Assesses the financial condition of the U.S. Postal Serv. (USPS) and its long-term outlook as well as the financial, operational, and structural issues that may affect USPS's ability to carry out its mission. The report will help improve the understanding of USPS's current financial situation; the causes of the anticipated financial deficits; and the implications in the short and long term on USPS's financial condition, operations, and customers. The report: assesses USPS's FY 2001 financial results and its long-term outlook; and discusses the legal require. and practical constraints that need to be addressed as well as selected options to be considered for USPS to achieve a successful transformation to overcome its financial, operational, and human capital challenges. Also includes a 15-page GAO report, "U.S. Postal Service: More Consistent Implementaiton of Policies and Procedures for Cash Security Needed."