The U.S. Merit Systems Protection Board 

Agency

Financial 

Report

 Fiscal Year 2023

November 2023
ii

Table of Contents 

Message from the Acting Chairman .........................................................................................1

How to Use This Report ...........................................................................................................2

Management Discussion and Analysis .....................................................................................3

About the Merit Systems Protection Board (MSPB) ..................................................................................3

The MSPB Mission...........................................................................................................................................3

Board Organization .........................................................................................................................................3

MSPB Program Offices and Their Functions .............................................................................................3

Organization Chart ..........................................................................................................................................5

Interim Summary of MPSB’s FY 2023 Program Performance .................................................................6

Analysis of Financial Statements....................................................................................................................8

Analysis of Systems, Controls, and Legal Compliances..............................................................................8

Forward-Looking Information ....................................................................................................................10

Financial Section ......................................................................................................................11

Message from the Chief Financial Officer..................................................................................................11

Notes on the Financial Statements..............................................................................................................12

Other Information ................................................................................................................... 13

Summary of Financial Statement Audit and Management Assurances..................................................13

Civil Monetary Penalties Adjustments for Inflation..................................................................................14

Independent Auditor’s Report on the Financial Statements

Financial Statements
2 

Message from the Acting Chairman 

U.S. MERIT SYSTEMS PROTECTION BOARD 

Washington, DC 20419 

Office of the Acting Chairman 

As the Acting Chairman of the U.S. Merit Systems Protection Board (MSPB), I have the privilege to present the fiscal 

year (FY) 2023 Agency Financial Report (AFR) for the agency. The AFR presents MSPB’s priorities, highlights our 

accomplishments, and identifies the challenges we navigated through the fiscal year. We are committed to promoting 

accountability, good stewardship, and financial integrity of taxpayers’ dollars. 

MSPB’s FY 2023 financial statements were reviewed by independent auditors, and I am pleased to report that MSPB 

has attained an unmodified (clean) opinion on its consolidated financial statements. I certify, with reasonable assurance 

of the completeness and reliability of the performance and financial data in this report, that no material weaknesses 

were found in MSPB’s internal controls during the audit of our financial statements. 

The agency’s accomplishments provided in this report are the results of our collective commitment to maintaining the 

highest standards of performance and integrity. It is an honor to work with the talented men and women of MSPB who 

devote their careers to upholding the merit system principles that govern our federal workforce. 

The AFR is available on our website at www.mspb.gov. 

 

Respectfully, 

 

Cathy A. Harris

 Vice Chairman & Acting Chairman 

 November 15, 2023
2

How to Use This Report

The Agency Financial Report (AFR) presents financial information, as well as relevant performance 

information, on the U.S. Merit Systems Protection Board’s operations. The report was prepared in 

accordance with Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, 

and covers activities from October 1, 2022, through September 30, 2023. 

MSPB has chosen to produce an AFR and an Annual Performance Report (APR). MSPB will submit its 

FY 2023 APR with its Congressional Budget Justification and post it on the agency’s website at 

http://www.mspb.gov when the President’s FY 2025 Budget is submitted to Congress in 2024. 

This report is organized into the following major components: 

Management Discussion and Analysis (MD&A)

This section provides an overview of MSPB. It discusses the agency’s mission, Board organization, program 

offices and their functions, and organization chart. Additionally, this section contains an overview of the 

performance information contained in the Interim FY 2023 Performance Results. It also includes relevant 

performance information related to the MSPB’s strategic and management objectives. 

Analysis of Financial Statements 

This section provides a summary of MSPB’s financial position and factors affecting financial performance. 

Analysis of Systems, Controls, and Legal Compliances 

This section provides an overview of MSPB’s management commitment to excellence and the importance of 

strong financial systems and internal controls to ensure accountability, integrity, and reliability. Management, 

administrative, and financial system controls have been developed to ensure the following: 

• Obligations and costs are in compliance with applicable laws.

• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or 

misappropriation. 

• Expenditures applicable to operations are properly recorded and accounted for to permit the preparation 

of reliable accounting, financial, and statistical reports. 

• Accountability over assets is maintained.

Forward-Looking Information

This section addresses future conditions that could significantly affect MSPB’s future financial position and 

operating performance. 

