The Postal Reorganization Act of 1970 requires annual audits of the U.S. Postal Service’s financial statements. 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.
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 2023 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.
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 (ASCs).
To meet our objectives, we tested key financial reporting controls and reviewed supporting documentation for selected accounting processes. In addition, we reviewed Digital Data Quality Review samples, Manual Journal Vouchers, and Workers’ Compensation Claims.
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 adequacy of internal controls. We identified minor documentation issues and discussed with management.
Based on the audit results, we did not offer any recommendations.