The United States Postal Service Office of Inspector General has recommended improved
Full report and response)
Postal Service needs to improve controls over off-sale inventory at the
Kansas City SFS. Management did not follow policies to dispose of
off-sale inventory in the best interests of the Postal Service. Further,
management provided Harry Potter stamps at a discount to Royal Mail
without Postal Service Headquarters' knowledge or approval.
"Management sold off-sale inventory at a discount during exclusive employee sales events. Postal Service policy requires employee sales to be held in conjunction with public sales or auctions that have been advertised to the general public.
"Harry Potter Stamps
"Management provided Harry Potter stamps at a discount to Royal Mail without headquarters'
knowledge or approval. Specifically, after verbal agreement, management provided
2,649 books of Harry Potter stamps with a face value of $24,371 (£16,564) to Royal
Mail during FY 2014.
contributed to this issue by allowing an environment in which
management operated the SFS without regard to established guidelines.
Postal Service policy states that it is unlawful for Postal Service
employees entrusted with the sale or custody of postal stamps to sell
stamps for less than face value. As of April 6, 2016, the Postal Service
has not received payment from Royal Mail and risks losing revenue of
It's hard to believe that Royal Mail took any stock from USPS without some sort of written agreement. There have been reciprocal arrangements in the past when Royal Mail sold stamp products from the USPS and Canada Post, and vice versa. Although the US$ prices set by the USPS for British products were higher than the face value equivalent, it's difficult to believe that some discount was not offered, in both directions. Possibly the main problem with the US Harry Potter issue is that nobody at PSHQ knew about it, and hence there was no documentary approval at SFS.
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