National Council on Disability

Performance and Accountability Report

Fiscal Year 2013
Table of Contents

Introduction

Report Purpose ..............................................................................................................1

Report Organization .......................................................................................................1

Message from the Chair.................................................................................................2

Management’s Discussion and Analysis

History ............................................................................................................................6

Organization ...................................................................................................................6

Mission, Vision, Goals and Objectives ...........................................................................9

Agency Mission Challenges ...........................................................................................10

Performance Measurement Methodology ......................................................................11

Performance Highlights ..................................................................................................11

Financial Highlights ........................................................................................................20

Management Assurances and Analysis of Controls, Systems and Legal 

Compliance

Implementation of Federal Manager’s Financial Integrity Act (FMFIA) at NCD .............24

Legal Compliance...........................................................................................................25

Chair’s FMFIA Statement of Assurance .........................................................................28

Performance Section

Performance Framework................................................................................................29

Performance Measurement Challenge...........................................................................33

Program Activities & Performance Results by Strategic Objectives...............................34

Financial Section

Message from the Executive Director ............................................................................59

Independent Auditor’s Report

Principal Financial Statements

Notes to the Financial Statements

Appendix A – Listing of Abbreviations and Acronyms
Introduction

1

Report Purpose

The National Council on Disability’s (NCD) Fiscal Year (FY) 2013Performance and 

Accountability Report (PAR) provides the results of the agency’s program and financial 

performance and demonstrates to the Congress, the President, and the public NCD’s 

commitment to its mission and accountability over the resources entrusted to it.

This report includes information that satisfies the reporting requirements contained in 

the following legislation:

• Federal Managers’ Financial Integrity Act of 1982

• Government Performance and Results Act of 1993

• Government Management Reform Act of 1994

• Reports Consolidation Act of 2000

• Accountability of Tax Dollars Act of 2002

• Improper Payments Information Act of 2002

• GPRA Modernization Act of 2010

Report Organization

1. Management’s Discussion and Analysis - Provides an overview of 

NCD’s mission and organization, mission challenges, performance measurement 

methodology, key performance measures and efficiency measures, performance 

highlights, alignment of NCD costs and goals, financial highlights, and 

management assurances on internal control and financial systems.

2. Performance Section – Explains NCD’s performance relative to its strategic 

goals and objectives, and includes an overview on how performance data are 

verified and validated.

3. Financial Section – Provides financial details, including the independent 

auditors report and audited financial statements with accompanying notes.
Management’s Discussion and Analysis

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Message from the Chairperson

On behalf of the members of the National Council on Disability (NCD or the Council), I 

am pleased to submit the Fiscal Year (FY) 2013 Performance and Accountability Report 

(PAR). The Council received a qualified opinion from its independent auditors on its FY 

2013 annual financial statements. 

The Council is working intensely with technical and contractual support from the 

General Services Administration to improve and further strengthen our internal agency 

operations and fiscal management. Additionally, NCD is also implementing best 

practice procedures in accordance with guidance from the Government Accountability 

Office (GAO) and the AICPA Audit Committee Effectiveness Center. 

During the course of FY2013, the Council developed and adopted a financial procedural 

manual facilitated under the leadership of the Audit and Finance Committee and 

reviewed by external government partners for additional input. In FY2014 the same 

quality work will be conducted on the Council’s Administrative Policy manual to bring 

this document up to the standards required by the federal government. 

The Audit & Finance Committee and the Executive Committee have reviewed and 

approved the Council’s Corrective Action Plan (incorporated in this document) to make 

decisive action to improve internal controls, IT security, and overall oversight as we 

move into FY2014. We have also worked with GSA to refine the requirements and 

duties of a financial analyst to further strengthen our internal operations. 

As the Council moves to fill our vacant positions in FY2014, we have partnered with 

GSA in obtaining recommended contractual support to carry out these functions in the 

interim to ensure continuity of operations and improve the segregation of duties.

The Council’s role as an independent advisor on disability matters to the President and 

Congress is essential to assuring the Federal government is well informed and qualified 

to perform their duties and effectively serve the public, including individuals with 

disabilities. NCD carries out its mission to promote equality of opportunity, full 

participation, independent living and economic self-sufficiency for people with 

disabilities of all ages and backgrounds by: (1) continually reviewing disability programs 

and policies, (2) meeting with people with disabilities and other stakeholders around the 

country to learn about on-the-ground realities, and (3) providing advice, analysis and 

recommendations on disability policy to the President, Congress, and other federal 

agencies. NCD’s analysis and recommendations have led to enactment of important 

laws and other improvements to the programs and services provided by the many 

federal agencies that serve the disability community. NCD’s most notable achievement 

is drafting and recommending the Americans with Disabilities Act.

During FY 2013, the Council extended its engagement in several substantive areas that 

contributed to the nation’s progress toward achieving the goals of equality of 
Management’s Discussion and Analysis

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opportunity, independent living, full participation, and economic self-sufficiency for all 

people with disabilities. 

These efforts have been undertaken as effective stewards of limited fiscal resources 

and included addressing the needs of people who have acquired disabilities, measuring 

the accessibility of polling places, promoting innovation in health care and fairness in 

the implementation of managed care. Additionally we are proud to continue our efforts 

in promoting effective communication fully accessible to all people with disabilities 

throughout all phases of emergency management.

The Council partnered with the White House on several initiatives promoting new 

leaders in the disability community, and addressing issues of mental health reform. In 

the course of the year NCD released a series of timely reports, papers, and letters 

including:

o Clearing the Backlog and Facilitating Benefits for Veterans with Disabilities 

o Experience of Voters with Disabilities in the 2012 Election Cycle 

o NCD Letter to Senate HELP Committee Opposing Sec. 511's Inclusion in WIA 

Reauthorization 

o A Promising Start: Preliminary Analysis of Court Decisions Under the ADA 

Amendments Act 

o NCD Letter to Senate Foreign Relations Committee Reaffirms Strong Support of 

U.S. Ratification of U.N. Disability Treaty 

o NCD Letter to EEOC Urging Employer Wellness Program Guidance 

o A Medicaid Block Grant Program: Implications for People with Disabilities 

o The Case for Medicaid Self-Direction: A White Paper on Research, Practice, and 

Policy Opportunities 

o NCD Urges HUD to Issue Olmstead Guidance 

o Medicaid Managed Care for People with Disabilities 

o NCD Statement on the President's FY14 Budget 

o Letter to OMB about the Companionship Exemption 

o Letter to House Energy and Commerce Subcommittee on Oversight on Mental 

Health, Lack of Representation of People with Psychiatric Disabilities at 

Roundtable 

o Letter to Vice President Biden Regarding Anticipated Taskforce 

Recommendations 

o Toward the Full Inclusion of People with Disabilities: Examining the Accessibility 

of Overseas Facilities and Programs Funded by the United States 

o NCD Letter to President Obama Regarding Mental Health Funding 

o NCD Letter to House Homeland Security Subcommittee on Emergency 

Preparedness Regarding IPAWS Bill 

o NCD Letter to CMS about Amendment to Kancare Medicaid Section 1115 

o NCD Education Forum Report: UN Convention on the Rights of Persons with 

Disabilities 

o NCD Letter to Senate Finance Committee in Support of Amendment Language 

Regarding Supported Employment 
Management’s Discussion and Analysis

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o Clearing the Backlog and Facilitating Benefits for Veterans with Disabilities 

o Experience of Voters with Disabilities in the 2012 Election Cycle 

o NCD Hosts Tactile Currency Forum in Honor of 40th Anniversary of the Rehab 

Act

o NCD Letter to Senate HELP Committee Opposing Sec. 511's Inclusion in WIA 

Reauthorization 

o A Promising Start: Preliminary Analysis of Court Decisions Under the ADA 

Amendments Act 

o NCD Letter to Senate HELP Committee Opposing Proposal to Reduce NCD 

Membership from 15 to 9 

o NCD News Release: NCD Supports Innovations for Increasing Drug Label 

Accessibility

o NCD Letter to Senate Foreign Relations Committee Reaffirms Strong Support of 

U.S. Ratification of U.N. Disability Treaty 

o NCD Letter to Commission on Long-Term Care 

o NCD Letter to EEOC Urging Employer Wellness Program Guidance 

o NCD News Release: NCD Welcomes Efforts to Restore Section 503 as a 

Meaningful Requirement for Federal Contractors

o A Medicaid Block Grant Program: Implications for People with Disabilities 

o The Case for Medicaid Self-Direction: A White Paper on Research, Practice, and 

Policy Opportunities 

o NCD Urges HUD to Issue Olmstead Guidance 

o NCD News Release: NCD Calls for the Prosecution of Hate Crimes against 

People with Disabilities Following Death of Autistic Teenager

o Medicaid Managed Care for People with Disabilities 

o NCD Statement on the President's FY14 Budget 

o Letter to OMB about the Companionship Exemption 

o Letter to House Energy and Commerce Subcommittee on Oversight on Mental 

Health, Lack of Representation of People with Psychiatric Disabilities at 

Roundtable 

o Letter to Vice President Biden Regarding Anticipated Taskforce 

Recommendations 

o Toward the Full Inclusion of People with Disabilities: Examining the Accessibility 

of Overseas Facilities and Programs Funded by the United States 

o NCD News Release: NCD Response to the State of the Union Address

o NCD 2013 Progress Report 

The Council released its Annual Progress Report in the fall of 2013, in accordance with 

NCD’s authorizing statute (National Disability Policy: A Progress Report): 2013 National 

Disability Policy: A Progress Report: “Strength in Our Differences”.

NCD is proud of its successful efforts in promoting equality of opportunity, full participation, 

independent living, and economic sufficiency for all individuals with disabilities, of all ages, 

throughout the country. I want to express my profound appreciation for the hard work and 

dedication of NCD’s Members and staff, who continued to make important policy contributions 

while simultaneously addressing a significant deficiency reported in the FY 2011 independent 
Management’s Discussion and Analysis

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audit. We remain steadfast in our commitment to carrying out our responsibilities in working 

with the President, the Congress and each level of local, state and federal agencies to 

accomplish our nation’s vision of valuing and respecting each member of our society. 

Sincerely,

Jeff Rosen, | Chairperson
Management’s Discussion and Analysis

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History

National Council on Disability (NCD) (www.ncd.gov) is an independent federal agency 

that advances full inclusion, independence, and equal opportunity for people with 

disabilities. NCD was initially established in 1978 as an advisory board within the U.S. 

Department of Education (Public Law 95-602). The Rehabilitation Act Amendments of 

1984 (Public Law 98-221) transformed NCD into an independent agency and required 

NCD to provide expert advice to Congress and the Administration. Changes were also 

made to NCD’s statutory mandate by the Rehabilitation Act Amendments of 1992 and 

1998 and the Education of the Deaf Act Technical Amendments of 1993.

Organization

Governance

NCD’s governing body is the Council, which is comprised of 15 Senate-confirmed (as of 

October 10, 2012, NCD members are no longer confirmed by Senate per the 

Presidential Appointment Efficiency and Streamlining Act of 2011) Presidential 

appointees, including a Chair, whom the President appoints, and a Vice Chair, 

determined by the Chair. Council Members live across the country and each brings a 

unique perspective informed by varied personal and professional experiences. Council 

Members are people with disabilities, parents or guardians of people with disabilities, or 

other people who have substantial knowledge of or experience with disability policies 

and programs. Council Members are appointed to represent people with disabilities, 

national organizations concerned with disabilities, providers and administrators of 

services to people with disabilities, people engaged in conducting medical or scientific 

research related to disabilities, business concerns, and labor organizations. A majority 

of Council Members are people with disabilities.

As the governing body, Council Members establish NCD’s priorities and budget, and 

monitors and provides oversight of NCD’s programs, operations, and finances. The 

Council is organized into four standing committees:

• Executive Committee

• Audit and Finance Committee

• Governance and Planning Committee

• Policy Development and Program Evaluation Committee

The Audit and Finance Committee monitors the operating effectiveness of internal 

controls, reliability and usefulness of financial statements and supplemental financial 

information provided to stakeholders, and compliance with audit and financial reporting 

requirements.
Management’s Discussion and Analysis

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The Chair appoints an Executive Director and evaluates the Executive Director’s 

performance.

Management

NCD’s Executive Director serves as the chief executive of the agency and has full 

responsibility for managing the agency to accomplish the mission, goals and objectives 

established by legislation and Council members. NCD currently has 11 full time 

employees organized into three teams:

• Policy & Legal Team - The Policy & Legal Team analyzes federal laws, 

regulations, programs, policies, and case law precedent; and proposes and 

develops NCD policy positions that have a national, state and international 

impact on the lives of people with disabilities.

• Legislative Affairs & Outreach Team - The Legislative Affairs & Outreach 

Team closely monitors Congressional activity on issues critical to the disability 

community and cultivates and maintains effective working relationships with NCD 

stakeholders at the federal, state, and local levels.

• Finance, Operations & Administration Team - The Operations & Administration 

Team provides staff support and monitors the agency's finance and accounting, 

information technology, and human resources management.
Management’s Discussion and Analysis

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Management’s Discussion and Analysis

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Mission, Vision, Goals & Objectives

NCD has a unique mission among federal agencies because it is charged with 

reviewing all programs and policies across the federal government, not merely one 

aspect of policy affecting people with disabilities.

Mission

Promote equality of opportunity, full participation, independent living 

and economic self-sufficiency of people with disabilities of all ages 

and backgrounds by providing advice, analysis and 

recommendations on disability policy to the President, Congress 

and other federal agencies.

Vision

NCD leads by facilitating, articulating and promoting inclusion and 

empowerment of individuals with disabilities to live, learn and earn 

based on informed choices.

Strategic 

Goal

Advance the goals of the Americans with Disabilities Act by 

promoting policies, programs, practices, and procedures that 

guarantee equal opportunity and provide for economic selfsufficiency, independent living, and inclusion and integration

into all aspects of society for individuals with disabilities.

Strategic 

Objectives

1. Engagement - Engage stakeholders in order to assess 

concerns and priorities and build a network of NCD partners.

2. Policy Development & Collaboration – Address 

stakeholder concerns and priorities by advancing specific, 

practical, policy solutions and encouraging collaboration.

Agency Mission Challenges

NCD is a small organization that advises the President and Congress on disability policy 

by engaging with the community, setting policy priorities and working in such areas, 

developing policy recommendations, and promoting progress and systems change on 

issues that affect the disability community.

With a budget of only $3.18 million, 15 part-time Council Members, and 13 full-time 

staff, NCD has cultivated and routinely leverages strategic partnerships and works 

closely with a variety of important stakeholders – including people with disabilities, 

federal, state and local agencies, elected officials and their staff, universities, and a 

diverse group of non-profit organizations and individual disability policy experts and 

advocates – to advance our mission, goals and objectives.
Management’s Discussion and Analysis

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NCD’s strategic objectives of engagement and policy development can be quantifiably 

measured by our raw data and enumerating the number of people that attend our 

forums, regularly engage with us via social media, download and read our policy reports 

and adopt or promote our recommendations. However, measuring NCD’s impact on its 

strategic goal of guaranteeing equal opportunity and providing for economic selfsufficiency, independent living, and inclusion and integration into all aspects of society 

for individuals with disabilities is far more subjective since these are systemic endeavors

in which NCD is part of a community of agencies, advocates, and others seeking to 

secure such outcomes. NCD is continually working to identify better mechanisms for 

measuring outcomes and reporting achievements. This includes increased efforts to 

gather and report personal stories of where our engagement or policy initiatives 

provided a spark or tipping point toward improving the lives of people with disabilities.

Performance Management Methodology

NCD utilizes the following performance management methodology to set priorities, 

allocate resources, and evaluate results.

Strategic Goal Statements of long-term aims outlined in Strategic Plan, 

which define how NCD carries out its mission.

Objectives Statements of how NCD plans to achieve its strategic goals.

Performance 

Measures

Indicators used to gauge success in reaching strategic 

objectives.

Key Measures

Measures that best indicate whether NCD’s activities are 

achieving the desired outcome associated with the related 

objective.

Targets

Expressions of desired performance levels or specific 

desired results targeted for a given fiscal year. Targets are

expressed in quantifiable terms.

Outcomes Meaningful measures to show effectiveness, efficiency and 

results in mission achievement.

As previously mentioned, measuring NCD’s impact on its strategic goal of guaranteeing 

equal opportunity and providing for economic self-sufficiency, independent living, and 

inclusion and integration into all aspects of society for individuals with disabilities is 

challenging since these are large-scale, long-term endeavors.

Accordingly, as we evaluate performance measurements, key measures, targets and 

outcomes, we ask:
Management’s Discussion and Analysis

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• Has NCD identified critical needs where our engagement with stakeholders and 

policy development and collaboration can advance existing initiatives?

• Can NCD be a thought leader, performing important research and analysis on 

critical topics?

• Can NCD provide practical, timely policy recommendations and consultations to 

Members of Congress and the Executive Branch? 

Performance Highlights

NCD has achieved meaningful accomplishments in advancing its mission, vision, 

strategic goals and strategic objectives. This includes combining engagement to learn 

about critical issues, conducting independent, objective, fact-based research and 

analysis of issues, publishing reports with policy recommendations and questions for 

consideration by elected officials, and then continuing engagement on the issues. 

One notable area of achievement has been the work of NCD in addressing the 

increasing use of managed care in Medicaid for individuals with disabilities, as states 

move to control increasing Medicaid costs, while preserving quality and access to 

services for individuals with disabilities. NCD’s reports on Guiding Principles for 

Managed Care programs and A Medicaid Block Grant Program: Implications for People 

with Disabilities has been used citied by numerous national disability stakeholder 

organizations, as well as CMS and state governments as a valued resource for federal 

and state partners. In FY 2013 and into FY 2014, NCD has held and will be holding a 

series of regional stakeholder/federal & state partner forums to assist policy makers and 

program administrators in understanding the impact of managed care upon the disability 

community. Forums have been held and will be held in varied locations including, 

Topeka, Tallahassee, Sacramento, Chicago and New York City. Federal partners who 

have assisted in these forums include the Department of Justice-Office of Civil Rights, 

SAMSA, CMS and others.

Another key area of focus for NCD in FY 2013 included the Council’s work addressing 

voter accessibility issues for individuals with disabilities. The Council’s publication:

Experience of Voters with Disabilities in the 2012 Election Cycle, highlighted the 

difficulties faced by individuals with disabilities in achieving access to be able to vote, 

including access to polling locations, and their ability to have a secret and secure ballot.

