coordinate the rapid and effective response to possible anthrax contamination when detected by the Biohazard Detection System. The results of the tests are being analyzed prior to the anticipated deployment of Biohazard Detection Systems to major mail processing facilities nationwide.

     The Postal Service is also testing a ventilation and filtration system. By creating a closed environment around mail as it moves through a processing facility, this technology limits the potential threat of employee exposure to aerosolized biohazards such as anthrax. Used in conjunction with the Biohazard Detection System, ventilation and filtration equipment would add an invaluable layer of protection for postal employees.

     Through a year of concentrated focus on service and costs, the Postal Service assured that the nation it serves continued to receive affordable, quality mail service.

2. Board of Governors

     As the governing body of the U.S. Postal Service, the 11-member Board of Governors has responsibilities comparable to a board of directors of a publicly held corporation. The Board is composed of nine governors appointed by the President of the United States with the advice and consent of the Senate. The other two members of the Board are the postmaster general and the deputy postmaster general. The governors appoint the postmaster general, who serves at their pleasure without a specific term of office. The governors, together with the postmaster general, appoint the deputy postmaster general (39 U.S.C. 202).

     The Board meets on a regular basis and, at the annual meeting in January, the chairman is elected by the governors from among all members of the Board. The vice chairman is elected by the full Board.

     The Board directs the exercise of the power of the Postal Service. It establishes policies, basic objectives, and long-range goals for the Postal Service in accordance with Title 39 of the U.S. Code. Except for those powers specifically vested in the governors, the Board may delegate the authority

vested in it by statute to the postmaster general under such terms, conditions, and limitations, including the power of redelegation, as it deems desirable (39 U.S.C. 402). The governors are authorized to establish reasonable and equitable classes of mail and reasonable and equitable rates of postage and fees for postal service (39 U.S.C. 3621). A specific power reserved by statute for the Governors alone is to approve, allow under protest, reject or, by unanimous written decision in certain circumstances, modify recommended decisions of the Postal Rate Commission on postal rate and mail classification changes (39 U.S.C. 3625).

     Government Fiscal Year 2003 started on October 1, 2002, and ended on September 30, 2003. The Board held regular, monthly meetings in each month of 2003 except for the month of July. Each regular monthly meeting consisted of two sessions that were usually held on the first Monday and Tuesday of the month. The first session was closed to the public in accord with the provisions of the Government in the Sunshine Act and the second session was open to the public. Altogether there were 21 days of regular meetings in 2003. Seven of the regular monthly meetings were held in Washington, D.C. The regular meeting in October 2002 was held in Memphis, Tennessee; February 2003 in Las Vegas, Nevada; March 31 and April 1, 2003, in Chicago, Illinois; and August 2003 in Portland, Maine. In addition, the Board held four special meetings. The special meeting on July 21, 2003 was held in McLean, Virginia. All of the other special meetings were teleconferences that originated from Washington, DC.

     The Board had three standing committees: Audit and Finance, Capital Projects, and Strategic Planning. The committees held regularly scheduled meetings during the year to consider matters within their areas of responsibility and refer items to the full Board for consideration.

     In October 2002, the Board approved funding for biohazard detection systems, the Calendar Year 2003 meeting schedule and the Office of the Governors 2003 budget.