Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
disabilities. objectives. objectives. objectives. Target met
\(-Conduct an
|-Annually -Enhance |-Enhance |-Enhance annual review
review and/or Jemployee lemployee lemployee lof the agency’s
update agency }development [development development [performance
directives and learning andlearning |andleaming [management
pertaining to opportunities opportunities opportunities [systems to
workplace by making lby making lby making ensure they
flexibilities budgetary budgetary budgetary align with the
(e.g., hours of +|resources resources resources lagency’s
work, available for available for javailable for | revised
telework.) staff training. |stafftraining. |stafftraining. [strategic plan.
|-Annually -Annually |-Annually |-Enhance
review and/or |review and/or |review and/or |employee
update agency Jupdate agency Jupdate agency development
directives directives directives land learning
pertaining to |pertainingto |pertainingto opportunities
workplace workplace workplace by making
flexibilities flexibilities flexibilities budgetary
(e.g., hours of |(e.g., hours of |(e.g., hours of [resources
work, work, work, available for
itelework.)) telework.) telework.) staff training.
|-Annually
review and/or
update agency
directives
pertaining to
workplace
flexibilities

(e.g., hours of
work,
itelework.))

15



FINANCIAL STATEMENTS AND NOTES

& COMPANY

—_——

BROWN
‘CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC.

———- >



of the Financial Statements section of our report. We are required to be independent of OSHRC and to meet
our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

Responsibility of Management for the Financial Statements

OSHRC management is responsible for (1) the preparation and fair presentation of these financial
statements in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and
presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing and
presenting other information included in OSHRC’s Performance and Accountability Report (PAR), and
ensuring the consistency of that information with the audited financial statements and the RSI; and (4)
designing, implementing, and maintaining effective 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 for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit of the financial statements conducted in accordance with U.S. generally accepted
government auditing standards will always detect a material misstatement or a material weakness when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements, including omissions, are considered to be material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.

In performing an audit in accordance with U.S. generally accepted government auditing standards, we:

e Exercise professional judgment and maintain professional skepticism throughout the audit.

© Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements in order to obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion.

© Obtain an understanding of internal control relevant to our audit 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 OSHRC’s internal control over financial reporting.
Accordingly, no such opinion is expressed.

¢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

e Perform other procedures we consider necessary in the circumstances.

We are required to communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the financial statement audit.

31

| BROWN & COMPANY >
‘CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC.



i}

sO

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity

The U.S. Occupational Safety and Health Review Commission (Review Commission) is an
independent adjudicatory agency created by the Occupational Safety and Health Act of 1970 (the
Act). The 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 the Occupational Safety and Health Act, and employees and/or
their representatives. The Review Commission was created by Congress as an agency completely
independent of the Department of Labor (DOL) to ensure that OSHA’s enforcement actions are
carried out in accordance with the law and that parties are accorded due process.

The Review Commission 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 non-recurring activity, such as fines, penalties, fees
and other 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 reporting entity is a component of the U.S Government. For this reason, some of the assets and
liabilities reported by the entity may be eliminated for government-wide reporting because they are
offset by assets and liabilities of another U.S. Government entity. These financial statements should
be read with the realization that they are for a component of the U.S. Government, a sovereign entity.
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, 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,

39


Outcome | Performance] FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Goals Measures Actual Actual Actual Actual Actual

(Target) (Target) (Target) (Target) (Target)

(Dispose of 85
percent of
complex cases
within 20
months.)

Provide training | Increased Training Training Training Training ‘New goal
opportunities to attendance and |opportunities opportunities |opportunities |jopportunities [developed to
(1) ALJs and participation in |were offered | were provided | were provided |were provided |support the

(2) all attorneys | training toall ALJs, |toall ALJs, {to all ALJs, toall ALJs, Strategic Plan
and support opportunities, attorneys, and |attorneys, and |attorneys, and |attorneys, and |for FYs 2022 —
staff, in order to}internal and/or |support staff. |support staff. |support staff. support staff. |2026.

enhance their | external, for |Attomeys

capabilities on | ALJs and all attended live

technical and | attorneys and hearings for

legal issues, support staff. professional

legal writing, growth.

ethics, and

technology and Target met |Targetmet [Target met Target met |Target met
case (Attendance (Attendance |(Attendance |(Attendance |(Attendance
management. and and and and and

participation participation | participation in | participation in | participation in
by ALJs and in atleast one |at least one at least one at least one

attorneys and | training training training training
support staff, |opportunity |opportunity opportunity opportunity
at no less than |devoted to devoted to devoted to devoted to
one training j|management |management of|management of|management
opportunity |ofelectronic electronic electronic of electronic
annually, documents documents documents. documents
internally priortoand | prior to and prior to and prior to and
and/or during during hearings] during during
externally.) hearings (i.e., |(i.e., e-filing, hearings (i.e., hearings (i-e.,
e-filing, electronic e-filing, e-filing,
electronic discovery, or electronic electronic
discovery, or |electronic discovery, or discovery, or
electronic exhibits.) electronic electronic

exhibits.)) exhibits) _lexhibits.))



Reconciliation of Net Cost to Net Outlays as of September 30, 2021:

RECONCILIATION OF NET COST TONET OUTLAYS,
BUDGET AND ACCRUAL RECONCILIATION
FOR THE YEARS ENDED SEPTEMBER 30,2021

(Dollars)
‘Other than
Intrasovernmmenta  Intrazovernmental a1
Net Operating Cost (SNC) s 4,915,850 $ 9.956305 S$ 13972155
‘Components of Net Cost Not Part of the Budgetary Outlays

Increase/(Decrease) in Assets:

Accounts Receivable, Net : SLs Ss

(ncrease\/Decrease in Liabilities:

Accounts Payable - 0.112) GO112)

Federal Employee [and Veteran] Benefits Payatie = (56569) 66,569)

Other Liabilities: (5,700) (13,863) (19,563)

Financing Sources:

_Enpated Cost (566,138) - (566,138)
“Total Components 6f Net Operating Cost Not Part of the Budgetary Oulavs $571,838) $5426) SF (667.264)
Components of the Budget Outlays That Are Not Part of Net Operating Cost

Financing Sources:

Transfers Out (In) Without R: rsements (2,393) a (2393)
Total of the Bi That Are Not Patt of Net Operating Cost $ (2393) _$ OPE 3 (2,393)
Total Nett fed Total 3 4341619 79S 13302498
Budgetary Agency Outlays, Net (SBR 4210)

Budgetary Agency Outlays, Net $13,302,498

49


NOTE 9. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT FORWARD,
OCTOBER 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for recoveries
of prior year paid and unpaid obligations and other changes such as canceled authority.

The Adjustments to Unobligated Balance Brought Forward, October 1, as of September 30, 2022,
and 2021, consisted of the following:

Unobligated Balance Brought Forward From Prior Year, October 1 $ 1,789,200 $ 1,787,915
Recoveries of Prior Year Obligations 252,931 376,768
Other Changes in Unobligated Balances (447,388) (315,013)
Unobligated Balance From Prior Year Budget Authority, Net (Diseretionary

and Mandatory) $1,594,743 $1,849,670

NOTE 10. APPORTIONMENT CATEGORIES OF NEW OBLIGATIONS AND UPWARD
ADJUSTMENTS

New obligations and upward adjustments incurred and reported in the Statement of Budgetary
Resources in 2022 and 2021 consisted of the following:

2022 2021

Direct Obligations, Category A $13,400,934 $ 13,287,863
Total New Obligations and Upward Adjustments $13,400,934 $13,287,863

Category A apportionments distribute budgetary resources by fiscal quarters.
NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2022, budgetary resources obligated for undelivered orders were as follows:

Federal Non-Federal Total
Unpaid Undelivered Orders $ 514,596 $ 1,380,052 $ 1,894,648
Total Undelivered Orders $ 514,596 $1,380,052 $1,894,648

As of September 30, 2021, budgetary resources obligated for undelivered orders were as follows:

Federal Non-Federal Total
Unpaid Undelivered Orders $ 481,450 $1,459,504 $1,940,954
Total Undelivered Orders $ 481,450 $1,459,504 $1,940,954

NOTE 12. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET
OF THE U.S. GOVERNMENT

The President's Budget that will include fiscal year 2022 actual budgetary execution information has
not yet been published. The President’s Budget is scheduled for publication in February 2023 and
can be found at the OMB Web site: hitp./Avww.whitehouse.gov/omb/. The 2023 Budget of the United
States Government, with the “Actual” column completed for 2021, has been reconciled to the
Statement of Budgetary Resources and there were no material differences.

