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Audit of the U.S. Chemical Safety 

and Hazard Investigation Board’s

Fiscal Years 2014 and 2013

Financial Statements

Report No. 15-1-0022 November 17, 2014

U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL

U.S. Chemical Safety Board
Are you aware of fraud, waste or abuse in a

CSB program? 

Inspector General Hotline 

1200 Pennsylvania Avenue, NW (2431T)

Washington, DC 20460

(888) 546-8740

(202) 566-2599 (fax)

OIG_Hotline@epa.gov

More information at www.epa.gov/oig/hotline.html.

EPA Office of Inspector General

1200 Pennsylvania Avenue, NW (2410T)

Washington, DC 20460

(202) 566-2391

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 15-1-0022

November 17, 2014

Why We Did This Review

We performed this audit in 

accordance with the 

Accountability of Tax Dollars 

Act of 2002, which requires the 

U.S. Chemical Safety and 

Hazard Investigation Board 

(CSB) to prepare, and the 

Office of Inspector General

(OIG) to audit, the Board’s 

financial statements each year. 

The U.S. Environmental 

Protection Agency’s OIG, which 

also serves as the Inspector 

General for CSB, contracted 

with Brown and Company 

CPAs, PLLC, to perform the 

audit of the CSB’s fiscal years 

2014 and 2013 financial 

statements. 

This report addresses the 

following CSB goal:

 Preserve the public trust

by maintaining and

improving organizational

excellence.

Send all inquiries to our public

affairs office at (202) 566-2391

or visit www.epa.gov/oig.

The full report is at:

www.epa.gov/oig/reports/2014/ 

20141117-15-1-0022.pdf

Audit of the U.S. Chemical Safety and Hazard 

Investigation Board’s Fiscal Years 2014 and 2013

Financial Statements

 What Brown and Company Found

Brown and Company rendered an unmodified

opinion on the CSB’s financial statements for fiscal 

years 2014 and 2013, meaning that the statements

were fairly presented and free of material 

misstatements.

In planning and performing its audit, Brown and Company considered the CSB’s 

internal control over financial reporting. Brown and Company noted no matters 

involving the internal control and the CSB operation that it considered to be a 

material weakness. A material weakness is a deficiency, or combination of 

deficiencies, in internal control, such that there is a reasonable possibility that a 

material misstatement of the entity’s financial statements will not be prevented, 

or detected and corrected, on a timely basis. A significant deficiency is a 

deficiency in internal control, or a combination of deficiencies in internal control,

that is less severe than a material weakness, yet important enough to merit 

attention by those charged with governance.

As part of obtaining reasonable assurance about whether the CSB’s financial 

statements are free of material misstatement, Brown and Company performed 

tests of the CSB’s compliance with certain provisions of laws and regulations, 

contracts, and grant agreements, noncompliance with which could have a direct 

and material effect on the determination of financial statement amounts. Brown 

and Company’s fiscal year 2014 audit disclosed no instances of noncompliance

or other matters that are required to be reported under Government Auditing 

Standards or Office of Management and Budget Bulletin No. 14-02.

Brown and Company is responsible for the attached auditor’s report and the 

conclusions expressed in the report. We do not express any opinion or 

conclusions on the CSB’s financial statements, internal control or compliance 

with laws and regulations.

CSB’s Comments

The CSB agreed with Brown and Company’s report.

U.S. Environmental Protection Agency

Office of Inspector General

At a Glance

The CSB received an 

unmodified opinion 

for its fiscal years

2014 and 2013

financial statements.
November 17, 2014 

The Honorable Rafael Moure-Eraso, Ph.D. 

Chairperson and Chief Executive Officer 

U.S. Chemical Safety and Hazard Investigation Board 

2175 K Street, NW, Suite 400 

Washington, DC 20037-1809

Subject: Report No. 15-1-0022, Audit of the U.S. Chemical Safety and Hazard Investigation Board’s

Fiscal Years 2014 and 2013 Financial Statements 

Dear Dr. Moure-Eraso: 

This letter transmits the audit report on the U.S. Chemical Safety and Hazard Investigation Board’s 

(CSB’s) fiscal years 2014 and 2013 financial statements. The audit is required by Public Law 107-289, 

the Accountability of Tax Dollars Act of 2002. 

