What’s the Right Level of Financial Reporting?

If you’re reading this blog, you likely have an interest in the Postal Service and its financial welfare. How can the Postal Service provide you and other stakeholders with the most appropriate financial information? When the Postal Accountability and Enhancement Act (the Act) was enacted on December 20, 2006, it made significant changes to the Postal Service’s financial reporting responsibilities and governance.

 

Options for the Postal Service

As Pushing the Envelope noted 8 weeks ago, the Postal Service is facing a severe financial challenge. There are concerns the Postal Service could end this year without enough cash to pay all of its bills. The Postal Service attributes its problems to two major factors: (1) the long-term erosion of high-margin First-Class Mail volume because of electronic diversion and (2) drastic volume losses due to the current recession. The Postal Service has asked Congress to

 

The Postal Service’s Financial Crisis

The Postal Service lost $2.8 billion in fiscal year (FY) 2008. This year, the Postal Service is concerned its loss could grow to $6 billion or more. Since the Postal Service is limited by law from borrowing more than $3 billion per year and the Postal Service started 2009 with only $1.4 billion cash on hand, there is a danger the Postal Service could face a liquidity problem as payroll and benefits alone are about $54 billion a year.

 

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  • 1 day 16 hours ago
    USPS is no doubt vital to America. Just quit delivery of packages, and junk mail services. When I get mail I like to know it's important. Sell unneeded infrastructure and do what we as citizens...
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    There's a real catch 22 for the consumers when the USPS doesn't deliver an Amazon Prime package within the "Guaranteed Delivery Terms and Conditions" time we pay for. You get...

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