accordance with statutory timelines. The American 

people and the nearly trillion dollar postal and delivery sector of our economy rely greatly 

upon thorough and timely work by the Commission. Additionally, the Commission must 

protect the interests of captive customers and postal competitors from potential Postal 

Service misuse of its market power. The evolving postal sector results in an ever increasing 

caseload at the Commission. A Commission that lacks the funds to function as intended by 

Congress will likely force a further degradation in certain Postal Service operations. 

Personnel 

The Commission already operates as a lean organization. After accounting for the 

statutorily required positions, the workforce requirements of commissioners, and the 

administrative support personnel, the Commission has just 44 professional staff to perform 

the challenging analytical, technical, and legal work that is the core of the Commission’s 

regulatory responsibilities. The Commission, by law, must also appoint a professional staff 

member to serve as an officer of the Commission to represent the interests of the general 

public in all docketed proceedings. Therefore, the Commission must field “two teams” for 

every case, further stretching resources. In addition, the Commission has a statutory 

requirement to maintain an independent Office of the Inspector General, which is 

comprised of three employees at a current cost of nearly $500,000 annually.
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The Commission continues to work on significant statutorily mandated reviews even as it 

experiences a substantial increase in additional workload. The number of docketed cases 

continues to steadily increase each year and these cases continue to increase in complexity, 

particularly those related to rates, new products, service changes, and competition. The 

Commission’s goal for FY 2020 is to simply preserve our ability to fund the current FTE

with no new growth. It is important to recognize that the Commission deferred hiring from 

2008-2014, at which time the Commission began increasing much needed staff. The 

Commission had literally “just turned the corner” and, prior to the reductions of FY 2018,

was finally able to begin hiring the adequate number of staff to address the greatly 

expanded mission assigned under the PAEA. In FY 2020, the Commission expects increased 

workload resulting from the 10-year review and the President’s Task Force 

recommendations. This additional workload will entail intensive analysis by the 

Commission, involve extensive public participation, and require a significant share of the 

Commission’s resources. 

Any reduction in staffing would degrade the Commission’s ability to meet our statutory 

responsibilities, delay timely responses, and affect the customer experience of our 

stakeholders, especially the American public.

Cybersecurity and IT Infrastructure

The Commission had deferred much-needed IT expenditures for many years, and in FY 

2014 was finally able to begin modest investments in our IT infrastructure. Like personnel, 

IT, too, had “just turned the corner” and was beginning to make progress toward FISMA 

compliance and greater cybersecurity.

As authorized by the OMB in Directive M-17-28, with the requested budget amount, the 

Commission seeks to maintain and optimize its IT infrastructure and strengthen its 

cybersecurity posture with resources budgeted to manage cyber-risk, strive to achieve 

FISMA compliance, and transition the Commission to EIS, the new federal

telecommunications contracting vehicle. Funding these initiatives is essential to ensuring 

the Commission has an acceptable risk assessment, a strong cybersecurity posture, and is 

in compliance with IT mandates and acquisition priorities.

The IT budgetary resources, in priority order, will be utilized for implementation costs for 

the transition to EIS; required annual security assessment of IT systems; the move to cloudbased services for Commission applications; Managed Trusted Internet Protocol System 

(MTIPS) and Dual-Factor Authentication monthly recurring charges; IT contract support,

maintenance and service fees for IT systems; the required annual IG audit of FISMA 

compliance; and exfiltration, penetration, and phishing tests.

Summary Conclusion

Until 2008, the Commission received its budget directly from USPS, not through the 

appropriations process. Since the Commission entered the appropriation process, from 

2009 to 2015, the agency was generally flat-lined and as a result, deferred needed hiring 

and investments in IT. After 6 years, this was no longer sustainable and Congress 

appropriated monies to help the agency turn the corner. Although, as noted above, in 
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recent years the increases arrived late in the fiscal year and became part of the Commission 

carryover. By responsibly using the agency's carryover funds rather than stockpile, the 

Commission consciously then requested lower appropriated amounts the past couple 

years. Those carryover funds will now be exhausted and hence it is critical that the 

President's full recommendation of $16,615,000 be appropriated to ensure stable 

operations of the Commission.
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Mission

Ensure transparency and accountability of the United States Postal Service and 

foster a vital and efficient universal mail system

Guiding Principles

The Commission is committed to, and operates by, the principles of:

 Openness

 Public participation

 Integrity

 Fairness and impartiality

 Timely and rigorous analysis

 Merit

 Commitment to excellence

 Collegiality and multi-disciplinary approaches

 Adaptability

 Proactive response to the rapidly changing postal environment

Vision

To be an independent regulator respected for effectively engaging postal 

stakeholders to promote a robust universal mail system through objective, 

accurate, and timely regulatory analyses and decisions
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Background

The Commission is an independent establishment of the executive branch of the United 

States Government, exercising regulatory oversight over the Postal Service since its 

creation by the Postal Reorganization Act of 1970, with expanded responsibilities under 

the PAEA. The Commission is composed of five commissioners, each appointed by the 

President, by and with the advice and consent of the Senate, for a term of 6 years. No more 

than three of the commissioners may be adherents of the same political party. The 

President designates one of the commissioners to serve as chairman. The chairman is the 

principal executive officer of the Commission.

Commission staff have expertise in law, economics, finance, statistics, and cost accounting, 

and are organized into four operating offices:

• Accountability and Compliance. The Office of Accountability and Compliance is 

responsible for technical analysis and formulation of policy recommendations for the 

Commission in both domestic and international matters. It provides the analytic 

support for Commission review of rate changes, Negotiated Service Agreements (NSA), 

classifications of new products, post office closings, amendments to international postal 

treaties and conventions, as well as other issues.

• General Counsel. The Office of the General Counsel provides legal assistance on 

matters involving the Commission’s responsibilities and authorities, including 

defending Commission decisions before the courts and advising the Commission on 

legislation, rulemaking, procurement, personnel, ethics, and all other legal matters.

