FY 2009

U.S. OCCUPATIONAL  SAFETY & HEALTH

REVIEW COMMISSION

FY 2009

       Performance and Accountability Report 
U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

PERFORMANCE AND ACCOUNTABILITY REPORT 

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008 

TABLE OF CONTENTS 

AGENCY HEAD MESSAGE.........................................................................................1 

MANAGEMENT DISCUSSION AND ANALYSIS...............................................................2 

FINANCIAL SECTION 

 INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS......................13

 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL...................................14 

 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND 

 REGULATIONS...................................................................................................15 

 BALANCE SHEET................................................................................................16 

 STATEMENT OF NET COST...................................................................................17 

 STATEMENT OF CHANGES IN NET POSITION..........................................................18 

 STATEMENT OF BUDGETARY RESOURCES............................................................19 

 NOTES TO THE FINANCIAL STATEMENTS..............................................................20 
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2 

Occupational Safety and Health Review Commission 

FY 2009 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 Administration 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. 
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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 defines and 

explains 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. 

As a result, action on important issues may be postponed and issuance of some pending cases 

will be delayed. 

The Review Commission operated during FY 2009 with two Members, and one vacancy. 

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 

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 
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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 close to 39,000 inspections in FY 2009. 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. 

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. 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 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 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. 

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 and associated Outcome Goals covering the period FY 

2009 reflect this objective. In addition to this strategic goal, the Review Commission’s newly 

revised Strategic Plan for 2010 - 2015 (which became effective on October 1, 2009) includes 

additional strategic goals that reflect various management initiatives which will be reported upon 

in the FY 2010 and subsequent Performance Accountability Reports. 
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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 public service goal. 

In FY 2009, the Commission had 20 cases pending at the beginning of the year. It received 22 

new cases and issued 20 cases by year-end. Thus, the Commission entered FY 2010 with 22 

cases pending on review. 

The Commission began and ended FY 2009 with two Commissioners and one vacancy. 

The following table provides the performance goals and results for this function for FYs 2006-

2009. 

Performance Goals Performance 

Indicators 

FY 2006 

Actual 

(Target) 

FY 2007 

Actual 

(Target) 

FY 2008 

Actual 

(Target) 

FY 2009 

Actual 

(Target) 

Reduce the length of 

time to resolve 

Commission-level 

cases 

Percent of cases over 2 

years old disposed of at 

the Commission level 

22% 

Target 

not met 

(100%) 

32% 

Target 

not met 

(100%) 

23% 

Target 

not met 

(100%) 

18% 

Target 

not 

met 

(75%) 

Reduce the length of 

time to resolve 

priority cases 

Percent of priority 

cases disposed of 

within 6 months 

100% 

Target 

met 

(100%) 

100% 

Target 

met 

(100%) 

100% 

Target 

met 

(100%) 

100% 

Target 

met 

(100%) 

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 public service goal. 

The Administrative Law Judge function began the fiscal year with 739 cases in its inventory and 

received 2,058 new cases during the year, for a total of 2,797 cases. A total of 2,020 cases were 

disposed of, leaving 777 cases in the inventory at the end of the fiscal year. 
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The following table provides the performance goals and results for this function for FYs 2006-

2009. 

Performance 

Goals 

Performance 

Indicators 

FY 2006 

Actual 

Target 

FY 

2007 

Actual 

Target 

FY 2008 

Actual 

Target 

FY 2009 

Actual 

Target 

Increase the percent of noncomplex cases at the ALJ 

level that are resolved in less 

than one year 

Percent within 365 

days 

99% 

Target 

exceeded 

(94%) 

99% 

Target 

met 

(97%) 

99% 

Target met 

(99%) 

98 % 

Target 

met. 

(98%) 

Increase the percent of 

complex cases at the ALJ 

level that are resolved within 

18 months (12 months for 

FY 2009). 

Percent within 540 

days (365 days for 

FY 2009) 

99% 

Target 

exceeded 

(94%) 

97% 

Target 

not met 

(98%) 

99% 

Target 

met. 

(99%) 

99% - 18 

months 

96% - 12 

months 

Target 

met 

 (95% - 12 

months) 

Office of Administration Function

The Office of Administration provides administrative services to support the Review 

Commission in fulfilling its mission. 