47


NOTE5. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2022 were as follows:

rent Total
Intragovemmental

Employer Contributions and Payroll Taxes Payable (without

reciprocals) $s 37,989 - $ 37,989

Employer Contributions and Payroll Taxes Payable 90,829 - 90,829
Total tal Other Liabilities $ 818 $ = Ss 818
Other than Intragovernmental

Accrued Funded Payroll and Leave $ 395,035 S - $ 395,035

Other Liabilities w/Related Budgetary Obligations 16 - 16
Total Other than Intragovernmental Other Liabilities Ss 395,051 EY - $ 395,051
Total Other Liabilities $ 523,869 $ - $ 869
Other liabilities account balances as of September 30, 2021 were as follows:

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without

reciprocals) $ 35,233 $ - $s 35,233,

Employer Contributions and Payroll Taxes Payable 80,982 - 80,982

Other Unfunded Employment Related Liability 1,908 - 1,908
Total Intragovernmental Other Liabilities $ 118,123 $ z $ 118,123
Other than Intragovernmental

Accrued Funded Payroll and Leave S$ 366,978 $ - $ 366,978
Total Other than Intragovernmental Other Liabilities $ 366.978 $ = $ 366,978
‘Total Other Liabilities $ 485,101 $ x $ 485,101

NOTE 6. 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.

ation TMm Lease Expiration Date
Atlanta, GA. 55 months 9/30/2023
Denver, CO 120 months 9/30/2028
Washington, DC 60 months 4/23/2023

45


Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Survey to
JaSSess
managers and
supervisor's
communication
with employees
about the
lagency’s goals
land priorities.)
Develop and {System that links |Aligned budget | Aligned budget | Aligned budget | Aligned budget }Developed an
present an resources to with agency with agency with agency with agency annual budget
annual budget] specific program goals [program goals |program goals |program goals |that was
land activities that to efficiently |toefficiently |toefficiently |toefficiently aligned with the|
performance |support laccomplish the Jaccomplish the Jaccomplish accomplish agency’s
plan that measurable mission (e.g., _|mission. mission. mission. revised
clearly programmatic | program, strategic plan.
represents loutcomes and =| human capital, [Target met
how the objectives. procurement, |Target met Target met (Align budget
organization IT (Align budget |(Align budget [with agency Target met
will infrastructure, |with agency with agency program goals |(Align the
accomplish space, and program goals |program goals |to efficiently [budget with
government- facilities). to efficiently |toefficiently accomplish lagency program|
wide accomplish accomplish mission (e.g., goals to
management Target met mission (e.g., |mission(e.g., | program, efficiently
priorities, (Align budget |program, program, human capital, Jaccomplish its
lagency-wide with agency human capital, [human capital, |procurement, | mission (e.g.,
goals, and program goals |procurement, procurement, |IT program,
lorganization- to efficiently |IT IT infrastructure, [human capital,
al goals. laccomplish infrastructure, Jinfrastructure, |space, and procurement,
mission (e.g., _|space, and space, and facilities.) IT
program, facilities.) facilities.) infrastructure,
human capital, space, and
procurement, facilities.)
IT
infrastructure,
space, and
facilities.)

19



OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
BALANCE SHEET
OF SEPTEMBER 30, 2022 AND 2021
(in Dollars)

Intragovernmental
Fund Balance with Treasury (Note 2) S$ 4.386.967__$ 4.405.334

Total Intragovernmental 4,386,967 4.405.334

Other than Intragovernmental

Accounts Receivable, Net (Note 3) 2.048 5.8
Total Other than Intragovernmental 2,048 5.18
Total Assets $ 4389.015_$ AAO AS2

Liabilities: (Note 4)
Intragovernmental

Other Liabilities (Note 5) s 128,818 $ 118,123
Other Liabilities (Without Reciprocals ) 37,989 35,233
Other Current Liabilities - Benefit Contributions Payable 90,829 82.890

Total Intragovernmental 128,818 118,123

Other than Intragovernmental

Accounts Payable 135,391 176,231
Federal Employee Benefits Payable 715,291 737,005
Other Liabilities (Note 5) 395.051 366.978
Total Other than Intragovernmental 1.245.733 1.280.214
Total Liabilities $____ 1374551 $1,398,337
Net Position:
Unexpended Appropriations - Funds from Other than Dedicated Collections S 3,708,065 $3,727,762
Cumulative Results of Operations - Funds from Other than Dedicated Collections (693.601) (715.647)
Total Net Position 3.014.464 3.012.115
“Total Liabilities and Net Position S____4389,015__ $4,410,452

The accompanying notes are an integral part of these financial statements.
35


If you have any questions regarding this report, please contact me.
Sincerely,
-_
Cpt OD

Cynthia L. Attwood
Chairman

Enclosure


U.S. OCCUPATIONAL SAFETY AND HEALTH
REVIEW COMMISSION

INDEPENDENT AUDITOR’S REPORT
AND
FINANCIAL STATEMENTS

FOR THE YEARS ENDED
SEPTEMBER 30, 2022 AND 2021

Prepared By
Brown & Company CPAs and Management Consultants, PLLC
November 10, 2022

| | BROWN & COMPANY >
CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC



Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Provide Develop, review, |New goal |New goal |New goal |New goal Training on
training for and update developed to |developedto |developedto |developedto —_ diversity,
all agency training support the support the support the support the equity,
personnel, materials to Strategic Plan Strategic Plan Strategic Plan |Strategic Plan inclusion, and
including educate staffon |for FYs 2022 — | for FYs 2022 — |for FYs 2022 — | for FYs 2022 — Jaccessibility
|ALJs and diversity, equity, 2026. 2026. 2026. 2026. was provided to
Commission |inclusion, and all staff.
members, on Jaccessibility
diversity, considerations ‘Target met
equity, both in the (Identify
inclusion, and] workplace and training
accessibility [while interacting lopportunities
consideration |with and serving for staff that
s in the ithe public. promote
workplace diversity,
and in equity,
interacting inclusion, and
with and accessibility
serving the considerations
public. in the
workplace and
in interacting,
with and
serving the
public.)

16


Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
(Conduct all | Promote an |-Expanded |-Provided -Provided live |-Provided live |-Data was
internal and Jethical culture Joutreach ethics training |virtual ethics _ | virtual training |gathered
external within the primarily to new]to agency filers. |training to to all agency throughout the
agency Review lemployees, in agency filers in |personnel and |FY from ethics
business in an {Commission —_ particular |-Developed laccordance contractors. —_ inquiries to
ethical and through political procedures to | with training identify areas in
timely leadership, appointees, (1) conduct flexibilities -Continued to |need of targeted
manner. awareness, which generated Jinternal allowed by decrease ethics
resources, and [increased discussions of J}OGE due to the |response time |training. Almost
oversight. opportunities to Jethics inquiries |coronavirus to ethics all ethics
provide ethics Jas they arise; |pandemic. inquiries by —_ inquiries were
advice. (2) promptly accomplishing |responded to
gather (1) Promptly —_| the following: [within one week
information conducted (1) promptly | from receipt.
needed from _ internal conducted
inquirer to discussions of Jinternal (Continued to
respond; and —_ ethics inquiries |discussions of }decrease
(3) timely jas they arise; _ ethics inquiries |response time to

consult OGE —_}(2) gathered las they arose; |ethics inquiries
regulations and Jinformation (2) gathered | by (1) promptly
guidance, past |needed from information _ conducting

advice, and inquirer to needed from _ internal

additional respond as soon|inquirer to discussions of

resources. jas need for respond as ethics inquires
additional soon as the las they arose;
information need for (2) gathering
arose; and (3) additional information
timely information needed from
consulted OGE Jarose; and (3) Jinquirer to
regulations and |timely respond as soon

guidance, past |consulted OGEJas the need for
advice, and regulations andJadditional
additional guidance, past Jinformation
resources. advice, and larose; and (3)
additional timely
resources. consulting OGE
regulations and
guidance, past
ladvice, and any
additional
resources as
inceded,

22


Outcome | Performance FY FY FY FY FY

Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Ensure that [Communicate |-Annual -Routine staff |-Routine staff |-Routine staff |-Staff meetings
all agency significant Federal meetings were |meetings were |meetings were |were held to
personnel are Jorganizational {Employee conducted. conducted. conducted. discuss agency
aware of the Jaccomplish- Viewpoint activities and
lagency’s ments with staff. |Survey results ]-Annual |-Annual |-Annual accomplish-
mission and were assessed, [Federal Federal Federal ments.
how they Employee Employee Employee
contribute to |-Routine Viewpoint Viewpoint | Viewpoint -The Federal
its Imeetings were }Survey results |Survey results |Survey results |Employee
laccomplish- conducted. lwere analyzed. |were analyzed. |were analyzed. | Viewpoint
ments. [Survey was

Target met Target met Target met Target met distributed to
(Communicate |(-Communicate |(-Communicate |(-Communicate [staff and results
significant significant significant significant were analyzed
organizational forganizational Jorganizational Jorganizational |to determine if
laccomplish- accomplish-  Jaccomplish- _ |accomplishmen Jadjustments
ments with staff|ments with staff{ments with ts with staff | should be made
during all- during all- staff during all- |during all- to certain
hands staff hands staff hands staff hands staff lagency
meetings and jmeetingsand |meetingsand meetings and _ |activities.

during during during, during
supervisory/ supervisory/ supervisory/ supervisory/ |Target met
lemployee employee lemployee employee \(-Communicate
meetings. meetings. meetings. meetings. significant
organizational
|-Use results of |-Use results of |-Use results of |-Use results of Jaccomplish-
the annual the annual the annual ithe annual ments with staff|
Federal Federal Federal Federal during all-
Employee Employee Employee Employee hands staff
Viewpoint Viewpoint Viewpoint ‘Viewpoint meetings and
Survey to Survey to Survey to Survey to during
assess assess assess assess supervisory/
employees’ managers and |managers and |managers and jemployee

knowledge of |supervisor’s supervisor’s supervisor’s meetings.
how their work |communication |communication }communication
relates tothe [with employees | with employees | with employees |-Use results of
lagency’s goals about the about the about the the annual

land priorities.) Jagency’s goals Jagency’s goals Jagency’s goals |Federal

land priorities.) Jand priorities.) Jand priorities.) [Employee
Viewpoint

18


BROWN & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC

INDEPENDENT AUDITOR’S REPORT

U.S. Occupational Safety and Health Review Commission
Washington, D.C.

In our audits of the fiscal years 2022 and 2021 financial statement of the U.S. Occupational Safety and
Health Review Commission (OSHRC), we found

e¢ OSHRC’s financial statements as of and for the fiscal years ended September 30, 2022, and
2021, are presented fairly, inall material respects, in accordance with United States of America
(U.S.) generally accepted accounting principles;

© no material weaknesses in internal control over financial reporting based on the limited
procedures we performed; and

© no reportable noncompliance with provisions of applicable laws, regulations, contracts, and
grant agreements for fiscal year 2022.

The following sections discuss in more detail (1) our report on the financial statements, which includes
required supplementary information (RSI)5 and other information included with the financial
statements®; (2) our report on internal control over financial reporting; (3) our report on compliance with
laws, regulations, contracts, and grant agreements.