• Public Affairs and Government Relations. The Office of Public Affairs and 

Government Relations is the Commission’s primary resource in support of public 

outreach and education; media relations; and liaison with Congress, the Postal Service, 

and other government agencies. The office provides information for consumers and 

responds to their inquiries.

• Secretary and Administration. The Office of the Secretary and Administration (OSA) 

provides management and staff support to the Commission’s operational offices 

(including the Office of the Inspector General (OIG)), the Commission’s Strategic Plan, 

and various initiatives of the Executive Branch. OSA ensures that the Commission has 

the physical, financial, technological, and human capital infrastructure needed to 

accomplish its mission by providing for the management of accounting, finance, budget, 

records, human capital, information technology, and administrative support.

• Inspector General. The Commission maintains an independent OIG. That office 

conducts, supervises, and coordinates audits and investigations relating to Commission 

programs and operations, and identifies and reports fraud and abuse.
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Organizational Chart
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Commission Achievements in FY 2018

The Commission achieved the following significant statutorily required accomplishments 

in FY 2018 that support its mission to ensure transparency and accountability of Postal 

Service operations and foster a vital and efficient universal mail system.

The Commission published four major reports in FY 2018:

• The Annual Report to the President and Congress (Annual Report) described the 

Commission’s accomplishments and activities as the regulator of the Postal Service.

• The Annual Compliance Determination Report (ACD) for FY 2017 reviewed the 

Postal Service’s compliance with pricing and service standards.

• The Financial Analysis of the United States Postal Service Financial Results and 10-K 

Statement for Fiscal Year 2017 provided an in-depth analysis of the Postal Service’s 

financial condition. 

• The Analysis of the Postal Service FY 2017 Annual Performance Report and FY 2018 

Performance Plan evaluated whether the Postal Service met its performance goals as 

required under Title 39 of the United States Code (U.S.C.), section 3653(d). 

The Commission presided over several rate and classification proceedings in FY 2018:

• The review and approval of a Postal Service proposal to adjust Market Dominant 

prices, including shape-based rates for inbound letter post

• The review and approval of a rate adjustment concerning the inbound portion of the 

bilateral rate agreement between the Postal Service and Canada Postal Corporation 

and a modification to that agreement adding additional products

In December, the Commission issued its findings in the statutorily mandated 10-year 

performance review of the original “system for regulating rates and classes for marketdominant products” in accordance with 39 U.S.C. § 3622. The law requires the Commission 

to determine whether the system set up in 2006 has achieved the 9 objectives, considering 

14 additional factors, established by the PAEA. The Commission determined that some 

objectives have not been achieved considering the factors and, in accordance with the 

statute, issued a proposed rule-making proposing changes to the system that address the 

issues identified by the Commission in its review. The Commission received approximately 

200 initial comments and almost 20 reply comments in response to the orders issuing its 

findings and the proposed rules. 

The Commission continued its review of the appropriate minimum contribution to the 

Postal Service’s institutional costs that competitive products must provide pursuant to 39 

U.S.C. § 3633(b). In FY 2018, the Commission issued proposed rules, received public 

comments on the proposed rules, and issued revised proposed rules.

The Commission concluded its work on one public inquiry docket, continued its work on 

another public inquiry docket, and initiated a new public inquiry docket:

• In furtherance of its review of issues relating to the proposed internal service 

performance measurement system, the Commission filed a procedural order 

requesting comments from interested parties and received several submissions. The 

Commission’s review showed the system is capable of developing objective service 
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performance measurement; reporting accurate, reliable, and representative service 

performance data; and providing data in the nature and form required by the 

Commission. Accordingly, the Commission issued a final order approving the use of 

the Postal Service’s proposed internal measurement system conditioned upon the 

Postal Service continuing its external auditing program. 

• In furtherance of its review of city carrier costs, the Commission filed multiple 

requests for additional information from the Postal Service and is continuing to 

review and evaluate the comments from stakeholders and the Postal Service’s 

responses.

• The Commission initiated a review of the market conditions for the Inbound Letter 

Post product, specifically concerning small packets, in response to issues raised by 

the Postal Service in the FY 2017 ACD. The Commission opened the case and filed a 

Chairman’s Information Request about the competitive conditions in the market 

relating to this product. 

The Commission considered several rulemakings relating to rates, costing issues, and 

reporting requirements, including:

• A proceeding to explore potential enhancements to the Postal Service’s data systems 

and to develop reporting requirements to measure, track, and report the cost and 

service performance issues concerning flat-shaped mail pieces. The Commission 

issued several information requests to improve understanding of the data collected

by the Postal Service. In FY 2019, the Commission will propose data enhancements 

and reporting requirements for consideration in this docket. The Commission will 

invite public comment on the detailed proposal before adopting any final rule(s).

• A proceeding revising the Commission’s periodic reporting requirements, including 

revising the regulations to require the Postal Service to provide Inbound Letter Post 

volume, revenue, attributable cost, and contribution data covering the previous five 

fiscal years; changing deadlines for financial reporting; and asking the Postal Service 

to provide data that has been routinely requested via Chairman’s Information 

Requests during ACD proceedings. In the case of the revised reporting requirements 

for Inbound Letter Post, the Commission intends to use the new data to conduct 

more in-depth analysis of the Inbound Letter Post product, which has a long history 

of failing to cover attributable costs. The Commission concluded the proceedings in 

late FY 2018, requiring the Postal Service to file the revised data in the next Annual 

Compliance Report.

• Thirteen Postal Service petitions proposing to change various accepted analytical 

principles.

The Commission issued new rules and amendments concerning the standards of ethical 

conduct for Commission employees and the treatment of non-public information, 

specifically appropriate transmission and protection of non-public materials, in order to 

maintain appropriate transparency and modernize practice before the Commission.

The Commission approved 290 NSAs for competitive products (205 domestic, 85 

international) and approved one market dominant NSA.
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The Commission reviewed and approved the Postal Service’s calculation of the assumed 

Federal income tax on Competitive products. 

The Commission provided President Trump’s Task Force on the United Stated Postal 

System with extensive data and background as the task force worked to develop a set of 

administrative and legislative recommendations to return the Postal Service to a 

sustainable financial path.

