Fiscal Year 2019 Selected Financial Activities and Accounting Records
The Postal Reorganization Act of 1970 requires annual audits of the Postal Service’s financial statements. In addition, the Postal Accountability and Enhancement Act of 2006 requires the Postal Service to comply with Section 404 of the Sarbanes-Oxley Act. This section requires the Postal Service to report the scope and adequacy of its internal control structure and procedures and assess their effectiveness. In addition, a U.S. Postal Service Board of Governors (Board) resolution requires annual audits of the Board’s travel and miscellaneous expenses, and Board policies and procedures require annual audits of officer travel and representation expenses.
The Board contracted with an independent public accounting (IPA) firm to express opinions on the Postal Service’s financial statements and internal controls over financial reporting. The IPA firm maintains overall responsibility for testing and reviewing significant Postal Service accounts, processes, and internal controls. We coordinated audit work with the IPA firm to ensure adequate coverage.
Our audit objectives were to determine whether the Postal Service:
- Fairly stated accounting transactions in the general ledger and whether selected controls surrounding those transactions were designed and operating effectively.
- Properly tested, documented, and reported its examination of selected key financial reporting controls related to Postal Service Headquarters and Accounting Services.
We tested key financial reporting controls, traced accounting transactions, and reviewed support documentation in selected accounting processes and determined the Postal Service fairly stated accounting transactions in the general ledger, and selected controls surrounding those transactions were operating effectively. The Postal Service also properly tested, documented, and reported its examination of selected key financial reporting controls related to headquarters and Accounting Services.
In addition, Board personnel and Postal Service officers generally submitted travel expense reports properly. We found limited, minor issues which have been discussed and addressed.
Based on the audit results, we did not offer any recommendations.