U.S. Occupational Safety and Health Review Commission 

OSHRC 

Performance and Accountability Report 

FY 2014

 
U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION 

FINANCIAL STATEMENTS 

FOR THE YEAR ENDED SEPTEMBER 30, 2014 AND 2013 

TABLE OF CONTENTS 

AGENCY HEAD MESSAGE 

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

FINANCIAL SECTION 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS ............ 21 

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 

FY 2014 Performance and Accountability Report 

Management Discussion and Analysis 

Overview 

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

is an independent, adjudicatory agency created by the Occupational Safety and Health Act of 1970 

(Act), 29 U.S.C. §§ 651-678. Its sole statutory mandate is to serve as a federal administrative court 

providing just and expeditious resolution of disputes involving the U.S. Department of Labor’s 

Occupational Safety and Health Administration (OSHA), the employers OSHA has charged with 

violations of federal safety and health standards, and employees and/or their representatives. Under 

the statutory framework enacted by Congress, the Review Commission is completely separate from 

and independent of the Department of Labor and OSHA. 

The Act and the Review Commission’s Rules of Procedure provide two levels of adjudication. The 

first level provides an employer and/or affected employee who files a timely notice of contest with an 

opportunity for a hearing before a Review Commission Administrative Law Judge (ALJ). The ALJ’s 

decision becomes a final order under the Act unless a member of the Review Commission exercises 

his/her discretion to direct the case for review. The second level involves the Review Commission’s 

review of an ALJ decision. The Review Commission has three members, appointed by the President 

and subject to Senate confirmation, who serve six-year terms. Both before its ALJs and the Members 

of the Review Commission, the agency seeks to provide fair, impartial, and timely adjudication of 

the cases concerning the safety and health of employees working in the United States. 

Mission and Organizational Structure

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

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

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

Act of 1970. 

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

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

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

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

function. 

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

also two regional offices, one in Atlanta and one in Denver, where additional Review Commission 

ALJs and staff are assigned.
2 

Our vision is simple, direct and performance oriented. We strive to be: 

 A judicial 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 define and clarify 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 strives to 

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

Challenges and Opportunities 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

will be delayed. 

The Commission operated with only two Commissioners during 6 months of fiscal year (FY) 

2014. This was the result of one Commissioner’s term expiring in FY 2011. The third 

Commissioner was appointed in April of 2014. Notwithstanding the lack of a full complement 

of Commissioners for half of the fiscal year, and the government shutdown which impacted the 

Agency’s ability to resolve cases, the Commission resolved 12 cases during fiscal year 2014 and 

met its GPRA goal targets for FY 2014 at the Commission level. 

The factors which 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 37,635 inspections in FY 2014. 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. 
3 

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

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

Proceedings, for certain relatively simple cases. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and legal expenses to employers contesting relatively small penalty cases. 

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 revised plan focuses on the three 

overarching goals of 1) Respect for the rule of law; 2) Expanding transparency and openness; 

and 3) Responsible stewardship of Agency resources. It also identifies innovative and 

comprehensive strategies to achieve the strategic goals and objectives. 

Commission Function

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

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

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

In FY 2014, the Commission had 36 cases pending on its docket at the beginning of the year. It 

received 11 new cases and resolved 12 cases by year-end. Thus, the Commission entered FY 

2015 with 35 cases pending review. 

The Commission operated with only two Commissioners during 6 months of FY 2014. This was 

the result of one Commissioner’s term expiring in FY 2011. The third Commissioner was 

appointed in April of 2014. 
4 

The following table provides the performance goals and results for this function for FY 2010 – 

FY 2014. 

Outcome 

Goals

Performance 

Measures

FY 2010 

Actual 

(Target)

FY 2011 

Actual 

(Target)

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

FY 2014 

Actual 

(Target)

Resolve the 

oldest cases 

on the Review 

Commission’s 

docket. 

All cases 

docketed at the 

Commission 

level prior to 

2008 resolved. 

20% 

Target 

not met 

(30% of 

oldest 

cases) 

Remaining 

80% 

Target met 

(Remaining 

70% of 

oldest 

cases) 

Completed 

by end of 

FY 2011 

Completed 

by end of 

FY 2011 

Completed by 

end of 

FY 2011 

Reduce the 

average age of 

open cases at 

the 

Commissionlevel.* 

Average age of 

open cases. 

32 months 

Target 

met

(41 

months or 

less) 

15 months 

Target met 

(36 months 

or 

less) 

18 months 

Target 

met 

(33 

months or 

less) 

21 months 

Target 

met 

(30 

months or 

less) 

26 months 

Target met 

(27 months or 

less) 

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 

practices that 

will minimize 

the average 

age of all 

pending 

Commissionlevel cases. 

