OCCUPATIONAL SAFETY AND HEALTH

REVIEW COMMISSION 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE AND ACCOUNTABILITY 

REPORT (PAR) 

Fiscal Year 2008 

U.S. OCCUPATIONAL SAFETY
 

AND
 

HEALTH REVIEW C

L STA

AND
 

OMMISSIO

FINANCIA TEMENTS
 

DEPENDENT AUDITOR'S REP

FOR THE FISCAL YEARS ENDE

SEPTEMBER 30, 2008 AND 200

N
 

IN ORT
 

D
 

7
 

BY
 

BROWN & COMPANY CPAs, PLLC
 

NOVEMBER 7, 2008
 

E============= BROWN & COMPANY CPAS, PLLC =============.
 
u.s. OCCUPATIONAL SAFETY
 

AND
 

HEALTH REVIEW COMMISSION


FOR THE FISCAL YEARS ENDED


SEPTEMBER 30, 2008 AND 2007
 

TABLE OF CONTENTS 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS.................. 1

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL 2

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND 

REGULATIONS .. 4

BALANCE SHEET 5

STATEMENT OF NET COST 6

STATEMENT OF CHANGES IN NET POSITION 7

STATEMENT OF BUDGETARY RESOURCES 8

NOTES TO THE FINANCIAL STATEMENTS 9

MANAGEMENT DISCUSSION AND ANALYSIS 20 

E~~~~~~= BROWN & COMPANY CPAS, PLLC ==~~~~~~
 
l&: 1?!4III\iI:::=::IIi.!~==== BROWN & COMPANY CPAs, 

PUBLIC ACCOUNTANTS AND MANAGEMENT CO

Health Review Commission
 

PLLC=============.~ CERI.IFIED NSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 

u.s. Occupational Safety and

Washington, DC
 

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

Commission (OSHRC) as of September 30, 2008 and the related statements of net cost, changes in net 

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

statements). The balance sheet as of September 30, 2007 and the related statements of net cost and 

changes in net position, and the statement of budgetary resources, for the year then ended were audited by 

other auditors, whose report dated November 13, 2007 expressed an unqualified opinion on those 

statements. These financial statements are the responsibility of OSHRC's management. 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 U.S. Government Auditing 

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

(OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 07-04 require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. An audit includes examining, on a test 

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 

assessing the accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audit provides a reasonable 

basis for our opinion. 

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

financial position of the OSHRC as of September 30, 2008 and 2007 and its net costs, changes in net 

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

generally accepted in the United States of America. 

In accordance with U.S. Government Auditing Standards and OMB Bulletin No. 07-04, we have also 

issued a report dated November 7, 2008 on our consideration of the OSHRC internal control over 

financial reporting and its compliance with provisions of laws and regulations. Those reports are an 

integral part of an audit performed in accordance with U.S. Government Auditing Standards and should 

be read in conjunction with this report in considering the results of our audit. 

The information in "Management's Discussion & Analysis" (MD&A) is presented for the purpose of 

additional analysis and is required by OMB Circular No. A-136, revised Financial Reporting 

Requirements. The OSHRC's MD&A contains a wide range of information, some of which is not 

directly related to the financial statements. We do not express an opinion on this information. However, 

we compared this information for consistency with the financial statements and discussed the methods of 

measurement and presentation with OSHRC officials. Based on this limited work, we found no material 

inconsistencies with the financial statements, U.S. generally accepted accounting principles, or OMB 

guidance. 

