U.S. Occupational Safety and Health Review Commission

OSHRC 

 

Performance and Accountability Report 

FY 2017
U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION 

PERFORMANCE AND ACCOUNTABILITY REPORT, 

INDEPENDENT AUDITOR’S REPORT 

AND

FINANCIAL STATEMENTS 

FOR THE YEAR ENDED SEPTEMBER 30, 2017 AND 2016 

TABLE OF CONTENTS 

AGENCY HEAD MESSAGE 

MANAGEMENT DISCUSSION AND ANALYSIS . .......................................................... 1

FINANCIAL SECTION 

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

BALANCE SHEET ............................................................................................................... 24

STATEMENT OF NET COST ............................................................................................. 25

STATEMENT OF CHANGES IN NET POSITION ............................................................. 26

STATEMENT OF BUDGETARY RESOURCES ................................................................ 27

NOTES TO THE FINANCIAL STATEMENTS .................................................................. 28


1

U.S. Occupational Safety and Health Review Commission 

Fiscal Year (FY) 2017 Performance and Accountability Report 

Management’s Discussion and Analysis 

Overview and Mission 

The U.S. 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 (the Act). 

Our 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 

parties are accorded due process. 

Our Function and Procedures 

The Act and our Rules of Procedure (which are similar to the Federal Rules of Civil Procedure) provide 

two levels of adjudication when an employer contests an OSHA citation for alleged violations of the Act. 

The first is a trial level, which affords an opportunity for a hearing before a Review Commission 

Administrative Law Judge (ALJ or judge). The judge’s decision becomes final unless it is directed for 

review by a Commission member (Commissioner). When such review is granted, Commission Members 

– who are appointed by the President and subject to Senate confirmation – address the issues presented by 

the case and issue a decision. Final Commission decisions may be appealed to the Federal courts of 

appeals. At both the ALJ and Commission levels, the Review Commission is charged with providing fair 

and impartial adjudication of cases concerning employee workplace safety and health. 

The Commission’s principal (National) office is in Washington, DC. OSHRC also has two regional 

offices: one in Atlanta, GA, and one in Denver, CO. All three offices are staffed with ALJs who travel, 

as necessary, to adjudicate cases in locales near where the alleged workplace violations took place. 

Vision Statement 

The Review Commission strives to be: 

 An adjudicative body that is – and is recognized for being – objective, fair, prompt, 

professional, and respected. 

 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 Act. 

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

diverse workforce; and modern information management, communications, and 

administrative systems. 

 An agency that values teamwork; develops its employees; and seeks to improve its 

performance, service, and value to the American people. 
2

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 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 prescribes that a quorum consists of a minimum of two 

Commissioners. By statute, decisions can only be decided on the affirmative vote of a quorum. During 

periods when the Commission lacks a quorum, no cases can be decided. In addition, with only two 

Commissioners, it may be more difficult to reach agreement sufficient to dispose of some cases. In cases 

where such agreement cannot be reached, deadlocks result. Consequently, action on important issues 

may be postponed and issuance of some pending cases will be delayed. Over the past 21 years the 

Commission has operated with fewer than three Commissioners over 60 percent of the time. 

The Commission operated without a full complement of Commissioners for nine months in FY 2017. 

This was the result of one Commissioner’s term expiring in April of 2015 without the confirmation of a 

new Commissioner until August 2017. In addition, another Commissioner’s term expired in April of 

2017 and was confirmed in August 2017 as well. Notwithstanding the lack of a full complement of 

Commissioners for the fiscal year, the Commission resolved 14 cases and met one of its GPRA goal 

targets at the Commission level during FY 2017.

The factors that most influence the agency’s workload, and hence its strategies, are: the number of safety 

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

and characterization of violations and total penalties proposed by OSHA in each citation. 

OSHA conducted 32,283 inspections in FY 2017. 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. 

In addition to its regular procedures, the Review Commission utilizes two alternative procedures to 

facilitate case adjudication before the ALJs in appropriate circumstances – Settlement Part, for certain 

relatively complex cases, and Simplified Proceedings, for certain relatively simple cases. 

Under Commission Rule 120, 29 Code of Federal Regulations (CFR) § 2200.120, and where the parties 

consent, the Chief Judge may assign a Settlement Judge to a pending proceeding to aid the parties in 

disposing of the case. 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 ALJ has full control of the proceeding and may require that the parties’

representatives be accompanied at the settlement conference 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 (if settlement efforts are not successful, the case may be assigned to a different 

judge for trial). 
3

The Simplified Proceedings process includes cases where the total proposed penalty is not more than 

$20,000, or 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 formal 

procedural and evidentiary rules, while ensuring that due process requirements will be maintained. Under 

this process, a business, with or without counsel, can present its case before an ALJ and receive a prompt 

decision. Most paperwork, including legal filings, has been eliminated so that justice can be rendered 

swiftly and inexpensively. The process reduces the time and legal expenses to employers contesting 

relatively small penalty cases. 

Performance Goals and Results

In accordance with Public Law 111-352, the Government Performance and Results Modernization Act of 

2010 (GPRA Modernization Act of 2010) and Public Law 103-62, the Government Performance and 

Results Act (GPRA) of 1993, the Review Commission revised its strategic plan for the period FY 2014 

through FY 2018. The plan focuses on three overarching strategic goals: 

1) Respect for the rule of law by assuring fair, just, and expeditious adjudication of disputes brought 

before the Commission and its judges. 

2) Expanding transparency and openness by providing for stakeholder engagement and ensuring that 

the Review Commission keeps interested parties and the public it serves informed of the agency’s 

work at all levels, consistent with due process requirements. 

3) Providing responsible stewardship of resources to enhance agency operations and efficiencies in 

information management, financial management, human resources, and real property to 

accomplish the agency’s statutory and regulatory mandates. 

Commissioner Function 

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

initial decision by an ALJ. This higher level of review must be prompt, fair, and protective of the parties’ 

rights, consistent with our overall strategic goals. 

In FY 2017, the Commission had 29 cases pending on its docket at the beginning of the year. It received 

13 new cases and resolved 14 cases by year-end. 

The following table provides the performance goals and results for this function for fiscal years 2013 

through 2017. 

Outcome 

Goals

Performance 

Measures

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

FY 2017

Actual

(Target)

Reduce the 

average age 

of open cases 

at the 

Commissionlevel.*

Average age of 

open cases.

21 months

Target met

(30 months 

or less)

26 months

Target met

(27 months or 

less)

Replacement 

goal developed 

for FY 2015

Replacement 

goal developed 

for FY 2016

Replacement 

goal developed 

for FY 2017

Resolve all 

priority cases 

in a timely 

manner.

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%)

100%

Target met

(100%)

Develop and 

implement 

case 

management 

Average age of 

all pending 

Commissionlevel cases.

New goal 

developed 

to support 

FY 2014 –

Case 

management 

practices 

developed. 

Implemented 

case 

management 

practices.

Implemented 

case 

management 

practices.

Implemented 

case 

management 

practices.
4

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

46 months, and 32 months, respectively. The Review Commission’s Strategic Plan (FY 2010- 2015) anticipated reducing this average to 24 

months by the end of FY 2015. The revised Strategic Plan (FY 2014 – 2018) anticipates further reducing this average to 20 months by the 

end of FY 2018. 

At the Commission level, 14 cases were resolved, and one of three performance goals were met. The 

Commission operated without a full complement of Commissioners for nine months in FY 2017. Due to 

the lack of a full complement of Commissioners, our ability to meet the performance goals of having an 

estimated average age of all pending Commission-level cases of 22 months and further reduce the average 

age of the oldest pending Commission-level cases were adversely impacted. The Commission intends on 

achieving these two performance goals in the future by adhering to the case management practices 

described in its Strategic Plan. These practices include:

 Periodic docket review 

 Conduct quarterly and semiannual case management docket reviews to identify 

opportunities to speed case processing 

o Quarterly Counsels’ meeting 

o Semiannual Commission docket review 

 Strategic plan implementation monitoring 

 Incorporate data in quarterly docket reports on the age of each pending case, the average 

age of all pending cases, and the average age of the oldest 15% of cases 

practices that 

will minimize 

the average 

age of all 

pending 

Commissionlevel cases.