Financial Section

This section contains details of MSPB’s financial position in FY 2023 including a message from the Chief 

Financial Officer (CFO) followed by the notes on the financial statements, independent auditor’s report on 

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

Other Information Section

This section contains details of MSPB’s financial statement audit and management assurances including 

material weaknesses, compliances, and civil monetary penalties adjustments.
3

Management Discussion and Analysis (MD&A)

About MSPB

MSPB has its origin in the Pendleton Civil Service Reform Act of 1883 (Pendleton Act), which established 

the Civil Service Commission (CSC) and a merit-based employment system for the Federal Government. The 

Pendleton Act was passed after the assassination of President Garfield by a disgruntled Federal job seeker and 

grew out of the 19th century reform movement to curtail the excesses of political patronage in government 

and ensure a stable highly qualified workforce to serve the public. Over time, it became clear that the CSC 

could not properly, adequately, and simultaneously set managerial policy, protect the merit systems, and 

adjudicate appeals. Concern over the inherent conflict of interest in the CSC’s role as both rule-maker and 

judge was a principal motivating factor behind the passage of the Civil Service Reform Act of 1978 (CSRA). 

The CSRA replaced the CSC with three new agencies: MSPB as the successor to the Commission;1 the 

Office of Personnel Management (OPM) to serve as the President’s agent for Federal workforce management 

policy and procedure; and the Federal Labor Relations Authority (FLRA) to oversee Federal labormanagement relations. The CSRA also codified for the first time the values of the merit systems as the Merit 

System Principles (MSPs) and defined the Prohibited Personnel Practices (PPPs).2

The MSPB Mission

The mission of the MSPB is to protect the Federal merit systems and the rights of individuals within those systems. MSPB 

carries out its statutory responsibilities and authorities primarily by adjudicating individual employee appeals, 

enforcing its decisions, conducting objective merit systems studies, and reviewing the rules, regulations, and 

significant actions of OPM to assess the degree to which those actions support adherence to the merit 

principles and do not lead to the commission of PPP’s.

Board Organization

The agency has three appointed Board members and was authorized 235 Full-time Equivalents (FTE) with 

offices in Washington, D.C., (headquarters) and six regional and two field offices that are located throughout 

the United States. 

MSPB Program Offices and Their Functions

The three Board Members adjudicate the cases brought to MSPB. The bipartisan Board consists of the 

Chairman, Vice Chairman, and Member, with no more than two of its three members from the same political 

party. Board members are nominated by the President, confirmed by the Senate, and serve overlapping, nonrenewable 7-year terms. The Chairman, by statute, is the chief executive and administrative officer of MSPB. 

The Office Directors report to the Chairman through the Executive Director. 

The Office of the Administrative Law Judge (ALJ) adjudicates and issues initial decisions in corrective and 

disciplinary action complaints (including Hatch Act complaints) brought by the Special Counsel, proposed 

agency actions against ALJs, MSPB employee appeals, and other cases assigned by MSPB. The functions of 

1 Bogdanow, M., and Lanphear, T., History of the Merit Systems Protection Board, Journal of the Federal Circuit Historical Society, Volume 4, 2010.

2 Title 5 U.S.C. § 2301 and Title 5 U.S.C. § 2302, respectively.
4

this office are currently performed by ALJs at the U. S. Coast Guard and Federal Trade Commission under 

reimbursable interagency agreements.

The Office of Appeals Counsel conducts legal research and prepares proposed decisions for the Board in 

cases where a party petitions for review (PFR) of an administrative judge’s (AJ) initial decision and in most 

other cases decided by the Board. The office prepares proposed decisions on interlocutory appeals of rulings 

made by judges, makes recommendations on reopening cases on the Board’s own motion, and provides 

research, policy memoranda, and advice to the Board on legal issues.

The Office of the Clerk of the Board receives, and processes cases filed at MSPB headquarters (HQ), rules 

on certain procedural matters, and issues MSPB decisions and orders. The office serves as MSPB’s public 

information center, coordinates media relations, produces public information publications, operates MSPB’s 

library and on-line information services, and administers the Freedom of Information Act and Privacy Act 

programs. The office also certifies official records to the courts and Federal administrative agencies and 

manages MSPB’s records systems, legal research systems, and the Government in the Sunshine Act program.