The Administration function provides strategic planning and operational management for the 

organization. Administration also includes: technology management, computer and information 

security, financial, and administrative services. The day-to-day tasks performed under the 

direction of the Director include: 

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

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

Commission information; 

• Providing agency-wide support in the areas of finance, budget, procurement, 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 
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• Enhancing telecommunications and improving technology efficiency and effectiveness. 
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Analysis of Financial Statements 

The Review Commission 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 Treasury Franchise Fund, 

Administrative Resources Center (Bureau of the Public Debt – BPD), for accounting services. 

The Administrative Resources Center prepared the Review Commission’s FY 2009 financial 

statements, which include comparative data for FY 2008. The principal financial statements 

include the Balance Sheet, Statement of Net Cost, Statement of Net Position, and Statement of 

Budgetary Resources. The Statement of Financing is now part of the Notes to the financial 

statements. 

The changes described in the analyses below generally indicate that OSHRC has been more 

efficient in the obligation of the funds available. This is due to higher payroll costs as well as 

higher costs for goods and services to maintain operations and fulfill our mission. 

Analysis of the Balance Sheet 

OSHRC’s assets in fiscal year 2009 were $3,542,481 as of September 30, 2009. This represents 

an increase of $678,776 from fiscal year 2008. The Fund Balance with Treasury of $3,447,643 

represents OSHRC’s largest asset as of September 30, 2009. This is an increase of 

approximately 27.5 percent from fiscal year 2008 and represents approximately 97.3 percent of 

the agency’s total assets. General Property, Plant, and Equipment account for approximately 2.7 

percent of OSHRC’s total assets as of September 30, 2009. The net fixed asset value of $94,509 

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

assets. 

OSHRC’s liabilities in fiscal year 2009 totaled $1,203,643 as of September 30, 2009. This is an 

increase of $37,654 from fiscal year 2008. The accounts payable balance at September 30, 2009, 

was $149,731, an increase of $32,207 from September 30, 2008. Unfunded annual leave 

increased $38,227 in 2009 from 2008. Unfunded annual leave represents approximately 53 

percent of total agency liabilities. 

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

fiscal year 2009 increased by $641,122 from fiscal year 2008. 

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 
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net cost of operations in 2009 was $10,685,018, a decrease of $948,099, or 8.15 percent less than 

the 2008 net cost of operations of $11,633,117. 

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 $641,122 in 

2009 from 2008, a change of approximately 38 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 

2009 OSHRC had total budgetary resources of $12,013,166, which is $177,850 more than in 

2008. 

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. 

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 2009, two program reviews took place: an audit of FY 2009 financial 

statements, and an audit of computer and information security. 

Financial Audit 

The Review Commission has had biennial, and more recently, annual audits of its financial 

statements, 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 FY 2008.
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With regard to financial management, the National Finance Center (NFC) provided payroll 

services, and the Bureau of Public Debt (BPD) provided accounting, disbursement, and 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 BPD. 

In addition to the practices and procedures of the NFC and BPD, 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, 

BPD 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 

payments and conducts periodic reviews of internal systems including travel, payroll, and 

procurement. 

The 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 biennial, and 

more recently, annual audits of its financial statements, 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 Public Debt (BPD)), 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 BPD and the National 

Finance Center have established practices and procedures that assure appropriate internal 

controls. The two agencies’ internal control systems are evaluated independently. 

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. 
11

Our FISMA audits have revealed no material weakness in policies and procedures. OSHRC has 

completed its Certification and Authorization (C&A) program, updated all security processes, 

and has a system security plan that complies with NIST standards. OSHRC tested its continuity 

of operations plan (COOP) during a May 2008 Department of Homeland Security exercise and is 

in the process of fine-tuning the plan to fully incorporate all newly adopted technologies. 

The executive summary for the current (FY 2009) 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 Review 

Commission 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 

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 

2009, each of the 2,058 new cases filed 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. 

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). 
12

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. 
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14
15
The accompanying notes are an integral part of these statements. 

16 

2009 2008

Assets:

Intragovernmental:

Fund Balance With Treasury (Note 2) 3,447,643 $ 2,703,914 $ 

Total Intragovernmental 3,447,643 2,703,914 

Accounts Receivable (Note 3) 329 825 

General Property, Plant and Equipment, Net (Note 4) 94,509 158,966 

Total Assets 3,542,481 $ 2,863,705 $ 

Liabilities (Notes 5 and 6):

Intragovernmental:

Accounts Payable 16,653 $ 7,435 $ 

Other (Note 6) 66,307 56,809 

Total Intragovernmental 82,960 64,244 

Accounts Payable 133,078 110,089 

Other (Note 6) 987,605 991,656 

Total Liabilities 1,203,643 $ 1,165,989 $ 

Net Position:

Unexpended Appropriations 2,889,409 $ 2,145,394 $ 

Cumulative Results of Operations (550,571) (447,678) 

Total Net Position 2,338,838 $ 1,697,716 $ 

Total Liabilities and Net Position 3,542,481 $ 2,863,705 $ 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2009 AND 2008

(In Dollars)
The accompanying notes are an integral part of these statements. 

