U.S. Occupational Safety and Health Review Commission 

OSHRC 

Performance and Accountability Report 

FY 2013 
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

FINANCIAL STATEMENTS

 SEPTEMBER 30, 2013 AND 2012 

AGENCY HEAD MESSAGE 

MANAGEMENT DISCUSSION AND ANALYSIS................................................................. 1-16 

FINANCIAL SECTION 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS........................... 17-20 

BALANCE SHEET...................................................................................................... 21 

STATEMENT OF NET COST ....................................................................................... 22 

STATEMENT OF CHANGES IN NET POSITION............................................................... 23 

STATEMENT OF BUDGETARY RESOURCES.................................................................. 24 

STATEMENT OF CUSTODIAL ACTIVITY........................................................................ 25 

NOTES TO THE FINANCIAL STATEMENTS..................................................................... 26-36 
UNITED STATES OF AMERICA 

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

ONE LAFAYETTE CENTRE 

1120 20TH STREET, N.W. NINTH FLOOR 

WASHINGTON, DC 20036-3457 

OFFICE OF THE CHAIRMA:-.f 

Decetnber 16. 2013 

The President 

The White House 

Washington, DC 20500 

Dear iV1r. President: 

I am pleased to trans1nit the Occupational Safety and Health Review Commission's (OSHRC's) 

Fiscal Year 2013 Perforn1ance and Accountability Report (PAR). The PAR includes 

performance inforn1ation, as required by the Governn1ent Performance and Results Act (GPRA) 

and the OPRA Modernization Act. and audited financial state1nents and related docutnentation, 

as required by the Accountability of Tax Dollars Act of 2002. 

The mission of the Occupational Safety and Health Review Con1n1ission is to provide fair and 

timely adjudication of workplace safety and health disputes between the Department of Labor, 

employers and employees and/or their representatives under the Occupational Safety and Health 

Act of 1970. OSHRC continues to set high standards of perfonnance for itself and, during this 

past fiscal year, we were generally successful in n1eeting our stated goals. 

At the Co1nn1ission leveL cases were resolved. and all perfonnance goals were n1et -·a 

particularly significant accmnplishment since the Cmnn1ission lacked a quorun1 for over 

percent of the fiscal year. Our Administrative Law Judge (ALJ) function disposed of 2,460 

cases. However, it was unable to meet its two performance goals as the ALJ function 

experienced several challenges. ln particular, our case intake at the ALJ level increased about 

fifty percent between F Y 2009 and FY 2011. Our FY 2012 case intake was 31 percent above 

that of FY 2009 and our case intak~ for FY 2013 was 7.6 percent above that of FY 2009. While 

recent data suggests that the num her of new cases may appear to be stabilizing, we show a 

continual growth in complex cases and the mnount of time involved in resolving these cases. In 

addition, our ALJ function operated at less than full capacity due to vacancies which had 

occurred over the past three years. These factors in1pacted the ti1ne to resolve cases. 

Nevertheless, our AL.b have perfonned outstanding vvork in the face of the significant increase 

in workload, reducing th~ case mventory of I, 154 at the end of tiscal year 2012 to 909 at the end 

of fiscal year 2013. The Executive Director function met two of its three performance goals. It 

was unable to n1eet the performance goal to inYest .55 percent of basic payroll in training and 

provide no fewer than twelve hour5 of training per swff men1ber. Approxin1ately .42 percent of 

basic payroll was devoted to training, and appro:-..itnateiy 53 percent of agency employees 
received twelve or more hours of training during fiscal year 2013. The Office of the Executive 

Director was challenged in meeting this goal as spending on training was severely constrained in 

fiscal year 2013 due to the agency being under a continuing resolution for six months and 

sequestration. 

Chairman, I remain con1n1itted to providing outstanding perforn1ance during the current fiscal 

year. We will continue to explore new ways of increasing our efficiency and effectiveness, and 

to provide high quality adjudication of safety and health issues that corne before the Review 

Con1mission. 

I am also pleased to report that the Review Con1n1ission received its 11th consecutive unqualified 

opinion from an independent audit of its financial statements. The audit report identified no 

material weaknesses or other significant deficiencies. In addition, the Review Con1mission can 

provide reasonable assurance that the agency is in substantial con1pliance with the Federal 

1v1anagers Financial Integrity Act of 1982 and the OHice of Managen1ent and Budget (OMB) 

Circular A-123, Management's Responsibility for Internal ControL and that internal control over 

financial reporting is operating effectively to produce reliable financial reporting. 

If you have any questions regarding this report please contact Ine. 

Sincerely, 

w~:r"' r/(~~ Thomasina V. Rogers 

Chairn1an 

Enclosure 
U.S. Occupational Safety and Health Review Commission 

FY 2013 Performance and Accountability Report 

Management Discussion and Analysis 

Overview 

The Occupational Safety and Health Review Commission (“OSHRC” or “Review Commission”) 

is an independent, adjudicatory agency created by the Occupational Safety and Health Act of 

1970. Its sole statutory mandate is to serve as an administrative court providing fair and 

expeditious resolution of disputes involving the Occupational Safety and Health Administration 

(OSHA), employers charged with violations of Federal safety and health standards, and 

employees and/or their representatives. The Review Commission was created by Congress as an 

agency completely independent of the Department of Labor to ensure that OSHA’s enforcement 

actions are carried out in accordance with the law and that all parties are treated consistent with 

due process when disputes arise. 

The Occupational Safety and Health Act and the Review Commission’s Rules of Procedure 

provide for two levels of adjudication when an employer contests an OSHA citation for alleged 

violations of the Act or failure to abate such alleged violations. The first is a trial level, which 

affords an opportunity for a hearing before a Review Commission Administrative Law Judge 

(ALJ). The Judge’s decision becomes final unless the decision is directed for review to the 

Commission by an individual Commissioner. The second level of review is by Commission 

members who are appointed by the President with the advice and consent of the Senate. Both 

before its Judges and the Commissioners, the Review Commission provides fair and impartial 

adjudication of cases concerning the safety and health of employees’ working conditions in the 

United States. 

Mission and Organizational Structure 

The mission of the Review Commission is to provide an impartial forum for the just and prompt 

adjudication of workplace safety and health disputes involving the Department of Labor, 

employers, and employees and/or their representatives under the Occupational Safety and Health 

Act of 1970. 

The Review Commission has three members, who serve six-year terms, each of whom is 

appointed by the President and confirmed by the Senate. One of the members also serves as 

Chairman of the agency. The Review Commission has three major functions: the Commission 

function, the Administrative Law Judge function, and the Office of the Executive Director 

function. 

The principal (national) office of the Review Commission is located in Washington, D.C. There 

are two regional offices, one in Atlanta, Georgia, and the other in Denver, Colorado. 
Our vision is simple, direct and performance oriented. We strive to be: 

	 A quasi-judicial body that is -- and is recognized for being -- objective, fair, 

prompt, and professional; 

	 An agency that creates a body of law through its decisions that define and 

explain the rights and responsibilities of employers and employees under the 

Occupational Safety and Health Act of 1970; 

	 A model Federal agency with highly effective processes, a highly motivated, 

qualified and diverse workforce, and modern information management, 

communications, and administrative systems; and; 

	 An agency that values team work, develops its employees, and strives to 

improve its performance, service, and value to the American people. 

Challenges and Opportunities 

The Review Commission’s ability to meet its case disposition goals depend on a variety of 

factors. These include: (1) continued presence of a quorum at the Commission level; (2) the 

magnitude and nature of the cases received; (3) the success of the parties’ settlement negotiations 

and the Agency’s Simplified Proceedings and Mandatory Settlement programs in reducing the 

number of hearings needed; and (4) the number, location, length and complexity of hearings 

held. Although these factors are largely outside the Review Commission’s control, the Review 

Commission is committed to working within such constraints to improve its service to the public. 

