We examined them in our recent audit, Flats Cost Coverage, and found that most of the initiatives did not have specific, measurable objectives that would directly reduce these costs. Last December, the Postal Service described its top initiatives to reduce flats costs. The PRC has also developed a list of what it considers to be some of the causes of inefficient flat operations. This requirement was expanded to include additional information in FY 2019.

Starting in fiscal year (FY) 2010, the Postal Regulatory Commission (PRC) required the Postal Service to provide information on the operational changes it was making to lower flats costs when it filed its Annual Compliance Report every December. Some flats products have been underwater - meaning their attributable costs exceed revenue - for many years. Full-size envelopes, magazines, and catalogs are all considered flats. In the postal context, “flats” are large mailpieces between the size of a typical letter and a thicker parcel. As a group, they don’t cover their costs.Last year, they collectively lost the Postal Service about $630 million.įirst, what are flats? They are not European apartments or a type of shoe.

Usps size of flat rate boxes