US Postal Service 2009 Annual Report Download - page 89

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2009 Annual Report United States Postal Service | 87
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 Offi ce of
Inspector General (OIG) primarily investigates and evaluates
programs and operations of the Postal Service to ensure the
effi ciency and integrity of the postal system.
Intelligent Mail. Products and services or a strategy used to
describe products and services that use machine readable
codes, such as barcodes, to uniquely identify mail. This en-
ables large mailers to follow the progress of their mail through
the many stages of processing all the way to delivery.
Leasehold. An asset that gives the Postal Service the right
to use property under a lease.
Liability. Any debt or obligation that is owed by the Postal
Service at some future period of time.
Mailing Services. Market-dominated products as defi ned
by the PRC. These are products for which the Postal Service
has market power to set prices substantially above costs
without risk of losing business to others. The Mailing Ser-
vices products include: First-Class Mail letters and sealed
parcels; First-Class Mail cards; Periodicals; Standard Mail;
single-piece Parcel Post; Media Mail; Bound Printed Matter;
Library Mail; Special Services; and single-piece International
Mail.
Operating Expense. Expenses that are incurred in provid-
ing our primary business services and products.
Operating Margin. A fi nancial indication calculated by di-
viding income from operations by operating revenue.
Operating Revenue. Revenues that are earned from our
primary business services and products.
OPM. Offi ce of Personnel Management. The agency that
manages and maintains the government retirement and
health benefi t plans.
Package Services. Mailing category offered for any mer-
chandise or printed matter weighing up to 70 pounds. These
services include Parcel Post, Bound Printed Matter, Library
Mail and Media Mail.
Payable. Money that is owed by the Postal Service.
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 in-
volving the mail and misuse of the postal system.
Postal Regulatory Commission (PRC) (formerly the
Postal Rate Commission). An independent federal estab-
lishment with oversight responsibility for the Postal Service
to review and approve rates, review fi nancial data and hear
and rule on rate and service complaints.
Prepaid. Payments made in advance of service being pro-
vided.
Present Value. The value today of a future payment that is
discounted at a stated rate of compound interest. For exam-
ple, 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 an-
nually.
Priority Mail. Priority mail is a 1–3-day non-guaranteed de-
livery service.
Receivable. Money that is owed to the Postal Service.
Recognize. To record in Postal Service accounts as income
or expense.
Shipping Services. Products that are not Mailing Services
and are considered competitive products. The competitive
product list includes: Priority Mail, Expedited Mail, Bulk Par-
cel Post and Bulk International Mail.
Special Services. A category of services that add value to
mail by providing added security, proof of delivery or loss
recovery. These services include: Certifi ed Mail, Registered
Mail, Delivery Confi rmation, Signature Confi rmation and in-
surance up to $1,000.
Standard Mail. Mailing service offered for any item, includ-
ing advertisements and merchandise weighing less than 16
ounces that are not required to be sent using First-Class
Mail. Standard Mail is typically used for bulk advertising to
multiple delivery addresses.
U.S. Mail. Any mailable matter that is accepted for mail pro-
cessing and delivery by the Postal Service.
Universal Service. The Postal Service’s mandate and com-
mitment to the nation to provide mail delivery service at uni-
form and reasonable rates to everyone, everywhere.
Workshare. Tasks performed by mailers that otherwise
would be done by the Postal Service, such as, preparing,
sorting, barcoding and transporting mail. Reduced postage
rates are offered to these customers.