The Commission consists of three members appointed by the President with the advice and 

consent of the Senate. The Occupational Safety and Health Act requires a quorum of two 

Commissioners. By statute, decisions can only be decided on the affirmative vote of two 

Commissioners. During periods when the Commission lacks a quorum, no cases can be decided. 

In addition, with only two Commissioners, it may be more difficult to reach agreement sufficient 

to dispose of some cases. In cases where such agreement cannot be reached, deadlocks result. 

Consequently, action on important issues may be postponed and issuance of some pending cases 

will be delayed. 

The Commission operated with only two Commissioners during nine months of Fiscal Year (FY) 

2013 and with only one Commissioner during three months of FY 2013. This was the result of 

one Commissioner’s term expiring in FY 2011 and another Commissioner’s term expiring in 

April 2013 (this Commissioner was reappointed in August 2013). 

The number of safety and health inspections carried out by OSHA each year, the nature of those 

inspections, and the rate at which employers choose to contest the citations issued and penalties 

proposed by OSHA all have an impact on the number of cases contested before the Review 

2 
Commission. In addition, OSHA’s targeting during recent years of workplaces experiencing 

more serious workplace hazards, and the consequent increase in proposed penalties, has resulted 

in a greater number of complex cases, and more extensive pretrial and trial processes. 

Consequently, both the size and complexity of the cases at both the Administrative Law Judge 

and Commission levels has increased in recent years. 

OSHA conducted 39,228 inspections in FY 2013. The number of OSHA inspections and their 

likely focus on the highest hazard workplaces affects the Review Commission’s ALJ caseload. 

These inspections have tended to result in more complex and contentious cases, which consume 

extensive judicial time. For such cases, the discovery process is lengthy and time consuming, 

motion practice is expanded, legal research and decision-writing time is protracted and, of 

necessity, the trial process is elongated and complicated. 

The Review Commission utilizes two alternative procedures to facilitate case adjudication in 

appropriate circumstances – Settlement Part, for certain relatively complex cases, and Simplified 

Proceedings, for certain relatively simple cases. 

Under Commission Rule 2200.120, where the parties consent thereto, the Chief Administrative 

Law Judge may assign a Settlement Judge to a pending proceeding to aid the parties in disposing 

of cases. In addition, where the aggregate amount of the penalty sought by the Secretary of 

Labor is $100,000 or greater, the Mandatory Settlement procedure goes into effect. The 

Settlement Judge appointed by the Chief Administrative Law Judge has full control of the 

proceeding and may require that the parties’ representatives be accompanied by officials having 

full settlement authority. This procedure has aided the Review Commission in disposing of 

some extremely complex cases, with the approval of all parties. 

The Simplified Proceedings process has been expanded to include cases where proposed 

penalties are not more than $20,000, and up to $30,000, when found eligible by the Chief 

Administrative Law Judge. The Simplified Proceedings process allows parties with relatively 

simple cases to have their “day in court” unencumbered by the formal Rules of Procedure and 

evidence, while ensuring that due process requirements will be maintained. Under this process, a 

business, with or without counsel, can present its case before an Administrative Law Judge and 

receive a prompt decision. Most paperwork, including legal filings, has been eliminated so that 

justice can be rendered swiftly and inexpensively. The process is intended to reduce the time 

and legal expenses to employers contesting relatively small penalty cases. 

3 
Performance Goals and Results 

OSHRC’s case resolution strategic goal is straightforward: To ensure fair, just, and expeditious 

adjudication of disputes brought before the Commission and its Administrative Law Judges. The 

Review Commission’s Strategic Plan covering the period FY 2010 - 2015 reflects this objective. 

It also reflects the Review Commission’s overall goal of management excellence. 

Commission Function 

The function of the Commissioners is to review and decide cases contested under the Act, 

following an initial decision by an Administrative Law Judge. This higher level of review must 

be prompt, fair, and protective of the parties’ rights, consistent with our overall strategic goals. 

In FY 2013, the Commission had 31 cases pending at the beginning of the year. It received 25 

new cases and resolved 20 cases by year-end. Thus, the Commission entered FY 2014 with 36 

cases pending review. 

The Commission operated with only two Commissioners during nine months of FY 2013 and 

with only one Commissioner during three months of FY 2013. This was the result of one 

Commissioner’s term expiring in FY 2011 and another Commissioner’s term expiring in April 

2013 (this Commissioner was reappointed in August 2013). 

New performance goals have been developed for fiscal years 2010, 2011, 2012, and 2013 to 

support the FY 2010 – 2015 Strategic Plan. The following table provides the performance goals 

and results for FY 2009 – FY 2013: 

Outcome 

Goals 

Performance 

Measures 

FY 2009 

Actual 

(Target) 

FY 2010 

Actual 

(Target) 

FY 2011 

Actual 

(Target) 

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

Reduce the Percent of 18% New Goal New Goal New Goal New Goal 

length of time cases over 2 Target developed developed developed developed 

to resolve years old not met for FY for FY for FY for FY 

Commission- disposed of (75%) 2010 2011 2012 2013 

level cases at the 

Commission 

level 

Reduce the Percent of 100% New Goal New Goal New Goal New Goal 

length of time priority cases Target developed developed developed developed 

to resolve disposed of met for FY for FY for FY for FY 

priority cases within 6 

months 

(100%) 2010 2011 2012 2013 

4 
 

 

 

Outcome 

Goals 

Performance 

Measures 

FY 2009 

Actual 

(Target) 

FY 2010 

Actual 

(Target) 

FY 2011 

Actual 

(Target) 

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

Resolve the All cases New Goal 20% 80% Completed Completed 

oldest cases docketed at developed Target Target by end of by end of 

on the Review the to support not met met FY 2011 FY 2011 

Commission’s Commission FY 2010 – (30% of (70% of 

docket. level prior to 

2008 

resolved. 

2015 

Strategic 

Plan 

oldest 

cases) 

oldest 

cases) 

Reduce the Average age New Goal 32 months 15 months 18 months 21 months 

average age of of open developed Target Target Target Target 

open cases at cases. to support met met met met 

the FY 2010 – (41 (36 (33 (30 months 

Commission- 2015 months or months or months or or less) 

level.* Strategic 

Plan 

less) less) less) 

Resolve all Percent of New Goal 100% 100% 100% 100% 

priority cases priority cases developed Target Target Target Target 

in a timely disposed of to support met met met met 

manner. within 6 

months. 

FY 2010 – 

2015 

Strategic 

Plan 

(100%) (100%) (100%) (100%) 

* As of September 30, 2009, and September 30, 2010, the average (mean) period of time for a case on the Review Commission’s docket was 

46 months, and 32 months, respectively. The Review Commission’s revised Strategic Plan (FY 2010- 2015) anticipated reducing this 

average to 24 months by the end of FY 2015. 

The Commission met all of its Commission-level case resolution targets in FY 2013. 

5 
 

 

 

 

 

 

 

 

 

 

The following table summarizes actual Commission case activity for fiscal years 2010, 2011, 

2012 and 2013, and provides estimated case activity for fiscal years 2014 and 2015. 

Commission Case Activity 

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 

Actual Actual Actual Actual Estimate Estimate 

New Cases: 

Cases Directed for 

Review: 24 24 14 24 24 24 

Other New Cases: 

Interlocutory 

Appeals 0 6 2 0 2 2 

Remands 0 0 3 1 2 2 

Other 0 0 0 0 0 0 

Total Other New 

Cases: 0 6 5 1 4 4 

Total New Cases: 24 30 19 25 28 28 

Case Inventory 

from Prior Year: 22 31 35 31 36 37 

Total Caseload: 46 61 54 56 64 65 

Dispositions: 15 26 23 20 27 27 

Case Inventory, 

End of Year: 31 35 31 36 37 38 

6 
 

Administrative Law Judge Function 

The function of the Review Commission’s Administrative Law Judges is to conduct formal 

hearings and related proceedings in a fair, just, and expeditious manner, consistent with 

OSHRC’s overall strategic goals. 