Report on the Financial Statements
Opinion

In accordance with the provisions of the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No.
107-289), we have audited OSHRC’s financial statements. OSHRC’s financial statements comprise the
balance sheets as of September 30, 2022, and 2021; the related statements of net cost, changes in net
position, and budgetary resources for the fiscal years then ended; and therelatednotes to the financial
statements. In our opinion, OSHRC’s financial statements present fairly, in all material respects,
OSHRC’s financial position as of September 30, 2022, and 2021, and its net costs of operations,
changes in net position, and budgetary resources for the fiscal years then ended in accordance with
U.S. generally accepted accounting principles.

Basis for Opinion

We conducted our audits in accordance with U.S. generally accepted government auditing standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit

5 The RSI consists of Management's Discussion and Analysis and the Statement of Budgetary Resources, which are
included with the financial statements.
6 Other information consists of information included with the financial statements, other than the RSI, Financial
section, and the auditor’s report.

30

6401 GOLDEN TRIANGLE DRIVE, SUITE 310 * GREENBELT, MD 20770
PHONE: (240) 770-4900 * FAX: (301) 773-2090 * mail@ brownco-cpas.com * www.brownco-cpas.com


Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Broaden the |-Participation in |Alert service | Alert service on]Continued to [Continued to Social media
lagency’s professional was the agency’s —_futilize and land monitor the Joutlets (e.g.,
outreach conferences and |implemented | website was monitor the alert service on Jalert service on
activities to |meetings and on the agency’s Jutilized and alert service on |the agency’s the agency’s
the regulated |strategic website to monitored for the agency’s | website to website) were
community. Jengagement with Jengage the purposes of website to lengage with the Jused to engage
ithe regulated public. lengaging the engage the public. the public.
community. public. public.
|-Expand Target met [Target met Target met Target met Target met
electronic (-Increase (-Increase (-Increase \(-Increase \(-Increased
notification participation in |participation in |participation in |participation in | participation in
services jat least two fat least two fat least two jat least two fat least one
information for activities or activities or activities or activity or
internal and meetings that meetings that |meetings that |meetings that [meeting that
lexternal users. |promote promote promote promote promotes
strategic strategic strategic strategic strategic
lengagement to Jengagement to Jengagement to Jengagement to Jengagement to
disseminate disseminate disseminate disseminate disseminate
information information information information information
including ‘including including including including
trends and trends and trends and trends and trends and
services (e.g., }services(e.g., |services(e.g., |services(e.g., |services (e.g.,
LEP) provided |LEP) provided |LEP) provided |LEP) provided JLEP) provided
by the agency. |by the agency. |by the agency. |by the agency. |by the agency.
-Use of alert |-Monitor the |-Monitorthe |-Monitor the |Research
service to use of alert luse of alert use of alert additional
lengage the service used to |service used to |service used to [social media
public.) lengage the lengage the lengage the outlets to notify
public.) public.) public.) land engage
with internal
land external
users.)

13



Outcome Performance FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Goals Measures Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
greater than greater than 25% of all cases.)
40% of all 33% ofall cases.)
cases.) cases.) _
Ensure that | Percentage of New goal New goal New goal New goal The share of
no more Commission developed to | developedto | developedto | developed to Commission
than 20 review-level support the support the support the support the review-level
percent of cases that are Strategic Plan | Strategic Plan | Strategic Plan | Strategic Plan | cases over two
Commission | older than two for FYs 2022 | for FYs 2022 | forFYs 2022 | for FYs 2022 — | years in age
review-level | years and — 2026. — 2026. — 2026. 2026. was 19% of all
cases are percentage of cases.
older than cases older than
two years three years. Target met
and ensure (Reduce the
that no cases percent of
are older Review-level
than three cases over two
years from years in age as
direction for follows: No
review. greater than
20% of all
cases.)
Number of
Commission

Review-level
cases
exceeding
three years
was zero.)

Target met
(Reduce the
number of
Commission
review-level
cases
exceeding
three years to
zero.)

Note: These goals were established in our Strategic Plan (fiscal years 2022 — 2026) to measure case
production and efficiency each fiscal year. At the Commission review-level, 12 cases were resolved, and
all four performance goals were met. In addition, 100% of the Commission review-level’s priority cases
were resolved within 6 months. These accomplishments were achieved even though the Review
Commission operated without a full complement of Commissioners in FY 2022.



The FY 2022 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 5, 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, in accordance with the Cybersecurity and Infrastructure Security Agency (CISA)
at the U.S. Department of Homeland Security’s (DHS) Binding Operational Directive 18-01, “Enhance
Email and Web Security,” has activated all components defined to ensure the integrity and confidentially
of internet-delivered data, minimize spam, and better protect users who might otherwise fall victim to a
phishing email that appears to come from a government-owned system. All Review Commission systems
use the HyperText Transfer Protocol (HTTP) Strict Transport Security, a web policy mechanism that helps
protect our cloud services authentication against unauthorized connections. Additionally, the Review
Commission has complied and implemented necessary changes in accordance with Binding Operational
Directives such as the Vulnerability Remediation Requirements for Internet-Accessible Systems.

The Review Commission continues to test its virus detection program along with automatic updates and
scanning using a myriad of tools including third party scanning through a Managed Trusted Internet
Protocol Service utilizing our internet service provider’s Intrusion Prevention Security Service and
continuous diagnostics and monitoring. The Review Commission also provides a second level of virus and
malware protection at the server and workstation level, which has significantly reduced the number of spam
and other unwanted email messages. Additional controls in place to protect data from accidental or
malicious alteration or destruction include the DHS’s Trusted Internet Connection, Einstein3a accelerated
(U.S. Computer Emergency Readiness Team Program or U.S.-CERT) and annual security refresher training
for federal employees and contractors. 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 CISA, OSHRC utilizes its deployed firewall and Intrusion
Detection System to provide network perimeter security. Formal procedures for reviewing logs are in place
and the information technology staff identifies incidents when a security violation occurs.

Along with the Review Commission’s efforts to enhance its information security program, the agency has
directed considerable resources to protecting personally identifiable information (PII). The agency recently
revised its Privacy Act regulations and in FY 2022, updated its Privacy Act Directive. Also, during the
fiscal year, the Senior Agency Official for Privacy (SAOP) and the privacy officer have either confirmed
the accuracy of, or updated, the notices (SORNs) for eight of the agency’s system of records and published
anew SORN for the agency’s reasonable accommodation records. Also, privacy impact assessments (PIAs)
are regularly updated for each of the four components of the Review Commission’s information system—
three of the PIAs were revised in FY 2022. To provide as much transparency as possible, SORNs, PIAs,
and Privacy Act regulations are posted on the agency’s privacy web page: https://www.oshre.gov/privacy/.
This page also includes procedures for making Privacy Act requests and provides a dedicated email
address—created in FY 2022—1o allow the public to communicate with the agency on any privacy-related
matters. The agency also regularly reviews its website and, where appropriate, adds or revises Privacy Act
Statements to inform the public of any potential collections of PII.

As required by its Privacy Act Directive, the Commission provides general Privacy Act training to its
employees and contractors and provides additional role-based training to its privacy personnel, including
its Privacy Act system managers. In addition, as required by the directive, the SAOP annually reviews the
agency’s collection and use of social security numbers (SSNs) and maintains an inventory of systems that

28


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 FY 2014 through FY 2021 audits. The terms “unqualified”
and “unmodified” refer to clean opinions.

Since 2002, the Review Commission has contracted with the Administrative Resources Center (ARC),
Bureau of the Fiscal Service (BFS), for accounting services. The ARC prepared the Review Commission’s
FY 2022 financial statements, which include comparative data for FY 2021. 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 2022 totaled $4,389,015 as of September 30, 2022. This represents a decrease of
$21,437. The Fund Balance with Treasury of $4,386,987 represents OSHRC’s largest asset as of September
30, 2022. It decreased 0.42 percent from FY 2021 and represents 99.95 percent of the agency’s total assets
for FY 2022. General Property, Plant, and Equipment were fully depreciated as of September 30, 2022.

OSHRC’s liabilities in FY 2022 totaled $1,374,551 as of September 30, 2022. This is a decrease of $23,786.
The accounts payable balance as of September 30, 2022, was $135,391, a decrease of $40,840. Unfunded
annual leave totaled $698,282 and is approximately 51 percent of total agency liabilities.

Net Position is the difference between total assets and total liabilities. The total net position for FY 2022
increased by $2,349 from FY 2021.

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 programs, Administrative Law Judge, Commission, and Executive Director. The Total net cost
of operations in 2022 was $13,769,838, a decrease of $202,317 from the FY 2021 net cost of operations of
$13,972,155.

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 $2,349 in 2022 from 2021, a change of
approximately.08 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 FY 2022, OSHRC had total budgetary resources
of $15,216,985, which is $139,922 more than in FY 2021.

25


Challenges, Opportunities, and Forward-Looking Information

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 Part programs in reducing the number of hearings needed; and (4)
the number, location, length, and complexity of hearings held. Looking forward, the Review Commission
is committed to working within such constraints to improve its service to the public although these factors
are largely outside the Review Commission’s control.

The Review-level consists of three members appointed by the President with the advice and consent of the
Senate. The 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 in which 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 5 years the Commission has operated with fewer than three
Commissioners over 30 percent of the time. The Commission operated with only two Commissioners in
FY 2022.

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 a
projected 31,400 inspections in FY 2022. The number of OSHA inspections and their 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, consuming 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 relatively complex cases, and
Simplified Proceedings, for relatively simple cases.

Under Commission Rule 120, 29 Code of Federal Regulations (CFR) § 2200.120, and when the parties
consent, the Chief Judge may assign a Settlement Judge to a pending proceeding to aid the parties in
disposing of the case. When the aggregate amount of the penalty sought by the Secretary of Labor is
$205,000 or greater, the Mandatory Settlement Part 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).

