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# USPS audit confirms longstanding mail issues in SD
- URL: https://www.sdnewswatch.org/postal-service-usps-audit-mail-delays-south-dakota/
- Published: 2026-09-24T22:42:55.000Z
- Updated: 2026-09-25T01:47:05.000Z
- Description: Mail sent between South Dakota addresses often shipped out-of-state, contributing to long delivery times "below nationwide averages."
- Author: Molly Wetsch
- Tags: News/Investigations

An [official report from the Office of the Inspector General](https://www.uspsoig.gov/sites/default/files/reports/2026-09/26-038-r26.pdf?ref=sdnewswatch.org) for the U.S. Postal Service has brought further clarity to ongoing questions of the organization's performance in South Dakota, nearly a year after one of the state's congressional members called it into question.

The 30-page report published Wednesday comes from an audit initiated by U.S. Sen. Mike Rounds in December. The South Dakota Republican has been frequently critical of the postal service in the past and [introduced legislation last month](https://www.sdnewswatch.org/south-dakota-postal-service-mail-congress-legislation/) that would prohibit bonuses for high-level postal service staff as long as issues with delivery continue. 

News Watch reported in June 2025 that newspaper publishers and others in the state were frustrated with USPS' mail delivery times, with some saying it hindered their business operations. An analysis of USPS data found that some regions in South Dakota saw average delivery times of as long as four days for newspapers.

A representative from USPS did not immediately respond to a request for comment Thursday.

## Modernization plan to blame

The inspector general's audit found that mailing services in South Dakota were significantly impacted by the postal service's modernization plan, which included the move of originating mail processing out-of-state to Denver, Fargo, North Dakota, and Omaha, Nebraska. 

The moves, which were part of USPS’s Delivering for America plan, aimed to “modernize the nation’s aged and neglected postal network.”

"Service performance declined across multiple mail classes and customers experienced longer delivery times, impacting rural communities who depend on the Postal Service for essential and time-sensitive items," one finding said.

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USPS also did not properly communicate the lapse in on-time delivery to customers, the report said. 

The report also said that mail sent between addresses in South Dakota was often first sent to processing facilities in Colorado, North Dakota and Nebraska. As part of the audit, the inspector general's office conducted a test of 120 packages sent from one South Dakota address to another via Priority Mail. 

It revealed that more than 30% of those items were sent out of state before arriving back in South Dakota. Routes tested included packages sent from Rapid City to Pierre and Sioux Falls to Huron. One piece of mail, the office said, was mis-sent to Royal Palm, Florida's distribution center, before returning to South Dakota. 

## 3 recommendations

The report also included three recommendations for how the service can improve its processes in South Dakota:

- "Determine the feasibility of centralizing processing and restoring transportation for intrastate connectivity as part of a South Dakota – specific processing plan that includes defined milestones, transition timelines, and facility operational responsibilities."
- "Align intrastate service standards to appropriate delivery timeframes as mail is moved back in‑state for processing."
- "Establish a required process to publicly communicate any impacts to mailers and residential customers, prior to implementation, when moving processing operations of a three digit ZIP Code to another processing facility."

USPS management, according to the report, agreed with all three recommendations and provided information on corrective actions it would take to improve service. 

One of the largest actions will transform how mail is processed in the state. 

[USPS announced Tuesday](https://www.sdpb.org/2026-09-22/usps-planning-upgrades-for-sioux-falls-processing-plant?ref=sdnewswatch.org) that it would upgrade its Sioux Falls plant to a regional processing and distribution center beginning next year. When upgraded, the facility will handle most mail sent within South Dakota rather than other regional hubs like Omaha and Fargo. That move, the service said, has benefits including "potentially reducing travel time for a letter by one to two days."

[‘They just won’t listen:’ Rural SD’s USPS frustrations growPostal service tries to modernize but has significantly hindered day-to-day life and operations.![](https://storage.ghost.io/c/cb/ab/cbabab5e-2dc6-462c-94a0-b72956c0d224/content/images/icon/SDNW-Logo-Vertical-5fa3c3a9-522e-4fc8-b118-9aaf4c0f8ff9.jpg)South Dakota News WatchMolly Wetsch![](https://storage.ghost.io/c/cb/ab/cbabab5e-2dc6-462c-94a0-b72956c0d224/content/images/thumbnail/postbox-1-2b08ea0a-ea8f-42ce-8fbe-79464f41a74d.jpg)](https://www.sdnewswatch.org/usps-postal-delays-newspaper-delivery/)

Rounds, who previously told News Watch that he "rejected" any suggestion that mail service was acceptable in South Dakota, issued a statement Thursday on the report.

"We’ll be watching the USPS’s team closely to see if and how these recommendations are implemented, and whether they actually make meaningful improvements in delivery time," he said. "Until then, we’ll keep the pressure on and continue to fight for a return to service standards that not only meet but exceed expectations.” 

While the report laid out specific recommendations for improvement in service, it also acknowledged that South Dakotans may have to remain patient. 

"As the Postal Service continues implementing its nationwide network redesign, South Dakota will remain one of the most uniquely affected states. Network modernization efforts have already routed intrastate mail hundreds of miles through multiple out‑of‑state facilities and removed the direct processing and transportation links that once kept mailflow within South Dakota."

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**South Dakota News Watch* is an independent nonprofit. *Read*, *subscribe* for free and *donate* at* [*sdnewswatch.org*](http://sdnewswatch.org/?ref=sdnewswatch.org)*. *Contact* reporter/*[*Report for America*](https://www.reportforamerica.org/?ref=sdnewswatch.org) *corps member Molly Wetsch: 605-531-7382/*[*molly.wetsch@sdnewswatch.org*](mailto:molly.wetsch@sdnewswatch.org)*.*