Average age of 

all pending 

Commissionlevel cases. 

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 

Case 

management 

practices 

developed. 

The average 

age of all 

pending 

Commissionlevel cases is 

26 months. 

*Target met 

Develop case 

management 

practices. 

(27 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 

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 

Case 

management 

practices 

developed. 

Target met 

(Develop case 

management 
5 

Outcome 

Goals

Performance 

Measures

FY 2010 

Actual 

(Target)

FY 2011 

Actual 

(Target)

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

FY 2014 

Actual 

(Target)

recommendatio

ns 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 (15%) 

percent of 

pending cases 

practices) 

 * 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. 

The Commission met all of its Commission-level case resolution targets in FY 2014. In 

particular, pursuant to our new Strategic Plan, we developed case management practices to help 

focus on reducing the average age of the oldest pending Commission-level cases and of all 

pending Commission-level cases. 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 

oSemiannual 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 

 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 
6 

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

2014. 

Commission Case Activity 

FY 2010 

Actual 

FY 2011 

Actual 

FY 2012 

Actual 

FY 2013 

Actual 

FY 2014 

Actual 

New Cases: 

Cases Directed for 

 Review: 24 24 14 24 11 

Other New Cases: 

 Interlocutory 

 Appeals 0 6 2 0 0 

 Remands 0 0 3 1 0 

 Other 0 0 0 0 0 

 Total Other New 

 Cases: 0 6 5 1 0 

Total New Cases: 24 30 19 25 11 

Case Inventory from 

Prior Year: 22 31 35 31 36 

Total Caseload: 46 61 54 56 47 

Dispositions: 15 26 23 20 12 

Case Inventory, 

End of Year: 31 35 31 36 35 

 

Administrative Law Judge Function

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

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

OSHRC’s overall strategic goals. 

The Administrative Law Judge function began the fiscal year with 909 cases in its inventory and 

received 2,017 new cases during the year, for a total of 2,926 cases. A total of 2,038 cases were 

disposed of, leaving 888 cases in the inventory at the end of the fiscal year. 

The following table provides the performance goals and results for this function for FY 2010-

2014. 

Outcome Goals Performance 

Measures 

FY 2010 

Actual 

(Target) 

FY 2011 

Actual 

(Target) 

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

FY 2014 

Actual 

(Target) 

Ensure that a 

significant 

proportion of noncomplex cases at the 

ALJ level are 

resolved in less than 

one year. 

Percent 

within one 

year. 

98% 

Target 

met 

(98%) 

98% 

Target met 

(98%) 

96% 

Target not 

met 

(98%) 

95.3% 

Target 

not met

(98%) 

97% 

Target 

met 

(95%) 
7 

Outcome Goals Performance 

Measures 

FY 2010 

Actual 

(Target) 

FY 2011 

Actual 

(Target) 

FY 2012 

Actual 

(Target) 

FY 2013 

Actual 

(Target) 

FY 2014 

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.* 

89% 

Target not 

met 

(95%) 

84% 

Target not 

met 

(95%) 

87% 

Target not 

met 

(95%) 

85.6% 

Target not 

met 

(95%) 

80% 

Target not 

met 

(89%) 

Improve training 

opportunities for 

Administrative Law 

Judges. 

Time and 

resources 

dedicated to 

judicial 

training with 

special 

emphasis on 

mediation and 

dispute 

resolution. 

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 

Pro rata 

share of the 

Agency’s 

training 

resources 

was 

devoted. 

Target met

(Pro rata 

share of the 

Agency’s 

training 

resources) 

Publish significant 

procedural decisions 

and non-dispositive 

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

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 

11 key 

decisions 

and orders 

published 

Target not 

met 

(15 key 

decisions 

and orders 

published) 

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

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

The Review Commission is currently evaluating the factors that impact the timeframe by which 

complex cases are resolved by the Office of the Chief Administrative Law Judge to determine if 

the current outcome goal is a fair standard by which resolution should be measured. In FY 2014, 

several factors adversely impacted CALJ’s ability to meet the targeted outcome goal. First, the 

office was significantly understaffed. While vacancies in the number of administrative law 

judges were resolved for the first time in several years, the absence of adequate legal support 

persisted in FY 2014. Existing legal staff, which included four attorneys and nine legal 

assistants, proved inadequate to meet the administrative and legal writing needs of the full 

complement of ALJs. The shortage of administrative and legal support resulted in significant 

delays in issuing decisions and resolving cases. Absent additional support (e.g., legal research 

and writing), the downturn in performance at the ALJ level with respect to the disposition of 

complex cases may continue. Our pending FY 2015 budget request includes funding for three 

additional positions to provide legal support to OCALJ. 
8 

Next, the significant increase in our caseload over the past several years and 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 Department of Labor, 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 Administrative Law Judges to invest a greater amount of 

time in handling the matters, and places an increased demand on the limited FTE assigned to 

handle the volume of cases. 

