Fiscal Year

2010

Summary of Performance and

Financial Information
Table of Contents

Secretary’s Message..................................................................................................................................................... 1

Department of Labor Mission, Organization, and Goal Structure.................................................................................. 3

Program Performance Overview .................................................................................................................................. 5

Strategic Goal 1:  Prepare workers for good jobs and ensure fair compensation..................................................... 5

Strategic Goal 2:  Ensure workplaces are safe and healthy ..................................................................................... 9

Strategic Goal 3:  Assure fair and high quality work‐life environments................................................................. 11

Strategic Goal 4:  Secure health benefits, and for those not working, provide income security............................. 12

Strategic Goal 5:  Produce timely and accurate data on the economic conditions of workers and their families ... 15

American Recovery and Reinvestment Act of 2009 (Recovery Act) ............................................................................. 16

Financial Performance Overview................................................................................................................................ 17

Message From the Chief Financial Officer................................................................................................................... 17

Top Management Challenges...................................................................................................................................................... 22

Questions or comments about this report should be directed to:  

U.S. Department of Labor

Center for Program Planning and Results

200 Constitution Avenue NW, Room S‐3317

Washington, DC  20210

202‐693‐7120

  
FY 2010 Summary Report of Performance and Financial Information 1

Secretary’s Message

February 15, 2011

I am pleased to submit the Department of Labor’s (DOL) Fiscal Year (FY) 2010

Summary of Performance and Financial Information, which presents highlights of

information previously published in the FY 2010 Agency Financial Report (AFR) and

the FY 2010 Annual Performance Report (APR).1

  My vision for the Department and its

many programs that touch the lives of all Americans is good jobs for everyone – which

is reflected in five strategic goals that provide a framework for planning,

management, and reporting on DOL’s program performance.  These goals, along with

fourteen outcome goals and supporting agencies’ performance goals and measures,

are described in detail in the DOL FY 2011‐2016 Strategic Plan

(http://www.dol.gov/_sec/stratplan/) published on September 30, 2010.

What we have done

We have accomplished a great deal since my arrival at the Department of Labor, and

we could not have done so much, so quickly, without the continued professionalism

and dedication of the DOL workforce.  Since my Senate confirmation in February

2009, we initiated an aggressive agenda to transform the Department’s programs, through reforms that deploy

research, evaluation and data to enhance effectiveness, streamline organizational structures and introduce 21st century

technology and transparency to the Department’s day‐to‐day operations.  We also made possible the kind of training

opportunities that will ensure our nation’s workers can better meet the challenges of the 21st century workplace.  We

restored the focus of the Department on protecting workers; and we have helped ease the burden of the recession on

working families.

Provision of Training Opportunities to Meet New Workplace Challenges

More than 39.7 million Americans have been served through the Employment and Training programs this year.  Through

funding provided by the American Recovery and Reinvestment Act of 2009 and the Workforce Investment Act, the

Department offered Green Job and Health Care training initiatives to provide workers with the skills they need for good

jobs in these sectors.  The Department invested in 189 green jobs training programs alone.  DOL’s competitive grant

programs are providing workers with job training and certification in green industry sectors, while grants jointly

administered by DOL and its Federal partners are preparing low income adults and dislocated workers for careers in the

health care sector.  

Strengthening of Worker Protections

The Department continues to focus on its critical worker protection programs, and the agencies charged with enforcing

workplace safety and health laws and minimum standards for fair compensation and working conditions in the United

States.  DOL recently implemented new, enhanced safety inspections to identify safety and health hazards in mines and

hosted the first‐ever Latino Worker Safety Summit.  DOL’s Wage and Hour Division issued regulations to strengthen

protections for U.S. and non‐immigrant farm workers and expanded public awareness and outreach to workers.   

Easing of Recessionary Burden on Working Families

Through existing State programs, the Recovery Act and subsequent enabling legislation, the Department moved

aggressively to provide and maintain critical income support to unemployed workers through DOL’s unemployment

insurance programs.  More than $158 billion was made available to the States in FY 2010 to provide regular, extended

 

1 This report, as well as the FY 2010 Agency Financial Report and the FY 2010 Summary of Performance and Financial Information,

can be found on the Internet at http://www.dol.gov/ sec/media/reports/.  This report contains information on Fiscal Year (FY) 2010

and Program Year (PY) 2009 performance.   
2     U.S. Department of Labor

and emergency benefits to workers who lost their jobs during the recession.  These efforts enabled the Department to

ensure that 31 million Americans received the unemployment benefits they earned.  The Department also fielded

approximately 260,000 inquiries about Recovery Act legislation that subsidized Consolidated Omnibus Budget

Reconciliation Act (COBRA) benefits for qualified workers who lost their jobs during this period and approved over

15,000 applications through the appeals process after dislocated workers were denied the subsidy by their employer.   

Where We Are Going

We know that the Department will continue to face challenges as we work to serve and protect America’s workers.

We have tasked DOL’s agencies to undertake strategies focused on innovation, evaluation, and improved

implementation in an effort to reform how they operate. And we have developed a strategic plan to guide our future

success.

This publication continues the Department’s transparent practices established by the FY 2010 AFR and the FY 2010 APR.  

Program performance data presented in the FY 2010 APR and this summary are complete and reliable, with the

exception of injury and illness case rate results reported by the Occupational Safety and Health Administration (p.9).  

Non‐standard employment data from the Office of Personnel Management used to calculate injury and illness rates may

lead to inaccurate assessments of results for these measures.  We continue to strive for the type of transparency that is

at the heart of what the President and I call Open Government.   

I am pleased to submit the Summary of Performance and Financial Information to Congress and the American people.  

Hilda L. Solis

Secretary of Labor
FY 2010 Summary Report of Performance and Financial Information     3

Department of Labor Mission, Organization, and Goal Structure

The Department of Labor fosters and promotes the welfare of job seekers, wage earners, and retirees of the U.S. by

improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement

and health care benefits, helping employers find workers, strengthening collective bargaining, and tracking changes in

employment, prices and other national economic measures.

The Department accomplishes this mission through component agencies and offices that administer various statutes

and programs.  These programs are carried out through a network of regional offices and smaller field, district, and area

offices, as well as through grantees and contractors.  The largest program agencies, each headed by an Assistant

Secretary, Commissioner, or Director, are the Employment and Training Administration, Occupational Safety and Health

Administration, Mine Safety and Health Administration, Veterans’ Employment and Training Service, Employee Benefits

Security Administration, and Bureau of Labor Statistics.  The Secretary of Labor is the Chair of the Board of Directors of

Pension Benefit Guaranty Corporation.2

 

2

PBGC – a Federal corporation created by the Employee Retirement Income Security Act (ERISA) of 1974 – is not included in the DOL

organization chart.  PBGC is included in this report because PBGC is included in the Department’s performance budget.

PBGC publishes an Annual Performance Report that can be found at http://www.pbgc.gov/Documents/2010_annual_report.pdf.  
4     U.S. Department of Labor

The Department’s goal structure has four levels:   

 Strategic Goals

Five broad outcome goals that support the Department’s mission and vision of good jobs for everyone.

 Outcome Goals

Fourteen outcome goals that articulate more specific objectives associated with one or more programs and DOL

agencies.    

 Performance Goals

Agency‐specific performance goals that express contributions to the Departmental objectives by its programs.  

This report includes 12 key performance goals of the 26 performance goals included in the FY 2010 APR.   

 Performance Measures

Progress in achieving the performance goals is measured by one or more quantifiable performance measures.  

This summary includes 36 key measures of the 116 measures in the FY 2010 APR.

The strategic goal framework signals the Secretary’s commitment to leading a stronger, more effective Department of

Labor.  An important innovation of the new goal structure is the Department’s commitment to measuring the effect of

its agencies’ activities on the day‐to‐day lives of working families – their wages, working hours, benefits, work‐life

balance, workplace safety and health, and equal employment opportunity, among other issues.  This focus on workers

and their families is reflected in the table below, which organizes DOL program agencies into five categories.  