2018 

Strategic 

Plan

The average 

age of all 

pending 

Commissionlevel cases is 

26 months. 

*Target met

Develop case 

management 

practices.

(27 months or 

less)

The estimated 

average age of 

all pending 

Commissionlevel cases is 

21 months.

Target met

(24 months or 

less)

The estimated 

average age of 

all pending 

Commissionlevel cases is 

24 months.

Target not 

met

(23 months or 

less)

The estimated 

average age of 

all pending 

Commissionlevel cases is 

28 months.

Target not 

met

(Continue to 

implement 

case 

management 

practices. 22 

months or less)

Further 

reduce the 

average age 

of the oldest 

pending 

Commissionlevel cases.

Using experience 

gained from the 

recent 

disposition of the 

legacy cases, as 

well as 

recommendation

s derived from 

Commission’s 

public meeting 

on legacy cases, 

to develop and 

implement case 

management 

practices that 

minimize the 

average age of 

the oldest fifteen 

percent of 

pending cases.

New goal 

developed 

to support 

FY 2014 –

2018 

Strategic 

Plan

Case 

management 

practices 

developed.

Target met

(Develop 

case 

management 

practices)

Case 

management

practices were 

fully 

implemented.

Target met

(Implement 

case 

management 

practices).

Case 

management 

practices were 

fully 

implemented.

Target met

(Implement 

case 

management 

practices).

Average age of 

the oldest 15 

percent of 

pending 

Commission 

level cases 

increased by 4 

percent from 

FY 2014 level.

Target not 

met

(Reduce 

average age of 

the oldest 15 

percent of 

pending 

Commission 

level cases by 

10 percent 

from FY 2014 

level)
5

 Review case management aspects of cases that exceed the target average in the periodic 

docket review meetings 

 Efficient briefing practices 

 To the degree practicable, strive to narrowly tailor the issues in the Briefing Notice 

The following table summarizes actual Commission case activity for fiscal years 2013 through 2017. 

Commission Case Activity 

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016

Actual

FY 2017

Actual

New Cases:

 Cases Directed for

 Review: 24 11 13 14 12

Other New Cases:

 Interlocutory

 Appeals 0 0 0 0 0

 Remands 1 0 1 1 0

 Other 0 0 0 0 1

 Total Other New

 Cases: 1 0 1 1 1

Total New Cases: 25 11 14 15 13

Case Inventory from 

Prior Year: 31 36 35 33 29

Total Caseload: 56 47 49 48 42

Dispositions: 20 12 16 19 14

Case Inventory, 

 End of Year: 36 35 33 29 28

Administrative Law Judge Function

The function of the Review Commission’s ALJs is to conduct formal hearings and related proceedings in 

a fair, just, and expeditious manner, consistent with OSHRC’s overall strategic goals. 

The Administrative Law Judge function began FY 2017 with 1,109 cases in its inventory and 2,168 new 

cases were received during the year, for a total of 3,277 cases. A total of 2,148 cases were disposed of, 

leaving 1,129 cases in the inventory at the end of the fiscal year. 

The following table provides the performance goals and results for this function for fiscal years 2013 

through 2017. 

Outcome Goals Performance

Measures

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

FY 2017

Actual

(Target)

Ensure that a 

significant

proportion of noncomplex cases at 

the ALJ level are 

resolved in less 

than one year.

Percent within 

one year.

95.3%

Target not 

met

(98%)

97%

Target met

(95%)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan
6

Outcome Goals Performance

Measures

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

FY 2017

Actual

(Target)

Ensure that a 

significant 

proportion of 

complex cases at 

the ALJ level are 

resolved in less 

than one year.

Percent within 

one year.

85.6%

Target not 

met

(95%)

80%

Target not 

met

(89%)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Ensure that a 

significant 

proportion of both 

complex and noncomplex cases at 

the ALJ level are 

resolved within one 

year to 20 months 

from docketing. 

Percent of 

simplified cases 

disposed of 

within one year 

at ALJ level.

Percent of 

conventional 

cases disposed of 

within 17 

months.

Percent of 

settlement part 

cases disposed of 

within 19 

months.

Percent of 

complex cases 

disposed of 

within 20 

months at ALJ 

level.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan 

Dispose of 95% 

of simplified 

cases within one 

year.

97%

Target met

Dispose of 90% 

of conventional 

cases within 17 

months.

92%

Target met

Dispose of 98% 

of settlement 

part cases 

within 19 

months.

95%

Target not met

Dispose of 95% 

of complex 

cases within 20 

months. (FY15 

will be the 

baseline for this 

measure)

80%

Target not met

Dispose of 95% 

of simplified 

cases within one 

year.

93%

Target not met

Dispose of 90% 

of conventional 

cases within 17 

months

92%

Target met

Dispose of 98% 

of settlement 

part cases within 

19 months

93%

Target not met

Dispose of 95% 

of complex 

cases within 20 

months.

94%

Target not met

Dispose of 

95% of 

simplified 

cases within 

one year.

95%

Target met

Dispose of 

90% of 

conventional 

cases within 

17 months

88%

Target not 

met

Dispose of 

98% of 

settlement 

part cases 

within 19 

months

100%

Target met

Dispose of 

95% of 

complex 

cases within 

20 months.

86%

Target not 

met

Improve training 

opportunities for 

Administrative 

Law Judges.

Time and 

resources 

dedicated to 

judicial training 

with special 

emphasis on 

mediation and 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Pro rata share 

of the 

Agency’s 

training 

resources was 

devoted.

Pro rata share of 

the Agency’s 

training 

resources was 

devoted.

Pro rata share of 

the Agency’s 

training 

resources was 

devoted.

Pro rata 

share of the 

Agency’s 

training 

resources 

was devoted.
7

Outcome Goals Performance

Measures

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

FY 2017

Actual

(Target)

dispute 

resolution.

Target met

(Pro rata 

share of the 

Agency’s 

training 

resources)

Target met

(Pro rata share 

of the Agency’s 

training 

resources)

Target met

(Pro rata share 

of the Agency’s 

training 

resources)

Target met

(Continue to 

designate a 

pro rata 

share of the 

Agency’s 

training 

resources)

Publish significant 

procedural 

decisions and nondispositive orders 

separately from 

other decisions.

Key decisions 

and orders 

published within 

4 months of the 

order.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

11 key 

decisions and 

orders 

published

Target not 

met

(15 key 

decisions and

orders 

published)

13 key decisions 

and orders 

published

Target not met

(20 key 

decisions and 

orders 

published)

13 key decisions 

and orders 

published

Target not met

(20 key 

decisions and 

orders 

published)

15 key 

decisions and 

orders 

published

Target not 

met

(20 key 

decisions and 

orders 

published)

The complexity of the cases increased the time required to resolve cases at the ALJ level. Factors leading 

to the increased complexity of cases include OSHA’s focus on encouraging more resource and timeintensive inspections, as well as the Office of the Solicitor’s decision to leverage litigation resources and 

focus away from high-volume and in favor of high-impact strategic cases. The increase in complexity of 

cases is a challenge for the Review Commission because processing such cases requires the judges to 

invest a greater amount of time in handling the matters and places an increased demand on the full-time 

equivalent positions assigned to handle the volume of cases. 

The following table provides actual ALJ workloads for fiscal years 2013 through 2017. 

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Actual

OSHA Inspections*: 39,228 36,163 35,817 31,948 32,283

a. Case Inventory, Start of Year 1,154 909 888 1,099 1,109

b. New Cases 2,215 2,017 2,164 2,183 2,168

c. Total Caseload 3,369 2,926 3,052 3,282 3,277

d. Disposals

 (1) With Hearing 68 50 61 42 44

 (2) Mandatory Settlement Conferences 81 66 56 86 85

 (3) Without Hearing 2,311 1,922 1,836 2,045 2,019

e. Total Dispositions 2,460 2,038 1,953 2,173 2,148

Total Case Inventory, End of Year 909 888 1,099 1,109 1,129

*Provided by OSHA. 
8

Executive Director Function 

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

Commission in fulfilling its mission. 