On August 23, 2018, the President issued to the Commission chairman, as well as other 

various components of the Executive Branch, a Memorandum on Modernizing the 

Monetary Reimbursement Model for the Delivery of Goods through the International Postal 

System and Enhancing the Security and Safety of International Mail. Early in FY 2019, the 

President then issued further direction for the Commission and the USPS to implement selfdeclared rates charged to foreign posts. The Commission will therefore be working to 

address these matters, which will include financial analyses of terminal dues. Much more 

work is expected in this area as the White House continues its involvement in international 

postal policy.

In its international postal policy role, the Commission also:

• Continued collaboration on international postal issues with other government 

agencies such as the Department of State through its Federal Advisory Committee 

on International Postal and Delivery Services

• Provided views to the Secretary of State on whether certain proposals for the 

Extraordinary Congress of the Universal Postal Union (UPU) are consistent with the 

standards and criteria for modern rate regulation established by the Commission 

under 39 U.S.C. § 3622

In FY 2018, the Commission continued its commitment to support initiatives to recruit, 

develop, and retain a skilled, high-achieving, and diverse workforce. At the end of FY 2018, 

women and minorities accounted for 57 percent and 31 percent of the workforce, 

respectively. Women also filled 40 percent of the Commission’s executive positions; 

minorities filled 10 percent.

The Commission provided internship opportunities to aid in recruiting and developing 

professionals with diverse backgrounds. It will continue efforts to increase diversity in the 

workforce through outreach and recruiting at local universities, veterans’ groups, and 

other organizations and groups that target under-represented populations.

The Commission continued its commitment to transparency, accountability, and 

compliance with the Freedom of Information Act (FOIA), which resulted in a favorable 

review in the Department of Justice’s FY 2016 Assessment of Agency Progress (the last 

report providing a score for the Commission). In FY 2018, the Commission had a recordsetting 37 percent increase in the number of FOIA requests received, compared to FY 2017.

As part of its mission to ensure transparency and accountability, the Commission continued 

to provide live and archived webcasts of important Commission events. Webcasts are 

available on the Commission’s website, www.prc.gov.

The Commission focused on overhauling its data governance policies and systems, making 

improvements to its records management program to ensure compliance with the 
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Presidential Memorandum on Managing Government Records (November 28, 2011) and 

OMB/NARA Directive M-12-18 (August 24, 2012). The records management team worked 

closely with the National Archives and Records Administration (NARA) in FY 2018 to 

update its Commission-specific records schedule, which was submitted to NARA and 

approved by the Archivist of the United States. Annual records management training was 

provided to all Commission staff to educate and inform them of their records management 

responsibilities. The Commission is also in the process of implementing a holistic electronic 

document and records management system. This system will not only improve internal 

data governance, but also improve the public end-user experience, process, and access to 

the Commission’s records. The Commission received positive ratings from NARA for 

proceeding with and strengthening its records management program. 

In response to the 2009 presidential memorandum regarding government contracting, and 

in line with Executive Order 13576, “Delivering an Efficient, Effective, and Accountable 

Government” (2011), the Commission in FY 2018 began updating its acquisition policy and 

process. The new policy is centered on strengthening the Commission’s commitment to 

best value and promoting a fair and equitable procurement opportunity for all vendors. 

The Commission was the first very small agency to complete implementation of the 

Department of Homeland Security’s Cyber-hygiene and Continuous Diagnostics and 

Mitigation (CDM) program, which strengthens the Commission’s cybersecurity posture and 

provides management with relevant and timely information about threats and 

vulnerabilities to the Commission IT systems. 

The Commission issued updated internal policies for Compensation and Performance 

Management. 

The Commission is likely to respond to – or in some instances, refer to the Postal Service 

for resolution – around 4,500 inquiries, questions, suggestions, and comments from the 

general public, which primarily involve undelivered, delayed, misdelivered, and missing 

mail.
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Budget Overview and Highlights for FY 2020

The Commission is requesting a FY 2020 appropriation of $16,615,000. This request

focuses on four funding priorities: maintain, but not increase, the 75 FTEs currently 

onboard and needed to accomplish the Commission’s mission; address requirements from 

several statutorily-required rulemakings, such as the § 3622 study and Institutional Costs;

modernize information security/cybersecurity; and meet all legal obligations. 

The Postal Service’s financial viability depends upon the prompt and efficient adjudication 

of pricing and product proposals, and the American public relies upon timely Commission 

oversight of Postal Service actions and response to complaints. The requested amount of 

$16,615,000 will allow the Commission to perform its statutory responsibilities

proficiently. The Federal Government has also experienced many well-publicized 

cybersecurity challenges and has issued legislation and mandates to meet these challenges, 

which, in turn, have resulted in growing requirements for the Commission IT budget line. 

If funded as requested, the Commission will maintain its current high-performing 21st

century workforce (the minimum workforce needed to meet the mission of the 

Commission) and will continue with the critical IT infrastructure modernization necessary 

to enhance mission effectiveness while reducing cybersecurity risks. The Commission will 

also continue the progress made toward modernized enterprise data governance and 

public access to data. 

The FY 2017-2022 Strategic Plan was developed to serve as a steady guide to steer the 

future work of the Commission and is a fundamental beacon for the Commission’s efforts 

toward continuous improvement, efficiency, and effectiveness. The four strategic goals

listed below guide the Commission’s work and serve to directly link the budget to the

Strategic Plan’s Work Plans and Performance Objectives. 

1. Deliver accurate and objective analyses and decisions to ensure transparency and 

accountability of the Postal Service.

2. Actively engage with Congress and stakeholders in support of a dynamic postal 

system.

3. Provide an optimal internal infrastructure to support management of priorities, 

workload, and emerging requirements.