17 

2009 2008

Program Costs:

Administrative Law Judge 4,658,667 $ 5,188,370 $ 

Commission 6,026,351 6,444,747 

Net Cost of Operations (Note 8) 10,685,018 $ 11,633,117 $ 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)
The accompanying notes are an integral part of these statements. 

18 

2009 2008

Cumulative Results of Operations:

Beginning Balances (447,678) $ (414,794) $ 

Budgetary Financing Sources:

Appropriations Used 9,992,029 11,041,537 

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 9) 590,096 558,696 

Total Financing Sources 10,582,125 11,600,233 

Net Cost of Operations 10,685,018 11,633,117 

Net Change (102,893) (32,884) 

Cumulative Results of Operations (550,571) $ (447,678) $ 

Unexpended Appropriations:

Beginning Balances 2,145,394 $ 3,443,383 $ 

Budgetary Financing Sources:

Appropriations Received 11,186,000 10,696,000 

Other Adjustments (449,956) (952,452) 

Appropriations Used (9,992,029) (11,041,537) 

Total Budgetary Financing Sources 744,015 (1,297,989) 

Total Unexpended Appropriations 2,889,409 $ 2,145,394 $ 

Net Position 2,338,838 $ 1,697,716 $ 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)
The accompanying notes are an integral part of these statements. 

19 

2009 2008

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 1, $ 1,951,978 187,176 $ 

Recoveries of Prior Year Unpaid Obligations 89,946 139,790 

Budget Authority

Appropriation 11,186,000 10,696,000 

Less: Permanently Not Available 449,956 952,452 

Total Budgetary Resources 12,013,166 $ 11,835,316 $ 

Status of Budgetary Resources:

Obligations Incurred

Direct (Note 11) 10,553,100 $ 10,648,140 $ 

Unobligated Balance

Apportioned 660,181 97,759 

Unobligated Balance Not Available 799,885 1,089,417 

Total Status of Budgetary Resources 12,013,166 $ 11,835,316 $ 

Change in Obligated Balance:

Obligated Balance, Net

Unpaid Obligations, Brought Forward, October 1 1, $ 2,101,252 516,738 $ 

Obligations Incurred Net 10,553,100 10,648,140 

Less: Gross Outlays 9,992,315 11,092,864 

Less: Recoveries of Prior Year Unpaid

Obligations, Actual 89,946 139,790 

Obligated Balance, Net, End of Period

Unpaid obligations 1,987,577 1,516,738 

Total, Unpaid Obligated Balance, Net, End of Period 1,987,577 $ 1,516,738 $ 

Net Outlays:

Gross Outlays 9,992,315 $ 11,092,864 $ 

Net Outlays 9,992,315 $ 11,092,864 $ 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2009 AND 2008

(In Dollars)
U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW 

COMMISSION 

 NOTES TO THE FINANCIAL STATEMENTS 

20

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, net cost of 

operations, changes in net position, and the 

status and availability of budgetary resources 

of The Review Commission. 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 approved by the principals of the 

Federal Accounting Standards Advisory Board 

(FASAB), OMB Circular A-136, Financial 

Reporting Requirements and The Review 

Commission’s 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 statements consist of the Balance Sheet, 

Statement of Net Cost, Statement of Changes 

in Net Position, and the Statement of 

Budgetary Resources. In accordance with 

OMB Circular A-136, the financial statements 

and associated notes are presented on a 

comparative basis. Unless specified otherwise, 

all amounts are presented in dollars. 

C. Budgets and Budgetary Accounting 

Congress usually enacts appropriations to 

permit The Review Commission to incur 
21 

obligations for specified purposes. In fiscal 

years 2009 and 2008, The Review Commission 

was accountable for General Fund 

appropriations. The Review Commission 

recognizes budgetary resources as assets when 

cash (funds held by the U.S. Treasury) is made 

available through the Department of Treasury 

General Fund warrants. 

D. 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 liabilities are incurred, without regard to 

receipt or payment of cash. 

These financial statements were prepared 

following accrual accounting. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds. 

