U.S. Occupational Safety and Health Review Commission

OSHRC 

Performance and Accountability Report

FY 2016

 
U.S. OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

PERFORMANCE AND ACCOUNTABILITY REPORT,

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2016 AND 2015 

TABLE OF CONTENTS

AGENCY HEAD MESSAGE

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

FINANCIAL SECTION

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS ............ 24 

BALANCE SHEET ............................................................................................................... 28 

STATEMENT OF NET COST ............................................................................................. 29 

STATEMENT OF CHANGES IN NET POSITION ............................................................. 30 

STATEMENT OF BUDGETARY RESOURCES ................................................................ 31 

NOTES TO THE FINANCIAL STATEMENTS .................................................................. 32 

1 
1 

U.S. Occupational Safety and Health Review Commission

Fiscal Year (FY) 2016 Performance and Accountability Report

Management Discussion and Analysis

Overview and Mission

The U.S. Occupational Safety and Health Review Commission (OSHRC or Review 

Commission) is an independent adjudicatory agency created by the Occupational Safety and 

Health Act of 1970 (the Act). Our sole statutory mandate is to serve as an administrative court 

providing fair and expeditious resolution of disputes involving the Occupational Safety and 

Health Administration (OSHA), employers charged with violations of Federal safety and health 

standards, and employees and/or their representatives. The Review Commission was created by 

Congress as an agency completely independent of the Department of Labor to ensure that 

OSHA’s enforcement actions are carried out in accordance with the law and that parties are 

accorded due process.

Our Function and Procedures 

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

provide two levels of adjudication when an employer contests an OSHA citation for alleged 

violations of the Act. The first is a trial level, which affords an opportunity for a hearing before 

a Review Commission Administrative Law Judge (ALJ or judge). The judge’s decision becomes 

final unless it is directed for review by a Commission member (Commissioner). When such 

review is granted, Commission Members – who are appointed by the President and subject to 

Senate confirmation – address the issues presented by the case and issue a decision. Final 

Commission decisions may be appealed to the Federal courts of appeals. At both the ALJ and 

Commission levels, the Review Commission is charged with providing fair and impartial 

adjudication of cases concerning employee workplace safety and health.

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

two regional offices: one in Atlanta, GA, and one in Denver, CO. All three offices are staffed 

with ALJs who travel, as necessary, to adjudicate cases in locales near where the alleged 

workplace violations took place. 

Vision Statement

The Review Commission strives to be: 

• A judicial body that is – and is recognized for being – objective, fair, prompt, 

professional, and respected. 

• An agency that creates a body of law through its decisions that defines and 

explains the rights and responsibilities of employers and employees under the Act. 

• A model Federal agency with highly effective processes; a highly motivated, 

qualified, and diverse workforce; and modern information management, 

communications, and administrative systems.
2 

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

performance, service, and value to the people it serves.

Challenges and Opportunities 

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

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

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

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

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

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

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

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

consent of the Senate. The Occupational Safety and Health Act prescribes that a quorum 

consists of a minimum of two Commissioners. By statute, decisions can only be decided on the 

affirmative vote of a quorum. During periods when the Commission lacks a quorum, no cases 

can be decided. In addition, with only two Commissioners, it may be more difficult to reach 

agreement sufficient to dispose of some cases. In cases where such agreement cannot be 

reached, deadlocks result. Consequently, action on important issues may be postponed and 

issuance of some pending cases will be delayed. Over the past 21 years the Commission has 

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

The Commission operated with two Commissioners during all of FY 2016. This was the result 

of one Commissioner’s term expiring in April of FY 2015, without the nomination and 

confirmation of a new Commissioner. Notwithstanding the lack of a full complement of 

Commissioners for the fiscal year, the Commission resolved 19 cases during FY 2016 and met 

two of its GPRA goal targets for FY 2016 at the Commission level. 

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 31,900 inspections in FY 2016. The number of OSHA inspections and their 

likely focus on the highest hazard workplaces affects the Review Commission’s ALJ caseload. 

These inspections have tended to result in more complex and contentious cases, which consume 

extensive judicial time. For such cases, the discovery process is lengthy and time consuming, 

motion practice is expanded, legal research and decision-writing time is protracted and, of 

necessity, the trial process is elongated and complicated. 

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

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

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

Under Commission Rule 2200.120, with the consent of the parties, the Chief Administrative Law 

Judge may assign a Settlement Judge to a pending proceeding to aid the parties in resolving a 
3 

case. In addition, if the aggregate amount of the penalty sought by the Secretary of Labor is 

$100,000 or greater, the Mandatory Settlement procedure goes into effect. A Settlement Judge 

appointed by the Chief ALJ has control of the settlement process and may require that the 

parties’ representatives be accompanied by officials having full settlement authority. This 

procedure has aided the Review Commission in disposing of some extremely complex cases, 

with the approval of all parties. 

The Simplified Proceedings process applies to cases in which proposed penalties are not more 

than $20,000; when found eligible by the Chief ALJ, the process may be used in cases with 

proposed penalties up to $30,000. The Simplified Proceedings process allows parties with 

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

Procedure and evidence, while ensuring that due process requirements are maintained. Under 

this process, an employer, with or without counsel, can present its case before an ALJ and 

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

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

and legal expenses otherwise required of employers contesting relatively small-penalty cases.

Performance Goals and Results

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

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

Government Performance and Results Act (GPRA) of 1993, the Review Commission revised its 

strategic plan for the period FY 2014 through FY 2018. The plan focuses on three overarching 

strategic goals: 

1) Engendering respect for the rule of law by assuring fair, just, and expeditious 

adjudication of disputes brought before the Commission and its judges. 

 

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

ensuring that the Review Commission keeps interested parties and the public it serves 

informed of the agency’s work at all levels, consistent with due process requirements. 

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

efficiencies in information management, financial management, human resources, and 

real property to accomplish the agency’s statutory and regulatory mandates. 

Commissioner Function

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

following an initial decision by an ALJ. This higher level of review must be prompt, fair, and 

protective of the parties’ rights, consistent with our overall strategic goals. 

In FY 2016, the Commission had 33 cases pending on its docket at the beginning of the year. It 

received 15 new cases and resolved 19 cases by year end. 
4 

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

2012 through 2016. 

Outcome 

Goals

Performance 

Measures

FY 2012

Actual

(Target)

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

Reduce the 

average age of 

open cases at 

the 

Commissionlevel.*

Average age of 

open cases.

18 months

Target met

(33 months or 

less)

21 months

Target met

(30 months or 

less)

26 months

Target met

(27 months or 

less)

Replacement 

goal developed 

for FY 2015

Replacement 

goal developed 

for FY 2016

Resolve all 

priority cases 

in a timely 

manner. **

Percent of 

priority cases 

disposed of 

within 6 months.

100%

Target met

(100%)

100%

Target met

(100%)

100%

Target met

(100%)

100%

Target met

(100%)

100%

Target met

(100%)

Develop and 

implement 

case 

management 

practices that 

will minimize 

the average 

age of all 

pending 

Commissionlevel cases.

Average age of 

all pending 

Commissionlevel cases.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

Case 

management 

practices 

developed. 

The average 

age of all 

pending 

Commissionlevel cases is 

26 months. 

