November 15, 2021
We have audited the Reclassified Financial Statements of the U.S. Postal Service, which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report – Reclassified Balance Sheet as of September 30, 2021, and the related GTAS Reconciliation Reports – Reclassified Statement of Net Cost and Reclassified Statement of Changes in Net Position, for the year then ended (hereinafter referred to as reclassified financial statements) and accompanying Note 45 (Project Number 21-203).
“As of September 30, 2021, the Postal Service has defaulted on the required payments of $71.6 billion for the pension and health benefits programs. Starting in FY 2020, OPM established an allowance for losses for the Postal Service’s past due payments, as clarified in FASAB Technical Bulletin 2020-1. Therefore, OPM stated it will continue to report and recognize the uncollected contributions receivable from the Postal Service as a $0 realizable value. The Postal Service has stated that, since it still has a legal obligation to make these payments, it has not made changes to its accounting policy and continues to report $71.6 billion as current liabilities.”
Source: USPS Office of Inspector General