Background
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 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 2024 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 (1) selected accounting transactions in the general ledger were fairly stated and whether selected key financial reporting controls surrounding those transactions were operating effectively; (2) and selected key financial reporting controls were designed and operating effectively.
To meet our objectives, we tested 38 manual journal vouchers and ensured they were properly approved and fairly stated in the general ledger and the controls over those transactions were operating effectively. In addition, we tested 20 select financial reporting controls to ensure the controls were designed and operating effectively.
What We Found
The Postal Service fairly stated selected accounting transactions in the general ledger and controls over those transactions were operating effectively. In addition, the financial reporting controls we reviewed were designed and operating effectively.
We did not propose any adjustments or identify any control deficiencies that were material to the financial statements or that would affect the adequacy of internal controls. Our consideration of internal controls was based on limited procedures and was not designed to identify all deficiencies in internal control.
Recommendations
Based on the audit results, we did not offer any recommendations. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to our audit. See Appendix B for management’s comments in their entirety.