The Simplified Proceedings process includes cases in which the total proposed penalty is not more than
$20,000, or up to $30,000 when found eligible by the Chief ALJ. The 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 are 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, is 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.


U.S. Occupational Safety and Health Review Commission
Fiscal Year (FY) 2022 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). The
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 Occupational Safety and Health Act, and employees and/or their representatives. The Review
Commission was created by Congress as an agency completely independent of OSHA and 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 the Review Commission’s Rules of Procedure provide two levels of adjudication when an
employer timely contests an OSHA citation. The first level affords 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 three-member Commission exercises their discretion to direct the case for review. The second level
involves the Commission’s review of an ALJ decision. The Commission’s three members, appointed by
the President and subject to Senate confirmation, serve six-year terms. The principal (National) office of
the Review Commission is located in Washington, DC. There are also regional offices in Atlanta and
Denver, where additional Review Commission ALJs and staff are assigned. Both before its ALJs and the
Commission members, the agency seeks to provide fair, impartial, and timely adjudication of cases
concerning employee safety and health.

Vision Statement

The Review Commission strives to be:

1. An adjudicative body that is—and is recognized for being—objective, fair, prompt,
professional, and respected.

2. An agency that creates a body of law through its decisions that defines and clarifies the rights
and responsibilities of employers and employees under the Act.

3. A model federal agency with highly effective processes, a highly motivated, qualified, and
diverse workforce, and modern information management, communications, and administrative
systems.

4. An agency that values teamwork, develops its employees, and strives to improve its
performance, service, and value to the American people.


Outcome | Performance FY FY FY FY FY

Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Ensure that {Monitor monthly |New goal |New goal |New goal |New goal -Enhancements
the agency’s |maintenance developed to |developedto |developedto |developedto [were made to
electronic activities support the support the support the support the the agency’s
filing (e- performed by Strategic Plan Strategic Plan Strategic Plan |Strategic Plan |e-filing system.
filing) system application host. |for FYs 2022 — |for FYs 2022 — |for FYs 2022 — |for FYs 2022 —
provides 2026. 2026. 2026. 2026. Informal
equitable training on the
laccess to all e-filing system
jusers. was provided to

intemal users.

Target met
\(-Make needed
enhancements
to the e-filing
system based
lon feedback
received from
lusers.

|-Provide annual
training for
internal users.)

Recruit, -Recruit, -Job postings |-Agency -Agency |-Agency |-The agency’s
invest in, and |develop, and were developed |directives directives directives performance
value all retain a highly to attract pertaining to |pertainingto |pertainingto {management
lemployees —_| motivated, qualified and = | workplace workplace workplace systems were
through talented, and diverse flexibilities flexibilities flexibilities evaluated to
professional |diverse candidates. were updated. jwere updated. |were updated. fensure
development, | workforce to alignment with
workplace [accomplish the |-Agency |-Reviewed -Devoted -Devoted the revised
flexibilities, Jagency’s directives performance {budgetary budgetary strategic plan.
fair mission. pertaining to |management resources to resources to
treatment, workplace directives and training. training. |-Budgetary
and -Identify areas in |flexibilities established new resources were
recognition. [which the were reviewed. critical element |-Reviewed |-Reviewed devoted to
agency can for supervisors. |performance |performance _femployee
enhance -Devoted Imanagement + |management  |training and
diversity and budgetary directives. directives, development.
talent through resources to
annual analysis training. |-The agency’s
lof the MD-715> telework and
guidance. Target met iTarget met Target met Target met hours of work
(-Attract (-Ensure that (-Ensure that |(-Ensure that | directives were
qualified and the agency’s the agency’s the agency’s reviewed and
diverse performance }performance |performance _|updated to
candidates, Imanagement management |management |jenhance
including system(s) are |system(s) are system(s) are }workplace
veterans and _aligned with its Jaligned with its Jaligned with its | flexibilities.
persons with _| goals and goals and goals and

3 Equal Employment Opportunity (EEO) Management Directive 715 — Reporting Requirement for Federal Agencies
14


Outcome Performance FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Goals Measures Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
the average Target met Target met Target met Target met Target met
age of all (Assess (Develop new | (Implement (Evaluate (Full
pending whether new | case new case implement- implement-
Commission case management | management | ation of case ation of case
review-level management | practices.) practices.) management management
cases. practices practices.) practices.)
should be
developed
and
implement-
ed.)
Reduce the | Average age of | Averageage | Averageage | Averageage | Average age of | New goal
average age | all pending of all of all of all all Review- developed to
of all Review-level Review-level | Review-level | Review-level | level cases support the
pending cases. cases reduced | cases reduced | cases reduced | reducedto15 | Strategic Plan
Review- to 24 months. | to 26 months. | to 14 months. | months. for FYs 2022
level cases through 2026.
to 20 Target met | Target not Target met | Target met
months from (Average age | met (Average age | (Average age
direction for of all (Average age | of all of all Review-
review. Review-level | of all Review-level | level cases
cases reduced | Review-level | cases reduced | reduced to 20
to 26 cases reduced | to 22 months.)
months.) to 24 months.)
months.)
Ensure that | Average age of | New goal New goal New goal New goal The average
the average | all pending developed to | developed to | developedto | developed to age of all
age of all Commission support the support the support the support the Commission
Commission | review-level Strategic Plan | Strategic Plan | Strategic Plan | Strategic Plan | review-level
review-level | cases. for F¥s 2022 | for FYs 2022 | for FYs 2022 | forFYs 2022 | cases reduced
cases is no through 2026. | through 2026. | through 2026. | through 2026. | to 12 months.
greater than
18 months Target met
from (Average age
direction for of all pending
review. Commission
review-level
cases reduced
to 22 months.)
Reduce the | Percent Share of Share of Share of Share of New goal
number of reduction in the | Review-level | Review-level | Review-level | Review-level | developed to
Review- number of cases over cases over cases over cases over two | support the
level cases Review-level two yearsin | two yearsin | twoyearsin | yearsin age Strategic Plan
over two cases overtwo | age was 51% | age was 53% | age was 25% | was 19% ofall | for FYs 2022
years in age. | years in age. of all cases. of all cases, of all cases. cases. through 2026.
Target not Target not Target met Target met
met met (Reduce the (Reduce the
(Reduce the (Reduce the share of share of
share of share of Review-level | Review-level
Review-level | Review-level | cases over cases over two
cases over cases over two yearsin | years in age as
two yearsin | twoyearsin | age as follows: No
age as age as follows: No greater than
follows: No follows: No greater than 20% of all

4



Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Improve ‘Streamline Monitored the }-Enhanced the |-Updated |-Reduced the |New goal
technology joperations and =| Agency’s Office 365 existing server |number of developed to
infrastructure Jinfrastructure to |technology licensing infrastructure. |physical support the
through eliminate infrastructure to|model. servers and Strategic Plan
efficiencies duplication; determine if |-Began moving Joperating for FYs 2022 -
land minimize Inew or Upgraded the server systems |systemsin use |2026.
investments servers, storage, [additional remote access to the cloud and|by agency
((e.g., training, ]and application resources were application expanding personnel.
lequipment, | sprawl. necessary. (Citrix existing data
land services) environment). circuits to |-Explored and
to support the [Maintain \Target met accommodate implemented
effective use |standardized \(-Reduce -Upgraded the Jincreased Imeasures to
of broadband, [platforms physical servers |speed of the bandwidth expand
cyber including through agency’s Wide Jusage. bandwidth for
security, and {hardware and virtualization. |Area Network the agency.
energy software. circuits, Target met
efficiency. |-Reduce the \(-Reduce Target met
Improve Inumber of -Introduced physical servers}(-Reduce
Inetwork/ operating Adobe Acrobat |through physical
communications |systems in use. {Pro 2017. virtualization. |servers through
to ensure virtualization.
lcustomerscan |-Evaluate and |Target met -Reduce the
laccess necessary Jaddress \(-Reduce number of |-Reduce the
information lenhancements {physical servers] operating number of
without delay. |to oure-filing through systems in use. Joperating
system. virtualization. systems in use.
-Increase
-Increase |-Reduce the bandwidth for |-Increase
bandwidth for [number of migration to | bandwidth for
migration to operating cloud migration to
cloud initiatives} systems in use. Jefficiencies.) |cloud
(i.e., electronic efficiencies.)
mail services to |-Increase
the cloud and =| bandwidth for
lexpand cloud | migration to
storage space.) cloud
efficiencies.)

20


U.S. Occupational Safety and Health Review Commission

OSHRC

Performance and Accountability Report

FY 2022

pe 4



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 Other
than Intragovernmental. Intragovernmental liabilities represent funds owed to another government
agency. Liabilities other than intragovernmental represent funds owed to any entity or person that is
not a federal agency, including private sector firms and federal employees. Each of these categories
may include liabilities that are covered by budgetary resources and liabilities not covered by
budgetary resources.

Liabilities covered by budgetary resources are liabilities funded by a current appropriation or other
funding source. These consist of 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 eared 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. Nonvested
leave is expensed when used. Any liability for sick leave that is accrued but not taken by a Civil
Service Retirement System (CSRS)-covered employee is transferred to the Office of Personnel
Management (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 employee.

4l


from high-volume cases in favor of high-impact strategic cases. The increase in case complexity is a
challenge for the Review Commission because processing such cases requires the ALJs 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 the performance goals and results for the ALJ function for fiscal years 2018
through 2022.