Employment and Training

Employment and Training Administration (ETA)

Veterans’ Employment and Training Service (VETS)

Worker Protection

Office of Federal Contract Compliance Programs (OFCCP)

Occupational Safety and Health Administration (OSHA)

Wage and Hour Division (WHD)

Employee Benefits Security Administration (EBSA)

Mine Safety and Health Administration (MSHA)

Office of Labor‐Management Standards (OLMS)

Policy

Women’s Bureau (WB)

Office of Disability Employment Policy (ODEP)

Bureau of International Labor Affairs (ILAB)

Benefits

Office of Workers’ Compensation Programs (OWCP)

Federal‐State Unemployment Insurance (UI) System (administered by ETA)

Statistics

Bureau of Labor Statistics (BLS)

In addition to these agencies and programs, the Department’s mission is also supported by administrative, policy, legal,

public affairs, and congressional liaison offices.
FY 2010 Summary Report of Performance and Financial Information     5

Program Performance Overview

Strategic Goal 1:  Prepare workers for good jobs and ensure fair compensation

Six outcome goals support Strategic Goal 1:

1.1 Increase workers’ incomes and narrow wage and income inequality;  

1.2 Assure skills and knowledge that prepare workers to succeed in a knowledge‐based economy, including in high

growth and emerging industry sectors like “green” jobs;

1.3 Help workers who are in low‐wage jobs or out of the labor market find a path into middle‐class jobs;  

1.4 Help middle‐class families remain in the middle class;  

1.5 Secure wages and overtime; and  

1.6 Foster acceptable working conditions and respect for workers’ rights in the global economy to provide workers

with a fair share of productivity and protect vulnerable people.

The Employment and Training Administration (ETA) and the Veterans’ Employment and Training Service (VETS) oversee

programs that prepare workers for good jobs at good wages.  VETS also protects veterans’ reemployment rights.  The

Office of Federal Contract Compliance Programs (OFCCP) ensures workers are recruited, hired, trained, promoted,

terminated, and compensated in a non‐discriminatory manner by federal contractors.  OFCCP helps workers in the

federal contractor sector by strengthening affirmative action and by combating discrimination on the basis of race,

color, religion, sex, national origin, disability, or status as a covered veteran.  The Wage and Hour Division (WHD)

protects workers’ hard‐earned wages. WHD concentrates its compliance programs on ensuring fair compensation for

the most vulnerable workers – agricultural and young workers, workers in fissured industries3

, and individuals with

disabilities – while continuing to protect the rights of all those who seek WHD’s assistance.  The Bureau of International

Labor Affairs (ILAB) works to improve worker rights and livelihoods for vulnerable populations of workers

internationally.  The Women’s Bureau (WB) is the only federal office that exclusively serves and promotes the interests

of women in the workforce by conducting research, projects, outreach, and evaluations on issues of importance to

working women.  The Office of Disability Employment Policy (ODEP) maintains the Department’s focus on the significant

barriers to employment faced by individuals with disabilities and provides national leadership by developing and

influencing disability employment‐related policies and practices to increase the employment of people with disabilities.

Results for key agency performance goals and measures that support Strategic Goal 1 are provided in tabular form (see

below).  Following each table is a brief narrative that explains significant successes, challenges, and trends.   

Performance Goal ETA 1.1 – Increase the average earnings of individuals served through the Workforce Investment Act (WIA),

Registered Apprenticeship, Job Corps, and Trade Adjustment Assistance (TAA) Programs.

*Target reached (Y), improved (I), or not reached (N) FY/PY

2006

FY/PY

2007

FY/PY

2008

FY/PY

2009

FY/PY

2010

Target $11,000 $12,045 $12,862 $13,741 $12,721

Average earnings in the second and third quarters after exit (WIA‐Adult) Result $11,870 $13,575 $14,649 $13,712 —

* Y Y Y N —

Target $13,800 $14,410 $14,888 $15,542 $15,238

Result $14,265 $15,188 $16,167 $16,804 — Average earnings in the second and third quarters after exit (WIA‐Dislocated

Worker)

* Y Y Y Y —

Average earnings in the second and third quarters after exit (WIA‐Indian and Target — baseline $9,157 $9,174 $9,261

Native American Program) Result — $9,665 $9,780 $9,678 —

 

3 Fissured industries are those that have redefined employment relationships through subcontracting; third‐party management;

franchising; independent contracting; and other contractual forms which make the worker‐employer relationship tenuous and less

transparent.
6     U.S. Department of Labor

Performance Goal ETA 1.1 – Increase the average earnings of individuals served through the Workforce Investment Act (WIA),

Registered Apprenticeship, Job Corps, and Trade Adjustment Assistance (TAA) Programs.

*Target reached (Y), improved (I), or not reached (N) FY/PY

2006

FY/PY

2007

FY/PY

2008

FY/PY

2009

FY/PY

2010

* — — Y Y —

Target — — — baseline $19,324

Average earnings in the second and third quarters after exit (Apprenticeship) Result — — — $20,566 $20,335

* — — — — Y

Target — — — $9.02 $9.10

Average wage of placed graduates (Job Corps) Result — — — $9.22 —

* — — — Y —

Target — baseline $14,050 $13,386 $13,314

Average earnings in the second and third quarters after exit (TAA) Result — $13,914 $14,281 $15,087 $14,214

* — — Y Y Y

ETA reached four of the five indicators for which it had targets and established baseline for the Apprenticeship program

indicator.  Among the three employment measures utilized by ETA, the performance under average earnings has been

the least impacted by the economic downturn.   

In FY 2010, ETA continued to build expertise around career pathways, a key strategy to improve labor market outcomes

for low‐skilled, low‐wage adults.  Career Pathway models integrate remedial education with occupational skills training

and align state and local administrative policies to meet the needs of low‐income workers.  The Office of Vocational

Education and ETA co‐hosted a Career Pathways Technical Assistance Institute in Washington, D.C. in which 11 grantees

received technical assistance.  ETA also began the preliminary gathering of best practices from states already using the

career pathways model.  The Career Pathways Technical Assistance Initiative will continue to leverage the latest

research in adult learning and workforce development to help grantees and the greater workforce system.

Under a reauthorized Trade Adjustment Assistance (TAA) program, after expiration of the 2009 Amendments, DOL plans

to provide additional guidance and training for state staff who deliver services to trade affected workers to reflect

changes to the program.  In FY 2010, TAA refined and modified its petition process, which enabled the Department to

keep within the 40 day processing time allowed for each investigation.  ETA is focusing on obtaining timely and accurate

data in the TAA program.  The 2009 Amendments required extensive revision to the data collection component of state

reporting.  The transparency and accountability fostered by these amendments will result in a greater focus on meeting

performance goals by State Workforce Agency staff and provide more reliable data for program monitoring and

provision of technical assistance.

Performance Goal ETA 1.2 – Increasing skill attainment, certification and work preparedness of individuals served through a range

of programs to prepare them to compete in a knowledge‐based economy featuring emerging industries such as green jobs.

*Target reached (Y), improved (I), or not reached (N) PY 2006 PY 2007 PY 2008 PY 2009 PY 2010

Target 60% 61% 59.4% 58.0% 53.1%

Result 60% 62% 60.6% 53.7% —

Percent of participants entering employment or enrolling in post‐secondary

education, the military or advanced training/ occupational skills training in the

first quarter after exit (WIA‐Youth) * Y Y Y N —

Target 40% 45% 50.9% 47.9% 55.4%

Result 44% 57% 53.9% 52.9% — Percent of participants who earn a diploma, GED, or certificate by the end of the

third quarter after exit (WIA‐Youth)

* Y Y Y Y —

Target 87% 82% 74% 75.0% 65.3%

Result 74% 73% 66% 65.8% —

Percent of Job Corps participants entering employment or enrolling in post

secondary education and/or advanced training/ occupational skills training in

the first quarter after exit (Job Corps) * N N N N —

Percent of participants who earn a diploma, GED, or certificate by the end of the Target 65% 64% 54% 55.0% 56%
FY 2010 Summary Report of Performance and Financial Information     7

Performance Goal ETA 1.2 – Increasing skill attainment, certification and work preparedness of individuals served through a range

of programs to prepare them to compete in a knowledge‐based economy featuring emerging industries such as green jobs.

*Target reached (Y), improved (I), or not reached (N) PY 2006 PY 2007 PY 2008 PY 2009 PY 2010

third quarter after exit (Job Corps) Result 57% 53% 55% 60.6% —

* N N Y Y —

Target — — — baseline 60.7%

Result — — 41% 58% — Percent of participants who earn a diploma, GED, or certificate by the end of the

third quarter after exit (YouthBuild)

* — — — — —

Through investments in youth education and training programs under the Workforce Investment Act (WIA) Youth

formula program, Job Corps, and YouthBuild grants, the Department worked to ensure that workers get the skills and

knowledge needed to prepare them to succeed in a knowledge‐based economy, including in high‐growth and emerging

industry sectors like “green” jobs.   The Job Corps, WIA Youth, and YouthBuild programs exceeded their degree or

certificate attainment targets, while the Job Corps and WIA Youth programs fell short of their target for the placement in

employment, education, or training.  Given the unprecedented high unemployment rates and low employment rates for

youth, it is not a surprise that DOL did not achieve the placement target.  The placement results mirror both trends in

the national economy.  

