Federal Register, Volume 74 Issue 207 (Wednesday, October 28, 2009)

[Federal Register Volume 74, Number 207 (Wednesday, October 28, 2009)]
[Proposed Rules]
[Pages 55504-55505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25994]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2010-3; Order No. 321]


Periodic Reporting Rules

AGENCY: Postal Regulatory Commission.

ACTION: Proposed rulemaking; availability of rulemaking petition.

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SUMMARY: This document announces a proposed rulemaking in response to a 
recent Postal Service petition involving periodic reporting rules. The 
petition, which is the twenty-first in a recent series, addresses the 
Postal Service's request to prepare annual compliance reports using 
only the pro forma adjustment financial results.

DATES: Comments are due November 2, 2009.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in FOR 
FURTHER INFORMATION CONTACT by telephone for advice on alternatives to 
electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION: Prior to September 30, 2009, section 103 of 
the Postal Accountability and Enhancement Act (PAEA) required the 
Postal Service to pay $5.4 billion each year into the Postal Service 
Retiree Health Benefit Fund. Public Law 109-435, 120 Stat. 3251 (2006). 
On September 30, 2009, Congress adopted the 2010 Continuing 
Appropriations Resolution, which, among other things, reduced the 
payment due on September 30, 2009 from $5.4 billion to $1.4 billion. 
Legislative Branch Appropriations Act, 2010, Public Law 111-068. It 
made the revision retroactive by directing that it take effect as if it 
had been part of the enactment of section 803(a)(1)(B) of the PAEA in 
2006.
    The President did not sign the 2010 Continuing Appropriations 
Resolution until the following day, October 1, 2009. According to 
Generally Accepted Accounting Principles (GAAP), books of account are 
closed on the last day of the fiscal year. Therefore, under GAAP, the 
relief contained in the continuing resolution cannot be reflected in 
the Postal Service's financial accounts for FY 2009.
    In an effort to both comply with GAAP, and with the intent of 
Congress to relieve the Postal Service from $4 billion in health care 
funding obligations covering the 2009 fiscal year, the Postal Service 
anticipates filing audited financial statements for both FY 2009 and FY 
2010 that present results according to GAAP, but add a column showing a 
pro forma adjustment of those results which would show the $4 billion 
reduction in health care obligation taking effect in FY 2009, rather 
than FY 2010. The Postal Service provided suggested language in its 
filing which can be accessed via the Commission's Web site: http://www.prc.gov/Docs/65/65273/Pet.Prop.21.PSRHBF.Accntng.pdf.
    On October 20, 2009, the Postal Service filed a Petition with the 
Commission asking it to amend its periodic reporting rules to allow the 
Postal Service to prepare the annual compliance reports that it 
provides to the Commission each year using only the pro forma 
results.\1\ It argues that the pro forma results would better serve the 
regulatory goals of the Commission because they would more accurately 
reflect its actual financial condition, and would make its financial 
reporting to the Commission consistent with the treatment that it 
anticipates the Office of Personnel Management and the Office of 
Management and Budget will apply to the Postal Service's finances in 
preparing the Federal budget. Id. at 5.
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    \1\ Petition of the United States Postal Service Requesting 
Authorization to Utilize Pro Forma Accounting Data in Periodic 
Reporting (Proposal Twenty-One), October 20, 2009 (Petition).
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    The Postal Service asks the Commission to process its proposed 
change in analytic principles expeditiously. It notes that it is 
required to submit all of its FY 2009 financial results to the 
Government Financial Reporting System by November 16, 2009. It states 
that it will require significant lead time to prepare those materials. 
It expresses the hope that meeting this timeline will be made feasible 
by what it believes to be the narrowness of the issue that its proposal 
presents. Id. at 6.
    Because of the need for expedition described above, the Commission 
will require that public comments be submitted by November 2, 2009. The 
Commission anticipates that it may set an effective date for any 
proposed change to its periodic reporting rules resulting from this 
proceeding that is less than the 30-day period normally required for 
substantive rules considered under 5 U.S.C. 553.\2\
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    \2\ 5 U.S.C. 553(d)(3) allows substantive rules considered under 
5 U.S.C. 553 to take effect in less than 30 days from the date that 
the rule is approved for ``good cause found and published with the 
rule.''
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    It is ordered:
    1. The Commission establishes Docket No. RM2010-3 to consider the 
matters raised by the Petition of the United States Postal Service 
Requesting Authorization to Utilize Pro Forma Accounting Data in 
Periodic Reporting (Proposal Twenty-One).
    2. Interested persons may submit initial comments on or before 
November 2, 2009.
    3. The Commission will determine the need for reply comments after 
review of the initial comments.
    4. R. Kevin Harle is designated to serve as the Public 
Representative representing the interests of the general public in this 
proceeding.
    5. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    Authority: 39 U.S.C. 3652.


[[Page 55505]]


    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. E9-25994 Filed 10-27-09; 8:45 am]
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