*Target met

Develop case 

management 

practices.

(27 months or 

less)

Implemented 

case 

management 

practices.

The estimated 

average age of 

all pending 

Commissionlevel cases is 21 

months.

Target met

(24 months or 

less)

Implemented 

case 

management 

practices.

The estimated 

average age of 

all pending 

Commissionlevel cases is 

24 months.

Target not 

met

(23 months or 

less)

Further reduce 

the average 

age of the 

oldest pending 

Commissionlevel cases.

Using experience 

gained from the 

recent disposition 

of the legacy 

cases, as well as 

recommendations 

derived from 

Commission’s 

public meeting on 

legacy cases, to 

develop and 

implement case 

management 

practices that 

minimize the 

average age of the 

oldest fifteen 

percent (15%) of 

pending cases.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

Case 

management 

practices 

developed.

Target met

(Develop 

case 

management 

practices)

Case 

management 

practices were 

fully 

implemented.

Target met

(Implement 

case 

management 

practices).

Case 

management 

practices were 

fully 

implemented.

Target met

(Implement 

case 

management 

practices).
5 

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

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

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

end of FY 2018. 

** Priority cases include Federal Rule of Civil Procedure (“FRCP”) 60(b) cases, Commission Rule (“CR”) 101(a) defaults, court remands, and 

interlocutory reviews. However, some FRCP 60(b) and CR 101(a) cases–those with significant threshold issues–are not treated as priority 

cases because of the complexity of those issues. Also, where the parties have indicated intent to settle a priority case, the timeframe will be 

tolled. 

At the Commission level, 19 cases were resolved and two of three performance goals were met. 

The Commission operated with only two Commissioners during all of fiscal year 2016. Due to 

the lack of a full complement of Commissioners, our ability to meet the performance goal of 

having an estimated average age of all pending Commission-level cases of 23 months was 

adversely impacted. Nevertheless, pursuant to OSHRC’s Strategic Plan, the agency developed 

and implemented case management practices to help focus on reducing the average age of the 

oldest pending Commission-level cases and of all pending Commission-level cases. These 

practices include:

• Periodic Docket Review

• Conduct quarterly and semiannual case management docket reviews to identify 

opportunities to speed case processing 

o Quarterly Counsels’ meeting 

oSemiannual Commission docket review 

• Strategic Plan Implementation Monitoring 

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

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

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

periodic docket review meetings

• Efficient Briefing Practices

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

Notice
6 

The following table summarizes actual Commission case activity for fiscal years 2012 through 

2016. 

Commission Case Activity

FY 2012 

Actual 

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Actual

FY 2016

Actual

New Cases:

 Cases Directed for

 Review: 14 24 11 13 14

Other New Cases:

 Interlocutory

 Appeals 2 0 0 0 0

 Remands 3 1 0 1 1

 Other 0 0 0 0 0

 Total Other New

 Cases: 5 1 0 1 1

Total New Cases: 19 25 11 14 15

Case Inventory from 

Prior Year: 35 31 36 35 33

Total Caseload: 54 56 47 49 48

Dispositions: 23 20 12 16 19

Case Inventory, 

 End of Year: 31 36 35 33 29

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 2016 with 1,099 cases in its inventory and 

2,183 new cases were received during the year, for a total of 3,282 cases. A total of 2,173 cases 

were disposed of, leaving 1,109 cases in the inventory at the end of the fiscal year. 
7 

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

2012 through 2016. 

Outcome 

Goals

Performance

Measures

FY 2012

Actual

(Target)

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

Ensure that a 

significant 

proportion of noncomplex cases at 

the ALJ level are 

resolved in less 

than one year.

Percent within 

one year.

96%

Target not 

met

(98%)

95.3%

Target not 

met

(98%)

97%

Target met

(95%)

New goal 

developed for 

FY 2015

New goal 

developed for 

FY 2016

Ensure that a 

significant 

proportion of 

complex cases at 

the ALJ level are 

resolved in less 

than one year.

Percent within 

one year.

87%

Target not 

met

(95%)

85.6%

Target not 

met

(95%)

80%

Target not 

met

(89%)

New goal 

developed for 

FY 2015

New goal 

developed for 

FY 2016

Ensure that a 

significant 

proportion of both 

complex and noncomplex cases at 

the ALJ level are 

resolved within 

one year to 20 

months from 

docketing. 

Percent of 

simplified cases 

disposed of 

within one year 

at ALJ level.

Percent of 

conventional 

cases disposed 

of within 17 

months.

Percent of 

settlement part 

cases disposed 

of within 19 

months.

Percent of 

complex cases 

disposed of 

within 20 

months at ALJ 

level.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan 

Dispose of 95% 

of simplified 

cases within one 

year.

97%

Target met

Dispose of 90% 

of conventional 

cases within 17 

months.

92%

Target met

Dispose of 98% 

of settlement 

part cases within 

19 months.

95%

Target not met

Dispose of 95% 

of complex 

cases within 20 

months. (FY15 

will be the 

baseline for this 

measure)

80%

Target not met

Dispose of 95% 

of simplified 

cases within one 

year.

93%

Target not met

Dispose of 90% 

of conventional 

cases within 17 

months.

92%

Target met

Dispose of 98% 

of settlement 

part cases within 

19 months

93%

Target not met

Dispose of 95% 

of complex 

cases within 20 

months.

94%

Target not met
8 

Outcome 

Goals

Performance

Measures

FY 2012

Actual

(Target)

FY 2013

Actual

(Target)

FY 2014

Actual

(Target)

FY 2015

Actual

(Target)

FY 2016

Actual

(Target)

Improve training 

opportunities for 

Administrative 

Law Judges.

Time and 

resources 

dedicated to 

judicial training 

with special 

emphasis on 

mediation and 

dispute 

resolution.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

Pro rata share 

of the 

Agency’s 

training 

resources was 

devoted.

Target met

(Pro rata 

share of the 

Agency’s 

training 

resources)

Pro rata share 

of the Agency’s 

training 

resources was 

devoted.

Target met

(Pro rata share 

of the Agency’s 

training 

resources)

Pro rata share 

of the Agency’s 

training 

resources was 

devoted.

Target met

(Pro rata share 

of the Agency’s 

training 

resources)

Publish significant 

procedural 

decisions and nondispositive orders 

separately from 

other decisions.

Key decisions 

and orders 

published 

within 4 months 

of the order.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

11 key 

decisions and 

orders 

published

Target not 

met

(15 key 

decisions and 

orders 

published)

13 key 

decisions and 

orders 

published

Target not met

(20 key 

decisions and 

orders 

published)

13 key 

decisions and 

orders 

published

Target not met

(20 key 

decisions and 

orders 

published)

The factor that adversely impacted the Office of the Chief Administrative Law Judge’s (OCALJ) 

ability to meet two of its outcome goals was the increased complexity of the cases at the ALJ 

level. The increased complexity of cases is 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 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 judges to invest a greater amount of time 

in handling the matters, and places an increased demand on the full-time equivalent (FTE) 

positions assigned to handle the volume of cases. 
9 

The following table provides actual ALJ workloads for fiscal years 2012 through 2016. 

