US Postal Service 2005 Annual Report Download - page 71

2005 Annual Report United States Postal Service | 61
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.
Government Accountability 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 independent 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.
Leasehold. 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.
Operating Margin. A financial indication calculated by
dividing income from operations by operating revenue.
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 investigating 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.
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% 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 mailboxes, 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.
U.S. Mail. Any mailable matter that is accepted for mail
processing and delivery by the Postal Service.
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, the
Postal Service fiscal year, which is the 12-month period
during which the Postal Service keeps accounts, beginning
Oct. 1 and closing Sept. 30.