Outcome | Performance} FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Goals Measures Actual Actual Actual Actual Actual

(Target) (Target) (Target) (Target) (Target)
Develop and |Whethernew {Less than 75% |95% of all 98% of cases |98% of cases |98% of cases

implement case |case of all pleadings received in our | received in our |received in our
management |management [pleadings received in our|e-file system as|e-file system as] e-file system
practices that |practices have received in our|electronic a result of a result of as a result of
will minimize been developed | electronic filing system scheduling scheduling scheduling
the average age Jand filing system were initiated orders orders orders
ofall pending implemented. |were initiated |electronically. |directing e- directing e- directing e-
ALJ-level electronically. filing and the |filing and the | filing and the
cases, implementation] implement- implement-
of mandatory ation of ation of
e-filing in June | mandatory mandatory
2019. e-filing in June |e-filing in June
2019. 2019.
Target not Target not Target not Target not Target not
met met met met met
(75% of all |(100% of all |(100% ofall |(100% ofall |(100% ofall
pleadings pleadings pleadings pleadings pleadings
received in our| received in our| received in our | received in our | received in our
electronic electronic electronic electronic electronic

filing system filing system |filing system filing system _|filing system
would have |wouldhave | would have would have would have
been initiated |been initiated |been initiated |been initiated [been initiated
electronically.)|electronically.)| electronically.) | electronically.) |electronically.)

Ensure thata _|-Percent of 97% 96% 97% 94% |New targets
significant simplified cases|Target met |Targetmet |Target met Target not developed to
proportion of | disposed of met support the
both complex |within one year |(Dispose of |(Dispose of | (Dispose of Strategic Plan
and non- at ALJ level. |95% of 95% of 95% of (Dispose of for FYs 2022 —
complex cases simplified simplified simplified 95% of 2026.
at the ALJ level |-Percent of cases within |cases within |cases within simplified
are resolved conventional —_j one year.) ‘one year.) one year.) cases within
within one year |cases disposed ‘one year.)
to 20 months of within 17
from months. 95% 95% 96% 93%
docketing.! Target met |Target met |Target met Target met

-Percent of (Dispose of |(Dispose of |(Dispose of —_| (Dispose of

settlement part |90% of 90% of 90% of 90% of

cases disposed |conventional |conventional |conventional |conventional
of within19 —|cases within |cases within | cases within 17 |cases within 17
months, 17 months.) [17 months.) _[months.) months.)

1Except for mandatory settlement cases, which are assigned by the Chief Judge upon receipt from the Office
of the Executive Secretary, judges are not assigned cases until initial pleadings have been filed. This
assignment generally occurs approximately 60 days after the case has been docketed due to the parties’
frequent requests for extensions of time for filing initial pleadings.

7


Commission Review-Level Case Activity

The following table summarizes actual Review-level case activity for fiscal years 2018 through 2022.

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Actual Actual Actual Actual Actual
INew Cases:
Cases Directed for
Review: 14 8 22 8 14
}Other New Cases:
Interlocutory
Appeals 0 0 2 0 0
Remands 2 2 5 0 1
Other 0 0 0 0 0
Total Other New
Cases: 2 2 7 0 1
[Total New Cases: 16 10 29 8 15
Case Inventory from
Prior Year: 29 22 19 23 16
[Total Caseload: 45 32 48 31 31
Dispositions: 23 13 25 15 12
iCase Inventory,
End of Year: 22 19 23 16 19

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 2022 with 1,201 cases in its inventory and 1,510 new
cases were received during the year, for a total of 2,711 cases. A total of 1,546 cases were disposed of,
leaving 1,165 cases in the inventory at the end of the fiscal year. While there was a decrease in the number
of docketed cases for fiscal year 2021 due to disruptions from the COVID-19 pandemic and OSHA’s
response to the pandemic, as more workers return to worksites, in-person inspections have increased in
2022. This will affect the Review Commission’s workload over the next few years. On June 21, 2021,
OSHA issued an emergency temporary standard (ETS) to address healthcare workers’ exposure to COVID-
19. The healthcare ETS has expired, and OSHA is continuing to work on promulgating a permanent
standard and additional enforcement activity is likely. This, in turn, will likely lead to more contested cases
docketed with the Review Commission. Furthermore, because of the disruption caused by the pandemic,
docketed cases have remained active for a longer period of time.

The number of OSHA inspections and their focus also affects the Review Commission’s caseload. In
particular, high-hazard workplace inspections — especially those with high injury and illness rates, fatalities,
repeat offenders, and egregious violations — tend to result in more complex and contentious cases,
consuming extensive time. 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. Additionally, these cases tend to result in larger contestable proposed penalties,
presumably leading to more cases being contested. Moreover, as mentioned earlier, OSHA’s emphasis on
COVID-19 related inspections will likely lead to additional cases raising complex and novel issues.

Case complexity increases the time required to resolve cases at the ALJ level. Factors leading to increased
case complexity include OSHA’s focus on encouraging more resource and time-intensive high-impact
inspections, as well as the Office of the Solicitor’s decision to leverage litigation resources and focus away

6


OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
STATEMENT OF CHANGES IN NET POSITION
FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

Unexpended Appropriations:

Beginning Balance $ 3.727.762 $ 4,177,533
Appropriations Received 13,622,000 13,225,000
Other Adjustments (447,388) 315.013)
Appropriations Used (13.194.309) (13,359,758)

Net Change in Unexpended Appropriations (19.697) (449.71)

‘Total Unexpended Appropriations S$ 3708.065_ $3,727,762

Cumulative Results of Operations:

Beginning Balance s (715.647)_$ (671,781)
Appropriations Used 13.194.309 13,359,758
Transfers In/Out Without Reimbursement 242 2,393
Imputed Financing (Note 8) 597,583 566,138
Other (250) -

Net Cost of Operations (13,769,838) (13,972,135)

Net Change in Cumulative Results of Operations 22.046 (43.866)

Total Cumulative Results of Operations $ (693.601) S 715.64

The accompanying notes are an integral part of these financial statements.
37


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 did not make any improper payments in FY 2022. The agency continued the
practice of reviewing the General Services Administration 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 2022 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 continued to implement its prevention and detection process in FY 2022.

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 a 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 continues to evaluate 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
2022. The results of the evaluation and the audits will be used to improve fraud prevention within the
agency.

Computer and Information Security Program

Since FY 2003, the Review Commission has and continues to conduct annual independent evaluations with
the assistance of private contractors. The Review Commission contracts for annual independent evaluations
of its computer and information security programs consistent with the Federal Information Security
Management Act (FISMA) of 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 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.

27


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’s 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 the unreimbursed cost paid by DOL for compensation to recipients under the FECA.

K. Retirement Plans

The Review Commission’s employees participate in either the CSRS or the FERS. The employees
who participate in CSRS are beneficiaries of the Review Commission’s 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.

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’s 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.

42


Coronavirus (COVID-19) Pandemic

The Review Commission did not receive any additional budgetary resources in FY 2022 to respond to the
COVID-19 pandemic. The amount of FY 2022 budget resources used to prepare and respond to COVID-
19 were not significant and did not have a material impact on the Review Commission’s assets, liabilities,
net position, or other results.

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, independent Federal 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.
For FY 2022, two program reviews took place. These include an audit of the FY 2022 financial statements
and an audit of the agency’s 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 2022.

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 2022 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.

26


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 has set measurable, outcome-oriented objectives
that advance the agency’s ability to meet its strategic goals. The agency has included its strategic goals and
objectives and their associated measures in its Strategic Plan (fiscal years 2022 through 2026). OSHRC has
four overarching strategic goals:

1. Promptly and fairly resolving the cases before it, including reducing the average age of all pending
cases;

2. To the extent consistent with the agency’s statutory authority and responsibilities, and consistent
with due process requirements, seeking to enhance the transparency of its operations;

3. Promoting diversity, equity, inclusion, accessibility, and organizational excellence, including a
culture of professionalism, mutual respect, and organizational pride, and ensuring that staff
members are adequately trained and developed; and

4. Managing agency resources in a manner that instills public trust, including using information and
technology to monitor, evaluate, and improve programs and processes in order to better accomplish
the agency’s mission.

Commission Review Level 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 2022 the Commission had 16 cases pending on its docket at the beginning of the year. It received 15
new cases and resolved 12 cases by year-end.

The following table provides the performance goals and results for this function for fiscal years 2018
through 2022.

Outcome Performance FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Goals Measures Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Resolve all | Percent of 100% 100% 100% 100% 100%
priority priority cases
cases atthe | disposed of Target met Target met Target met Target met Target met
agency ina | within 6 (100%) (100%) (100%) (100%) (Dispose of
timely months. 100 percent of
manner. all priority
cases within 6
months of
designation.)
Develop and | Whether case | Case Case New case Implement- | Case
implement management management | management | management | ation of case management
case practices have practices practices practices management practices were
management | been developed | were were were practices were | fully
practices and developed developed implemented. | evaluated. implemented.
that will implemented. and assessed. | and assessed.
minimize



Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Integrate -Conduct [New goal |New goal [New goal [New goal |A knowledge
knowledge | periodic developed to |developedto |developedto |developedto |management
management |knowledge support the support the support the support the subject matter
processes into]management Strategic Plan |Strategic Plan |Strategic Plan Strategic Plan index list was
ja plan to audits to identify |for FYs 2022 — | for FYs 2022 — | for FYs 2022 — |for FYs 2022 — }developed and
capture, sources of 12026. 2026. 12026. 12026. disseminated to
share, and knowledge and staff to identify
generate “at risk” gaps in
knowledge knowledge essential
that gaps.4 agency
establishes a programs.
unified -Tailor IT
Inetwork of —_Jinfrastructure to Target met
personnel, support the (-Identify gaps
processes, effortless sharing in essential
and land transfer of agency
technology to |knowledge. programs.
enhance all
aspects of |-Degree to which -Develop a
essential best practices knowledge
agency land lessons management
loperations. learned are subject matter
integrated into index list to
the performance serve as a
management resource to
system. staff.
-Use the
performance
planning
process to
reflect the value
lof rewarding
lemployees for
creating, using,
land sharing
knowledge.)

4Areas 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.

17


reporting that we consider to be material weaknesses. However, material weaknesses or significant
deficiencies may exist that have not been identified.

