Financial Reporting

The Postal Reorganization Act of 1970 requires an annual audit of the U.S. Postal Service’s financial statements. The Financial Reporting Directorate plans and conducts audits in support of the Board of Governors’ independent public accountants’ (IPA) overall opinion on those statements. These audits assist in determining whether the Postal Service fairly presents the financial statements, whether they comply with direct and material laws and regulations, and whether internal controls are in place and effective. We conduct these audits at Postal Service Headquarters and the accounting service centers.

The Postal Accountability and Enhancement Act of 2006 requires compliance with section 404 of the Sarbanes-Oxley (SOX) Act of 2002, which integrates an audit of internal control over financial reporting into the above financial audit. We coordinate the Office of Inspector General's SOX responsibilities in support of the IPA’s opinion on the effectiveness of the Postal Service’s internal control over financial reporting with the Policy Formulation and Financial Controls Directorate.

In addition, the Financial Reporting Directorate audits Postal Service financial statement amounts in support of the Consolidated Financial Report of the U.S. government and conducts other financial audits to identify areas for improvement.