4. Recruit, develop, and retain a diverse, high-performing workforce.

The Commission’s two primary expenditures, personnel compensation and lease 

obligations, account for 91 percent of the annual appropriation. This is an especially telling 

data point. When the Commission’s obligation to a long-term lease through 2022 is 

considered, it is apparent that unless reductions are made to personnel compensation, i.e.,

personnel reductions, there is no room left in the budget to absorb any reductions that may 

be levied. There is simply nothing left to cut without degrading the Commission’s ability to 

meet its mission. (See, FY 2018 Expenditures.) The Commission is committed and confident 

that, with the approved required amount of $16,615,000, the Commission will continue to 

achieve its mission.
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In FY 2018, the Commission received an appropriation of $15,200,000, and in FY 2019 the 

Commission expects to receive an appropriation of $15,200,000, recognizing that the 

Commission’s carryover funding would be used to offset the Commission’s actual budget 

requirements of $15,698,225 (FY 2018) and $16,208,000 (FY 2019). By requesting a 

reduced appropriation and using the carryover balance in support of the President’s

agenda (rather than continuing to build up carryover) the Commission was fiscally 

responsible in the use of the carryover funding by requesting a reduced appropriation.

However, the carryover funding will be depleted by the end of FY 2019, making this path 

unsustainable. (See Unobligated Funding Used for Shortfall Projected Expenditures FY18-

FY19.)

If funded below the President’s recommendation of $16,615,000, the Commission will be 

hampered in its efforts to timely execute the Commission’s workload, resulting in the 

inability to effectively regulate Postal Service matters and provide adequate regulatory

oversight. The American people and the nearly trillion dollar postal and delivery sector of 

our economy rely heavily upon thorough and timely work by the Commission. Additionally, 

the Commission must protect the interests of captive customers and postal competitors 

from potential Postal Service misuse of its market power. A continually evolving postal 

sector results in a constantly increasing caseload at the Commission. A Commission that 

lacks the funds to function as intended by Congress will likely force a further degradation 

in certain Postal Service operations. 

Additionally, any reduction below the President’s recommendation would require the 

Commission to:

• Institute a Reduction In Force (RIF) if attrition does not sufficiently materialize.

• Continue the hiring freeze.

• Stop IT modernization plans, including cloud computing implementation, annual 

security assessment, FISMA audit, and mandated system testing.

• Suspend the Networx to EIS transition implementation (which leaves the 

Commission unclear as to what telecommunication vehicle will provide needed 

telephone, data, and internet services).

• Discontinue progress toward a 21st century workforce (suspending all employee 

training programs, student loan repayment and tuition assistance programs, and the 

Commission intern program).

• Cease updates to the public-facing website.

• Default on any projected statutory pay increase for FY 2020 and implement a pay 

freeze.
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Personnel 

Compensation

80%

Lease

11%

Supplies & 

Services

5%

Other Operating 

Expenses

4%

FY 2018 Expenditures

Personnel

Compensation

Lease

Supplies &

Services

Other Operating

Expenses
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 $14,600,000

 $14,800,000

 $15,000,000

 $15,200,000

 $15,400,000

 $15,600,000

 $15,800,000

 $16,000,000

 $16,200,000

 $16,400,000

FY17 FY18 FY19

Unobligated Funding Used for Shortfall - Projected 

Expenditures FY 2017-FY 2019

Appropriation /Proposed Appropriation Execution Projected Execution

Unobligated balance 

of $1.9M used for 

funding shortfall in 

FY 2018-FY 2019
17

FY 2008-FY 2020 Enacted/Submitted Budget (in 000s)

$8,000

$13,000

$18,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Enacted Appropriations (000) Requested/Requirement (000)

PRC Request 

FY20-$16,615

President's 

Recommendation 

FY20-$16,615

Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Enacted 

Appropriation

(000)

$14,985 $14,043 $14,320 14,450 14,304 $14,450 $14,152 $14,700 $15,200 $16,200 $15,200

President’s

Recommendation

(000)

$17,700 $15,200 $15,200 $16,615

PRC Requirement $18,026 $16,285 $15,936 $16,615
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Commission’s Statutory Responsibilities Increase

In FY 2017, the 10-year anniversary of the PAEA’s enactment, the Commission began two 

critical reviews mandated by law, which were finalized in FY 2018:

1. A review of the efficacy of the system for regulating rates and classes in achieving 

the objectives of section 3622 of Title 39 of the United States Code (§ 3622 review). 

This review required a comprehensive reassessment of how rates and fees for 

market dominant products are set, which could have a critical impact on the 

American mailing public, business mailers, and the Postal Service.

2. A review of the contribution of Competitive products to institutional costs, which is 

of significant import to the commercial marketplace.

In FY 2019 and FY 2020, the Commission expects to experience increased workload related 

to potential changes resulting from these evaluations, particularly the § 3622 review, which 

will entail intensive work and analysis by the Commission, involve significant public 

participation from postal stakeholders, and require a substantial share of the Commission’s

resources.

In Addition to Statutory Mandates, Workload Continues to Grow

The Commission anticipates many new challenges as the President, Congress, the Postal 

Service, and interested stakeholders explore the legal boundaries of the PAEA. For example, 

the Commission anticipates an increased workload based on the important work of the 

Task Force on the United States Postal System (established by Executive Order and headed 

by the Secretary of the Treasury), the presidential memorandum to modernize the system 

to reimburse postal operators for the delivery of goods, and any proposed legislation from 

Congress. On April 12, 2018, President Trump issued an executive order that detailed the 

Postal Service’s precarious financial situation and established a Task Force on the United 

States Postal System, the goal of which was to return the Postal Service to a sustainable 

financial path. The order called for the task force, chaired by Treasury Secretary Mnuchin,

to consult with the chairman of the Commission as it developed a series of 

recommendations for administrative and legislative reforms to the Postal Service. The 

Commission has since provided the task force with an extensive amount of data, rate 

analyses, and background on Commission orders. Additionally, the Commission provided a 

full-time executive level detailee to assist the task force with its work. The Commission 

anticipates that some of the task force recommendations, if implemented, will directly 

impact the Commission and its work. Extensive engagement with Congress and the 

possibility of new Commission rulemakings related to the recommendations are 

anticipated throughout 2019 and 2020. 