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

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

LargO,~d~~ November 7, 2008 

LARGO RICHMOND 

9200 BASIL COURT, SUITE 400 1504 SANTA ROSA ROAD, SUITE 107 

LARGO, MD 20774 RICHMOND, VA 23229 

(240) 492-1400. FAX: (301) 636-6013 (804) 288-2006. FAX: (804) 288-2233 

mail @brownco-cpas.com tdavis@brownco-cpas.com 
~~~======BROWN & COMPANY CPAs, PLLC==============~

CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL 

U.S. Occupational Safety and Health Review Commission
 

Washington, DC
 

We have audited the financial statements of the U.S. Occupational Safety and Health Review 

Commission (OSHRC) as of and for the year ended September 30, 2008 and have issued our report 

thereon dated November 7, 2008. 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 U.S Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for 

Federal Financial Statements. 

In planning and performing our audit, we considered the OSHRC's internal control over financial 

reporting by obtaining an understanding of the OSHRC's internal control, determined whether internal 

controls had been placed in operation, assessed control risk, and performed tests of controls in order to 

detennine our auditing procedures for the purpose of expressing our opinion on the financial statements. 

We limited our internal control testing to those controls necessary to achieve the objectives described in 

OMB Bulletin No. 07-04. We did not test all internal controls relevant to operating objectives as broadly 

defined by the Federal Managers' Financial Integrity Act of 1982, such as those controls relevant to 

ensuring efficient operations. The objective of our audit was not to provide an opinion on internal control 

and therefore, we do not express an opinion on internal control. 

Our consideration of the internal control over financial reporting would not necessarily disclose all 

matters in the internal control over financial reporting that might be significant deficiencies. Under 

standards issued by the American Institute of Certified Public Accountants and OMB Bulletin No. 07-04, 

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

affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in 

accordance with generally accepted accounting principles such that there is more than a remote likelihood 

that a misstatement of the entity's financial statements that is more than inconsequential will not be 

prevented or detected. Our consideration of the internal control over financial reporting would not 

necessarily disclose all matters in the internal control over financial reporting that might be a material 

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

that result in a more than remote likelihood that a material misstatement of the financial statements will 

not be prevented or detected. Because of inherent limitations in internal controls, misstatements, losses, 

or non-compliance may nevertheless occur and not be detected. However, we noted no matters involving 

the internal control and its operation that we considered to be significant deficiencies or material 

weaknesses as defined above. 

LARGO RICHMOND 

9200 BASIL COURT, SUITE 400 1504 SANTA ROSA ROAD, SUITE 107 

LARGO, MD 20774 2 RICHMOND, VA 23229 (240) 492-1400. FAX: (30l) 636-6013 (804) 288-2006. FAX: (804) 288-2233 

mail@brownco-cpas.com tdavis@brownco-cpas.com 
This report is intended solely for the information and use of the management of the OSHRC, OMB and 

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

Largo, Maryland 