The Administrative Law Judge function began the fiscal year with 1,154 cases in its inventory 

and received 2,215 new cases during the year, for a total of 3,369 cases. A total of 2,460 cases 

were disposed of, leaving 909 cases in the inventory at the end of the fiscal year. 

The following table provides the performance goals and results for this function for FY 2009-

2013. 

Outcome Goals Performance 

Measures 

FY 2009 

Actual 

(Target) 

FY 2010 

Actual 

(Target) 

FY 2011 

Actual 

(Target) 

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

Ensure that a 

significant 

proportion of noncomplex cases at 

the ALJ level are 

resolved in less 

than one year. 

Percent 

within one 

year. 

98% 

Target 

met 

(98%) 

98% 

Target 

met 

(98%) 

98% 

Target 

met 

(98%) 

96% 

Target 

not met 

(98%) 

95.3% 

Target 

not met 

(98%) 

Ensure that a 

significant 

proportion of 

complex cases at 

the ALJ level are 

resolved in less 

than one year. 

Percent 

within one 

year.* 

98% 

Target 

exceeded 

(95%) 

89% 

Target not 

met 

(95%) 

84% 

Target 

not met 

(95%) 

87% 

Target 

not met 

(95%) 

85.6% 

Target 

not met 

(95%) 

*Note: For FY 2009, the target case resolution period for complex cases at the ALJ level was 18 months (540 days). In accordance with the 

Review Commission’s revised Strategic Plan (FY 2010- 2015), the target period has been reduced to one year commencing in FY 2010. 

The Office of the Chief Administrative Law Judge has operated at less than full capacity due to 

vacancies which had occurred in the past three years, including two ALJ retirements in the 

summer of FY 2013. This, along with the significant increase in our caseload and its complexity, 

had impacted the time in resolving cases. However, all of the judicial vacancies were 

expeditiously filled and, as of the end of FY 2013, we had a full complement of ALJs. 

Nevertheless, our end-of-the year case inventory was 48.5 percent higher in FY 2012 than it was 

in FY 2009 and in FY 2013 was 17 percent above that of FY 2009. 

7 
 

 

 

 

 

 

 

 

 

The following table provides actual Administrative Law Judge workloads for fiscal years 2010, 

2011, 2012, and 2013, and estimated workloads for fiscal years 2014 and 2015. 

FY 2010 

Actual 

FY 2011 

Actual 

FY 2012 

Actual 

FY2013 

Actual 

FY 2014 

Estimate 

FY 2015 

Estimate 

OSHA 

Inspections*: 40,942 40,648 40,961 39,228 37,635 39,400 

Administrative Law Judge Workload: 

a. Case Inventory, 

Start of Year 777 983 1,345 1,154 909 784 

b. New Cases 2,565 3,175 2,696 2,215 2,400 2,500 

c. Total Caseload 3,342 4,158 4,041 3,369 3,309 3,284 

d. Disposals** 

(1) With 

Hearing 

(2) Mandatory 

Settlement 

Conferences 

(3) Without 

Hearing 

107 

2,252 

111 

2,702 

95 

2,792 

68 

81 

2,311 

75 

80 

2,370 

75 

80 

2,400 

e. Total 

Dispositions 2,359 2,813 2,887 2,460 2,525 2,555 

Total Case 

Inventory, 

End of Year 983 1,345 1,154 909 784 729 

*Provided by OSHA. 

**In prior Performance and Accountability Report presentations, the category “With Hearing” included both adjudicatory 

hearings and mandatory settlement conference hearings. To improve transparency and accuracy, adjudicatory hearings and 

mandatory settlement conference hearings are now reported separately starting with FY 2013. 

8 
Office of the Executive Director Function 

The Office of the Executive Director provides administrative services to support the Review 

Commission in fulfilling its mission. 

The Executive Director function provides operational management for the agency, including 

procurement, information technology management, human resources management, budget and 

financial management, and administrative services. The day-to-day tasks of this office are led by 

the Executive Director and include: 

	 Supporting the development and implementation of the Agency’s strategic goals; 

	 Maintaining and enhancing a website to provide the public with access to Review 

Commission information; 

	 Providing agency-wide support in the areas of finance, budget, procurement and contracting, 

human resources, equal opportunity and general administrative services; 

	 Providing personnel, payroll, benefits, reproduction, mail services, and travel assistance to 

agency employees; 

	 Procuring goods and services, maintenance and needed repairs of equipment, training, 

reference materials, supplies and office space; 

	 Implementing case management and administrative systems through information technology 

hardware and software; 

	 Developing and maintaining computer systems and information security enhancements; and 

	 Enhancing telecommunications and improving technology efficiency and effectiveness. 

9 
The following performance goals have been developed for fiscal years 2011, 2012, and 2013 to 

support the FY 2010 – 2015 Strategic Plan: 

Outcome 

Goals 

Performance 

Measures 

FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual* 

(Target) 

Invest in human One percent of basic .45% .54% of basic .42% of basic 

capital by payroll devoted to Target partially payroll to payroll to 

increasing staff staff training and met training/62% of training/53% of 

development and development by FY (.45% of basic staff had 12 staff received 12 

training 2015, and no fewer payroll to training hours of hours of 

opportunities than 24 hours and 10 hours) training* training 

and increasing training per staff Target not met Target not met 

employees’ member per year. (.55% of basic (.55 of basic 

capabilities and payroll to payroll to training 

potential. training and 12 

hours) 

and 12 hours) 

Examine and Percentage of One position One position No additional 

identify positions identified identified insourced. No positions 

contracted appropriate for other position identified for 

positions insourcing that are eligible insourcing 

appropriate for insourced 

insourcing. Target met 

(Positions 

identified) 

Target met 

(Insource 

position 

identified and 

identify 

additional 

positions to 

insource) 

Target met 

(Insource any 

additional 

positions 

identified) 

10 
 

 

Outcome 

Goals 

Performance 

Measures 

FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual* 

(Target) 

Use of 360 All supervisors Feedback Feedback Feedback 

degree subject to 360 degree Instrument Instrument used Instrument used 

employee- feedback and developed to evaluate to evaluate 

supervisor feedback is used to supervisors supervisors 

feedback ensure that 

mechanisms. individual and 

organizational 

effectiveness goals 

are being met. 

Target met

 (Appropriate 

feedback 

instrument 

developed) 

Target met

 (Feedback 

mechanism used 

to evaluate all 

supervisors) 

Target met

 (Feedback 

mechanism used 

to evaluate all 

supervisors) 

*The ability to fund training during FY 2013 was severely impacted by the six month Continuing Resolution (CR) and by 

Sequestration. 

11 
 

Analysis of Financial Statements 

The Review Commission has had biennial audits of its financial statements from 1996 through 

2002. Consistent with the Accountability of Tax Dollars Act of 2002, OSHRC began annual 

audits in FY 2003. OSHRC has received an “unqualified” opinion for each biennial and annual 

review conducted by an independent auditor. 

Since 2002, the Review Commission has contracted with the Administrative Resources Center, 

Bureau of the Fiscal Service (formerly Bureau of the Public Debt – BPD), for accounting 

services. The Administrative Resources Center prepared the Review Commission’s FY 2013 

financial statements, which include comparative data for FY 2012. The principal financial 

statements include the Balance Sheet, Statement of Net Cost, Statement of Changes in Net 

Position, and Statement of Budgetary Resources. 

