Ernst and Young Expresses a Going Concern Doubt... on the Post Office?

Monday, November 16, 2009 , , 2 Comments

It's true. You can't make these things up, people.


The Postal Service reported a loss of $3.8 billion last year, despite a reduction of 40,000 full-time positions and other cost-cutting measures.

The loss was $1 billion more than the year before despite job cuts and other efforts designed to save billions of dollars, postal officials said Monday.

"Our 2009 fiscal year proved to be one of the most challenging in the history of the Postal Service," Chief Financial Officer Joseph Corbett said.

For the fiscal year that ended Sept. 30 the agency had income of $68.1 billion, $6.8 billion less than in 2008. Expenditures were down $5.9 billion to $71.8 billion.

Postmaster General John Potter is seeking permission from Congress to reduce mail delivery from six days a week to five, a move that could save the agency $3.5 billion annually.

The post office is required to make an annual contribution of about $5 billion to pay in advance for medical benefits for future retirees. Congress reduced that by $4 billion for 2009, but that change was for one year only.

The agency's independent auditor, Ernst & Young, questioned whether the post office would have enough money to make the next payment on Sept. 30, 2010, when $5.5 billion will be due.

Economic recovery: return to sender, no such person.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


beebsblog said...

The Post Office is written into the constitution, so I expect a big federal bailout.

But HEALTHCARE costs aren't the problem, it's the lack of first class mail.

OspreyFlyer said...

Pfft, healthcare & retirement benefits will bury USPS, along with $40,000+ salaries for clerks and not much need for the instition anymore. USPS will go the way of the buggy whip manufacturers eventually. Don't need a Harvard MBA to see the joke that is the USPS. Same scenario as auto workers and mine workers before them. E&Y got it right and all the rest of us, the taxpayers, will have to carry the postal workers' weight, as usual. They retire at 50 years, sheesh.