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual

OSHA Inspections*: 40,961 39,228 36,163 35,817 31,900

Administrative Law Judge Workload:

a. Case Inventory, Start of Year 1,345 1,154 909 888 1,099

b. New Cases 2,696 2,215 2,017 2,164 2,183

c. Total Caseload 4,041 3,369 2,926 3,052 3,282

d. Disposals**

 (1) With Hearing 95 68 50 61 42

 (2) Mandatory Settlement Conferences 81 66 56 86

 (3) Without Hearing 2,792 2,311 1,922 1,836 2,045

e. Total Dispositions 2,887 2,460 2,038 1,953 2,173

Total Case Inventory, End of Year 1,154 909 888 1,099 1,109

*Provided by OSHA. 

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

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

adjudicatory hearings and mandatory settlement conference hearings are now reported separately starting with FY 

2013.
10 

Executive Director Function

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

Review Commission in fulfilling its mission.

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

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

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

the Executive Director and include: 

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

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

Commission information;

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

human resources, equal opportunity, and general administrative services;

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

agency employees;

• Procuring goods and services, maintenance and needed repairs of equipment, training, 

reference materials, supplies, and office space;

• Implementing case management and administrative systems through IT hardware and 

software;

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

• Enhancing telecommunications and improving technology efficiency and effectiveness.
11 

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

2012 through 2016. 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Invest in human 

capital by 

increasing staff 

development 

and training 

opportunities 

and increasing 

employees’ 

capabilities and 

potential.

One percent of 

basic payroll 

devoted to 

staff training 

and 

development 

by FY 2015, 

and no fewer 

than 24 hours 

training per 

staff member 

per year.

.54% of 

basic payroll 

to training/ 

62% of staff 

had 12 hours 

of training 

Target not 

met 

(.55% of 

basic payroll 

to training 

and 12 

hours)

.42% of 

basic payroll 

to training/ 

53% of staff 

received 12 

hours of 

training

Target not 

met

(.55% of 

basic payroll 

to training

and 12 

hours)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

Examine and 

identify 

contracted 

positions 

appropriate for 

insourcing.

Percentage of 

positions 

identified 

appropriate for 

insourcing that 

are insourced.

One position 

insourced. 

No other 

position 

eligible

Target met 

(Insource 

position 

identified 

and identify 

additional 

positions to 

insource) 

No 

additional 

positions 

identified for 

insourcing 

Target met

(Insource 

any 

additional 

positions 

identified)

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

Use of 360 

degree 

employeesupervisor 

feedback 

mechanisms.

All supervisors 

subject to 360 

degree 

feedback and 

feedback is 

used to ensure 

that individual 

and 

organizational 

effectiveness 

goals are being 

met.

Feedback 

Instrument 

used to 

evaluate 

supervisors 

Target met

(Feedback 

mechanism 

used to 

evaluate all 

supervisors) 

Feedback 

Instrument 

used to 

evaluate 

supervisors 

Target met

(Feedback 

mechanism 

used to 

evaluate all 

supervisors) 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic Plan
12 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Ensure that the 

Review 

Commission’s 

website is 

accessible to 

people with 

disabilities and 

serves as a 

useful 

repository for 

information 

about the 

agency and its 

adjudicatory 

activities.

Timeliness of 

postings to 

agency web 

site.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

All required 

material 

posted to the 

website in less 

than 7 days 

and usually 

within one day 

after issuance.

Target met

(All material 

posted no later 

than 7 days 

after issuance)

All required 

material posted 

to the website 

in less than 7 

days and 

usually within 

one day after 

issuance.

Target met

(All material 

posted no later 

than 7 days 

after issuance)

All required 

material posted 

to the website 

in less than 7 

days and 

usually within 

one day after 

issuance.

Target met

(All material 

posted no later 

than 7 days 

after issuance)

Produce timely 

and accurate 

reports on the 

Review 

Commission’s 

activities, 

including all 

reports required 

by law.

Timeliness of 

submissions of 

required 

reports, e.g., 

financial 

statements, 

OMB, OPM, 

and EEO 

reports, etc.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

All material 

submitted by 

required 

deadlines. 

Target met

(100% of all 

material to be 

submitted by 

required

deadlines)

All material 

submitted by 

required 

deadlines. 

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)

All material 

submitted by 

required 

deadlines. 

Target met

(100% of all 

material to be 

submitted by 

required 

deadlines)

Broaden the 

Review 

Commission’s 

outreach 

activities with 

other Federal 

agencies and 

the affected 

public, 

including 

targeted 

education and 

outreach for 

individuals with 

limited English 

proficiency. 

Participation in 

professional 

conferences 

and meetings 

and strategic 

engagement 

with 

stakeholders.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Agency focus 

was to revise 

the draft 

language 

access plan 

and submit to 

DOJ for 

approval. 

Target not 

met

(Agency to 

sponsor one 

outreach and 

educational 

activity per 

year)

Draft language 

access plan was 

posted on the 

Agency’s 

website.

Target met

(Fully 

implement a 

language access 

plan and post to 

the Agency’s 

website for 

public access)

Draft language 

access plan is 

posted on the 

Agency’s 

website.

Target met

(Fully 

implement a 

language 

access plan 

and post to the 

Agency’s 

website for 

public access)
13 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Develop and 

present an 

annual budget 

and 

performance 

plan that clearly 

represents how 

the organization 

will accomplish 

governmentwide 

management 

priorities, 

agency-wide 

goals, and 

organizational 

goals.

System that 

links resources 

to specific 

activities that 

support 

measurable 

programmatic 

outcomes and 

objectives.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Resources 

were identified 

for various 

programs that 

support the 

methodology 

to efficiently 

align the 

budget with 

program goals.

Target met

(Identify 

resources to 

support the 

methodology 

to efficiently 

align the 

budget with 

program goals)

Agency 

program goals 

were aligned 

with the budget 

to efficiently 

accomplish the 

mission. 

Target met

(Align budget 

with Agency 

program goals 

to efficiently 

accomplish 

mission (e.g., 

program, 

human capital, 

procurement, IT 

infrastructure, 

and space and 

facilities)

Agency 

program goals 

continue to be 

aligned with 

the budget to 

efficiently 

accomplish the 

mission. 

Target met

(Align budget 

with Agency 

program goals 

to efficiently 

accomplish 

mission (e.g., 

program, 

human capital, 

procurement, 

IT 

infrastructure, 

and space and 

facilities)
14 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Implement a 

comprehensive 

human capital 

plan designed to 

recruit, retain 

and develop 

staff; support 

succession 

planning by 

strategically 

aligning present 

and future 

human capital 

needs and 

workforce 

planning; and 

evaluate the 

performance 

management 

system based on 

individual and 

organizational 

effectiveness.

Increase 

personnel 

capabilities 

and 

development 

by improving 

training 

opportunities. 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

.55% of basic 

payroll was 

devoted to 

staff training 

and 

development. 

Target met 

(.55% of basic 

payroll 

devoted to 

staff training 

and 

development) 

.44% of basic 

payroll devoted 

to staff training 

and 

development. 

Target not met

(.65% of basic 

payroll devoted 

to staff training 

and 

development) 

.44% of basic 

payroll 

devoted to 

staff training 

and 

development. 