Interest in this topic resulted in the NCD holding a hearing in the U.S. Capitol, in 

accordance with the Council’s authority to conduct public hearings. A variety of 

stakeholders and expert witnesses testified regarding this issue, including the author of 

the Help America Vote Act, former U.S. Senator Chris Dodd.
Management’s Discussion and Analysis

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A continuing area of interest in NCD’s integrated policy development process work is 

the Council’s prior report on the parenting rights of people with disabilities.

In 2010, at one of NCD’s quarterly meetings, NCD heard from the head of a national 

disability rights organization, who described a nationwide occurrence of parents with 

disabilities being denied custody of their children after their births or during custody 

battles in divorce, solely on the basis of their disabilities. Several months later, in 2011, 

as a part of NCD’s engagement activities, NCD hosted a regional policy forum in

Portland, OR, and included a panel of parents and experts who discussed the topic at 

length, just months after the topic had been flagged at the NCD Quarterly Meeting. 

Equipped with the panel’s information, the Council voted to commission a report on the 

topic as well as policy areas tangential to parenting (including access to assisted 

reproductive technologies and to international adoption), and to focus its attention on 

legislative and policy solutions. The outcome of this policy-development endeavor, born 

out of NCD’s engagement activities, is NCD’s “Rocking the Cradle: Ensuring the 

Rights of Parents with Disabilities and Their Children” report, which is a first of its 

kind: http://www.ncd.gov/publications/2012/Sep272012/ and has been widely hailed 

across both the disability community and social services professional circles as an 

important and valuable report.

The purpose of this report is to comprehensively examine the barriers and facilitators 

people with disabilities experience in exercising their fundamental right to create and 

maintain families, and to highlight the persistent, systemic, and pervasive discrimination 

against parents with disabilities. In particular, the report analyzes how U.S. federal 

disability law and policy applies to parents with disabilities within the child welfare system 

and the family law system, and the systems’ disparate treatment of parents with disabilities 

and their children. The report examines the impediments prospective parents with 

disabilities encounter when they attempt to adopt children, either domestically or 

internationally, and when they attempt to access assisted reproductive technologies.

As a result of NCD’s robust and ongoing report dissemination strategies, in early FY13, 

over six million Americans around the country heard about the key findings and 

recommendations in the report over a series of dozens of radio shows in diverse markets; 

and millions more read of the report through a full-length Associated Press article written 

on the topic, featuring a number of the profiles of parents whose experiences were 

highlighted in the report. Spin-off and follow-up coverage of the report has continued in a 

variety of mainstream local news outlets, as well as professional journals and blogs. 

On April 17, 2013, NCD hosted a congressional briefing on the report. Rather than merely 

providing a summary of the report, NCD collaborated to host the well-attended briefing 

with many of the professionals who are primary stakeholders in the findings and 

recommendations of the report. Testimony and support for the report’s recommendations 

from NCD Members and staff, a psychologist and member of the American Psychological 

Association, a professor of social work and member of the National Association of Social 
Management’s Discussion and Analysis

13

Workers, and the vice president of policy and public affairs of the Child Welfare League of 

America. 

State legislators have also taken notice of the issue since the report’s release and at least 

two state legislators have introduced state legislation based on the recommended model 

legislation in the report. In FY 14 the Council is planning on working on model federal 

legislation on this topic and for 2015 a National Conference on the Civil Rights of Parents 

with Disabilities. NCD has been requested by the National Council of State Legislatures to 

submit presentation request to discuss the parenting report at the 2014 NCSL Annual

Conference in August 2014.

NCD has also continued to recommend the United States Senate ratify the Convention 

on the Rights of Persons with Disabilities. To that end, the Convention on the Rights of 

Persons with Disabilities (CRPD) educational forum provided an excellent opportunity to 

highlight critical information about the CRPD and the leadership role of National Council 

on Disability and its partners in strongly supporting ratification. Approximately 100 

representatives of the disability and veteran communities came to Washington, DC on 

September 17, 2013 to participate in an educational forum on ratification of the treaty. In 

partnership, NCD and U.S. International Council on Disabilities convened the forum to 

hear from leaders and experts from various disability, veteran, faith and business 

organizations involved in promoting greater understanding of the importance of the 

treaty, the process, and timely ratification. Overall, the forum presented the CRPD as a 

vital framework for use around the world in creating legislation and policies that 

embrace the human rights and dignity of all people with disabilities.

NCD has improved measurement of outputs and outcomes. This includes more formal 

tracking of engagement activities at forums, website usage, social media, and collecting 

personal stories of how NCD’s work has benefited people with disabilities. NCD reached 

hundreds of thousands of people in FY 2013 through Council meetings, speaking 

engagements, panel discussions, roundtables, listening sessions, and media coverage 

of NCD’s policy work. NCD’s website received approximately 288,000 visitors in FY 

2013, which was an increase of roughly 139% over the previous fiscal year, and saw 

tens of thousands of downloads of its policy reports from domestic and international 

sources. The most popular policy publications, according to the number of report views, 

were The Current State of Health Care for People with Disabilities (FY08), with close to 

30,000 views in the last fiscal year alone; the Rocking the Cradle report (FY13) on the 

rights of parents with disabilities, with approximately 20,000 views in the last fiscal year; 

and NCD’s briefing paper “Bullying and Students with Disabilities,” with nearly 10,000 

views. NCD reaches several thousand people through its official agency list serve, its 

Facebook page, and Twitter accounts. NCD currently has the most followers of any 

disability focused federal agency on Facebook with over 6500 individuals. In addition, 

NCD staff and Council Members now appear regularly in national media to inform the 

public about disability-related news, reaching nearly 6 million viewers on one occasion 

alone on the topic of abuse of people with disabilities and yielding repeated requests on 
Management’s Discussion and Analysis

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topics including but not limited to parenting rights and subminimum wage. Below are 

some testimonials from individuals who engaged with NCD in FY 2013 at an event or 

responded to one of the agency’s FY 2012-13 policy reports:
Management’s Discussion and Analysis

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Performance Highlights: Goals, Measures & Activities

Table 3: Performance Highlights - Goals, Measures & Activities

Strategic Goal 

Components

Key 

Measures

Program Activity 

Highlights for FY 2013

Potential and Planned Activities 

for FY 2014 and 2015

Integrated Approach

Economic Self 

Sufficiency

Enhancing 

participation 

in 

employment, 

education, 

job training 

and benefit 

programs

Congressional briefing on 

NCD’s Rocking the Cradle

Secured prominent 

regional and national print 

and broadcast media 

coverage of NCD’s 

Rocking the Cradle report, 

which resulted in stories 

by Associated Press, 

NPR, Time Magazine and 

others, reaching millions 

of people

Hosted a congressional 

briefing on the Rocking 

the Cradle report, bringing 

the report’s primary 

professional stakeholders 

together to discuss the 

report’s findings and 

recommendations Utilizing 

NCD’s statutory authority, 

held a hearing on Capitol 

Hill regarding the progress 

of the Help America Vote 

Act (HAVA) and the ability 

of Americans with 

disabilities to cast private 

and independent ballots 

Convened a voting

roundtable of diverse 

disability community 

stakeholders for the 

benefit of the President’s 

Commission on Election 

Administration, the 

Members and staff of 

which attended the 

roundtable to listen and 

 Conference on the rights of 

parents with disabilities Plan a 

disability policy track at annual 

legislative summit of state 

legislator association to enhance 

state/federal policy coordination 

Continue regular speaking 

engagements, congressional 

briefings and hearings; agency 

website enhancements, including 

video and podcasts, ongoing 

social media development, and 

traditional media placements

Reports/Papers

Reforming Private Health 

Insurance to be consistent with 

the Goals of the ADA

Promoting Employment 

Reasonable Accommodations

Assessing Education Outcomes 

for Students with Disabilities

Safe at Home: The Next Chapter 

assisting veterans with disabilities 

transition to life at home

Experiences of Voters with 

Disabilities in the Election Cycle

Clearing the Backlog and 

Facilitating Benefits for America’s 

Veterans

NCD’s Annual Progress Report

Into and Around Town: an 

updated Transportation Report

Effective Communications for 

Independent 

Living

Improving 

access to 

long term 

services and 

support, 

health care, 

housing and 

transportatio

n Integration and 

Inclusion

Improving 

policies and 

practices to 

ensure that 

all children, 

youth, and 

adults with 

disabilities 

are valued 

by, and 

contribute 

to, their 

communities 

of choice 

and civil 

rights are 

protected
Management’s Discussion and Analysis

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Table 3: Performance Highlights - Goals, Measures & Activities

Strategic Goal 

Components

Key 

Measures

Program Activity 

Highlights for FY 2013

Potential and Planned Activities 

for FY 2014 and 2015

ask its participants 

questions

Held a congressional 

briefing for the five year 

anniversary of the ADA 

Amendments Act, 

featuring four members of 

Congress, and panelists 

from the disability, 

business, and civil rights 

communities 

Participated in the Council 

of State Government 

(CSG)’s “Deeper Learning 

Focus Group,” which 

culminated in a legislative 

briefing for CSG’s 

members and the release 

of a document titled, 

“Framework for State 

Policymakers: Ensure All 

Students are College- and 

Career-Ready”

Numerous conference

keynotes and panelist 

speaking; other speaking 

engagements

Reports / Papers:

Issued a trio of Medicaid 

reports: 

1) Medicaid Managed 

Care for People with 

Disabilities

2) A Medicaid Block Grant 

Program: Implications for 

People with Disabilities

3) The Case for Medicaid 

People with Disabilities Before, 

During and After Emergencies

Reforming the Social Security 

Administration’s Benefit System

Cross-Agency Collaboration

Working with other federal 

agencies and stakeholders in 

2015 to celebrate the 25th

Anniversary of the ADA
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Table 3: Performance Highlights - Goals, Measures & Activities

Strategic Goal 

Components

Key 

Measures

Program Activity 

Highlights for FY 2013

Potential and Planned Activities 

for FY 2014 and 2015

Self-Direction: A White 

Paper on Research, 

Practice, and Policy 

Opportunities

Issued Toward the Full 

Inclusion of People with 

Disabilities: Examining 

the Accessibility of 

Overseas Facilities and 

Programs Funded by 

the United States

Issued A Promising Start: 

Preliminary Analysis of 

Court Decisions Under the 

ADA Amendments Act

NCD has been improving on its measurement of outputs and outcomes. This includes 

more formal tracking of engagement activity at forums, website usage, social media, 

and collecting personal stories of how NCD’s work has impacted the lives of people with 

disabilities. NCD reached over 10,000 people in FY 2012 through Council meetings, 

lectures, panel discussions, forums, listening sessions and other events. NCD’s website 

received 206,869 visitors in FY 2012, and saw tens of thousands of downloads of its 

policy reports from domestic and international sources. NCD reaches several thousand 

people through its official agency list serve, its Facebook page, and Twitter accounts. 

In addition, NCD staff has appeared several times on national media programs to 

comment on disability-related news, reaching nearly 6 million viewers on one occasion 

on the topic of abuse of people with disabilities. Below are some testimonials from 

individuals who engaged with NCD in FY 2012 at one of our forums or was responding 

to one of our FY 2012 policy reports:
Management’s Discussion and Analysis

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Performance Highlights: Real Life Stories

Table 4: Performance Highlights - Real Life Stories

Program or Product Program Outcome and Accomplishment

Rocking the Cradle: 

Ensuring the Rights of 

Parents with Disabilities and 

Their Children report

A Massachusetts state legislator introduced legislation on the 

rights of parents with disabilities, modeled after the model 

legislation in NCD’s report. Legislators in Tennessee and Oregon 

have followed suit. 

In enthusiastic support of the Rocking the Cradle report, one 

member of the public – a parent with a disability herself –

attended a recent NCD quarterly meeting to meet the Council 

and staff and person and give them her personal thanks for the 

report. Following her attendance at the meeting, she wrote NCD 

an additional letter of appreciation, in which she stated, “I will do 

all I can to spread the word about the important work being 

done at NCD.”

Deinstitutionalization Toolkit 

for State and Local 

Policymakers

With regard to closing state institutions, one Kansas mom who 

had been the leader of the campaign opposing closing state 

institutions stated in a news article in 2010 that she felt she was 

wrong to oppose closure saying her son was the happiest he 

had ever been after leaving the state institution. She further told 

Kansas state lawmakers: “With the right supports anyone can 

be living in the community,” Bird told lawmakers. “If I were to die 

today, my only regret,” she said, “would be that I was not able to 

do this for my oldest son, who died at age 12 when he was 

living at KNI. That’s how wonderful Michael’s life has been.”

The mom passed away last year, content in knowing her son’s 

future was safe.

NCD policy hearing on 

Capitol Hill on the progress 

of the Help America Vote 

Act (HAVA) for people with 

disabilities’ right to cast a 

private, independent vote

NCD received testimony from ten disability voting experts, 

including Democratic Whip Steny Hoyer (D-MD) and former 

Senator Christopher Dodd (D-CT), the Government 

Accountability Office, EEOC Commissioner Chai Feldblum, and 

one self-advocate with a developmental disability who 

enthusiastically shared her emotional account of voting 

independently for the first time and how empowering an 

experience that was. 
Management’s Discussion and Analysis

19

Table 4: Performance Highlights - Real Life Stories

Program or Product Program Outcome and Accomplishment

NCD report on Subminimum 

Wage and Supported 

Employment for Workers 

with Disabilities

One year after its release, the report continues provide the 

bedrock foundation for continued engagement on the issue 

among advocates and for the news media. This included 

advocacy events coordinated by self-advocates across the 

nation, the source material for an in-depth feature story on 

NBC’s ‘Rock Center with Brian Williams’ in May and a follow-up 

article that included an interview with NCD’s Clyde Terry in 

August 2013.

NCD disability voting 

roundtable, hosted for the 

Presidential Commission on 

Election Administration

The Presidential Commission provided feedback to NCD that 

they were extremely grateful for the assistance in convening a 

cross-disability discussion about voting access concerns and 

found the content incredibly informative and helpful. Prior to 

NCD’s offer to convene the roundtable, the Presidential 

Commission had not heard from any groups from within the 

disability community.
Management’s Discussion and Analysis

20

Financial Highlights

NCD received a reduction in funding in FY 2013 due to Government-wide sequestration.

NCD implemented cost cutting measures in response. Year over year changes in 

financial position, results of operations and key budgetary accounts are summarized 

below.

Financial 

Line Item FY 2013 FY 2012 Dollar Change % Chg Explanation of Change

Total Assets $1,022,805 $944,607 78,198 8.3% Increase in Fund 

Balance with 

Treasury and 

Advances & 

Prepayments

Total 

Liabilities

$476,535 $699,918 (223,383) -31.9% Decrease in 

accounts payable

Net Position $546,270 $244,689 301,581 123.2% Increase in Fund 

Balance with 

Treasury and 

increase in 

accounts payable.

Net Cost of 

Operations

$2,844,883 $3,768,519 (923,636) -24.5% Decrease in 

expenditures

Outlays, net $3,025,360 $3,347,287 (321,927) -9.6% Timing of 

payments.

Appropriations $3,087,427 $3,257,831 (170,404) -5.2% Sequestration of 

5% from prior years

Obligations 

Incurred

$2,831,229 $3,346,600 (515,371) -15.3% Cost control due to 

decreased 

appropriations.

Undelivered 

Orders

$80,945 $95,864 (14,919) -15.5% Improved 

monitoring of long 

term contracts
Management’s Discussion and Analysis

21

Management is working to improve and refine NCD’s fiscal management in concert with 

GSA technical assistance and support services. Major efforts have been initiated in the 

prior two years to better define strategy in a strategic plan, streamline to strategic goals, 

develop more effective measures for strategic objectives, and commence the process for 

better allocation of costs to program activities to better illustrate alignment of costs and 

goals. Combined with initial efforts to improve internal controls over contract monitoring 

and financial reporting, management believes NCD has improved economy and efficiency 

as well as reliability and usefulness of financial reporting.

Discussion and Analysis of Financial Statements

NCD prepares financial statements in conformity with accounting principles generally 

accepted in the United States for Federal Government entities. The Federal Accounting 

Standards Advisory Board has established a framework of integrated budgetary and 

proprietary reporting. Budgetary reporting addresses appropriations, budget authority, 

budgetary resources, obligations, undelivered orders and delivered orders. Proprietary 

reporting is traditional financial reporting of assets, liabilities, net position, and net cost.

OMB Circular A-136, Financial Reporting Requirements, defines the form and content of 

financial statements, accompanying notes and supplemental information.

NCD’s financial statements are subject to independent audit to ensure they are free from 

material misstatement. NCD has received a qualified audit opinion for FY 2013.

Balance Sheet

The Balance Sheet presents the total amounts available for use by the Council (assets) 

against the amounts owed (liabilities) and amounts that comprise the difference (net 

position). Balance sheets are a snapshot in time (fiscal year end) to an entity’s present 

financial position.

NCD’s assets (items with future value) are virtually all Fund Balance with Treasury

(FBWT), which represents NCD’s cash balances with the U.S. Treasury from which the 

Council is authorized to make expenditures and pay liabilities from operational activities.

FBWT is primarily increased by receiving appropriations and primarily decreased by 

making expenditures or cancellations of expired appropriations. NCD’s remaining asset 

amounts consist of trivial accounts receivable and a loan receivable from a retired 

employee. While NCD owns computer equipment, furniture and leasehold 

improvements, these items have been fully depreciated or amortized, thus do not 

appear on the balance sheet as property, plant and equipment.

NCD’s liabilities (what entity owes) are entirely current liabilities (due within one year) and 

primarily with the public ($476,535) as opposed to intragovernmental ($14,748). At fiscal 

year ended September 30, 2013, accounts payable with the public were $340,454, as 

opposed to $556,710. This is primarily a result of improved contract management and 
Management’s Discussion and Analysis

22

accrual process, as well as the recognition of costs in the current year of multiyear 

contract costs obligated in prior years.

NCD’s net position is a combination of unexpended appropriation and cumulative 

results of operations. Net position decreased significantly due to the decrease in Fund 

Balance with Treasury and increase in accounts payable. Management does not believe 

this change is a meaningful financial measure, and is more reflective of timing 

differences between years, as unused prior year appropriations expire, and contracting 

cycles shorten.

Statement of Net Cost

The Statement of Net Cost presents the annual cost of operating the Council’s 

programs on an accrual basis, which means costs are recognized when incurred, not 

when paid. In contrast, outlays are cash basis costs recognized when paid. The major 

difference between accrual and cash on NCD’s books are year-end accounts payable 

accruals and imputed financing costs for employee benefits. Gross costs less any 

earned revenue is used to arrive at the total net cost of operations. NCD has no earned 

revenue. NCD’s net costs were $2,864,127 for FY 2013, down 23.9% from FY 2012’s 

$3,768,519.