Finally, the government shutdown at the beginning of the fiscal year impacted the time for 

resolving cases at the ALJ level. All staff in the Office of the Chief Administrative Law Judge, 

including ALJs, were furloughed during the shutdown in FY 2014. The furlough period is 

significant with respect to the outcome goal of resolving complex cases in less than one year 

because ALJs were unable to work on resolving cases. Therefore, the time lost during the 

duration of the shutdown, in addition to the time required to resume operations immediately 

following the furlough, impacted the Review Commission’s ability to meet the target goal. 

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

through 2014. 

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY2013

Actual 

FY 2014 

Actual

OSHA 

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

Administrative Law Judge Workload: 

a. Case Inventory, 

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

b. New Cases 2,565 3,175 2,696 2,215 2,017 

c. Total Caseload 3,342 4,158 4,041 3,369 2,926 

d. Disposals** 

 

(1) With 

Hearing 107 111 95 68 50 

(2) Mandatory 

Settlement 

Conferences 

 

81 66 

(3) Without 

Hearing 2,252 2,702 2,792 2,311 1,922 
9 

FY 2010

Actual

FY 2011

Actual

FY 2012

Actual

FY2013

Actual 

FY 2014 

Actual

e. Total 

 Dispositions 2,359 2,813 2,887 2,460 2,038 

Total Case 

Inventory, 

End of Year 983 1,345 1,154 909 888 

*Provided by OSHA. 

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

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

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

Office of the Executive Director Function

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

Commission in fulfilling its mission. 

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

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

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

the Executive Director and include: 

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

 Maintaining and enhancing a website to provide the public with 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. 
10 

The following table provides the performance goals and results for this function for FY 2011-

2014. 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

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.

.45% of basic 

payroll to 

training 

Target 

partially met

(.45% of 

basic 

payroll to 

training and 

10 hours)

.54% of 

basic payroll 

to 

training/62% 

of staff had 

12 hours of 

training 

Target not 

met 

(.55% of 

basic payroll 

to training 

and 12 

hours)

.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 

Examine and 

identify 

contracted 

positions 

appropriate for 

insourcing.

Percentage of positions 

identified appropriate for 

insourcing that are 

insourced.

One position 

identified 

Target met 

(Positions 

identified) 

One position 

insourced. 

No other 

position 

eligible 

Target met 

(Insource 

position 

identified 

and identify 

additional 

positions to 

insource)

No additional 

positions 

identified for 

insourcing 

Target met 

(Insource any 

additional 

positions 

identified)

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 

developed 

Target met 

 (Appropriate 

feedback 

instrument 

developed) 

Feedback 

Instrument 

used to 

evaluate 

supervisors 

Target met 

 (Feedback 

mechanism 

used to 

evaluate all 

supervisors) 

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 
11 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

Actual 

(Target) 

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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) 

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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) 

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 

(LEP) 

Participation in 

professional conferences 

and meetings and strategic 

engagement with 

stakeholders 

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 

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) 
12 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

Actual 

(Target) 

Develop and 

present an 

annual budget 

and 

performance 

plan that clearly 

present 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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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)

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan 

.55 of basic 

payroll was 

devoted to staff 

training and 

development. 

*Target met 

(.55 percent of 

basic payroll 

devoted to staff 

training and 

development) 
13 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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 

knowledge 

management 

audit to 

establish 

benchmarks to 

evaluate 

knowledge 

gaps in the 

essential 

agency 

operations and 

programs) 

Improve 

technology 

infrastructure 

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/communications 

to ensure customers can 

access necessary 

information without delay 

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 

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 efiling initiative)
14 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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 ecofriendly 

sources) 

-Disposed of 

equipment 

through 

certified 

recyclers. 

Target met 

(Dispose of 

equipment in 

an environmentally 

friendly 

manner) 
15 

Outcome 

Goals 

Performance Measures FY 

2011 

Actual 

(Target) 

FY 

2012 

Actual 

(Target) 

FY 

2013 

Actual 

(Target) 

FY 

2014 

Actual 

(Target) 

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

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

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) 

*The Review Commission devoted .55 percent of basic payroll to staff training and development. However, our ability to 

expense all funding for this purpose was severely impacted due to a nearly four month Continuing Resolution. 