*Target not 

met

(.70% of basic 

payroll 

devoted to 

staff training 

and 

development) 

 

*The Review Commission devoted .44 percent of basic payroll to staff training and development. Our 

ability to expend .70 percent was severely impacted due to a nearly three-month Continuing Resolution 

which postponed the timely allocation of training funds. 
15 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Integrate 

knowledge 

management 

(KM) processes 

into a plan to 

capture, share 

and generate 

knowledge and 

establish a 

unified 

knowledge 

network of 

people, 

processes and 

technology to 

enhance 

operations and 

efficiencies in 

all aspects of 

essential agency 

operations. 

Conduct 

periodic 

knowledge 

audits to 

identify 

sources of 

knowledge and 

“at risk” 

knowledge 

gaps.**

Tailor IT 

infrastructure 

to support the 

effortless 

sharing and 

transfer of 

knowledge. 

Degree to 

which best 

practices and 

lessons learned 

are integrated 

into the 

performance 

management 

system. 

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Staff trained in 

learning 

solution 

designed to 

optimize 

organizational 

performance 

and identify 

KM gaps.

Target 

partially met

(Design the 

KM audit to 

establish 

benchmarks to 

evaluate 

knowledge 

gaps in the 

essential 

Agency 

operations and 

programs).

Identified 

knowledge gap 

vulnerabilities 

to enhance 

Agency 

operations and 

programs. 

Target met

(Use findings 

from evaluation 

of KM audit to 

identify and 

address 

knowledge 

gaps).

Implemented a 

Phased 

Retirement 

directive, 

identified 

knowledge gap 

vulnerabilities, 

and enhanced 

telework 

opportunities 

to retain 

employees that 

move outside 

of the 

commuting 

area.

Target Met

(Use findings 

from 

evaluation of 

KM audit to 

identify and 

address 

knowledge 

gaps).

 

** Areas identified as potential “at risk” knowledge gaps include programs and functions where a subject 

matter expert is eligible to leave the Agency (through retirement or career transition) in one to three years 

and no backup expert has been identified to assume the duties and responsibilities vacated. 
16 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Improve 

technology 

infrastructure 

through 

efficiencies and 

investments 

(e.g., training, 

equipment, and 

services) to 

support the 

effective use of 

broadband, 

cyber security, 

and energy 

efficiency.

Streamline 

operations and 

infrastructure 

to eliminate 

duplication; 

minimize 

servers, 

storage and 

application 

sprawl.

Maintain 

standardized 

platforms 

including 

hardware and 

software.

Improve 

network/comm

unications to 

ensure 

customers can 

access 

necessary 

information 

without delay.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan 

Evaluated 

expanding the 

existing IT 

infrastructure 

and began 

procuring 

equipment and 

services 

necessary to 

support the efiling 

initiative.

Target met

(Evaluate 

expanding the 

existing IT 

infrastructure 

to support efiling 

initiative)

Upgraded data 

circuits, 

implemented a 

new data 

analysis 

platform that 

scans internet 

traffic, trained 

staff on usage 

policies, and 

procured and 

installed Host 

servers.

Target met

(Implement 

recommended 

IT 

infrastructure 

upgrades 

identified in 

evaluation)

Upgraded 

Citrix to 

permit 

additional 

security 

measures; 

upgraded 

servers to 

Virtual 

machines; 

implemented 

a cloud based 

case 

management 

system and 

provided 

training to 

users; 

upgraded 

desktops; and 

procured new 

servers.

Target met

(Implement 

recommended 

IT 

infrastructure 

upgrades 

identified in 

evaluation)
17 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Use existing 

real property 

more 

effectively by 

implementing 

energy 

efficiency 

practices, space 

alignment 

efforts (e.g., 

sustainability) 

and expanding 

telework.

Implement 

measures to 

reduce 

operating 

expenses when 

negotiating 

lease and 

develop a 

system to 

evaluate areas 

of 

consumption 

that impact 

sustainability.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Use of virtual 

machines and 

all equipment 

purchases 

meet EPA 

Energy 

Efficiency 

standards.

Target met

(Establish goal 

of acquiring a 

percentage of 

supplies and 

equipment 

from ecofriendly 

sources)

Disposed of 

equipment 

through 

certified 

recyclers.

Target met

(Dispose of 

equipment in 

an environmentally 

friendly 

manner)

Use of virtual 

machines and 

all equipment 

purchases meet 

EPA Energy 

Efficiency 

standards. 

Moved to a 

shared printing 

environment by 

using installed 

copiers as 

default printers 

moving away 

from desktop 

printers. 

Expanded 

Citrix to 

accommodate 

additional 

telework staff.

Target met

(Increase the 

percentage of 

supplies and 

equipment 

procured from 

eco-friendly 

sources)

Use of virtual 

machines and 

all equipment 

purchases meet 

EPA Energy 

Efficiency 

standards. 

Expanded 

Citrix to 

accommodate 

additional 

telework staff.

Target met

(Increase the 

percentage of 

supplies and 

equipment 

procured from 

eco-friendly 

sources)
18 

Outcome 

Goals 

Performance 

Measures

FY

2012 

Actual

(Target)

FY

2013 

Actual

(Target)

FY

2014 

Actual

(Target)

FY

2015 

Actual

(Target)

FY 

2016 

Actual

(Target)

Enhance the 

agency’s FOIA 

processing 

system by 

developing 

internet-based 

capabilities.

Development 

of an 

electronic form 

and/or request 

tracking 

capability.

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

New goal 

developed to 

support FY 

2014 – 2018 

Strategic 

Plan

Developed an 

electronic 

request form 

used for 

processing and 

expediting 

FOIA requests.

Target met

(Assessment 

of tools and 

resources 

necessary for 

processing and 

expediting 

FOIA requests 

electronically)

Successful 

implementation

of FOIA online 

form and use of 

dedicated FOIA 

email address to 

expedite 

receipt, 

tracking, and 

processing of 

requests.

Target met

(Develop tools 

to be used for 

processing and 

expediting 

FOIA requests 

electronically)

Increased 

efficiency of 

FOIA online 

form and use 

of dedicated 

FOIA email 

address to 

expedite 

receipt, 

tracking, and 

processing of 

requests.

Target met

(Develop tools 

to be used for 

processing and 

expediting 

FOIA requests 

electronically)
19 

Analysis of Financial Statements

The Review Commission had biennial audits of its financial statements from 1996 through 2002. 

Consistent with the Accountability of Tax Dollars Act of 2002, OSHRC began annual audits in 

FY 2003. The Review Commission received an unqualified opinion for each financial audit 

conducted from FY 1996 through FY 2013, and an unmodified opinion for the FY 2014 through 

FY 2016 audits. The terms “unqualified” and “unmodified” refer to clean opinions. 

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

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

services. The Administrative Resources Center prepared the Review Commission’s FY 2016 

financial statements, which include comparative data for FY 2015. 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 2016 totaled $3,481,302 as of September 30, 2016. This represents an 

increase of $716,715. The Fund Balance with Treasury of $3,481,302 represents OSHRC’s only 

asset as of September 30, 2016. It increased 26 percent from FY 2015 and represents 100 

percent of the agency’s total assets for FY 2016. General Property, Plant, and Equipment were 

fully depreciated as of September 30, 2016. 