Basis for Results of Our Consideration of Internal Control over Financial Reporting

We performed our procedures related to OSHRC’s internal control over financial reporting in accordance
with U.S. generally accepted government auditing standards.

Responsibilities of Management for Internal Control over Financial Reporting

OSHRC management is responsible for designing, implementing, and maintaining effective internal control
over financial reporting relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for Internal Control over Financial Reporting

In planning and performing our audit of OSHRC’s financial statements as of and for the fiscal year ended
September 30, 2022, in accordance with U.S. generally accepted government auditing standards, we
considered OSHRC’s internal control relevant to the financial statement audit 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 OSHRC’s internal control over financial reporting. Accordingly, we do not express an
opinion on OSHRC’s internal control over financial reporting. We are required to report all deficiencies
that are considered to be significant deficiencies or material weaknesses. We did not consider all internal
controls relevant to operating objectives, such as those controls relevant to preparing performance
information and ensuring efficient operations.

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with governance,
management, and other personnel, the objectives of which are to provide reasonable assurance that (1)
transactions are properly recorded, processed, and summarized to permit the preparation of financial
statements in accordance with U.S. generally accepted accounting principles, and assets are safeguarded
against loss from unauthorized acquisition, use, or disposition, and (2) transactions are executed in
accordance with provisions of applicable laws, including those governing the use of budget authority,
regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the
financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and
correct, misstatements due to fraud or error.

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report is solely to describe the scope of our consideration of OSHRC’s intemal control
over financial reporting and the results of our procedures, and not to provide an opinion on the effectiveness
of OSHRC’s internal control over financial reporting. This report is an integral part of an audit performed
in accordance with U.S. generally accepted government auditing standards in considering internal control
over financial reporting. Accordingly, this report on internal control over financial reporting is not suitable
for any other purpose.

33

BROWN & COMPANY >
‘CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC


Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

In connection with our audits of OSHRC’s financial statements, we tested compliance with selected
provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s
responsibilities discussed below.

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant
agreements disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under
U.S. generally accepted government auditing standards. However, the objective of our tests was not to
provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to
OSHRC. Accordingly, we do not express such an opinion.

Basis for Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

We performed our tests of compliance in accordance with U.S. generally accepted government auditing
standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for Tests of Compliance section below.

Responsibilities of Management for Compliance with Laws, Regulations, Contracts, and Grant Agreements

OSHRC management is responsible for complying with laws, regulations, contracts, and grant agreements
applicable to OSHRC.

Auditor’s Responsibilities for Tests_of Compliance with Laws, Regulations, Contracts, and Grant
Agreements

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts,
and grant agreements applicable to OSHRC that have a direct effect on the determination of material
amounts and disclosures in OSHRC’s financial statements, and to perform certain other limited procedures.
Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements
applicable to OSHRC. We caution that noncompliance may occur and not be detected by these tests.

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant A; ents

The purpose of this report is solely to describe the scope of our testing of compliance with selected
provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing,
and not to provide an opinion on compliance. This report is an integral part of an audit performed in
accordance with U.S. generally accepted government auditing standards in considering compliance.
Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not
suitable for any other purpose.

Greenbelt, Mavis

November 10, 2022

34

i BROWN & COMPANY >
‘CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC.



In Millions

New Obligations

Budgetary & Upward

Resources Adjustments (Total)
Combined Statement of Budgetary Resources $ 15 $ 3 $ 13
Unoblizated Balance Not Available Q) =: *
Budget of the U.S. Govemment $ 13°$ BS 13

NOTE 13. CUSTODIAL ACTIVITY

The Review Commission’s custodial collection primarily consists of Freedom of Information Act
requests. 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 $250 and $0 for the years ended September 30, 2022,
and 2021, respectively.

NOTE 14. RECONCILIATION OF NET COST TO NET OUTLAYS

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an
accrual basis, provides an explanation of the relationship between budgetary and financial accounting
information.

Reconciliation of Net Cost to Net Outlays as of September 30, 2022:

FOR THE YEARS ENDED SEPTEMBER 30, 2022
(In Dollars)

Net Operating Cost (SNC) S 4.775054 _$__ 8.994.784 __$_ 13,769,838

Components of Net Cost Not Part of the Budgetary Outlays

Increase/(Decrease) in Assets:
Accounts Receivable, Net : 3.070) (3,070)

(Increase)/Decrease in Liabilities:

Accounts Payable : 40840 40840

Federal Employee [and Veteran] Benefits Payable : 20714 21714

Other Liabilities (10,695) 28,073) (38,768)
inancing Sources:

Imputed Cost (597.583) : (597,583)
TTotal Components of Net Operating Cost Not Part of the Budgetary Outlays, S__(608,278) 31st S1576,867)
‘Components of the Budget Outlays That Are Not Part of Net Operating Cost

Financing Sources:

‘Transfers Out (In) Without Reimbursements (242) - (242)
[Total Components of the Budget Outlays That Are Not Part of Net Operating Cost 5 (22) 5 Sony (232)
Mise Items

Distributed Offsetting Receipts (SBR 4200) : (250) (250)

Non-Entity Activit 250 - 250
Total Other Reconciling hems 5 2500S 250) :
[Total Net Outlays (Calculated Total) S166 7849025945 SF 13.192,729
Budgetary Agency Outlays, Net (SBR 4210)

‘Budgetary Agency Outlays, Net $13,192,729

48


legal writing,
ethics, and
technology
land case
management.

Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Target met Target met Target met [Target met [Target met
\(-Provide in- (-Provide in- |(-Providein- _|(-Provide \(-Gather data
person ethics person ethics |personethics Jannual and ito identify
training to all training to all [training to all [more frequent _Jareas in need of
agency filers. Jagency filers. Jagency filers. ethics training targeted ethics
to all agency training.
-Increase |-Develop a plan|-Implement a__}filers.
opportunities for]to decrease plan to |-Respond to 50
outreach to all response time decrease -Implement a __ percent of
agency to ethics response time [plan to decrease Jethics inquiries
lemployees on __ |Jinquiries.) to ethics response time to] within two
‘ethics issues.) inquiries.) ethics lweeks of
inquiries.) receipt.)
Provide Increased |New goal |New goal |New goal INew goal Training
training opportunities [developed to developed to |developedto |developedto —fopportunities
opportunities |for attendance }support the support the support the support the lwere provided
to all agency and Strategic Plan |Strategic Plan [Strategic Plan [Strategic Plan to all ALJs,
personnel, participation in |for FYs 2022 — |for FYs 2022 — |for FYs 2022 — |for FYs 2022 — Jattomeys, and
including training, 12026. 2026. 12026. 2026. support staff.
|ALJs and internal and/or
[Commission [exteral, for Target met
members. In |ALJs and all (Attendance
particular, attorneys and land
provide support staff. participation in
training to all jat least one
attorneys and training
support staff lopportunity
in order to devoted to
enhance their Imanagement of
capabilities on electronic
technical and documents
legal issues, prior to and

during hearings
(i.e., e-filing,
electronic
discovery, or
electronic
exhibits.)

23


percent of conventional cases within 17 months (at the close of the FY, the percentage of
conventional cases disposed of was 89 percent); and (3) dispose of 95 percent of settlement part
cases within 19 months (at the close of the FY, the percentage of settlement part cases disposed
of was 91 percent).

In addition to the disruptions caused by the COVID-19 pandemic, the primary factor that
adversely impacted the ALJ-level’s ability to meet a few of its goals was the increased
complexity of the cases before the ALJs. This increased complexity of cases was likely due to
OSHA's focus on encouraging more resource and time-intensive inspections, as well as the
Department of Labor, Office of the Solicitor’s decision to leverage litigation resources and shift
focus away from high-volume, 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 ALJs to invest a greater amount of time in handling the matters, and it places an
increased demand on the full-time equivalent positions assigned to handle the volume of cases.
Nevertheless, our ALJs have continued to perform outstanding work and achieved significant
progress in reducing the case inventory on hand. The primary factor that prevented the ALJ-level
from meeting the goal of having 100 percent of all pleadings received in our electronic filing
system from being electronically initiated was the inability of some individuals to file in this
manner (e.g., many pro se claimants are not capable of filing documents electronically).

Finally, the Executive Director function met its twelve targeted performance goals. A few of
these goals include (1) ensuring that the agency’s website provides equitable access to all users
and serves as a useful repository for information about the agency and its adjudicatory activities;
(2) broadening the agency’s outreach activities to the regulated community; (3) ensuring that the
agency’s electronic filing system provides equitable access to all users; (4) recruiting, investing
in, and valuing all employees through professional development, workplace flexibilities, fair
treatment, and recognition; and (5) providing training for all agency personnel, including ALJs
and Commission members, on diversity, equity, inclusion, and accessibility considerations in the
workplace and in interacting with and serving the public. The full list of targeted performance
goals for the Executive Director function is outlined in the PAR.

As Chairman, | remain committed to providing the best performance possible, consistent with
our resources, during the current fiscal year. We will continue to explore new ways to increase
our efficiency and effectiveness and to provide superior quality adjudication of safety and health
cases that come before the Review Commission.

1 am also pleased to report that the Review Commission received an unmodified opinion from an
independent audit of its financial statements. The audit report identified no material

or other significant deficiencies. In addition, the Review Commission can provide reasonable
assurance that the agency is in substantial compliance with the Federal Managers Financial
Integrity Act of 1982 and the Office of Management and Budget (OMB) Circular A-123,
Management's Responsibility for Internal Control. Further, the Review Commission is confident
that the internal controls designed to monitor financial reporting are operating effectively to
produce reliable financial reports.


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.

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 the control
and monitoring of federal funds as well as the compliance with legal requirements on the use of those
funds.

