{"id":44334,"date":"2016-02-18T09:30:48","date_gmt":"2016-02-18T14:30:48","guid":{"rendered":"http:\/\/www.21cpw.com\/?p=44334"},"modified":"2016-02-18T09:34:03","modified_gmt":"2016-02-18T14:34:03","slug":"usps-oig-blog-finances-stabilize-or-maybe-not","status":"publish","type":"post","link":"https:\/\/www.21cpw.com\/usps-oig-blog-finances-stabilize-or-maybe-not\/","title":{"rendered":"USPS OIG Blog: Finances Stabilize, or Maybe Not"},"content":{"rendered":"
<\/i><\/a><\/span>\n<\/i><\/a><\/span>\n<\/i><\/a><\/span><\/div><\/div><\/div>

\"us-capitol-dome\"It\u2019s hard to know whether the U.S. Postal Service should have as its theme song \u201cWe\u2019re in the Money\u201d or \u201cBrother, Can You Spare a Dime?\u201d Its just-released financial results for the first quarter of fiscal 2016 suggest both are accurate \u2013 depending on how you read the statements.<\/p>\n

Spurred by record volume of holiday packages, the Postal Service had operating revenue of $19.3 billion from September through December 2015, an increase of 3.3 percent over the same period last year. Controllable income totaled $1.3 billion \u2013 that\u2019s income that covers the Postal Service\u2019s operational expenses but not large prepayments into a retiree health benefit fund. It reported $307 million in net income for the period.<\/p>\n

Looks good so far, right? Well, not so fast. Postal officials said finances may not be as rosy as they appear. Officials noted most of the net income resulted from a $1.2 billion favorable change in workers\u2019 compensation due to changes in interest rates. This is a factor outside the Postal Service\u2019s control. It got another boost from the exigent postage rates that are set to expire in April. Without these favorable impacts, the organization would have reported a net loss of about $700 million in the first quarter, postal officials noted.<\/p>\n

It\u2019s not easy for customers to know exactly what the Postal Service\u2019s financial position is \u2013 something Inspector General David Williams<\/strong> discussed in recent testimony<\/strong><\/a><\/span> to the Senate Committee on Homeland Security and Governmental Affairs.<\/p>\n

\u201cIt is very difficult to decide what is actually needed to stabilize the infrastructure when prefunding activities are commingled with actual ongoing financial operating data,\u201d Williams said about the $5 billion prefunding payments the Postal Service is required to make each year into the Retiree Health Benefit Plan. These payments show up as annual losses in financial statements even if no cash is spent.<\/p>\n

\u201cMost stakeholders are simply lost attempting to understand postal financial reports,\u201d he said.<\/p>\n

Worse, though, this muddled financial picture \u201ccauses confusion about the road ahead for the Postal Service,\u201d Williams\u2019 testimony says. The United States needs to invest in the postal infrastructure if it intends to keep pace with the rest of the world and support innovators, citizens, and businesses, he concluded.<\/p><\/blockquote>\n

What is your reaction to the Postal Service\u2019s first quarter financial results?<\/p>\n

Source: Finances Stabilize, or Maybe Not | USPS Office of Inspector General<\/a><\/em><\/p>\n

<\/i><\/a><\/span>\n<\/i><\/a><\/span>\n<\/i><\/a><\/span><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

It\u2019s hard to know whether the U.S. Postal Service should have as its theme song \u201cWe\u2019re in the Money\u201d or \u201cBrother, Can You Spare a Dime?\u201d Its just-released financial results for the first quarter of fiscal 2016 suggest both are accurate \u2013 depending on how you read the statements. Spurred by record volume of holiday…<\/p>\n

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