The independent public accounting firm of Brown and Company CPAs, PLLC, performed the audit 

of the CSB financial statements as of and for the fiscal years ended September 30, 2014 and 2013. 

The audit was required to be done in accordance with Government Auditing Standards, issued by the 

Comptroller General of the United States; Office of Management and Budget Bulletin No. 14-02, 

Audit Requirements for Federal Financial Statements; and the Financial Audit Manual of the 

Government Accountability Office/President’s Council on Integrity and Efficiency.

Brown and Company CPAs, PLLC, is responsible for the enclosed auditor’s report dated November 14, 

2014, and the opinions and conclusions expressed in the report. We do not express any opinion or 

conclusions on the CSB’s financial statements, internal control or compliance with laws and regulations.

This report will be available at http://www.epa.gov/oig. 

Sincerely, 

Paul C. Curtis 

Director, Financial Statement Audits 

Enclosure 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C. 20460

OFFICE OF

INSPECTOR GENERAL
cc: Daniel Horowitz, Ph.D., Managing Director, CSB 

Elizabeth A. Robinson, Finance Director, CSB 

Anna Brown, Director of Administration and Audit Coordinator, CSB 

Richard Loeb, General Counsel, CSB 

Kimberly Penn, Audit Manager, Brown and Company CPAs, PLLC 

Gail Jenifer, Managing Partner, Brown and Company CPAs, PLLC 
1101 MERCANTILE LANE, SUITE 122 ● LARGO, MD 20774

PHONE: (240) 770-4900 ● FAX: (301) 773-2090 ● mail@brownco-cpas.com ● www.brownco-cpas.com

INDEPENDENT AUDITOR'S REPORT 

Office of Inspector General

Chairman and CEO

U.S. Chemical Safety and Hazard Investigation Board 

Washington, D.C.

Report on the Financial Statements

We have audited the accompanying balance sheets of the U.S. Chemical Safety and Hazard Investigation 

Board (CSB) as of September 30, 2014 and 2013, and the related statements of net cost, changes in net 

position, and budgetary resources, for the years then ended (collectively referred to as the financial 

statements), and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with accounting principles generally accepted in the United States of America; this includes 

the design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We 

conducted our audit in accordance with auditing standards generally accepted in the United States of 

America and the standards applicable to financial audits contained in Government Auditing Standards, 

issued by the Comptroller General of the United States; and the Office of Management and Budget 

(OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 14-02, require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 

the financial statements. The procedures selected depend on the auditor’s judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. 

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 

and fair presentation of the financial statements in order to design audit procedures that are appropriate in 

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s 

internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates 

made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion.
2

Opinion on the Financial Statements

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of CSB as of September 30, 2014 and 2013, and its net costs, changes in net position, 

and budgetary resources for the years then ended, in accordance with accounting principles generally 

accepted in the United States of America. 

Other Matters

Accounting principles generally accepted in the United States of America require that the information in 

the Management’s Discussion and Analysis (MD&A) and Required Supplementary Information (RSI)

sections be presented to supplement the basic financial statements. Such information, although not a part 

of the basic financial statements, is required by the Federal Accounting Standards Advisory Board, who

considers it to be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to 

the required supplementary information in accordance with auditing standards generally accepted in the 

United States of America, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management’s responses to our 

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 

financial statements. We do not express an opinion or provide any assurance on the information because 

the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered CSB’s internal control 

over financial reporting (internal control) to design audit procedures that are appropriate in the 

circumstances for the purpose of expressing an opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of CSB’s internal control. Accordingly, we do not 

express an opinion on the effectiveness of CSB’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination 

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less 

severe than a material weakness, yet important enough to merit attention by those charged with 

governance.