The first full cycle of the 2007 YouthBuild grantees was completed in PY 2009 and the YouthBuild program was able to

achieve its goal to establish a baseline for the degree or certificate measure.  To continue the upward trend for this

measure, the Department provided a “coach” (a youth development content expert) to each of its over 200 YouthBuild

grantees to provide grantees with phone and on‐site coaching services.  

  

Job Corps achieved one of its two performance goals for PY 2009.  Placement of Job Corps graduates and former

enrollees in employment, the military or post‐secondary education continued to mirror the national employment

picture; the placement result was nine points below the 75 percent target.  Certificate attainment outcomes, however,

reversed a three‐year decline and literacy/numeracy gains rose six points.  It appears that the strategic focus on

academics had a positive impact.

Performance Goal VETS 1.3 – Improve veterans’ access to training and employment opportunities.

*Target reached (Y), improved (I), or not reached (N) PY 2006 PY 2007 PY 2008 PY 2009 PY 2010

Target 55% 56.0% 58.5% 51.4% 41.7%

Percent of disabled veteran participants employed in the first quarter after exit Result 55% 58.4% 55.8% 43.9% —

* Y Y N N —

Target 79% 79.0% 81.0% 76.9% 70.8%

Result 78% 81.1% 79.7% 75.8% — Percent of disabled veteran participants employed in the first quarter after exit

still employed in the second and third quarters after exit

* N Y N N —

Target $15,500 $14,743 $16,969

Result $16,873 $16,449 — Average earnings of disabled veteran participants in the second and third

quarters after exit

* Y Y —

VETS assesses the performance of the One‐Stop Career Center system on behalf of disabled veterans by applying three

common measures: the entered employment rate, the employment retention rate and the average earnings.  Under

Goal 1.1, VETS assesses the outcomes for all veterans by applying the same measures.  For PY 2009, all three of these

indicators for disabled veterans were sharply impacted by the severe recession in progress at the time that the

outcomes were measured.  The entered employment rate for disabled veterans declined by 21 percent from the prior

year, which is identical to the decline experienced by all veterans.  The declines in the retention rate and average

earnings for disabled veterans were much less severe, at five percent and two and one‐half percent respectively
8     U.S. Department of Labor

compared with the prior year.  The rates of decline in these two measures for disabled veterans were slightly lower than

the corresponding rates of decline for all veterans.   

For disabled veterans, VETS has encouraged front‐line service delivery staff to respond in two principal ways to assist

disabled veterans to counter the severe constraints imposed by current economic conditions.  First, VETS has

encouraged a refocusing of the responsibilities of Disabled Veterans Outreach Program (DVOP) specialists and Local

Veterans Employment Representative (LVER) staff.  DVOP specialists have been encouraged to place greater emphasis

on the delivery of intensive services that include counseling and career planning, comprehensive assessments, and

development of individual employment plans, with a priority for disabled veterans.  This is intended to help disabled

veteran jobseekers to be better prepared to compete for the scarce job openings in the current labor market.  LVER staff

members have been encouraged to place greater emphasis on employer outreach, which is intended to expand the

number of job openings available with employers who are favorably inclined toward veterans and disabled veterans.  

Second, some disabled veterans are referred to One‐Stop Career Centers as part of their participation in the Vocational

Rehabilitation and Employment (VR&E) Program, which is operated by the Department of Veterans Affairs (VA).  For

those disabled veterans, DVOP specialists coordinate closely with their VA counterparts to identify other opportunities,

such as eligibility for VA sponsored work experience, to enhance their employability.   

Performance Goal ETA 1.4 – Ensure that those workers adversely affected by foreign and domestic economic conditions can

remain in the middle class.

*Target reached (Y), improved (I), or not reached (N) FY/PY

2006

FY/PY

2007

FY/PY

2008

FY/PY

2009

FY/PY

2010

Target 90% 89% 84.7% 84.0% 78.0%

Result 88% 87% 86.0% 79.7% — Percent of participants employed in the first quarter after exit still employed in

the second and third quarters after exit (WIA‐Dislocated Worker)

* N N Y N —

Target — — — baseline 76.8%

Result — — — 78.5% — Percent of participants employed in the first quarter after exit still employed in

the second and third quarters after exit (National Emergency Grants)

* — — — — —

Target 85% 85% 91% 87.5% 83.3%

Result 90% 88% 90% 88.0% 86.2%

Percent of participants employed in the first quarter after exit still employed in

the second and third quarters after exit (TAA)

* — Y I Y Y

Over 150,000 exiters were still employed nine months after completing program services and gaining employment

through the WIA Dislocated Worker program, National Emergency Grants (NEGs), and TAA program.  TAA achieved its

retention target, while the WIA Dislocated Worker and National Emergency Grant programs fell slightly short.  

Throughout the year, high unemployment and mass layoff events contributed to significant demand for employment

and training services.  

During the past year, the Department developed and disseminated career and workforce information to the workforce

development system, partner agencies and the public through national electronic tools.  ETA developed and

disseminated O*NET occupational competency profiles, coordinated workforce information grants to states, and

provided technical assistance on the analysis and strategic use of labor market information.  ETA also launched the

worker reemployment website that provides employment, training, and information financial assistance for unemployed

workers, including recently laid‐off workers.  The site includes resources for getting immediate help with unemployment

insurance, healthcare, and other financial needs; job searching and resume tips; changing careers and understanding

transferable skills; and upgrading skills through education and training.  

In PY 2009, mySkillsmyFuture.org was released to bolster the workforce information to aid job matching.  The website

helps laid‐off workers and other career changers find new occupations to explore.  Users can identify occupations that

require skills and knowledge similar to their current or previous job, learn more about these suggested matches, locate

local training programs, and/or apply for jobs.
Strategic Goal 2: Ensure workplaces are safe and healthy

One outcome goal supports Strategic Goal 2:   

Outcome Goal 2.1:  Secure safe and healthy workplaces, particularly in high‐risk industries  

The DOL agencies working toward safe and healthy workplaces are MSHA, the OSHA, and WHD.  The workplace safety

and health missions of MSHA and OSHA fits well into this goal. WHD’s role is to enforce key safety and health provisions

in certain statutes.  For example, the Fair Labor Standards Act ensures the safe employment of young workers,

encourages their educational endeavors, and provides a path to future employment.  The Migrant and Seasonal

Agricultural Worker Protection Act and the Immigration and Nationality Act’s (INA) H‐2A Programs, and the

Occupational Safety and Health (OSH) Act’s field sanitation provisions, protect:  agricultural workers by providing

standards regulating the safe transportation of migrant and seasonal workers; farmworkers by ensuring safe and healthy

housing; and field workers by establishing standards for drinking water, toilets, and hand‐washing.  Enforcement of the

worker protection provisions of the H‐2A program assures working conditions that both protect the wages and the

safety and health of vulnerable workers, and ensure that the local labor force is not displaced by lower paid foreign or

migrant labor.

Results for key agency performance goals and measures that support Strategic Goal 2 are provided in tabular form (see

below).  Following each table is a brief narrative that explains significant successes, challenges, and trends.

Performance Goal OSHA 2.1 – Improve workplace safety and health through the enforcement of occupational safety and health

regulations and standards.

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target — — — baseline 562

Result — — — 571 372

Number of fatalities associated with the four leading causes of workplace death

– falls, electrocutions, caught in or between, and struck by – in Construction

* — — — — Y

Target — — — baseline 731

Result — — — 743 644

Number of fatalities associated with the four leading causes of workplace death

– falls, electrocutions, caught in or between, and struck by – in General Industry

* — — — — Y

Target 3.82 3.70 3.66 3.49 3.10

Federal Agency total case rate for injuries and illnesses Result 3.49 3.32 3.37 3.22 3.08

* Y Y Y Y Y

Target 1.76 1.71 1.66 1.61 1.42

Federal Agency lost time case rate for injuries and illnesses Result 1.71 1.61 1.57 1.48 1.44

* Y Y Y Y I

In FY 2010, OSHA reached all performance indicator targets except the target for “Federal Agency lost time case rate for

injuries and illnesses.”  A July 19, 2010 memorandum from President Obama launched the Presidential POWER initiative:

Protecting Our Workers and Ensuring Reemployment, replacing the Safety, Health and Return to Employment (SHARE)

initiative.  SHARE concluded in FY 2009 and had been successful in reducing both new injury and lost production day

rates in the Federal Government.  POWER was formally rolled out in September and October 2010 through a

memorandum from the Secretary of Labor and at a formal meeting jointly led by Office of Workers’ Compensation

Programs (OWCP) and OSHA for Federal agency Washington headquarters staff.    

POWER expands on SHARE by setting more aggressive targets over four years (FY 2011 – FY 2014) for (non‐Postal)

Executive Branch agencies to continue to reduce injury and illness rates and increase return‐to‐work outcomes for

injured federal employees.   