~~~

November 7, 2008 

E============= BROWN & COMPANY CPAS, PLLC =============~
 3
 
~~~====BROWN & COMPANY CPAs, PLLC=============~

CERI'IFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON
 

COMPLIANCE WITH LAWS AND REGULATIONS
 

U.S. Occupational Safety and Health Review Commission
 

Washington, DC
 

We have audited the financial statements of the U.S. Occupational Safety and Health Review 

Commission (OSHRC) as of and for the year ended September 30, 2008, and have issued our report 

thereon dated November 7, 2008. 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 U.S. Government Auditing Standards, issued by the Comptroller General of the United 

States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for 

Federal Financial Statements. 

The management of the OSHRC is responsible for complying with laws and regulations applicable to the 

OSHRC. As part of obtaining reasonable assurance about whether the OSHRC's financial statements are 

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

regulations, noncompliance with which could have a direct and material effect on the determination of 

financial statement amounts, and certain other laws and regulations specified in OMB Bulletin No. 07-04. 

We limited our tests of compliance to these provisions and we did not test compliance with all laws and 

regulations applicable to the OSHRC. 

The results of our tests of compliance disclosed no reportable instances of noncompliance with other laws 

and regulations discussed in the preceding paragraph that are required to be reported under U.S. 

Government Auditing Standards or OMB Bulletin No. 07-04. 

Providing an opinion on compliance with certain provisions of laws and regulations was not an objective 

of our audit, and, accordingly, we do not express such an opinion. However, we noted no noncompliance 

with laws and regulations, which could have a direct and material effect on the determination of financial 

statement amounts. 

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

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

Largo, Maryland« 

~4~'~

November 7, 2008 

LARGO RICHMOND 

9200 BASIL COURT, SUITE 400 1504 SANTA ROSA ROAD, SUITE 107 

LARGO, MD 20774 4 RICHMOND, VA 23229 

(240) 492-1400. FAX: (301) 636-6013 (804) 288-2006. FAX: (804) 288-2233 

mail@brownco-cpas.com tdavis@brownco-cpas.com 
 

 

 

 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

BALANCE SHEET 

AS OF SEPTEMBER 30, 2008 AND 2007 

(In Dollars) 

2008 2007 

Assets: 

Intragovernmental: 

Fund Balance With Treasury (Note 2) $ 2,703,914 $ 4,053,230 

Total Intragovernmental 2,703,914 4,053,230 

Accounts Receivable, Net (Note 3) 825 200 

General Property, Plant and Equipment, Net (Note 4) 158,966 220,448 

Other - 219 

Total Assets $ 2,863,705 $ 4,274,097 

Liabilities: 

Intragovernmental: 

Accounts Payable $ 7,435 $ 7,175 

Other (Note 6) 53,427 56,809

Total Intragovernmental 64,244 60,602 

Accounts Payable 110,089 182,918 

Other (Note 6) 1,001,988 991,656

Total Liabilities 1,245,508 1,165,989

Net Position: 

Unexpended Appropriations - Other Funds 2,145,394 3,443,383 

Cumulative Results of Operations - Other Funds (447,678) (414,794) 

Total Net Position 3,028,589 1,697,716

Total Liabilities and Net Position $ 2,863,705 $ 4,274,097 

The accompanying notes are an integral part of these statements. 

5 
 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

STATEMENT OF NET COST 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

(In Dollars) 

2008 2007 

Program Costs: 

Administrative Law Judge $ 5,188,370 $ 4,968,629 

Commission 6,171,795 6,444,747

Net Cost of Operations (Notes 8 and 9) $ 11,633,117 $ 11,140,424 

The accompanying notes are an integral part of these statements. 

6 
 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

STATEMENT OF CHANGES IN NET POSITION 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

(In Dollars) 

2008 2007 

Cumulative Results of Operations: 

Beginning Balances $ (414,794) $ (401,771) 

Budgetary Financing Sources: 

Appropriations Used 11,041,537 10,533,158 

Other Financing Sources (Non-Exchange): 

Imputed Financing Sources (Note 10) 594,243 558,696

Total Financing Sources 11,600,233 11,127,401 

Net Cost of Operations 11,140,424 11,633,117

Net Change (32,884) (13,023) 

Cumulative Results of Operations $ (447,678) $ (414,794) 

Unexpended Appropriations: 

Beginning Balances $ 3,443,383 $ 4,389,145 

Budgetary Financing Sources: 

Appropriations Received 10,696,000 10,470,779 

Other Adjustments (952,452) (883,383) 

Appropriations Used (11,041,537) (10,533,158) 

Total Budgetary Financing Sources (1,297,989) (945,762) 

Total Unexpended Appropriations $ 2,145,394 $ 3,443,383 

Net Position $ 1,697,716 $ 3,028,589 

The accompanying notes are an integral part of these statements. 

7 
 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

STATEMENT OF BUDGETARY RESOURCES 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

(In Dollars) 

2008 2007 

Budgetary Resources: 

Unobligated Balance Brought Forward, October 1 

Recoveries of Prior Year Unpaid Obligations 

Budget Authority 

Appropriation 

Permanently Not Available 

Total Budgetary Resources 

$ 1,951,978 $ 

139,790 

10,696,000 

952,452

$ 11,835,316 $ 

2,363,573 

638,016 

10,470,779 

883,383 

12,588,985 

Status of Budgetary Resources: 

Obligations Incurred 

Direct (Note 11) 