Finally, the Commission expects to adjudicate an increasing number of contentious cases 

involving requests to expand the scope of Postal Service Competitive product offerings, 

either through the creation of new Competitive products or the transfer of existing Market 

Dominant products to the Competitive products list.
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The Postal Service’s efforts to adjust to national changes in mail usage will require the 

Commission to continue to adjudicate cases of major national policy import. The

Commission will need to review additional Postal Service proposals to right size its 

network and will be required to provide needed oversight as the Postal Service tries to 

make greater use of its pricing flexibility under the PAEA. The Commission will need to 

apply substantial resources to measure the impact of changes implemented by the Postal 

Service and to fully evaluate and respond to new ideas that result in innovative products 

and services, greater efficiencies, and cost savings for the Postal Service.

As the Postal Service implements changes to operating hours, delivery service, and 

processing infrastructure, the Commission will in turn be required to adjudicate several 

highly complex cases related to these changes. Additionally, as the Postal Service proposes

new products, services, and NSAs to generate additional revenue, the Commission must 

review these initiatives and service agreements to ensure a predictable, transparent, and 

effective system of rate and product regulation that complies with the law. As a result, the 

Commission will continue to handle an increasing number of complex dockets. It is 

imperative, therefore, that the Commission maintain no less than the 75 FTEs currently 

onboard to execute these statutorily mandated obligations.

As in previous years, the Commission will issue its primary regulatory document, the ACD, 

assessing the Postal Service’s compliance with ratemaking regulations and applicable laws. 

In this report, the Commission will review and determine whether market dominant rates 

are within the Consumer Price Index rate cap, whether Competitive products are 

subsidized by Market Dominant products, and whether Competitive products pay their 

attributable costs as well as an appropriate share of fixed postal costs. The report will also 

evaluate the Postal Service’s service performance. The Commission will also issue three 

additional reports: The Analysis of United States Postal Service Financial Results and 10-K 

Statements, Analysis of the Postal Services Program Performance Report and Performance 

Plan, and Annual Report to the President and Congress. 

The Commission may also undertake other special studies requested by the Postal Service, 

Congress, or as needed to complete its statutory responsibilities. The Commission has

previously completed studies on: infra-marginal and institutional costs, terminal dues, 

postal elasticity, cost elements of the Universal Service Obligation, and cost elements of the 

value of the postal monopoly. In FY 2018, the Commission completed and transmitted two 

special studies analyzing Postal Service retirement and healthcare funding to the Postal 

Service, Congress, and the Office of Personnel Management. These studies were prepared in 

response to a request from the Postal Service, in accordance with the PAEA, which requires 

that the Commission procure the services of an actuary upon receiving such a request from 

the Postal Service. These studies created a significant additional workload and an 

unprogrammed expense of $80,000 – a considerable amount considering the Commission’s 

very limited budget. 

The Commission also serves an integral role in helping the Department of State formalize 

and promote U.S. Government positions in the UPU, particularly in promoting greater 

transparency and accountability. Based on a recent Presidential Memorandum, 

“Modernizing the Monetary Reimbursement Model for the Delivery of Goods Through the 

International Postal System and Enhancing the Security and Safety of International Mail,” 
20

the Commission anticipates assisting the Secretary of State in his efforts to modernize the 

system to appropriately and fairly reimburse postal operators for the delivery of 

goods. (See, https://www.whitehouse.gov/presidential-actions/presidentialmemorandum-secretary-state-secretary-treasury-secretary-homeland-securitypostmaster-general-chairman-postal-regulatory-commission/.)

CAP Goal #1: Modernize IT to increase productivity and security

The Commission seeks to use IT modernization to transform the Commission’s enterprise 

infrastructure, strengthen its cybersecurity posture, and build a modern IT workforce by 

implementing cloud computing solutions, leveraging shared IT services, and in the absence 

of the instituted hiring freeze, acquire a skilled cybersecurity professional. In FY 2018 and 

FY 2019, the Commission moved system backups to the cloud and began implementing a 

cloud-based electronic document and records management system, which will provide 

internal and external customers with access to the Commission dockets system (the 

primary repository of Commission documents). The Commission plans to move the 

remaining majority of IT services and applications to the cloud in FY 2019-2020 as well by 

implementing Office 365 (including email) to include continuity/disaster recovery systems. 

Great strides were made in FY 2018 toward hardening our systems and increasing our 

monitoring capabilities by implementing CDM as a shared service through the Department 

of Homeland Security (which also aligns with CAP Goal #5 – Sharing quality services). In FY 

2020, if funded as requested by the Commission, the Commission will implement the next 

phase of CDM and continue ongoing critical projects to ensure the security of our data and 

systems in the face of increased cybersecurity threats (obtaining up-to-date technology 

that ensures cyber-threats are systematically and effectively identified, evaluated, and 

mitigated). An expected and necessary result of implementing these increased capabilities 

is the on-going budgetary impact of annual licensing, service, and maintenance fees. The

cost of these annual recurring fees is high. For example, in FY 2018, the Commission 

finalized its implementation of MTIPS. This implementation alone resulted in a monthly 

recurring cost of approximately $10,000 ($120,000 per fiscal year). 

In FY 2016, the Commission submitted its transition plan to the General Services 

Administration (GSA) as required for the upcoming telecommunication transition from 

Networx to EIS, and will finalize its implementation plan in FY 2019. In FY 2020, the 

Commission will continue to work with GSA on the transition activities to ensure that the 

Commission has a compliant and up-to-date telecommunication infrastructure by the 

March 2020 deadline. This is a major project for the Commission IT staff and will require 

dedicated resources to complete. 

The Commission operates a small 3-person IT team to handle all information technology 

needs for the Commission. This small and hard-working team provides all IT support for 

the Commission staff and for the public-facing web applications. However, there is a 

growing skills gap in modern, up-to-date cybersecurity. This skills gap has been highlighted 

as the Commission implements the first phase of CDM, and the Commission has realized the 

need, when funding is available, to recruit a skilled cybersecurity professional to ensure 

that the Commission competently utilizes the CDM dashboard and other cyber information 

to monitor and mitigate threats. 
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CAP Goal #2: Leveraging data as a strategic asset

The Commission also intends to continue with other modernization initiatives. The 

Commission recognizes that data contained in its docketing system is a primary strategic 

asset, and values the openness and transparency that this system affords to the general 

public. To ensure that this asset is available to all, the Commission needs to enhance its 

website to ensure compliance with Section 508 of the Rehabilitation Act, as well as conduct 

network exfiltration, phishing, and penetration testing as required by the FISMA, amended 

in 2014.