Major Costs in FY 2013 vs. FY 2012

Cost 

Category FY 2013 FY 2012 Dollar Change % Chg Explanation of Change

Personnel 

Costs

$1,675,326 $1,835,545 (160,219) -8.7% Vacant Positions

Contractual 

Services

$658,839 $699,918 (41,079) -5.9% Decrease in 

contractual services 

Travel $152,687 $197,586 (44,899) -22.7% Decrease in 

engagement 

activities

Rent $251,860 $252,132 272 0.1% N/A

Personnel costs consistently account for over 50% of NCD’s net costs of operations 

year over year since the agency is primarily delivering engagement and policy 

development services, which involve Council members and staff with specialized skills 

in disability policy. Contractual services consist primarily of private sector research 

contracts and intergovernmental costs. Rent is for the agency’s headquarters in 

Washington, DC, which houses 9 full time equivalent employees. Travel is related to 
Management’s Discussion and Analysis

23

Council meetings and engagement forums. NCD has budgeted for increases in travel 

and contractual services in FY 2014.

NCD’s administrative overhead costs consist primarily of intergovernmental costs with 

federal agency service providers that support independent agencies, leading to cost 

savings for the agency and the federal government overall. The Council uses the 

General Services Administration (GSA) to provide accounting, payroll, human 

resources, facilities management, and legal assistance. Finally, the Government 

Printing Office provides printing services to NCD. The services provided by these 

agencies consume about 10 percent of NCD’s total budget. 

Statement of Changes in Net Position

This statement presents in greater detail the net position section of the Balance Sheet, 

which includes Cumulative Results of Operations and Unexpended Appropriations. The 

statement identifies the activity that caused the net position to change during the 

reporting period. The total net position increased by approximately $301,765 for 

reasons explained above.

Statement of Budgetary Resources

The Statement of Budgetary Resources provides information on the source and status of 

budgetary resources made available to the NCD during the reporting period. It presents 

the relationship between budget authority and budget outlays, as well as the reconciliation 

of obligations to total outlays. Total Budgetary Resources and Status of Budgetary 

Resources for FY 2013 was $3,368,774 , a decrease of $225,028 or 6.2%. The decrease 

results from decreased appropriations due to government-wide sequestration and the 

expiration of prior year unused appropriations.

Limitations of the Financial Statements

The principal financial statements have been prepared to report the financial position 

and results of operations of the Council, pursuant to the requirements of 31 U.S.C. 3515 

(b). While the statements have been prepared from the books and records of the 

Council in accordance with U.S. generally accepted accounting principles (GAAP) for 

federal entities and the formats prescribed by OMB, the statements are in addition to 

the financial reports used to monitor and control budgetary resources, which are 

prepared from the same books and records. The statements should be read with the 

realization that they are for a component of the U.S. Government, a sovereign entity.

NCD has a unique mission among federal agencies because it is charged with reviewing 

all programs and policies across the federal government, not merely one aspect of policy 

affecting people with disabilities. While the Council’s independent status allows NCD to 

provide an unbiased overview of many of those agency services and programs, it is the 

nature of NCD’s overview and recommendations that make NCD’s work so important in 
Management’s Discussion and Analysis

24

the eyes of those who eventually benefit when those recommendations are acted upon by 

those who have the power to do so.

The Council produces information critical to improving the delivery of programs to 

individuals with disabilities. The Council’s series of reports and papers study a broad 

array of disability-related laws and programs and has resulted in or documented the 

need for ongoing changes to many of the services needed to sustain the health and 

independence of many of our citizens with disabilities. These reports can be found at 

http://www.ncd.gov/publications. In addition, as related below, NCD has been given 

substantial responsibilities for disability-related issues in the nationwide effort to improve 

emergency preparedness and enhance homeland security.

Management Assurances and Analysis of Controls, Systems and 

Legal Compliance

Implementation of the Federal Managers’ Financial Integrity Act (FMFIA) at NCD

Federal agency managers have a fundamental responsibility to develop and maintain 

effective internal controls. Effective internal controls help to ensure that programs are 

managed with integrity and resources are used efficiently and effectively through three 

objectives: effective and efficient operations, reliable financial reporting, and compliance 

with laws and regulations. The safeguarding of assets is a subcomponent of each 

objective.

NCD management is responsible for establishing and maintaining effective internal 

control and financial management systems that meet the objectives of the Federal 

Managers’ Financial Integrity Act (FMFIA) of 1982 as implemented by OMB Circular A123, revised, Management’s Responsibility for Internal Control. Circular A-12 focuses 

on providing agencies with a framework for assessing and managing risks more 

strategically and effectively. The Circular contains multiple appendices that address, at 

a more detailed level, one or more of the objectives of effective internal control.

Appendix A provides a methodology for agency management to assess, document, test 

and report on internal controls over financial reporting.

Appendix B requires agencies to maintain internal controls that reduce the risk of fraud, 

waste, and error in Government charge card programs. Appendix C implements the 

requirements of the Improper Payments Information Act, as amended by the Improper 

Payments Elimination and Recovery Act, which includes measurement, reporting, 

recovery and remediation. As a small, independent agency covered by the 

Accountability of Tax Dollars Act of 2002 as opposed to the CFO Act, NCD is exempt 

from many formal reporting requirements in Circular A-123.
Management’s Discussion and Analysis

25

The FMFIA requires federal agencies to provide an annual statement of assurance 

regarding management controls and financial systems. The objectives of NCD’s internal 

controls are to provide reasonable assurance that:

• Obligations and costs are in compliance with applicable laws and budget 

restrictions;

• Assets are safeguarded against waste, loss, unauthorized use, or 

misappropriation;

• Revenues and expenditures applicable to NCD operations are properly recorded 

and accounted for to permit the preparation of accounts and reliable to financial 

and statistical reports, and to maintain accountability over assets; and

• All programs are efficiently and effectively carried out in accordance with 

applicable laws and management policy.

Section 2 of the FMFIA requires federal agencies to report, on the basis of annual 

assessments, any material weaknesses that have been identified in connection with 

their internal and administrative controls. On July 29, 2011, NCD completed an updated 

risk assessment and internal control review to address matters communicated to 

management by auditors.

This resulted in an unqualified assurance that NCD’s systems and management 

controls comply with the requirements of the FMFIA. During FY 2012, the Council’s 

Audit and Finance Committee and NCD management focused efforts on streamlining 

financial processes and monitoring the operating effectiveness of key controls, such as 

monthly reconciliations of agency data to service provider data, quarterly analysis of 

financial statements, monitoring contracts and undelivered order status of open 

obligations, and year-end search for unrecorded liabilities and preparing year-end 

accruals. Accordingly, NCD’s assurance on its internal controls was unqualified based 

on the risk assessments and reviews and consideration of internal analyses, 

reconciliations and the findings identified in the Independent Auditor’s Report on 

Internal Control Over Financial Reporting, dated November 15, 2012. See the Financial 

Section for the full independent auditor’s report.

Section 4 of the FMFIA requires that agencies' financial management systems controls 

be evaluated annually. NCD relies upon GSA for the evaluation of its financial 

management systems for the fiscal year ending September 30, 2013 in accordance with 

the FMFIA and OMB Circular No. A-127, Financial Management Systems, as 

applicable. NCD uses GSA as its accounting service provider. GSA’s financial 

management systems conform to the principles and standards required under Section 4 

of the FMFIA. Accordingly, NCD is able to provide reasonable assurance under Section 

4 of the FMFIA. 

Legal Compliance
Management’s Discussion and Analysis

26

Federal agencies are required to comply with a wide range of laws and regulations, 

including appropriations, employment, ethics, health and safety, and others.

Responsibility for compliance primarily results with agency management. Compliance is 

addressed as part of agency financial statement audits. Agency auditors test for 

compliance with selected laws and regulations related to financial reporting. The FY 

2012 audit did not report any instances of non-compliance. Management comments on 

compliance efforts with specific laws and regulations are below.

Federal Financial Management Improvement Act (FFMIA)

Agencies subject to the Accountability of Tax Dollars Act (ATDA) of 2002 are not 

subject to the requirements of FFMIA. Accordingly, NCD is not subject to the 

requirements of FFMIA. However, OMB A-136, revised, requires NCD to be in 

compliance with FFMIA. NCD uses GSA as its accounting service provider. GSA’s 

financial management systems conform with the principles and standards required 

under OMB A-136 and FFMIA.

Improper Payments Elimination and Recovery Act 

The Improper Payments Information Act (IPIA—P.L. 107-300) requires federal agencies 

to identify and report on significant payment programs that are susceptible to improper 

payments. The Act defines significant improper payments as those within a single 

payment program that exceed both 2.5 percent of that program’s annual amounts paid 

and $10 million annually. 

The Improper Payments Elimination and Recovery Act of 2010 (IPERA), enacted on 

July 22, 2010, requires the development of policies and procedures for the prevention 

and detection of improper payments in the federal government. The Act expands on the 

Improper Payments Information Act of 2002 (IPIA), which requires an initial assessment 

to identify those programs that are susceptible to significant risk of improper payments. 

“Significant,” as defined in the Act, means that in the preceding fiscal year, improper 

payments in the program or activity may have exceeded $10,000,000 of all program or 

activity payments made during that fiscal year reported and 2.5 percent of program 

outlays; or $100,000,000.

NCD does not have any programs where significant erroneous payments have occurred 

within the agency. The Council will continue to review its financial operations on an 

annual basis to determine if any significant erroneous payments exist.

Prompt Payment Act

The Prompt Payment Act requires federal agencies to make timely payments to 

vendors, including any interest penalties for late invoice payments. In FY 2013 and FY 
Management’s Discussion and Analysis

27

2012, the NCD paid an immaterial amount in interest penalties on invoices processed. 

However, in the Regis and Associates final report, NCD’s auditors found that:

“The Council does not appear to comply with the Prompt Payment Act. During our 

audit, we noted several instances where payment to contractors and vendors were not 

made within the required 30-day stipulation.” 

NCD is working to correct deficiencies in financial processes and controls to ensure that 

all vendors are paid in accordance with the Prompt Payment Act.

Chairman’s Assurance on Internal Control

The following pages contain NCD Chairman’s Statement of Assurance on Internal 

Control.
 National Council on Disability

An independent federal agency making recommendations to the President and Congress 

to enhance the quality of life for all Americans with disabilities and their families.

28

Chairman’s Statement of Assurance 

The Council's management is responsible for establishing and maintaining effective internal control and 

financial management systems that meet the objectives of the Federal Managers' Financial Integrity Act 

(FMFIA). Based on the findings of the FY2013 Audit, the Council is taking aggressive steps in ensuring 

that its internal control over the effectiveness and efficiency of operations and compliance with applicable 

laws and regulations are in place and working effectively moving forward. We understand the need for 

consistent vigilance in monitoring internal control effectiveness given noted deficiencies in this area. 

Operating with a small staff and under limited resources, the Council relied highly on the effectiveness 

and good-faith efforts of a certain staff person and as a result of the poor outcome of that dependency on 

the individual we are developing controls and procedures to eliminate single points of failure and to 

ensure that the operations will run smoothly regardless of who fills a particular position, or whether a 

particular position is filled at all.

As the Council closes its FY2013 books, as described in its response to the auditor’s findings, we are 

developing more accurate controls to identify failures or deficiencies in real-time to ensure that corrective 

measures would be taken while they still can still be remedied. The Council's goal is to become a model 

small independent agency with regard to financial procedures and controls. ln FY2014, the Council 

intends to strengthen its financial oversight including more frequent reporting to the NCD Audit & Finance 

Committee, distilling its financial and administrative policies into user-friendly policies that the Council and 

its staff will be trained in, connecting issues in its payment system to ensure efficient and accurate turn 

around of invoices and reimbursements, and maintaining an annual IT and fixed assets inventory.

As part of its path forward, NCD will determine its organizational structure with respect to its

financial staff to ensure that its internal control environment and financial management systems meet the 

objectives of FMFIA. NCD has finalized a financial procedure manual in FY 2013.The Council intends to 

soon fill a financial analyst position and will utilize a contractor in the transition to ensure consistency and 

compliance of operations.

Additionally, all staff share a role in maintaining the Council's operational infrastructure. This approach has 

led to necessary adjustments being made to segregate duties among the management team and key 

members of the Audit and Finance Committee. Additionally, the

Audit and Finance Committee will be tasked with the oversight of increased transparency and accountability 

of the financial management of the agency. 

Based on our assessment, we have determined that the Council's financial systems conform to applicable 

financial systems requirements.

Jeff Rosen. | Chairperson | February 15, 2014
Performance Section

29

The Performance Section presents the agency’s performance in Fiscal Year 2013, the 

first year of its five-year Strategic Plan, which can be read in its entirety at: 

http://www.ncd.gov/Accountability/strategicplan/

This section also includes a discussion of strategies and factors affecting performance, 

the relationship of outputs to outcomes, a summary of methods used to verify and 

validate performance data, and performance results by strategic goal and strategic 

objectives.

Performance Framework

NCD’s performance framework consists of a mission statement supported by a single, 

overarching strategic goal supported by two strategic objectives that advances NCD’s 

statutory mandate. The two supporting objectives and their corresponding strategies 

indicate how NCD will achieve its goal and provide an approach for measuring NCD’s 

progress and success. The strategic framework in the table below is followed by a 

detailed view of each objective and its corresponding strategies, key outcomes, means 

and key activities, and performance measures follows the overview.

Mission

Promote equality of opportunity, full participation, independent living 

and economic self-sufficiency of people with disabilities of all ages 

and backgrounds by providing advice, analysis and 

recommendations on disability policy to the President, congress 

and other federal agencies.

Vision

NCD leads by facilitating, articulating and promoting inclusion and 

empowerment of individuals with disabilities to live, learn and earn 

based on informed choices.

Strategic 

Goal

Advance the goals of the Americans with Disabilities Act by 

promoting policies, programs, practices, and procedures that 

guarantee equal opportunity and provide for economic selfsufficiency, independent living, and inclusion and integration

into all aspects of society for individuals with disabilities.

Strategic 

Objectives

Engagement - Engage stakeholders in order to assess concerns 

and priorities and build a network of NCD partners.

Policy Development & Collaboration – Address stakeholder 

concerns and priorities by advancing specific, practical, policy 

solutions and encouraging collaboration.
Performance Section

30

Stakeholders

All Americans with disabilities – a population diversified by 

geography, age, race, gender, ethnicity, sexual orientation, 

income, education, political party, type of disability, and other 

affiliations and identities.

Policymakers and decision makers – including the President 

and all federal agencies, Congress, state, tribal, and local 

governments and communities – who create and implement 

federal policies and programs that affect people with disabilities.

Groups and organizations concerned with people with 

disabilities.

Families and support systems of people with disabilities, 

including parents and guardians. 

Society at large – employers, educators, manufacturers, 

service providers, engineers, designers, entertainers, and other 

individuals and organizations who influence inclusion and 

participation of Americans with disabilities.

NCD has developed specific strategies and measurements of outcomes, means and 

key activities for its two strategic objectives.

Strategic 

Objective #1

Engagement – Engage stakeholders in order to assess concerns and 

priorities and build a network of NCD partners.

Overview: NCD cannot fulfill its mission without regular, meaningful engagement with its 

stakeholders. NCD’s authorizing statute mandates this valued interaction. More importantly, 

the value of policy evaluation and recommendations should be measured by whether they 

are consistent with the needs, challenges, and aspirations of NCD’s stakeholders. By 

facilitating meaningful communication with stakeholders, Objective 1 (Engagement) 

supports the agency’s strategic goal through identification of systems of success as well as 

shortfalls, toward which NCD can direct its attention in the formulation of policy solutions.

Over the last several years, NCD has closely consulted stakeholders as key advisors in 

shaping NCD’s policy endeavors. NCD gathers information through a variety of means: 

public testimony, national and regional forums, electronic mail or letters from the public, 

public consultations via the Internet, research reports, conferences and meetings of 

stakeholder groups, federal workgroups, and meetings with members of Congress or their 

staff. In addition, NCD has also pursued creation of public-private working groups and/or 

federal advisory committees on priority issues to ensure NCD is both in continual contact with 

stakeholders and to act nimbly and efficiently when responding to identified need for action.
Performance Section

31

Strategy 1A – Create and maintain regular opportunities to receive direct input 

from community stakeholders: Coordinated collaboratively by the General Counsel 

and Policy Directorate and Legislative Affairs and Outreach Directorate, NCD will 

develop and implement an annual outreach plan to provide meaningful venues for direct 

contact with disability community stakeholders on a regular basis.

Strategy 1B – Cultivate trusted relationships with Congress: Coordinated 

collaboratively by the General Counsel and Policy Directorate and Legislative Affairs 

and Outreach Directorate, NCD will develop and implement a program for meaningful 

NCD engagement with Congressional Members and their staff and Committee 

leadership and their staff.

Strategy 1C – Establish and cultivate trusted relationships with state, local, and 

tribal governments and other entities: Coordinated collaboratively by the Legislative 

Affairs and Outreach Directorate and the General Counsel and Policy Directorate, NCD 

will develop and implement a program for meaningful NCD engagement with leaders of 

state, local, and tribal governments and other entities. 

Strategy 1D – Brand NCD as a principal national voice of the disability 

community: Coordinated by the Legislative Affairs and Outreach Directorate, NCD will 

develop and implement a communications plan to develop messages and modes of 

delivery designed to enhance the understanding of NCD’s mission, activities, and 

accomplishments with its stakeholders.

Strategic 

Objective #2

Policy Development & Collaboration – Address stakeholder 

concerns and priorities by advancing specific, practice policy solutions 

and encouraging collaboration.

Overview: Using the information NCD has gained from its engagement activities with its 

stakeholders, as outlined in Objective 1 (Engagement) above, NCD must identify and 

prioritize opportunities to add value and make a difference in peoples’ lives. NCD does 

not have rulemaking or enforcement authority. Rather, NCD serves as an independent 

advisor on disability matters to the President and Congress. This role is essential to 

assure the Federal Government is well-informed and qualified to perform its duties and 

effectively serve the public, including individuals with disabilities. In addition to meeting 

with stakeholders, NCD advocates for equality of opportunity, full participation, 

independent living, and economic self-sufficiency for people with disabilities of all ages 

and backgrounds by continually reviewing disability programs and policies and providing 

analysis and recommendations on disability policy to the President, Congress, and 

other federal agencies. 
Performance Section

32

NCD’s analysis and recommendations have led to enactment of important laws and 

other improvements to the programs and services provided by the many federal 

agencies that serve the disability community. Yet people with disabilities continue to 

face personal, social, and economic disadvantages and barriers that prevent access to 

the same opportunities as Americans without disabilities. Therefore, NCD will increase 

emphasis on providing recommendations and looking for opportunities for their 

implementation.

