U.S. Postal Service

Transformation Challenges Present Significant Risks Gao ID: GAO-01-598T April 4, 2001

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

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone:


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.