Our consideration of the internal control was for the limited purpose described in the first paragraph of 

this section and was not designed to identify all deficiencies in internal control that might be deficiencies,

significant deficiencies or material weaknesses. Given these limitations, during the audit we did not 

identify any deficiencies in internal control that we consider to be a material weakness. However, 

material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether CSB’s financial statements are free from 

material misstatement, we performed tests of its compliance with applicable provisions of laws, 

regulations, contracts and grant agreements, noncompliance with which could have a direct and material 

effect on the determination of financial statement amounts. However, providing an opinion on 

compliance with those provisions was not an objective of our audit, and accordingly, we do not express 
3

such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that 

are required to be reported under Government Auditing Standards or OMB Bulletin No. 14-02.

Management’s Responsibility for Internal Control and Compliance

CSB’s management is responsible for (1) evaluating effectiveness of internal control based on criteria 

established under the Federal Managers Financial Integrity Act (FMFIA), (2) providing a statement of 

assurance on the overall effectiveness of internal control, (3) ensuring CSB’s financial management 

systems are in substantial compliance with FFMIA requirements, and (4) ensuring compliance with other 

applicable laws and regulations.

Auditor’s Responsibilities

We are responsible for: (1) obtaining a sufficient understanding of internal controls to plan the audit, (2) 

testing compliance with certain provisions of laws and regulations that have a direct and material effect 

on the financial statements and applicable laws for which OMB Bulletin No. 14-02 requires testing, and 

(3) applying certain limited procedures with respect to the MD&A and other RSI.

We did not evaluate all internal controls relevant to operating objectives as broadly established by the 

FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations. 

We limited our internal control testing to testing controls over financial reporting. Because of inherent 

limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may 

nevertheless occur and not be detected. We also caution that projecting our audit results to future periods 

is subject to risk that controls may become inadequate because of changes in conditions or that the degree 

of compliance with controls may deteriorate. In addition, we caution that our internal control testing may 

not be sufficient for other purposes.

We did not test compliance with all laws and regulations applicable to CSB. We limited our tests of 

compliance to certain provisions of laws and regulations that have a direct and material effect on the 

financial statements and those required by OMB Bulletin No. 14-02 that we deemed applicable to CSB’s 

financial statements for the fiscal year ended September 30, 2014. We caution that noncompliance with 

laws and regulations may occur and not be detected by these tests and that such testing may not be 

sufficient for other purposes. 

Purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters

The purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters sections of this report is solely to describe the scope of our testing of internal control 

and compliance and the result of that testing, and not to provide an opinion on the effectiveness of CSB’s 

internal control or on compliance. These reports are an integral part of an audit performed in accordance 

with Government Auditing Standards in considering CSB’s internal control and compliance. 

Accordingly, these reports are not suitable for any other purpose.

This report is intended solely for the information and use of the Office of Inspector General, the 

management of CSB, OMB, and Congress, and is not intended to be and should not be used by anyone 

other than these specified parties.

Largo, Maryland

November 14, 2014
U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD

BALANCE SHEET

AS OF SEPTEMBER 30, 2014 AND 2013

(In Dollars)

4

2014 2013

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 4,019,604 $ 4,563,364

Total Intragovernmental 4,019,604 4,563,364

Accounts Receivable, Net (Note 3) 59,133 59,007

Property, Equipment, and Software, Net (Note 4) 21,095 43,094

Total Assets $ 4,099,832 $ 4,665,465

Liabilities:

Intragovernmental

Accounts Payable $ 78,721 $ 41,959

Other (Note 6) 52,970 28,429

Total Intragovernmental 131,691 70,388

Accounts Payable 350,201 272,775

Other (Note 6) 671,679 747,869

Total Liabilities (Note 5) $ 1,153,571 $ 1,091,032

Net Position:

Unexpended Appropriations - Other Funds $ 3,365,173 $ 4,050,887

Cumulative Results of Operations - Other Funds (418,912) (476,454)

Total Net Position $ 2,946,261 $ 3,574,433

Total Liabilities and Net Position $ 4,099,832 $ 4,665,465
U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD

STATEMENT OF NET COST

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

(In Dollars)

5

2014 2013

Program Costs:

 Salaries and Expenses:

Gross Costs (Note 8) $ 10,936,110 $ 10,776,185

Net Cost of Operations $ 10,936,110 $ 10,776,185
U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

(In Dollars)

6

2014 2013

Cumulative Results of Operations:

Beginning Balances $ (476,454) $ (427,198)