The changes described in the analyses below generally indicate that the budget execution process 

remains effective, given improved budget management, higher payroll costs, and higher costs for 

goods and services to maintain operations and fulfill our mission. The analyses also show the 

impact of Sequestration which reduced the Review Commission’s overall funding in FY 2013. 

Analysis of the Balance Sheet 

OSHRC’s assets in fiscal year 2013 were $3,426,837 as of September 30, 2013. This represents 

a decrease of $49,296 from fiscal year 2012. The Fund Balance with Treasury of $3,387,788 

represents OSHRC’s largest asset as of September 30, 2013. This is a decrease of approximately 

1 percent from fiscal year 2012 and represents approximately 98 percent of the agency’s total 

assets. General Property, Plant, and Equipment account for approximately 1.12 percent of 

OSHRC’s total assets as of September 30, 2013. The net fixed asset value of $38,249 equals the 

cost less accumulated depreciation and represents the current book value of those assets. 

OSHRC’s liabilities in fiscal year 2013 totaled $834,384 as of September 30, 2013. This is a 

decrease of $417,860 from fiscal year 2012. The accounts payable balance at September 30, 

2013, was $114,001, an increase of $27,487 from September 30, 2012. Unfunded annual leave 

decreased $100,104 in 2013 from 2012. Unfunded annual leave represents 63 percent of total 

agency liabilities. 

Net Position is the difference between total assets and total liabilities. The total net position for 

fiscal year 2013 increased by $368,564 from fiscal year 2012. 

Analysis of Statement of Net Cost 

The Statement of Net Cost shows the net cost of operations for the agency, and it is broken out 

between OSHRC’s two major programs, Administrative Law Judge and Commission. The Total 

net cost of operations in 2013 was $11,161,796, a decrease of $769,908, or 6.45 percent less than 

the 2012 net cost of operations of $11,931,704. 

12 
 

Analysis of the Statement of Changes in Net Position 

The Statement of Changes in Net Position reports the change in the agency’s net position during 

the reporting period. The net position consists of two components, the unexpended 

appropriations and the cumulative results of operations. The Net Position increased $368,564 in 

2013 from 2012, a change of approximately 17 percent. 

Analysis of the Statement of Budgetary Resources 

The Statement of Budgetary Resources presents how the budgetary resources were made 

available and the status of the budgetary resources at the end of the reporting period. The total 

budgetary resources must always equal the total status of budgetary resources. For fiscal year 

2013, OSHRC had total budgetary resources of $12,113,160, which is $597,697 less than in 

2012. 

Management Assurances 

Systems, Controls, and Legal Compliance 

The Review Commission is in compliance with the Federal Managers Financial Integrity Act and 

OMB Circular A-123, Management’s Responsibility for Internal Control. The system of internal 

controls for this agency is functioning well. It provides reasonable assurance as to the efficiency 

and effectiveness of programs and operations, reliability of financial and performance 

information, and compliance with laws and regulations. These controls satisfy the requirements 

of the Federal Managers’ Financial Integrity Act. In addition, the appropriate policies and 

controls are in place to mitigate the risk of fraud and inappropriate charge card practices. 

The Review Commission is a small agency and does not have a separate Inspector General 

Office. Therefore, the Review Commission’s management team assumes the responsibility for 

assessing the Agency’s internal operations and determining if there are any weaknesses that need 

correction. In FY 2013, two program reviews took place: an audit of FY 2013 financial 

statements, and an audit of computer and information security. 

Financial Audit 

The Review Commission has had annual audits of its financial statements since FY 2003, 

including reviews of the adequacy of the Review Commission’s internal control systems. The 

Review Commission has received an unqualified opinion for each financial audit conducted, 

including the FY 2013 audit. 

With regard to financial management, the National Finance Center (NFC) provided payroll 

services, and the Bureau of the Fiscal Service (BFS) provided accounting, disbursement, and 

13 
 

financial statement preparation services for the agency. Accordingly, certain aspects of the 

Review Commission’s financial management system are largely influenced by the practices and 

procedures of the NFC and the BFS. 

In addition to the practices and procedures of the NFC and BFS, the Review Commission has 

established certain internal controls and procedures that safeguard assets and ensure that 

obligations and disbursements are made consistent with management’s direction. For example, 

BFS reports are reviewed and reconciled to assure that the agency’s obligation and disbursement 

actions are properly recorded and that the year-end financial statements are correctly stated. The 

agency’s Budget and Finance Office also prospectively certifies funds availability for all 

obligations. In addition, the Office of the Executive Director conducts periodic reviews of 

internal systems including travel, payroll, and procurement. 

The FY 2013 financial audit resulted in an “unqualified” opinion with no reported material 

weaknesses or other significant deficiencies. Generally, the system of internal controls for this 

Agency is functioning well. It provides reasonable assurance as to the efficiency and 

effectiveness of programs and operations, reliability of financial and performance information, 

and compliance with laws and regulations. These controls satisfy the requirements of the Federal 

Managers' Financial Integrity Act. As previously mentioned, the Review Commission has had 

annual audits of its financial statements since 2003, including reviews of the adequacy of the 

Review Commission’s internal control systems. The Review Commission has received an 

unqualified opinion for each audit conducted. 

The Review Commission contracts with the Treasury Franchise Fund, Administrative Resource 

Center, Bureau of the Fiscal Service, for accounting, disbursement, and travel services, and with 

the National Finance Center for payroll and personnel services. In addition to the Agency’s 

internal controls and procedures that safeguard assets and ensure that obligations and 

disbursements are made consistent with management’s direction, the BFS and the NFC have 

established practices and procedures that assure appropriate internal controls. The two agencies’ 

internal control systems are evaluated independently. 

Improper Payments 

The Review Commission is pleased to report that no improper payments were made in FY 2013. 

The Agency continued the practice of reviewing the General Services Administration (GSA) 

Excluded Parties List (EPLS) and the System for Awards Management (formerly Central 

Contractor Registry) prior to awarding contracts and purchase orders. All payments made in FY 

2013 were verified using the method above, with the exception of payments to Federal vendors, 

payroll and credit card payments. 

The Agency attributes progress made in eliminating improper payments to the implementation of 

the program integrity activities outlined in our “Do Not Pay Implementation Plan.” The plan, 

which was implemented in FY 2013, requires Agency staff responsible for processing invoices to 

focus on prevention, detection, and recovery. Prevention activities, which are executed prior to 

14 
the payment of an invoice, include pre-payment audits, risk prioritization, and predictive 

modeling. Transactions that are identified as being “high risk” are subject to a second level of 

review prior to being forwarded to the Certifying Official for approval for payment. Detection 

activities, which are performed subsequent to payment, are based largely on reports generated by 

the entity within the Agency that is responsible for analyzing invoice processing activities. For 

example, the Review Commission analyzes a monthly report detailing the cumulative total and 

number of invoices processed during the previous 30 day reporting period. Agency staff perform 

detection activities on a quarterly basis to identify payment patterns or anomalies that need to be 

isolated and subjected to additional review. Based on the success of the prevention and detection 

activities, the Review Commission has avoided the need to exercise recovery or collection 

activities to recapture improperly made payments. 

Computer and Information Security Program 

Since FY 2003, the Review Commission has contracted for annual independent evaluations of its 

computer and information security programs, consistent with the Federal Information Security 

Management Act (December 17, 2002) which was signed into law as part of the E-Government 

Act (Public Law 107-347). These evaluations are conducted under the requirements of the 

Government Information Security Reform Act (the predecessor to Federal Information Security 

Management Act (FISMA)), as well as the Office of Management and Budget’s (OMB) 

implementing guidelines, and National Institute of Standards and Technology (NIST) guidance. 