Unobligated Balance 

Apportioned 

Unobligated Balance Not Available 

Total Status of Budgetary Resources 

$ 10,648,140 $ 

97,759 

1,089,417

$ 11,835,316 $ 

10,637,007 

78,050 

1,873,928 

12,588,985 

Change in Obligated Balance: 

Obligated Balance, Net 

Unpaid Obligations, Brought Forward, October 1 $ 2,101,252 $ 2,527,963 

Obligations Incurred Net 

Less: Gross Outlays 

Less: Recoveries of Prior Year Unpaid 

Obligations, Actual 

Obligated Balance, Net, End of Period 

Unpaid obligations 

Total, Unpaid Obligated Balance, Net, End of Period 

10,648,140 

11,092,864 

139,790 

1,516,738

$ 1,516,738 $ 

10,637,007 

10,425,702 

638,016 

2,101,252 

2,101,252 

Net Outlays: 

Net Outlays: 

Gross Outlays 

Net Outlays 

$ 11,092,864 $ 

$ 11,092,864 $ 

10,425,702 

10,425,702 

The accompanying notes are an integral part of these statements. 

8 
U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

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. 

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. Basis of Accounting 

Transactions are recorded on 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. 

9 
 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

D. Revenues and 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. 

E. 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. 

F. 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. 

G. Receivables 

Accounts receivable represents employee related receivables. 

H. Advances and Prepayments 

The Review Commission records payments for goods and services not yet received as advances and 

reduces the advances by charges to expense as the goods and services are received. 

I. General Property, Plant and Equipment, Net 

The Review Commission’s property and equipment is recorded at cost and is depreciated 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. Service lives are shown below. See Note 4 for additional information. 

Description Life 

Office Equipment 5 

Office Furniture 7 

10 
 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

J. Liabilities 

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 not covered by budgetary or other resources represent amounts owed in excess of available 

congressionally appropriated funds or other amounts. The liquidation of liabilities not covered by 

budgetary or other resources is dependent on future Congressional appropriations or other funding. 

Intragovernmental liabilities are claims against The Review Commission by other Federal agencies. 

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. Additionally, 

the Government, acting in its sovereign capacity, can abrogate liabilities. 

K. Accounts Payable 

Accounts payable consists of amounts owed to other federal agencies and trade accounts payable. 

L. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the accrual is reduced as leave is taken. Each year, the balance 

in the accrued leave account is adjusted to reflect current pay rates. Liabilities associated with other types 

of vested leave, such as restored leave, are accrued at year-end, based on latest pay rates and unused hours 

of leave. To the extent current or prior year appropriations are not available to fund annual leave and 

other types of vested leave earned but not taken, funding will be obtained from future financing sources. 

Sick leave and other types of nonvested leave are expensed when used. 

M. Accrued Workers’ Compensation 

A liability is recorded for actual and estimated future payments to be made for workers’ compensation 

pursuant to the Federal Employees’ Compensation Act (FECA). The actual costs incurred are reflected as 

a liability because The Review Commission will reimburse the Department of Labor (DOL) two years 

after the actual payment of expenses. 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. 

N. Retirement Plans 

The Review Commission’s employees participate in the Civil Service Retirement System (CSRS) or the 

Federal Employees’ Retirement System (FERS). FERS was established by the enactment of Public Law 

99-335. Pursuant to this law, FERS and Social Security automatically cover most employees hired after 

December 31, 1983. Employees hired before January 1, 1984 elected to join either FERS and Social 

Security or remain in CSRS. 

11 
 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

N. Retirement Plans (continued) 

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. 

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 Office of Personnel 

Management. 

O. Use of Estimates 

Management has made certain estimates when reporting assets, liabilities, revenue, and expenses, and in 

the note disclosures. The preparation of financial statements in conformity with generally accepted 

accounting principles requires management to make 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. 

P. 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. 

12 
 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

Q. 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 2008 and 2007 to the extent directed by the 

OMB. 

R. 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. 

S. 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. 

T. Reclassification 

Certain fiscal year 2007 balances may have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 2. FUND BALANCE WITH TREASURY 

Fund balance with Treasury account balances as of September 30, 2008 and 2007 were: 

