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<classification authority="sudocs">GA 1.13:T-GGD-97-88</classification>
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 <subject>Mail delivery problems</subject>
 <subject>Privatization</subject>
 <subject>Profits</subject>
 <subject>Competition</subject>
 <subject>Internal controls</subject>
 <subject>Customer service</subject>
 <subject>Postal rates</subject>
 <subject>Labor-management relations</subject>
 <subject>Mail transportation operations</subject>
 <subject>Postal service</subject>
 <identifier>USPS Express Mail Corporate Account</identifier>
 <identifier>USPS Express Mail Program</identifier>
 <identifier>USPS National Bulk Mail System</identifier>
 <identifier>USPS National Change of Address Program</identifier>
 <identifier>USPS Capital Investment Plan</identifier>
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<titleInfo>
 <title>U.S. Postal Service: Continued Challenges to Maintaining Improved Performance</title>
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<abstract>GAO discussed: (1) the performance of the Postal Service (USPS) and the
need for improving internal controls and protecting revenue in an
organization that takes in and spends billions of dollars each year; (2)
key reform and oversight issues that continue to challenge USPS and
Congress as they consider how U.S. mail service will be provided in the
future; and (3) its ongoing work relating to labor-management relations
at USPS and other issues.&lt;p/&gt;GAO noted that: (1) USPS reported that fiscal year (FY) 1996 represented
the second year in a row that its financial performance was profitable
and operational performance improved; (2) USPS&apos;s 1996 net income was
$1.6 billion and it delivered 91 percent of overnight mail on time; (3)
additionally, for FY 1996, USPS&apos;s volume exceeded 182 billion pieces of
mail and generated more than $56 billion in revenue; (4) while these
results are encouraging, other performance data suggest that some areas
warrant closer scrutiny; (5) last year&apos;s delivery of 2-day and 3-day
mail, at 80 and 83 percent respectively, did not score as high as
overnight delivery; (6) the concern among customers is that USPS&apos;s
emphasis on overnight delivery is at the expense of 2-day and 3-day
mail; (7) additionally, although its mail volume continues to grow, USPS
is concerned that customers increasingly are turning to its competitors
or alternative communications methods; (8) in 1996, mail volume
increased by about one-half of USPS&apos;s anticipated increase in volume;
(9) containing costs is another key challenge that GAO has reported on
previously; (10) GAO has also found several weaknesses in USPS&apos;s
internal controls that contributed to increased costs; (11) USPS&apos;s
continued success in both financial and operational performance will
depend heavily on controlling operating costs, strengthening internal
controls, and ensuring the integrity of its services; (12) the prospect
that pending postal legislation may place USPS in a more competitive
arena with its private sector counterparts has prompted congressional
consideration of some key reform issues; (13) these issues include how
proposed changes to the Private Express statutes may affect universal
mail service, postal revenues, and rates; (14) another reform issue is
the future role of USPS in an increasingly competitive, constantly
changing communications market; (15) congressional oversight remains a
key tool for improving the organizational performance of USPS; (16) one
of the most important areas for oversight is labor-management relations,
(17) despite the initiatives that have been established to address them,
the long-standing labor-management relations problems GAO identified in
1994 remain unresolved; (18) the Government Performance and Results Act
provides an important avenue for stakeholders in reaching a consensus
for addressing such problems; and (19) also, USPS&apos;s automation efforts *</abstract>
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<identifier type="preferred citation">GAO/T-GGD-97-88</identifier>
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<note>Testimony</note>
<extension>
 <searchTitle>GAO/T-GGD-97-88; U.S. Postal Service: Continued Challenges to Maintaining Improved Performance;
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<subject>
 <topic>Mail delivery problems</topic>
 <topic>Privatization</topic>
 <topic>Profits</topic>
 <topic>Competition</topic>
 <topic>Internal controls</topic>
 <topic>Customer service</topic>
 <topic>Postal rates</topic>
 <topic>Labor-management relations</topic>
 <topic>Mail transportation operations</topic>
 <topic>Postal service</topic>
 <topic>USPS Express Mail Corporate Account</topic>
 <topic>USPS Express Mail Program</topic>
 <topic>USPS National Bulk Mail System</topic>
 <topic>USPS National Change of Address Program</topic>
 <topic>USPS Capital Investment Plan</topic>
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