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

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

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

Director and include: 

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

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

Commission information; 

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

resources, equal opportunity, and general administrative services; 

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

employees; 

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

materials, supplies, and office space; 

 Implementing case management and administrative systems through IT hardware and software; 

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

 Enhancing telecommunications and improving technology efficiency and effectiveness. 

The following table provides the performance goals and results of this function for fiscal years 2013 

through 2017. 

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Invest in 

human capital 

by increasing 

staff 

development 

and training 

opportunities 

and 

increasing 

employees’ 

capabilities 

and potential.

One percent of 

basic payroll 

devoted to staff 

training and 

development by 

FY 2015, and 

no fewer than 

24 hours 

training per staff 

member per 

year.

.42% of 

basic payroll 

to training/ 

53% of staff 

received 12 

hours of 

training

Target not 

met

(.55% of 

basic payroll 

to training

and 12 

hours)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 2014 

– 2018 Strategic 

Plan
9

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Examine and 

identify 

contracted 

positions 

appropriate 

for 

insourcing.

Percentage of 

positions 

identified 

appropriate for 

insourcing that 

are insourced.

No 

additional 

positions 

identified for 

insourcing

Target met

(Insource 

any 

additional 

positions 

identified)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 2014 

– 2018 Strategic 

Plan

Use of 360-

degree 

employeesupervisor 

feedback 

mechanisms.

All supervisors 

subject to 360-

degree feedback 

and feedback is 

used to ensure 

that individual 

and 

organizational 

effectiveness 

goals are being 

met.

Feedback 

Instrument 

used to 

evaluate 

supervisors

Target met

(Feedback 

mechanism 

used to 

evaluate all 

supervisors)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 2014 

– 2018 Strategic 

Plan

Ensure that

the Review 

Commission’s website 

is accessible 

to people with 

disabilities 

and serves as 

a useful 

repository for 

information 

about the 

agency and its 

adjudicatory 

activities.

Timeliness of 

postings to 

agency web site.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

All required 

material posted 

to the website in 

less than 7 days 

and usually 

within one day 

after issuance.

Target met

(All material 

posted no later 

than 7 days after 

issuance)

All required 

material posted 

to the website in 

less than 7 days 

and usually 

within one day 

after issuance.

Target met

(All material 

posted no later 

than 7 days after 

issuance)

All required 

material posted 

to the website in 

less than 7 days 

and usually 

within one day 

after issuance.

Target met

(All material

posted no later 

than 7 days after 

issuance)

All required 

material posted 

to the website in 

less than 7 days 

and usually 

within one day 

after issuance.

Target met

(All material 

posted no later 

than 7 days after 

issuance)

Produce 

timely and 

accurate 

reports on the 

Review 

Commission’s 

activities, 

including all 

reports 

required by 

law.

Timeliness of 

submissions of 

required reports, 

e.g., financial 

statements, 

OMB, OPM, 

and EEO 

reports, etc.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

All material 

submitted by 

required 

deadlines.

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)

All material 

submitted by 

required 

deadlines.

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)

All material 

submitted by 

required 

deadlines.

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)

All material 

submitted by 

required 

deadlines.

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)
10

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Broaden the 

Review 

Commission’s outreach 

activities with 

other Federal 

agencies and 

the affected 

public, 

including 

targeted 

education and 

outreach for 

individuals 

with limited 

English 

proficiency.

Participation in 

professional 

conferences and 

meetings and 

strategic 

engagement 

with 

stakeholders.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Agency focus 

was to revise 

the draft 

language access 

plan and submit 

to DOJ for 

approval.

Target not met

(Agency to 

sponsor one 

outreach and 

educational 

activity per 

year)

Draft language 

access plan was 

posted on the 

Agency’s 

website.

Target met

(Fully 

implement a 

language access 

plan and post to 

the Agency’s 

website for 

public access)

Draft language 

access plan is 

posted on the 

Agency’s 

website.

Target met

(Fully 

implement a 

language access 

plan and post to 

the Agency’s 

website for 

public access)

Review 

Commission 

documents were 

reviewed, 

translated, and 

posted on the 

agency’s 

website.

Target met

(Review 

documents to be 

translated and 

posted on the 

agency’s 

website)

Develop and 

present an 

annual budget 

and 

performance 

plan that 

clearly 

represents 

how the 

organization 

will 

accomplish 

governmentwide 

management 

priorities, 

agency-wide 

goals, and 

organizational goals.

System that 

links resources 

to specific 

activities that 

support 

measurable 

programmatic 

outcomes and 

objectives.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Resources were 

identified for 

various 

programs that 

support the 

methodology to 

efficiently align 

the budget with 

program goals.

Target met

(Identify 

resources to 

support the 

methodology to 

efficiently align 

the budget with 

program goals)

Agency 

program goals 

were aligned 

with the budget 

to efficiently 

accomplish the 

mission.

Target met

(Align budget 

with Agency 

program goals 

to efficiently 

accomplish 

mission (e.g., 

program, human 

capital, 

procurement, IT 

infrastructure, 

and space and 

facilities))

Agency 

program goals 

continue to be 

aligned with the 

budget to 

efficiently 

accomplish the 

mission.

Target met

(Align budget 

with Agency 

program goals 

to efficiently 

accomplish 

mission (e.g., 

program, human 

capital, 

procurement, IT 

infrastructure, 

and space and 

facilities))

Agency program 

goals are aligned 

with the budget 

to efficiently 

accomplish the 

mission.

Target met

(Align budget

with agency 

program goals to 

efficiently 

accomplish 

mission (e.g., 

program, human 

capital, 

procurement, IT 

infrastructure/sp

ace, and 

facilities))
11

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Implement a 

comprehensive human 

capital plan 

designed to 

recruit, retain 

and develop 

staff; support 

succession 

planning by 

strategically 

aligning 

present and 

future human 

capital needs 

and 

workforce 

planning; and 

evaluate the 

performance 

management 

system based 

on individual 

and 

organizational effectiveness.

Increase 

personnel 

capabilities and 

development by 

improving 

training 

opportunities.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

.55% of basic 

payroll was 

devoted to staff 

training and 

development.

Target met

(.55% of basic 

payroll devoted 

to staff training 

and 

development)

.44% of basic 

payroll devoted 

to staff training 

and 

development.

Target not met

(.65% of basic 

payroll devoted 

to staff training 

and 

development)

.44% of basic 

payroll devoted 

to staff training 

and 

development.

Target not met

(.70% of basic 

payroll devoted 

to staff training 

and 

development)

.80% of basic 

payroll devoted 

to staff training 

and 

development.

Target met

(.80% of basic 

payroll devoted 

to staff training 

and 

development)1

 

1 The Review Commission devoted .80 percent of basic payroll to staff training and development this fiscal year. However, we expensed only 

.59 percent due to a nearly eight-month Continuing Resolution which postponed the timely allocation of training funds. 
12

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Integrate 

knowledge 

management 

(KM) 

processes into 

a plan to 

capture, share 

and generate 

knowledge 

and establish 

a unified 

knowledge 

network of 

people, 

processes and 

technology to 

enhance 

operations 

and 

efficiencies in 

all aspects of 

essential 

agency 

operations. 

Conduct 

periodic 

knowledge 

audits to 

identify sources 

of knowledge 

and “at risk” 

knowledge 

gaps.**

Tailor IT 

infrastructure to 

support the 

effortless 

sharing and 

transfer of 

knowledge.

Degree to which 

best practices 

and lessons 

learned are 

integrated into 

the performance 

management 

system. 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Staff trained in 

learning 

solution 

designed to 

optimize 

organizational 

performance 

and identify KM 

gaps.

Target 

partially met

(Design the KM 

audit to 

establish 

benchmarks to 

evaluate 

knowledge gaps 

in the essential 

Agency 

operations and 

programs).

Identified 

knowledge gap 

vulnerabilities 

to enhance 

Agency 

operations and 

programs. 

Target met

(Use findings 

from evaluation 

of KM audit to 

identify and 

address 

knowledge 

gaps).

Implemented a 

Phased 

Retirement 

directive, 

identified 

knowledge gap 

vulnerabilities, 

and enhanced 

telework 

opportunities to 

retain 

employees that 

move outside of 

the commuting 

area.

Target Met

(Use findings 

from evaluation 

of KM audit to 

identify and 

address 

knowledge 

gaps).