2008 2007 

Fund Balances 

Appropriated Funds 

Total 

$ 

$ 

2,703,914 

2,703,914 

$ 4,053,230

$ 4,053,230 

Status of Fund Balance with Treasury 

Unobligated Balance 

Available 

 Unavailable 

 Obligated Balance not yet Disbursed 

Total 

$ 

$ 

97,759 

 1,089,417 

 1,516,738 

2,703,914 

$ 78,050 

 1,873,928

2,101,252 

$ 4,053,230 

Restricted 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. 

NOTE 3. ACCOUNTS RECEIVABLE, NET 

Net accounts receivable balances as of September 30, 2008 and 2007 were $825 and $200, respectively. 

NOTE 4. GENERAL PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment account balances as of September 30, 2008 and 2007 were as follows: 

Acquisition Accumulated Net 

Description Cost Depreciation Book Value 

September 30, 2008 

ADP/Office Equipment $ 420,691 $ 261,725 $ 158,966 

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

Acquisition Accumulated Net 

Description Cost Depreciation Book Value 

September 30, 2007 

ADP/Office Equipment $ 423,313 $ 202,865 $ 220,448 

Total $ 423,313 $ 202,865 $ 220,448 

14 
 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities on The Review Commission’s Balance Sheet as of September 30, 2008 and 2007, include 

liabilities not covered by budgetary resources, which are liabilities for which 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. FECA liability is an intragovernmental liability not covered by budgetary resources. Unfunded 

FECA liabilities are $178 and $391 as of September 30, 2008 and 2007, respectively. Other liabilities not 

covered by budgetary resources consist of unfunded leave. Unfunded leave balances are $607,291 and 

$635,051 as of September 30, 2008 and 2007, respectively. 

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. 

Schedule of Other Liabilities 

2008 2007 

Intragovernmental 

Employer Contributions and 

 Payroll Taxes Payable 

 FECA Liability

Total Intragovernmental 

$ 

$ 

56,631

 178

 56,809

 $ 

$ 

53,036

 391 

53,427 

Accrued Payroll 

Employer Contributions and Payroll 

 Taxes Payable 

Unfunded Annual Leave 

$ 377,088

7,277

 607,291

 $ 

$ 

 350,024 

16,913 

 635,051 

Total Nongovernmental 

Total Other Liabilities 

$ 

$ 

 991,656

1,048,465

 $ 

$ 

1,001,988 

1,055,415 

All liabilities are current liabilities. 

15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 7. OPERATING LEASES 

The Review Commission occupies office space under 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 and February 

2004, for a period of 60 months each, 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 taxes. 

Schedule of Future Operating Lease Payments 

Fiscal Year Totals 

2009 $ 1,216,695 

2010 1,195,071 

2011 1,205,828 

2012 1,216,902 

2013 761,138 

Thereafter 483,116 

Total Future Payments $ 6,078,750 

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: 

2008 2007 

Administrative Law Judge 

 Intragovernmental Costs $ 1,783,752 $ 1,729,018

 Public Costs 3,404,618 3,239,611

 Total Administrative Law Judge Costs $ 5,188,370 $ 4,968,629 

Commission

 Intragovernmental Costs $ 2,215,692 $ 2,147,703

 Public Costs 4,229,055 4,024,092

 Total Commission Costs $ 6,444,747 $ 6,171,795 

The Review Commission had no earned revenues. 

16 
 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 9. OPERATING/PROGRAM COSTS 

Costs by major budgetary object classification as of September 30, 2008 and 2007 are as follows: 

Budgetary Object Classifications 2008 2007 

Personnel and Benefits $ 8,409,723 $ 8,088,201 

Benefits to former employees - 21,101 

Travel and Transportation 202,201 179,586 

Rents, Communication & Utilities 1,338,379 1,357,071 

Printing and Contractual Services 1,109,534 1,168,112 

Supplies and Materials 22,811 63,166 

Equipment 550,430 263,173 

Interest and dividends 39 14 

Total $ 11,633,117 $ 11,140,424 

NOTE 10. IMPUTED FINANCING SOURCES 

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

years ended September 30, 2008 and 2007, respectively, imputed financing from OPM were $558,696 

and $594,243. 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

As of September 30, 2008, The Review Commission has $10,648,140 of direct obligations incurred 

against amounts apportioned under Category A funds, and $10,637,007 at September 30, 2007. Category 

A apportionments distribute budgetary resources by fiscal quarters. The Review Commission has no 

reimbursable obligations incurred or any balance in exempt from apportionment. 

NOTE 12. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF 

BUDGETARY RESOURCES AND THE BUDGET OF THE UNITED STATES GOVERNMENT 

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

Sources and Concepts for Reconciling Budgetary and Financial Accounting, calls for explanations of 

material differences between amounts reported in the Statement of Budgetary Resources (SBR) and the 

actual balances published in the Budget of the United States Government (President’s Budget). However, 

the President’s Budget that will include FY08 actual budgetary execution information has not yet been 

published. The President’s Budget is scheduled for publication in February 2009 and can be found at the 

OMB Web site: http://www.whitehouse.gov/omb. The 2009 Budget of the United States Government, 

with the Actual column completed for 2007, has been reconciled to the Statement of Budgetary Resources 

