The General Accounting Office Thursday partly criticized the U.S. Postal Service’s plans for overhauling its operations, known as the Transformation Plan.
While saying that the USPS has made progress in addressing its challenges, the GAO pointed to several areas where the USPS is falling short. Specifically, the GAO pointed out that:
*Despite multiple rate increases, the USPS’s net income has decreased.
*The postal service’s business model is at risk as mail volumes decline and competition and alternatives increase.
*The USPS historically has had difficulty in achieving cost savings related to its workforce and physical infrastructure.
*Its cash flow from operations has not been sufficient to fund needed capital expenditures and reduce debt pressures.
The GAO recommended that the postal service provide transparent financial and performance information and to better explain its changing financial condition, outlook, and progress toward meeting its goals.
It also recommended that the USPS:
*Work with Congress, the Presidential Commission, and stakeholders to implement the plan and report on progress and financial impact of its actions in this regard.
*Develop strategies to realign its infrastructure and workforce, to support its business model.
*Continue efforts to cut costs, improve productivity, and address long-term financial issues such as its debt and retirement-related obligations.
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