NCD optimizes opportunities to put to practical use its vast amount of acquired 

knowledge through years of intensive research activities. This research is reflected in 

NCD’s reports, papers, and briefs which each contain analysis and recommendations 

for actions at all levels of government. These reports and papers are available on 

NCD’s agency website at www.ncd.gov. 

Objective 2 (Policy Development & Collaboration) supports the activities of identifying and 

formulating solutions to emerging and existing challenges; providing tools to facilitate effective 

implementation of policy solutions; and engaging and influencing current debates, all of which 

directly support the strategic goal. Further, Objective 2 supports the strategic goal by 

leveraging NCD’s resources through coordination and collaboration to amplify its impact 

relative to the agency’s size.

Strategy 2A – Cultivate trusted relationships with other federal agencies and look 

for opportunities to coordinate and work collaboratively: Coordinated collaboratively 

by the General Counsel and Policy Directorate and Legislative Affairs and Outreach 

Directorate, NCD will develop and implement a program for meaningful NCD engagement 

with other federal agencies. 

Strategy 2B – Work closely with and enlist the support of stakeholders to develop 

and advance policy responses to priority issues: Coordinated collaboratively by the 

General Counsel and Policy Directorate and Legislative Affairs and Outreach 

Directorate, NCD will develop and implement a program to partner with a cross-section 

of stakeholders to consider priority policy issues and strategic activities to address 

them, and to support successful implementation of federal legislation that benefits 

people with disabilities. 

Strategy 2C – Produce materials that have practical utility for federal, state, tribal 

and local stakeholders regarding successful implementation of federal policies: 

Coordinated collaboratively by the General Counsel and Policy Directorate and 

Legislative Affairs and Outreach Directorate, NCD will produce and disseminate shorter, 

timely policy briefs, white papers, “policy toolkits,” and other materials. 

Strategy 2D - Update NCD’s annual progress report to be more responsive to 

Congress and the Administration: Coordinated collaboratively by the General 

Counsel and Policy Directorate and Legislative Affairs and Outreach Directorate, NCD 
Performance Section

33

will develop a new model for its statutorily mandated annual progress report that will 

contain a significant discussion of the overall state of the disability community and the 

policies affecting it based upon information NCD acquires through use of strategies 

envisioned throughout this plan.

Performance Measurement Challenges

NCD is a micro-agency that advises the President and Congress on disability policy by 

engaging with the community, setting policy priorities and working in such areas, 

developing policy recommendations and promoting progress and systems change on 

issues that affect the disability community. With a budget of only $3.08 million, 15 parttime Council Members, and 9 full-time staff, NCD has adopted a strategy of working in 

conjunction with a wide range of stakeholders – including people with disabilities, 

federal, state and local agencies, elected officials and their staff, universities, and a 

diverse group of non-profit organizations and individual disability policy experts and 

advocates – to advance our mission, goals and objectives.

NCD’s strategic objectives of engagement and policy development can be quantifiably 

measured by our raw data and enumerating the number of people that attend our 

forums, regularly engage with us via social media, download and read our policy 

reports, and adopt or promote our recommendations. However, measuring NCD’s 

impact on its strategic goal of guaranteeing equal opportunity and providing for 

economic self-sufficiency, independent living, and inclusion and integration into all 

aspects of society for individuals with disabilities is far more subjective since these are 

systemic endeavors in which NCD is part of a community of agencies, advocates, and 

others seeking to secure such outcomes. 

Accordingly, NCD’s analysis of the relationships of program outputs (such as forums and 

reports) to tangible outcomes impacting our stakeholders requires a multi-year time 

horizon. Measuring NCD’s impact on its strategic goal of guaranteeing equal opportunity 

and providing for economic self-sufficiency, independent living, and inclusion and 

integration into all aspects of society for individuals with disabilities is challenging since 

these are large-scale, long-term endeavors.

Accordingly and as previously mentioned, as we evaluate performance measurements, 

key measures, targets and outcomes, we ask:

• Has NCD identified critical needs where our engagement with stakeholders and 

policy development and collaboration can advance existing initiatives?

• Can NCD be a thought leader, performing important research and analysis on 

critical topics?

• Can NCD provide practical, timely policy recommendations and consultations to 

Members of Congress and the Executive Branch? 
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NCD is continually working to identify better mechanisms for measuring outcomes and 

reporting achievements. This includes increased efforts to gather and report personal 

stories of where our engagement or policy initiatives provided a spark or tipping point 

toward improving the lives of people with disabilities. The Performance Highlights 

section of the Management’s Discussion and Analysis presents specific comments from 

impacted stakeholders and a case study of how engagement and policy converged into 

positive outcomes on the issue of parenting rights of people with disabilities.

Program Activities and Performance Results by Strategic Objectives

As indicated above, NCD has one overarching strategic goal and two strategic 

objectives to advance the agencies mission, strategic goal and statutory responsibilities.

Below is a description of key policy and program accomplishments in FY 2012 and 

planned future activities.

Objective 1: Engagement

NCD is an advisory agency that seeks to provide timely, valuable counsel to the 

President, Congress and other federal agencies regarding policies, programs, practices, 

and procedures that affect people with disabilities. NCD views its diverse stakeholders –

people with disabilities of all ages and types of disability; groups and organizations 

concerned with people with disabilities; policymakers; and families and support system 

of people with disabilities – as key informants to the development of NCD’s policy 

recommendations. Accordingly, NCD prioritizes creating opportunities to hear from its 

stakeholders through a variety of means: regional policy forums; public testimony 

received at meetings in person or by telephone; letters of concern from the public; 

participation at conferences and meetings of stakeholder groups; congressional policy 

briefings; and listening sessions and town halls the agency hosts throughout the year.

In addition to these opportunities, NCD’s legislation mandates a minimum of four public 

meetings annually. Some of NCD’s most important activities occur during the quarterly 

meetings. Public comments, full-length presentations by stakeholders, and opportunities 

to meet with additional stakeholders in the disability community who attend the meetings 

afford NCD the opportunity to identify needs as well as promising practices in 

communities and regions across the country. NCD also has a history of playing a 

convening role, advancing policy discussions in the process, by bringing diverse 

stakeholders together that may not otherwise have policy discussions with one another.

In FY2013, NCD hosted several such gatherings on the topics stakeholders have 

indicated they want to hear the most about and that build on our previous work: 

• NCD Stakeholder Meeting regarding the Department of Labor (DOL) 

Companionship Exemption: On January 16, OMB accepted the draft final rule 

for review from the Department of Labor regarding the companionship 

exemption. Nonetheless, on January 30, NCD convened a meeting with relevant 

stakeholders to discuss their ongoing concerns with the proposed rule’s negative 
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impact on people with disabilities. Soon after, NCD met with OMB to discuss 

DOL’s proposed changes to the companionship exemption. Representatives from 

several national disability advocacy organizations also were in attendance and 

expressed significant concerns related to consumer-directed programs and 

likelihood of increased institutionalization if the rules are implemented. On March 

19, NCD sent OMB a follow-up letter, urging DOL to further engage in dialogue 

with the disability and aging communities to address their concerns. In August, 

DOL hosted a listening session to reengage the community regarding their 

concerns.

• NCD Disability Roundtable with the Presidential Commission on Election 

Administration: On July 11, 2013, NCD hosted a roundtable for the benefit of the 

Presidential Commission on Election Administration (PCEA), inviting 

representatives from across the disability community to present testimony to the 

PCEA Commissioners and staff about the experiences of voters with a variety of 

disabilities, and answer the PCEA’s questions. NCD continues to act as a liaison 

between the PCEA and the disability community as the PCEA works to compile 

data in order to write its report to the President.

• NCD Roundtable on Implementation of the United Nations Convention on 

the Rights of People with Disabilities: On June 18, 2013, NCD conducted a 

roundtable with representatives from the Consortium on Citizens with Disabilities 

(CCD); the Disability Rights Education and Defense Fund (DREDF); the United 

States International Council on Disabilities (USICD); and the State Department. 

• Webinar: “Navigating NCD’s Deinstitutionalization Toolkit” to the Great 

Lakes Americans with Disabilities Act Center: On January 7, 2013, NCD 

conducted a webinar with over 50 P&As, DD Councils and advocacy groups from 

across the United States detailing the tools available to assist people with 

disabilities as they move out of institutions and into the community. Slides from 

the toolkit were presented and provided to participants in PowerPoint format with 

the usual accessibility accommodations. 

• NCD Collaboration with the White House for the 23rd Anniversary of the 

ADA: On July 25, 2013, NCD co-hosted with the White House and ADA 

celebration honoring eight next generation Champions of Change and helping lay 

out a discussion of future directions in public policy. NCD coordinated speakers 

including Valerie Jarrett and newly confirmed Secretary of Labor Tom Perez and 

worked with the Office of Public Engagement to select, vet, invite, and award the 

champions in front of a room of 163 key leaders, stakeholders, policymakers, and 

advocates. 

In addition to congressional and intergovernmental engagement, NCD also continued to 

actively solicits and collects public comments as a regular part of its quarterly meetings. 
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In addition, with every meeting, NCD also receives numerous written comments in 

advance, in addition to the oral remarks made. Comments during NCD’s four quarterly 

meeting in FY 2013 were focused on workplace accommodations, the U.N Convention 

on the Rights of Persons with Disabilities, futility care policies of states and hospitals, 

deinstitutionalization, access to service for children with complex medical needs, and 

special education policy.

Conferences and Other Speaking Engagements – NCD receives numerous 

invitations each year to speak at state, national, and international conferences and other 

events and makes good use of the opportunities it accepts by sharing its latest policy 

findings and recommendations with hundreds of attendees at each event. In FY 2013, 

NCD participated in over 50 outreach events increasing last year’s total by 1/3rd with our 

media exposure more than doubling last year’s totals. Events included interviews, opeds, presentations at national and state level conferences/meetings, webinars and 

testimony. These extend beyond our report releases and hearings and often lead us to 

new work and exciting new working relationships. Highlights included: 

• A NCD staff member was invited to speak on our parenting report at various 

conferences including the University of Minnesota and the Child Welfare League 

of America. NCD also submitted an article for Disability, Pregnancy & 

Parenthood International based on the report. 

• NCD Council Members and staff participated in a series of meetings with the 

Council of State Governments and the National Conference of State 

Legislatures to discuss opportunities to collaborate on issues tied to managed 

care and parenting rights. 

• NCD staff moderated a panel discussion entitled “Towards a disability-inclusive 

post-2015 development framework” at United Nations headquarters in New York 

City. 

• NCD Council Members began holding meetings with representatives of 

Facebook, Twitter, Google, and Apple to discuss collaboration opportunities to 

encourage greater accessibility of social media products and help build the 

disability community user presence.

• NCD members met with the Department of Justice, the National Economic 

Council and representatives of the Domestic Policy Council discuss NCD’s work 

on subminimum wage.

• NCD Council Members maintained ongoing collaboration with the Vice 

President’s Office in response to the Newtown school shooting about youth with 

mental health disabilities. NCD presented to the Kansas legislature about 

managed care.

Through these engagements activities NCD reached over 10,000 people.
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Congressional and Federal Agency Engagement – Throughout FY 2013 NCD 

continued to cultivate and deepen relationships with staff of congressional offices as a 

trusted advisor in both Member and committee offices and federal agencies. NCD 

responds to calls and letters from individual congressional offices throughout each year 

that request disability-related information regarding constituents’ needs. In addition to 

being a resource for Members’ district offices, NCD strives to provide timely policy 

information and recommendations to legislative offices and federal agencies. NCD staff 

provided electronic copies of its policy reports and papers to legislative directors in the 

House and Senate and appropriate federal agencies throughout the past fiscal year. In 

addition, NCD staff has offered policy briefings on its reports’ major findings and 

recommendations, as well, utilizing teleconferences and in-person Hill and agency 

briefing formats. Some highlights of NCD’s FY13 congressional activity include the 

following:

• Congressional Briefing on the Rocking the Cradle report: On April 17, 2013, 

NCD hosted a robust discussion on the challenges facing parents with disabilities. 

Estimates indicate that 6.1 million children in the U.S. have parents with 

disabilities – nearly 1 in 10. However, twenty-two years after the passage of the 

Americans with Disabilities Act (ADA), parents with disabilities continue to be the 

only distinct community who has to fight to retain and sometimes gain custody of 

their own children without cause. Their fundamental right to parent is often 

impinged by disparate treatment they receive in the court and service systems. 

Active participants and supporters of this hearing included the American 

Psychological Association, the National Association of Social Workers and the 

Child Welfare League of America.

• NCD Congressional Hearing on the Help America Vote Act (HAVA): On April 

23, 2013, NCD, utilizing its statutory authority to receive testimony (Rehabilitation 

Act of 1973 (29 U.S.C. 780 et seq.)), held a policy forum / hearing on Capitol Hill 

on the topic of voting access for people with disabilities. In anticipation of the NCD 

report on voting access, the forum focused on the Help America Vote Act (HAVA) 

and the state of voting accessibility today. Through the invited testimony of 

Members of Congress, representatives from federal agencies and the 

Administration, and the civil rights disability communities, as well as the questions 

asked of the witnesses by the NCD Council Members, the forum explored what 

HAVA was intended to do, what it has accomplished, what work remains, and 

what policy measures would assist in addressing the persistent barriers 

experienced by people with disabilities when attempting to exercise their 

fundamental and cherished right to vote.

• NCD Congressional Briefing on the Impact of the ADA Amendments Act, 

Five Years Later: On July 23, 2013, NCD hosted a policy briefing and report 

release on the impact of the ADA Amendments Act, based upon a preliminary 

examination of the case law to date. NCD opened the briefing up with a panel of 

the disability, civil rights, congressional, and business community leaders 
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responsible for negotiating the legislative compromise that resulted in the 

unanimous approval of the legislation in both chambers. Congressional speakers 

included Reps. Jim Sensenbrenner (R-WI), Jerrold Nadler (D-NY), and Jim 

Langevin (D-RI), and Sen. Tom Harkin (D-IA).

• Participation at a Congressional Briefing on Community Integration: An NCD 

Council Member joined as a panelist two well-attended policy briefings (one on 

the House-side and one on the Senate-side) titled, “The Americans with 

Disabilities Act and Community Integration,” hosted by the Consortium for Citizens 

with Disabilities and the Bipartisan Disabilities Caucus.

With a new Chair and Executive Director coming on board this year, outreach to our 

partner agencies has taken on a new level of priority. We have met with colleagues at 

over 67 agencies, subagencies, and Hill offices to reengage in partnership 

conversations and zero in on key policy foci of NCD, including the Office of Federal 

Contracts and Compliance Programs (Section 503 regulations), the Pentagon (ADA 

compliance and international installations), USDA (farm bill & rural housing issues), the 

Office of the Vice President (mental health & gun control) as well as our traditional 

partners of the Departments of Education, Health and Human Services, and the Social 

Security Administration. 

In understanding the critical role NCD plays in bringing the voices of all Americans with 

Disabilities to the White House and the Congress, NCD has worked to build 

relationships with non-disability diversity organizations including but not limited to the 

Leadership Conference for Civil and Human Rights, the Human Rights Campaign, the 

Asian American Justice Coalition, and the National Council of La Raza. The Council 

also took the lead with the White House on organizing cross-agency events surrounding 

the 23rd Anniversary of the Americans with Disabilities Act. 

As referenced later in this narrative, NCD continued its dedicated focus on emergency 

management, closely collaborating with the Federal Emergency Management Agency 

(FEMA) within the U.S. Department of Homeland Security through weekly calls with the 

Director of the Office of Disability Integration and Coordination. NCD has also provided 

updates to the House Homeland Security Committee’s Subcommittee on Emergency 

Preparedness, Response, and Communications on this collaboration, as well as other 

critical areas of emergency management, to help inform the oversight role of the 

Committee.

Website, Social Media, and Media – NCD maximizes its distribution of information by 

leveraging its online presence via its website. NCD also increased its reach and its 

stakeholder interaction in the last fiscal year by using our branded social media tools, 

including Facebook and Twitter. During the past fiscal year NCD’s website received 
Performance Section

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approximately 288,000 visitors, and recorded tens of thousands of downloads of its 

policy reports from domestic and international sources.

During the last fiscal year, NCD has built upon last year’s successes and is recognized by 

the disability community as a leader in utilizing social media to engage with stakeholders 

with our active Facebook and Twitter accounts. NCD staff has utilized the agency’s social 

media presence in innovative ways over the last year, including popular ”live tweeting” of 

disability policy events on Capitol Hill and the White House. NCD continues to utilize its 

traditional email distribution listserv, as well, with approximately 3,000 subscribers 

receiving regular policy and activities updates from the agency. 

Finally, in keeping with NCD’s strategic plan’s goal to leverage media more aggressively 

to help brand NCD and help frame national conversations on disability, NCD Members 

and staff made several national media appearances on a variety of topics, including 

international coverage by the Associated Press, and national attention in the 

Washington Post, National Public Radio and TIME Magazine among others. In FY13, 

the agency conducted its first radio “tour” as a cost effective, yet unique way to expand 

dissemination of the policy findings and recommendations in NCD’s Rocking the Cradle 

report on the rights of parents with disabilities, and reached over six million listeners in 

local markets -- this in addition to the impressive national print media coverage the 

report received.

Highlights of NCD’s media placement in the last year include:

• NCD’s Rocking the Cradle report on parenting with a disability received 

unprecedented news coverage by numerous high profile media outlets including 

the BBC World Service, Associated Press, National Public Radio and TIME 

magazine. The report was also featured by specialized blogs and journals 

including ABA Children’s Law Practice e-newsletter and Psychiatry Online.

• NCD member was interviewed by the Associated Press on independent living 

reaching an international audience. 

• An NCD member and staffer co-authored an OpEd highlighting the 

interconnectedness of National Foster Care Awareness Month and Mental Health 

Awareness Month, two important designations recognized in May reaching over 

75,000 readers.

• ABC News.com published an article discussing both NCD’s Rocking the Cradle

report and deinstitutionalization toolkit. 