OSHRC’s liabilities in FY 2016 totaled $945,356 as of September 30, 2016. This is an increase 

of $108,958. The accounts payable balance at September 30, 2016 was $159,690, a decrease of 

$10,531. Unfunded annual leave totaled $466,602 and is approximately 49 percent of total 

agency liabilities.

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

FY 2016 increased by $607,757 from FY 2015. 

Analysis of Statement of Net Cost

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

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

net cost of operations in 2016 was $12,169,886, a decrease of $52,041 or 0.43 percent less than 

the 2015 net cost of operations of $12,221,927. 

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 $607,757 in 

2016 from 2015, a change of approximately 31.2 percent. 
20 

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 2016, 

OSHRC had total budgetary resources of $13,437,352, which is $967,970 more than in FY 2015. 

Management Assurances

Systems, Controls, and Legal Compliance

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

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

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

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

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

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

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

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

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

assessing the agency’s internal operations and determining if there are any weaknesses that need 

correction. In FY 2016, two program reviews took place: an audit of FY 2016 financial 

statements, and an audit of computer and information security. 

Financial Audit

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

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

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

2003 through FY 2013, and an unmodified opinion for the audits conducted in FY 2014 through 

FY 2016. 

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

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

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

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

procedures of the NFC and the BFS. 

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

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

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

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

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

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

obligations. In addition, the OEXD conducts periodic reviews of internal systems including 

travel, payroll, and procurement. 
21 

The FY 2016 financial audit resulted in an “unmodified” opinion with no reported material 

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

agency is functioning well. It provides reasonable assurance as to the efficiency and 

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

and compliance with laws and regulations. These controls satisfy the requirements of the Federal 

Managers' Financial Integrity Act. As previously mentioned, the Review Commission has had 

annual audits of its financial statements since FY 2003, including reviews of the adequacy of the 

Review Commission’s internal control systems. 

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

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

the 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 is pleased to report that no improper payments were made in FY 2016. 

The agency continued the practice of reviewing the General Services Administration (GSA) 

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

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

2016 were verified using the method above, with the exception of 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. Agency staff performed detection activities on a quarterly basis to identify payment 

patterns or anomalies that need to be isolated and subjected to additional review. Based on the 

success of the prevention and detection activities, the Review Commission has avoided the need 

to exercise recovery or collection activities to recapture improperly made payments. 

Computer and Information Security Program 

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

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

Management Act (FISMA), which was signed into law as part of the E-Government Act (Public 

Law 107-347). These evaluations are conducted under the requirements of the Government 

Information Security Reform Act (the predecessor to FISMA), as well as the Office of 
22 

Management and Budget’s (OMB) implementing guidelines, and National Institute of Standards 

and Technology (NIST) guidance. 

Our 2016 FISMA audit states that the Review Commission continues to keep up with additions 

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

National Institute of Standards and Technology (NIST) Special Publication 800-53 Revision 4, 

NIST Special Publication 800-18, Federal Information Processing Standards (FIPS) 199, FIPS 

200, and FIPS 201, each of which place additional requirements on OSHRC. The OSHRC

security program continues to be incorporated into its annual performance and security plans in 

accordance with the law, and provides reasonable assurance and safeguards to maintain integrity 

and competence. Furthermore, the Review Commission practices delegation of authority as a 

structured organization with defined separation of duties and supervision. 

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

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

information. 

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

program and perform automatic updates and scanning. Virus protection has been implemented at 

the server and expanded to our host as well as at the workstation level, which has significantly 

reduced the number of spam and other unwanted electronic mail messages. Additional controls 

in place to protect data from accidental or malicious alteration or destruction include the U.S. 

Department of Homeland Security’s (DHS) Trusted Internet Connection (TIC), Einstein3a 

accelerated (U.S. Cert Program), and Intrusion Prevention Security Services utilization. These 

provide continuous monitoring of the network, intrusion detection and prevention, system and 

email scans, separation of duties based on access need and clearance, internal intrusion detection, 

monitoring and incident reporting and investigation. 

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

Intrusion Detection System (IDS) to provide network perimeter security. Formal procedures for 

reviewing logs are in place, and the Information Technology Officer identifies incidents when a 

security violation occurs. 

The Review Commission’s information security program will, at a minimum, continue to 

implement appropriate recommendations made by an independent evaluator; incorporate 

performance measures to ensure that the security plan is practiced throughout the life cycle of the 

agency’s system; establish additional personnel controls for sensitive information; monitor 

procedures for program effectiveness and compliance with security requirements; assure that 

systems and applications operate effectively and provide appropriate confidentiality, integrity 

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

harm resulting from loss, misuse, unauthorized access, or modification. 
23 

Performance Data Verification

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

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

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

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

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

2016, each of the 2,183 new cases docketed at the ALJ level were entered into the case 

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

data, management periodically reviews the information in the case management/tracking system. 

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

timely basis. The reports are used to assess workload and make workload adjustments, when 

necessary. At the end of the year, this data is used by the offices to measure performance related 

to the goals and to improve management. 

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

these goals is maintained and tracked in the Human Resource system, which includes 

spreadsheets to track training costs and hours, employee performance files, and personnel files. 

Management reviews the information for accuracy. 

Limitations of the Financial Statements

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

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

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

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

formats prescribed by OMB. The statements are in addition to the financial reports used to 

monitor and control budgetary resources, which are prepared from the same books and records. 

These statements should be read with the realization that they are for a component of the United 

States Government, a sovereign entity. 
U.S. OCCUPATIONAL SAFETY & HEALTH

REVIEW COMMISSION

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2016 AND 2015 

 

Prepared By

Brown & Company CPAs and Management Consultants, PLLC

October 31, 2016 
24 

INDEPENDENT AUDITOR'S REPORT 

U.S. Occupational Safety and Health Review Commission 

Washington, D.C. 

Report on the Financial Statements

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

Commission (The Commission) as of September 30, 2016 and 2015, and the related statements of net 

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

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

Management’s Responsibility for the Financial Statements 

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

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

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

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

Auditor’s Responsibility 

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

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

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

Comptroller General of the United States; and the Office of Management and Budget (OMB) Bulletin No. 

15-02, Audit Requirements for Federal Financial Statement. Those standards and OMB Bulletin No. 15-

02, require that we plan and perform the audit to obtain reasonable assurance about whether the financial 

statements are free from material misstatements.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

our audit opinion. 
25 

Opinion on the Financial Statements 

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

financial position of The Commission as of September 30, 2016 and 2015, and its net costs, changes in 

net position, and budgetary resources for the years then ended, in accordance with U.S. generally 

accepted accounting principles. 

Other Matters

Required Supplementary Information

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

Discussion and Analysis (MD&A) and Required Supplementary Information (RSI) sections be presented 

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

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

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

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

supplementary information in accordance with U.S. generally accepted government auditing standards, 

which consisted of inquiries of management about the methods of preparing the information and 

comparing the information for consistency with management’s responses to our inquiries, the basic 

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

We do not express an opinion or provide any assurance on the information because the limited procedures 

do not provide us with sufficient evidence to express an opinion or provide any assurance. 