and there are no material differences. 

17 
U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 13. 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 years ended September 30, 2008 and 2007, Undelivered Orders amounted to $958,217 

and $1,491,405 respectively. 

NOTE 14. CUSTODIAL ACTIVITY 

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

As a collecting entity, The Review Commission measures and reports cash collections and refunds. The 

type of cash collected is for Freedom of Information Act fees. Amounts collected from and distributed to 

others for the periods ending September 30, 2008 and 2007 were $2,535 and $1,206, respectively. 

18 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007 

NOTE 15. RECONCILIATION OF NET COST TO BUDGET 

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

with its net cost of operations. 

2008 2007 

Resources Used to Finance Activities: 

Budgetary Resources Obligated 

Obligations incurred 

Less: Spending Authority From Offsetting Collections and Recoveries 

Obligations Net of Offsetting Collections and Recoveries 

Net Obligations 

Other Resources 

Imputed Financing From Costs Absorbed By Others 

Net Other Resources Used to Finance Activities 

$ 10,648,140 

139,790

10,508,350

10,508,350 

558,696

558,696

$ 10,637,007

638,016 

9,998,991 

9,998,991 

594,243 

594,243 

Total Resources Used to Finance Activities 10,593,234 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 

Resources That Fund Expenses Recognized In Prior Periods 

Resources That Finance the Acquisition of Assets 

(533,188) 

27,974 

3,500

(534,167) 

(1,700) 

92,617 

Total Resources Used to Finance Items Not Part of Net Cost of Operations (443,250) (501,714)

Total Resources Used to Finance the Net Cost of Operations 11,036,484 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 

Other 

-

-

42,917 

391 

Total Components of Net Cost of Operations That Will Require or 

Generate Resources In Future Periods 

Components Not Requiring or Generating Resources: 

Depreciation and Amortization 

Other 

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

Generate Resources 

-

64,982 

(625)

64,357

 43,308 

60,632 

-

60,632 

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

Generate Resources In The Current Period 103,940 64,357

Net Cost of Operations $ 11,633,117 $ 11,140,424

19 
Occupational Safety and Health Review Commission 

FY 2008 Performance 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 just and expeditious 

resolution of disputes involving the Department of Labor’s 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 timely contests an OSHA citation for 

alleged violations of the Act or failure to abate such alleged violations. The first level affords an 

opportunity for a hearing before a Review Commission Administrative Law Judge (ALJ) for 

employers and affected employees who have filed a timely notice of contest. The judge’s 

decision becomes final unless the Commission chooses to review the decision. The second level 

is a discretionary appellate review of the judge’s decision by the Commission members. 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, each of whom is appointed by the President and 

confirmed by the Senate, and serves a six-year term. 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. 

OSHRC’s continuing vision is to strive to be: 

20
 
•		 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 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 depends 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 trials 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. 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 2008 with two Members, and one vacancy (one 

Commissioner’s term ended on April 27, 2007 and no replacement has been confirmed to date). 

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 

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

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

Commission levels has increased steadily in recent years. 

21
 
 

OSHA conducted close to 40,000 inspections in FY 2008. 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 

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 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 (formerly E-Z Trial) 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 

assuring that due process requirements will be maintained. Under this process, a business, with 

or without counsel, can present its case before a Review Commission 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 

The Review Commission’s strategic goal is to provide fair, just, and expeditious adjudication of 

disputes brought before the Commission and its judges. The Review Commission’s Strategic 

Plan and associated Outcome Goals for the period FY 2006 through FY 2011 reflect objectives 

for the Commission and Administrative law functions that support this goal. The public service 

goal for the Review Commission is: To ensure fair, just and expeditious adjudication of disputes 

brought before the Review Commission and its Judges. 

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 2008, the Commission had 25 cases pending at the beginning of the year. It received 13 

new cases and issued 18 cases by year-end. Thus, the Commission entered FY 2009 with 20 

cases pending on review. 

22
 