These activities, in combination with regular and numerous in-office meetings, including 

with international delegations, demonstrate that NCD, despite its small size and budget, 

has maintained a large impact, relative to our size. This also means we have made 

strides in achieving our goal of being a national voice of the disability community, 

reflective of the geographic, age, cultural, and other diversity within the community.
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Fiscal Year 2014

In Fiscal Year 2014, the National Council on Disability (NCD) will work with our federal 

partners and stakeholders to advance the goals of the Americans with Disabilities Act 

(ADA) by promoting policies, programs, practices, and procedures that guarantee equal 

opportunity and provide for economic self-sufficiency, independent living, and inclusion 

and integration into all aspects of society for individuals with disabilities. NCD is 

committed to approaching its work with an inclusive lens that learns about, includes, 

and respects various perspectives and backgrounds, including multi-generational 

perspectives, reflected in the disability community. Impact the development and 

implementation of Medicaid managed care systems across the country to ensure they 

are successful for beneficiaries with disabilities;

• Work with congressional staffers toward introduction of federal legislation that 

emphasizes and invests in integrated, individualized supported employment and 

deemphasizes and shifts resources away from segregated, subminimum wage 

employment;

• Work with congressional staffers toward introduction of federal legislation that

clarifies and safeguards the rights of parents with disabilities; 

• Work with federal agencies toward development of guidance that clarifies rights 

and protections of parents with disabilities within a variety of circumstances;

• Develop definitions of and offer mechanisms to measure the quality of home- and 

community-based services;

• Offer policymakers a viable policy roadmap to reform Social Security’s disability 

program;

• Assist federal partners, congressional staff, and Administration officials in seeing 

an elimination of the veterans disabilities claim backlog by 2015;

• In concert with industry partners, develop and facilitate solutions to accessibility 

issues using social media; and

• Celebrate the U.S. ratification of the U.N. Convention on the Rights of Persons 

with Disabilities

• Work with state and federal partners to sharpen the focus outcomes based 

compliance and monitoring for students with disabilities in kindergarten through 

twelfth grade with particular emphasis on literacy, high school graduation, and

post-secondary enrollment.
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Fiscal Year 2014

In Fiscal Year 2015, the National Council on Disability (NCD) will further work with our 

federal partners and stakeholders to advance the goals of the Americans with 

Disabilities Act (ADA) by promoting policies, programs, practices, and procedures that 

guarantee equal opportunity and provide for economic self-sufficiency, independent 

living, and inclusion and integration into all aspects of society for individuals with 

disabilities, with continued emphasis on integrated employment, parenting rights, 

access to health care, protection of the rights of people with disabilities being served in 

managed care system and addressing the backlog of veterans’ with disabilities claims.

Objective 2: Policy Development & Collaboration

NCD Annual Progress Report

In FY 2013, NCD’s Annual Progress Report highlighted initiatives of federal partners 

that have made progress on implementing disability policy this year. These highlights 

include federal agency enforcement and regulatory activities; implementation of 

disability laws; and other policy trends. The material was gathered from NCD 

stakeholders, federal agencies, and information gathered through NCD’s own recent 

policy work. NCD found that the nation’s long-term fiscal stability depends, in part, on 

providing people with disabilities with meaningful opportunities to contribute to our 

nation’s collective well-being and on eliminating outdated policies that trap people with 

disabilities in cycles of poverty and dependency. This necessitates the need to integrate 

and deliver necessary supports and services across silos to ensure effective 

coordination and collaboration which meet individual needs. NCD’s FY 2013 Annual 

Progress Report offers highlights of progress in realizing the goals and objectives of the 

Americans with Disabilities Act (ADA) combined with recommendations that promote 

independence and self-sufficiency of Americans with disabilities. 

Since its inception, NCD has been viewed by the disability community, congressional 

leaders, various administrations, and organizations in the public as a trusted source and 

cutting edge leader in the disability arena. To that end, in FY 2013, NCD completed 

several reports, including:

Medicaid Managed Care for People with Disabilities: Policy and Implementation 

Considerations for State and Federal Policymakers to assist with the implementation 

of managed care reforms without harming Americans with disabilities. In the report, the 

agency outlined twenty-two principles to guide the design and implementation of 

managed care services for Americans with disabilities. NCD also recommended that the 

Centers for Medicare and Medicaid Services (CMS) create and circulate a 

comprehensive, easy-to-understand procedure spelling out the process for determining 
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state demonstration waiver requests that seek to link Medicaid managed long-term 

services and supports. Today, more than two-thirds of the 70 million Medicaid 

beneficiaries receive at least a portion of their services through a managed care plan. 

Until recently, the vast majority of these enrollees have been people without disabilities, 

however, now more than half the states are enrolling adults with disabilities as well as 

children with specialized medical needs. In addition, the number of States utilizing 

Medicaid managed care for long-term services and supports jumped from 8 in 2004 to 

16 in 2012. This trend will undoubtedly increase as the Affordable Care Act expands 

Medicaid eligibility next year.

In A Medicaid Block Grant Program: Implications for People with Disabilities and

The Case for Medicaid Self-Direction: A White Paper on Research, Practice and 

Policy Opportunities. In these publications, NCD sought to address concerns held by 

both providers and consumers as changes to Medicaid are considered and made in the 

months and years ahead. In “A Medicaid Block Grant Program,” NCD examined the 

history of federal block grant programs in general as well as proposals to block grant 

federal Medicaid funding; the fiscal challenges underlying the consideration of capping 

federal Medicaid funding and converting the program into a block grant authority; and 

the potential impact of current and past Medicaid block grant proposals.

In The Case for Medicaid Self-Direction,” NCD traced the history of self-directed 

services in the U.S. and its emergence and growth in Medicaid; summarizes findings 

regarding the cost-effectiveness of self-directed services; explores the implications of 

the growing use of Medicaid managed care for the future of self-directed services and 

supports; and recommends strategies for improving the accessibility and quality of selfdirected Medicaid services and supports.

A Promising Start: Preliminary Analysis of Court Decisions Under the ADA 

Amendments Act, which reviewed the court decisions that have been rendered to date 

applying the Americans with Disabilities Act Amendments Act of 2008 (ADAAA) and 

reveals significant improvements in how courts are interpreting protections intended for 

coverage under the ADA. NCD’s report provided 23 findings and three 

recommendations based on an analysis of court decisions made under the ADAAA by 

examining decisions rendered under ADA amendments that were agreed on across 

both sides of the aisle in Congress. Using this measure, it is clear that the ADAAA has 

made a significant positive difference for plaintiffs in ADA lawsuits thus far. For 

example, in six of the seven Circuit Court decisions in which the provisions of the 

ADAAA were applied, the plaintiff prevailed on establishing a disability; and in the 

district court decisions analyzed plaintiffs prevailed on the showing of disability in more 

than three out of four decisions – a promising start and a substantial improvement over 

pre-ADAAA decisions under the broad scope of coverage under the ADA that Congress 

intended. However, many cases are still dismissed on procedural grounds before the 

alleged discriminatory conduct of the employer is ever addressed. In an attempt to 
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correct this concern, NCD's report included recommendations on guidance and 

technical assistance to address some of these procedural issues. 

Help America Vote Act -- The Help America Vote Act (Pub.L. 107-252), (HAVA) was 

passed, in response (at least in part) to the controversy surrounding the 2000 U.S. 

presidential election. The goals of HAVA are: (1) replace punch card and lever-based 

voting systems; (2) create the Election Assistance Commission to assist in the 

administration of Federal elections; and (3) establish minimum election administration 

standards. The report language accompanying the FY 2012 Senate Labor-H 

Appropriation bill included language for NCD and the Administration on Developmental 

Disabilities (ADD), which was part of the Administration on Children and Families (ACF) 

at the Department of Health and Human Services (HHS), regarding the HAVA. The 

language specifically reads “Voting Access for Individuals with Disabilities. -- ... The 

Committee also encourages ACF, in consultation with the National Council on Disability, 

to monitor the implementation of the Help America Vote Act for voters with disabilities 

during the 2012 election cycle.” Although the bill passed the Senate, it was not included 

in the final appropriation bill. However, ACF responded to the Senate language with: 

“The Administration on Developmental Disabilities (ADD), will work with the National 

Council on Disability (NCD) and other federal partners to assess the accessibility of the 

election process for people with disabilities during the 2012 general election. In addition,

ADD staff will continue to provide technical assistance and support to Secretaries of 

State to ensure election accessibility and timely expenditure of appropriated funds for 

such purposes.” 

In response to the FY 2012 Senate language, NCD, in collaboration with ADD, issued a 

report that: (1) describes the utilization of federal funds, activities and outcomes under 

HAVA for people with disabilities over the past decade; (2) includes stories and anecdotes 

collected through the questionnaire process; (3) incorporates data from the questionnaire 

regarding voting accessibility during the 2012 general election, and an analytical narrative 

describing the findings; and (4) includes recommendations to improve voter participation 

and accessibility for people with disabilities for the future.

Toward the Full Inclusion of People with Disabilities: Examining the Accessibility 

of Overseas Facilities and Programs Funded by the United States NCD reviewed 

United States federal disability laws; the United States Agency for International 

Development’s (USAID) disability policy; and the Convention on the Rights of Persons 

with Disabilities (CRPD) as they relate to foreign assistance programs. The report also 

makes recommendations to help ensure that programs administered by the Department 

of State, USAID, and the Department of Defense are accessible to persons with 

disabilities. Key findings in the Report revealed that officials at embassies, consular 

offices and missions routinely invoke security concerns when confronted with the lack of 

accessibility. The Report urged USAID to review and update its Disability Policy. The 

current policy, drafted in 1997, is outdated and provides minimal guidance on how 

USAID programs can be made inclusive across all sectors of its development portfolio. 
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Furthermore the Report urged the Department of State to strengthen its disability rights 

coverage in its Human Rights Reports; and that the Department of Defense should 

provide clear guidance to contractors on the application of the ABA Accessibility 

Standards in developing countries. At present, the standards state that they apply 

"worldwide," but there is a gap in the standards that allows contractors to apply for 

waivers or argue for an exception in developing countries.

NCD also weighed in on a variety of subjects via letters, meetings, or convenings 

including, but not limited to the U.S. Department of Labor companionship exemption, 

the Judge Rotenberg Center’s use of electroshock therapy; Employer Wellness 

Programs; the U.S. Department of Housing and Urban Development’s Olmstead 

guidance; the President’s Budget; mental health issues in the wake of the Newtown, 

CT. tragedy; the U.N. Convention on the Rights of Persons with Disabilities; long-term 

care vis-à-vis the Long-Term Care Commission; hate crimes; and sequestration. NCD 

will follow-up on the recommendations contained in each of those reports, provide direct 

and timely assistance to the Administration and Congress, and will continue to work with 

our stakeholders to identify new policy areas to study. 

NCD has a long and proud history of this kind of collaboration. For example, prior to the 

catastrophic hurricanes of 2005 (Katrina and Rita) NCD led a project related to 

emergency preparedness for people with disabilities - Saving Lives: Including People 

with Disabilities in Emergency Planning. Based on that work, NCD received additional 

appropriations through the Post-Katrina Emergency Management Reform Act of 2006 

(PKEMRA) to continue working on emergency preparedness efforts for people with 

disabilities. In FY 2010 and 2011 NCD worked with the Federal Emergency 

Management Agency (FEMA) Office of Disability Integration and Coordination on cohosting two inclusive emergency preparedness conferences. 

As a result of this work, NCD was well-positioned to help during subsequent natural 

disasters. For example, in FY 2011, NCD sent a letter to the Administrator of the United 

States Agency for International Development (USAID) related to the triple disasters of 

the earthquake, tsunami and nuclear plant breakdown in Japan offering our 

recommendations and assistance in addressing the needs of people with disabilities 

affected. The comprehensive information gleaned at 1) the joint NCD/FEMA conferences 

and meetings; 2) the aftermath of the triple disaster in Japan; and 3) the subsequent 

tsunami alerts in Hawaii and California led to identification of a significant need for the 

disability community – effective communications. For example, a number of people with 

disabilities were unaware of the potential threat caused by the triple disaster in Japan on 

the West Coast of the United States because emergency information was not made 

available to people with certain sensory disabilities. Thus, stakeholders called for a 

standardization of how select emergency information data is displayed on smartphones 

and other devices. In FY 2013, NCD used the remaining PKEMRA funds in a 

cooperative agreement with Georgia Tech Research Corporation in a study titled 

Effective Communication for People with Disabilities Before, During, and After 
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Emergencies. This study researches effective communication that is accessible to 

people with disabilities throughout all phases of emergency management (preparedness, 

response, recovery, and mitigation). NCD’s examination will continue to explore the 

current issues in effective communications before, during and after an emergency 

situation; seek to identify potential solutions; develop proposals intended to have a positive 

impact on the policy environment; and develop guidance summarizing promising practices 

intended to educate emergency planners, as well as state and local officials, about how to 

provide effective communication to all people with disabilities. This report will be released 

in the spring of 2014.

Positive Steps and Paying Attention – Clearing the Backlog and Facilitating 

Benefits and Treatment for America’s Veterans -- In 2009, the Ninth Circuit Court of 

Appeals rendered an opinion which documented frightening statistics-18 veterans of 

American military service were committing suicide daily, with a thousand more 

attempted suicides per month. Citing disparities in treatment categories, claims services 

and delay in the appeal process, the Ninth Circuit applied due process rights squarely to 

military personnel returning from service with medical and other claims. The Veteran’s 

Administration (VHA and VBA) have reacted swiftly and decisively to reach veterans 

and their families in need, expanding medical treatment categories to include PostTraumatic Stress Disorder (PTSD), establishing a widely used hot-line to deal with 

emergencies, and facilitating creation of on-line benefits applications and claims 

procedures. Nonetheless, significant backlogs continue to exist, and returning veterans 

continue to live with (sometimes grave) risk. This loss of life is devastating and the lost 

potential insurmountable. NCD produced a paper that was distributed to Congress, the 

VA, and other appropriate federal entities with recommendations ways to eliminate 

barriers to ensure that the backlog of claims and appeals are reduced, and veterans 

and their families’ best served. To date, NCD has met with representative of House and 

Senate committees of jurisdiction, the VA, the VBA, and the White House regarding this 

report, with more liaising planned in the near term, to include representatives from the

Department of Defense.

Activities such as these assist with NCD meeting performance measures highlighted in 

its strategic plan resulting in an immediate impact. For instance, because of our work 

NCD has been asked to participate on a number federal commissions and councils 

including the Transportation Security Administration’s (TSA) Disability Working Group, 

Federal Emergency Management Agency’s (FEMA) Long Term Disaster Recovery 

Initiative and National Response Framework as well as at the state level with our 

involvement in the Council of State Governments (CSG) Deeper Learning Focus Group 

(related to education reform). 
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Indeed, the Centers for Medicare and Medicaid Services (CMS) linked to NCD’s FY 12

Analysis and Recommendations for the Implementation of Managed Care in Medicaid 

Programs for People with Disabilities document http://www.medicaid.gov/MedicaidCHIP-Program-Information/By-Topics/Delivery-Systems/Medicaid-Managed-Long-TermServices-and-Supports-MLTSS.html on the same website where CMS is highlighting 

their own initiatives. 

Fiscal Year 2014

NCD’s FY 2014 initiatives capitalize on the agency’s ability to play a unique and 

valuable role in the policy process. NCD intends to be a driving force in the community

and will continue to take on the role of convener to bring various stakeholders together, 

including our federal agency partners. NCD will continue to work on a number of policy 

areas but will also work to strengthen the linkage between the Administration, 

Congress, and the growing but often overlooked constituency of people with disabilities. 

Furthermore, NCD’s projects are intended to identify reforms, potential savings, and 

other ways to help reduce the national debt. In FY2014, these projects include: 

Reforming Social Security’s Disability Benefits System -- Current budget debates in 

Congress and with the President have highlighted that our nation faces fiscal 

challenges. According to the 2011 Social Security Trustees’ Report, the Social Security 

Disability Insurance Trust Fund is scheduled to become exhausted in 2016. Because of 

increasing numbers of claims due to the economic situation and concerns with potential 

work disincentives facing both Social Security Disability Insurance (SSDI) and 

Supplemental Security Income (SSI) recipients, these programs have been highlighted 

as in need of reform by policymakers. 

NCD wants to highlight the place of disability in our national fiscal policy and will initiate 

a project that analyzes options for SSI and SSDI reform, including what measures could 

increase work effort for people currently utilizing SSI/DI, what measures could decrease 

the likelihood of using such benefits, and what financing options exist for both programs. 

NCD will generate a platform for disseminating the findings which will include 

recommendations.

CMS Regional Office Stakeholder Meetings – This project is follow-up to our 

Medicaid Managed Care report and would facilitate NCD, local stakeholder and CMS 

Regional Office staff conversations to promote greater dialogue and contact between 

key decision-makers in CMS' Regional Office system and the disability community 

regarding Managed Care waiver applications and dual eligible demonstration 

proposals. NCD would hold 2-3 regional forums with HHS regional offices regarding 

Medicaid managed care and the review of state 1115 and 1915(b)(c) waiver 

applications, dual eligible demonstration proposals and relevant Medicaid waiver or 

state plan amendments.
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Transportation – Investing in independence necessarily involves investing in 

transportation. People with disabilities cannot work if they cannot get to the workplace.

In 2005, NCD released a comprehensive transportation report addressing access to 

ground transportation for people with disabilities: The Current State of Transportation for 

People with Disabilities in the United States, (2005), 

www.ncd.gov/publications/2005/06132005. In FY 2013, NCD is looking at progress made 

since 2005 and examining the recommendations made by NCD in the 2005 report to 

identify which recommendations have and have not been addressed successfully, and 

identify what barriers remain for people with disabilities in accessing transportation, 

including rural transportation. Particular emphasis is being placed on transportation 

issues for people with disabilities in rural and outlying urban areas; and inner city transit 

issues – subways, buses, taxis and issues regarding “silo” transit systems such as paratransit. 

NCD will also continue to track the work of the Transportation Security Administration 

(TSA), via TSA’s Disability Working Group. Based on the negative experiences of 

travelers with disabilities at airport security checkpoints NCD reached out to the 

Transportation Security Administration (TSA) offering our assistance, in a technical 

advisory capacity, regarding security screenings of passengers with disabilities and 

specifically the need for a universal design-based solution for the screening of all 

passengers. As a result of a meeting with TSA’s Office of Disability Policy and Outreach, 

TSA formed an Integrated Product Team to conduct an extensive review of the Screening 

Checkpoint Standard Operating Procedures sections that apply to people with disabilities 

and medical conditions. NCD will continue to track its progress. 

