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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Recent Comments

  • 5 days 2 hours ago
    Service standards may need improvement . There is always room for improvement however time wasting practices are not enforced. Floor plans such as work triangles where distances to collect product...
  • 5 days 4 hours ago
    I often post letters from the mailboxes at airports before I take off or as I land. Recently I've noticed it takes 6 days for a letter to go across town, a distance of 20 miles. For example I...

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