FY 2010 Summary Report of Performance and Financial Information     9
10     U.S. Department of Labor

In an effort to encourage hazard abatement among all employers, OSHA will: target high‐risk workplaces; strengthen

enforcement initiatives; focus on a broader range of hazards; increase publicity and direct outreach; strengthen support

for Whistleblower protection activities; and increase enforcement effectiveness evaluation activities.  The agency,

through the regulatory agenda, will seek to make fundamental changes in the way employers and workers cooperate to

secure safe workplaces, by requiring employers to plan, prevent and protect workers from exposure to occupational

hazards, through the Injury and Illness Prevention Program standard.   

Worker involvement is a focus for OSHA, and the agency’s initiatives, including outreach and education.  The new OSHA

standards also will reflect this focus.  As part of supporting activities for Outcome Goal 3.3, OSHA is enhancing workers'

voice in the workplace by expanding the agency’s outreach efforts to reach vulnerable workers in high‐risk industries

with information about their rights and the hazards they face.

Performance Goal MSHA 2.1 – Secure safe and healthy workplaces particularly in high risk industries.

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target — — — baseline 0.0171

Five‐year rolling average of fatal injuries per 200,000 hours worked Result — — — 0.0180 0.0187

* — — — — N

Target 5.00% 4.80% 3.59% 4.45% 3.94%

Percent of noise exposures in coal mines above the citation level Result 4.40% 3.66% 4.54% 4.02% 3.05%

* Y Y N Y Y

9.50% 9.00% 11.50% 9.55% 7.63%

11.30% 12.20% 9.74% 7.78% 6.45%

Percent of inspector Designated Occupation samples exceeding the applicable

respirable coal mine dust standard

N N Y Y Y

MSHA did not meet its target to reduce the mining industry’s five‐year fatality rate by five percent in FY 2010.  The

catastrophic disaster on April 5, 2010 at the Upper Big Branch mine in Montcoal, West Virginia caused the death of 29

miners and accounted for 45 percent of all mining fatalities in FY 2010.  MSHA is confident that by continuing its

integrated approach to prevention of mining accidents, including aggressive enforcement, meaningful outreach and

special emphasis programs, the agency will realize a significant reduction in mining fatalities over the long term.   

MSHA has developed and is implementing a progressive, escalating enforcement strategy that identifies mines with

compliance or other safety and health issues for more aggressive oversight, and uses the agency’s most aggressive

enforcement tools against egregious violators.  The agency’s impact inspection initiative selects mines with specific

conditions or compliance issues that merit increased agency attention and enforcement for intensified inspections.  

MSHA’s new potential patterns of violations process focuses on chronic violators that have failed to improve compliance

in response to increased inspections and other enforcement actions.  MSHA is also attempting to reduce fatalities by

focusing the industry on common causes of fatal mine accidents and disasters through initiatives such as “Rules to Live

By” and “Rules to Live By II.”  This program includes industry outreach and education to raise awareness as well as

enhanced enforcement.  

MSHA met its Noise Reduction Performance Goal of reducing miners’ noise overexposures.  The protections instituted

and the reductions achieved improved the health and safety of the nation’s miners, increased their quality of life, and

reduced future medical costs.

MSHA met its Respirable Coal Mine Dust Performance Goal by using strategies which consisted of a multi‐faceted

approach that includes, for example, requiring mine operators to implement dust control parameters proven to be

effective in controlling respirable dust.   
Strategic Goal 3:  Assure fair and high quality work‐life environments

Three outcome goals support Strategic Goal 3:  

3.1 Break down barriers to fair and diverse workplaces so that every worker’s contribution is respected;  

3.2 Provide workplace flexibility for family and personal care‐giving; and  

3.3 Ensure worker voice in the workplace.  

Eight DOL agencies have programs, performance goals, and measures that contribute to achievement of this goal.  

Through the work of the OFCCP, DOL ensures that over 200,000 contractors and sub‐contractors working under

contracts with the federal government provide equal employment opportunities.  ODEP develops policy and policy

strategies to reduce barriers to employment for individuals with disabilities.  The Women’s Bureau (WB) formulates

standards and policies to promote the welfare of wage‐earning women and, with WHD, promotes workplace flexibility

for family and personal care‐giving.  The Office of Labor‐Management Standards (OLMS), ILAB, OSHA, MSHA, and WHD

conduct outreach so that workers are better informed of their rights, are better able to freely exercise those rights

without fear of adverse consequences, and are better positioned to meaningfully participate in workplace decision‐

making.  Through these advances, workers increase their voice in the workplace.

Results for key agency performance goals and measures that support Strategic Goal 3 are provided in tabular form (see

below).  Following each table is a brief narrative that explains significant successes, challenges, and trends.

Performance Goal OLMS 3.3 – Ensure union financial integrity, democracy, and transparency.

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target — — — baseline 18.5%

Percent of disclosure reports filed electronically Result — — — 17.4% 20.6%

* — — — — Y

Target — — baseline 88 84

Average number of days to resolve union officer election complaints Result — — 92 70 81

* — — — Y Y

Target — — baseline 12.0% 12.5%

Percent of targeted audits that result in a criminal case Result — — 11.5% 12.1% 14.6%

* — — — Y Y

In 2010, OLMS met or exceeded all performance goals while setting baselines for four new goals.  The new goals

endeavor to increase public disclosure reporting of employer‐consultant agreements to persuade employees concerning

their collective bargaining rights, decrease the number of delinquent filers of labor organization financial reports,

decrease the number of chronically delinquent filers of labor organization financial reports, and improve customer

satisfaction with the OLMS web site.   

The increased complexity of union financial transactions continues to be a major challenge.  By identifying anomalies in

union financial reports and using other targeting measures, OLMS strives to more effectively identify unions where

criminal activity may be present.  OLMS exceeded the target for its performance goal in both 2009 and 2010.

This year, OLMS implemented a new, web‐based system for the electronic filing of LM‐2 reports that ameliorates

barriers to electronic filing that have been identified by OLMS stakeholders.  Continued outreach enabled OLMS to reach

its e‐filing goal in 2010.  In both 2009 and 2010, OLMS exceeded its goals for resolving election complaints and continues

to examine new methods for reducing its elapsed days further.  A new team‐based approach for handling election cases

has proven successful this year and will continue to be implemented throughout OLMS during 2011.

FY 2010 Summary Report of Performance and Financial Information     11
Strategic Goal 4:  Secure health benefits, and for those not working, provide income security

Three outcome goals support Strategic Goal 4:  

4.1 Facilitate return to work for workers experiencing workplace injuries or illnesses who are able to work;  

4.2 Ensure income support when work is impossible or unavailable; and  

4.3 Improve health benefits and retirement security for all workers.  

Seven DOL agencies, as well as a government corporation whose board is chaired by the Secretary of Labor, have

programs that contribute to Strategic Goal 4.  OWCP administers four compensation programs that provide a critically

important safety net for injured or ill workers.  Program benefits include monetary compensation for injury or illness,

wage replacement, medical treatment, and vocational rehabilitation and other reemployment services.  In support of

the OWCP program for federal workers, the OSHA plays an important role in promoting safe and healthy workplaces

through the POWER initiative.  ETA administers the Unemployment Insurance (UI) Program which provides the

unemployed with some income while they seek work, while the Employee Benefits Security Administration (EBSA)

administers the appeals process for denials of the Consolidated Omnibus Budget Reconciliation Act (COBRA) benefits

subsidy added by the American Recovery and Reinvestment Act that helps dislocated workers to pay for health

insurance coverage.  EBSA also, through its enforcement of Title I of the Employee Retirement Income Security Act of

1974 (ERISA), protects the security of retirement and health plan benefits and assets for all workers who have employer‐

sponsored plans.  The Pension Benefit Guaranty Corporation (PBGC), the aforementioned government corporation, was

created to encourage the continuation and maintenance of private‐sector defined‐benefit pension plans, provide timely

and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum.

Results for key agency performance goals and measures that support Strategic Goal 4 are provided in tabular form (see

below).  Following each table is a brief narrative that explains significant successes, challenges, and trends.  

Performance Goal OWCP 4.1 – Assist in the recovery and re‐employment of injured workers.

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target 60.0 49.0 48.5 42.0 35.4

Government‐wide Lost Production Day rate in non‐Postal government agencies Result 52.2 46.3 41.3 35.8 34.6

* Y Y Y Y Y

Target — — — — 86.9%

Result — — — — 89.7%

Percent of injured Federal workers coming under Federal Employees’

Compensation Act (FECA) Disability Management that are reemployed by (non‐

Postal) federal agencies * — — — — Y

Return to work is most successful through early identification of work injury or illness, prompt development of case

information, and efficient provision of assistance services that will support recovery and return to work.  Achievement of

this is measured by using two key indicators:  disability duration, measured as lost production days, and the percentage

of workers successfully returned to employment following injury or illness.  The agency provides assistance to Federal

employing agencies to elevate their participation in reemploying workers; make greater use of technology to improve

communications and data and information exchanges with employers and claimants; and, through regular monitoring of

longer‐term disability cases, identifies cases whose medical conditions improve and individuals who could benefit from

vocational rehabilitation and job placement services.   

