54

Total

188, 770
1,496, 876

1,537,550 1,929, 395

94, 270
1,623, 685

These items are included in the "Change in selected resources" entries on the program and financing schedule in
their entirety. Other items are only partially applicable to these entries.

The 1971 amount includes $20, 187,000 for a retirement bonus to be funded in 1972 out of operations.
Workmen's compensation amounts reported under current liabilities for 1970 and 1971 represent unfunded liabilities
funded in future years through appropriations (for cost of injuries occurring prior to June 30, 1971) and through the
operations process (for post June 30, 1971 injuries). The amounts reported under the Reserves section of the
balance sheet reflect the change in policy in financing Workmen's Compensation to show full accrued cost for injuries
in the year in which they occur.

At the beginning of Fiscal Year 1972 the Postal Service carried a liability of $372, 796, 000 from the former Post
Office Department for earned and unused annual leave of postal employees. This liability will be funded over a
period of 12 years through the appropriation process. The 1973 appropriation request for this item amounts to
$31,000,000 (see note 6). The amount of $412, 783, 000 reported in the reserves for 1972 includes a funded amount
of $39, 987,000. The $444, 347,000 for 1973 includes a funded amount of $102, 551,000.

The $243, 749, 000 decrease in equity in 1972 is a net of three items. Item 1 is the establishment of a current
liability to reflect estimated postage in the hands of the public. Item 2 is the $56, 322,000 receipts from the
Appropriation "Payments to the U. S. Postal Fund" to cover POD liability to the Workmen's Compensation Fund.
Item 3 is a prior year adjustment of $71,000 for underaccrual of workmen's compensation cost in 1970.
The $32, 539,000 represents receipts from the Appropriation "Payment to U. S. Postal Fund" to cover POD
liability to the Workmen's Compensation Fund in the amount of $1,539,000; and $31, 000, 000 to apply against
the liability of the U. S. Government to postal employees for earned and unused annual leave balances as of
June 30, 1971.

:

The end-of-year balances in both Accounts Receivable and Accounts Payable reflect normal billing cycles.

At the beginning of Fiscal Year 1972 the Postal Service carried a liability of $372, 796,000 from the former
Post Office Department for earned and unused annual leave of postal employees. This liability will be funded
over a period of 12 years through the appropriation process. The 1973 appropriation request for this item
amounts to $31,000,000.

The transfers and prior year adjustments requested in total in the Analysis of Changes in Government Equity are

Nonfunded expenses transferred from other agencies:
Depreciation on GSA buildings.....

Building maintenance and custodial service provided by GSA.

Unemployment benefits paid by Department of Labor.

Previous unfunded liability of the Post Office Department

Adjustment for estimated pre-paid postage in the hands of the public..

Total transfers and prior year adjustments.

For payment to the Postal Service Fund for public service costs and for revenue forgone on free and reduced-rate
mail, pursuant to 39 U. S. C. 2401 (b) and (c), and for meeting the liabilities of the former Post Office Department to
the Employees' Compensation Fund and to postal employees for earned and unused annual leave balances as of
June 30, 1971 pursuant to 39 U. S. C. 2004, $1,424,039, 000, of which $920, 000, 000 is for public service costs
and $471, 500, 000 is for revenue forgone on free and reduced-rate mail.