**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. 

***The training is an essential tool necessary to effectively execute the KM audit. In addition, the Review Commission began 

developing a policy to implement OPM’s Phased Retirement human resources initiative. The initiative, designed to assist 

agencies with KM and continuity of operation as well as prepare the next generation of experts for success, was launched by 

OPM in August 2014. 

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 audit. 

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 2014 

financial statements, which include comparative data for FY 2013. 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. 
16 

Analysis of the Balance Sheet 

OSHRC’s assets in fiscal year 2014 were $3,013,067 as of September 30, 2014. This represents 

a decrease of $374,721 from fiscal year 2013. The Fund Balance with Treasury of $3,013,067 

represents OSHRC’s largest asset as of September 30, 2014. This is a decrease of approximately 

11 percent from fiscal year 2013 and represents approximately 99 percent of the agency’s total 

assets. General Property, Plant, and Equipment account for less than 1 percent of OSHRC’s total 

assets as of September 30, 2014. The net fixed asset value of $21,249 equals the cost less 

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

OSHRC’s liabilities in fiscal year 2014 totaled $874,534 as of September 30, 2014. This is an 

increase of $40,150 from fiscal year 2013. The accounts payable balance at September 30, 2014, 

was $149,541, an increase of $35,540 from September 30, 2013. Unfunded annual leave 

decreased $69,542 in 2014 from 2013. Unfunded annual leave represents 52.2 percent of total 

agency liabilities. 

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

fiscal year 2014 decreased by $432,671 from fiscal year 2013. 

Analysis of Statement of Net Cost 

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

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

net cost of operations in 2014 was $11,754,959, an increase of $593,163 or 5.31 percent more 

than the 2013 net cost of operations of $11,161,796. 

Analysis of the Statement of Changes in Net Position 

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

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

appropriations and the cumulative results of operations. The Net Position decreased $432,671 in 

2014 from 2013, a change of approximately 17 percent. 

Analysis of the Statement of Budgetary Resources 

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

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

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

2014, OSHRC had total budgetary resources of $12,064,165, which is $48,995 less than in 2013. 

Management Assurances 

Systems, Controls, and Legal Compliance

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

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

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

and effectiveness of programs and operations, reliability of financial and performance 
17 

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 2014, two program reviews took place: an audit of FY 2014 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 FY 2014 audit. 

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

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

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

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

procedures of the NFC and the BFS. 

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

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

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

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

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

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

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

internal systems including travel, payroll, and procurement. 

The FY 2014 financial audit resulted 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. 

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

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

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

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

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

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

internal control systems are evaluated independently. 
18 

Improper Payments 

The Review Commission is pleased to report that no improper payments were made in FY 2014. 

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 

2014 were verified using the method above, with the exception of payments to Federal vendors, 

payroll and credit card payments. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

collection activities to recapture improperly made payments. 

Computer and Information Security Program 

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

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

Management Act (FISMA), December 17, 2002 which was signed into law as part of the EGovernment Act (Public Law 107-347). 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 (OMB) implementing guidelines, and National Institute of 

Standards and Technology (NIST) guidance. 

Our 2014 FISMA audit states that the Occupational Safety and Health Review Commission 

(OSHRC) continues to keep up with additions and changes to FISMA law. Some specific 

examples in recent years include the incorporation of National Institute of Standards and 

Technology (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 OSHRC. The OSHRC security program continues to be 

incorporated into its annual performance and security plans in accordance with the law, and 

provides reasonable assurance and safeguards to maintain integrity and competence. 

Furthermore, OSHRC practices delegation of authority as a structured organization with defined 

separation of duties and supervision. 

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

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

information. 
19 

OSHRC has documented, tested, and implemented a virus detection program with automatic 

updates and scanning. Virus protection has been implemented at both the server and workstation 

levels. 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), Einstein3 (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 and 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. 

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

appropriate recommendations made by the independent evaluator; incorporate performance 

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

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

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

applications operate effectively and provide appropriate confidentiality, integrity and 

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

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

Performance Data Verification 

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

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

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

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

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

2014, each of the 2,017 new cases docketed at the Administrative Law Judge level were entered 

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

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

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

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

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

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

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

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

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

files, and personnel files. Management reviews the information for accuracy. 
20 

Limitations of the Financial Statements

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

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

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

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

formats prescribed by the Office of Management and Budget (OMB). The statements are in 

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

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

that they are for a component of the United States Government, a sovereign entity. 
U.S. OCCUPATIONAL SAFETY & HEALTH 

REVIEW COMMISSION 

INDEPENDENT AUDITOR’S REPORT

AND 

FINANCIAL STATEMENTS 

FOR THE YEARS ENDED 

SEPTEMBER 30, 2014 AND 2013 

 

Prepared By 

Brown & Company CPAs, PLLC 

November 5, 2014 

 
21 

1101 MERCANTILE LANE, SUITE 122 ● LARGO, MD 20774 

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

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, 2014 and 2013, and the related statements of net cost, 

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

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

Management’s Responsibility for the Financial Statements 

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

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

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

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

error. 

