U.S. Postal Service Exec Testifies Before Congress
"Our most recent calculations reveal that, as of Sept. 30, 2013, we had available liquidity of $3.8 billion, representing only 14 days of average daily operating expenses," Williamson said. "A healthy private sector firm of comparable size would have more than five times the available liquidity.
"Even with the (temporary) exigent price increase implemented on Jan. 26, 2014, we project that our liquidity will remain dangerously low for the foreseeable future. In the event of insufficient cash, the Postal Service would be required to implement contingency plans to ensure that all mail deliveries continue. These measures could require the Postal Service to prioritize payments to employees and suppliers ahead of some payments to the federal government."
Amanda L. Cole is the editor-in-chief of NonProfit PRO. She was formerly editor-in-chief of special projects for NonProfit PRO's sister publication, Promo Marketing. Contact her at acole@napco.com.