Under POWER, individual Executive Branch agencies are directed to reduce Lost Production Day (LPD) rates (per 100

employees) by 1 percent per year through FY 2014.  The Government‐wide LPD rate was reduced in FY 2010 to 34.6 days

from the FY 2009 result of 35.8 days.  Success is due to OWCP’s early intervention strategies in assisting injured workers

to return to work, and employing agencies’ continuing dedication to reemploying their workers, emphasized under

POWER’s antecedents – Federal Worker 2000 and SHARE.   

12     U.S. Department of Labor
POWER’s four‐year target is to increase the overall share of cases that are returned to work by the 14 largest Executive

Branch agencies to 92 percent within two years of their start of the cases’ management by OWCP.  Results for those

agencies increased the share from 85.8 percent in FY 2009 to 87.8 percent in FY 2010.  These results also reflect the

continuing success of OWCP early intervention strategies in assisting injured workers to return to work, and employing

agencies’ continuing dedication to reemploying their workers.  

Performance Goal ETA 4.2 – Facilitate timely and accurate payments to unemployed workers.

*Target reached (Y), improved (I), or not reached (N) FY/PY

2006

FY/PY

2007

FY/PY

2008

FY/PY

2009

FY/PY

2010

Target 89.9% 90.0% 88.4% 85.7% 85.9%

Percent of all intrastate first payments made within 21 days Result 87.6% 88.2% 86.8% 82.9% 82.2%

* N N N N N

Target 59.5% 60.0% 56.0% 51.8% 52.8%

Result 62.1% 54.8% 56.2% 52.9% 49.5%

Percent of the amount of estimated overpayments that states detect  

established for recovery

* Y N Y Y N

Target 82.5% 82.8% 84.9% 88.7% 90.0%

Result 83.7% 85.6% 84.9% 84.1% 86.4%

Percent of determinations about UI tax liability of new employers made within

90 days of the end of the first quarter they became liable

* Y Y Y N I

The FY 2010 performance targets were not achieved.  

Making timely payments to unemployed workers is critical to fulfilling the UI system’s key statutory objective of making

full payment of unemployment compensation "when due."  The FY 2010 target of 85.9 percent was not attained; 82.2

percent of first payments were made within 14/21 days, down from the FY 2009 level of 82.9 percent.  First payment

timeliness declined in 31 states.  The 32 states performing below the 87 percent minimum acceptable level of

performance in the UI performance management system (UI Performs) have submitted corrective action plans that

outline the actions they will take to improve their performance as part of their FY 2011 State Quality Service Plan.

Ensuring that benefits are paid only to those who meet eligibility requirements and that erroneous payments are

detected and recovered is critical to any benefit payment program.  In FY 2010, states detected and established for

recovery 49.5 percent of the estimated overpayments, which was below the FY 2010 target of 52.8 percent.  

Recoverable overpayments estimated by the Benefit Accuracy Measurement (BAM) survey increased from $2.8 billion in

FY 2009 to $4.0 billion in FY 2010 as benefits paid increased by 50 percent, from $50 billion to $76 billion.  Although

states increased overpayment detections by 31 percent, from $1.5 billion to almost $2.0 billion, they could not keep

pace with the increase in overpayments.  Thirty‐two states’ detection of overpayments ratios fell from FY 2009 to FY

2010 as a result.  States failing to achieve the 50 percent UI Performs Acceptable Level of Performance standard must

develop a Corrective Action Plan as part of the State Quality Service Plan.   

Promptly enrolling new employers in the UI program is key to fulfilling major program objectives of supporting the

timely payment of taxes – which fund UI benefits – and making timely and accurate eligibility determinations based on

employer‐reported wages.  In FY 2010, 86.4 percent of new status determinations for tax liability were made within the

specified 90‐day period.  Although this is considerably short of the 90 percent target, it represents a 2.3 percentage

point improvement from the year before.  Statistical studies have indicated that new status timeliness is broadly

countercyclical with a significant upward trend since 1997.  As economic activity falls, status timeliness tends to rise

because the status determinations workload falls.  However, the broad historical relationship was broken temporarily by

the recent recession, as it appears that many states reassigned staff from tax to UI claims functions in response to the

sharply increased claims workloads.  This caused status determinations timeliness to decline between FY 2008 and FY

2009 despite a fall in status determinations workloads.  Staff diversion seems to have moderated between FY 2009 and

FY 2010 Summary Report of Performance and Financial Information     13
14     U.S. Department of Labor

FY 2010 as status performance improved. Reflecting the 2007‐2009 recession’s impact, the FY 2012 target has been set

at 86.9 percent.   

Performance Goal EBSA 4.3 – Improve health benefits and retirement security for all workers.

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target — 48% 50% 52% 67%

Ratio of criminal cases accepted for prosecution to cases referred Result — 67% 74% 79% 79%

* — Y Y Y Y

Target — 61% 64% 67% 67%

Ratio of closed civil cases with corrected fiduciary violations to civil closed cases Result — 69% 70% 72% 72%

* — Y Y Y Y

During FY 2010, EBSA’s program was significantly impacted by the ongoing implementation of the COBRA premium

assistance program and the increased call volume from the public that it created for the agency’s participant assistance

program as well as the passage of the Affordable Care Act (ACA).  Despite this unprecedented workload, EBSA achieved

its performance targets.   

   

Despite experiencing unprecedented call volume from the public in FY 2010, the Office of Participant Assistance

responded to 99 percent of all written inquiries within 30 days of receipt and over 99 percent of telephone inquiries by

the close of the next business day.  Total inquiry volume for the fiscal year exceeded 376,000 including the adjudication

of over 15,000 COBRA subsidy denial appeals.  More than 99 percent of the appeals were processed within the 15

business day statutory requirement.  Benefit recoveries achieved by the participant assistance program contributed

more than $164 million to EBSA’s overall monetary results of over $1 billion.4

   

In 2011, EBSA, for the first time, will begin conducting investigations that will lead to measuring overall compliance with

ERISA and the impact of EBSA investigations on the compliance rate.  These broad‐based composite measures will

provide information related to compliance in the community beyond those investigations that EBSA conducted.  In

addition, EBSA will resume its measurement of the level of customer satisfaction with the Participant Assistance

Program.  The evaluation results will allow EBSA to make direct process improvements as necessary.

 

4 Monetary results are a product of EBSA’s investigative, compliance and participant assistance activities.
Strategic Goal 5:  Produce timely and accurate data on the economic conditions of workers

and their families

One outcome goal supports Strategic Goal 5:

Outcome Goal 5.1:  Provide sound and impartial information on labor market activity, working conditions, and price

changes in the economy for decision making, including support for the formulation of economic and social policy

affecting virtually all Americans.

  

The Bureau of Labor Statistics (BLS) of the U.S. Department of Labor is the principal Federal agency responsible for

measuring labor market activity, working conditions, and price changes in the economy.  Its mission is to collect, analyze,

and disseminate essential economic information to support public and private decision‐making.  As an independent

statistical agency, BLS serves its diverse user communities by providing products and services that are objective, timely,

accurate, and relevant.  

Results for the agency performance goal and five of fourteen measures that support Strategic Goal 5 are provided in

tabular form (see below).  Following the table is a brief narrative that explains significant successes, challenges, and

trends.  

Performance Goal BLS 5.1 – Improve the timeliness, accuracy, and relevance of information on labor market activity, working

conditions, and price changes in the economy  

*Target reached (Y), improved (I), or not reached (N) FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Target — — — — baseline

Result — — — — 100% Percent of timeliness targets achieved for the Compensation and Working

Conditions Principal Federal Economic Indicator (PFEI). * — — — — —

Target — — — — baseline

Result — — — — 100% Percent of accuracy targets achieved for the Compensation and Working

Conditions PFEI. * — — — — —

— — — — baseline

— — — — 0% Percent of relevance targets achieved for the Compensation and Working

Conditions PFEI. — — — — —

Target 2,900,00

0

3,700,00

0

4,300,00

0

5,100,00

0

6,100,00

0

Result 3,658,81

4

4,223,52

3

5,032,11

1

6,090,58

7

6,972,57

7

Average number of Internet site user sessions each month (Dissemination).

* Y Y Y Y Y

Target — — — — baseline

Result — — — — 75

Customer satisfaction with BLS products and services as measured by the

American Customer Satisfaction Index (Mission Achievement).