Emerging Technology in Transportation - In 2004 NCD issued a report, Design for 

Inclusion, aimed at educating designers and manufacturers about the way electronic 

and information technology (E&IT) intersects with the needs of individuals with 

disabilities, and how designing with access in mind can significantly increase the size of 

targeted markets for E&IT. In 2011, NCD took the next step in recognizing the 

transformative power of technology and innovation, and examined the importance of 

social media and other information technologies in connecting people to job 

opportunities in report The Power of Digital Inclusion. 

The latest innovations in technology are now upon us through the use of autonomous 

vehicles. Autonomous vehicles are vehicles capable of operating with minimal or no 

input from a human driver beyond entering an intended destination or a planned travel 

route. While this technology is still in its infancy, it is emerging. The expanded use of 

these vehicles could begin to address the dramatic increase in social isolation, chronic 

unemployment, and an overall poorer quality of life stemming in no small part from a 
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lack of transportation. For people who are blind, experience seizures, or have physical, 

developmental or intellectual disabilities whose effects prevent them from driving, 

autonomous vehicles could provide a new and vital transportation option. Many senior 

citizens would also benefit from this technology as they experience isolation - often from 

a lack of transportation. In addition, in most rural areas of the country there simply is not 

adequate public transportation to meet the needs of persons with disabilities. 

Advancing this technology may ease the demand on government dollars to support 

such transit systems. Hence the potential opportunities this advance could bring to 

people with disabilities is significant and requires an examination of the public policy 

barriers that need to be eliminated to further the development of this technology, and 

improve the quality of lives for persons with disabilities. 

Several states across the country have already passed legislation relative to the 

operation of autonomous vehicles. NCD would like to ensure, as more states begin to 

experiment with allowing this technology, that no federal barriers exist that would 

prevent its wider use. In 2014, NCD will engage with industry experts to identify the 

policy barriers of this technology and recommend federal legislation to further advance 

the testing and trial operation of autonomous vehicles. In addition, the project could 

include the drafting model legislation which states may use to create a consistent 

approach across the country. 

Social Media Accessibility -- In FY14, NCD will also convene stakeholders at a forum 

titled “Filling in the Digital Divide: Ensuring a National Integration Strategy for Internet 

and Social Media Access” (Report follow-up activity) - In 2011, NCD completed and 

released its report on Digital Inclusion: Barriers and Opportunities for Employment 

(http://www.ncd.gov/publications/2011/Oct042011). Analyzing six ‘vectors’ or pathways, 

the report examined the ‘new information’ economy in an effort to understand why 

barriers continue to exist for employment of people with disabilities. In that report, NCD 

recommended increased education, conduct of awareness campaigns and collaborative 

outreach and training, particularly for young adults aged 21-30, along with private sector 

and interagency programs and research designed to enhance technological capabilities 

and standardize assistive technology for the broad population of Americans with 

disabilities. Nearly 3 years later, federal agencies are striving to improve accessibility of 

the fast developing technological pathways. This project seeks to take the next step-to 

engage in dialogue with federal agencies and the private sector in order to ensure that 

the landscape of cyberspace develops as fully integrated and navigable for all 

Americans, and that the unique opportunities created by virtual communications are 

maximized. In doing so, Americans with disabilities will be empowered and able to 

expand their participation in the American culture, workforce and society, consistently 

with the goals of the NCD Strategic Plan, and the intent and stated desire of the 

Americans with Disabilities Act.

Activities such as these assist with NCD meeting performance measures highlighted in 

its strategic plan resulting in an immediate impact. For instance, because of our work 
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NCD has been asked to participate on a number federal commissions and councils 

including the Transportation Security Administration’s (TSA) Disability Working Group, 

Federal Emergency Management Agency’s (FEMA) Long Term Disaster Recovery 

Initiative and National Response Framework as well as at the state level with our 

involvement in the Council of State Governments (CSG) Deeper Learning Focus Group 

(related to education reform). 

Indeed, the Centers for Medicare and Medicaid Services (CMS) linked to NCD’s FY 12

Analysis and Recommendations for the Implementation of Managed Care in Medicaid 

Programs for People with Disabilities document http://www.medicaid.gov/Medicaid-CHIPProgram-Information/By-Topics/Delivery-Systems/Medicaid-Managed-Long-TermServices-and-Supports-MLTSS.html on the same website where CMS is highlighting their 

own initiatives. 

The Convention on the Rights of Persons with Disabilities – NCD heard from 

several stakeholders at its April 2013 quarterly meeting regarding how NCD can assist 

in CRPD ratification efforts. The guidance provided to us included both follow-up work 

to the recent release of NCD’s Full Inclusion report (see CRPD projects in Chapter 2); 

and work that we can undertake immediately regarding public awareness of the CRPD. 

Specifically, NCD will engage in a public awareness campaign to inform the disability 

community and the public at large about the importance of the CRPD and the need for 

United States ratification for Americans with disabilities. NCD will specifically raise 

awareness about the purpose of the CRPD; the message of support for disability rights 

which ratification brings; and the potential for tangible benefits ratification would provide 

to current and future generations of Americans with disabilities who wish to travel, 

study, work, and conduct business abroad. 

The Council will highlight how ratification of the CRPD would provide the United States 

with the legal and legitimate ability to engage and work with other nations who are 

parties to the CRPD to uphold anti-discrimination standards similar to what exist in the 

United States. In today’s global society, United States ratification would place the U.S. 

government in a much stronger position to influence foreign governments who have 

ratified the CRPD to assure equal opportunities are available to U.S. citizens with 

disabilities. Without ratification, the United States is in a much weaker position to 

encourage, either bi-laterally or multi-laterally, that governments of the hundreds of 

nations which are parties to the CRPD assure U.S. citizens with disabilities do not face 

discrimination while abroad when studying, traveling, and conducting business abroad. 

As part of this public awareness campaign, NCD will highlight to the parents of children 

with disabilities the increased opportunity for their sons and daughters to engage in the 

global economy if the United States has the CRPD as a tool to better ensure other 

nations protect disability rights. Ratification will enable the U.S. government to work at 

both the multi-lateral and bi-lateral level to influence other nations to create laws and 

systems which prohibit discrimination based on disability, similar to what is enjoyed on 

U.S. soil under the Americans with Disabilities Act (ADA). From requiring equality under 
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the law, prohibiting employment discrimination based on disability, to eliminating 

accessibility barriers in public transportation, the CRPD seeks to ensure for people with 

disabilities in other nations what the ADA has done for the United States. These 

changes in nations around the world would significantly expand the opportunities 

available for Americans with disabilities.

This public awareness campaign will include NCD convening meetings and press 

briefings, either quarterly or more frequently as the Council deems necessary, to 

discuss with the disability community the efforts made towards ratification by the United 

States government, and to seek input from the community about these efforts as a way 

of elevating the many voices that are in support of the CRPD. One such community is 

the international exchange and development community. NCD will also seek to clarify 

that rather than diminishing parental rights, the CRPD actually strengthens parental 

rights. NCD will develop an awareness campaign to address the fears of parents who 

are unnecessarily concerned. It is an appropriate role for NCD to uncover the facts of 

ratification of the treaty and disseminate them. Dispelling myths about the CRPD has 

the dual benefit of dispelling myths about disability and heightening awareness that 

nondiscrimination, inclusion, and full participation by people with disabilities is possible 

in society—the vision of the CRPD.

NCD will continue to recommend to Congress the need for United States ratification of 

the CRPD to better provide for the equal opportunity and self-sufficiency of individuals 

with disabilities. In doing so, NCD will offer its expertise on the treaty to all members of 

the United States Senate to answer any questions and to explain why ratification is so 

important. NCD will also work to ensure that the Senate Foreign Relations Committee, 

and other Senate processes, are accessible to all people with disabilities, particularly

when it comes to communication access. NCD will continue to offer itself as an expert 

resource to the Senate process.

Defining and Measuring Home and Community Based Services Quality - Over the 

course of the last several years, considerable energy and effort has been focused on 

the topic of expanding Home and Community Based Services (HCBS) for people with 

disabilities and older adults. Through programs like Money Follows the Person, the 

State Balancing Incentive Program and the Community First Choice State Option, 

states have been offered financial incentives to shift away from institutional services and 

towards HCBS. Studies have shown that community services are less expensive than 

institutional care and making such a shift could potentially save Medicaid millions of 

dollars annually. Additionally, efforts by the Department of Justice’s Civil Rights Division 

to enforce the Supreme Court’s 1999 Olmstead v. L.C. decision have also helped to 

further the shift towards community services. Despite this significant progress in terms 

of state willingness to invest in community support infrastructure, considerable tensions 

remain as to how to define and assess the quality of HCBS. 
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Additionally, as the Olmstead decision is applied in new contexts, definitions of 

integrated day and employment activities acquire particular relevance.

CMS has recently issued numerous public comment opportunities focusing on this 

particular question, and ongoing deliberations within numerous federal agencies, 

including DOJ, HUD, CMS and the new Administration on Community Living continue to 

work to identify the best ways at ensuring quality measurement infrastructures that are 

truly reflective of community life. If conducted, this project could provide a meaningful 

and practical summary of the relevant issues and options available to state and federal 

policymakers with regards to defining and assessing HCBS systems for consistency 

with the goals and intent of the Medicaid HCBS program, compliance with the 

Americans with Disabilities Act, and the ability to meaningfully enhance the quality of life 

of individuals with disabilities and older adults. Further aspects of this project that could 

be explored include examining: how HCBS should be defined and what should and 

should not be funded utilizing HCBS dollars; what constitutes meaningful compliance 

with the federal Olmstead decision and what implications have yet to be fully explored 

by policymakers and advocates; and how policymaking and quality assessment 

activities of both Medicaid and non-Medicaid programs can be improved with regards to 

HCBS. 

Fiscal Year 2015

For FY 2015, NCD plans on building on past success such as our revamped annual 

progress report and completing several significant policy reports in areas of priority to 

the community and Congress. We also intend to begin several new policy projects of 

national concern for people with disabilities identified through our outreach and 

engagement efforts. NCD has identified several possible new projects and areas to 

address systemic issues affecting people with disabilities (one project was mandated by 

Congress); some of which identify areas of potential savings to help reduce the national 

debt. These potential policy areas include: 

2015 Scorecard -- In our work to revise the format of the Annual Progress report to 

make it more user-friendly for our varied stakeholders, including Members of Congress 

and their staff, in 2015, NCD plans to produce, with the assistance of a contractor and 

local stakeholders, a state by state examination of progress made in implementing the 

goals of the ADA in the past 25 years. The Council will convene a stakeholder group of 

national disability stakeholders to determine objective metrics to measure state by state 

implementation and compliance with the ADA. Additionally state stakeholders will be 

asked to identify targets and goals to be achieved by the 30th ADA Anniversary to 

measure continuing and future implementation efforts. These metrics will be utilized by 

the Council in meeting our statutory obligation to inform the President and Congress 

about annual progress. We also envision this as a way to make the Progress Report 

more valuable to our stakeholders and an actual tool that they can use in their work at 

all levels of government. We anticipate dedicating $75,000 to this project.
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Vocational Rehabilitation -- The state-federal vocational rehabilitation program is the 

only federal funding stream dedicated exclusively to assisting people with disabilities in 

obtaining and maintaining employment. One way to reduce the strain being placed on 

entitlement programs provided by the Social Security Administration or Medicaid is to help 

people find meaningful employment. While states are struggling to access these funding 

streams, people with disabilities have been on waiting lists or turned away from vocational 

rehabilitation services needed to help people find employment and become tax paying 

citizens. Additionally, vocational rehabilitation agencies have (by law) been asked to 

participate in the nationwide One Stop system. Yet, little to no data is available to 

indicate if these systems are physically and programmatically accessible and if people 

with disabilities are using and/or benefitting from the services. 

Currently, the Workforce Investment Act (WIA) is eight years past its required reauthorization. Hence NCD’s next employment focused project will examine Section 503 

of the Rehabilitation Act and the role of federal/state collaboration. The Council intends 

to showcase best practices and ways to leverage the President's call to action as a 

number of states start building state level initiatives to increase the hiring of people with 

disabilities by state contractors. The report could incorporate the role Vocational 

Rehabilitation can play, the role metrics and accountability can play, and continue to 

build the vision of competitive employment and career opportunities for transitioning 

youth and young adults. We anticipate dedicating $25,000 to this project.

Reforming Private Health Insurance to be consistent with the Goals of the ADA --

The current focus on health reform, community living, and enforcement of the Supreme 

Court decision in Olmstead v. L.C.iprimarily focuses on public health benefits, Medicaid, 

in particular. However, little attention is being paid to the extent to which private health 

insurers structure health benefits in ways that interfere with an individual’s right to live in 

the community. Private health policies often contain exclusions or restrictions on the 

types of services most needed by people with disabilities, and have an institutional bias 

– covering services if an individual lives in a nursing home or rehabilitation facility, but 

not covering the services in the individual’s home. Many private insurance plans fail to 

adequately cover rehabilitation and habilitation services and devices; and mental health 

and substance use disorders, including behavioral health treatment. 

According to the Institute of Medicine,ii habilitation, mental health, substance abuse, and 

behavioral services have largely been left to the public sector to provide and fund at 

taxpayers’ expense. For example, many private plans fail to cover, or place unrealistic 

restrictions on, durable medical equipment and limit prosthetic limbs to one per lifetime. 

In addition, many private plans only cover therapies to the extent that they result in 

progress toward recovery – thereby discriminating against people with permanent 

disabilities who need therapies to maintain functioning or prevent deterioration of 

functioning, such as people with cerebral palsy, multiple sclerosis, or people who need 

psychiatric rehabilitation. Most private plans do not cover hearing aids or low vision aids 
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and avoid covering services for children with autism or intellectual disabilities through 

use of a definition of “medical necessity” that applies only to restoration of function. 

Such benefit limitations have a disproportionate detrimental effect on people with 

disabilities that go far beyond a negative impact on health. The impact is so extreme 

that many people with disabilities cannot work because employer-sponsored health 

insurance is inadequate compared with the benefits they can receive from Medicaid. 

Private insurance limitations and exclusions force some people who would rather be at 

home into more costly institutions; placing further strain on cash strapped public 

programs. This is in direct contravention to the Americans with Disabilities Act, the 

Olmstead decision, and generally-accepted principles of community living and inclusion. 

The private insurance market is in need of significant reforms if people with disabilities 

are to participate equally in private health insurance. The purpose of this potential 

project is to analyze the policies of the 20 largest private health insurers and document 

the contract provisions that are inconsistent with the goals of the ADA, the Olmstead 

decision, and the Administration on Community Living (ACL) initiatives. Furthermore, 

the analysis could include specifics such as spotlighting the practices of the private 

insurance market that have the intent or effect of discriminating against individuals with 

disabilities. The Council will dedicate $50,000 to this project.

Education Outcomes for Diverse Students with Disabilities – Investing in the 

workforce of the future is vital to our nation’s interests. One cannot access the 

workforce without the appropriate education yet we continue to see students with 

disabilities from diverse communities slipping through the cracks.

Our nation recently celebrated the 35th anniversary of the Individuals with Disabilities 

Education Act (IDEA). IDEA guarantees students with disabilities a right to a free and 

appropriate public education in the least restrictive environment and provides State and 

Local Education Authorities with funding in order to meet their legal obligations under 

the law. Despite thirty-five years of IDEA implementation and enforcement, students 

with disabilities still lag behind their non-disabled peers and are disproportionately in the 

school to prison pipeline, however it’s mostly discussed within specific populations 

rather than across them. In light of the President’s “My Brother’s Keeper” initiative the 

Council is looking to revisit this issue by going back to its 2003 report “Addressing the 

Needs of Youth with Disabilities in the Justice System” which laid out NCD’s belief 

that delinquency prevention is a critical feature of any service or support system that is 

used to address the needs of all youth, especially youth with disabilities and special 

education needs. A significant proportion of youth in the juvenile justice system have 

education-related disabilities and are eligible for special education and related services 

under the Individuals with Disabilities Education Act (IDEA). Factors associated with the 

disproportionate representation of youth with disabilities in juvenile corrections are 

complex--but the available information suggests that school failure, poorly developed 

social skills, and inadequate school and community supports greatly increase the risks 

for arrest and incarceration. 
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NCD is looking to partner with the White House Initiatives on Educational Excellence 

and Hispanic Americans, African Americans, Asian Americans and Pacific Islanders, 

and Native Americans and Alaska Natives to engage in a groundbreaking crosscommunity dialogue to discuss how the diversity and disability communities can work 

together to meet the needs of our young people as early on as possible in the education 

system to prevent them from becoming adjudicated, and if adjudicated, prevent 

recidivism and entrance into the adult justice system. The Council also looks to engage 

the Office of Safe and Healthy Students at the U.S. Department of Education and the 

Department of Justice. The Council will dedicate $50,000 to this project.

Parenting with a Disability Conference – As mentioned earlier, the Council continues 

to receive significant interest from Federal and State legislators, community based 

organization (disability and non-disability), and the general public about its work on the 

Civil Rights of Parents with Disabilities. NCD is looking to convene a conference on this 

topic-- to provide a venue for the necessary key stakeholders (parents with disabilities, 

federal agencies, advocates, members of Congress and their staff, service providers, 

and researchers) to convene and begin focusing the necessary attention this issue so 

rightly deserves. The conference would attempt to answer several questions of 

prominent concern such as: what actions have been taken on the state and federal level 

to address discrimination against parents with disabilities and their children – what are 

the barriers and facilitators; what promising practices and/or state initiatives have been 

implemented to support parents with disabilities and their children since the release of 

NCD’s report; and what progress has been made on NCD’s report recommendations 

and what more needs to be done to advance and promote the rights of parents with 

disabilities and their children. In addition the conference will break the report out into 

key topics including, but not limited to child custody, foster care, and adoption.

This report has been a tremendous driver of traffic to NCD’s homepage and of NCD’s 

broader outreach work, which is why we continue to highlight it. In fact, the week of 

August 8, 2013we saw 2000 new downloads that we believe can be directly tied to new 

press being done around the issues of parents with disabilities tied to the fall tv 

schedule’s addition of Michael J. Fox’s new sitcom on parenting with Parkinson’s 

disease. We expect to only see media and societal attention to this issue increase going 

forward and want to be proactive to the demand. The National Council on Disability will 

dedicate $50,000 to this project, in hopes of collaborating with additional agencies.