In FY 2019 and FY 2020, the Commission plans to finalize the implementation of an 

electronic records management system, including email and document control. This system 

will provide compliance with OMB/NARA Records Management directives and improve the 

safeguards and security of our records.

The following chart details the various IT projects that the Commission intends to 

implement in FY 2020, along with their estimated costs.

FY 2020 IT Project List Budgeted 

Amount

Security assessment and annual system authorization $56,406

IT service agreements and maintenance contracts $94,000

IT contract support (including support for CDM implementation) $150,000

EIS transition (telecommunication contract change) $75,000

Annual IG audit of FISMA compliance $50,000

Electronic Document and Record Management System maintenance and service 

(including application license fees TBD) $80,000

System testing (exfiltration, phishing, and penetration testing) $15,000

Cloud computing (O365, email, COOP/DR) $75,000

Total $595,406

Note: If funded less than requested by the Commission, these items will be suspended or 

delayed until funding becomes available in future years, if at all, increasing both risk and cost.

CAP Goal #3: Developing a workforce for the 21st century

The human capital goal of the Commission, as stated in the Strategic Plan, is to “recruit, 

develop, and retain a diverse, high-performing workforce.” In FY 2018, the Commission 

strategically assessed its workforce to ensure that it possessed all necessary positions to 

accomplish its core mission. In the FY 2020 budget year, this alignment of human capital

would be fully realized, should funding be available as requested. The Commission already 

outsources all HR and accounting transactional processing to the USPS Human Resources 

Shared Service Center and USPS Accounting Service Center (in support of CAP Goal #5 –

Sharing quality services).

In FY 2020, the Commission will begin formulating its new Strategic Plan and Human 

Capital Plan for the next 5 years. This effort will leverage the realignment work 
22

accomplished in FY 2019 to ensure that the Commission has assessed its mission and key 

outcomes and has integrated workforce planning into strategic planning to build the firstin-class workforce needed to meet mission needs efficiently and effectively. 

Budget Program Information

The Commission’s FY 2020 Performance Budget Plan has four programs consisting of: 

(1) Accountability and Compliance; (2) Public Access and Participation; (3) Integration and 

Support; and (4) the OIG. These programs are aligned with the goals contained in the 

Commission’s Strategic Plan.

$000 FTE $000 FTE $000 FTE $000 FTE $000 FTE

Postal Service 

Accountability & 

Compliance

 8,289 41 8,392 41 8,289 41 8,897 41 9,138 41

Public Access & 

Participation 3,021 12 3,044 12 3,021 13 3,135 13 3,157 13

Integration & 

Support 3,445 18 3,726 18 3,445 18 3,698 18 3,822 18

*Office of the 

Inspector General 445 3 536 3 445 3 478 3 498 3

Total 15,200 74 15,698 74 15,200 75 16,208 75 16,615 75

(*) This is the full amount requested by the Inspector General to fund OIG personnel (including detailees), travel, and training. 

Program

FY 2018 

Appropriation 

FY 2018 PRC 

Requirement 

FY 2019 President's 

Recommendation

FY 2020 President's 

Recommendation

FY 2019 PRC 

Requirement
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Proposed Appropriations Language

Postal Regulatory Commission

Salaries and Expenses 

(including transfer of funds)

For necessary expenses of the Postal Regulatory Commission in carrying out the

provisions of the Postal Accountability and Enhancement Act (Public Law 109-435),

$16,615,000 * , to be derived by transfer from the Postal Service Fund and expended as

authorized by section 603(a)of such Act.

* NOTE: Pursuant to 39 U.S.C Section 2009, “The President shall include [the Commission’s appropriation request], with his 

recommendations but without revision, in the budget transmitted to Congress under section 1105 of title 31.” To accommodate 

the OMB’s request in the context of developing the administration’s budget, the Commission transmits the President’s 

appropriation recommendation of $16,615,000.
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Obligation by Object Classification

Personnel Compensation $ 12,182 $ 12,122 $ 12,272 $ 12,359 $ 12,707 

Other Personnel Compensation $ 275 $ 275 $ 91 $ 216 $ 230 

Subtotal $ 12,457 $ 12,397 $ 12,363 $ 12,575 $ 12,937 

Supplies $ 1 $ 50 $ 1 $ 50 $ 42

Office Furniture & Equipment $ - $ - $ - $ 9 $ 1

Office Equipment Rental & 

Repair $ - $ 14 $ - $ 10 $ 1

Contractual Services $ 6 $ 189 $ - $ 330 $ 315

Consulting Services $ 1 $ 609 $ 6 $ 427 $ 325

Advertising $ - $ - $ 1 $ - $ - 

BLDG Repairs & Alterations $ - $ 5 $ - $ - $ 1

Subtotal $ 8 $ 867 $ 8 $ 826 $ 685 

Travel $ 1 $ 15 $ 1 $ 20 $ 6

Training $ 1 $ 32 $ 1 $ 20 $ 23

Printing & Reproduction $ 115 $ 161 $ 161 $ 160 $ 157

Lease $ 1,851 $ 1,851 $ 1,899 $ 2,181 $ 2,213

Miscellaneous, Subscriptions $ - $ 1 $ - $ 1 $ - 

Communications $ - $ 237 $ - $ 255 $ 260

Information Technology $ 767 $ 137 $ 767 $ 170 $ 334

Subtotal $ 2,735 $ 2,434 $ 2,829 $ 2,807 $ 2,993 

Total Obligations $ 15,200 $ 15,698 $ 15,200 $ 16,208 $ 16,615 

FY 2018 

Appropriation

FY 2019 PRC 

Requirement

FY 2019 President's 

Recommendation

FY 2020 Pesident's 

Recommendation

Object Classification FY 2018 PRC 

Requirement

FY 2020 PRC requirements: IT budget includes $94K for service agreement and maintenance, $150K for IT contract support, $260K for MTIPS and DualFactor, $50K for annual IG FISMA audit, $80K for Electronic Document and Records Management System. All of these IT budget items are required for 

FISMA compliance and $157K for printing (Federal Register). FY 2019 IT requirements cross multiple budget lines (communication, consulting, and 

contractual services). NOTE: Unobligated funds were used in FY 2018 and FY 2019 to offset shorfall. The unobligated funding will be completely 

exhausted by the close of FY 2019.
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Strategic Goals, Work Plans, and Performance Objectives

Postal Service Accountability

Strategic Goal 1 - Deliver accurate and objective analyses and decisions to ensure 

transparency and accountability of the Postal Service.