Status — — — — —

BLS revised its performance framework in 2010.  For most performance measures, 2010 is the baseline year.  In 2010,

BLS reached 100 percent of the underlying timeliness, accuracy and relevance targets for its Labor Force Statistics, Prices

and Living Conditions, and Productivity and Technology Principal Federal Economic Indicators.  The Office of

Compensation and Working Conditions reached 100 percent of the underlying timeliness and accuracy targets, but

missed its relevance target for the number of indexes published (quarterly) for the Employment Cost Index (ECI)

program.  BLS incorporates seasonal revisions into its estimates once per year, in the 3rd quarter.  BLS dropped several

series that did not exhibit seasonality.  Beginning in 2011, BLS will report only on non‐seasonally adjusted indexes in this

performance measure.  

In addition, BLS measured dissemination through the average number of Internet site user sessions each month, and

exceeded its target of 6.1 million in FY 2010 by reaching nearly 7.0 million user sessions.  Finally, in FY 2010, BLS

expanded its use of the American Customer Satisfaction Index (ACSI) to measure customer satisfaction with its full Web

site.  BLS achieved a score of 75.

FY 2010 Summary Report of Performance and Financial Information     15
American Recovery and Reinvestment Act of 2009 (Recovery Act)

Since our nation’s greatest resource is its workers, the Recovery Act targeted investments to key areas that create and

preserve good jobs.  DOL has two key roles in this recovery effort: providing worker training for these jobs; and easing

the burden of the recession on workers and employers by providing extended and expanded unemployment benefits

and assisting and educating them regarding expanded access to continued health benefits.  Listed below are descriptions

of a few of the largest (by funding level) among DOL’s 24 Recovery Act programs.  More details are posted on the Web

at www.recovery.gov and www.dol.gov/recovery.

Unemployment Insurance – Extension of the Emergency Unemployment Compensation, 2008 (EUC08) and Federal

Additional Compensation Program (FAC).  The Recovery Act extended the Emergency UI program, commonly known as

EUC08, which provides weekly UI benefits to individuals who have exhausted their regular State‐financed UI benefits,

through December 31, 2009.  Subsequent legislation further extended these benefits to November 30, 2010.  The

Recovery Act also created a new federally‐funded program (FAC) which temporarily increases UI benefits by $25 a week.

Unemployment Insurance – Modernization ($7 Billion Incentive Fund).  The Federal‐State UI Program provides

unemployment benefits to eligible workers who are unemployed because of a lack of suitable work, and meet other

eligibility requirements.  States operate UI programs under their own laws, which must conform to Federal law.  The

Modernization Program helps States make UI more accessible to workers by temporarily defraying the costs of certain

eligibility liberalizations.

Workforce Investment Act Dislocated Worker Program.  An additional $1.25 billion was made available to the program

for expanding services, as authorized by WIA, using the same State and local allocation formula.  States were expected

to improve assessments and career counseling to place workers in high growth sectors with long term opportunities.

Workforce Investment Act Youth.  The Recovery Act made an additional $1.2 billion available for WIA Youth activities,

using the same formula as the regular appropriation and extended the youth eligibility age from 21 to 24.  Grantees

focused on creating summer employment opportunities for youth, including opportunities in the health care sector and

in green jobs within the construction, energy efficiency, renewable energy, and other related industries.

16     U.S. Department of Labor
Financial Performance Overview

Message from the Chief Financial Officer

The U.S. Department of Labor implemented a new core financial management system this

year to increase productivity and reduce costs when processing financial transactions and

preparing financial reports.  The event marked the first implementation of a secure,

shared service provider, financial management solution by a cabinet‐level agency.

New technology, such as this, enables employees to perform their jobs efficiently and

effectively, eliminating the need for cumbersome paper processes.  By moving to a shared

service provider system, the Department expects to drive major operational efficiencies,

saving time and financial investments in hardware, software, and maintenance.  This

system is clearly aligned with the Obama administration’s push for modernizing

government through technology.

Another goal of the Obama administration and this Department is to provide billions of dollars for programs to

foster American workers’ efforts to find jobs, develop new skills in the workforce, and support an economic

recovery during FY 2010.  Through the American Recovery and Reinvestment Act of 2009, unemployment benefits

eased the burdens of unemployment on the American workforce and stimulated a recessed economy.  The

Department’s financial operations monitored the appropriate use of these funds.

As a consequence of converting to the New Core Financial Management System, the auditors were unable to

complete a full examination of the Department’s FY 2010 financial statements.  Difficulties with the timely

migration of data from the legacy system delayed the new system’s audit readiness, imposing limitations on the

auditors’ scope of work which caused the Inspector General to withhold an opinion on the Department’s FY 2010

financial statements.  

A clean audit opinion provides independent confirmation that the Department’s financial statements are presented

fairly and in conformity with generally accepted accounting principles.  Accurate and timely financial information

improves the DOL’s accountability to Americans and allows the department to make informed operational, budget,

and policy decisions.  DOL is committed to regaining the unqualified (clean) audit opinion it held for the previous 13

years.

The Office of the Chief Financial Officer leads the Department’s financial management and fiscal integrity effort

and, as stewards of the taxpayers’ dollars, we take our responsibility seriously.  The Department will continue to

strive for financial management excellence during 2011.

James L. Taylor

Chief Financial Officer

February 15, 2011

FY 2010 Summary Report of Performance and Financial Information     17
18     U.S. Department of Labor

FINANCIAL REPORTING ENTITY

DOL reports its financial activities annually in Consolidated Financial Statements, prepared in accordance with U.S.

generally accepted accounting principles and the financial reporting requirements of the Office of Management and

Budget (OMB).  For fiscal years 2010 and 2009, five principal financial statements, the Consolidated Balance Sheet,

Consolidated Statement of Net Cost, Consolidated Statement of Changes in Net Position, Combined Statement of

Budgetary Resources, and Statement of Social Insurance, were presented with accompanying notes and other

required information.  These Consolidated Financial Statements were included in DOL’s FY 2010 Agency Financial

Report, produced by the Department instead of the Performance and Accountability Report issued in prior years.   

The DOL financial reporting entity is organized by major program agencies, which conduct operations in five major

program areas, through execution of DOL’s annual budget.  The Department’s FY 2010 net operating costs by major

program agency and by major program are shown in the table below:

NET COST OF OPERATIONS BY MAJOR PROGRAM AGENCY AND MAJOR PROGRAM

DOL’S NET COST BY MAJOR PROGRAM

MAJOR PROGRAMS Operating

Agencies

2010 Net Cost

(000s)

Income maintenance ETA, ESA,

OSHA, EBSA,

DM

$170,380,346

Employment and training ETA, ESA,

OJC, VETS,

DM

7,293,251

Labor, employment and

pension standards

ESA, EBSA,

VETS, DM

771,122

Worker safety and health OSHA, MSHA,

DM

1,091,193

Statistics BLS, DM 681,284

Cost not assigned to

programs

DM 93,328

TOTAL NET COST OF OPERATIONS $180,310,524

DOL’S NET COST BY MAJOR PROGRAM AGENCY

MAJOR PROGRAM OPERATING AGENCIES1 2010 Net Cost

(000s)

Employment and Training Administration

(ETA)

$168,464,055

Employment Standards Administration

(ESA)2

7,923,611

Office of Job Corps (OJC) 1,553,358

Veterans’ Employment and Training Service

(VETS)

256,196

Occupational Safety and Health

Administration (OSHA)

692,952

Mine Safety and Health Administration

(MSHA)

400,428

Employee Benefits Security Administration

(EBSA)

197,488

Bureau of Labor Statistics (BLS) 676,275

Departmental Management (DM) 146,161

TOTAL NET COST OF OPERATIONS $180,310,524

(1) The Pension Benefit Guaranty Corporation (PBGC), a Federal

corporation under the chairmanship of the Secretary of Labor, is designated by OMB as a separate reporting entity for financial

statement purposes and is not included in this financial overview.

(2) At the beginning of FY 2010, DOL dissolved the Employment Standards Administration (ESA) and established its four component

offices/divisions as stand‐alone agencies reporting directly to the Office of the Secretary.  This reorganization was reflected in DOL’s FY

2011 budget.  In FY 2010, all applicable appropriations occurred under the previous ESA structure. Consequently, references to ESA are

retained throughout this financial overview.
FY 2010 Summary Report of Performance and Financial Information     19

ASSETS AND LIABILITIES ‐ 2010

TOTAL ASSETS were $43.5 billion at the

end of FY 2010, a decrease of 1.5% from

2009.  

Funds with U.S. Treasury (30.9% of total

assets) represent balances available to

DOL ($12.5 billion) as well as restricted

balances not available ($0.9 billion).