The Office of Equal Employment Opportunity plans, implements, and evaluates MSPB’s equal 

employment opportunity programs. It processes complaints of alleged discrimination brought by agency 

employees and provides advice and assistance on affirmative employment initiatives to MSPB’s managers and 

supervisors.

The Office of Financial and Administrative Management administers the budget, accounting, travel, time 

and attendance, human resources, procurement, property management, physical security, and general services 

functions of MSPB. It develops and coordinates internal management programs, including review of agency 

internal controls. It also administers the agency’s cross-servicing agreements with the U.S. Department of 

Agriculture, National Finance Center (NFC) for payroll services, U.S. Department of the Treasury, Bureau of 

Fiscal Service (BFS) for accounting services, and U.S. Department of Agriculture, Animal and Plant Health 

Inspection Service (APHIS) for human resources management services.

The Office of the General Counsel, as legal counsel to MSPB, advises the Board and MSPB offices on a 

wide range of legal matters arising from day-to-day operations. The office represents MSPB in litigation;

prepares proposed decisions for the Board to enforce a final MSPB decision or order, in response to requests 

to review OPM regulations, and for other assigned cases; conducts the agency’s PFR settlement program; and 

coordinates the agency’s legislative policy and congressional relations functions. The office drafts regulations, 

conducts MSPB’s ethics program, and plans and directs audits and investigations.

The Office of Information Resources Management develops, implements, and maintains MSPB’s 

automated information systems to help the agency manage its caseload efficiently and carry out its 

administrative and research responsibilities.

The Office of Policy and Evaluation carries out MSPB’s statutory responsibility to conduct special studies 

of the civil service and other Federal merit systems. Reports of these studies are sent to the President and the 

Congress and are distributed to a national audience. The office provides information and advice to Federal 

agencies on issues that have been the subject of MSPB studies. The office reviews and reports on the 

significant actions of OPM. The office also conducts program evaluations for the agency and has 

responsibility for preparing MSPB’s strategic and performance plans and performance reports required by the 

Government Performance and Results Act Modernization Act of 2010.
5

The Office of Regional Operations oversees the agency’s six regional and two field offices, which receive

and process appeals and related cases. It also manages MSPB’s Mediation Appeals Program (MAP). AJs in 

the regional and field offices are responsible for adjudicating assigned cases and for issuing fair, well-reasoned, 

and timely initial decisions.

Organization Chart

CHAIRMAN MEMBER

General Counsel

Equal

Employment

Opportunity

Clerk of the 

Board

Administrative 

Law Judge Regional 

Operations

Appeals Counsel Policy and 

Evaluation

Regional Offices 

Atlanta, Chicago,

Dallas,

Philadelphia,

Oakland, and

Washington, DC 

VICE CHAIRMAN

Field Offices 

Denver and

New York

Financial and

Administrative 

Management

Information

Resources 

Management

Executive 

Director

U.S. Merit Systems Protection Board

Performance

Improvement

Officer

Human Resources Management services are provided by the U.S. Department of Agriculture’s (USDA), Animal and Plant 

Health Inspection Service (APHIS) Business Services.

Payroll services are provided by USDA, National Finance Center. 

Accounting services are provided by the Department of the Treasury, Bureau of the Fiscal Service (BFS).

The functions of the Administrative Law Judge (ALJ) are performed by ALJs employed by the Federal Trade Commission 

(FTC) and the U.S. Coast Guard under reimbursable interagency agreements.
6

Interim Summary of MSPB’s FY 2023 Program Performance

This performance summary contains interim FY 2023 performance results and initial judgements related to 

the achievement of our strategic and management objectives. This information is organized to align with the 

Annual Performance Plan for FY 2023. The Merit Systems Protection Board (MSPB) is continuing to verify 

and validate FY 2023 performance and finalizing the definitions of new Performance Goal (PG) statements 

and measures to be effective in FY 2023. Once final results and new measures are reviewed and approved by 

the Board members, they will be published in the FY 2023 Annual Performance Report (APR) scheduled for 

release in February 2024.