Federal Advisory Committees: Since the dissolution of its three federal advisory 

committees in the last administration, NCD has struggled to be truly reflective of the 

disability experience in America. We are proposing the reconstituting of these 

committees in FY2015 as a means to re-engage with the broader disability community 

and to also enable NCD the flexibility it needs to continue to produce the forward 

thinking material it’s known for. Members will be chosen across different regions of the 
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country, reflecting the diversity of the country, and will convene for monthly conference 

calls and budget willing, one annual face to face meeting.

International Watch: NCD plans to re-constitute its “International Watch” (IW) Federal 

Advisory Committee. IW’s purpose will be to (1) share information on international 

disability issues and activities; and (2) advise the National Council on Disability (NCD) 

on the development of policy proposals and strategies to advance a foreign policy 

consistent with the values and goals of the Americans with Disabilities Act. IW will 

serve as a vital communications and advisory link during a remarkable upsurge of 

international activity around disability issues. Most importantly, on the Convention on 

the Rights of Persons with Disabilities (CRPD).

The International Watch will be comprised of members appointed by the NCD 

chairperson, and represent diverse cultural, disability and professional backgrounds 

who are knowledgeable about international disability issues and policies. Periodic 

conference calls among International Watch membership will serve as a primary vehicle 

for information sharing and for communications among the active membership during an 

unprecedented growth period of international activity around disability 

issues. International Watch will regularly track and advise on the treaty process, 

providing updates during conference calls from a wide range of participants in the US 

ratification process. In sum, NCD’s International Watch will become the primary conduit 

for information about the treaty process, and inclusion of disability within international 

development efforts, within the American disability community. This role is in keeping 

with the policy of the US Government to support the development of domestic disability 

legislation in other countries and to provide technical expertise in these endeavors, 

especially in the developing world, based on the American experience.

Diversity and Inclusion Watch: 

NCD plans to reconstitute its former Federal Advisory Committee tied to cultural 

diversity to broaden to “Diversity and Inclusion”. DIW’s purpose will be to (1) create a 

diversity and inclusion lens to add to the broader work of the council, (2) build 

relationships with diverse organizations and leaders to cultivate relationships between 

them and the disability community, and (3) provide recommendations to the council on 

public policy and programs tied to increasing the participation of diverse groups in our 

overall work and strategic planning. NCD hopes this group will enable the Council to be 

truly inclusive of a much broader base of the disability community as we approach the 

25th Anniversary of the ADA, the proposed report on the School to Prison Pipeline, the 

upcoming scorecard on the ADA and all of the work going forward. 
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Youth Watch:

NCD's Youth Advisory Committee was established in Fiscal Year 2000. It accomplished 

its purpose of providing input into NCD activities consistent with the values and goals of 

the Americans with Disabilities Act by discussing government policies that affect all 

people with disabilities. The experience, advice, and insights of the Youth Advisory 

Committee assure that the voice of youth with disabilities is institutionalized within the 

core of NCD's decision making process. Youth issues are emerging issues. The Youth 

Advisory Committee is necessary because it provides timely advice from the 

perspective of youth and young adults to NCD as it develops policy recommendations to 

the President and Congress. NCD recommendations to the President and Congress on 

youth issues will be published, along with other issues, in NCD's congressionally 

mandated National Disability Policy: A Progress Report. There is no other entity in NCD 

or elsewhere in the Federal Government that can appropriately serve these purposes.

State Academies

The Council will, in collaboration with the National Conference of State Legislatures 

(NCSL) and the Council on State Governments (CSG), establish a policy academy 

series to offer expert assistance on disability policy and disability impact upon general 

policy issues under consideration by federal, state and local governments. NCD will 

provide such expert resources during the annual and quarterly regional meetings of 

both associations.
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The financial section presents the message from the Executive Director, followed by the 

independent auditor’s report and the financial statements with accompanying notes.

Discussion of the financial statements, financial position and results of operations can 

be found in Management Discussion and Analysis Section.
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Message from the Executive Director

I am pleased to report that the National Council on Disability earned a qualified audit 

opinion on its consolidated financial statements. To address the material weakness 

found during our audit, we will enact appropriate general and entity level controls over 

our Information Technology operations. This effort will include the retention of an 

outside expert to perform a security audit of our Information Technology systems and 

equipment and the formulation of appropriate procedures and controls to ensure the 

integrity and security of our Information Technology assets.

With regard to the remaining findings, as noted in the Chairman’s Statement of 

Assurance and described in further detail in the Management Letter Comments, 

following the close of FY2013 the Council has started taking progressive action to 

address the findings of the audit. We view our response to the findings as an 

opportunity to fundamentally correct deficiencies common to small, independent federal 

entities. Our goal is to create formal checkpoints and controls to identify failures and 

deficiencies in advance of adverse outcomes. In particular the establishment of a 

formal quarterly Audit and Finance Committee financial statement review procedure is 

expected to provide a significant enhancement to our ability to identify problems early 

and accurately. As a general matter, we will work to increase the segregation of duties 

and signatures, and establish written financial procedures to provide both a testable 

process but also to ensure that no single individual point of failure can become an 

obstacle to the orderly operation of our financial system. In sum, our goal, as detailed

in our Management Letter Comments, is to increase the transparency, accountability, 

and reliability of our financial and operations systems as we move through FY2014. 

Finally, I want to take this opportunity to acknowledge the efforts of the Council and the 

entire staff that made our financial management a priority during FY 2013. We are all a 

dedicated to ensuring the development of stronger controls in the future to maintain our 

commitment to quality financial management.

Rebecca Cokley

Executive Director
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MANAGEMENT LETTER COMMENTS

ON THE GENERAL FUND

OF THE NATIONAL COUNCIL ON DISABILITY

SEPTEMBER 30, 2013
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TABLE OF CONTENTS

Independent Auditors Management Letter ....................................................................................1

Management Letter Comments:

No. 1 – Ineffective Controls over the Preparation and upload of the Fluctuation Report .............2

No. 2 –Ineffective Controls over Human Resources and Administrative Manual update.............4

No. 3 –Ineffective Monitoring Policies and Procedures................................................................6

No. 4 – Ineffective Compliance with the annual or periodic inventory of non-expendable 

property ............................................................................................................................ 8

No. 5 – Ineffective Controls over Capitalization of furniture, fixtures, and equipment................ 9

No. 6 – Lack of segregation of duties over accounts payable functions...................................... 11
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No. 7 – No monthly reconciliation between contract obligations, payment data and NCD’s 

internal record of obligations and payments ..................................................................13

No. 8 – No modifications on file for extension of Contract performance periods ......................15

No. 9 – No credit card reconciliations for August and September 2013 .....................................16

No. 10 – No plans for promoting efficient spending ...................................................................17
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MANAGEMENT LETTER

To: Mr. Jeff Rosen, Chairman 

National Council on Disability

We audited the financial statements (balance sheet, and the related statements of net cost, 

changes in net position, and statement of budgetary resources, herein after referred to as 

“financial statements”) of the National Council on Disability (“the Council” or “NCD”) as of, 

and for the years ended September 30, 2013 and 2012. We concluded that the Council's 

financial statements as of, and for the years then ended, are presented fairly, in all material 

respects, in conformity with U.S. Generally Accepted Accounting Principles, except for the 

material weakness in internal control and the reportable condition on compliance. 

In planning and performing our audit, we considered the Council’s internal control over financial 

reporting, by obtaining an understanding of the design effectiveness of its internal controls, 

determined whether internal controls had been placed in operation, assessed control risk, and 

performed tests of controls as a basis for designing our auditing procedures for the purpose of 

expressing our opinion on the financial statements. We limited our internal control testing to 

those controls necessary to achieve the objectives described in the Office of Management and 

Budget’s (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements, but 

not for the purpose of expressing an opinion on the effectiveness of the Council’s internal 

control. We have not considered the internal control structure since the date of our report.

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 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.

During our audit, we noted certain matters involving the internal control structure and other 

operational matters that are presented in this letter for your consideration. These issues and 

related recommendations have been discussed with the appropriate members of the Council’s 

management, and are intended to improve the internal control structure or result in operating 

efficiencies. The Council’s written responses to these matters identified in our audit have not 

been subjected to the auditing procedures applied in the audit of the financial statements and, 

accordingly, we express no opinion on them. 

The report is intended for the information and use of those charged with governance and 

management of the Council, the Office of Inspector General, others within the agency, OMB, 

and the U.S. Congress; and is not intended to be, and should not be used by anyone other than 

those specified parties.

REGIS & ASSOCIATES, PC

Washington, DC

February 18, 2014
Financial Section

2

MANGEMENT LETTER COMMENTS (MLC)

No. 1 – Ineffective Controls over the Preparation and upload of the Fluctuation Report 

Condition:

The Council did not prepare, analyze, complete, or upload the Fluctuation Report for three (3) 

quarters of fiscal year (FY) 2013 to the OMB MAX Federal Community System. 

Criteria: 

OMB Circular A-136, revised, states in Section IV: “Agencies are required to submit an analysis 

of significant variances along with the quarter's three financial statements”, (Balance Sheet, 

Statement of Net Cost (SNC) and the Statement of Budgetary Resources (SBR)). “The analyses 

for the three financial statements should be in a separate file or attachment within the 

submission. The variance analysis required by OMB should be only on the significant variances 

between the current quarter and the same quarter from the prior year. If a financial statement 

does not have significant variances between the comparative periods, this should also be 

included and noted in the analysis”. 

Included in OMB Circular A-136, revised, are requirements to submit an analysis of any material 

differences between the current quarter's unaudited SBR and the current quarter's departmentwide SF 133, Report on Budget Execution and Budgetary Resources. The Council should 

reconcile the two reports; however, the Council is only required to provide OMB with an 

explanation for any material differences between the SBR and SF 133 for comparable line items 

related to unobligated balances brought forward, gross budget authority, obligations incurred, 

actual offsetting collections, net outlays, and distributed offsetting receipts.

These quarterly variance analyses are required to be updated to OMB, using the MAX Federal 

Community System, within 21 calendar days after the end of each of the three quarters of the 

fiscal year. To facilitate OMB’s and Treasury’s analysis of differences between agencies’ SBRs 

and SF 133s, agencies will submit the interim comparative SBR in Excel, as well as the Balance 

Sheet, and Statement of Net Cost (SNC).

Cause: 

The Council had high turnover at the Executive Director level during FY 2013. There were three 

(3) Executive Directors during the year. In addition, the Council did not have a qualified internal 

financial analyst from July 1, 2013 to the end of FY 2013. These turnovers adversely affected the 

Council’s ability to prepare and submit quarterly variance reports, as required. 
Financial Section

3

No. 1 – Ineffective Controls over the Preparation and upload of the Fluctuation Report

(Continued)

Effect:

By not submitting its interim unaudited Financial Statements and Fluctuation Report to the MAX 

Federal Community System, as required, the Council was not able to receive comments from 

OMB in advance of year-end deadlines. In addition, this deficiency did not allow sufficient time 

to improve the accuracy and conformity of the Notes for the year-end submission of the 

Performance and Accountability Report (PAR), as well as to enable Treasury’s Financial 

Management Service (FMS) to conduct preliminary analysis of the Council’s data to facilitate 

the preparation of the U.S. Government’s Financial Reports.

Recommendation:

We recommend that the Council’s management implement procedures to ensure that it submits 

Fluctuation Reports to the MAX OMB system, as required. To facilitate the timely 

reconciliation, preparation, and upload of the variance analyses, the Council should retain the 

services of a Senior Financial Consultant or other financial professional to assist them in 

preparing the required reports. 

Management’s Response:

Prior to this issue being raised, and in collaboration with the Chair of the Council’s Audit and 

Finance Committee, the Executive Director reached out to GSA staff to develop its criteria for 

significant variance and this criteria was used to review and upload the 2013 Q4 Flux Analysis. 

Going forward, the Executive Director will upload the interim financial statements after 

reviewing them with relevant staff and the Chair of the Audit and Finance Committee. Staff will 

also conduct a quarterly financial status meeting with the Audit and Finance committee to brief 

and review the reconciliation of FMIS and GSA’s Status of Funds report. A monthly Status Of 

Funds report will be prepared by the 5th of the month and submitted to the Audit and Finance 

committee and included as an update on the monthly Executive Committee call. Management 

has held on submitting its completed 2013 Performance and Accountability Report (PAR) 

pending the completion of the audit and upon completion and acceptance of the attached audit, 

will file the PAR with OMB, inclusive in the PAR of audit fiscal data. This issue itself was caused 

by the Director of Administration ceasing to advise the Executive Director in the preparation of 

these analyses. We disagree with the characterization of a high turnover of Executive Directors; 

the previous Executive Director resigned to assume another government position and was 

replaced by the current Executive Director with an interim Executive Director (a long time NCD 

staff person) who served less than 2 months to bridge the transition. Additionally, the Council 
Financial Section

4

has never had a financial analyst, as this role was proposed of its own volition for FY2013 and 

the Council is actively pursuing qualified candidates in FY2014. 

. 
Financial Section

5

No. 2 – Ineffective Controls over Human Resources and Administrative Manual update

Condition:

Procedures provided in the Council’s Human Resources and Administrative Manual are not up to 

date. 

Criteria:

U.S. Office of Personnel Management (OPM) provides guidance for human resources, through 

the Human Capital Assessment and Accountability Framework (HCAAF). The HCAAF 

provides information on linkages to merit system compliance, which provide information about 

five human capital systems; Strategic Alignment, Leadership and Knowledge Management, 

Results-Oriented Performance Culture, Talent and Management, and Accountability; as well as 

their expected results and linkages to merit system compliance, where appropriate. The guidance 

complies with merit system principles; veterans’ preference rules; and other civil service laws, 

rules, and regulations; including those relating to prohibited personnel practices. To achieve 

consistency in the application of human resources, agencies and individual Federal managers 

must take systematic and proactive measures to document each agency’s specific control. The 

regulation at 5 CFR 250.203 establishes requirements for an agency to maintain a current human 

capital plan, and submit to OPM, an annual human capital accountability report. The 

requirements in the regulation are by design, congruent with the planning and reporting 

requirements contained in OMB Circular A-11, and Title 31 U.S.C.

Cause:

Based on the frequent changes in senior management, the Council did not update the Human 

Resources and Administrative Manual during the current and prior years. According to the 

Council’s management, they relied on the U.S. Office of Personnel Management - Human 

Resource guidance. However, the Council did not establish a requirement to maintain a current 

human capital plan, and submit to OPM, an annual human capital accountability report, as 

required.

Effect: 

Adequate written policies and procedures are necessary to provide clear directives, reliance, and 

consistency in the development, review, approval, and issuance of the Council’s human 
Financial Section

6

resources and administrative procedures. As a result of not updating its Human Resources (HR) 

and Administrative Manual, the Council may not be able to provide reasonable assurance that 

program operations, obligations, and expenditures comply with applicable laws and regulations; 

and that resources are efficiently used and effectively allotted for authorized purposes.

Recommendation:

We recommend that the Council update the HR and Administrative Manual to ensure that its 

policies and procedures are compliant with relevant laws and regulations, and provide reasonable 

assurance that human resources accomplish program objectives. Human resources controls 

developed for the Council’s programs should be logical, applicable, reasonably complete and 

effective, and efficient in accomplishing management objectives.

Management’s Response:

In FY2013, based on the findings of the previous audit, the Council moved proactively to 

develop, and approve a manual for Financial Policies and Procedures, as this was seen to be the 

item requiring the most urgent attention. For FY2014, the Council will bring on HR assistance to 

assist with the revision of its Administrative manual and assist in the hiring and onboarding of at 

least 4 staff. This will be done in collaboration with the Governance Committee and overseen by 

the Executive Director and the Council member POC for HR. This will include taking into 

account the supplements provided by SERCO as per their contract under the previous Chair & 

Executive Director and reaching out to other small agencies to review models of best practice. 

Additionally, a series of pull-out documents for easy reference will be developed for staff and 

Council members to ensure compliance with key policies, procedures, and trainings. Regardless, 

the Council agrees that the Administrative manual requires updating to reflect current 

agency policies, such as the processing of FOIA requests.
Financial Section

7

No. 3 – Ineffective Monitoring Policies and Procedures

Condition:

The Council did not appear to have any policies and procedures in place to react to changes in 

operations.

Criteria:

OMB Circular A-123, Management Accountability and Control, states that, “Management is 

responsible for establishing and maintaining internal control to achieve the objectives of 

effective and efficient operations, reliable financial reporting, and compliance with applicable 

laws and regulations. To achieve consistency in the application of internal control, agencies and 

individual Federal managers must take systematic and proactive measures to document internal 

control.” In addition, Management should have a strategy to ensure that ongoing monitoring is 

effective, and will trigger separate evaluations where problems are identified, or where systems 

are critical and testing is periodically desirable. 

Cause:

The auditors requested documentation of ongoing monitoring strategies, and documentation of 

the separate evaluations where problems were identified, or where systems critical for testing 

were periodically completed. The auditors were not provided with these documents. In 

addition, the auditors requested a list of all employees that were regularly asked to state 

explicitly whether they complied with the agency’s code of conduct or similar agency 

pronouncements of expected employee behavior. The auditors were not provided with this 

document, neither were they provided with the Council’s central repository for monitoring 

activities.

Effect: 

As a result of the lack of an internal control monitoring system, reports were not prepared and 

submitted to the relevant authorities on due dates, credit card reconciliations were not prepared 

for some of the periods, and there were delays in vendor payments. These, and other related 

deficiencies have been discussed in other findings in this report. 

Recommendation:

One of the major components of internal control is control monitoring. We recommend that the 

Council develop and implement control-monitoring mechanisms to identify and appropriately 

respond to changes in operations, and deficiencies in internal control.
Financial Section

8

Management’s Response:

Throughout FY2013, the Chairperson, and Chair of the Audit and Finance Committee were 

intricately involved in the operations as needed (as per an email sent on September 18, 2013), 

including when the Executive Director was on abbreviated maternity leave. As additional issues 

arose in FY2013, the Chair and other members of the Council leadership reached out to GSA for 

assistance, particularly as it related to finance and operations. As an operational matter, the 

Council will update its Administrative Manual, fill vacant administrative positions, and in 

August of 2014, NCD will take 2 weeks to create desk manuals for each position so that functions 

can be backfilled as needed. The Council will use the calendar of events from our response to 

Material Weakness, NFR 13-01, Ineffective Controls over Policies and procedures in place for 

IT general and entity controls, to establish effective measures of performance so that any gaps in 

delivery can be identified and corrected in real time. Finally, specific cross-checks on service 

delivery will be developed that can be performed at the Council Audit and Finance Committee 

meetings in addition to the Quarterly meetings, so that the Board can have reliable indicators of 

systemic organizational dysfunction.
Financial Section

9

No. 4 – Ineffective Compliance with the annual or periodic inventory of non-expendable 

property

Condition: 

The Council did not complete the annual or periodic inventory of non-expendable property in 

fiscal year 2013, as provided for in the Financial Policy and Procedures manual. In addition, the 

Council also did not identify and tag all inventory of non-expendable property. 