Balances on these statements may therefore 

differ from those on financial reports prepared 

pursuant to other OMB directives that are 

primarily used to monitor and control The 

Review Commission's use of budgetary 

resources. 

E. Revenues & Other Financing Sources 

The Review Commission receives all funding 

through Congressional appropriation from the 

budget of the United States. Annual 

appropriations are used, within statutory limits, 

for salaries and administrative expenses and 

operating and capital expenditures for essential 

personal property. 

Appropriations are recognized as revenues at 

the time the related program or administrative 

expenses are incurred. Appropriations 

expended for capitalized property and 

equipment are recognized as expenses when an 

asset is consumed in operations. 

The Review Commission recognizes as an 

imputed financing source the amount of 

accrued pension and post-retirement benefit 

expenses for current employees paid on its 

behalf by the Office of Personnel Management 

(OPM). 

F. Taxes 

The Review Commission, as a Federal entity, 

is not subject to Federal, State, or local income 

taxes, and, accordingly, no provision for 

income taxes has been recorded in the 

accompanying financial statements. 

G. Fund Balance with Treasury 

The U.S. Treasury processes cash receipts and 

disbursements. Funds held at the Treasury are 

available to pay agency liabilities. The 

Review Commission does not maintain cash in 

commercial bank accounts or foreign currency 

balances. 

H. Accounts Receivable 

Accounts receivable consists of amounts owed 

to The Review Commission by other Federal 

agencies and the 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. 

I. General Property, Plant and Equipment 

The Review Commission's property and 

equipment represent furniture, fixtures, 

equipment, and information technology 

hardware which are recorded at original 

acquisition cost and are depreciated or 

amortized using the straight-line method over 

the estimated useful life of the asset. Major 

alterations and renovations are capitalized, 

while maintenance and repair costs are charged 

to expense as incurred. The Review 

Commission's capitalization threshold is 

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

for bulk purchases. Applicable standard 
22 

governmental guidelines regulate the disposal 

and convertibility of agency property and 

equipment. The useful life classifications for 

capitalized assets are as follows: 

Description Useful Life (years)

Office Furniture 7 

Office Equipment 5 

J. 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. 

K. Liabilities

Liabilities represent the amount of monies or 

other resources likely to be paid by The 

Review Commission as a result of transactions 

or events that have already occurred. 

Intragovernmental liabilities are claims against 

The Review Commission by other Federal 

agencies. Liabilities covered by budgetary or 

other resources are those liabilities for which 

Congress has appropriated funds or funding is 

otherwise available to pay amounts due. 

Liabilities for which an appropriation has not 

been enacted or other funds received are, 

therefore, classified as not covered by 

budgetary resources. No liability can be paid, 

however, absent an appropriation or other 

funding. There is no certainty that the 

appropriation will be enacted. Additionally, 

the Government, acting in its sovereign 

capacity, can abrogate liabilities. Liabilities 

not covered by budgetary resources on the 

Balance Sheet are equivalent to amounts 

reported as components requiring or generating 

resources on the Reconciliation of Net Cost to 

Budget. 

L. Accounts Payable 

Accounts payable consists primarily of 

amounts owed to other Federal agencies and 

the public for contracts for goods or services, 

such as leases, utilities, telecommunications 

and consulting and support services. 

M. 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. 

Nonvested 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 upon the 

retirement of that individual. 

N. 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. A liability is recorded for 

actual and estimated future payments to be 

made for workers' compensation pursuant to 

the FECA. 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 
23 

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. 

O. Retirement Plans 

The Review Commission employees 

participate in either the Civil Service 

Retirement System (CSRS) or the Federal 

Employees' Retirement System (FERS). The 

employees who participate in CSRS are 

beneficiaries of The Review Commission's 

contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil 

Service Retirement and Disability Fund. 

FERS went into effect on January 1, 1987. 

FERS and Social Security automatically cover 

most employees hired after December 31, 

1983. Employees hired prior to January 1, 

1984 elected to join either FERS and Social 

Security, or remain in CSRS. All employees 

are eligible to contribute to the Thrift Savings 

Plan (TSP). For those employees participating 

in the FERS, a TSP account is automatically 

established and The Review Commission 

makes a mandatory one percent contribution to 

this account. In addition, The Review 

Commission makes matching contributions, 

ranging from one to four percent, for FERS 

eligible employees who contribute to their TSP 

accounts. Matching contributions are not 

made to the TSP accounts established by 

CSRS employees. 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. 

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. 

P. 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 and liabilities and disclosure of 

contingent assets and liabilities at the date of 

the financial statements and the reported 

amounts of revenues and expenses during the 

reporting period. Actual results could differ 

from those estimates. 

