264 
proposal in accordance with paragraph 
(3)(A). At the option of the Authority, the 
previous sentence shall be applied as if 
the reference in such sentence to ‘‘7-day 
period’’ were a reference to ‘‘14-day pe-
riod’’ if, during the 7-day period referred 
to in the preceding sentence, the Author-
ity so notifies the Postmaster General. 
(c) EFFECT OF APPROVED FINANCIAL PLAN 
AND BUDGET ON CONTRACTS AND LEASES.— 
(1) MANDATORY
PRIOR
APPROVAL
FOR 
CERTAIN CONTRACTS AND LEASES.— 
(A) IN GENERAL.—In the case of a 
contract or lease described in sub-
paragraph (B) which is proposed to 
be entered into, renewed, modified, 
or extended by the Postal Service 
during a control period, the Post-
master General (or the appropriate 
officer or agent of the Postal Service) 
shall submit the proposed contract or 
lease to the Authority. The Authority 
shall review each contract or lease 
submitted under this subparagraph, 
and the Postmaster General (or the 
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265 
appropriate officer or agent of the 
Postal Service) may not enter into the 
contract or lease unless the Authority 
determines that the proposed con-
tract or lease is consistent with the fi-
nancial plan and budget for the fiscal 
year. 
(B) CONTRACTS
AND
LEASES
DE-
SCRIBED.—A contract or lease de-
scribed in this subparagraph is— 
(i) a labor contract entered 
into 
through 
collective 
bar-
gaining; or 
(ii) such other type of con-
tract or lease as the Authority 
may specify for purposes of this 
subparagraph. 
(2) AUTHORITY TO REVIEW OTHER CON-
TRACTS AFTER EXECUTION.— 
(A) IN
GENERAL.—In addition to 
the prior approval of certain con-
tracts and leases, the Postal Service 
shall submit to the Authority— 
(i) any Level-Two Post Career 
Executive Service employee con-
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266 
tract that is in effect during a 
control period; and 
(ii) any collective bargaining 
agreement entered into by the 
Postal Service that is in effect 
during a control period. 
Any such contract or agreement shall 
be submitted to the Authority upon 
the commencement of a control pe-
riod and at such other times as the 
Authority may require. 
(B) REVIEW
BY
AUTHORITY.—The 
Authority shall review each contract 
submitted under subparagraph (A) to 
determine if the contract is con-
sistent with the financial plan and 
budget for the fiscal year. If the Au-
thority determines that the contract 
is not consistent with the financial 
plan and budget, the Authority shall 
take such actions as are within the 
Authority’s powers to revise the con-
tract. 
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267 
SEC. 225. EFFECT OF FINDING NONCOMPLIANCE WITH FI-
NANCIAL PLAN AND BUDGET. 
(a) SUBMISSION
OF
REPORTS.—Not later 
than 30 days after the expiration of each 
quarter of each fiscal year beginning in a con-
trol period, the Postmaster General shall sub-
mit reports to the Authority describing the ac-
tual revenues obtained and expenditures 
made by the Postal Service during the quar-
ter with its cash flows during the quarter, and 
comparing such actual revenues, expendi-
tures, and cash flows with the most recent 
projections for these items. 
(b) ADDITIONAL INFORMATION.—If the Au-
thority determines, based on reports sub-
mitted by the Postmaster General under sub-
section (a), independent audits, or such other 
information as the Authority may obtain, that 
the revenues or expenditures of the Postal 
Service during a control period are not con-
sistent with the financial plan and budget for 
the year, the Authority shall require the Post-
master General to provide such additional in-
formation as the Authority determines to be 
necessary to explain the inconsistency. 
(c) CERTIFICATION OF VARIANCE.— 
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268 
(1) IN
GENERAL.—After requiring the 
Postmaster General to provide additional 
information under subsection (b), the Au-
thority shall certify to the Postmaster 
General, the President, the Secretary of 
the Treasury, and Congress that the Post-
al Service is at variance with the finan-
cial plan and budget unless— 
(A) the additional information 
provides an explanation for the in-
consistency which the Authority finds 
reasonable and appropriate; or 
(B)(i) the Postal Service adopts or 
implements remedial action (includ-
ing revising the financial plan and 
budget pursuant to section 223(g)) to 
correct the inconsistency which the 
Authority finds reasonable and ap-
propriate, taking into account the 
terms of the financial plan and budg-
et; and 
(ii) the Postmaster General agrees 
to submit the reports described in 
subsection (a) on a monthly basis for 
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269 
such period as the Authority may re-
quire. 
(2) SPECIAL RULE FOR INCONSISTENCIES 
ATTRIBUTABLE TO ACTS OF CONGRESS.— 
(A) DETERMINATION
BY
AUTHOR-
ITY.—If the Authority determines that 
the revenues or expenditures of the 
Postal Service during a control pe-
riod are not consistent with the fi-
nancial plan and budget for the year 
as approved by the Authority under 
section 223 as a result of the terms 
and conditions of any law enacted by 
Congress which affects the Postal 
Service, the Authority shall so notify 
the Postmaster General. 
(B) CERTIFICATION.—In the case of 
an inconsistency described in sub-
paragraph (A), the Authority shall 
certify to the Postmaster General, the 
President, the Secretary of the Treas-
ury, and Congress that the Postal 
Service is at variance with the finan-
cial plan and budget unless the Postal 
Service adopts or implements reme-
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