Other Information

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

The Message From the Chairman and the Other Information sections are presented for purposes of 

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

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

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

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered The Commission’s 

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

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

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

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

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

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

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

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

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

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

governance.
26 

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

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

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

financial statements no deficiencies in internal control were identified that were considered to be a 

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

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether The Commission’s financial statements are free

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

regulations, contracts and grant agreements, noncompliance with which could have a direct and material 

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

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

and contracts applicable to The Commission. The objective was not to provide an opinion on compliance 

with those provisions of laws, regulations, contracts and grant agreements, and accordingly, we do not 

express such an opinion. 

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

reported under Government Auditing Standards or OMB Bulletin No. 15-02. 

Management’s Responsibility for Internal Control and Compliance

The Commission’s management is responsible for (1) evaluating effectiveness of internal control over 

financial reporting based on criteria established under the Federal Managers Financial Integrity Act 

(FMFIA), (2) providing a statement of assurance on the overall effectiveness of internal control over 

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

Auditor’s Responsibilities

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

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

and material effect on the financial statements and applicable laws for which OMB Bulletin No. 15-02 

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

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

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

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

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

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

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

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

not be sufficient for other purposes. 

We did not test compliance with all laws and regulations applicable to The Commission. We limited our 

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

the financial statements and those required by OMB Bulletin No. 15-02 that we deemed applicable to The 

Commission’s financial statements for the fiscal year ended September 30, 2016. We caution that 

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

testing may not be sufficient for other purposes. 
27 

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

and Other Matters

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

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

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

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

in accordance with Government Auditing Standards in considering The Commission’s internal control 

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

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

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

parties.

Largo, Maryland 

October 31, 2016 
FINANCIAL STATEMENTS AND NOTES
The accompanying notes are an integral part of these financial statements.

28 

2016 2015

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 3,481,302 $ 2,758,897

Total Intragovernmental 3,481,302 2,758,897

Accounts Receivable, Net (Note 3) - 1,440

Property, Equipment, and Software, Net (Note 4) - 4,250

Total Assets $ 3,481,302 $ 2,764,587

Liabilities:

Intragovernmental

Accounts Payable $ 4,685 $ -

Other (Note 6) 64,941 52,751

Total Intragovernmental 69,626 52,751

Accounts Payable 159,690 170,221

Other (Note 6) 716,040 613,426

Total Liabilities (Note 5) $ 945,356 $ 836,398

Net Position:

Unexpended Appropriations - Other Funds $ 3,002,549 $ 2,343,852

Cumulative Results of Operations - Other Funds (466,603) (415,663)

Total Net Position $ 2,535,946 $ 1,928,189

Total Liabilities and Net Position $ 3,481,302 $ 2,764,587

BALANCE SHEET

AS OF SEPTEMBER 30, 2016 AND 2015

(In Dollars)

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

29 

2016 2015

Program Costs:

Administrative Law Judge $ 5,992,452 $ 6,018,077

Commission 6,177,434 6,203,850

Net Cost of Operations (Note 8) $ 12,169,886 $ 12,221,927

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDING SEPTEMBER 30, 2016 AND 2015

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

30 

2016 2015

Cumulative Results of Operations:

Beginning Balances $ (415,663) $ (439,138)

Budgetary Financing Sources:

Appropriations Used $ 11,646,240 $ 11,755,122

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 10) 472,706 490,280

Total Financing Sources 12,118,946 12,245,402

Net Cost of Operations (12,169,886) (12,221,927)

Net Change (50,940) 23,475

Cumulative Results of Operations $ (466,603) $ (415,663)

Unexpended Appropriations:

Beginning Balances $ 2,343,852 $ 2,598,920

Budgetary Financing Sources:

Appropriations Received $ 12,639,000 $ 11,639,000

Other Adjustments (334,063) (138,946)

Appropriations Used (11,646,240) (11,755,122)

Total Budgetary Financing Sources 658,697 (255,068)

Total Unexpended Appropriations $ 3,002,549 $ 2,343,852

Net Position $ 2,535,946 $ 1,928,189

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDING SEPTEMBER 30, 2016 AND 2015

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

31 

2016 2015

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 849,371 $ 828,647

Recoveries of Prior Year Unpaid Obligations 266,582 138,693

Other changes in unobligated balance (317,601) (136,958)

Unobligated balance from prior year budget authority, net 798,352 830,382

Appropriations 12,639,000 11,639,000

Total Budgetary Resources $ 13,437,352 $ 12,469,382

Status of Budgetary Resources:

New obligations and upward adjustments (total) (Note 11) $ 12,444,645 $ 11,620,011

Unobligated balance, end of year:

Unexpired unobligated balance, end of year (Note 2) 224,294 123,187

Expired unobligated balance, end of year (Note 2) 768,413 726,184

Unobligated balance, end of year (total) 992,707 849,371

Total Budgetary Resources $ 13,437,352 $ 12,469,382

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 1,909,526 $ 2,184,420

New obligations and upward adjustments (Note 11) 12,444,645 11,620,011

Outlays (gross) (11,598,994) (11,756,212)

Recoveries of Prior Year Unpaid Obligations (266,582) (138,693)

Unpaid Obligations, End of Year (gross) $ 2,488,595 $ 1,909,526

Budget Authority and Outlays, Net:

Budget authority, gross $ 12,639,000 $ 11,639,000

Actual offsetting collections (16,462) (1,988)

Recoveries of prior year paid obligations 16,462 1,988

Budget Authority, net, (total) $ 12,639,000 $ 11,639,000

Outlays, gross $ 11,598,994 $ 11,756,212

Actual offsetting collections (16,462) (1,988)

Agency outlays, net $ 11,582,532 $ 11,754,224

OCCUPATIONAL SAFETY & HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDING SEPTEMBER 30, 2016 AND 2015

(In Dollars)
32

U.S. OCCUPATIONAL SAFETY AND HEALTH REVIEW

COMMISSION

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES

A. Reporting Entity

The Occupational Safety and Health Review

Commission (The Review Commission) is an

independent, adjudicatory agency created by the 

Occupational Safety and Health Act (OSHA) of 

1970. Its sole statutory mandate is to serve as

an administrative court providing just and 

expeditious resolution of disputes involving 

OSHA, employers charged with violations of 

Federal safety and health standards, and 

employees and/or their representatives. The 

Review Commission was created by Congress as 

an agency completely independent of the U.S. 

Department of Labor (DOL) to ensure that 

OSHA’s enforcement actions are carried out in

accordance with the law and that all parties are

treated consistent with due process should a 

dispute arise.

The Review Commission reporting entity is

comprised of General Funds and General

Miscellaneous Receipts.

General Funds are accounts used to record

financial transactions arising under congressional 

appropriations or other authorizations to spend 

general revenues. 

General Fund Miscellaneous Receipts are

accounts established for receipts of nonrecurring activity, such as miscellaneous

receipts for services and benefits. 

The Review Commission receives custodial

collections and holds custodial receivables that

are non-entity assets and are transferred to

Treasury at fiscal year-end. 

The Review Commission has rights and

ownership of all assets reported in these financial

statements. The Review Commission does not 

possess any non-entity assets.