• Strategic Objective 1.1. Thoroughly and accurately analyze and apply statutes, 

regulations, and Commission precedent.

• Strategic Objective 1.2. Ensure transparent, accurate, and informative Postal 

Service reporting for evaluation of lawful compliance of rates and service 

performance.

• Strategic Objective 1.3. Responsibly, transparently, and efficiently lead the review 

of the existing statutory system for regulating rates and classes for Market 

Dominant products, as well as consider, and, if necessary, implement modifications 

or an alternative system. 

FY 2020 Work Plan Strategies

• Analyze, develop, and implement public policy as it relates to postal matters.

• Execute a visible and effective advisory role with regard to measureable and 

dynamic Postal Service and mail delivery service performance.

• Consult on, revise, and augment performance standards and goals for Market 

Dominant products.

• Assess and refine the rules, regulations, and systems established for publication of 

relevant Postal Service data.

• Prepare analytical framework.

FY 2020 Work Plan

• Review and evaluate Postal Service financial data.

• Enforce compliance determinations.

• Review and evaluate Postal Service international data and proposals for the UPU.

The Commission will measure success by the timeliness, thoroughness, relevance, and 

accuracy of readable work products. These indicators will be supplemented by feedback 

from commissioners and staff, the Postal Service, the State Department, and other 

stakeholders.

• Execute a visible and effective advisory role in regard to Postal Service proposals for 

changes in the nature of U.S. postal services, such as proposed changes in 
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nationwide services. Issue special reports on Commission evaluation of potential 

policy and systemic changes.

• On an annual basis, evaluate compliance with standards for service performance (39 

U.S.C. section 3653) and continue to evaluate the extent to which the Postal Service 

must use an external versus an internal measurement system.

• Consult on, revise, and augment performance standards and goals for Market

Dominant products.

• Review quarterly service performance data and maintain reports on website.

The Commission will measure success by the timeliness, quality, thoroughness, and 

accuracy of readable work products, as well as its relevance and actionable advice. These 

indicators will be supplemented by feedback from commissioners, the Postal Service, 

Congress, the postal community, and other stakeholders.

• Review the efficacy of the system for regulating rates and classes for Market 

Dominant products and propose changes, as necessary, to better meet the objectives 

of the PAEA.

• Review and evaluate Postal Service proposals to move products between Market 

Dominant and Competitive product classifications.

• Review, analyze, and evaluate workshare discounts, NSAs, and market tests. Issue 

timely, accurate reports and findings on these reviews.

• Review, analyze, and evaluate Postal Service requests for rate changes.

• Review Postal Service and other parties’ requests for changes to cost methodologies.

• Calculate cost of the Universal Service Obligation on an annual basis.

• Maintain and improve understanding of universal mail system.

The Commission will measure success by the timeliness, thoroughness, relevance, and 

accuracy of its readable work products. These indicators will be supplemented by feedback 

from commissioners, the Postal Service, Congress, the postal community, and other 

stakeholders.

Public Access and Participation

Strategic Goal 2 - Actively engage with Congress and stakeholders in support of a 

dynamic postal system.

• Strategic Objective 2.1. Continue to strengthen proactive and responsive 

communication to foster a collaborative relationship with Congress.

• Strategic Objective 2.2. Foster constructive communications with the Postal 

Service and stakeholders to streamline the regulatory process. 

• Strategic Objective 2.3. Clearly communicate complex analyses and decisions to 

address the needs of diverse stakeholders. 
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FY 2020 Work Plan Strategies

• Effectively communicate the outcome of Commission work to Congress in a timely 

fashion.

• Update the strategic communication plan to facilitate targeted congressional 

outreach.

• Participate in hearings on postal regulatory related matters.

• Facilitate efficient and effective Commission regulatory process and clearly 

articulate Commission expectations and timelines.

• Strengthen open communications with stakeholders.

FY 2020 Work Plan 

• Maintain and update comprehensive strategy for outreach to the public and media. 

Implement consistent messaging, updating, and branding for public documents and 

the Commission’s website.

• Continue to enhance government relations through proactive outreach and 

relationship building with Congress and the Executive Branch, and Federal, state, 

and local governments. 

• Maintain a timely system to track, analyze, and respond to public and consumer 

inquiries and correspondence, including “informal complaints.”

• Identify legislative and public affairs priorities. Develop Commission Annual Report. 

The Commission will measure success by responding to public inquiries within 72 hours, 

barring exceptional circumstances. 

• Maintain a consistent, transparent, and equitable formal complaint system that 

provides timely and proper due process to complainants and the Postal Service.

• Identify patterns in appeals and complaints and order appropriate remedies to 

achieve compliance.

The Commission will measure success by: 

• The percentage of post office appeals resolved within 120 days.

• The percentage of formal complaints in which affirmative action was taken within 

90 days.

• The percentage of rate and service inquiries in which responsive information is 

obtained within 60 days. The Commission will review and update as necessary 

procedures for appeals and complaints at least every 5 years. 

• Conducting public outreach through traditional media, technology tools, and other 

methods to ensure wide public notice of all Commission proceedings.