Budgetary Financing Sources:

Appropriations Used 10,617,782 10,367,936

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 9) 375,870 358,993

Total Financing Sources 10,993,652 10,726,929

Net Cost of Operations (Note 8) (10,936,110) (10,776,185)

Net Change 57,542 (49,256)

Cumulative Results of Operations $ (418,912) $ (476,454)

Unexpended Appropriations:

Beginning Balances $ 4,050,887 $ 4,406,532

Budgetary Financing Sources:

Appropriations Received 11,000,000 11,129,165

Other Adjustments (1,067,932) (1,116,874)

Appropriations Used (10,617,782) (10,367,936)

Total Budgetary Financing Sources (685,714) (355,645)

Total Unexpended Appropriations $ 3,365,173 $ 4,050,887

Net Position $ 2,946,261 $ 3,574,433
U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

(In Dollars)

7

2014 2013

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 2,732,717 $ 3,005,148

Recoveries of Prior Year Unpaid Obligations 185,059 243,948

Other changes in unobligated balance (1,067,931) (534,755)

Unobligated balance from prior year budget authority, net 1,849,845 2,714,341

Appropriations 11,000,000 10,547,043

Spending authority from offsetting collections 4,247 -

Total Budgetary Resources $ 12,854,092 $ 13,261,384

Status of Budgetary Resources:

Obligations Incurred (Note 11) $ 10,963,009 $ 10,528,667

Unobligated balance, end of year:

 Apportioned 905,161 884,996

 Unapportioned 985,922 1,847,721

Total unobligated balance, end of year 1,891,083 2,732,717

Total Budgetary Resources $ 12,854,092 $ 13,261,384

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 1,828,535 $ 1,847,053

Obligations Incurred (Note 11) 10,963,009 10,528,667

Outlays (gross) (10,477,964) (10,303,237)

Recoveries of Prior Year Unpaid Obligations (185,059) (243,948)

Unpaid Obligations, End of Year (Gross) 2,128,521 1,828,535

Obligated Balance, End of Year $ 2,128,521 $ 1,828,535

Budget Authority and Outlays, Net:

Budget authority, gross $ 11,004,247 $ 10,547,043

Actual offsetting collections (4,247) -

Budget Authority, net, (total) $ 11,000,000 $ 10,547,043

Outlays, gross $ 10,477,964 $ 10,303,238

Actual offsetting collections (4,247) -

Agency outlays, net $ 10,473,717 $ 10,303,238
CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD

NOTES TO THE FINANCIAL STATEMENTS

8

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES

A. Reporting Entity

The United States Chemical Safety and Hazard 

Investigation Board (CSB) is an independent 

Federal agency with the mission of ensuring 

the safety of workers and the public by 

promoting chemical safety and accident 

prevention. The CSB was established by the 

Clean Air Act Amendments of 1990 and is 

responsible for advising the President and 

Congress on key issues related to chemical 

safety and evaluating the effectiveness of other 

Government agencies on safety requirements. 

The CSB receives all of its funding through 

appropriations. The CSB reporting entity is 

comprised of General Funds and General 

Miscellaneous Receipts.

General Funds are accounts used to record 

financial transactions arising under 

congressional appropriations or other 

authorizations to spend general revenues. The 

CSB manages Operations and Facilities, 

Engineering and Development General Fund 

accounts.

General Miscellaneous Receipts are accounts 

established for receipts of non-recurring 

activity, such as fines, penalties, fees and other 

miscellaneous receipts for services and 

benefits.

The CSB has rights and ownership of all assets 

reported in these financial statements. The 

CSB does not possess any non-entity assets.

B. Basis of Presentation

The financial statements have been prepared to 

report the financial position and results of 

operations of the CSB. The Balance Sheet 

presents the financial position of the agency. 

The Statement of Net Cost presents the 

agency’s operating results; the Statement of 

Changes in Net Position displays the changes 

in the agency’s equity accounts. The Statement 

of Budgetary Resources presents the sources, 

status, and uses of the agency’s resources and 

follows the rules for the Budget of the United 

States Government.