The Commission began FY 2008 with two Commissioners and one vacancy (one 

Commissioner’s term ended on April 27, 2007). Nevertheless, the two Commissioners issued 18 

cases during the fiscal year. 

The following table provides the performance goals and results for this function for FYs 2005-

2008. 

Performance Goals Performance 

Indicators 

FY 2005 

Actual 

(Target) 

FY 2006 

Actual 

(Target) 

FY 2007 

Actual 

(Target) 

FY 2008 

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 

52% 

Target 

not met 

(100%) 

22% 

Target 

not met 

(100%) 

32% 

Target 

not met 

(100%) 

23% 

Target 

not met 

(100%) 

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 Judge Division 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 625 cases in its inventory and 

received 1,962 new cases during the year, for a total of 2,587 cases. A total of 1848 cases were 

disposed of, leaving 736 cases at the end of the fiscal year. 

23
 
The following table provides the performance goals and results for this function for FYs 2005-

2008. 

Performance 

Goals 

Performance 

Indicators 

FY 2005 

Actual 

Target 

FY 2006 

Actual 

Target 

FY 2007 

Actual 

Target 

FY 2008 

Actual 

Target 

Increase the percent of 

non-complex cases at 

the ALJ level that are 

resolved in less than one 

year 

Percent 

within 365 

days 

98% 

Target 

exceeded 

(93%) 

99% 

Target 

exceeded 

(94%) 

99% 

Target met 

(97%) 

99 % 

Target 

met. 

(99%) 

Increase the percent of 

complex cases at the 

ALJ level that are 

resolved within 18 

months 

Percent 

within 540 

days 

98% 

Target 

exceeded 

(93%) 

99% 

Target 

exceeded 

(94%) 

97% 

Target not 

met. 

(98%) 

99% 

Target 

met

 (99%) 

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 goal; 

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

Commission information; 

•		 Providing support agency-wide 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 

•		 Enhancing telecommunications and improving technology efficiency and effectiveness. 

24
 
 

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 Resource Center, for accounting services. The Administrative Resources Center 

prepared the Review Commission’s FY 2008 financial statements, which include comparative 

data for FY 2007. 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, both rising 

costs and filling critical positions, 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 2008 were $2,863,705 as of September 30, 2008. This represents 

a decrease of $1,410,392 from fiscal year 2007. The Fund Balance with Treasury of $2,703,914 

represents OSHRC’s largest asset as of September 30, 2008. This is a decrease of approximately 

33.2 percent from fiscal year 2007 and represents approximately 94.4 percent of the agency’s 

total assets. General Property, Plant, and Equipment accounts for approximately 5.5 percent of 

OSHRC’s total assets as of September 30, 2008. The net fixed asset value of $158,966 equals 

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

OSHRC’s liabilities in fiscal year 2008 totaled $1,165,989 as of September 30, 2008. This is a 

decrease of $79,519 from fiscal year 2007. Accounts payable balance at September 30, 2008, 

was $117,524, a decrease of $72,569 from September 30, 2007. Unfunded annual leave 

decreased $27,760 in 2008 from 2007. Unfunded annual leave represents approximately 52 

percent of total agency liabilities. 

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

fiscal year 2008 decreased by $1,330,873 from fiscal year 2007. 

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 2008 was $11,633,117, an increase of $492,693, or 4.42 percent, over 

the 2007 net cost of operations of $11,140,424. 

25
 
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 decreased $1,330,873 

in 2008 from 2007, a change of approximately 44 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 

2008 OSHRC had total budgetary resources of $11,835,316, which is $753,669 less than in 

2007. 

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 2008, two program reviews took place: an audit of FY 2008 financial 

statements, and an audit of computer and information security. 

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 2007. 

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 

26
 
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. 

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. 

As a follow-up to the FY 2007 audit, as well as the current one, both of which revealed no 

material weakness in policies and procedures as OSHRC has completed its Certification and 

Authorization (C&A), updated all security processes, the system security plan and security plan 

to comply with NIST standards. OSHRC tested its continuity of operations plan (COOP) during 

the May 2008 DHS exercise and is in the process of fine-tuning the plan to fully incorporate its 

newly adapted technologies. 

The executive summary for the current (FY 2008) FISMA Program Review Report reveals that 

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

The provisions of the 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. 

27
 
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 

2008, each of the 1,962 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 goal 

and 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). 

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. 

28