Reviewed 

agency policies, 

organizational 

charts, and 

position 

descriptions to 

identify 

knowledge gap 

vulnerabilities.

Target met

(Evaluate and 

address KM 

vulnerabilities to 

further enhance 

agency 

operations and 

programs)

 

** Areas identified as potential “at risk” knowledge gaps include programs and functions where a subject matter expert is eligible to leave the 

Agency (through retirement or career transition) in one to three years and no backup expert has been identified to assume the duties and 

responsibilities vacated. 
13

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Improve 

technology 

infrastruc-ture 

through 

efficiencies 

and 

investments 

(e.g., training, 

equipment, 

and services) 

to support the 

effective use 

of broadband, 

cyber 

security, and 

energy 

efficiency.

Streamline 

operations and 

infrastructure to 

eliminate 

duplication; 

minimize 

servers, storage 

and application 

sprawl.

Maintain 

standardized 

platforms 

including 

hardware and 

software.

Improve 

network/commu

nications to 

ensure 

customers can 

access 

necessary 

information 

without delay.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

Evaluated 

expanding the 

existing IT 

infrastructure 

and began 

procuring 

equipment and 

services 

necessary to 

support the efiling initiative.

Target met

(Evaluate 

expanding the 

existing IT 

infrastructure to 

support e-filing 

initiative)

Upgraded data 

circuits, 

implemented a 

new data 

analysis 

platform that 

scans internet 

traffic, trained 

staff on usage 

policies, and 

procured and 

installed Host 

servers.

Target met

(Implement 

recommended 

IT infrastructure 

upgrades 

identified in 

evaluation)

Upgraded Citrix 

to permit 

additional 

security 

measures; 

upgraded 

servers to 

Virtual 

machines; 

implemented a 

cloud based 

case 

management 

system and 

provided 

training to 

users; upgraded 

desktops; and 

procured new 

servers.

Target met

(Implement 

recommended 

IT infrastructure 

upgrades 

identified in 

evaluation)

-Migration of 

Mail 

(exchange) to 

FedRAMP 

certified 

Office 365.

-Moved locally 

administered 

share point 

(intranet) to 

Office 365.

-Instituted 

changes to efiling system 

to accommodate the user 

community.

-Encrypted and 

upgraded 

software on 

agency laptops

-Started 

deployment of 

two-factor 

authentication 

using personal 

identity 

verification.

Target met

(Continue 

monitoring 

technology 

infrastructure to 

determine if 

additional 

resources are 

required)
14

Outcome 

Goals

Performance 

Measures

FY

2013

Actual

(Target)

FY

2014

Actual

(Target)

FY

2015

Actual

(Target)

FY 

2016

Actual

(Target)

FY

2017

Actual

(Target)

Use existing 

real property 

more 

effectively by 

implementing energy 

efficiency 

practices, 

space 

alignment 

efforts (e.g., 

sustainability) and 

expanding 

telework.

Implement 

measures to 

reduce 

operating 

expenses when 

negotiating 

lease and 

develop a 

system to 

evaluate areas 

of consumption 

that impact 

sustainability.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Use of virtual 

machines and 

all equipment 

purchases meet 

EPA Energy 

Efficiency 

standards.

Target met

(Establish goal 

of acquiring a 

percentage of 

supplies and 

equipment from 

eco-friendly 

sources)

Disposed of 

equipment 

through 

certified 

recyclers.

Target met

(Dispose of 

equipment in an 

environmentally 

friendly 

manner)

Use of virtual 

machines and 

all equipment 

purchases meet 

EPA Energy 

Efficiency 

standards. 

Moved to a 

shared printing 

environment by 

using installed 

copiers as 

default printers 

moving away 

from desktop 

printers. 

Expanded Citrix 

to accommodate 

additional 

telework staff.

Target met

(Increase the 

percentage of 

supplies and 

equipment 

procured from 

eco-friendly 

sources)

Use of virtual 

machines and 

all equipment 

purchases meet 

EPA Energy 

Efficiency 

standards. 

Expanded Citrix 

to accommodate 

additional 

telework staff.

Target met

(Increase the 

percentage of 

supplies and 

equipment

procured from 

eco-friendly 

sources)

-Expanded the 

use of Virtual 

Machines.

-Moved 

infrastructures 

to FedRAMP 

providers.

Target met

(Continue 

monitoring to 

ensure supplies 

and equipment 

are procured 

from ecofriendly sources)

Enhance the 

agency’s 

FOIA 

processing 

system by 

developing 

internet-based 

capabilities.

Development of 

an electronic 

form and/or 

request tracking 

capability.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Developed an 

electronic 

request form 

used for 

processing and 

expediting 

FOIA requests.

Target met

(Assessment of 

tools and 

resources 

necessary for 

processing and 

expediting 

FOIA requests 

electronically)

Successful 

implementation

of FOIA online 

form and use of 

dedicated FOIA 

email address to 

expedite receipt, 

tracking, and 

processing of 

requests.

Target met

(Develop tools 

to be used for 

processing and 

expediting 

FOIA requests 

electronically)

Increased 

efficiency of 

FOIA online 

form and use of 

dedicated FOIA 

email address to 

expedite receipt, 

tracking, and 

processing of 

requests.

Target met

(Develop tools 

to be used for 

processing and 

expediting 

FOIA requests 

electronically)

Increased use of 

FOIA online 

form and 

dedicated FOIA 

email address; 

expanded 

tracking 

capability and 

improved

communication 

with requesters; 

eliminated need 

to implement 

online tracking 

system.

Target met

(Explore 

advanced 

options for 

online tracking 

capability)
15

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. 

The Review Commission received an unqualified opinion for each financial audit conducted from FY 

1996 through FY 2013, and an unmodified opinion for the FY 2014 through FY 2017 audits. The terms 

“unqualified” and “unmodified” refer to clean opinions. 

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

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

Administrative Resources Center prepared the Review Commission’s FY 2017 financial statements, 

which include comparative data for FY 2016. The principal financial statements include the Balance 

Sheet, Statement of Net Cost, Statement of Changes in Net Position, and Statement of Budgetary 

Resources. 

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

effective, given higher payroll costs and higher costs for goods and services to maintain operations and 

fulfill our mission. 

Analysis of the Balance Sheet 

OSHRC’s assets in FY 2017 totaled $4,223,314 as of September 30, 2017. This represents an increase of 

$742,012. The Fund Balance with Treasury of $4,223,314 represents OSHRC’s largest asset as of 

September 30, 2017. It increased 21 percent from FY 2016 and represents 100 percent of the agency’s 

total assets for FY 2017. General Property, Plant, and Equipment were fully depreciated as of September 

30, 2017. 

OSHRC’s liabilities in FY 2017 totaled $1,105,394 as of September 30, 2017. This is an increase of 

$160,038. The accounts payable balance at September 30, 2017 was $294,580, an increase of $134,890. 

Unfunded annual leave totaled $468,443 and is approximately 42 percent of total agency liabilities. 

Net Position is the difference between total assets and total liabilities. The total net position for FY 2017 

increased by $582,490 from FY 2016. 

Analysis of Statement of Net Cost 

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

OSHRC’s two major programs, Administrative Law Judge and Commission. The Total net cost of 

operations in 2017 was $12,756,038, an increase of $586,152 over the FY 2016 net cost of operations of 

$12,169,886. 

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 $582,490 in 2017 from 2016, a change of 

approximately 22.9 percent. 
16

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 FY 2017, OSHRC had total budgetary resources 

of $14,231,379, which is $794,027 more than in FY 2016. 

Management Assurances 

Systems, Controls, and Legal Compliance

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

Office of Management and Budget (OMB) Circular A-123, Management’s Responsibility for Internal 

Control. The system of internal controls for this agency is functioning well. It provides reasonable 

assurance as to the efficiency and effectiveness of programs and operations, reliability of financial and 

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

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

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

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

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

agency’s internal operations and determining if there are any weaknesses that need correction. In FY 

2017, two program reviews took place: an audit of FY 2017 financial statements, and an audit of 

computer and information security. 

Financial Audit 

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

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

received an unqualified opinion for each financial audit conducted from FY 2003 through FY 2013, and 

an unmodified opinion for the audits conducted in FY 2014 through FY 2017. 