Auditor’s Responsibility 

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

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

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

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

(OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statement. Those standards and 

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

whether the financial statements are free from material misstatements. 

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

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

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

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

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

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

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

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

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

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

our audit opinion. 
22 

Opinion on the Financial Statements 

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

financial position of OSHRC as of September 30, 2014 and 2013, and its net costs, changes in net 

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

generally accepted in the United States of America. 

Other Matters 

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

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

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

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

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

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

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

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

information and comparing the information for consistency with management’s responses to our 

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

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

the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance. 

Report on Internal Control Over Financial Reporting 

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

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

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

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

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

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

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

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

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

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

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

governance. 

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

this section and was not designed to identify all deficiencies in internal control that might be deficiencies, 

significant deficiencies or material weaknesses. Given these limitations, during our audit we did not 

identify any deficiencies in internal control that we consider to be a material weakness. However, 

material weaknesses may exist that have not been identified. 

Report on Compliance and Other Matters 

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

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

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

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

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

results of our tests disclosed no instances of noncompliance or other matters that are required to be 
23 

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

Management’s Responsibility for Internal Control and Compliance 

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

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

providing a statement of assurance on the overall effectiveness of internal control (3) ensuring OSHRC’s 

financial management systems are in substantial compliance with FFMIA requirements, and (4) ensuring 

compliance with other applicable laws and regulations. 

Auditor’s Responsibilities 

We are responsible for: (1) obtaining a sufficient understanding of internal controls 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. 14-02 requires testing, and 

(3) applying certain limited procedures with respect to the MD&A and other RSI. 

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

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

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

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

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

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

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

not be sufficient for other purposes. 

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

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

financial statements and those required by OMB Bulletin No. 14-02 that we deemed applicable to 

OSHRC’s financial statements for the fiscal year ended September 30, 2014. We caution that 

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

testing may not be sufficient for other purposes. 

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

and Other Matters 

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

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

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

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

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

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

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

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

Largo, Maryland 

November 5, 2014 
FINANCIAL STATEMENTS AND NOTES 
The accompanying notes are an integral part of these financial statements. 

24 

2014 2013

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) 3,013,067 $ 3,387,788 $ 

Total Intragovernmental 3,013,067 3,387,788 

Accounts Receivable, Net (Note 3) - 800 

Property, Equipment, and Software, Net (Note 4) 21,249 38,249 

Total Assets 3,034,316 $ 3,426,837 $ 

Liabilities:

Intragovernmental

Accounts Payable 20,000 $ 22,196 $ 

Other (Note 6) 53,286 31,365 

Total Intragovernmental 73,286 53,561 

Accounts Payable 149,541 114,001 

Other (Note 6) 651,707 666,822 

Total Liabilities (Note 5) 874,534 $ 834,384 $ 

Net Position:

Unexpended Appropriations - Other Funds 2,598,920 $ 3,079,491 $ 

Cumulative Results of Operations - Other Funds (439,138) (487,038) 

Total Net Position 2,159,782 $ 2,592,453 $ 

Total Liabilities and Net Position 3,034,316 $ 3,426,837 $ 

BALANCE SHEET

AS OF SEPTEMBER 30, 2014 AND 2013

(In Dollars)

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

25 

2014 2013

Program Costs:

Administrative Law Judge

Gross Costs 5,642,380 $ 5,134,426 $ 

Net Program Costs 5,642,380 $ 5,134,426 $ 

Commission

Gross Costs 6,112,579 $ 6,027,370 $ 

Net Program Costs 6,112,579 $ 6,027,370 $ 

Net Cost of Operations (Note 8) 11,754,959 $ 11,161,796 $ 

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

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

26 

2014 2013

Cumulative Results of Operations:

Beginning Balances (487,038) $ (571,040) $ 

Budgetary Financing Sources:

Appropriations Used 11,209,876 10,587,507 

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 10) 592,983 658,291 

Total Financing Sources 11,802,859 11,245,798 

Net Cost of Operations (Note 8) (11,754,959) (11,161,796) 

