Postal Service

Final Report on Compliance With 1989 Budget Reduction Mandate Gao ID: GGD-90-26 October 31, 1989

Pursuant to a legislative requirement, GAO submitted a final report on the Postal Service's (USPS) compliance with Omnibus Budget Reconciliation Act of 1987 requirements to: (1) reduce 1989 operating costs by $270 million; and (2) pay 1989 cost savings into the Federal Employees Health Benefits Fund.

GAO found that: (1) USPS exceeded the required $270 million in savings, although GAO could not determine the individual cost-reduction initiatives' effectiveness; (2) USPS estimated savings totalling $288 million from six initiatives it began in 1988, and six initiatives it added in 1989; (3) although overall USPS costs exceeded its budget, USPS reduced operating costs in certain areas by about $293 million; (4) it could not verify a USPS-estimated $37.6-million saving from automated mail processing equipment, because the corresponding employee work-hour reductions did not account for hours shifted to other work; (5) USPS complied with a legislative requirement prohibiting borrowing of funds for 1989 Health Benefits Fund payments; and (6) overall, USPS complied with legislative requirements in 1989.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.