The statements are a requirement of the Chief 

Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

the CSB in accordance with the hierarchy of 

accounting principles generally accepted in the 

United States of America, standards issued by 

the Federal Accounting Standards Advisory 

Board (FASAB), Office of Management and 

Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as amended, and the 

CSB accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control the CSB’s use of 

budgetary resources. The financial statements 

and associated notes are presented on a 

comparative basis. Unless specified otherwise, 

all amounts are presented in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual 

accounting basis and a budgetary basis. Under 

the accrual method, revenues are recognized 

when earned, and expenses are recognized 

when a liability is incurred, without regard to 

receipt or payment of cash. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds.
9

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate 

amount of the CSB’s funds with Treasury in 

expenditure, receipt, and deposit fund 

accounts. Appropriated funds recorded in 

expenditure accounts are available to pay 

current liabilities and finance authorized 

purchases. 

The CSB does not maintain bank accounts of 

its own, has no disbursing authority, and does 

not maintain cash held outside of Treasury. 

Treasury disburses funds for the agency on 

demand. Foreign currency payments are made 

either by Treasury or the Department of State 

and are reported by the CSB in the U.S. dollar 

equivalents.

E. Accounts Receivable

Accounts receivable can consist of amounts 

owed to the CSB by other Federal agencies 

and the general public. Amounts due from 

Federal agencies are considered fully 

collectible. Accounts receivable from the 

public include reimbursements from 

employees and a security deposit prior to 2003 

which was reclassified to a receivable. An 

allowance for uncollectible accounts 

receivable from the public is established when, 

based upon a review of outstanding accounts 

and the failure of all collection efforts, 

management determines that collection is 

unlikely to occur considering the debtor’s 

ability to pay.

F. Property, Equipment, and Software

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. 

Major alterations and renovations are 

capitalized, while maintenance and repair costs 

are expensed as incurred. The CSB’s 

capitalization threshold is $10,000 for 

individual purchases and $50,000 for bulk 

purchases. Property, equipment, and software 

acquisitions that do not meet the capitalization 

criteria are expensed upon receipt. Applicable 

standard governmental guidelines regulate the 

disposal and convertibility of agency property, 

equipment, and software. The useful life 

classifications for capitalized assets are as 

follows:

Description Useful Life (years)

Leasehold Improvements Lease Term

Office Furniture 7

Office Equipment 5

Computer Equipment 3

Software 3

G. Liabilities

Liabilities represent the amount of funds likely 

to be paid by the CSB as a result of 

transactions or events that have already 

occurred.

The CSB reports its liabilities under two 

categories, Intragovernmental and With the 

Public. Intragovernmental liabilities represent 

funds owed to another government agency. 

Liabilities with the Public represent funds 

owed to any entity or person that is not a 

federal agency, including private sector firms 

and federal employees. Each of these 

categories may include liabilities that are 

covered by budgetary resources and liabilities 

not covered by budgetary resources.

Liabilities covered by budgetary resources are 

liabilities funded by a current appropriation or 

other funding source. These consist of 

accounts payable and accrued payroll and 

benefits. Accounts payable represent amounts 

owed to another entity for goods ordered and 

received and for services rendered except for 

employees. Accrued payroll and benefits 

represent payroll costs earned by employees 

during the fiscal year which are not paid until 

the next fiscal year.

Liabilities not covered by budgetary resources 

are liabilities that are not funded by any 

current appropriation or other funding source. 
10

These liabilities consist of accrued annual 

leave and the amounts due to Treasury for 

collection and accounts receivable of civil 

penalties and Freedom of Information Act 

(FOIA) request fees. 

H. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is 

adjusted to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and 

unused hours of leave. Funding will be 

obtained from future financing sources to the 

extent that current or prior year appropriations 

are not available to fund annual and other 

types of vested leave earned but not taken. 

Non-vested leave is expensed when used. Any 

liability for sick leave that is accrued but not 

taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon 

the retirement of that individual. Credit is 

given for sick leave balances in the 

computation of annuities upon the retirement 

of Federal Employees Retirement System 

(FERS)-covered employees effective at 50% 

beginning FY 2010 and 100% in 2014.