Our 2013 FISMA audit has revealed no material weaknesses. OSHRC resolved its material 

weaknesses from its 2012 audit by upgrading and documenting its Certification and 

Authorization (C&A) process as well as updating directives concerning the security of the 

systems it maintains. OSHRC will continue improving its security posture, and necessary system 

security plans so that we continue to comply with NIST and OMB standards. OSHRC tested its 

continuity of operations plan (COOP) in January 2013, February 2013, and April 2013 during 

Department of Homeland Security exercises, and is in the process of fine-tuning the plan to fully 

incorporate all newly adopted technologies. 

The executive summary for the current (FY 2013) FISMA Program Review Report reveals that 

the Review Commission continues to take steps to enhance its computer security posture. 

The provisions of the Review Commission’s security policy directive apply to all employees and 

contractors who use our computer and network systems or gain access to our computer generated 

information. 

The agency’s information security program will, at a minimum, continue to implement 

appropriate recommendations made by the independent evaluator; incorporate performance 

measures to ensure that the security plan is practiced throughout the life cycle of the agency’s 

system; establish additional personnel controls for sensitive information; monitor procedures for 

program effectiveness and compliance with security requirements; assure that systems and 

applications operate effectively and provide appropriate confidentiality, integrity and 

15 
availability; and protect information commensurate with the level of risk and magnitude of harm 

resulting from loss, misuse, unauthorized access, or modification. 

Performance Data Verification 

For each strategic goal and its related objectives, the Review Commission formulated 

performance measures and numerical annual targets, whenever possible. A few measures are 

necessarily qualitative in nature. Case processing and adjudication measurements are used for 

several objectives contained in our Public Service Goal. Most of the data related to the Public 

Service Goal resides in the Review Commission’s case management/tracking system. In FY 

2013, each of the 2,215 new cases docketed at the Administrative Law Judge level were entered 

into the case management system, and progress on all cases was tracked. In order to assure the 

quality of the data, management periodically reviews the information in the case 

management/tracking system. The agency conducts test runs of the data to ensure that 

information is entered and updated on a timely basis. The reports are used to assess workload 

and make workload adjustments, when necessary. At the end of the year, this data is used by the 

offices to measure performance related to the goals and to improve management. 

Human resource measurements are used for the goals in the Office of the Executive Director 

function. The data related to these goals is maintained and tracked in the Human Resource 

system, which includes spreadsheets to track training costs and hours, employee performance 

files, and personnel files. Management reviews the information for accuracy. 

Limitations of the Financial Statements 

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

of operations of the Review Commission, pursuant to the requirements of 31 U.S.C. 3515(b). 

The statements have been prepared from the books and records of the Review Commission in 

accordance with generally accepted accounting principles (GAAP) for Federal entities and 

formats prescribed by the Office of Management and Budget (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. These statements should be read with the realization 

that they are for a component of the United States Government, a sovereign entity. 

16 
Independent Auditor’s 

Report 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDEPENDENT AUDITOR'S REPORT 

U.S. Occupational Safety and Health Review Commission 

Washington, D.C. 

Report on the Financial Statements 

We have audited the accompanying balance sheets of the U.S. Occupational Safety and Health Review 

Commission (OSHRC) as of September 30, 2013 and 2012, and the related statements of net cost, 

changes in net position, and budgetary resources, for the years then ended (collectively referred to as the 

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

Management’s Responsibility for the Financial Statements 

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

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

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

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

error. 

Auditor’s Responsibility 

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

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

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

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

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

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

assurance about whether the financial statements are free from material misstatements. 

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

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

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

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

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

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

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

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

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

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

our audit opinion. 

17 

1101 MERCANTILE LANE, SUITE 122 ● LARGO, MD 20774 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opinion on the Financial Statements 

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

financial position of OSHRC as of September 30, 2013 and 2012, and its net costs, changes in net 

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

generally accepted in the United States of America. 

Other Matters 

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

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

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

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

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

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

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

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

information and comparing the information for consistency with management's responses to our inquiries, 

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

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

procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 

Report on Internal Control Over Financial Reporting 

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

control over financial reporting (internal control) to design the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of OSHRC’s internal control. Accordingly, we do 

not express an opinion on the effectiveness of OSHRC’s internal control. 

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

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

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

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

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

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

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

governance. 

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

this section and was not designed to identify all deficiencies in internal control over financial reporting 

that might be deficiencies, significant deficiencies or material weaknesses. In our fiscal year 2013 audit, 

we did not identify any deficiencies in internal control that we consider to be a material weakness. 

However, material weaknesses may exist that have not been identified. 

18 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report on Compliance and Other Matters 

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

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

contracts and grant agreements, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts. However, providing an opinion on compliance with those 

provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests disclosed no instances of noncompliance or other matters that are required to the 

reported under Government Auditing Standards or OMB Bulletin No. 14-02. 

Management’s Responsibility for Internal Control and Compliance 

OSHRC’s management is responsible for (1) evaluating effectiveness of internal control over financial 

reporting based on criteria established under the Federal Managers Financial Integrity Act (FMFIA), (2) 

providing a statement of assurance on the overall effectiveness of internal control over financial reporting, 

(3) ensuring OSHRC’s financial management systems are in substantial compliance with FFMIA 

requirements, and (4) ensuring compliance with other applicable laws and regulations. 

Auditor’s Responsibilities 

We are responsible for: (1) obtaining a sufficient understanding of internal controls over financial 

reporting to plan the audit, (2) testing compliance with certain provisions of laws and regulations that 

have a direct and material effect on the financial statements and applicable laws for which OMB Bulletin 

14-02 requires testing, and (3) applying certain limited procedures with respect to the MD&A and other 

RSI. 

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

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

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

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

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

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

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

not be sufficient for other purposes. 

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

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

financial statements and those required by OMB Bulletin 14-02 that we deemed applicable to OSHRC’s 

financial statements for the fiscal year ended September 30, 2013. We caution that noncompliance with 

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

sufficient for other purposes. 

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

and Other Matters 

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

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

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

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

accordance with Government Auditing Standards in considering OSHRC’s internal control and 

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

19 
This report is intended solely for the information and use of the management of OSHRC, OMB, and 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

Largo, Maryland 

December 6, 2013 

20 
Financial Statements 

and Notes 
 

 

 

 

 

 

 

 

 

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

BALANCE SHEET 

AS OF SEPTEMBER 30, 2013 AND 2012 

2013 2012 

Assets: 

Intragovernmental 

Fund Balance With Treasury (Note 2) 

Total Intragovernmental 

$ 3,387,788 

3,387,788 

$ 3,420,650 

3,420,650 

Accounts Receivable, Net (Note 3) 

Property, Equipment, and Software, Net (Note 4) 

Other 

Total Assets $ 

800 

38,249 

-

3,426,837 $ 

(96) 

55,248 

331 

3,476,133 

Liabilities: 

Intragovernmental 

Accounts Payable 

Other (Note 6) 

Total Intragovernmental 

$ 22,196 

31,365 

53,561 

$ 28,696 

88,838 

117,534 

Accounts Payable 

Other (Note 6) 

Total Liabilities (Note 5) $ 

114,001 

666,822 

834,384 $ 

86,514 

1,048,196 

1,252,244 

Net Position: 

Unexpended Appropriations - Other Funds 

Cumulative Results of Operations - Other Funds 

Total Net Position 

Total Liabilities and Net Position 

$ 

$ 

$ 

3,079,491 

(487,038) 

2,592,453 

3,426,837 

$ 

$ 

$ 

2,794,929 

(571,040) 

2,223,889 

3,476,133 

The accompanying notes are an integral part of these financial statements.