Q. Net Position 

Net position is the residual difference between 

assets and liabilities and is comprised of 

unexpended appropriations and cumulative 

results of operations. Unexpended 

appropriations represent the amount of 

unobligated and unexpended budget authority. 

Unobligated balances are the amount of 

appropriations or other authority remaining 

after deducting the cumulative obligations 

from the amount available for obligation. The 

cumulative results of operations is the net 

result of The Review Commission’s operations 

since inception. 
24 

R. 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 2009 and 

2008 to the extent directed by OMB. 

S. Contingencies 

A contingency is an existing condition, 

situation or set of circumstances involving 

uncertainty as to possible payment by The 

Review Commission. The uncertainty will 

ultimately be resolved when one or more 

future events occur or fail to occur. For 

pending, threatened or unasserted litigation, a 

liability/cost is recognized when a past 

transaction or event has occurred, a future 

outflow or other sacrifice of resources is 

probable, and the related future outflow or 

sacrifice of resources can be reasonably 

estimated. There are no commitments or 

contingencies that require disclosure. 

T. Expired Accounts and Cancelled 

Authority 

Unless otherwise specified by law, annual 

authority expires for incurring new obligations 

at the beginning of the subsequent fiscal year. 

The account in which the annual authority is 

placed is called the expired account. For five 

fiscal years, the expired account is available 

for expenditure to liquidate valid obligations 

incurred during the unexpired period. 

Adjustments are allowed to increase or 

decrease valid obligations incurred during the 

unexpired period but not previously reported. 

At the end of the fifth expired year, the expired 

account is cancelled. 

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2009 and 2008 were as 

follows: 

Fund Balances: 

2009 2008

Appropriated Funds $ 3,447,643 $ 2,703,914 

Total $ 3,447,643 $ 2,703,914 

Status of Fund Balance with Treasury:

2009 2008

Unobligated Balance

 Available $ 660,181 $ 97,759 

 Unavailable 799,885 1,089,417 

Obligated Balance Not Yet Disbursed 1,987,577 1,516,738 

Total $ 3,447,643 $ 2,703,914 
25 

NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2009 and 2008 were as follows: 

2009 2008

Accounts Receivable $ 825 329 $ 

Total Accounts Receivable $ 825 329 $ 

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

material uncollectible accounts as of September 30, 2009 and 2008. 

NOTE 4. PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment account balances as of September 30, 2009 and 2008 were as 

follows: 

Schedule of Property, Plant and Equipment as of September 30, 2009 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/ 

Depreciation

Net Book 

Value

Furniture & Equipment 361,344 $ 266,835 $ 94,509 $ 

Total 361,344 $ 266,835 $ 94,509 $ 

Schedule of Property, Plant and Equipment as of September 30, 2008 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/ 

Depreciation

Net Book 

Value

Furniture & Equipment 420,691 $ 261,725 $ 158,966 $ 

Total 420,691 $ 261,725 $ 158,966 $ 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities on The Review Commission's Balance Sheet as of September 30, 2009 and 2008, 

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. 

2009 2008

Intragovernmental – FECA (108) $ 178 $ 

Unfunded Annual Leave 645,518 607,291 

Total Liabilities Not Covered by Budgetary Resources 645,410 $ 607,469 $ 
26 

The abnormal balance for FECA liability is due to a charge for a non-employee of The Review 

Commission which was paid by the agency in May 2009. A correction has been made by the 

Department of Labor and credited the payment by The Review Commission against their actual 

charges, thus leaving a credit of $108 to be applied toward future charges. 

NOTE 6. OTHER LIABILITIES

The accrued liabilities for The Review Commission are comprised of program expense accruals, 

payroll accruals, and unfunded annual leave earned by employees. Program expense accruals 

represent expenses that were incurred prior to year-end but were not paid. Similarly, payroll 

accruals represent payroll expenses that were incurred prior to year-end but were not paid. 

Accrued annual leave represents an unfunded liability. 

All Other Liabilities are considered current liabilities. 

