The Postal Reorganization Act of 1970 requires annual audits of the U.S. 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 establish and maintain an adequate internal control structure and procedures, and assess the effectiveness.
The U.S. Postal Service Board of Governors contracted with an independent public accounting (IPA) firm to express opinions on the Postal Service’s fiscal year 2022 financial statements and internal controls over financial reporting (an integrated audit). The IPA firm maintained overall responsibility for testing and reviewing significant Postal Service accounts, processes, and internal controls. We coordinate audit work with the IPA firm to ensure adequate coverage.
What We Did
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 at Headquarters (HQ) and Accounting Service Centers (ASC).
To answer our objectives, we tested 27 key financial reporting controls, traced selected accounting transactions and reviewed supporting documentation for 12 accounting processes.
What We Found
The Postal Service fairly stated accounting transactions in the general ledger and selected key controls over those transactions were designed and operating effectively. In addition, the Postal Service properly tested, documented, and reported its examination of selected key financial reporting controls related to HQ and ASCs.
We did not propose any adjustments or identify any issues or control deficiencies that were material to the financial statements or that would affect the overall adequacy of internal controls. We identified minor documentation issues that we discussed with management.
Based on the audit results, we did not offer any recommendations.