Investments in Treasury securities

(44.3%) consist of non‐marketable,

special issue Treasury securities held

primarily in the UTF.

Advances and receivables, net (22.1%)

consist primarily of amounts due from

other Federal agencies for benefits ($5.1

billion) paid by DOL and from States for UI

taxes, advances and benefit

overpayments ($4.1 billion).

Property, plant and equipment, net

(2.7%) primarily consists of depreciated

PP&E held by 124 Job Corps centers

located in the territorial U.S. (75%),

improvements to GSA leased facilities

(14%) and internal software (10%).

TOTAL LIABILITIES were $62.2 billion at

the end of FY 2010, a $32.6 billion (110%)

increase over 2009.

Debt rose by $26.0 billion (182%), caused

by increases in Treasury advances to the

UTF to pay unemployment benefits.

Workers’ benefits liabilities increased by

$7.0 billion (52%) due to increases in

accrued UI benefits for the current period

and Federal employee, Black Lung and

Energy employee compensation benefits

for the current period and future periods.

FINANCIAL POSITION

Highlights of DOL’s financial position for the fiscal years ended September 30, 2010 and 2009 follow:

SUMMARY OF CONSOLIDATED BALANCE SHEET

As of September 30, 2010 and 2009

(Dollars in Thousands)

ASSETS

2010 2009

Funds with U.S. Treasury $ 13,426,485 $  14,406,751

Investments in Treasury securities    19,281,093    20,111,346

Advances and receivables, net       9,636,361       8,512,436

Property, plant and equipment, net       1,174,713       1,154,240

TOTAL ASSETS $43,518,652 $44,184,773

      

         

LIABILITIES AND NET POSITION

LIABILITIES 2010 2009

Accounts payable and other liabilities $ 1,197,593 $ 1,724,157

Debt   40,400,725   14,351,967

Workers' benefits, current period     6,426,980     4,627,250

Workers' benefits, future periods     14,190,027     8,952,822

     Total liabilities   62,215,325   29,656,196

NET POSITION

Unexpended appropriations     12,435,481     10,825,237

Cumulative results of operations   (31,132,154)   3,703,340

     Total net position   (18,696,673)   14,528,577

TOTAL LIABILITIES AND NET POSITION $43,518,652 $44,184,773

          

   

NET POSITION

Net Position represents the difference between DOL’s assets and liablities,

measured by it’s two components, Cumulative Results of Operations and

Unexpended Appropriations.  

Cumulative Results of Operations accounts for DOL’s net results of operations

since inception, plus any prior period adjustments not affecting net results.  Net results of operations represent the

difference between financing sources, as reported on the Consolidated Statement of Changes in Net Position, and the

net cost of operations, as reported on the Consolidated Statement of Net Cost.

Unexpended Appropriations measures the cumulative difference between appropriations received by DOL from

Treasury and appropriations used, transferred or unavailable.  Appropriations are considered used by DOL when goods

and services have been received or benefits provided.
Highlights of the changes in DOL’s net position for the fiscal years ended September 30, 2010 and 2009 follow:

SUMMARY OF CONSOLIDATED STATEMENT  

OF CHANGES IN NET POSITION

For The Years Ending September 30, 2010 and 2009

(Dollars in Thousands)

CUMULATIVE RESULTS OF OPERATIONS 2010 2009

Beginning balance, as adjusted $3,703,340   $59,114,323  

Financing sources

Appropriations used   98,631,528   42,689,532  

Employer taxes and reimbursements 45,785,373 38,718,195  

Interest, assessments and other 1,058,129 2,299,781  

Total financing sources 145,475,030 83,707,508  

Net cost of operations (180,310,524) (139,118,491)

Net change     (34,835,494) (55,410,983)  

Cumulative results of operations, ending ($31,132,154) $3,703,340  

UNEXPENDED APPROPRIATIONS

Beginning balance, as adjusted $10,825,237 $8,169,166  

Financing sources

Appropriations received 130,316,852 43,475,352  

Appropriations used (98,631,528) (42,689,532)

Appropriations transferred or unavailable (30,075,080) 1,870,251

Total financing sources 1,610,244 2,656,071

Unexpended appropriations, ending $12,435,481 $10,825,237  

NET POSITION $(18,696,673) $14,528,577  

CHANGES IN NET POSITION – 2010

DOL’s Net Position decreased by $33.2

billion in 2010, a 229% decrease from

2009, primarily caused by a $34.8 billion

decrease in Cumulative Results of

Operations, offset by a $1.6 billion

increase in Unexpended Appropriations.

Cumulative Results of Operations

accounts for the residual surplus or deficit

in DOLS’s earmarked funds and all other

funds. Earmarked funds are financed by

specific revenues used for specific

purposes. The UTF and BLDTF are DOL’s

largest earmarked funds. The decrease in

Cumulative Results of Operations was

caused by the excess of 2010 net

operating costs ($180.3 billion) over 2010

Financing Sources ($145.5 billion).

Financing Sources in 2010 included

Employer taxes and reimbursements of

$45.9 billion to fund UI and Black Lung

disability benefits (31% of total financing

sources); Appropriations used of $98.6

billion (68%), authorized by DOL’s budget;

and Interest and assessments of $1.1

billion (1% of total financing sources),

earned on DOL’s trust fund investments

and fineslevied by DOL's enforcement

agencies.

NET COST OF OPERATIONS

DOL reports its net cost of operations by major program on the Consolidated Statement of Net Cost.  Net cost is

calculated by deducting the earned revenues attributable to a program from that program’s gross cost to arrive at its

net operating cost.  In FY 2010, DOL reported gross costs of $184.7 billion, earned revenues of $4.4 billion, and a net cost

of operations of $180.3 billion.

DOL’s net operating cost in FY 2010 increased by $41.2 billion (30%) over the prior year.  This increase was primarily

attributable to the $40.8 billion (32%) rise in income maintenance program costs in FY 2010, caused by a 31% increase in

unemployment benefits.  Income maintenance costs comprised over 93% of DOL’s total net operating costs in both fiscal

years 2010 and 2009.

20     U.S. Department of Labor
FY 2010 Summary Report of Performance and Financial Information     21

Highlights of DOL’s net cost of operations for the fiscal years ended September 30, 2010 and 2009 follow:  

SUMMARY OF CONSOLIDATED STATEMENT OF NET COST BY MAJOR

PROGRAM COMPONENT  

For The Years Ending September 30, 2010 and 2009   (Dollars in Thousands)

NET COST BY MAJOR PROGRAM COMPONENT   2010 2009

INCOME MAINTENANCE

Unemployment Insurance (ETA)

Unemployment benefits, net $156,588,068 $119,896,933

Grants to States to administer UI program 4,710,025   4,475,166

Other        1,644,216   510,099

Total unemployment insurance 162,942,309     124,882,198

Workers' Benefits (ESA)

Net Federal  workers' compensation benefits   6,753,682   1,368,062

Black Lung disability benefits    220,977 240,625

Interest on repayable advances, BLDTF       223,923   231,292

Other    199,081 2,840,820

Total workers’ benefits    7,397,663      4,680,799

Other Departmental programs      40,374   8,302

Total income maintenance 170,380,346 129,571,299

EMPLOYMENT AND TRAINING

ETA employment and training programs 5,521,746    5,482,390

Job Corps employment and training program 1,553,358 1,497,092

Veterans employment and training programs 224,568      213,545

Other Departmental employment and training    (6,421)     1,180

Total employment and training   7,293,251 7,194,207

LABOR EMPLOYMENT AND PENSION STANDARDS

Employment Standards Administration   553,367    379,552

Employee Benefits Security Administration 172,190   175,012

Veterans Employment and Training Service   31,628    20,492

Other Departmental programs   33,937   132,263

Total labor, employment and pension standards    771,122   707,319

WORKER SAFETY AND HEALTH

Occupational Safety and Health Administration    668,761   541,548

Mine Safety and Health Administration     400,428      388,096

Other Departmental programs   2,004      11,414

Total worker safety and health    1,091,193     941,058

STATISTICS

Bureau of Labor Statistics    676,275     588,263

Other Departmental programs   5,009    32,815

Total statistics     681,284     621,078

Costs not assigned to programs     93,328      83,530

NET COSTS OF OPERATIONS $180,310,524 $139,118,491

Income Maintenance

Unemployment Insurance (UI) managed by

ETA through the Federal / State UI system,

provides grants to States, and regular and

emergency UI benefits to covered workers,

financed by employer taxes, Treasury

borrowings and appropriations.   Total UI

system costs were $162.9 billion in FY 2010,

a 30% increase over 2009, caused by a $37

billion (31%) increase in UI benefits. ESA’s

Workers’ Benefit programs provide benefits

to injured Federal employees and their

survivors for lost wages, and benefits to

eligible Energy workers, coal miners and

their survivors disabled by occupational

diseases including black lung. Net workers’

compensation and disability benefits in FY

2010 rose by 394%, due to a $7.0 billion

increase (52%) in the liability for benefits.