Net Change 47,900 84,002 

Cumulative Results of Operations (439,138) $ (487,038) $ 

Unexpended Appropriations:

Beginning Balances 3,079,491 $ 2,794,929 $ 

Budgetary Financing Sources:

Appropriations Received 11, 11,666,908 411,000 

Other Adjustments (681,695) (794,839) 

Appropriations Used (11,209,876) (10,587,507) 

Total Budgetary Financing Sources (480,571) 284,562 

Total Unexpended Appropriations 2,598,920 $ 3,079,491 $ 

Net Position 2,159,782 $ 2,592,453 $ 

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

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

27 

2014 2013

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 1,189,603 $ 1,222,748 $ 

Recoveries of Prior Year Unpaid Obligations 144,387 17,854 

Other changes in unobligated balance (681,695) (184,590) 

Unobligated balance from prior year budget authority, net 652,295 1,056,012 

Appropriations 11,411,000 11,056,659 

Spending authority from offsetting collections 870 489 

Total Budgetary Resources 12,064,165 $ 12,113,160 $ 

Status of Budgetary Resources:

Obligations Incurred (Note 11) 11,235,518 $ 10,923,557 $ 

Unobligated balance, end of year:

 Apportioned (Note 2) 230,159 197,471 

 Unapportioned (Note 2) 598,488 992,132 

Total unobligated balance, end of year 828,647 1,189,603 

Total Budgetary Resources 12,064,165 $ 12,113,160 $ 

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 2,196,787 $ 2,197,903 $ 

Obligations Incurred (Note 11) 11,235,518 10,923,557 

Outlays (gross) (11,103,498) (10,906,819) 

Recoveries of Prior Year Unpaid Obligations (144,387) (17,854) 

Unpaid Obligations, End of Year (Gross) 2,184,420 2,196,787 

Budget Authority and Outlays, Net:

Budget authority, gross 11,411,870 $ 11,057,148 $ 

Actual offsetting collections (870) (489) 

Budget Authority, net, (total) 11,411,000 $ 11,056,659 $ 

Outlays, gross 11,103,498 $ 10,906,819 $ 

Actual offsetting collections (870) (489) 

Agency outlays, net 11,102,628 $ 10,906,330 $ 

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013

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

COMMISSION 

 NOTES TO THE FINANCIAL STATEMENTS 

28 

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

A. Reporting Entity 

The Occupational Safety and Health Review 

Commission (The Review Commission) is an 

independent, adjudicatory agency created by 

the Occupational Safety and Health Act 

(OSHA) of 1970. Its sole statutory mandate is 

to serve as an administrative court providing 

just and expeditious resolution of disputes 

involving OSHA, employers charged with 

violations of Federal safety and health 

standards, and employees and/or their 

representatives. The Review Commission was 

created by Congress as an agency completely 

independent of the Department of Labor to 

ensure that OSHA’s enforcement actions are 

carried out in accordance with the law and that 

all parties are treated consistent with due 

process should a dispute arise. 

The Review Commission reporting entity is 

comprised of General Funds and General 

Miscellaneous Receipts. 

General Funds are accounts used to record 

financial transactions arising under 

congressional appropriations or other 

authorizations to spend general revenues. 

General Fund Miscellaneous Receipts are 

accounts established for receipts of nonrecurring activity, such as miscellaneous 

receipts for services and benefits. 

The Review Commission receives custodial 

collections and holds custodial receivables that 

are non-entity assets and are transferred to 

Treasury at fiscal year end. 

B. Basis of Presentation 

The financial statements have been prepared to 

report the financial position and results of 

operations of the Review Commission. The 

Balance Sheet presents the financial position 

of the agency. The Statement of Net Cost 

presents the agency’s operating results; the 

Statement of Changes in Net Position displays 

the changes in the agency’s equity accounts. 

The Statement of Budgetary Resources 

presents the sources, status, and uses of the 

agency’s resources and follows the rules for 

the Budget of the United States Government.

The statements are a requirement of the Chief 

Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

the Review Commission in accordance with 

the hierarchy of accounting principles 

generally accepted in the United States of 

America, standards issued by the Federal 

Accounting Standards Advisory Board 

(FASAB), Office of Management and Budget 

(OMB) Circular A-136, Financial Reporting 

Requirements, as amended, and the Review 

Commission accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control the Review 

Commission’s use of budgetary resources. 

The financial statements and associated notes 

are presented on a comparative basis. Unless 

specified otherwise, all amounts are presented 

in dollars. 
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, receipt and 

deposit fund accounts. Appropriated funds 

recorded in expenditure accounts are available 

to pay current liabilities and finance authorized 

purchases. 

