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092746 1 (1970-05-05)

handle is hein.gao/gaobacwqj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C. 20548 CIVIL flVISION MAY 5- 197 Dear Mr. lragrovet The General Accounting Office made a limited review of the Post Offic Department's financial policies for estabitshing rates for special services and for reporting revenues and related allocated costs of these services. In fiscal year 1969, revenues, fully distributed costs, and the anount charged to public service cost totalled $283.8s $399.9 and $116.1 million, respec- tively, Our review was conducted at Department headquatters in Washington, D.C. The purpose of this letter is to notify you that we are espending our review behuse of the recent changes adopted by the Department in developing and reporting revenues and costs of the different classes of mail and serv- iees. Also, we plan to look into the special services as a part of our cute rent examination of the Revenue and Cost Analysis Systems and Report. The Cost Ascertainment Reports showed that public service losses and costs' attributed to special services rose from $13.0 million in 1958 to $92.6 million in 1968. The Revenue and Cot Analysis Report Issued in April 1970 for fiscal year 1969 showed the public service costs rose to $116.1 million or an increase of 023.5 million over fiscal year 1968. Recently Department officials, In testifying before the Subcommitten on Postal Rates, House Vost Office and Civil Service Committeo, stAt4d thiat all mail services should recover at least their demonstrably related cote. The Revenue and Cost Analysis Report, however, shows that regiotry And spe.' clt delivery services did not recover at least their demonstrably related costs in fi8ct year 1969. For the two services, the report shows that tuch unrecovered coats totalled #15.4 million, We will appreciate being advised of the actions taken by the Department to revise rates to recover appropriate costs for these serviced. We appreciate the coperation extended our rapreuentatives during our liited rnview. Sincerely youws, Frank Medien XkCUIEN T AVAABLE wa A. Neuwirth Associate Direeter The flonorable Jae's W. Bargrove ot 1 - Assistant Postmaster General 0C)

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