B. Basis of Presentation

The financial statements have been prepared to

report the financial position and results of

operations of the Review Commission. The

Balance Sheet presents the financial position

of the agency. The Statement of Net Cost

presents the agency’s operating results; the

Statement of Changes in Net Position displays

the changes in the agency’s equity accounts.

The Statement of Budgetary Resources

presents the sources, status, and uses of the

agency’s resources and follows the rules for

the Budget of the United States Government.

The statements are a requirement of the Chief

Financial Officers Act of 1990 and the

Government Management Reform Act of 

1994. They have been prepared from, and are

fully supported by, the books and records of

the Review Commission in accordance with

the hierarchy of accounting principles

generally accepted in the United States of

America, standards issued by the Federal

Accounting Standards Advisory Board

(FASAB), Office of Management and Budget

(OMB) Circular A-136, Financial Reporting

Requirements, as amended, and the Review

Commission’s accounting policies which are

summarized in this note. These statements,

with the exception of the Statement of

Budgetary Resources, are different from

financial management reports, which are also

prepared pursuant to OMB directives that are

used to monitor and control the Review

Commission’s use of budgetary resources.

The financial statements and associated notes

are presented on a comparative basis. Unless

specified otherwise, all amounts are presented

in dollars. 
33

C. Basis of Accounting

Transactions are recorded on both an accrual

accounting basis and a budgetary basis. Under

the accrual method, revenues are recognized

when earned, and expenses are recognized

when a liability is incurred, without regard to

receipt or payment of cash. Budgetary

accounting facilitates compliance with legal

requirements on the use of federal funds. 

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate

amount of the Review Commission’s funds

with Treasury in expenditure and receipt

fund accounts. Appropriated funds recorded

in expenditure accounts are available to pay 

current liabilities and finance authorized

purchases.

The Review Commission does not maintain

bank accounts of its own, has no disbursing

authority, and does not maintain cash held

outside of Treasury. Treasury disburses funds

for the agency on demand.

E. Accounts Receivable

Accounts receivable may consist of amounts

owed to the Review Commission by other

Federal agencies and the general public.

Amounts due from Federal agencies are

considered fully collectible. Accounts

receivable from the public include

reimbursements from employees. An

allowance for uncollectible accounts receivable 

from the public is established when, based 

upon a review of outstanding accounts and the 

failure of all collection efforts, management 

determines that collection is unlikely to occur 

considering the debtor’s ability to pay. 

F. Property, Equipment, and Software

Property, equipment and software represent

furniture, fixtures, equipment, and information

technology hardware and software which are

recorded at original acquisition cost and are

depreciated or amortized using the straight-line

method over their estimated useful lives.

Major alterations and renovations are

capitalized, while maintenance and repair costs

are expensed as incurred. The Review

Commission’s capitalization threshold is

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

for bulk purchases. Property and equipment

acquisitions that do not meet the capitalization

criteria are expensed upon receipt. Applicable

standard governmental guidelines regulate the

disposal and convertibility of agency property,

equipment, and software. The useful life

classifications for capitalized assets are as

follows: 

Description Useful Life (years)

Office Furniture 7 

Office Equipment 5 

G. Advances and Prepaid Charges

Advance payments are generally prohibited by

law. There are some exceptions, such as

reimbursable agreements, subscriptions and

payments to contractors and employees.

Payments made in advance of the receipt of

goods and services are recorded as advances or

prepaid charges at the time of prepayment and

recognized as expenses when the related goods

and services are received.

H. Liabilities

Liabilities represent the amount of funds likely

to be paid by the Review Commission as a

result of transactions or events that have

already occurred. 

The Review Commission reports its liabilities

under two categories, Intragovernmental and

With the Public. Intragovernmental liabilities

represent funds owed to another government

agency. Liabilities with the Public represent

funds owed to any entity or person that is not a

federal agency, including private sector firms

and federal employees. Each of these

categories may include liabilities that are

covered by budgetary resources and liabilities

not covered by budgetary resources. Liabilities

covered by budgetary resources are liabilities
34

funded by a current appropriation or other

funding source. These consist of accounts 

payable and accrued payroll and benefits.

Accounts payable represent amounts owed to

another entity for goods ordered and received

and for services rendered except for

employees. Accrued payroll and benefits

represent payroll costs earned by employees

during the fiscal year which are not paid until

the next fiscal year.

Liabilities not covered by budgetary resources

are liabilities that are not funded by any

current appropriation or other funding source.

These liabilities consist of accrued annual

leave and unemployment insurance.

I. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the

accrual is reduced as leave is taken. The

balance in the accrued leave account is adjusted

to reflect current pay rates. Liabilities

associated with other types of vested leave,

including compensatory, restored leave, and

sick leave in certain circumstances, are accrued

at year-end, based on latest pay rates and

unused hours of leave. Funding will be

obtained from future financing sources to the

extent that current or prior year appropriations

are not available to fund annual and other types

of vested leave earned but not taken. 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

employees effective at 100%.

J. Accrued and Actuarial Workers’

Compensation

The Federal Employees' Compensation Act

(FECA) administered by the DOL addresses

all claims brought by the Review Commission

employees for on-the-job injuries. The DOL

bills each agency annually as its claims are paid, 

but payment of these bills is deferred for two 

years to allow for funding through the budget 

process. Similarly, employees that the Review

Commission terminates without cause may 

receive unemployment compensation benefits

under the unemployment insurance program 

also administered by the DOL, which bills each

agency quarterly for paid claims. Future

appropriations will be used for the reimbursement 

to DOL. The liability consists of (1) the net

present value of estimated future payments 

calculated by the DOL and (2) the unreimbursed 

cost paid by DOL for compensation to

recipients under the FECA.

K. Retirement Plans

The Review Commission employees

participate in either the CSRS or the FERS.

The employees who participate in CSRS are

beneficiaries of the Review Commission

matching contribution, equal to seven percent

of pay, distributed to their annuity account in

the Civil Service Retirement and Disability

Fund. 

Prior to December 31, 1983, all employees

were covered under the CSRS program. From

January 1, 1984 through December 31, 1986,

employees had the option of remaining under

CSRS or joining FERS and Social Security.

Employees hired as of January 1, 1987 are

automatically covered by the FERS program.

Both CSRS and FERS employees may

participate in the federal Thrift Savings Plan

(TSP). FERS employees receive an automatic

agency contribution equal to one percent of

pay and the Review Commission matches any

employee contribution up to an additional four

percent of pay. For FERS participants, the

Review Commission also contributes the

employer’s matching share of Social Security. 

FERS employees and certain CSRS reinstatement

employees are eligible to participate in the 

Social Security program after retirement. In 

these instances, the Review Commission remits 

the employer’s share of the required

contribution. 
35

The Review Commission recognizes the

imputed cost of pension and other retirement

benefits during the employees’ active years of

service. OPM actuaries determine pension cost

factors by calculating the value of pension

benefits expected to be paid in the future and

communicate these factors to the Review

Commission for current period expense

reporting. OPM also provides information

regarding the full cost of health and life

insurance benefits. The Review Commission

recognized the offsetting revenue as imputed

financing sources to the extent these expenses

will be paid by OPM.

The Review Commission does not report on its

financial statements information pertaining to

the retirement plans covering its employees.

Reporting amounts such as plan assets,

accumulated plan benefits, and related

unfunded liabilities, if any, is the responsibility

of the OPM, as the administrator.