Criteria:

The Council’s Financial Policy and Procedures manual, Section 10.3, states in part that: “... all 

purchased equipment and furniture having a useful life of more than one-year come under the 

definition of non-expendable property.” It also states that “...A record of all non-expendable 

property is to be maintained in a property log showing date of purchase, purchase value, a 

complete description of the item (including color, size, model and serial number), and the 

specific location. All property will be tagged upon receipt and the assigned number recorded on 

all applicable documents pertaining to the property control system. An inventory will be 

conducted yearly to verify existence, condition, and continued need.” 

Cause:

Due to a lack of oversight, the Council’s management responsible for non-expendable property, 

did not complete the annual or periodic inventory of non-expendable property, as required in 

their Financial Policy and Procedures manual. In addition, the Council’s employee responsible 

for supervising the property control system did not tag all new non-expendable property, upon 

receipt, in fiscal year 2013.

Effect: 

The safeguarding of assets is a subset of internal control objectives. Due to the non-completion 

of the annual or periodic inventory of non-expendable property, the Council may not be able to 

provide reasonable assurance regarding prevention of, or prompt detection of, unauthorized 

acquisition, use, or disposition of assets. 

Recommendation:

We recommend that the Council follow the procedures regarding non-expendable property 

contained in its Financial Policy and Procedures manual, Section 10.3.
Financial Section

10

Management’s Response:

Council management attempted without consistent success to direct the Director of 

Administration’s performance of administrative tasks such as this one. Although a technology 

inventory was completed in FY2014, going forward, the Council’s administrative staff will 

conduct an inventory due April 15 and September 15 including all relevant items. As these items 

age or are no longer in use, they will be added to a rolling archived inventory as needed. This 

inventory will be kept on the shared drive.
Financial Section

11

No. 5 – Ineffective Controls over Capitalization of furniture, fixtures, and equipment

Condition:

The Council did not capitalize furniture, fixtures, and equipment purchased during 2013, with a 

threshold of $5,000 or more, and having with a useful life of two or more years. 

Criteria:

Federal capitalization guidelines state that “...capitalizable items should only be capitalized if 

they have an estimated useful life of at least two years following the date of acquisition. 

Capitalization thresholds are best applied to individual items rather than to groups of similar 

items (e.g., desks and tables), unless the effect of doing so would be to eliminate a significant 

portion of total capital assets (e.g., equipment).”

Federal capitalization guidelines also state that “In no case should a government establish a 

capitalization threshold of less than $5,000 for any individual item; and agencies should exercise 

control over potentially capitalizable items that fall under the operative capitalization 

threshold”.

The Council’s Financial Policy and Procedure manual states that “...physical assets acquired in 

excess of $5,000 will be classified as a fixed asset and recorded on the asset log with a useful life 

of two or more years."

Cause:

Due to a shortage of human resources during fiscal year 2013, the Council’s employee 

responsible for carrying out the Council’s financial policies did not capitalize the new fixed 

assets purchased in 2013. In addition, the Council’s employee responsible for supervising the 

property control system did not tag all new non-expendable property or fixed assets, upon 

receipt, in fiscal year 2013.

Effect:

As a result of not capitalizing the purchase of the furniture and fixtures, with a threshold of 

$5,000 and having a useful life of two or more years, fixed assets were originally expensed as 

part of Gross Cost - Program A, in FY 2013.

Recommendation:

We recommend that the Council follow the procedures relating to fixed assets, contained in its 

Financial Policy and Procedures manual.
Financial Section

12

No. 5 – Ineffective Controls over Capitalization of furniture, fixtures, and equipment 

(Continued)

Management’s Response:

The Council’s biannual inventory, as noted in management letter comment, Ineffective 

Compliance with the annual or periodic inventory of non-expendable property, will ensure 

proper accounting of furniture and fixed assets, as needed. As these items depreciate in value, 

age or are no longer in use, they will be noted accordingly. To ensure transparency, 

accountability, and ease of access, this inventory will be kept on the Council’s shared drive.
Financial Section

13

No. 6 – Lack of segregation of duties over accounts payable functions

Condition: 

We examined the Council’s accounts payable system, and noted a lack of segregation of duties 

over accounts payable functions in the third and fourth quarters of fiscal year 2013. Our 

consideration regarding segregation of incompatible duties over the accounts payable function, 

as part of our walk-through procedures, indicated that there were incompatible duties during the 

fourth quarter of FY 2013. We also noted that this issue was also present in the third quarter of

FY 2013. Specifically, we noted that a full time employee, approved vendor invoices for 

payment, and signed the receiving report that acknowledged the delivery and acceptance of the 

goods and services.

Criteria: OMB Circular A-123, Management Accountability and Control, defines control 

activities as the policies and procedures that help ensure that management directives are carried 

out. This includes ensuring that adequate segregation of duties is provided between performance, 

review, and recordkeeping of a task. In addition, the Committee of Sponsoring Organizations of 

the Treadway Commission (COSO) provides guidance for defining internal controls and its key 

components. One of the key components under the control activities area is segregation of 

duties, which is defined as follows: Duties are divided, or segregated, among different people to 

reduce the risk of error or inappropriate actions.

Cause:

The employee in this position was new, and there were no procedures to document the process, 

policies, and procedures relating to invoice processing and vendor payments. 

Effect: 

As a result of the condition noted above, there is a risk that errors or inappropriate transactions in 

accounts payable may not be prevented or detected, in a timely manner.

Recommendation:

We recommend that the Council follow its own policies and procedures, and implement adequate 

segregation of duties, by separating and assigning responsibilities for authorizing and recording 

transactions, and handling the related assets, among different personnel. This should ensure that 

the persons who approve vendor invoices do not sign the receiving reports for the same goods or 

services they are approving for payment. 
Financial Section

14

No. 6 – Lack of segregation of duties over accounts payable functions (Continued)

Management’s Response:

As a small organization, the Council staff must perform multiple functions that would ordinarily 

be spread across separate individuals in larger agencies. Nonetheless, separating the 

authorization of the obligation/payment function from the transmittal function does provide an 

important check against unauthorized expenditures. To that end, the Executive Director, 

General Counsel, and members of the Audit and Finance Committee have been granted 

signature authority for Obligations and Transmittals so that financial submissions for 

obligations and payments are not restricted by the availability of a particular individual. A 

single individual will not ordinarily be allowed to both sign for an obligation or authorize a 

payment, and also authorize transmittal. Those functions will be performed by two separate 

authorized signatories when possible. Additionally, going forward the Audit and Finance 

Committee will be meeting monthly to review and ensure compliance and transparency in 

financial processes and transactions.
Financial Section

15

No. 7 – No monthly reconciliation between contract obligations, payment data, and 

Council’s internal record of obligations and payments

Condition: 

We noted that there was no monthly reconciliation between contract obligations, payment data, 

and the Council’s internal record of obligations and payments. Additionally, the timely receipt 

and review of the Transmittal, with any changes or edits recorded by the external service branch 

of GSA on the confirmation, which would reduce a significant source of error, was not 

completed. 

Criteria:

The Council’s Financial Policy and Procedures manual, requires management to perform routine 

examinations on the accuracy and validity of obligations and expenditures. In addition, the 

Council is required to perform reconciliations of the data transmitted to GSA, to the actual 

recorded data recorded in GSA’s shared financial system, which serves as the official books and 

records for the Council.

Cause:

There were no procedures to document the process, policies, and procedures relating to invoice 

processing and vendor payments. As a result, monthly reconciliations between contract 

obligations, payment data, and the Council’s internal records of obligations and payments were 

not adequately prepared or approved.

Effect:

Failure to prepare monthly reconciliations between contract obligations, payment data, and the 

Council’s internal record of obligations and payments increases the likelihood of not detecting 

errors and irregularities in financial records.

Recommendation:

We recommend that the Council’s management assign qualified personnel to prepare and review 

the monthly reconciliations between contract obligations, payment data, and the Council’s 

internal record of obligations and payments in a timely and consistent manner.
Financial Section

16

No. 7 – No monthly reconciliation between contract obligations, payment data and 

Council’s internal record of obligations and payments (Continued)

Management’s Response:

This issue was a result of the Director of Administration failing to fulfill functions of her 

position. Going forward into FY2014, the Council will:

1. Utilize	the	automated	reconciliation	tools	available	to	the	Council	as	part	of	the	Budget	

Execution	and	Reporting	System	to	match	internal	obligation	and	payment	balances	against	the	

data	contained	in	Pegasys,	as	accessed	from	FMIS.		This	reconciliation	will	be	performed	on	a	

quarterly	basis,	to	precede	as	closely	as	possible	regularly	scheduled	OMB-Max	submissions	and	

the	audit	schedule.

2. Document	the	closing	and	reconciliation	procedures	as	part	of	a	revised	Finance	Manual.

3. Use	the	quarterly	financial	status	meeting	as	a	driver	to	ensure	that	the	Council	adheres	to	the	

documented	process.

4. Develop	tools	to	improve	the	transparency	of	the	financial	flow	through	to	enable	COTR’s	to	

directly	monitor	the	status	of	contracts	they	supervise.

5. Review	open	contracts	for	accuracy	of	obligation	and	payment	of	invoices.

6. Provide	training	to	all	staff	to	ensure	the	staff	are	familiar	with	the	policy	and	procedures,	and	

understand	their	roles	and	responsibilities	as	it	pertains	to	reviewing	contracts	and	determining	

if	information	is	needed	from	the	vendor	to	support	an	accrual.

7. The	Executive	Director	will	participate	in	CO	training	this	spring,	and	the	existing	COTRs	will	

renew	their	training	as	required,	by	September.

8. Reconciliations	and	monthly	status	of	fund	reports	will	be	provided	to	the	Executive	and	Audit	

and	Finance	Committees.
Financial Section

17

No. 8 – No modifications on file for extension of Contract performance periods

Condition:

We noted that out of 19 contracts and agreements tested, there were three (3) contracts where we 

could not locate any modifications on file that allowed for extension of time to complete the 

services rendered by the Contractor, vendor, or supplier.

Criteria:

FAR part 43.201 states “(a) Generally, Government contracts contain a changes clause that 

permits the contracting officer to make unilateral changes, in designated areas, within the 

general scope of the contract. These are accomplished by issuing written change orders on

standard form 30, Amendment of Solicitation/Modification of Contract (SF 30), unless otherwise 

provided. (b) The contractor must continue performance of the contract as changed, except that 

in cost-reimbursement or incrementally funded contracts the contractor is not obligated to 

continue performance or incur costs beyond the limits established in the Limitation of Cost or 

Limitation of Funds clause (see 32.706). (c) The contracting officer may issue a change order by 

telegraphic message under unusual or urgent circumstances; provided, that—

(1) Copies of the message are furnished promptly to the same addressees that received the basic 

contract; (2) Immediate action is taken to confirm the change by issuance of a SF 30; (3) The 

message contains substantially the information required by the SF 30 (except that the estimated 

change in price shall not be indicated), including in the body of the message the statement, 

“Signed by (Name), Contracting Officer”; and (4) The contracting officer manually signs the 

original copy of the message”.

Cause:

The employee in this position was new, and there were no procedures to document the process, 

policies, and procedures relating to contract modifications. As a result, proper documentation of 

modifications was not maintained to ensure that the services rendered by the vendor or supplier, 

were properly approved.

Effect: 

As a result of not documenting modifications in a timely manner, the Council runs a risk of 

obligating funds in excess of funds availability, or not obligating funds in the correct annual fund 

year.
Financial Section

18

Recommendation:

We recommend that the Council document all extensions in contract performance periods by 

utilizing Standard Form 30, Amendment of Solicitation/Modification of Contract.

Management’s Response:

The Director of Administrator refused to assist with the extensions of certain contracts despite 

directives. A monthly report will be sent to all COTRs notifying them of contracts expiring in the 

next 30 days that have an open balance. The COTRs will notify the financial analyst whether to 

extend the period of performance or de-obligate the balance. As a cross-check, on a quarterly 

basis a report will be generated showing all items that expired with an open balance. Following 

review, the balances will be de-obligated or the contracts extended. Additionally, in FY2014 the 

Council will be developing a series of quick reference materials to ensure understanding and 

compliance with financial policies and procedures to prevent this issue from occurring again.
Financial Section

19

No. 9 – No credit card reconciliations for August and September 2013

Condition:

During our audit, we performed procedures to determine whether the Council followed GSA’s 

credit card policy, which includes the preparation and review of credit card reconciliations. We 

noted that the Council did not prepare credit card reconciliations for August and September, 

2013.

Criteria:

The Credit Card Act requires all executive agencies to establish and maintain safeguards and 

internal controls for purchase cards, travel cards, integrated cards, and centrally billed accounts.

Based on the Council’s policy and procedures, the Cardholder is required to reconcile monthly 

credit card statements from Citibank, against the Purchase Request Forms; and the Director of 

Administration is required to review and approve the reconciliation of the monthly purchase card 

statements.

Cause: 

Due to management oversight, the Council did not prepare credit card reconciliations for August 

and September 2013. In addition, there was no management follow-up to ensure that the credit 

card reconciliations were prepared or reviewed.

Effect:

Failure to prepare monthly credit card reconciliations increases the likelihood of not detecting 

errors and irregularities in financial records. This deficiency could also lead to payment of 

unauthorized expenses. 

Recommendation:

We recommend that the Council’s management implement procedures and provide greater 

internal control monitoring to ensure that monthly credit card reconciliations are prepared, 

reviewed, and approved in a consistent and timely manner. 
Financial Section

20

Management’s Response:

Whereas the Executive Director was responsible for oversight on this issue, the Director of 

Administration failed to comply with the functional responsibilities detailed in the Financial 

Policies and Procedures manual. Prior to the completion of the FY13 audit, the Council’s 

Executive Director reached out to Citibank directly to ensure all statements had been received, 

and worked alongside the Council’s financial contractor to ensure any outstanding payment was 

remedied immediately. Until the vacant positions on the Administrative team are filled, the 

Executive Director will maintain oversight on this function.
Report on Financial Statements Audit

21

No. 10 – No plans for promoting efficient spending

Condition:

The Council’s Financial Policy and Procedures manual, dated September 12, 2013, includes 

procedures relating to travel and other procurement of supplies and services. However, the 

manual did not include any plans for promoting efficient spending, as required by the November 

9, 2011 Executive Order 13589, Promoting Efficient Spending. 

Criteria:

Executive Order 13589, Promoting Efficient Spending, - Sec. 2 and Sec 3 (a) - Agency Reduction 

Targets requires each agency to establish a plan for reducing the combined costs associated with 

the activities covered by travel, employee information technology devices, printing, executive 

fleet efficiencies, and extraneous items, by not less than 20 percent in Fiscal Year (FY) 2013 

from FY 2010 levels. Agency plans for meeting this target were to be submitted to the Office of 

Management and Budget (OMB) within 45 days of the date of this order.

Cause: 

The Council did not monitor compliance with new laws and regulations, due to the frequent 

changes in senior management, and the open Financial Analyst position from July 1, 2013 

through September 30, 2013, that remained vacant during the fiscal year under audit. 

Effect:

As a result of not developing a plan for promoting efficient spending, as required, management is 

not able to ensure and demonstrate that the Council’s operations were carried out in an effective 

and efficient manner.

Recommendation:

We recommend that management develop a plan to achieve a 20 percent cost reduction over 

2010 levels, in travel, employee information technology devices, printing, executive fleet 

efficiencies, and extraneous items, as required by Executive Order 13589.

Management’s Response:
Report on Financial Statements Audit

22

The Council has been extremely conservative about travel regardless of the need for its Members 

located across the country to do so in order to fulfill the agency mission of advising the 

President, his Administration and Congress. The Council’s travel cost in FY 2013 is comparable 

to or is lower than its travel costs in recent fiscal years, over $45,000 less than FY2012. The 

Council has reached out to OMB regarding the 2010 travel levels, and OMB has noted that the 

Council currently has additional travel costs due to members and staff that require the use of 

Personal Assistants to fulfill their obligations for Council travel. Additionally, the Council has 

agreed to host one teleconference per year to cut travel funds. 
Appendix A

23

Appendix A – Listing of Abbreviations and Acronyms

ADA Americans with Disabilities Act of 1990, as amended

AICPA American Institute of Certified Public Accountants

ATDA Accountability of Tax Dollars Act of 2002

CFO Chief Financial Officer

CFR Code of Federal Regulations

CSRS Civil Service Retirement System

DOL Department of Labor

ED Executive Director

ESEA Elementary and Secondary Education Act

FASAB Federal Accounting Standards Advisory Board

FBWT Fund Balance with Treasury

FECA Federal Employees Compensation Act

FERS Federal Employees’ Retirement System

FFMIA Federal Financial Management Improvement Act

FICA Federal Insurance Contribution Act

FISMA Federal Information Security Management Act

FMFIA Federal Managers’ Financial Integrity Act

FOIA Freedom of Information Act

FTE Full-time Equivalent

FY Fiscal Year

GAAP Generally Accepted Accounting Principles

GAO Government Accountability Office

GPRA Government Performance and Results Act

GSA General Services Administration

IPIA Improper Payments Information Act

IT Information Technology

MD&A Management’s Discussion and Analysis

NCD National Council on Disability

NCLBA No Child Left Behind Act reauthorization

OMB Office of Management and Budget

OPM Office of Personnel Management

PP&E Property, Plant and Equipment

PAR Performance and Accountability Report

SAS Statement on Auditing Standards

SBR Statement of Budgetary Resources

SFFAS Statement of Federal Financial Accounting Standards

SNC Statement of Net Cost

TSP Thrift Savings Plan

UDO Undelivered Orders

USC United States Code
Appendix A

24

 i

Olmstead v. L.C., 527 U.S. 581 (1999).

iiii Institute of Medicine, “Essential Health Benefits: Balancing Coverage and Cost” p. 108, (Oct. 2011). ii Institute of Medicine, “Essential Health Benefits: Balancing Coverage and Cost,” p. 131. ii