The Review Commission does not maintain 

bank accounts of its own, has no disbursing 

authority, and does not maintain cash held 

outside of Treasury. Treasury disburses funds 

for the agency on demand. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed 

to the Review Commission by other Federal 

agencies and the general public. Amounts due 

from Federal agencies are considered fully 

collectible. Accounts receivable from the 

public include reimbursements from 

employees. An allowance for uncollectible 

accounts receivable from the public is 

established when, based upon a review of 

outstanding accounts and the failure of all 

collection efforts, management determines that 

collection is unlikely to occur considering the 

debtor’s ability to pay. 

F. Property, Equipment, and Software 

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. 

Major alterations and renovations are 

capitalized, while maintenance and repair costs 

are expensed as incurred. The Review 

Commission’s capitalization threshold is 

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

for bulk purchases. Property 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 50% 

beginning FY 2010 and 100% in 2014. 

J. Accrued and Actuarial Workers’ 

Compensation 

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

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

annually as its claims are paid, but payment of 

these bills is deferred for two years to allow for 

funding through the budget process. Similarly, 

employees that the Review Commission 

terminates without cause may receive 

unemployment compensation benefits under 

the unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. The liability consists 

of (1) the net present value of estimated future 

payments calculated by the DOL and (2) the 

unreimbursed cost paid by DOL for 

compensation to recipients under the FECA. 

K. Retirement Plans 

The Review Commission employees 

participate in either the CSRS or the FERS. 

The employees who participate in CSRS are 

beneficiaries of the Review Commission 

matching contribution, equal to seven percent 

of pay, distributed to their annuity account in 

the Civil Service Retirement and Disability 

Fund. 

Prior to December 31, 1983, all employees 

were covered under the CSRS program. From 

January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of 

pay and the Review Commission matches any 

employee contribution up to an additional four 

percent of pay. For FERS participants, the 

Review Commission also contributes the 

employer’s matching share of Social Security. 

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, the Review 
31 

Commission remits the employer’s share of the 

required contribution. 

The Review Commission recognizes the 

imputed cost of pension and other retirement 

benefits during the employees’ active years of 

service. OPM actuaries determine pension 

cost factors by calculating the value of pension 

benefits expected to be paid in the future and 

communicate these factors to the Review 

Commission for current period expense 

reporting. OPM also provides information 

regarding the full cost of health and life 

insurance benefits. The Review Commission 

recognized the offsetting revenue as imputed 

financing sources to the extent these expenses 

will be paid by OPM. 

The Review Commission does not report on its 

financial statements information pertaining to 

the retirement plans covering its employees. 

Reporting amounts such as plan assets, 

accumulated plan benefits, and related 

unfunded liabilities, if any, is the responsibility 

of the OPM, 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 2014 and 

2013 to the extent directed by accounting 

standards. 

O. Contingencies 

Liabilities are deemed contingent when the 

existence or amount of the liability cannot be 

determined with certainty pending the outcome 

of future events. The Review Commission

recognizes contingent liabilities in the 

accompanying balance sheet and statement of 

net cost, when it is both probable and can be 

reasonably estimated. The Review 

Commission discloses contingent liabilities in 

the notes to the financial statements when the 

conditions for liability recognition are not met 

or when a loss from the outcome of future 

events is more than remote. 

P. Reclassification 

Certain fiscal year 2013 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, 2014 and 2013 were as 

follows: 

2014 2013

Fund Balances:

Appropriated Funds $ 3,013,067 $3,386,390 

Other Fund Types - 1,398 

Total $ 3,013,067 $3,387,788 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 230,159 $ 197,471 

 Unavailable 598,488 992,132 

Obligated Balance Not Yet Disbursed 2,184,420 2,196,787 

Non-Budgetary FBWT - 1,398 

Total $ 3,013,067 $3,387,788 

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 12). 

NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2014 and 2013 were as follows: 

2014 2013

With the Public

Accounts Receivable - $ 800 $ 

Total Accounts Receivable $ 800 - $ 

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, 2014 or 2013. 
33 

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE 

Schedule of Property, Equipment, and Software as of September 30, 2014: 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment 441,237 $ 419,988 $ 21,249 $ 

Total 441,237 $ 419,988 $ 21,249 $ 

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

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

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

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

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the Review Commission as of September 30, 2014 and 2013 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. 

