The United States Postal Service (USPS) is in the list of "high risk" of the US (GAO) since 2009. It happens that the body does not have enough income to cover its expenses and to meet its financial obligations, and, therefore, it requires the attention of Congress and the executive branch to achieve a restructuring.

The entity that controls the mail service in the United States is subject to the evolution of technology and therefore presents a sharp decline in mail volumes. GAO has it that from 2006-2012, the amount of mail fell from 213 billion dollars to 160 billion.

While the Postal Service reduced its spending a bit, it was not able to do it fast enough to offset the sharp decline in mail volume. Although the Post generated a new source of revenue, such as package delivery services, its borrowing limit reached 15 billion dollars in 2012.

Given this situation, the US audit says that the body needs "a major restructuring to accommodate changes in consumption, align their income and generate sufficient funds for investment and debt management."

Who Requested the Mail?

It was in 2012 when the US Postal Service had to face a million dollar debt. That year the agency issued a plan with specific actions to improve their situation: reducing staff by more than 55 thousand employees and closing 111 electronic processing plants.

It should also be noted that due to the great loss of money, the USPS can not fund health benefits for retirees of the Postal Service. Therefore, the agency asked Congress that would reduce the frequency of mail delivery from six to five days a week. That is, by reducing work hours, costs are cut and, therefore, there are enough funds for those people who reached retirement status.

Recommended by the Audit

From these observations, the GAO developed a series of strategies for the US Postal Service so it can generate revenue, reduce costs, increase efficiency by optimizing their work and restructure the financing of pensions for their retirees.

The report argues that "the Postal Service must continue taking measures to reduce costs associated with its operations, manpower and facilities" so that it can increase revenues and eliminate its net loss, repay debt, and generate investment capital.

Finally, the monitoring body suggested that Congress "adopt a comprehensive package of actions, especially, to pay health benefits for retirees."