Federal Reports

Opinion on the Reclassified Financial Statements

We have audited the accompanying Reclassified Financial Statements of the U.S. Postal Service, which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report -Reclassified Balance Sheet as of September 30, 2025, and the related GTAS Reconciliation Reports -Reclassified Statement of Net Cost and Reclassified Statement of Operations and Changes in Net Position, for the year then ended (hereinafter referred to as the Reclassified Financial Statements) and accompanying Note 36. In our opinion, the Reclassified Financial Statements referred to above present fairly, in all material respects, the financial position of the Postal Service as of September 30, 2025, and its net costs and changes in net position for the year then ended in accordance with United States (U.S.) Generally Accepted Accounting Principles (GAAP).

Basis for Opinion

We conducted our audit in accordance with the standards applicable to financial audits contained in the U.S. Government Auditing Standards, issued by the Comptroller General of the U.S., and Office of Management and Budget (0MB) Bulletin Number 24-02, Audit Requirements for Federal Financial Statements. Our responsibilities under those standards are further described in the Auditor's Responsibility section. We are required to be independent of the Postal Service and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence.

We found that the company has started upgrading its maintenance facilities to support its major fleet acquisitions, but challenges in planning and managing this effort have delayed its progress. As a result, some facilities will not be ready in time to service the company’s new trains, which could hinder its ability to fully operate the new equipment at their intended service levels. Instead, the company may need to store some new trains intermittently, which could postpone the capture of additional revenue. Further facility delays—which remain a risk—would add to the existing delays in fully operating its new fleets.

Two factors contributed to these circumstances. First, the company’s facility planning has significantly lagged behind its fleet planning despite the two efforts being closely interconnected. Second, the company is separately managing dozens of facility projects rather than managing them as a single, coordinated effort, as called for by company and industry standards.

We recommended that the company continue to develop a joint strategic fleet/facilities plan that defines company goals, timelines, and next steps. We also recommended that the company develop a management framework for its facility upgrades, including a risk management process.

Background

Business mailers accounted for approximately $16.2 billion of the Postal Service’s revenue through marketing and other large-scale mailings, of which $9.4 billion (58 percent) was generated through the PostalOne! application in fiscal year 2024. PostalOne! provides business mailers with a web-based alternative to manual business mail acceptance processes and interfaces with 45 different Postal Service systems to provide mailers a streamlined process for mail entry, payment, tracking, and reporting. As such, it is critical that changes to PostalOne! are communicated and managed effectively to avoid disruptions in service.

What We Did

Our objective was to determine whether the Postal Service appropriately implemented and communicated changes to PostalOne!.

What We Found 

The Postal Service generally communicated PostalOne! changes to mailers effectively by using available resources—such as websites, alerts, briefings, and meetings—and made further improvements to communications with mailers. Further, although the Postal Service mostly followed its approved processes for change and problem management, opportunities exist to improve these processes. Specifically, the Postal Service can improve closure of changes, closure of high and critical incident tickets, and after-action reporting of incidents. Strengthening controls in the management of changes to PostalOne! can improve customers’ ability to use the application and reduce potential security risks.

Recommendations and Management’s Comments

We made four recommendations for the Postal Service to improve its change request processes, resolution of critical and high incident tickets, and after-action reporting and management agreed with all four. We consider management’s comments responsive to all four recommendations as corrective actions should resolve the issues identified in the report. Management’s comments and our evaluation are at the end of each finding and recommendation.

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