I. Accrued and Actuarial Workers’ 

Compensation

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

by the CSB employees for on-the-job injuries. 

The DOL bills each agency annually as its 

claims are paid, but payment of these bills is 

deferred for two years to allow for funding 

through the budget process. Similarly, 

employees that the CSB terminates without 

cause may receive unemployment 

compensation benefits under the 

unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. The liability consists 

of the unreimbursed cost paid by DOL for 

compensation to recipients under the FECA.

J. Retirement Plans

The CSB employees participate in either the 

CSRS or the FERS. The employees who 

participate in CSRS are beneficiaries of the 

CSB matching contribution, equal to seven 

percent of pay, distributed to their annuity 

account in the Civil Service Retirement and 

Disability Fund.

Prior to December 31, 1983, all employees 

were covered under the CSRS program. From 

January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of 

pay and the CSB matches any employee 

contribution up to an additional four percent of 

pay. For FERS participants, the CSB also 

contributes the employer’s matching share of 

Social Security.

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, the CSB remits 

the employer’s share of the required 

contribution.

The CSB recognizes the imputed cost of 

pension and other retirement benefits during 

the employees’ active years of service. OPM 

actuaries determine pension cost factors by 

calculating the value of pension benefits 

expected to be paid in the future and 

communicate these factors to the CSB for 

current period expense reporting. OPM also 

provides information regarding the full cost of 

health and life insurance benefits. The CSB 

recognized the offsetting revenue as imputed 

financing sources to the extent these expenses 

will be paid by OPM.
11

The CSB does not report on its financial 

statements information pertaining to the 

retirement plans covering its employees. 

Reporting amounts such as plan assets, 

accumulated plan benefits, and related 

unfunded liabilities, if any, is the responsibility 

of the OPM, as the administrator.

K. Other Post-Employment Benefits

The CSB employees eligible to participate in 

the Federal Employees' Health Benefits Plan 

(FEHBP) and the Federal Employees' Group 

Life Insurance Program (FEGLIP) may 

continue to participate in these programs after 

their retirement. The OPM has provided the 

CSB with certain cost factors that estimate the 

true cost of providing the post-retirement 

benefit to current employees. The CSB 

recognizes a current cost for these and Other 

Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB 

expense is financed by OPM, and offset by the 

CSB through the recognition of an imputed 

financing source. 

L. Use of Estimates

The preparation of the accompanying financial 

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts 

of assets, liabilities, revenues, and expenses. 

Actual results could differ from those 

estimates. 

M. Imputed Costs/Financing Sources

Federal Government entities often receive 

goods and services from other Federal 

Government entities without reimbursing the 

providing entity for all the related costs. In 

addition, Federal Government entities also 

incur costs that are paid in total or in part by 

other entities. An imputed financing source is 

recognized by the receiving entity for costs 

that are paid by other entities. The CSB 

recognized imputed costs and financing 

sources in fiscal years 2014 and 2013 to the 

extent directed by accounting standards.

N. Reclassification

Certain fiscal year 2013 balances have been 

reclassified, retitled, or combined with other 

financial statement line items for consistency 

with the current year presentation.
12

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2014 and 2013 were as follows:

2014 2013

Fund Balances:

Appropriated Funds $ 4,019,604 $ 4,561,252 

Other Fund Types - 2,112 

Total $ 4,019,604 $ 4,563,364 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 905,161 $ 884,996 

 Unavailable 985,922 1,847,721 

Obligated Balance Not Yet Disbursed 2,128,521 1,828,535 

Non-Budgetary FBWT - 2,112 

Total $ 4,019,604 $ 4,563,364 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances in the 

Treasury accounts.

The available unobligated fund balances represent the current-period amount available for obligation or 

commitment. At the start of the next fiscal year, this amount will become part of the unavailable balance 

as described in the following paragraph.

The unavailable unobligated fund balances represent the amount of appropriations for which the period of 

availability for obligation has expired. These balances are available for upward adjustments of 

obligations incurred only during the period for which the appropriation was available for obligation or for 

paying claims attributable to the appropriations.

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and undelivered 

orders that have reduced unexpended appropriations but have not yet decreased the fund balance on hand 

(see Note 12).

NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2014 and 2013 were as follows:

2014 2013

With the Public

Accounts Receivable $ 59,133 $ 59,007

Total Accounts Receivable $ 59,133 $ 59,007

The accounts receivable is primarily made up of a security deposit of $59,000 made prior to 2003, which 

was reclassified to a receivable. The remaining accounts receivable balance is reimburse-ments due from 

employees. 

Historical experience has indicated that the majority of the receivables are collectible. There are no 

material uncollectible accounts as of September 30, 2014 and 2013.
13

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2014:

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation Net Book Value

Leasehold Improvements $ 711,505 $ 711,505 $ -

Furniture & Equipment 1,649,613 1,649,613 -

Software 131,270 117,499 13,771

Construction-in-Progress 7,324 N/A 7,324

Total $ 2,499,712 $ 2,478,617 $ 21,095

Schedule of Property, Equipment, and Software as of September 30, 2013:

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation Net Book Value

Leasehold Improvements $ 711,505 $ 711,505 $ -

Furniture & Equipment 1,649,613 1,645,073 4,540

Software 131,271 92,717 38,554

Total $ 2,492,389 $ 2,449,295 $ 43,094

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the CSB as of September 30, 2014 and 2013 include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be provided. 

Although future appropriations to fund these liabilities are likely and anticipated, it is not certain that 

appropriations will be enacted to fund these liabilities. 

2014 2013

Unfunded Leave $ 440,141 $ 519,551

Total Liabilities Not Covered by Budgetary Resources $ 440,141 $ 519,551

Total Liabilities Covered by Budgetary Resources 713,430 571,481

Total Liabilities $ 1,153,571 $ 1,091,032

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The balance in 

the accrued annual leave account is reviewed quarterly and adjusted as needed to accurately reflect the 

liability at current pay rates and leave balances. Accrued annual leave is paid from future funding sources 

and, accordingly, is reflected as a liability not covered by budgetary resources. Sick and other leave is 

expensed as taken.
14

NOTE 6. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2014 were as follows:

Current Non Current Total

Intragovernmental

Payroll Taxes Payable $ 52,970 $ - $ 52,970

Total Intragovernmental Other Liabilities $ 52,970 $ - $ 52,970

With the Public

 Payroll Taxes Payable $ 5,105 $ - $ 5,105

 Accrued Funded Payroll and Leave 167,433 - 167,433

 Unfunded Leave 440,141 - 440,141

 Custodial Liability 59,000 59,000

Total Public Other Liabilities $ 671,679 $ - $ 671,679

Other liabilities account balances as of September 30, 2013 were as follows:

Current Non Current Total

Intragovernmental

Payroll Taxes Payable $ 28,429 $ - $ 28,429

Total Intragovernmental Other Liabilities $ 28,429 $ - $ 28,429

With the Public

 Payroll Taxes Payable $ 52,530 $ - $ 52,530

 Accrued Funded Payroll and Leave 114,676 - 114,676

 Unfunded Leave 519,551 - 519,551

 Custodial Liability 2,112 59,000 61,112

Total Public Other Liabilities $ 688,869 $ 59,000 $ 747,869

NOTE 7. LEASES

Operating Leases

The CSB occupies offices in Washington, DC and Denver, CO under lease agreements. The total 

operating lease expenses for the twelve months ended September 30, 2014 and 2013 were $1,064,570 and 

$988,875, respectively. The CSB began sub-leasing a portion of the DC office space in October 2012 for 

$8,333 per month, ending in August 2014. Therefore, these collections have reduced their rent expense 

by $91,667 and $100,000 as of September 30, 2014 and 2013, respectively. 

The lease agreement for office space in Washington, DC is accounted for as an operating lease. In FY 

2010, the CSB executed a supplemental lease agreement that amended the lease to renew it for a five-year 

term commencing on October 1, 2010 and ending on September 30, 2015. Below is a schedule of future 

payments for the term of the lease, including estimated real estate taxes and operating expenses which are 

subject to annual adjustments.
15

The CSB has plans to relocate its DC offices to a new location when the current lease expires. The 

commencement date of this lease, along with any applicable termination and renewal rights, shall be more 

specifically set forth in a lease amendment upon substantial completion and acceptance of the space by 

the government.

