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2000 Highlights
Letter from
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2000 Year
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Financial
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2000 Annual Report
- page 19 of 70
Chairman's Letter
The Audit Committee assists the full Board of Governors
in fulfilling their fiduciary requirements. The Chairman of the
Board of Governors selects the members of the Audit Committee for
each calendar year. This year, the Committee, whose members are
Governors Walsh, McWherter, former Governor Winters and I, met six
times in conjunction with the regularly scheduled monthly Board
meetings.
The Audit Committee is responsible, on behalf of the Board of Governors,
for reviewing the financial reporting process, ensuring the soundness
of the internal accounting and control practices and the integrity
of the financial statements of the Postal Service. The Committee
also recommends to the Board of Governors, the selection of the
independent certified public accounting firm responsible for the
external audit work and oversees compliance with the terms of the
contract.
During Calendar Year 2000, we recommended that, based on our review
of the Blue Ribbon Committee on Improving the Effectiveness of Corporate
Audit Committees, the Board approve a number of changes to the Charter
of the Audit Committee. The Blue Ribbon Committee also recommended
that companies publish their Audit Committee Charter every three
years, so we include below the full text of our revised Charter,
as approved by the Board. In addition, we recommended, and the Board
approved, a timely and efficient audit resolution process between
Postal management and the Office of Inspector General. We also recommended
the Board approve that, starting in 2001, responsibility for the
internal financial installation audit be transferred from the Inspection
Service to the Office of Inspector General, and this transition
began in 2000. Finally, we recommended and the Board approved Ernst
& Young LLP for the 2001 audit.
At the start of the audit of the 2000 financial statements, we discussed
the overall scope of work and the audit plans with Ernst & Young
LLP, the Office of the Inspector General and the Postal Inspection
Service. We also met jointly and independently with them as well
as with management and the General Counsel to discuss the progress
of the audit and their evaluation of the organization’s internal
controls and the quality of the financial reporting process. We
assessed the coordination of the audit and ensured independence
and objectivity in the internal and external audit programs.
Accordingly, the Committee recommended and the Board approved the
financial statements for 2000.
Ernesta Ballard
Chairman, Audit Committee
December 5, 2000
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