Regarding financial management, the National Finance Center (NFC) provided payroll services, and the 

Bureau of the Fiscal Service (BFS) 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 BFS. 

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

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

disbursements are made consistent with management’s direction. For example, BFS reports are reviewed 

and reconciled to assure that the agency’s obligation and disbursement actions are properly recorded and 

that the year-end financial statements are correctly stated. The agency’s Budget and Finance Office also 

prospectively certifies funds availability for all obligations. In addition, the OEXD conducts periodic 

reviews of internal systems including travel, payroll, and procurement. 

The FY 2017 financial audit is expected to result in an “unmodified” opinion with no reported material 

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

functioning well. It provides reasonable assurance as to the efficiency and effectiveness of programs and 

operations, reliability of financial and performance information, and compliance with laws and 

regulations. These controls satisfy the requirements of the Federal Managers' Financial Integrity Act. As 

previously mentioned, the Review Commission has had annual audits of its financial statements since FY 

2003, including reviews of the adequacy of the Review Commission’s internal control systems. 
17

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

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

payroll and personnel services. In addition to the agency’s internal controls and procedures that safeguard 

assets and ensure that obligations and disbursements are made consistent with management’s direction, 

the BFS and the NFC have established practices and procedures that assure appropriate internal controls. 

The two agencies’ internal control systems are evaluated independently. 

Improper Payments 

The Review Commission made two improper payments in FY 2017 that resulted in overpayments. These 

payments were recuperated with credit memos that were applied to billings received from the vendor after 

the improper payments were made. The agency continued the practice of reviewing the General Services 

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

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

2017 were verified using the method above, except for payments to Federal vendors, payroll, and credit 

card payments. 

The agency continues to attribute progress made in eliminating improper payments to the implementation 

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

was implemented in FY 2013, requires agency staff responsible for processing invoices to focus on 

prevention, detection, and recovery. Prevention activities, which are executed prior to the payment of an 

invoice, include pre-payment audits, risk prioritization, and predictive modeling. Transactions that are 

identified as being “high risk” are subject to a second level of review prior to being forwarded to the 

Certifying Official for approval for payment. Detection activities, which are performed subsequent to 

payment, are based largely on reports generated by the entity within the agency that is responsible for 

analyzing invoice processing activities. For example, the Review Commission analyzes a monthly report 

detailing the cumulative total and number of invoices processed during the previous 30-day reporting 

period. The Review Commission initiated a review of its prevention and detection process in the 4th

quarter of FY 2017 to avoid making improper payments. 

Fraud Reduction 

The Review Commission has identified its Charge Card Program, which includes purchase and travel 

cards, as a high-risk area for fraud. As a result, the agency utilizes various methods to eliminate fraud and 

misuse. For the purchase card program, cardholders must receive approval from the Executive Director 

prior to making purchases with the government purchase card. In addition, purchase cardholders are 

required to submit receipts with their monthly statements so that each charge can be reviewed and verified 

by budget staff prior to approval and payment. For the travel card program, a monthly detailed account 

cycle report from the charge card vendor is reviewed in conjunction with travel vouchers to detect card 

misuse. 

The Review Commission has begun an evaluation of fraud risks within the agency. In addition, an audit 

of the financial statements and an audit of the agency’s information technology systems were conducted 

for FY 2017. The results of the evaluation and the audits will be used to improve fraud prevention within 

the agency. 

Computer and Information Security Program 

The Review Commission has and continues to conduct annual independent evaluations with the 

assistance of private contractors since FY 2003. The Review Commission contracts for annual 

independent evaluations of its computer and information security programs consistent with the Federal 

Information Security Management Act of 2014 (FISMA 2014). These evaluations are conducted under 

the requirements of the Government Information Security Reform Act (the predecessor to FISMA), as 

well as the Office of Management and Budget’s implementing guidelines, and National Institute of 
18

Standards and Technology (NIST) guidance. Although the Review Commission does not have an 

Inspector General, we have requested that function be performed by an independent contractor. 

The FY 2017 independent audit demonstrates the Review Commission’s commitment to keeping up with 

additions and changes to FISMA law. Some specific examples in recent years include the incorporation 

of NIST Special Publication 800-53 Revision 4, NIST Special Publication 800-18, Federal Information 

Processing Standards (FIPS) 199, FIPS 200, and FIPS 201, each of which place additional requirements 

on the agency. The Review Commission’s security program continues to be incorporated into its annual 

performance and security plans in accordance with the law and provides reasonable assurances and 

safeguards to maintain integrity and competence. Furthermore, the Review Commission practices 

delegation of authority as a structured organization with defined separation of duties and supervision. 

The Review Commission continues to document and test its implemented virus detection program along 

with automatic updates and scanning. Virus protection has been implemented at the server and expanded 

to our host as well as at the workstation level, which has significantly reduced the number of spam and 

other unwanted electronic mail messages. Additional controls in place to protect data from accidental or 

malicious alteration or destruction include the U.S. Department of Homeland Security’s (DHS) Trusted 

Internet Connection (TIC), Einstein3a accelerated (U.S. Cert Program), and Intrusion Prevention Security 

Services utilization. These provide continuous monitoring of the network, intrusion detection and 

prevention, system and email scans, separation of duties based on access need and clearance, internal 

intrusion detection, monitoring and incident reporting and investigation. 

In addition to security controls provided by DHS, OSHRC utilizes its deployed firewall and Intrusion 

Detection System (IDS) to provide network perimeter security. Formal procedures for reviewing logs are 

in place, and the Information Technology Officer identifies incidents when a security violation occurs. 

In addition to enhancements to the Review Commission’s information security program, the agency has 

directed considerable resources to protecting personally identifiable information. Under the newly 

appointed Senior Agency Official for Privacy (SAOP), the agency has revised its Breach Response Plan 

as required by OMB Memorandum 17-12 and, in accordance with the revised plan, the SAOP has 

conducted the agency’s first tabletop exercise. Additionally, revisions were made to the agency’s Privacy 

Act Directive to incorporate changes required by OMB Circulars A-108 and A-130, and OMB 

Memorandum 17-06. These revisions to the Directive include, among other things, the addition of an 

inventory/monitoring program for collection and use of social security numbers, and a Continuous 

Monitoring Program. The agency has also developed and approved a guidance document for Privacy 

Impact Assessments and Privacy Threshold Analyses. As with its information security program, the 

Review Commission has stretched its limited financial and human resources as far as possible to establish 

and implement privacy programs that effectively protect data maintained by the agency. 

The Review Commission’s information security and privacy programs will, at a minimum, continue to 

implement appropriate recommendations made by an independent evaluator; incorporate performance 

measures to ensure that the security and privacy 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. 
19

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 e-filing system that was successfully implemented in FY 2016. The e-filing system 

directly supports our annual performance plan’s goals and targets, promotes transparency, supports 

technology improvements, and integrates business process automation to improve accuracy and efficiency 

in case management practices. In FY 2017, each of the 2,168 new cases docketed at the ALJ level were 

entered into the e-filing system, and progress on all cases was tracked. To assure the quality of the data, 

management periodically reviews the information in the case management/tracking system. The agency 

conducts test runs of the data to ensure that information is entered and updated on a timely basis. The 

reports are used to assess workload and make workload adjustments, when necessary. At the end of the 

year, this data is used by the offices to measure performance related to the goals and to improve 

management. 

Human resource measurements are used for the goals in the OEXD function. The data related to these 

goals is maintained and tracked in the Human Resource system, which includes spreadsheets to track 

training costs and hours, employee performance files, and personnel files. Management reviews the 

information for accuracy. 

Limitations of the Financial Statements

The principal financial statements are 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 are prepared 

from the books and records of the Review Commission in accordance with Federal Generally Accepted 

Accounting Principles (GAAP) and the formats prescribed by OMB. Reports used to monitor and control 

budgetary resources are prepared from the same books and records. The financial statements should be 

read with the realization that they are for a component of the United States Government. 
U.S. OCCUPATIONAL SAFETY AND HEALTH 

REVIEW COMMISSION 

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS 

FOR THE YEARS ENDED

SEPTEMBER 30, 2017 AND 2016 

 

Prepared By

Brown & Company CPAs and Management Consultants, PLLC

November 9, 2017
20

INDEPENDENT AUDITOR’S REPORT 

U.S. Occupational Safety and Health Review Commission 

Washington, D.C. 