Strategic Objective 1A-RO: Provide understandable, high-quality resolution of initial appeals in the 

regional and field offices (RO/FOs), supported by fair and efficient adjudication and alternative 

dispute resolution (ADR) processes.

Interim results indicate this objective was Exceeded. MSPB exceeded the target for timeliness of initial 

appeals processing with an average of 103 days, more than 10% fewer days than the target. In addition, 86% 

of reviewed initial decisions met the Quality Review Team (QRT) standards. The QRT includes rotating 

members who review a sample of initial decisions (IDs) to determine, among other things, whether the IDs 

were well organized and readable, and considered and analyzed material legal and factual issues, controlling 

case law, and statutory and regulatory authorities. This measure focuses on all IDs, not just those for which a 

PFR is filed. The PG statement for ADR is to ensure use of ADR processes, and the measure is the 

percentage of appeals referred to the Mediation Appeals Program (MAP). For FY 2023, 10% of IDs were 

referred to mediation, exceeding the objective.

Strategic Objective 1A-HQ: Provide understandable, high-quality resolution of appeals at 

headquarters (HQ), supported by fair and efficient adjudication and alternative dispute resolution 

(ADR) processes.

Interim results indicate this objective was Exceeded. The PG for quality of Board decisions involves actions 

taken by the Court of Appeals for the Federal Circuit (CAFC) on all MSPB decisions filed with the Court. 

MSPB decisions filed with the Court may include decisions issued by HQ or initial appeals decisions issued in 

the RO/FOs. Because this measure includes HQ decisions, it is considered an HQ case processing PG. A 

new measure for quality of Board decisions, implemented in FY 2023, is defined as the percentage of cases 

affirmed of the cases decided by CAFC on the merits of the Board’s decision. This is a change from the prior 

measure (cases left unchanged by the CAFC) and is intended to focus on a more precise affirmance rate. 

(Note that the prior year results are for the previous measure of cases left unchanged by the CAFC.) The FY 

2023 target for this measure was 82% or higher of Board cases affirmed by the CAFC. The FY 2023 result 

was 87% of Board cases affirmed by the CAFC.

Given the unique circumstances of the 5-year loss of a quorum, average processing time will not be

meaningful in the short term and will not be a useful indicator for managing the process of reducing the

unprecedented inventory of pending cases the new Board inherited. In its place, MSPB adopted new PGs and 

measures to track reduction of the inventory of cases at HQ. These two new measures are the total number

of HQ cases decided during the year and the percentage of oldest cases (as identified at the beginning of the

FY) decided by the end of the FY. These two PGs, in combination, reflect the Board’s desire to reduce the

overall inventory with a focus on closing older cases. MSPB exceeded the numeric target of 1,000 or more for

cases decided at HQ with a total of 1,499 cases closed and exceeded the goal of issuing decisions in 75% of
7

the oldest 1,000 cases (as identified at the beginning of the FY), by closing 907 of the oldest 1,000 cases

(121%).

Strategic Objective 1B: Enforce timely compliance with MSPB decisions.

Interim results indicate this objective was Exceeded. MSPB surpassed the goal related to average processing 

time for compliance case addenda in the RO/FOs, with an average processing time of 93 days, more than 

10% less than the target of 120 days. MSPB also assessed the HQ compliance case processing measure and 

determined that this measure should be deleted because the timing of many aspects of the process are outside 

the control of MSPB. Therefore, it was not rated in FY 2023.

Strategic Objective 1C: Conduct objective, timely studies of the Federal merit systems and Federal 

human capital management issues.

Interim results indicate this measure was Met. MSPB achieved the newsletter target by publishing 3 Issues of 

Merit (IoM) editions covering 7 MSPs and all 14 PPPs. Newsletter topics included preventing PPPs, patterns 

in perceptions of PPPs, sexual harassment in Federal workplaces, the effects of pressure to act unethically on 

employee engagement, supporting the human resources (HR) workforce, applicant assessments, using shared 

certificates, reference checking, hiring and managing students and recent graduates, hiring tech workers, 

developing job announcements, and performance appraisals. MSPB met the publication goal by publishing

two reports Sexual Harassment in Federal Workplaces: Understanding and Addressing the Problem and Perceptions of 

Prohibited Personnel Practices: An Update, and one research brief Sexual Harassment in Federal Workplaces: 2021 

Update. MSPB achieved the survey target by administering the Federal HR Workforce Survey from March 

through May 2023.