2009 2008

Intragovernmental Liabilities

FECA Liability (108) $ 178 $ 

Payroll Taxes Payable 66,415 56,631 

Total Intragovernmental Liabilities 66,307 $ 56,809 $ 

2009 2008

With the Public

 Payroll Taxes Payable 7,851 $ 7,277 $ 

 Accrued Funded Payroll and Leave 334,236 377,088 

 Unfunded Annual Leave 645,518 607,291 

Total Public Liabilities 987,605 $ 991,656 $ 

NOTE 7. LEASES 

Operating Leases

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

operating leases. The leased office space is in Washington, DC, Atlanta, Georgia, and Denver, 

Colorado. 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 terms commence 

on April 2008, for a period of 60 months, February 2009, for a period of 59 months, and the final 

lease commences on October 2008, and will run for a period of 120 months. 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. 
27 

Fiscal Year Totals

2010 $ 1,281,667 

2011 1,292,998 

2012 1,304,658 

2013 849,493 

2014 124,520 

Thereafter 388,161 

Total Future Payments $ 5,241,497 

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

options. 

NOTE 8. INTRAGOVERNMENTAL COSTS 

Intragovernmental costs represent goods and services exchange transactions made between two 

reporting entities within the Federal government, and are in contrast to those with non-federal 

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

2009 2008

Administrative Law Judge

 Intragovernmental Costs 1,476,326 $ 1,783,752 $ 

 Public Costs 3,182,341 3,404,618 

 Total Program Costs 4,658,667 5,188,370 

Commission

 Intragovernmental Costs 1,909,744 2,215,692 

 Public Costs 4,116,607 4,229,055 

 Total Program Costs 6,026,351 6,444,747 

Total Intragovernmental costs 3,386,070 3,999,444 

Total Public costs 7,298,948 7,633,673 

 Total Costs 10,685,018 11,633,117 

 Total Net Cost 10,685,018 $ 11,633,117 $ 

The Review Commission had no earned revenues. 
28 

NOTE 9. 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, the Office of Personnel 

Management (OPM). For the fiscal years ended September 30, 2009 and 2008, respectively, 

imputed financing was as follows. 

2009 2008

Office of Personnel Management $ 590,096 $ 558,696 

Total Imputed Financing Sources $ 590,096 $ 558,696 

NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

The President’s Budget that will include FY09 actual budgetary execution information has not yet 

been published. The President’s Budget is scheduled for publication in February 2010 and can be 

found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2010 Budget of the United 

States Government, with the Actual column completed for 2008, has been reconciled to the 

Statement of Budgetary Resources and there were no material differences. 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred and reported in the Statement of Budgetary Resources in 2009 and 2008 

consisted of the following: 

2009 2008

Direct Obligations, Category A 10,553,100 $ 10,648,140 $ 

Total Obligations Incurred 10,553,100 $ 10,648,140 $ 

Category A apportionments distribute budgetary resources by fiscal quarters. 

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other 

Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, states that 

the amount of budgetary resources obligated for undelivered orders at the end of the period 

should be disclosed. For the fiscal years ended September 30, 2009 and 2008, undelivered orders 

amounted to $1,429,343 and $958,217 respectively. 
29 

NOTE 13. CUSTODIAL ACTIVITY 

The Review Commission is an administrative agency collecting for the General Fund. The 

Review Commission reports cash collections and refunds as 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 $2,654 and $2,535 for the fiscal years ended September 30, 2009, and 2008, respectively. 
30 

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. 

2009 2008

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred 10,553,100 $ 10,648,140 $ 

Less: Spending Authority From Offsetting Collections and Recoveries 89,946 139,790 

Obligations Net of Offsetting Collections and Recoveries 10,463,154 10,508,350 

Other Resources

Imputed Financing From Costs Absorbed By Others 590,096 558,696 

Net Other Resources Used to Finance Activities 590,096 558,696 

Total Resources Used to Finance Activities 11,053,250 11,067,046 

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

Change In Budgetary Resources Obligated For Goods,

Services and Benefits Ordered But Not Yet Provided 471,125 (533,188) 

Resources That Fund Expenses Recognized In Prior Periods (210) 27,974 

Resources That Finance the Acquisition of Assets - 3,500 

Total Resources Used to Finance Items Not Part of Net Cost of Operations 470,915 (501,714) 

Total Resources Used to Finance the Net Cost of Operations 10,582,335 11,568,760 

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

Generate Resources in the Current Period

Components Requiring or Generating Resources in Future Periods

Increase In Annual Leave Liability 38,226 - 

Total Components of Net Cost of Operations That Will Require or

Generate Resources In Future Periods 38,226 - 

Components Not Requiring or Generating Resources:

Depreciation and Amortization 64,457 64,982 

Other (625) - 

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

Generate Resources 64,457 64,357 

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

Generate Resources In The Current Period 102,683 64,357 

Net Cost of Operations 10,685,018 $ 11,633,117 $