Washington, DC

Fiscal Year Building

2015 $ 1,118,027

Total Future Payments $ 1,118,027

The two lease agreements for office space in Denver, CO are accounted for as operating leases. The first 

lease term began on February 1, 2013 and the last will expire on September 30, 2019. In FY 2013 CSB 

identified the need for a larger space to house all of the CSB’s Denver employees contiguously, so a 

move to a different building was planned for January 2014 but has been postponed to mid-November at 

this point. At that time a new lease will be in effect that will extend five years. 

Lease payments are increased annually based on the adjustments for operating cost. The CSB may 

relinquish space upon four (4) months’ notice. Thus, at any future time, the CSB's financial obligation can 

be reduced to four (4) months of rent, plus the unamortized balance of any tenant improvements financed 

through Public Buildings Service (PBS) plus any rent concessions not yet earned. Below is a schedule of 

future payments for the Denver lease.

Denver, CO

Fiscal Year Building

2015 $ 86,878

2016 88,845

2017 96,693

2018 97,684

2019 98,696

Total Future Payments $ 468,796

NOTE 8. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intragovernmental costs and revenue represent exchange transactions between the CSB and other federal 

government entities, and are in contrast to those with non-federal entities (the public). Such costs and 

revenue are summarized as follows:

2014 2013

Intragovernmental Costs $ 2,139,620 $ 2,074,944

Public Costs 8,796,490 8,701,241

 Net Program Costs $ 10,936,110 $ 10,776,185

NOTE 9. IMPUTED FINANCING SOURCES

The CSB recognizes as imputed financing the amount of accrued pension and post-retirement benefit 

expenses for current employees. The assets and liabilities associated with such benefits are the 

responsibility of the administering agency, OPM. For the fiscal years ended September 30, 2014 and 

2013, respectively, imputed financing was as follows:
16

2014 2013

Office of Personnel Management $ 375,870 $ 358,993 

Total Imputed Financing Sources $ 375,870 $ 358,993 

NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE UNITED 

STATES GOVERNMENT

The President’s Budget that will include fiscal year 2014 actual budgetary execution information has not 

yet been published. The President’s Budget is scheduled for publication in February 2015 and can be 

found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2015 Budget of the United States 

Government, with the "Actual" column completed for 2013, has been reconciled to the Statement of 

Budgetary Resources and there were no material differences. 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources for 2014 and 2013 consisted 

of the following:

2014 2013

Direct Obligations, Category B $ 10,963,009 $ 10,528,667

Total Obligations Incurred $ 10,963,009 $ 10,528,667

Category B apportionments typically distribute budgetary resources by activities, projects, objects or a 

combination of these categories.

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD

For the fiscal years ended September 30, 2014 and 2013, budgetary resources obligated for undelivered 

orders amounted to $1,474,089 and $1,318,167, respectively.

NOTE 13. CUSTODIAL ACTIVITY

The CSB’s custodial collection primarily consists of Freedom of Information Act requests. While these 

collections are considered custodial, they are neither primary to the mission of the CSB nor material to the 

overall financial statements. The CSB’s total custodial collections are $1,556 and $2,112 for the fiscal 

years ended September 30, 2014, and 2013, respectively.
17

NOTE 14. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

The CSB has reconciled its budgetary obligations and non-budgetary resources available to its net cost of 

operations.

2014 2013

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $10,963,009 $10,528,667

Spending Authority From Offsetting Collections and Recoveries (189,306) (243,948)

Net Obligations 10,773,703 10,284,719

Other Resources

Imputed Financing From Costs Absorbed By Others 375,870 358,993

Net Other Resources Used to Finance Activities 375,870 358,993

Total Resources Used to Finance Activities 11,149,573 10,643,712

Resources Used to Finance Items Not Part of the Net Cost of 

Operations (242,659) 58,781

Total Resources Used to Finance the Net Cost of Operations 10,906,914 10,702,493

Components of the Net Cost of Operations That Will Not Require or

Generate Resources in the Current Period: 29,196 73,692

Net Cost of Operations $10,936,110 $10,776,185