D. Fund Balance with Treasury

Fund Balance with Treasury (FBWT) is an asset of a reporting entity and a liability of the General
Fund. It is the aggregate amount of the Review Commission’s funds with Treasury in expenditure
and receipt 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. When the reporting entity seeks to use FBWT
or investments in Government securities to liquidate budgetary obligations, Treasury will finance the
disbursements in the same way it finances all other disbursements, which is to borrow from the public
if there is a budget deficit (and to use current receipts if there is a budget surplus). Funds are disbursed
for the agency on demand.

E. Accounts Receivable

Accounts receivable consists of amounts owed to the Review Commission by other federal agencies
and the general public. Amounts due from federal agencies are considered fully collectible. Accounts
receivable from the public include reimbursements from employees. An allowance for uncollectible
accounts receivable from the public is established when, based upon a review of outstanding accounts
and the failure of all collection efforts, management determines that collection is unlikely to occur
considering the debtor’s ability to pay.

F. Property, Equipment, and Software

Property, equipment and software represent furniture, fixtures, equipment, and information
technology hardware and software which are recorded at original acquisition cost and are depreciated
or amortized using the straight-line method over their estimated useful lives. Major alterations and
renovations are capitalized, while maintenance and repair costs are expensed as incurred. The Review
Commission’s capitalization threshold is $50,000 for individual purchases and $500,000 for bulk
purchases. Property, equipment, and software acquisitions that do not meet the capitalization criteria
are expensed upon receipt. Applicable standard governmental guidelines regulate the disposal and
convertibility of agency property, equipment, and software.

40


OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net (Note 9) $ 159,743 $ 1,849,670
Appropriations 13,622,000 13,225,000
Spending Authority from Offsetting Collections 242 2,393
Total Budgetary Resources $ 15216985 $15,077,063
Status of Budgetary Resources:

New Obligations and Upward Adjustments (total) (Note 10) S 13,400,934 $13,287,863
Unobligated Balance, End of Year:

Apportioned, Unexpired Accounts 465,858 172,624
Expired Unobligated Balance, End of Year 1,350,193 1,616,576
Unobligated Balance. End of Year (total) 1,816,051 1,789,200
Total Budgetary Resources $ 15,216,985 __$ 15,077.063
Outlays, Net and Disbursements, Net:

Outlays, Net (total) S$ 13,192,979 $13,302,498
Distributed Offsetting Receipts (250) -
Agency Outlays. Net $ 13,192,729 $ 13,302,498

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

38


Administrative Law Judge Case Activity

The following table provides actual ALJ workloads for fiscal years 2018 through 2022.

OSHA Inspections*:

a. Case Inventory, Start of Year

b. New Cases

c. Total Caseload

d. Disposals
(1) With Hearing
(2) Mandatory Settlement Conferences
(3) Without Hearing

e. Total Dispositions

Total Case Inventory, End of Year

FY 2018 FY 2019

Actual

32,020

1,129
2,144

3,273

38
45
2,126
2,209

1,064

Actual

33,401

1,064
2,017

3,081

35
35
1,763
1,833

1,248

21,589

1,248
1,845

3,093

28
1,762

1,834

1,259

FY 2020 FY 2021
Actual

Actual

31,013

1,259
1,365

2,624

14
59
1,350
1,423

1,201

FY 2022
Actual

31,400

1,201
1,510

2,711

24
31
1,491
1,546

1,165

*Provided by OSHA.

10



The following table provides the performance goals and results of the OEXD function for fiscal years 2018
through 2022.

Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual

(Target) (Target) (Target) (Target) (Target)

Ensure that [Timeliness of — |Internal process |Materials were |Materials were Materials were [New goal

the Review [postings to was posted tothe |postedtothe |postedtothe [developed to

Commission’ Jagency web site. Jimplemented to Jagency’s lagency’s lagency’s support the

is website is allow staff to website within |website within |website within |Strategic Plan

accessible to post materials Jone day after one day after Jone day after | for FYs 2022 —

people with directly tothe Jissuance. issuance. issuance. 2026.

disabilities lagency’s

land serves as website. All Target met Target met Target met

a useful materials were |(All material [(All material} (All material

repository for posted within [posted no later [posted no later |posted no later

information lone day after {than 5 days than 4 days than 4 days

about the issuance. after issuance.) Jafter issuance.) Jafter issuance.)

lagency and

its Target met

ladjudicatory (All material

activities. posted no later

than 6 days
lafter issuance.)

Ensure that |-Timeliness of |New goal |New goal [New goal |New goal -Materials were

the agency’s [postings to developed to |developedto |developedto |developedto _| posted to the

website lagency website. |support the support the support the support the lagency’s

provides Strategic Plan Strategic Plan |Strategic Plan |Strategic Plan [website within

equitable |-Perform annual |for FYs 2022 — |for FYs 2022 — {for FYs 2022 — |for FYs 2022 — |2 days after

access to all |vendor-initiated |2026. 2026. 2026. 2026. issuance.

users and review of the

servesasa Jagency’s Accessibility

useful webpage for {information and)

repository for |compliance with guidelines were

information Section 508 of posted on the

about the the Americans lagency’s

lagency and | with Disabilities website.

its Act.

ladjudicatory Target met

activities. (-All material
Ito be posted no
later than 4
days after
issuance.
-Conduct
periodic
reviews of the
lagency’s
website to seek
alternative
methods for
ensuring
equitable access|
to all users.)

12


Use States oF Apacs
OccupationaL Sarety AND HeattH Review Commission
Ove Laraverte Cena
1120 201m Steeer, NW. - Nevin FLoon:
Wastuxcros, DC 20036-3457
(202) 606-5723

Ornice oF Tie Crusty

November 15, 2022

The President
1600 Pennsylvania Ave. NW
Washington DC 20500

Dear Mr. President:

1 am pleased to transmit the Occupational Safety and Health Review Commission's (Review
Commission) Fiscal Year (FY) 2022 Performance and Accountability Report (PAR). The PAR
includes performance information, as required by the Government Performance and Results Act
(GPRA) and the GPRA Modernization Act, and audited financial statements and related
documentation, as required by the Accountability of Tax Dollars Act of 2002.

The Review Commission's sole 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 the Occupational Safety and Health Act, and
employees and/or their representatives. The Review Commission continues to set high
performance standards for accomplishing its mission. During FY 2022, we demonstrated
measurable success in meeting our stated goals.

The Review Commission provides two levels of adjudication when an employer timely contests
acitation issued by OSHA: Administrative Law Judge (ALJ)-level and Commission review-
level. At the Commission review-level, 12 cases were resolved during this past fiscal year. The
agency operated without a full complement of Commissioners throughout FY 2022. With only
two Commissioners, it can be difficult to reach agreement sufficient to dispose of some cases.
However, despite this challenge, the Commission review-level met its four targeted outcome
performance goals. These goals include (1) resolving all priority cases at the agency in a timely
manner; (2) developing and implementing case management practices that will minimize the
average age of all pending Commission review-level cases; (3) ensuring that the average age of
all Commission review-level cases is no greater than 18 months from direction for review; and
(4) ensuring that no more than 20 percent of Commission review-level cases are older than two
years and ensuring that no cases are older than three years from direction for review.

Our ALJs disposed of 1,546 cases in FY 2022 and met several of its targeted performance goals.
These goals include disposing of 90 percent of simplified cases within one year and disposing of
85 percent of complex cases within 20 months. However, the ALJ-level was unable to achieve
the following targeted goals: (1) 100 percent of all pleadings received in our electronic filing
system initiated electronically (at the close of the FY, the percent of all pleadings received in our
electronic filing system that were initiated electronically was 98 percent); (2) dispose of 95


Required Supplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board
(FASAB) require that the RSI be presented to supplement the financial statements. Such information is the
responsibility of management and, although not a part of the financial statements, is required by FASAB,
which considers it to be an essential part of financial reporting for placing the financial statements in
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
RSI in accordance with U.S. generally accepted government auditing standards, which consisted of
inquiries of management about the methods of preparing the RSI and comparing the information for
consistency with management’s responses to the auditor’s inquiries, the financial statements, and other
knowledge we obtained during the audit of the financial statements, in order to report omissions or material
departures from FASAB guidelines, if any, identified by these limited procedures. We did not audit and we
do not express an opinion or provide any assurance on the RSI because the limited procedures we applied
do not provide sufficient evidence to express an opinion or provide any assurance.

Other Information

OSHRC’s other information contains a wide range of information, some of which is not directly related to
the financial statements. This information is presented for purposes of additional analysis and is not a
required part of the financial statements or the RSI. Management is responsible for the other information
included in OSHRC’s PAR. The other information comprises the summary of management assurance and
other information as applicable but does not include the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the other information, and we do not express
an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.

Report on Internal Control over Financial Reporting

In connection with our audits of OSHRC’s financial statements, we considered OSHRC’s internal control
over financial reporting, consistent with our auditor’s responsibilities discussed below.

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described below, and was not designed to
identify all deficiencies in internal control that might be material weaknesses or significant deficiencies? or
to express an opinion on the effectiveness of OSHRC’s internal control over financial reporting. Given
these limitations, during our audit, we did not identify any deficiencies in internal control over financial

7 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 over financial reporting, 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 over financial reporting that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
32

EE BROWN & COMPANY >
CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC



Outcome | Performance FY FY FY FY FY
Goals Measures 2018 2019 2020 2021 2022
Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
Improve -Streamline |New goal INew goal |New goal |New goal -Researched
technology joperationsand |developedto |developedto |developedto |developedto resources and
infrastructure Jinfrastructure to [support the support the support the support the features
through eliminate Strategic Plan |Strategic Plan [Strategic Plan |Strategic Plan |available for
efficiencies duplication; for FYs 2022 — [for FYs 2022 — |for FYs 2022 — | for FYs 2022 — | migration
and minimize 12026. 12026. 2026. 2026. associated with
investments servers, storage, Cloud Services.
(e.g., training,]and application
equipment, sprawl. -Trained staff
services) to lon the use of
support the |-Consolidation Office 365,
effective use Jof technological SharePoint,
of broadband, |services and lOneDrive, and
cyber move from an ‘Teams and
security, and |‘‘on premise” Zoom
energy infrastructure to platforms.
efficiency. }a modern
cloud” based |-Reported
system to compliance
promote with executive
efficiencies in orders and/or
systems binding
Imanagement, operational
remote directives.
laccessibility,
continuity of Target met
operations, and (-Reduce
budget savings. physical servers
through
-Maintain virtualization.
standardized
platforms, -Provide
including training for
hardware and lusers to educate
software. them on IT
efficiencies
-Partner with (e.g., working
Federal agencies inacloud
that monitor environment).
network traffic
land isolate |-Report annual
potential risks. compliance
with applicable
executive
lorders and/or
binding
operational
directives.