Report on the Financial Statements 

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

Commission (OSHRC) as of September 30, 2017 and 2016, and the related statements of net cost, changes 

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

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

Management’s Responsibility for the Financial Statements 

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

accordance with U.S. generally accepted accounting principles; this includes the design, implementation, 

and maintenance of internal control relevant to the preparation and fair presentation of financial statements 

that are free from material misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

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

our audit in accordance with U.S. generally accepted government auditing standards and the standards 

applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller 

General of the United States; and the Office of Management and Budget (OMB) Bulletin No. 17-03, Audit 

Requirements for Federal Financial Statements. Those standards, and OMB Bulletin No. 17-03 require 

that we plan and perform the audit to obtain reasonable assurance about whether the financial statements 

are free from material misstatements. 

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

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

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

those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair 

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

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

control. Accordingly, we express no such opinion. An audit includes test of compliance with provisions 

of applicable laws, regulations, contracts, and grant agreements that have a direct effect on the 

determination of material amounts and disclosure in the financial statements. The purpose was not to 

provide an opinion on compliance with provisions of applicable laws, regulations, contracts and grant 

agreements and, therefore, we do not express such opinion. An audit also includes evaluating the 

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

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

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

our audit opinion. 
21

Opinion on the Financial Statements 

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, 2017 and 2016, and its net costs, changes in net position, and 

budgetary resources for the years then ended, in accordance with U.S. generally accepted accounting 

principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles require that the information in the Management’s Discussion 

and Analysis (MD&A), also regarded as Required Supplementary Information (RSI), be presented to 

supplement the basic financial statements. Such information, although not a part of the basic financial 

statements, is required by the Federal Accounting Standards Advisory Board, who considers it to be an 

essential part of financial reporting for placing the basic financial statements in an appropriate operational, 

economic, or historical context. We have applied certain limited procedures to the required supplementary 

information in accordance with U.S. generally accepted government auditing standards, which consisted of 

inquiries of management about the methods of preparing the information and comparing the information 

for consistency with management’s responses to our inquiries, the basic financial statements, and other 

knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or 

provide any assurance on the information because the limited procedures do not provide us with sufficient 

evidence to express an opinion or provide any assurance. 

Other Information 

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. 

The Message from the Agency Head and the Other Information sections are presented for purposes of 

additional analysis and are not required part of the financial statements. Such information has not been 

subjected to the auditing procedures applied in the audits of the financial statements, and accordingly, we 

do not express an opinion or provide any assurance on it. 

Report on Internal Control Over Financial Reporting 

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

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

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

of providing an opinion on internal control. Accordingly, we do not express such an opinion. 

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

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s 

financial statements will not be prevented, or detected and corrected on a timely basis. A significant 

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

material weakness, yet important enough to merit attention by those charged with governance. 

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

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

might be deficiencies, significant deficiencies or material weaknesses. During the audit of the financial 
22

statements no deficiencies in internal control were identified that were considered to be a material weakness. 

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

Report on Compliance and Other Matters 

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

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

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

determination of financial statement amounts. We limited our tests of compliance to the provisions 

described in the preceding sentence, and we did not test compliance with all laws, regulations and contracts 

applicable to OSHRC. The objective was not to provide an opinion on compliance with those provisions 

of laws, regulations, contracts and grant agreements, and we do not express such an opinion. 

The results of our tests disclosed no instances of noncompliance or other matters required to be reported 

under Government Auditing Standards or OMB Bulletin No. 17-03. 

Management’s Responsibility for Internal Control and Compliance 

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

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

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

and (3) ensuring compliance with other applicable laws and regulations. 

Auditor’s Responsibilities 

We are responsible for (1) obtaining a sufficient understanding of internal control over financial reporting 

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

and material effect on the financial statements and applicable laws for which OMB Bulletin No. 17-03 

requires testing, and (3) applying certain limited procedures with respect to the MD&A. 

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

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

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

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

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

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

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

not be sufficient for other purposes. 

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

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

financial statements and those required by OMB Bulletin No. 17-03 that we deemed applicable to the 

OSHRC’s financial statements for the fiscal year ended September 30, 2017. We caution that 

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

may not be sufficient for other purposes. 
23

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

and Other Matters 

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

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

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

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

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

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

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

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

parties. 

Largo, Maryland 

November 9, 2017
FINANCIAL STATEMENTS AND NOTES 
The accompanying notes are an integral part of these financial statements. 

24 

2017 2016

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 4,223,314 $ 3,481,302

Total Intragovernmental 4,223,314 3,481,302

Accounts Receivable, Net (Note 3) 52 -

Other (Note 5) 464 -

Total Assets $ 4,223,830 $ 3,481,302

Liabilities:

Intragovernmental

Accounts Payable $ 16,000 $ 4,685

Other (Note 7) 70,100 64,941

Total Intragovernmental 86,100 69,626

Accounts Payable 294,580 159,690

Other (Note 7) 724,714 716,040

Total Liabilities (Note 6) $ 1,105,394 $ 945,356

Net Position:

Unexpended Appropriations - Other Funds $ 3,586,828 $ 3,002,549

Cumulative Results of Operations - Other Funds (468,392) (466,603)

Total Net Position $ 3,118,436 $ 2,535,946

Total Liabilities and Net Position $ 4,223,830 $ 3,481,302

BALANCE SHEET

AS OF SEPTEMBER 30, 2017 AND 2016

(In Dollars)

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION
The accompanying notes are an integral part of these financial statements. 

25 2017 2016

Program Costs:

Administrative Law Judge $ 6,281,073 $ 5,992,452

Commission 6,474,965 6,177,434

Net Cost of Operations (Note 9) $ 12,756,038 $ 12,169,886

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016

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

26 

2017 2016

Cumulative Results of Operations:

Beginning Balances $ (466,603) $ (415,663)

Budgetary Financing Sources:

Appropriations Used 12,334,656 11,646,240

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 11) 419,593 472,706

Total Financing Sources 12,754,249 12,118,946

Net Cost of Operations (12,756,038) (12,169,886)

Net Change (1,789) (50,940)

Cumulative Results of Operations $ (468,392) $ (466,603)

Unexpended Appropriations:

Beginning Balances $ 3,002,549 $ 2,343,852

Budgetary Financing Sources:

Appropriations Received 13,225,000 12,639,000

Other Adjustments (306,065) (334,063)

Appropriations Used (12,334,656) (11,646,240)

Total Budgetary Financing Sources 584,279 658,697

Total Unexpended Appropriations $ 3,586,828 $ 3,002,549

Net Position $ 3,118,436 $ 2,535,946

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016

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

27

2017 2016

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 992,707 $ 849,371

Recoveries of Prior Year Unpaid Obligations 316,076 266,582

Other changes in unobligated balance (302,404) (317,601)

Unobligated balance from prior year budget authority, net 1,006,379 798,352

Appropriations 13,225,000 12,639,000

Total Budgetary Resources $ 14,231,379 $ 13,437,352

Status of Budgetary Resources:

New obligations and upward adjustments (total) (Note 12) $ 12,765,197 $ 12,444,645

Unobligated balance, end of year:

 Apportioned, unexpired account 536,003 224,294

Expired unobligated balance, end of year 930,179 768,413

Unobligated balance, end of year (total) 1,466,182 992,707

Total Budgetary Resources $ 14,231,379 $ 13,437,352

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 2,488,595 $ 1,909,526

New obligations and upward adjustments 12,765,197 12,444,645

Outlays (gross) (12,180,584) (11,598,994)

Recoveries of Prior Year Unpaid Obligations (316,076) (266,582)

Unpaid Obligations, End of Year (Gross) 2,757,132 2,488,595

Memorandum entries:

Obligated Balance, Start of Year $ 2,488,595 $ 1,909,526

Obligated Balance, End of Year $ 2,757,132 $ 2,488,595

Budget Authority and Outlays, Net:

Budget authority, gross $ 13,225,000 $ 12,639,000

Actual offsetting collections (3,661) (16,462)

Recoveries of prior year paid obligations 3,661 16,462

Budget Authority, net, (total) $ 13,225,000 $ 12,639,000

Outlays, gross $ 12,180,584 $ 11,598,994

Actual offsetting collections (3,661) (16,462)

Outlays, net, (total) 12,176,923 11,582,532

Distributed Offsetting Receipts (614) -

Agency outlays, net $ 12,176,309 $ 11,582,532

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016

(In Dollars)
28

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES

A. Reporting Entity

The Occupational Safety and Health Review

Commission (The Review Commission) is an

independent, adjudicatory agency created by

the Occupational Safety and Health Act (OSHA) 

of 1970. Its sole statutory mandate is to serve as

an administrative court providing just and 

expeditious resolution of disputes involving 

OSHA, employers charged with violations of 

Federal safety and health standards, and 

employees and/or their representatives. The 

Review Commission was created by Congress as

an agency completely independent of the U.S. 