Employment and Training

ETA, Job Corps and VETS provide

employment and training to economically

disadvantaged workers and veterans

through adult, youth, dislocated worker and

older worker training programs using

Federal, State and local service providers,

and a network of contractors and grantees.

The net cost of these programs in FY 2010

was $7.3 billion, a 9% increase over 2009.

Labor, Employment and Pension

Standards

ESA programs enforce compliance with

minimum wage, overtime, child labor, and

labor union standards. EBSA programs

protect private employee retirement,

health, and other benefit plans from abuse;

and VETS programs assist service members

with issues affecting civilian employment.

The total net cost of these programs in FY

2010 was $0.77 billion, up 9% over 2009.

Worker Safety and Health

OSHA and MSHA operate programs to

protect the safety and health of America’s

workforce through enforcement, workplace

inspection and compliance assistance. The

net cost of these programs in FY 2010 was

$1.1 billion, up 16% over 2009.

Statistics

BLS programs disseminate timely, relevant

economic information to the public. The net

cost of these programs in FY 2010 was $0.68

billion, up 10% over 2009.
Top Management Challenges

For 2010, the Office of Inspector General (OIG) considers the following as the most serious management and

performance challenges facing the

Department:

 Achieving the Goals and Protecting the Investment Provided by the American Recovery and Reinvestment Act

 Protecting the Safety and Health of Workers

 Improving Performance Accountability of Workforce Investment Act Grants

 Ensuring the Effectiveness of the Job Corps Program

 Safeguarding Unemployment Insurance

 Improving the Management of Workers’ Compensation Programs

 Maintaining the Integrity of Foreign Labor Certification Programs

 Securing Information Technology Systems and Protecting Related Information Assets

 Ensuring the Security of Employee Benefit Plan Assets

 Ensuring DOL’s New Core Financial Management System Produces Reliable, Accurate, and Timely Financial

Information

These top management challenges are intended to identify and help resolve serious weaknesses in areas that involve

substantial resources and provide critical services to the public.  The complete description of these challenges, the

Department’s progress, and what remains to be done – as identified by the OIG – and Management’s response are

available at:  http://www.dol.gov/_sec/media/reports/annual2010/2010annualreport.pdf.  

The table below summarizes ten challenges confronting Departmental management in 2010.  

Top

Management

Challenge

Issue Departmental Progress What Remains to be Done

Achieving the

Goals and

Protecting the

Investment of

the ARRA

 Ensuring program effectiveness

in meeting ARRA requirements

 Focusing on unspent funds

 Obtaining continued funding to

monitor ARRA grants

 Audits indicated ARRA grants

managed in accordance with

relevant criteria and that

comprehensive monitoring

procedures were in place

 Continue efforts ensuring grant  

funds are spent properly and

for intended purposes

 Assess grant performance and

best use of unused funds

Protecting the

Safety and

Health of

Workers

 Targeting of most serious

violators and at risk worker

populations  

 Ability of penalty reductions to

reduce workplace hazards

 Recruitment and training of

mine inspectors   

 Backlog of mine safety plan

reviews and cases before

Federal Mine Safety and Health

Review Commission (FMSHRC)

 Rise in Black Lung Disease

 Began Severe Violator

Enforcement Program (SVEP)

 Introduced process to evaluate

worker protection agencies and

enforcement strategies

 Hired mine inspectors within

authorizations and to improved

their training

 Worked to reduce backlog of

contested cases

 Finalize regulations for coal

dust exposure levels

 Monitor the SVEP to ensure

results are achieved

 Evaluate penalty reductions on

workplace safety and health

 Implement new information

system as planned

 Recruit and train enforcement

personal  

 Reduce the backlog of mine

contested cases

 Evaluate efforts to reduce the

rise in Black Lung Disease

22     U.S. Department of Labor
Top

Management

Challenge

Issue Departmental Progress What Remains to be Done

Improving

Performance

Accountability

of WIA Grants

 Ensuring that WIA grants

accomplish program objectives

 Ensuring that State Workforce

Agencies (SWAs) evaluate WIA

programs and share results  

 Developing monitoring strategy

using reduced funds  

 Improving the quality and

reporting of performance data

 Commissioned evaluations and

issued guidance on reporting of

information on WIA activities

 Requested funding for

additional grant monitoring

positions and developed plans

to absorb workload into

ongoing operations

 Develop process to analyze

evaluation results and improve

service delivery nationally

 Share best practices through

on‐line technical assistance

 Ensure that data evaluations

are performed as part of

regional grant monitoring

Ensuring the

Effectiveness of

the Job Corps

Program

 Meeting placement and

recruitment goals

 Ensuring safety and quality of

life at Job Corps centers

 Ensuring integrity of center’s

financial and performance data

 Developed new recruitment

and training materials

 Issued instructions and training

on safety issues

 Added improving data Integrity

to assessment standards

 Evaluate female recruitment

efforts

 Improve strategies to address

drop in graduate placements

 Provide proactive oversight of

center contractors

Safeguarding

Unemployment

Insurance

 Reducing UI improper

payments estimated at $15.2

billion for the current year due

to large increases in claims  

 Ensuring that SWAs have

adequate IT contingency plans

 Implemented State Information

Data Exchange System (SIDES)

 Increased State use of National

Directory of New Hires (NDNH)  

 Provided funding to 31 states to

develop IT contingency plans

 Fully implement SIDES

 Ensure that CA adopts NDNH

 Promote use of  databases to

detect improper payments

 Work with States to develop IT

disaster contingency plans

Improving the

Management of

Workers’

Compensation

Programs

 Timeliness of Energy Workers’

Compensation claims decisions  

 Minimizing improper payments

and fraud in FECA program

 Implemented guidance on claim

development and developed

processes to inform workers of

program benefits

 Increased oversight of workers'

continuing eligibility for

benefits through modifications

to the Integrated Federal

Employees' Compensation

System (iFECS).

 Continue efforts to reduce

Energy case processing time

 Seek legislative reforms to

reduce unnecessary FECA

claims

Maintaining the

Integrity of

Foreign Labor

Certification

Programs

 Fraudulent FLC applications

 Improving the H‐1B application

process

 Office of Foreign Labor

Certification (OFLC) continues

to work closely with the OIG to

reduce fraud in the FLC

application process

 Continue work with the OIG to

reduce FLC program fraud

 Make adjustments to enhance

integrity of H‐1B application

processing system

Securing

Information

Technology

Systems and

Protecting

Information

Assets

 Control deficiencies over access

to key IT systems increase the

potential for the unauthorized

access and exchange of

financial and personal

information

 Although disagreeing with the

gravity of the OIG’s system

access issues, continued to

participate on Federal Councils

to develop policies addressing

many of the OIG’s concerns

 Establish an independent Chief

Information Officer (CIO) to

provide exclusive oversight of

all issues affecting the

Department’s IT capabilities

FY 2010 Summary Report of Performance and Financial Information     23
24     U.S. Department of Labor

Top

Management

Challenge

Issue Departmental

Progress What Remains to be Done

Ensuring the

Security of

Employee

Benefit Plans

 Increasing

authority to

oversee plan

audits and

assess the

effectiveness of

enforcement

programs

covering private

retirement

plans, health

plans and other

welfare benefit

plans covering  

$6.1 trillion in

assets

 Developing new

regulations,

enforcement

programs and

research

strategies to

implement

provisions of

the Health Care

Reform Act

 Improved accuracy

of recorded

financial

transactions and

timeliness of daily

processing

 Revised training

efforts and

improved User

Guides

 Reduced late

payment penalties

near pre‐

implementation

levels

 Work with OMB, Treasury and the  OIG to

improve data quality and financial reporting

 Improve the operational efficiencies of the

new system, including the further reduction

of late payment penalties

Ensuring

NCFMS

Produces

Accurate and

Timely

Financial

Information

 Larger than

expected user

base  

 Late processing

of transactions

 Inability to

produce

auditable

financial

statements

 Substantial

increase in late

payment

penalties

 Improved

accuracy of

recorded financial

transactions and

timeliness of daily

processing

 Revised training

efforts and

improved User

Guides

 Reduced late

payment

penalties near

pre‐

implementation

levels

 Work with OMB, Treasury and the  OIG to

improve data quality and financial

reporting

 Improve the operational efficiencies of

the new system, including the further

reduction of late payment penalties

 Continue to enhance training materials

and continue the training of NCFMS users
FY 2010 Summary Report of Performance and Financial Information     25

U.S. Department of Labor

www.dol.gov