US Postal Service 2003 Annual Report Download - page 65

glossary
2003 annual report united states postal service | 63
Accruals: Revenue and expenses that are
recorded as they occur, even though they may
not have actually been paid.
Amortize: To reduce the value of an asset
through regular charges to income over time; or
to write off expenses by prorating them over a
period of time.
Anthrax: An infectious disease caused by
Bacillus anthracis. Human anthrax has three
major clinical forms: cutaneous, inhalation and
gastrointestinal.
Appropriation: Public funds set aside by
Congress for a specific purpose.
Bar code: A series of vertical full bars and half
bars representing the ZIP Code information
printed on a mailpiece to facilitate automated
processing by bar code reader equipment.
Biohazard: A biological material especially if
infective, that poses a threat to humans or their
environment.
Capitalize: To treat an expenditure as an asset;
or to compute the present value of a future
payment that will be paid over a period of time.
Contribution: The difference between the
revenue from a class of mail and that class’s
volume-variable costs. For example, if a class of
mail has revenue of $1.5 billion and volume-
variable costs of $1 billion, its contribution is
$500 million, which means that this class of
mail covers its costs and contributes $500
million to the common costs of all mail services.
Delivery Confirmation: Delivery Confirmation is
a special service designed to provide the date of
delivery or attempted delivery for Priority Mail
and Standard Mail parcels, bound printed
matter and library mail.
Depreciate: To periodically reduce the esti-
mated value of an asset over the course of its
useful life.
Deputy Postmaster General (DPMG): A member
of the Board of Governors, jointly appointed by
the Postmaster General and Governors.
Direct Mail: A form of advertising often
employed by businesses to reach targeted
groups of potential customers by mail.
Equity: The difference between the value of all
assets less all liabilities.
Express Mail: The Postal Service’s premium
delivery service, providing guaranteed overnight
delivery for documents and packages weighing
up to 70 pounds. Both domestic and interna-
tional services are offered.
First-Class Mail: A class of mail including
letters, postcards, and postal cards, all matter
wholly or partially in writing or typewriting, and
all matter sealed or otherwise closed against
inspection.
Fixed Asset: Any tangible property such as
buildings, machinery and equipment, furniture,
and leasehold improvements, with a cost over
$3,000 and a useful life of greater than one
year.
General Accounting Office (GAO): investigative
arm of legislative branch of federal government
(Congress).
Generally Accepted Accounting Principles
(GAAP): The rules and procedures of accepted
accounting practice as defined by the Financial
Accounting Standards Board.
Gross Domestic Product (GDP): The total
market value of all the goods and services
produced in one year in the United States.
Inspector General: The Inspector General is
appointed by and reports directly to the
Governors of the Postal Service and is inde-
pendent of postal management. The Office of
Inspector General (OIG) primarily investigates
and evaluates programs and operations of the
Postal Service to ensure the efficiency and
integrity of the postal system.
Irradiation: Treatment or therapy by exposure to
radiation.
Leasehold Improvement: An asset that gives the
Postal Service the right to use property under a
lease.
Liability: Any debt or obligation the Postal
Service is bound to pay.
Office of Personnel Management (OPM):
agency of federal government responsible for
human resource policies and benefits for federal
government employees.
Other Postemployment Benefits (OPEBS):
OPEBS include retirement benefits other than
pensions, such as retiree health benefits.
Periodicals: A class of mail, formerly called
second-class mail, that consists of magazines,
newspapers, and other publications.
Postal Inspection Service: The investigative arm
of the Postal Service responsible for investigat-
ing criminal acts involving the mails and misuse
of the postal system.
Postal Rate Commission (PRC): An independent
federal agency that makes recommendations
concerning Postal Service requests for changes
in postal rates and mail classifications.
Postmaster General (PMG): The chief executive
officer of the Postal Service, appointed by and
serving at the pleasure of the Governors.
Present Value: The value today of a future
payment that is discounted at a stated rate of
compound interest. For example, the present
value of $100 that will be paid to the Postal
Service 10 years from now is about $38.55, if
we discount that $100 at a rate equal to 10
percent interest compounded annually.
Priority Mail: Priority Mail provides two- to
three-day delivery service.
Processing and Distribution Center (P&DC): A
large mail-sorting and dispatching plant that
serves as a hub for mail originating from post
offices, collection boxes and customer mail-
boxes, and large-volume mailers in a
designated service area.
Receivable: Money that is owed to the Postal
Service.
Recognize: To record in Postal Service accounts
as income or expense.
Standard Mail: Bulk advertising mail formerly
known as Third-Class Mail.
Tracking: Maintenance of records concerning
various aspects of mailings such as response
rates, mail dates and location of respondents.
U.S. Mail: Any mailable matter that is accepted
for mail processing and delivery by the Postal
Service.
United States Postal Service (USPS): The
successor to the Post Office Department, the
USPS was established by the Postal
Reorganization Act of July 1, 1971, as an inde-
pendent, self-supporting federal agency within
the executive branch.
Universal Service: The Postal Service’s mandate
and commitment to the nation to provide mail
delivery service at uniform and reasonable rates
to everyone, everywhere.
Year: As used in the financial section of this
report, it means the Postal Service fiscal year,
which is the 12-month period during which the
Postal Service keeps accounts, beginning
October 1 and closing September 30.