That report also includes information on semipostals issued  by foreign postal administrations. In August 2003, Service officials said that they plan to reexamine their  BCRS regulations and, as soon as practicable, provide Congress with  current BCRS data and analyses. Full BCRS Program Costs Unknown

Although the full cost of the BCRS program is not known, the Service  reported that the bulk of the program’s costs, from inception through May  16, 2003, were about $9.5 million. Service’s Approach to Cost Recovery Has Evolved

In response to a recommendation in our April 2000 BCRS report, the  Service issued BCRS cost-recovery regulations in July 2000, which it  subsequently amended in 2001. BCRS Cost-Recovery Regulations May Not Allow the Service to Identify and Recoup All Costs Attributable to the BCRS

The Stamp Out Breast Cancer Act specifically recognizes that printing,  sales, and distribution costs attributable to the BCRS are among the types  of reasonable costs the Service should recover from the BCRS’ surcharge  revenue. However, we are  concerned that the regulations the Service issued to implement this  requirement can be interpreted as not requiring the Service to provide  baseline comparisons for certain BCRS costs, e.g., printing, sales, and  distribution, although the Stamp Out Breast Cancer Act specifically states  that reasonable costs in these areas attributable to the BCRS should be  recouped from the BCRS’ surcharge revenue. The Service Has Not Yet Met Its Commitment to Congress to Provide It with BCRS Cost Data and Analyses

In our April 2000 BCRS report, we recommended that the Service make  available the data and analysis showing which BCRS costs have been  recovered through the First-Class postage rate to provide assurance that  postal ratepayers are not involuntarily contributing funds to breast cancer  research. Effectiveness of the BCRS as a Fund-Raiser

The BCRS has continued to be an effective means of raising funds for  breast cancer research. The BCRS Remains Voluntary and Convenient and Has Raised Millions of Dollars for Research

The BCRS has remained voluntary and convenient, as provided for by the  act, and has raised over $30 million for breast cancer research since it was  issued in July 1998. Appropriateness of Using Semipostals as a Means of Fund-Raising

Most of the key stakeholders we spoke with and the public believe it is  appropriate for the Postal Service to sell the BCRS, as well as other  semipostals, to raise funds for worthwhile causes. Without these baselines, the Service lacks assurance that it is  identifying and recouping excess costs from the BCRS’ surcharge revenue. Therefore, establishing annual reporting requirements for NIH and DOD,  similar to the statutory reporting requirements established for any agency  that would receive funds from semipostals issued under the Semipostal  Authorization Act, would prove valuable by providing information on the  amount of funds received, how the funds were used, and any  accomplishments resulting from the use of those funds, should Congress  decide to further extend the BCRS sales period. Bodai, lobbied Congress to pass legislation creating the BCRS.
Why GAO Did This Study

In America, breast cancer is reported as the second leading cause of cancer deaths among women. Given this statistic, the importance of finding a cure cannot be overemphasized. To supplement the billions of federal dollars being spent on breast cancer research, Congress passed legislation creating the Breast Cancer Research Semipostal (BCRS) to increase public awareness of the disease and allow the public to participate directly in raising funds for such research. Since the BCRS was the first semipostal issued by the Postal Service, Congress mandated, and GAO issued, a report in April 2000 on the BCRS' cost, effectiveness, and appropriateness as a fund-raiser. After the report, Congress extended the BCRS sales period through 2003. As mandated, this report updates GAO's prior work as Congress considers another extension to the BCRS sales period.

What GAO Found

Although the U.S. Postal Service (the Service) has not tracked or estimated all costs associated with the BCRS program, it reported that the bulk of BCRS costs, from inception through May 16, 2003, were about $9.5 million. In April 2000, GAO recommended that the Service issue BCRS cost-recovery regulations and make available cost data and analyses to provide postal ratepayers assurance they were not involuntarily subsidizing BCRS costs. The Service issued regulations in July 2000, but it has not yet submitted the recommended data and analyses to Congress. Service officials attributed the lack of providing Congress with this information to administrative oversight and other factors, but said they would provide Congress with this information as soon as practicable. In 2001, the Service amended its BCRS regulations stating that cost-recovery determinations would be made using baseline costs for comparable commemorative stamps. GAO, however, is concerned that the regulations can be interpreted as not requiring the Service to provide for baseline comparisons for certain BCRS costs, e.g., printing, sales, and distribution, although the Stamp Out Breast Cancer Act states that reasonable costs attributable to the BCRS in these areas should be recouped. The Service has not established baseline costs for these categories. Without these baselines, the Service lacks assurance that it is identifying and recouping excess costs from BCRS surcharge revenue. The BCRS continues to be an effective means of raising funds for breast cancer research. Sales have fluctuated, but the BCRS has raised over $30 million for research since it was issued in July 1998. NIH and DOD--recipients of research funds generated by the BCRS--are not subject to the same statutory reporting requirements as agencies that are to receive funds generated by semipostals issued under the Semipostal Authorization Act. Such agencies are required to submit an annual report to Congress on the amount of funds received, how the funds were used, and accomplishments. The public and key stakeholders GAO spoke with believe it is appropriate for the Service to issue semipostals.