The OIG issues audit reports almost every week. Often, we prioritize areas where we believe a review is needed, and sometimes we report important service, operational, or other issues that attract attention from stakeholders and even the media.

Some postal areas, however, are so important that they need to be examined regularly regardless of how well things are operating. Our work reviewing USPS’s financial statements falls into this category. Stakeholders must have assurance that the Postal Service’s financial reporting is accurate. This audit work doesn’t usually generate headlines, but it is vital to ensuring that everyone can rely on these reports.

Unlike most federal agencies, the law requires the Postal Service reports its financial results similar to how public companies do, by using the Securities and Exchange Commission quarterly and annual forms —10-K and 10-Q. In addition, the Postal Service produces reclassified financial statements that are suitable for the U.S. Treasury to include in its overall Financial Report of the U.S. Government.

Our financial auditors help ensure the accuracy of this information in several ways. First, we meet regularly and coordinate with the Postal Service’s external auditors. While we both are responsible for meeting our own audit objectives, we also sometimes rely on each other’s work. Second, we look over the Postal Service’s 10-K and 10-Q reports for accuracy and completeness at the request of the Board of Governors.

Third, every year, we conduct an independent audit of the Postal Service’s reclassified financial statements to assess whether they are free from material misstatement. Finally, our financial audit teams conduct regular performance reviews examining information in key USPS financial systems. For example, we recently reviewed how well the Postal Service complied with the Bank Secrecy Act’s provisions to deter money laundering. Last month, we issued an audit examining how the Postal Service was spending the funds it received from Congress for electric vehicles and infrastructure.

What questions do have about the Postal Service’s financial reporting? Let us know in the comments below.