US Postal Service 2008 Annual Report Download - page 15

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2008 Annual Report United States Postal Service | 15
During the year, the Committee
heightened its focus on:
Postal Service cost control efforts
to respond to growing weakness
in the U.S. economy,
Effective transition to full
compliance with Securities and
Exchange Commission financial
reporting rules,
Progress toward 2010 compliance
with section 404 of the Sarbanes-
Oxley Act of 2002 (SOX),
Monitoring efforts to increase the
efficiency and effectiveness of
internal controls,
Enterprise Risk Management
assessments.
The Committee strongly supported
enterprise-wide, sustained actions
to streamline work processes and
reduce work-hour usage. The
Committee also encouraged the
Office of Inspector General (OIG)
and outside auditors to look for
similar process improvements and
cost reduction opportunities in the
conduct of their audits.
As part of its commitment to
increased transparency and
accountability, the Postal Service filed
its first Form 10-Q with the Postal
Regulatory Commission for Quarter
I, ending December 31, 2007. The
Committee was pleased to see a
smooth adoption to the new format
and continued improvements in
subsequent quarterly 10-Q filings.
These are positive developments and
management is to be commended as
the Postal Service transitioned to a
new regulatory framework.
Preparation for SOX compliance
featured prominently in the
Committee’s activities during the year.
The Committee received a number of
briefings on SOX requirements. We
provided oversight on the strategic
direction and guidance on decisions
related to readiness, process
improvement opportunities, and
sustained compliance efforts.
In directing the conduct of the
2008 financial statement audit, the
Committee met with Ernst & Young,
LLP, and concurred with the scope
and materiality levels they established
in their work plan. The Committee
met jointly and independently with
Ernst & Young, LLP; the Inspector
General; management; and the
General Counsel throughout the
year to discuss the progress of the
audit and ensure independence and
objectivity in the audit programs.
As a result, the Committee
recommended, and the Board
approved, the financial statements
for 2008.
Katherine C. Tobin
Chairman, Audit and
Finance Committee