L. Other Post-Employment Benefits

The Review Commission employees eligible to

participate in the Federal Employees' Health

Benefits Plan (FEHBP) and the Federal

Employees' Group Life Insurance Program

(FEGLIP) may continue to participate in these

programs after their retirement. The OPM has

provided the Review Commission with certain

cost factors that estimate the true cost of

providing the post-retirement benefit to current

employees. The Review Commission recognizes 

a current cost for these and Other Retirement 

Benefits (ORB) at the time the employee's 

services are rendered. The ORB expense is 

financed by OPM, and offset by the Review

Commission through the recognition of an 

imputed financing source. 

M. Use of Estimates

The preparation of the accompanying financial

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts of 

assets, liabilities, revenues, and expenses. 

Actual results could differ from those estimates.

N. Imputed Costs/Financing Sources

Federal Government entities often receive

goods and services from other Federal

Government entities without reimbursing the

providing entity for all the related costs. In

addition, Federal Government entities also

incur costs that are paid in total or in part by

other entities. An imputed financing source is

recognized by the receiving entity for costs

that are paid by other entities. The Review

Commission recognized imputed costs and

financing sources in fiscal years 2016 and

2015 to the extent directed by accounting

standards.

O. Reclassification 

Certain fiscal year 2015 balances have been 

reclassified, retitled, or combined with other 

financial statement line items for consistency 

with the current year presentation.
36

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2016 and 2015 were as follows: 

2016 2015

Fund Balances:

Appropriated Funds $ 3,481,302 $ 2,758,897 

Total $ 3,481,302 $ 2,758,897 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 224,294 $ 123,187 

 Unavailable 768,413 726,184 

Obligated Balance Not Yet Disbursed 2,488,595 1,909,526 

Total $ 3,481,302 $ 2,758,897 

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

the Treasury accounts.

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

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

unavailable balance as described in the following paragraph. 

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

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

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

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

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

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

fund balance on hand (see Note 12).

NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2016 and 2015 were as follows:

2016 2015

With the Public

Accounts Receivable $ - $ 1,440

Total Accounts Receivable $ - $ 1,440

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, 2016 or 2015. 
37

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE

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

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

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

Total $ 308,165 $ 308,165 $ -

Schedule of Property, Equipment, and Software as September 30, 2015: 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 441,237 $ 436,987 $ 4,250

Total $ 441,237 $ 436,987 $ 4,250

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the Review Commission as of September 30, 2016 and 2015 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.

2016 2015

Intragovernmental – Unemployment Insurance $ - $ 7,476

Unfunded Leave 466,603 413,876

Total Liabilities Not Covered by Budgetary Resources $ 466,603 $ 421,352

Total Liabilities Covered by Budgetary Resources 478,753 415,046

Total Liabilities $ 945,356 $ 836,398

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.
38

NOTE 6. OTHER LIABILITIES

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

Current Total

Intragovernmental

Payroll Taxes Payable $ 64,941 $ 64,941

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

With the Public

 Payroll Taxes Payable $ 9,857 $ 9,857

 Accrued Funded Payroll and Leave 239,581 239,581

 Unfunded Leave 466,602 466,602

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

Other liabilities account balances as of September 30, 2015 were as follows:

Current Total

Intragovernmental

Unemployment Insurance Liability $ 7,476 $ 7,476

Payroll Taxes Payable 45,275 45,275

Total Intragovernmental Other Liabilities $ 52,751 $ 52,751

With the Public

 Payroll Taxes Payable $ 7,740 $ 7,740

 Accrued Funded Payroll and Leave 191,810 191,810

 Unfunded Leave 413,876 413,876

Total Public Other Liabilities $ 613,426 $ 613,426

NOTE 7. LEASES

Operating Leases

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

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

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

are listed below. 

Location Term Lease Expiration Date

Atlanta, GA 116 months 09/30/2023

Denver, CO 120 months 09/30/2018

Washington, DC 60 months 04/23/2023
39

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

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

Fiscal Year Building

2017 $ 1,528,438

2018 1,639,390

2019 1,654,731

2020 1,654,003

2021 1,670,819

Thereafter 2,720,420

Total Future Payments $ 10,867,802 

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

options. 

NOTE 8. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intragovernmental costs and revenue represent exchange transactions between the Review

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

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

2016 2015

Administrative Law Judge

 Intragovernmental Costs $ 1,993,177 $ 1,979,341

 Public Costs 3,999,275 4,038,736

 Net Program Costs 5,992,452 6,018,077

Commission

 Intragovernmental Costs $ 2,054,705 $ 2,040,442

 Public Costs 4,122,729 4,163,408

 Net Program Costs 6,177,434 6,203,850

Total Intragovernmental costs $ 4,047,882 $ 4,019,784

Total Public costs 8,122,004 8,202,144

Total Net Cost $ 12,169,886 $ 12,221,927

NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE

UNITED STATES GOVERNMENT 

The President’s Budget that will include fiscal year 2016 actual budgetary execution information has 

not yet been published. The President’s Budget is scheduled for publication in February 2017 and can 

be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2017 Budget of the United 

States Government, with the "Actual" column completed for 2015, has been reconciled to the 

Statement of Budgetary Resources and there were no material differences.
40

NOTE 10. IMPUTED FINANCING SOURCES

The Review Commission recognizes as imputed financing the amount of accrued pension and postretirement benefit expenses for current employees. The assets and liabilities associated with such 

benefits are the responsibility of the administering agency, OPM. For the years ended September 30, 

2016 and 2015, respectively, imputed financing was as follows: 

2016 2015

Office of Personnel Management $ 472,706 $ 490,280 

Total Imputed Financing Sources $ 472,706 $ 490,280 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2016 and 2015

consisted of the following: 

2016 2015

Direct Obligations, Category A $ 12,444,645 $ 11,620,011

Total Obligations Incurred $ 12,444,645 $ 11,620,011

Category A apportionments distribute budgetary resources by fiscal quarters.

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2016 and 2015, budgetary resources obligated for undelivered orders amounted to

$2,009,841 and $1,494,481 respectively.

NOTE 13. CUSTODIAL ACTIVITY

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

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

refunds. The type of cash collected primarily consists of Freedom of Information Act fees. While 

these collections are considered custodial, they are neither primary to the mission of the Review 

Commission nor material to the overall financial statements. The Review Commission's total 

custodial collections are $113 and $169 for the years ended September 30, 2016 and 2015, 

respectively.
41

NOTE 14. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET

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

available to its net cost of operations.

2016 2015

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $ 12,444,645 $ 11,620,011

Spending Authority From Offsetting Collections and Recoveries (283,044) (140,681)

Offsetting Receipts -

Net Obligations 12,161,601 11,479,330

Other Resources

Imputed Financing From Costs Absorbed By Others 472,706 490,280

Total Resources Used to Finance Activities 12,634,307 11,969,610

Resources Used to Finance Items Not Part of the Net Cost of Operations (521,397) 233,123

Total Resources Used to Finance the Net Cost of Operations 12,112,910 12,202,733

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

Generate Resources in the Current Period: 56,976 19,194

Net Cost of Operations $ 12,169,886 $ 12,221,927