 21 
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

STATEMENT OF NET COST 

FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2013 AND 2012 

(In Dollars) 

2013 2012 

Program Costs: 

Administrative Law Judge $ 5,134,426 $ 5,393,130 

Commission $ 6,027,370 $ 6,538,574 

Net Cost of Operations (Note 8) $ 11,161,796 $ 11,931,704 

The accompanying notes are an integral part of these financial statements.

 22 
 

 

 

 

 

 

 

 

 

 

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

STATEMENT OF CHANGES IN NET POSITION 

FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2013 AND 2012 

(In Dollars) 

2013 2012 

Cumulative Results of Operations: 

Beginning Balances $ (571,040) $ (525,216) 

Budgetary Financing Sources: 

Appropriations Used 10,587,507 11,225,366 

Other Financing Sources (Non-Exchange): 

Imputed Financing Sources (Note 10) 

Net Cost of Operations (Note 8) 

Net Change 

Cumulative Results of Operations $ 

658,291 

11,245,798 

(11,161,796) 

84,002 

(487,038) $ 

660,514 

11,885,880 

(11,931,704) 

(45,824) 

(571,040) 

Unexpended Appropriations: 

Beginning Balances $ 2,794,929 $ 2,526,321 

Budgetary Financing Sources: 

Appropriations Received 

Other Adjustments 

Appropriations Used 

Total Budgetary Financing Sources 

Total Unexpended Appropriations 

Net Position 

$ 

$ 

11,666,908 

(794,839) 

(10,587,507) 

284,562 

3,079,491 

2,592,453 

$ 

$ 

11,689,000 

(195,026) 

(11,225,366) 

268,608 

2,794,929 

2,223,889 

The accompanying notes are an integral part of these financial statements. 

23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

STATEMENT OF BUDGETARY RESOURCES 

FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2013 AND 2012 

2013 2012 

Budgetary Resources: 

Unobligated Balance Brought Forward, October 1 $ 1,222,748 $ 1,185,633 

Recoveries of Prior Year Unpaid Obligations 17,854 31,250 

Other changes in unobligated balance (184,590) (172,934) 

Unobligated balance from prior year budget authority, net 1,056,012 1,043,949 

Appropriations 11,056,659 11,666,908 

Spending authority from offsetting collections 489 -

Total Budgetary Resources $ 12,113,160 $ 12,710,857 

Status of Budgetary Resources: 

Obligations Incurred (Note 11) $ 10,923,557 $ 11,488,109 

Unobligated balance, end of year:

 Apportioned (Note 2) 197,471 213,987

 Unapportioned (Note 2) 992,132 1,008,761 

Total unobligated balance, end of year 1,189,603 1,222,748 

Total Budgetary Resources $ 12,113,160 $ 12,710,857 

Change in Obligated Balance

 Unpaid Obligations: 

Unpaid Obligations, Brought Forward, October 1 $ 2,197,903 $ 1,986,137 

Obligations Incurred (Note 11) 10,923,557 11,488,109 

Outlays (gross) (10,906,819) (11,245,093) 

Recoveries of Prior Year Unpaid (17,854) (31,250) 

Unpaid Obligations, End of Year (Gross) 2,196,787 2,197,903 

Uncollected payments: 

Uncollected Customer Payments from Federal Sources, Brought Forward, October 1 - (13,719) 

Change in Uncollected Customer Payments from Federal Sources - 13,719 

Obligated Balance, End of Year $ 2,196,787 $ 2,197,903 

Budget Authority and Outlays, Net: 

Budget authority, gross $ 11,057,148 $ 11,666,908 

Actual offsetting collections (489) (13,719) 

Change in uncollected customer payments from Federal sources - 13,719 

Budget Authority, net $ 11,056,659 $ 11,666,908 

Outlays, gross $ 10,906,819 $ 11,245,093 

Actual offsetting collections (489) (13,719) 

Outlays, net 10,906,330 11,231,374 

Distributed Offsetting Receipts - (2,401) 

Agency outlays, net $ 10,906,330 $ 11,228,973 

The accompanying notes are an integral part of these financial statements. 

24 
 

 

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

STATEMENT OF CUSTODIAL ACTIVITY 

FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2013 AND 2012 

(In Dollars) 

2013 2012 

Revenue Activity: 

Sources of Cash Collections: 

Miscellaneous $ 1,397 $ 2,401 

Total Cash Collections (Note 13) 1,397 2,401 

Disposition of Collections: 

Transferred to Others (by Recipient) 1,397 2,401 

Net Custodial Activity $ - $ -

The accompanying notes are an integral part of these financial statements. 

25 
 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW 

COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

A. Reporting Entity 

The Occupational Safety and Health Review 

Commission (The Review Commission) is an 

independent, adjudicatory agency created by 

the Occupational Safety and Health Act 

(OSHA) of 1970. Its sole statutory mandate is 

to serve as an administrative court providing 

just and expeditious resolution of disputes 

involving OSHA, employers charged with 

violations of Federal safety and health 

standards, and employees and/or their 

representatives. The Review Commission was 

created by Congress as an agency completely 

independent of the Department of Labor to 

ensure that OSHA’s enforcement actions are 

carried out in accordance with the law and that 

all parties are treated consistent with due 

process should a dispute arise. 

The Review Commission reporting entity is 

comprised of General Funds and General 

Miscellaneous Receipts. 

General Funds are accounts used to record 

financial transactions arising under 

congressional appropriations or other 

authorizations to spend general revenues. 

General Fund Miscellaneous Receipts are 

accounts established for receipts of nonrecurring activity, such as miscellaneous 

receipts for services and benefits. 

The Review Commission receives custodial 

collections and holds custodial receivables that 

are non-entity assets and are transferred to 

Treasury at fiscal year end. 

B. Basis of Presentation 

The financial statements have been prepared to 

report the financial position and results of 

operations of the Review Commission. The 

Balance Sheet presents the financial position 

of the agency. The Statement of Net Cost 

presents the agency’s operating results; the 

Statement of Changes in Net Position displays 

the changes in the agency’s equity accounts. 

The Statement of Budgetary Resources 

presents the sources, status, and uses of the 

agency’s resources and follows the rules for 

the Budget of the United States Government. 

The statements are a requirement of the Chief 

Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

the Review Commission in accordance with 

the hierarchy of accounting principles 

generally accepted in the United States of 

America, standards issued by the Federal 

Accounting Standards Advisory Board 

(FASAB), Office of Management and Budget 

(OMB) Circular A-136, Financial Reporting 

Requirements, as amended, and the Review 

Commission accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control the Review 

Commission’s use of budgetary resources. 

The financial statements and associated notes 

are presented on a comparative basis. Unless 

specified otherwise, all amounts are presented 

in dollars. 

26 
C. Basis of Accounting 

Transactions are recorded on both an accrual 

accounting basis and a budgetary basis. Under 

the accrual method, revenues are recognized 

when earned, and expenses are recognized 

when a liability is incurred, without regard to 

receipt or payment of cash. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds. 

D. Fund Balance with Treasury 

Fund Balance with Treasury is the aggregate 

amount of the Review Commission’s funds 

with Treasury in expenditure, receipt and 

deposit fund accounts. Appropriated funds 

recorded in expenditure accounts are available 

to pay current liabilities and finance authorized 

purchases. 

The Review Commission does not maintain 

bank accounts of its own, has no disbursing 

authority, and does not maintain cash held 

outside of Treasury. Treasury disburses funds 

for the agency on demand. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed 

to the Review Commission by other Federal 

agencies and the general public. Amounts due 

from Federal agencies are considered fully 

collectible. Accounts receivable from the 

public include reimbursements from 

employees. An allowance for uncollectible 

accounts receivable from the public is 

established when, based upon a review of 

outstanding accounts and the failure of all 

collection efforts, management determines that 

collection is unlikely to occur considering the 

debtor’s ability to pay. 

F. Property, Equipment, and Software 

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. 