• Reviewing and simplify processes through which members of the public may 

provide their input on the Commission’s decision-making processes.
28

• Conforming with Commission policy, continually review and provide guidance to 

those appointed to represent the interests of the general public in Commission 

proceedings in order to improve performance.

Integration and Support

Strategic Goal 3 - Provide an optimal internal infrastructure to support management 

of priorities, workload, and emerging requirements.

• Strategic Objective 3.1. Optimize support infrastructure to manage and advance 

system capability, requirements, and security.

• Strategic Objective 3.2. Prioritize and manage workload to increase capacity 

and agility. 

• Strategic Objective 3.3. Collaboratively work across functions to maintain open 

internal communication and address emerging requirements. 

Strategic Goal 4 - Recruit, develop, and retain a diverse, high-performing workforce.

• Strategic Objective 4.1. Exercise Commission flexibilities to attract and retain a 

diverse, high-performing workforce.

• Strategic Objective 4.2. Maintain fair and impartial human capital management. 

• Strategic Objective 4.3. Continue to enhance the Commission’s commitment to 

being an employer of choice.

FY 2020 Work Plan Strategies for Strategic Goals 3 and 4

• Optimize IT capabilities.

• Strengthen and modernize the records management program.

• Streamline and standardize procurement policies and processes.

• Maintain ongoing communication of priorities among commissioners and senior 

staff.

• Collaborate to develop and effectively communicate administrative guidance and 

investment priorities.

• Attract and hire qualified and diverse candidates consistent with Federal laws.

• Strengthen relationships with affinity groups to ensure diverse outreach efforts.

• Maintain a Human Capital Plan.

• Maintain the Commission’s strong commitment to equal employment opportunity.

• Involve employees and participants as agents of diversity, inclusion, and mutual 

respect.

• Continue refining administrative and HR analytics to inform decision-making.
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FY 2020 Work Plan for Strategic Goals 3 and 4

• Develop and maintain the Commission’s annual budget and fiscal processes based 

on administration guidance. 

• Assess all IT security policies, practices, and enforcement procedures to ensure 

functionality and security of electronic communication systems such as website, 

dockets, Local Area Network, webcasts, email, Voice-Over-Internet Protocol 

telephony, etc. 

• Execute FY 2020 IT project plan.

• Ensure that Commission records are properly maintained in accordance with 

policies and procedures. 

• Continue to improve the records management program at the Commission. Review 

and modify, as necessary, records schedules and policies to meet records 

management directives and to simplify Commission workflow processes. Implement 

necessary technology to maintain a modern records management system, including 

management of all electronic records.

• Ensure the website – both internal and external – is current, accessible, and useful 

to stakeholders.

• Continue to maintain financial controls to ensure adequate fiscal responsibility.

• Ensure equipment and facilities are sufficient, safe, and secure.

• Enforce up-to-date IT security requirements.

The Commission will measure success in IT management by:

• Tracking implementation of IT project plan

• Refining and updating metrics and reports to measure success of IT 

implementations and cybersecurity features

The Commission will measure success in records management by:

• Ensuring a score above 85 on NARA’s annual assessment

• Ensuring that the Commission meets its records management goals and is in 

compliance with NARA directive deadlines

• Ensuring that the Commission is “all green” on the annual FOIA assessment

• Ensuring that the Commission completes all required reports and FOIA requests

accurately and in a timely manner

The Commission will measure success in financial management by:

• Decreasing the monthly variance of actual expenditures to the programmed budget 

amounts

• Tracking and implementing cost saving measures when identified, and providing 

the secretary with a comprehensive list of cost savings/avoidance achieved
30

The Commission will measure success in human resource management by:

• Continuing to execute the Human Capital Plan to ensure alignment of the workforce 

and work environment with the Commission’s mission

• Implementing hiring policies and procedures, including more robust tracking of 

targeted recruitment efforts to attract and select highly qualified candidates

• Continuing to implement a performance management system that rewards 

outstanding contributions to the Commission, and addresses employee 

development to retain high performing staff

• Identifying and sponsoring training and development opportunities to develop 

employees

• Continuing to monitor the results of the Federal Employee Viewpoint Survey 

(FEVS), and implement appropriate solutions to achieve continuous improvement

• Maintaining and enforcing up-to-date human resources policies and procedures 

(e.g., compensation, benefits, Equal Employment Opportunity to ensure a fair, 

consistent, and sustainable application)

• Conducting semi-annual pay analysis and annual demographic analysis

• Continuing the systematic review of human resource policies and updating to 

ensure alignment with best practices and current regulations

• Using the FEVS results to measure leadership effectiveness as compared to the FY 

2017 baseline

• Tracking targeted recruitment efforts by sending vacancy notices to diversity and 

affinity groups, as well as colleges and universities, to diversify the applicant pool 

for any open positions 

• Ensuring all goals in the Commission’s Occupational Safety and Health 

Administration plan are met
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Office of the Inspector General

The Commission's Office of the Inspector General was established in June 2007 as required 

by an amendment to the Inspector General Act of 1978 included in the PAEA. The 

Commission’s Inspector General has a dual reporting responsibility to both commissioners 

and Congress.

The role of the OIG is to detect and deter fraud, waste, abuse, and mismanagement within 

Commission programs, as well as to promote efficient and effective use of Commission 

resources. To accomplish this, the OIG conducts, supervises, and coordinates independent 

audits, inspections, evaluations, and other reviews in accordance with applicable law. The 

OIG communicates the results of these assessments to commissioners, Commission 

management, Congress, other oversight entities as appropriate, and to the public. 

Generally, the OIG communicates these results in formal reports that contain findings and 

recommendations aimed at correcting any deficiencies identified and at promoting 

efficiency and effectiveness in Commission programs and operations.

The OIG maintains a hotline to allow employees and the public to anonymously report 

allegations of fraud, waste, abuse, and mismanagement.

The IG requested $498,000 for the office’s personnel, travel, and training costs as well as 

the Commission contribution to the Council of Inspectors General on Integrity and 

Efficiency (CIGIE). The request includes amounts to satisfy the training requirements cost 

of $2,750 and anticipated CIGIE dues of $1,500.