This testimony discusses the challenges facing the U.S. Postal Service. Overall the Service faces major challenges that collectively call for a structural transformation if it is to remain viable in the 21st century. The Service's financial outlook has worsened, and it is not clear how the Service will address its mounting financial difficulties and other challenges. These challenges include (1) reduced net income, (2) increased debt, (3) increased competition, (3) management-labor relations problems, and (4) statutory restrictions. Because of the Service's rapidly deteriorating financial situation, GAO is placing the Service on its high-risk list. GAO believes that several actions need to be taken to address the Service's continued problems. Such actions include (1) developing a comprehensive plan to address the financial, operational, and human capital challenges; (2) providing quarterly financial reports to Congress and the public; and (3) identifying, in conjunction with GAO and other stakeholders, improvement options that will cut costs and improve productivity.
Recommendations for Executive Action
|United States Postal Service||The U.S. Postal Service should develop a comprehensive plan, in conjunction with Congress and other stakeholders, such as the postal unions and management associations, customers, and the Postal Rate Commission, that would identify the actions needed to address the Service's financial, operational, and human capital challenges and establish a timeframe and specify key milestones for achieving positive results.|
|United States Postal Service||The U.S. Postal Service should provide summary financial reports to Congress and the public on a quarterly basis. These reports should present sufficiently detailed information for stakeholders to understand the Service's current and projected financial condition, how its outlook may have changed since the previous quarter, and its progress toward achieving the desired results specified in its comprehensive plan.|