21


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, 2022 AND 2021

TABLE OF CONTENTS
AGENCY HEAD MESSAGE
MANAGEMENT DISCUSSION AND ANALYSIS. .....ccccccescesseeseestesesseesesseeseesesnennneneenee
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS ...........
BALANCE SHEET .........:ccossssescessssrsssssvensonevenenesvensenenepesassesssussncnsepenconeneosenenenneneasenensnana
STATEMENT OF NET (COST secsissnsssssessnvssosesserssesvssesrasenviwanenimccessvsssswensisecssuecsieacsistves

STATEMENT OF CHANGES IN NET POSITION .......ccccssessessessessesseeseeseesseseeseeneeneensens
STATEMENT OF BUDGETARY RESOURCES wiviicssssesssneivesosersezcessssascavarrscminsicereesseves

NOTES TO THE FINANCIAL STATEMENTS .........sccccsessesseesessesseeseesesseeneessenecneeneeneenee

1

Hi BROWN & COMPANY >
CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC


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. Reclassification

Certain fiscal year 2021 balances have been reclassified, retitled, or combined with other financial
statement line items for consistency with the current year presentation.

O. Classified Activities
Accounting standards require all reporting entities to disclose that accounting standards allow certain
presentations and disclosures to be modified, if needed, to prevent the disclosure of classified

information.

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2022 and 2021 were as follows:

2022 2021
Status of Fund Balance with Treasury:
Unobligated Balance
Available $ 465.858 $ 172.624
Unavailable 1,350,193 1,616,576

ae Balance Not Yet Disbursed 16 34
Te $4,386,967 4,405,334

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

The available unobligated fund balances represent the current-period amount available for obligation
or commitment. At the start of the next fiscal year, this amount will become part of the unavailable
balance as described in the following paragraph.

The unavailable unobligated fund balances represent the amount of appropriations for which the
period of availability for obligation has expired. These balances are available for upward adjustments
of obligations incurred only during the period for which the appropriation was available for
obligation or for paying claims attributable to the appropriations.

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

undelivered orders that have reduced unexpended appropriations but have not yet decreased the fund
balance on hand (see also Note 11).

43


include SSNs. In accordance with the directive, the SAOP also reviews the agency’s contracts and
recommends, where appropriate, inclusion of clauses concerning privacy matters.

The agency has implemented a privacy continuous monitoring policy and strategy to ensure that the
agency’s privacy controls, including the ones discussed above, are reviewed at regular intervals. As with
its information security program, the Review Commission has maximized its limited financial and human
resources to establish a comprehensive privacy program that effectively protects data maintained by the
agency.

Finally, the Review Commission has a limited social media presence. To address privacy concerns that
could arise using social media, the agency has a social media use policy in place (revised in FY 2022) that
covers all agency personnel, including contractors, and governs both official and personal social media use.
Further, the agency has a formalized policy in place for redacting PII from documents that are posted on its
website (also revised in FY 2022) to ensure that such information is protected to the greatest extent possible.
The agency also has a Breach Response Plan in place as required by OMB Memorandum 17-12. The SAOP
has continued to comply with policy and OMB’s guidance by conducting tabletop exercises annually and
staying abreast of information security throughout the agency.

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 2022, each of the 1,510 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, and employee personnel and performance files. Management reviews this information for
accuracy.

Limitations of the Financial Statements

The principal financial statements are prepared to report the financial position, financial condition, 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.

29


OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
STATEMENT OF NET COST
FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021
(In Dollars)

Gross Program Costs:

Administrative Law Judge s 6,509,121. 6,608,829
Less: Famed Revenue (18) =
Net Program Costs S$ 6,509,003 __ S$ 6,608,829.

Commission $ 5,508,035 $ 5,588,862
Less: Eamed Revenue (100) =
Net Program Costs $ 5,507,935__$. 5,588,862,

Executive Director $ 1,752,932 $ 1,774,464
Less: Eamed Revenue (32) -
Net Program Costs $. 1,752,900 _$. 1,774,464

Net Cost of Operations Ss 13,769,838 _$ 13,972,155.

The accompanying notes are an integral part of these financial statements.
36


Maintain and
lenhance
secure
electronic
information
systems for
case
management,
legal research,
public access
to data
through the
internet, and
continuity of
ithe agency's
operations at
all times.

|Conduct
periodic audits
lof information
systems to
verify systems
availability are
lat acceptable
levels.

|New goal
developed to
support the
Strategic Plan
for FYs 2022 —
2026.

[New goal
developed to
support the
Strategic Plan
for FYs 2022 —
2026.

[New goal
developed to
support the
Strategic Plan
for FYs 2022 —
12026.

INew goal
developed to
support the
Strategic Plan
for FYs 2022 —
2026.

Improve
network
|communic-
ations to ensure
stakeholders
can access
necessary
information
without delay.

24



Outcome | Performance} FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Goals Measures Actual Actual Actual Actual Actual
(Target) (Target) (Target) (Target) (Target)
-Percent of 96% 93% 96% 95%
complex cases |Target met |Targetmet |Target met Target met
disposed of
within 20 (Dispose of |(Dispose of | (Dispose of (Dispose of
months at ALJ |95% of 95% of 95% of 95% of
level. settlement part |settlement part | settlement part |settlement part
cases within 19|cases within _|cases within 19|cases within 19
months.) 19 months.) | months.) months.)
86% 85% 94% 89%
Target not + |Targetnot |Target not Target not
met met met met

(Dispose of |(Dispose of |(Dispose of (Dispose of
95% of 95% of 95% of 95% of
complex cases |complex cases |complex cases _|complex cases
within 20 within 20 within 20 within 20

months.) months.) months.) months.)
Ensure thata _|-Percent of [New targets |New targets |New targets |New targets [94%
significant simplified cases]developed to jdevelopedto |developedto |developedto |Target met

proportion of | disposed of support the {support the | support the support the
both complex | within one year | Strategic Plan |Strategic Plan |Strategic Plan |Strategic Plan |(Dispose of 90

and non- at the ALJ for FYs 2022 |for FYs 2022 |for FYs 2022 —| for FYs 2022 —|percent of
complex cases _|level. — 2026. — 2026. 2026. 2026. simplified
at the ALJ level cases within
are resolved -Percent of lone year.)
within one year }non-complex
to 20 months —_| conventional 89%
from cases disposed Target not
docketing.2 of within 17 met
months at the
ALJ level. (Dispose of 95
percent of
-Percent of conventional
settlement part cases within
cases disposed 17 months.)
of within 19 91%
months. Target not
met
-Percent of
complex cases (Dispose of 95
disposed of percent of
within 20 settlement part
months at the cases within
ALJ level. 19 months.)
87%
Target met

2Except for mandatory settlement cases, which are assigned by the Chief Judge upon receipt from the Office of the
Executive Secretary, judges are not assigned cases until initial pleadings have been filed. This assignment generally
occurs approximately 60 days after the case has been docketed due to the parties’ frequent requests for extensions of
time for filing initial pleadings.


NOTE 3. ACCOUNTS RECEIVABLE, NET

Accounts receivable balances as of September 30, 2022 and 2021 were as follows:

2022 2021
Other than Intergovernmental
Accounts Receivable $ 2,048 $ 5,118
Total Accounts Receivable $ 2,048 $ 5,118

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, 2022 and 2021.

NOTE 4. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the Review Commission as of September 30, 2022 and 2021, 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.

2022 2021

Intragovernmental — Unemployment Insurance $ - $ 1,908
Unfunded Leave 698,282 721,248
Total Liabilities Not Covered by Budgetary Resources $ 698,282 $ 723,156

Total Liabilities Covered by Budgetary Resources 676,269 675,181
Total Liabilities $ 1,374,551 $ 1,398,337

Unemployment Insurance liability represents 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.

44


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.

2023 $ 995,847

2024 102,473
2025 103,369
2026 104,284
2027 105,218
Thereafter 106,172
Total Future Lease Payments $ 1,517,363

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

NOTE 7. COMMITMENTS AND CONTINGENCIES

The Review Commission did not have any material contingent liabilities that met disclosure
requirements as of September 30, 2022 and 2021.

NOTE 8. INTER-ENTITY COSTS

The Review Commission recognizes certain inter-entity costs for goods and services that are received
from other federal entities at no cost or at a cost less than the full cost. Certain costs of the providing
entity that are not fully reimbursed are recognized as imputed cost and are offset by imputed revenue.
Such imputed costs and revenues relate to employee benefits and claims to be settled by the Treasury
Judgement Fund. The Review Commission recognizes as inter-entity costs 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
periods ended September 30, 2022 and 2021, respectively, inter-entity costs were as follows:

2022 2021
Office of Personnel Management $ 597,583 $ 566,138
Total Imputed Financing Sources $ 597,583 $ 566,138

46


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:

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

e Maintaining and enhancing a website to provide the public with greater access to Review
Commission information;

e Providing agency-wide support in the areas of finance, budget, procurement and contracting,
human resources, equal opportunity, and general administrative services;

e 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;

e Implementing case management and administrative systems through information technology
hardware and software;

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

e Enhancing telecommunications and improving technology efficiency and effectiveness.