Department of Labor (DOL) 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. 

The Review Commission has rights and

ownership of all assets reported in these

financial statements. The Review Commission

does not possess any non-entity assets. 

B. Basis of Presentation

The financial statements have been prepared to

report the financial position and results of

operations of the Review Commission. The

Balance Sheet presents the financial position

of the agency. The Statement of Net Cost

presents the agency’s operating results; the

Statement of Changes in Net Position displays

the changes in the agency’s equity accounts.

The Statement of Budgetary Resources

presents the sources, status, and uses of the

agency’s resources and follows the rules for

the Budget of the United States Government.

The statements are a requirement of the Chief

Financial Officers Act of 1990 and the

Government Management Reform Act of 1994.

They have been prepared from, and are fully 

supported by, the books and records of the 

Review Commission in accordance with the 

hierarchy of accounting principles generally 

accepted in the United States of America, 

standards issued by the Federal Accounting 

Standards Advisory Board (FASAB), Office 

of Management and Budget (OMB) Circular 

A-136, Financial Reporting Requirements, as 

amended, and the Review Commission’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 financial 

statements and associated notes are presented 

on a comparative basis. Unless specified 

otherwise, all amounts are presented in dollars. 
29

C. Basis of Accounting

Transactions are recorded on both an accrual

accounting basis and a budgetary basis. Under

the accrual method, revenues are recognized

when earned, and expenses are recognized

when a liability is incurred, without regard to

receipt or payment of cash. Budgetary

accounting facilitates compliance with legal

requirements on the use of federal funds. 

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate

amount of the Review Commission’s funds with 

Treasury in expenditure and receipt fund 

accounts. Appropriated funds recorded in

expenditure accounts are available to pay current 

liabilities and finance authorized purchases.

The Review Commission does not maintain bank 

accounts of its own, has no disbursing

authority, and does not maintain cash held

outside of Treasury. Treasury disburses funds

for the agency on demand.

E. Accounts Receivable

Accounts receivable may consist of amounts

owed to the Review Commission by other

Federal agencies and the general public.

Amounts due from Federal agencies are

considered fully collectible. Accounts

receivable from the public include

reimbursements from employees. An allowance 

for uncollectible accounts receivable from the 

public is established when, based upon a review 

of outstanding accounts and the failure of all 

collection efforts, management determines that 

collection is unlikely to occur considering the 

debtor’s ability to pay. 

F. Property, Equipment, and Software

Property, equipment and software represent

furniture, fixtures, equipment, and information

technology hardware and software which are

recorded at original acquisition cost and are

depreciated or amortized using the straight-line 

method over their estimated useful lives. Major 

alterations and renovations are capitalized, 

while maintenance and repair costs are 

expensed as incurred. The Review

Commission’s capitalization threshold is

$50,000 for individual purchases and 

$500,000 for bulk purchases. Property and 

equipment acquisitions that do not meet the 

capitalization criteria are expensed upon 

receipt. Applicable standard governmental 

guidelines regulate the disposal and 

convertibility of agency property, equipment, 

and software. The useful life classifications 

for capitalized assets are as follows: 

Description Useful Life (years) 

Office Furniture 7 

Office Equipment 5

G. Advances and Prepaid 

Charges

Advance payments are generally prohibited by

law. There are some exceptions, such as

reimbursable agreements, subscriptions and

payments to contractors and employees.

Payments made in advance of the receipt of

goods and services are recorded as advances or

prepaid charges at the time of prepayment and

recognized as expenses when the related goods

and services are received. 

H. Liabilities

Liabilities represent the amount of funds likely

to be paid by the Review Commission as a

result of transactions or events that have

already occurred. 

The Review Commission reports its liabilities

under two categories, Intragovernmental and

With the Public. Intragovernmental liabilities

represent funds owed to another government

agency. Liabilities with the Public represent

funds owed to any entity or person that is not a

federal agency, including private sector firms

and federal employees. Each of these

categories may include liabilities that are

covered by budgetary resources and liabilities

not covered by budgetary resources. 
30

Liabilities covered by budgetary resources are

liabilities funded by a current appropriation or

other funding source. These consist of accounts 

payable and accrued payroll and benefits. 

Accounts payable represent amounts owed to

another entity for goods ordered and received 

and for services rendered except for

employees. Accrued payroll and benefits

represent payroll costs earned by employees

during the fiscal year which are not paid until

the next fiscal year. 

Liabilities not covered by budgetary resources

are liabilities that are not funded by any current 

appropriation or other funding source. These 

liabilities consist of accrued annual leave and 

unemployment insurance. 

I. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the

accrual is reduced as leave is taken. The balance 

in the accrued leave account is adjusted to reflect 

current pay rates. Liabilities associated with 

other types of vested leave, including 

compensatory, restored leave, and sick leave in

certain circumstances, are accrued at year-end, 

based on latest pay rates and unused hours of

leave. Funding will be obtained from future 

financing sources to the extent that current or

prior year appropriations are not available to

fund annual and other types of vested leave 

earned but not taken. Non-vested leave is 

expensed when used. Any liability for sick leave 

that is accrued but not taken by a Civil Service 

Retirement System (CSRS)-covered employee

is transferred to the Office of Personnel 

Management (OPM) upon the retirement of that 

individual. Credit is given for sick leave 

balances in the computation of annuities upon 

the retirement of Federal Employees Retirement 

System (FERS)-covered employees effective at 

100%. 

J. Accrued and Actuarial Workers’

Compensation

The Federal Employees' Compensation Act

(FECA) administered by the DOL addresses all 

claims brought by the Review Commission 

employees for on-the-job injuries. The DOL

bills each agency annually as its claims are 

paid, but payment of these bills is deferred for 

two years to allow for funding through the 

budget process. Similarly, employees that the 

Review Commission terminates without cause 

may receive unemployment compensation 

benefits under the unemployment insurance 

program also administered by the DOL, which 

bills each agency quarterly for paid claims. 

Future appropriations will be used for the

reimbursement to DOL. The liability consists

of (1) the net present value of estimated future

payments calculated by the DOL and (2) the

unreimbursed cost paid by DOL for

compensation to recipients under the FECA.

K. Retirement Plans

The Review Commission employees

participate in either the CSRS or the FERS.

The employees who participate in CSRS are

beneficiaries of the Review Commission

matching contribution, equal to seven percent

of pay, distributed to their annuity account in

the Civil Service Retirement and Disability

Fund. 

Prior to December 31, 1983, all employees

were covered under the CSRS program. From

January 1, 1984 through December 31, 1986,

employees had the option of remaining under

CSRS or joining FERS and Social Security.

Employees hired as of January 1, 1987 are

automatically covered by the FERS program.

Both CSRS and FERS employees may

participate in the federal Thrift Savings Plan

(TSP). FERS employees receive an automatic

agency contribution equal to one percent of

pay and the Review Commission matches any

employee contribution up to an additional four

percent of pay. For FERS participants, the

Review Commission also contributes the

employer’s matching share of Social Security.

FERS employees and certain CSRS

reinstatement employees are eligible to

participate in the Social Security program after

retirement. In these instances, the Review

Commission remits the employer’s share of the

required contribution. 
31

The Review Commission recognizes the

imputed cost of pension and other retirement

benefits during the employees’ active years of

service. OPM actuaries determine pension cost 

factors by calculating the value of pension

benefits expected to be paid in the future and

communicate these factors to the Review

Commission for current period expense

reporting. OPM also provides information

regarding the full cost of health and life

insurance benefits. The Review Commission

recognized the offsetting revenue as imputed

financing sources to the extent these expenses

will be paid by OPM. 

