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14 | 2006 Annual Report United States Postal Service
A Message from the Audit and Finance Committee
The Audit and Finance Committee assists the Board of Governors in
fulfilling its fiduciary responsibilities. The Chairman of the Board affirms
the members of the Audit Committee for each calendar year. This year
the committee, whose members are Governor Louis J. Giuliano, Governor
Carolyn Lewis Gallagher, and I met seven times in conjunction with the
regularly scheduled monthly Board meetings.
The certified public accounting firm responsible for the independent audit
of the Postal Service financial statements, Ernst & Young, LLP, reports
to the Board through the Audit Committee. The Postal Service Inspector
General (OIG) also reports to the Governors and is represented at all
Committee meetings.
The Audit and Finance Committee’s primary responsibility is oversight of
the integrity of the Postal Service’s financial statements. The Committee
monitors the Postal Service’s financial reporting processes, the soundness
of internal control procedures, as well as postal rate case development,
cash management, and overall financial performance of the Postal
Service, to ensure the integrity of its financial statements.
During the year, the Committee reviewed its charter, the audit of the
Postal Service Cost and Revenue Analysis, the attribution of cost and
estimation of revenues by class of mail; discussed the integrated financial
plan for 2007; and reviewed the OIG work plan for 2007.
Also during the year, the Committee reviewed workers compensation
programs and processes. These programs include a medical bill review
program, anti-fraud programs, and safety awareness programs.
In March, 2006, Ernst & Young LLP presented their work plan for the
financial statement audit, and we concurred with the scope and materiality
levels established. We met jointly and independently with Ernst & Young
LLP, the Inspector General, Postal Service management and the Postal
Service General Counsel to discuss progress on the audit. We also
worked to ensure that the work of the OIG and our external auditor was
independent and objective.
Accordingly, the Committee recommended, and the Board approved, the
financial statements for 2006.
James C. Miller III
Chairman, Audit and Finance Committee
December 06, 2006