Postal News
FOR IMMEDIATE RELEASE
July 2, 2002
Contact: (202) 268-2155
Release No. 02-052
U.S. Postal Service Selects Ernst & Young LLP For External Auditing And Accounting Services
WASHINGTON, DC - The Postal Service Board of Governors today announced the selection of Ernst & Young LLP as their independent auditor to perform external auditing services for the U.S. Postal Service.
"We are very pleased that Ernst & Young will serve as the Postal Service's independent auditor and are confident they will continue to provide the high level of professional services for us that they have in the past," said Board Chairman Robert F. Rider.
The review and recommendation process-conducted by the Board's three-member Audit and Finance Committee-took approximately one year to complete, according to Committee Chairman Ernesta Ballard.
"We conducted a thorough, competitive selection process that involved in-depth technical reviews and interviews of all firms that were qualified contenders for our contract," said Ballard. "Ernst & Young is a highly regarded accounting firm and certainly has the requisite experience and national scope needed to meet the requirements of the Postal Service."
The competitively awarded five-year contract, with an option for renewal of up to 36 months, has an estimated value of $11.6 million. In line with previous Postal Service policy, its external auditor will not provide the Postal Service consulting work for the duration of its contract. In addition to Ernst & Young. previous external auditors for the Postal Service included Ernst & Whinney and Arthur Young.
About the Audit and Finance Committee
The Audit and Finance Committee is composed of three Governors and assists the full Board of Governors in fulfilling its fiduciary requirements. To do so, it closely follows recommendations of the "Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees" established in 1998 by the New York Stock Exchange and the National Association of Securities Dealers.
The Audit and Finance Committee's responsibilities include oversight of the financial reporting process, the soundness of the internal accounting and control practices, and the integrity of the financial statements, as well as postal rate case development, cash management, and overall financial performance.
About the Board of Governors
The Postal Service Board of Governors includes nine Governors appointed by the President of the United States, with the advice and consent of the U.S. Senate. In turn, the Governors select the Postmaster General and, along with the Postmaster General, select the Deputy Postmaster General, both of whom also serve on the Board.
The Board of Governors is comparable to the Board of Directors of a publicly owned corporation. The Board directs and controls the expenditures of the Postal Service, joins in long-range planning and reviews the practices and policies of the Postal Service. Many of these activities are coordinated through the various committees of the Board.
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