Major alterations and renovations are 

capitalized, while maintenance and repair costs 

are expensed as incurred. The Review 

Commission’s capitalization threshold is 

$50,000 for individual purchases and $500,000 

for bulk purchases. Property, equipment, and 

software acquisitions that do not meet the 

capitalization criteria are expensed upon 

receipt. Applicable standard governmental 

guidelines regulate the disposal and 

convertibility of agency property, equipment, 

and software. The useful life classifications 

for capitalized assets are as follows: 

Description Useful Life (years) 

Office Furniture 7 

Office Equipment 5 

G. Advances and Prepaid Charges 

Advance payments are generally prohibited by 

law. There are some exceptions, such as 

reimbursable agreements, subscriptions and 

payments to contractors and employees. 

Payments made in advance of the receipt of 

goods and services are recorded as advances or 

prepaid charges at the time of prepayment and 

recognized as expenses when the related goods 

and services are received. 

H. Liabilities 

Liabilities represent the amount of funds likely 

to be paid by the Review Commission as a 

result of transactions or events that have 

already occurred. 

The Review Commission reports its liabilities 

under two categories, Intragovernmental and 

With the Public. Intragovernmental liabilities 

represent funds owed to another government 

agency. Liabilities with the Public represent 

funds owed to any entity or person that is not a 

federal agency, including private sector firms 

and federal employees. Each of these 

categories may include liabilities that are 

covered by budgetary resources and liabilities 

not covered by budgetary resources. 

Liabilities covered by budgetary resources are 

liabilities funded by a current appropriation or 

other funding source. These consist of 

27 
 

 

accounts payable and accrued payroll and 

benefits. Accounts payable represent amounts 

owed to another entity for goods ordered and 

received and for services rendered except for 

employees. Accrued payroll and benefits 

represent payroll costs earned by employees 

during the fiscal year which are not paid until 

the next fiscal year. 

Liabilities not covered by budgetary resources 

are liabilities that are not funded by any 

current appropriation or other funding source. 

These liabilities consist of accrued annual 

leave and unemployment insurance. 

I. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is 

adjusted to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and 

unused hours of leave. Funding will be 

obtained from future financing sources to the 

extent that current or prior year appropriations 

are not available to fund annual and other 

types of vested leave earned but not taken. 

Non-vested leave is expensed when used. Any 

liability for sick leave that is accrued but not 

taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon 

the retirement of that individual. Credit is 

given for sick leave balances in the 

computation of annuities upon the retirement 

of Federal Employees Retirement System 

(FERS)-covered employees effective at 50% 

beginning FY 2010 and 100% in 2014. 

J. Accrued and Actuarial Workers’ 

Compensation 

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

by the Review Commission employees for onthe-job injuries. The DOL bills each agency 

annually as its claims are paid, but payment of 

these bills is deferred for two years to allow for 

funding through the budget process. Similarly, 

employees that the Review Commission 

terminates without cause may receive 

unemployment compensation benefits under 

the unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. The liability consists 

of (1) the net present value of estimated future 

payments calculated by the DOL and (2) the 

unreimbursed cost paid by DOL for 

compensation to recipients under the FECA. 

K. Retirement Plans 

The Review Commission employees 

participate in either the CSRS or the FERS. 

The employees who participate in CSRS are 

beneficiaries of the Review Commission 

matching contribution, equal to seven percent 

of pay, distributed to their annuity account in 

the Civil Service Retirement and Disability 

Fund. 

Prior to December 31, 1983, all employees 

were covered under the CSRS program. From 

January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of 

pay and the Review Commission matches any 

employee contribution up to an additional four 

percent of pay. For FERS participants, the 

Review Commission also contributes the 

employer’s matching share of Social Security. 

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, the Review 

Commission remits the employer’s share of the 

required contribution. 

28 
 

The Review Commission recognizes the 

imputed cost of pension and other retirement 

benefits during the employees’ active years of 

service. OPM actuaries determine pension 

cost factors by calculating the value of pension 

benefits expected to be paid in the future and 

communicate these factors to the Review 

Commission for current period expense 

reporting. OPM also provides information 

regarding the full cost of health and life 

insurance benefits. The Review Commission 

recognized the offsetting revenue as imputed 

financing sources to the extent these expenses 

will be paid by OPM. 

The Review Commission does not report on its 

financial statements information pertaining to 

the retirement plans covering its employees. 

Reporting amounts such as plan assets, 

accumulated plan benefits, and related 

unfunded liabilities, if any, is the responsibility 

of the OPM, as the administrator. 

L. Other Post-Employment Benefits 

The Review Commission employees eligible to 

participate in the Federal Employees' Health 

Benefits Plan (FEHBP) and the Federal 

Employees' Group Life Insurance Program 

(FEGLIP) may continue to participate in these 

programs after their retirement. The OPM has 

provided the Review Commission with certain 

cost factors that estimate the true cost of 

providing the post-retirement benefit to current 

employees. The Review Commission 

recognizes a current cost for these and Other 

Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB 

expense is financed by OPM, and offset by the 

Review Commission through the recognition 

of an imputed financing source. 

M. Use of Estimates 

The preparation of the accompanying financial 

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts 

of assets, liabilities, revenues, and expenses. 

Actual results could differ from those 

estimates. 

N. Imputed Costs/Financing Sources 

Federal Government entities often receive 

goods and services from other Federal 

Government entities without reimbursing the 

providing entity for all the related costs. In 

addition, Federal Government entities also 

incur costs that are paid in total or in part by 

other entities. An imputed financing source is 

recognized by the receiving entity for costs 

that are paid by other entities. The Review 

Commission recognized imputed costs and 

financing sources in fiscal years 2013 and 

2012 to the extent directed by accounting 

standards. 

O. Contingencies 

Liabilities are deemed contingent when the 

existence or amount of the liability cannot be 

determined with certainty pending the outcome 

of future events. The Review Commission 

recognizes contingent liabilities in the 

accompanying balance sheet and statement of 

net cost, when it is both probable and can be 

reasonably estimated. The Review 

Commission discloses contingent liabilities in 

the notes to the financial statements when the 

conditions for liability recognition are not met 

or when a loss from the outcome of future 

events is more than remote. 

P. Reclassification 

Certain fiscal year 2012 balances have been 

reclassified, retitled, or combined with other 

financial statement line items for consistency 

with the current year presentation. 

29 
 

 

 

 

 

 

 

NOTE 2. FUND BALANCE WITH TREASURY 

Fund balance with Treasury account balances as of September 30, 2013 and 2012 were as 

follows: 

2013 2012 

Fund Balances: 

Appropriated Funds $ 3,387,788 $ 3,420,650 

Total $ 3,387,788 $ 3,420,650 

Status of Fund Balance with Treasury: 

Unobligated Balance

 Available $ 197,471 $ 213,987 

 Unavailable 992,132 1,008,761 

Obligated Balance Not Yet Disbursed 2,196,788 2,197,902 

Non-Budgetary FBWT 1,397 -

Total $ 3,387,788 $ 3,420,650 

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

in the Treasury accounts. 

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

obligation or commitment. At the start of the next fiscal year, this amount will become part of the 

unavailable balance as described in the following paragraph. 

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

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

adjustments of obligations incurred only during the period for which the appropriation was 

available for obligation or for paying claims attributable to the appropriations. 

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

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand (see also Undelivered Orders at the End of the Period, Note # 12). 

NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2013 and 2012 were as follows: 

2013 2012 

With the Public 

Accounts Receivable $ 800 $ (96) 

Total Accounts Receivable $ 800 $ (96) 

The accounts receivable is primarily made up of employee receivables. The balance in FY 2013 

is money due to employees from National Finance Center (NFC), OSH’s payroll provider. 

Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2013 or 2012. 