2014 2013

Intragovernmental – Unemployment Insurance 3,841 $ 1,397 $ 

Unfunded Leave 456,546 526,088 

Total Liabilities Not Covered by Budgetary Resources 460,387 $ 527,485 $ 

Total Liabilities Covered by Budgetary Resources 414,147 306,899 

Total Liabilities 874,534 $ 834,384 $ 

Unemployment Insurance liabilities represent the unfunded liability for actual unemployment 

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

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

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

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

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

budgetary resources. Sick and other leave is expensed as taken. 
34 

NOTE 6. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2014 were as follows: 

Current Total

Intragovernmental

FECA Liability 5,385 $ 5,385 $ 

Unemployment Insurance Liability 3,841 3,841 

Payroll Taxes Payable 44,060 44,060 

Total Intragovernmental Other Liabilities 53,286 $ 53,286 $ 

With the Public

 Payroll Taxes Payable 6,747 $ 6,747 $ 

 Accrued Funded Payroll and Leave 188,414 188,414 

 Unfunded Leave 456,546 456,546 

Total Public Other Liabilities 651,707 $ 651,707 $ 

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

Current Total

Intragovernmental

Payroll Taxes Payable 31,365 $ 31,365 $ 

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

With the Public

 Payroll Taxes Payable 4,754 $ 4,754 $ 

 Accrued Funded Payroll and Leave 134,584 134,584 

 Unfunded Leave 526,087 526,087 

 Custodial Liability 1,397 1,397 

Total Public Other Liabilities 666,822 $ 666,822 $ 
35 

NOTE 7. LEASES

Operating Leases 

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

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

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

locations and terms are listed below. 

Lease Expiration Date

Atlanta, GA 09/30/2023

Denver, CO 09/30/2018

Washington, DC 04/23/2018

53 months

60 months

Location Term

116 months

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

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

Fiscal Year Building

2015 $ 1,495,942 

2016 1,511,956 

2017 1,528,438 

2018 (DC lease expires during 2018) 985,863 

2019 (Atlanta lease only) 46,765 

Thereafter (Atlanta lease only) 125,305 

Total Future Payments $ 5,694,269 

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

options. 
36 

NOTE 8. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental costs and revenue represent exchange transactions between the Review 

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

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

2014 2013

Administrative Law Judge

 Intragovernmental Costs 1,548,809 $ 1,663,554 $ 

 Public Costs 4,093,571 3,470,872 

 Net Program Costs 5,642,380 $ 5,134,426 $ 

Commission

 Intragovernmental Costs 1,677,877 $ 1,952,868 $ 

 Public Costs 4,434,702 4,074,502 

 Net Program Costs 6,112,579 $ 6,027,370 $ 

Total Intragovernmental Costs 3,226,686 $ 3,616,422 $ 

Total Public Costs 8,528,273 7,545,374 

Total Net Cost 11,754,959 $ 11,161,796 $ 

NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

The President’s Budget that will include fiscal year 2014 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2015 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2015 Budget of 

the United States Government, with the "Actual" column completed for 2013, has been 

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

NOTE 10. IMPUTED FINANCING SOURCES 

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

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

such benefits are the responsibility of the administering agency, OPM. For the fiscal years ended 

September 30, 2014 and 2013, respectively, imputed financing was as follows: 

2014 2013

Office of Personnel Management $ 592,983 $ 658,291 

Total Imputed Financing Sources $ 592,983 $ 658,291 
37 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2014 and 2013 

consisted of the following: 

2014 2013

Direct Obligations, Category A 11,235,518 $ 10,923,557 $ 

Total Obligations Incurred 11,235,518 $ 10,923,557 $ 

Category A apportionments distribute budgetary resources by fiscal quarters. 

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

For the fiscal years ended September 30, 2014 and 2013, budgetary resources obligated for 

undelivered orders amounted to $1,770,274 and $1,889,889, respectively. 

NOTE 13. CUSTODIAL ACTIVITY 

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

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

refunds. 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 $0 and $1,397 for the years ended September 30, 2014 and 2013, 

respectively. 

NOTE 14. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

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

available to its net cost of operations. 

2014 2013

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred 11,235,518 $ 10,923,557 $ 

Spending Authority From Offsetting Collections and Recoveries (145,257) (18,343) 

Net Obligations 11,090,261 10,905,214 

Other Resources

Imputed Financing From Costs Absorbed By Others 592,983 658,291 

Total Resources Used to Finance Activities 11,683,244 11,563,505 

Resources Used to Finance Items Not Part of the Net Cost of Operations 50,874 (417,811) 

Total Resources Used to Finance the Net Cost of Operations 11,734,118 11,145,694 

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

Generate Resources in the Current Period: 20,841 16,102 

Net Cost of Operations 11,754,959 $ 11,161,796 $