The Review Commission does not report on its

financial statements information pertaining to

the retirement plans covering its employees.

Reporting amounts such as plan assets,

accumulated plan benefits, and related unfunded 

liabilities, if any, is the responsibility of the 

OPM, as the administrator. 

L. Other Post-Employment Benefits

The Review Commission employees eligible to

participate in the Federal Employees' Health

Benefits Plan (FEHBP) and the Federal

Employees' Group Life Insurance Program

(FEGLIP) may continue to participate in these

programs after their retirement. The OPM has

provided the Review Commission with certain

cost factors that estimate the true cost of

providing the post-retirement benefit to current

employees. The Review Commission

recognizes a current cost for these and Other

Retirement Benefits (ORB) at the time the

employee's services are rendered. The ORB

expense is financed by OPM, and offset by the

Review Commission through the recognition

of an imputed financing source. 

M. Use of Estimates

The preparation of the accompanying financial

statements in accordance with generally

accepted accounting principles 

requires management to make certain estimates 

and assumptions that affect the reported 

amounts of assets, liabilities, revenues, and 

expenses. Actual results could differ from

 those estimates. 

N. Imputed Costs/Financing Sources

Federal Government entities often receive

goods and services from other Federal

Government entities without reimbursing the

providing entity for all the related costs. In

addition, Federal Government entities also

incur costs that are paid in total or in part by

other entities. An imputed financing source is

recognized by the receiving entity for costs that 

are paid by other entities. The Review

Commission recognized imputed costs and

financing sources in fiscal years 2017 and

2016 to the extent directed by accounting

standards. 

O. Reclassification 

Certain fiscal year 2016 balances have been 

reclassified, retitled, or combined with other 

financial statement line items for consistency 

with the current year presentation. 
32

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2017 and 2016 were as follows: 

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

the Treasury accounts. 

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

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

balance as described in the following paragraph. 

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

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

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

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

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

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

fund balance on hand (see Note 13). 

NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2017 and 2016 were as follows: 

The accounts receivable is primarily made up of employee receivables. 

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

material uncollectible accounts as of September 30, 2017 or 2016. 

2017 2016

Fund Balances:

Appropriated Funds $ 4,223,314 $ 3,481,302 

Total $ 4,223,314 $ 3,481,302 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 536,003 $ 224,294 

 Unavailable 930,179 768,413 

Obligated Balance Not Yet Disbursed 2,757,132 2,488,595 

Total $ 4,223,314 $ 3,481,302 

2017 2016

With the Public

Accounts Receivable $ 52 $ -

Total Accounts Receivable $ 52 $ -
33

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2017: 

Schedule of Property, Equipment, and Software as September 30, 2016: 

NOTE 5. OTHER ASSETS

Other assets balances as of September 30, 2017, and 2016, were as follows: 

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the Review Commission as of September 30, 2017 and 2016 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. 

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

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

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

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

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

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 223,168 $ 223,168 $ -

Total $ 223,168 $ 223,168 $ -

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 308,165 $ 308,165 $ -

Total $ 308,165 $ 308,165 $ -

2017 2016

With the Public

Travel Advances $ 464 $ -

Total Other Assets $ 464 $ -

2017 2016

Unfunded Leave $ 468,443 $ 466,603

Total Liabilities Not Covered by Budgetary Resources 468,443 $ $ 466,603

Total Liabilities Covered by Budgetary Resources 636,951 478,753

Total Liabilities $ 1,105,394 $ 945,356
34

NOTE 7. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2017 were as follows: 

Other liabilities account balances as of September 30, 2016 were as follows: 

NOTE 8. LEASES

Operating Leases

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

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

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

locations and terms are listed below. 

Current Total

Intragovernmental

Payroll Taxes Payable $ 70,100 $ 70,100

Total Intragovernmental Other Liabilities $ 70,100 $ 70,100

With the Public

 Payroll Taxes Payable $ 10,614 $ 10,614

 Accrued Funded Payroll and Leave 245,657 245,657

 Unfunded Leave 468,443 468,443

Total Public Other Liabilities $ 724,714 $ 724,714

Current Total

Intragovernmental

Payroll Taxes Payable $ 64,941 $ 64,941

Total Intragovernmental Other Liabilities $ 64,941 $ 64,941

With the Public

 Payroll Taxes Payable $ 9,857 $ 9,857

 Accrued Funded Payroll and Leave 239,581 239,581

 Unfunded Leave 466,602 466,602

Total Public Other Liabilities $ 716,040 $ 716,040

Location Term Lease Expiration Date

Atlanta, GA 116 months 9/30/2023

Denver, CO 120 months 9/30/2018

Washington, DC 60 months 4/23/2023
35

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.

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

options. 

NOTE 9. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intragovernmental costs and revenue represent exchange transactions between the Review

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

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

NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE

UNITED STATES GOVERNMENT 

The President’s Budget that will include fiscal year 2017 actual budgetary execution information has 

not yet been published. The President’s Budget is scheduled for publication in February 2018 and can 

be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2018 Budget of the United 

States Government, with the "Actual" column completed for 2016, has been reconciled to the 

Statement of Budgetary Resources and there were no material differences. 

Fiscal Year Building

2018 $ 1,569,991 

2019 1,459,353 

2020 1,457,830 

2021 1,473,826 

2022 1,490,298 

Thereafter 902,277 

Total Future Payments $ 8,353,575 

2017 2016

Administrative Law Judge

 Intragovernmental Costs $ 2,042,304 $ 1,993,177

 Public Costs 4,238,769 3,999,275

 Net Program Costs 6,281,073 5,992,452

Commission

 Intragovernmental Costs 2,105,349 2,054,705

 Public Costs 4,369,616 4,122,729

 Total Net Cost 6,474,965 6,177,434

Total Intragovernmental costs 4,147,653 4,047,882

Total Public costs 8,608,385 8,122,004

Total Net Cost $ 12,756,038 $ 12,169,886
36

In Millions 

NOTE 11. 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, OPM. For the years ended September 30, 

2017 and 2016, respectively, imputed financing was as follows: 

NOTE 12. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2017 and 2016

consisted of the following: 

Category A apportionments distribute budgetary resources by fiscal quarters. 

NOTE 13. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

As of September 30, 2017 and 2016, budgetary resources obligated for undelivered orders amounted 

to $2,120,646 and $2,009,841 respectively. 

NOTE 14. CUSTODIAL ACTIVITY

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

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

refunds. 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 $57 and $113 for the y e a r s ended September 30, 2017 and 2016, 

respectively. 

Distributed

Budgetary Obligations Offsetting Net

FY2016 Resources Incurred Receipts Outlays

Statement of Budgetary Resources $ 13 $ 12 -$ $ 12

 Difference - Due to Rounding - - - (1)

Budget of the U.S. Government $ 13 $ 12 -$ $ 11

2017 2016

Office of Personnel Management $ 419,593 $ 472,706 

Total Imputed Financing Sources $ 419,593 $ 472,706 

2017 2016

Direct Obligations, Category A $ 12,765,197 $ 12,444,645

Total Obligations Incurred $ 12,765,197 $ 12,444,645
37

NOTE 15. 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. 

2017 2016

 Obligations Incurred 12,765,197$ 12,444,645$ 

 Spending Authority from Offsetting Collections and Recoveries (319,737) (283,044)

 Offsetting Receipts (614) -

 Obligations Net of Offsetting Collections and Recoveries 12,444,846 12,161,601

 Imputed Financing from Costs Absorbed by Others 419,594 472,706

 12,864,440 12,634,307

 (110,190) (521,397)

 12,754,250 12,112,910

Generate Resources in the Current Period 1,788 56,976

Net Cost of Operations 12,756,038$ 12,169,886$ 

 Total Components of Net Cost of Operations That will not Require or 

 Total Resources Used to Finance the Net Cost of Operations 

Resources Used to Finance Activities

Budgetary Resources Obligated

Other Resources

 Total Resources Used to Finance Activities 

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

Operations