30 
 

 

 

 

 

 

 

 

 

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE 

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

Major Class 

Acquisition 

Cost 

Accumulated 

Amortization/ 

Depreciation 

Net Book 

Value 

Furniture & Equipment $ 441,237 $ 402,988 $ 38,249 

Total $ 441,237 $ 402,988 $ 38,249 

Schedule of Property, Equipment, and Software as of September 30, 2012: 

Major Class 

Acquisition 

Cost 

Accumulated 

Amortization/ 

Depreciation 

Net Book 

Value 

Furniture & Equipment $ 441,237 $ 385,989 $ 55,248 

Total $ 441,237 $ 385,989 $ 55,248 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for the Review Commission as of September 30, 2013 and 2012 include liabilities 

not covered by budgetary resources. Congressional action is needed before budgetary resources 

can be provided. Although future appropriations to fund these liabilities are likely and 

anticipated, it is not certain that appropriations will be enacted to fund these liabilities. 

2013 2012 

Unfunded Leave $ 526,088 $ 626,192 

Other Liabilities 1,397 

Total Liabilities Not Covered by Budgetary Resources $ 527,485 $ 626,192 

Total Liabilities Covered by Budgetary Resources 306,899 626,052 

Total Liabilities $ 834,384 $ 1,252,244 

Unemployment Insurance liabilities represent the unfunded liability for actual unemployment 

benefits paid on the Review Commission’s behalf and payable to the DOL. 

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

balance in the accrued annual leave account is reviewed quarterly and adjusted as needed to 

accurately reflect the liability at current pay rates and leave balances. Accrued annual leave is 

paid from future funding sources and, accordingly, is reflected as a liability not covered by 

budgetary resources. Sick and other leave is expensed as taken. 

31 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 6. OTHER LIABILITIES 

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

Current Non Current Total 

Intragovernmental 

Payroll Taxes Payable $ 31,365 $ - $ 31,365 

Total Intragovernmental Other Liabilities 31,365 $ $ - $ 31,365 

With the Public 

Payroll Taxes Payable $ 4,754 $ - $ 4,754 

 Accrued Funded Payroll and Leave 134,584 - 134,584

 Unfunded Leave 526,087 - 526,087

 Custodial Liability 1,397 - 1,397 

Total Public Other Liabilities $ 666,822 $ - $ 666,822 

Other liabilities account balances as of September 30, 2012 were as follows: 

Current Non Current Total 

Intragovernmental 

Payroll Taxes Payable $ 88,838 $ - $ 88,838 

Total Intragovernmental Other Liabilities 88,838 $ $ - $ 88,838 

With the Public

 Payroll Taxes Payable $ 12,708 $ - $ 12,708 

 Accrued Funded Payroll and Leave 409,296 - 409,296

 Unfunded Leave 626,192 - 626,192

 Custodial Liability - -

Total Public Other Liabilities $ 1,048,196 $ - $ 1,048,196 

32 
 

 

 

 

 

 

 

 

NOTE 7. LEASES 

Operating Leases 

The Review Commission occupies office space under lease agreements that are accounted for as 

operating leases. Annual rent for each location is charged by the General Services 

Administration (GSA), which acts as the leasing agent for the Review Commission. The lease 

locations and terms are listed below. 

Location Term Lease Expiration Date 

Atlanta, GA 59 months 01/31/2014 

Denver, CO & Parking 120 months 09/30/2018 & 12/31/2013 

Washington, DC 60 months 04/23/2018 

Lease payments are increased annually based on the adjustments for operating cost and real estate 

tax escalations. Below is a schedule of future payments for the term of the lease. 

Fiscal Year Building 

2014 (Atlanta's expires 1/31/14) $ 1,371,979 

2015 1,417,466 

2016 1,432,897 

2017 1,448,784 

Thereafter (Washington's expires 4/23/18) 905,601 

Total Future Payments $ 6,576,727 

The operating lease amount does not include estimated payments for leases with annual renewal 

options. 

33 
 

 

 

 

 

 

 

 

 

 

NOTE 8. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental costs and revenue represent exchange transactions between the Review 

Commission and other federal government entities, and are in contrast to those with non-federal 

entities (the public). Such costs and revenue are summarized as follows: 

2013 2012 

Administrative Law Judge

 Intragovernmental Costs 

 Public Costs 

 Net Program Costs 

$ 

$ 

1,663,554 

3,470,872 

5,134,426 

$

$ 

1,748,031 

3,645,099

5,393,130 

Commission

 Intragovernmental Costs 

 Public Costs 

 Net Program Costs 

$ 

$ 

1,952,868 

4,074,502 

6,027,370 

$

$ 

2,119,294 

4,419,280

6,538,574 

Total Intragovernmental costs 

Total Public costs 

Total Net Cost 

$ 

$ 

3,616,422 

7,545,374 

11,161,796 

$ 

$ 

3,867,325 

8,064,379 

11,931,704 

NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

The President’s Budget that will include fiscal year 2013 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2014 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2014 Budget of 

the United States Government, with the "Actual" column completed for 2012, has been 

reconciled to the Statement of Budgetary Resources and there were no material differences. 

NOTE 10. IMPUTED FINANCING SOURCES 

The Review Commission recognizes as imputed financing the amount of accrued pension and 

post-retirement benefit expenses for current employees. The assets and liabilities associated with 

such benefits are the responsibility of the administering agency, OPM. For the twelve months 

ended September 30, 2013 and 2012, respectively, imputed financing was as follows: 

2013 2012 

Office of Personnel Management $ 658,291 $ 660,514 

Total Imputed Financing Sources $ 658,291 $ 660,514 

34 
 

 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred and reported in the Statement of Budgetary Resources in 2013 and 2012 

consisted of the following: 

2013 2012 

Direct Obligations, Category A $ 10,923,557 $ 11,488,109 

Total Obligations Incurred $ 10,923,557 $ 11,488,109 

Category A apportionments distribute budgetary resources by fiscal quarters. 

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

For the fiscal years ended September 30, 2013 and 2012, budgetary resources obligated for 

undelivered orders amounted to $1,889,889 and $1,571,852, respectively. 

NOTE 13. CUSTODIAL ACTIVITY 

The Review Commission is an administrative agency collecting for another entity or the General 

Fund. As a collecting entity, the Review Commission measures and reports cash collections and 

refunds. These collections are reported as custodial activity on the “Statement of Custodial 

Activity”. The type of cash collected primarily consists of Freedom of Information Act fees. 

While these collections are considered custodial, they are neither primary to the mission of the 

Review Commission nor material to the overall financial statements. The Review Commission's 

total custodial collections are $1,397 and $2,401 for the years ended September 30, 2013 and 

2012, respectively. 

35 
 

 

 

 

 

 

 

 

 

 

 

NOTE 14. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

The Review Commission has reconciled its budgetary obligations and non-budgetary resources 

available to its net cost of operations. 

2013 2012 

Resources Used to Finance Activities: 

Budgetary Resources Obligated 

Obligations Incurred $ 10,923,557 $ 11,488,109 

Spending Authority From Offsetting Collections and Recoveries (18,343) (31,250) 

Offsetting Receipts - (2,401) 

Net Obligations 10,905,214 11,454,458 

Other Resources 

Imputed Financing From Costs Absorbed By Others 658,291 660,514 

Net Other Resources Used to Finance Activities 658,291 660,514 

Total Resources Used to Finance Activities 11,563,505 12,114,972 

Resources Used to Finance Items Not Part of the Net Cost of Operations (417,811) (227,108) 

Total Resources Used to Finance the Net Cost of Operations 11,145,694 11,887,864 

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

Generate Resources in the Current Period: 16,102 43,840 

Net Cost of Operations $ 11,161,796 $ 11,931,704 

36