Strategic Objective 1D: Review and act upon the rules, regulations, and significant actions of the 

Office of Personnel Management (OPM), as appropriate. 

Interim results indicate that this objective was Met. Information regarding requests to review OPM 

regulations and a review of OPM significant actions were included in the Annual Report for FY 2022.

Strategic Objective 2A: Support and improve the practice of merit, adherence to MSPs, and 

prevention of PPPs in the workplace through successful, targeted outreach and engagement. 

Interim results indicate that this objective was Exceeded. MSPB conducted 129 outreach events or over 40% 

more than the targeted value of 90 events or more. Outreach events were conducted on topics such as merit 

systems and merit-based management; Federal disciplinary policies; MSPB regulations, procedures, results, 

and legal precedent; and results of merit systems studies. Events were conducted with Federal executive 

branch departments or agencies, Federal court organizations, affinity groups, a variety of legal groups (e.g., 

bar and other attorney associations, national institutes, law schools), and major legal and research conferences.

Strategic Objective 2B: Advance the understanding of merit, MSPs, and PPPs for stakeholders and 

the public by developing and sharing information and educational materials and guidance. 

Interim results indicate this objective was Met. MSPB achieved the FY 2023 target for publishing 6 or more 

informational or educational documents. Documents included 2 study reports, 1 research brief, and 3 Issues of 

Merit newsletters. Notable citations included a Government Accountability Office report, VA Equal 

Employment Opportunity: Increased Attention Needed to Improve Program Effectiveness that referenced MSPB’s 2023 

report, Prohibited Personnel Practices: An Update.
8

Management Objective M1: Lead, manage, and develop employees to ensure a highly qualified, 

diverse, inclusive, and engaged workforce with the competencies to perform MSPB’s mission and 

support functions successfully. 

Interim results indicate this objective was Not Yet Rated. Engagement level (based on the Federal Employee 

Viewpoint Survey results) is 71%, which is slightly above the target of 70% or higher. Due to resource, 

workload, and IT considerations, MSPB conducted an abbreviated internal survey early in FY 2024 to obtain 

the diversity and inclusion measures. Therefore, M1 will be more fully assessed once the survey results have 

been analyzed and summarized. These results will be included in the FY 2023 APR. 

Management Objective M2: Modernize information technology (IT) to support agency mission 

and administrative functions. 

Interim results indicate this objective was Not Yet Rated. While MSPB substantially completed the new eAppeal system by the end of FY 2023, the actual go-live date was October 16, 2023. However, the other IT 

modernization goals were met as MSPB has replaced 100% of legacy infrastructure and technology with 

cloud-based solutions and scanned 100% of assets to meet cybersecurity goals. As noted previously, MSPB 

conducted an abbreviated internal survey early in FY 2024 to obtain the IRM customer service measures. 

Therefore, measures of IT systems’ reliability and internal customer service will be available once the survey 

results have been analyzed and summarized. These results will be included in the FY 2023 APR. 

Analysis of Financial Statements 

Summary of Financial Position 

There were no significant financial changes from FY 2022 to FY 2023. MSPB receives an annual 

appropriation to support its statutory mission to fairly adjudicate Federal employee appeals, prepare and issue 

studies concerning the civil service, as well as review significant actions of OPM. No supplemental 

appropriations were provided, and no unusual financial issues arose during the reporting period. 

The financial statements are prepared to report the financial position, financial condition, and results of 

operations, consistent with the requirements of 31 U.S.C. § 3515(b). The statements are prepared from 

records of Federal entities in accordance with Federal generally accepted accounting principles (GAAP) and 

the formats prescribed by OMB. Reports used to monitor and control budgetary resources are prepared 

from the same records. Users of the statements are advised that the statements are for a component of the 

U.S. Government. 

Analysis of Systems, Controls, and Legal Compliances

Federal Managers’ Financial Integrity Act (FMFIA) of 1982

In accordance with the FMFIA, MSPB has established an internal management control system to ensure

that: (1) obligations and costs comply with applicable law; (2) assets are safeguarded against waste, loss,

unauthorized use, or misappropriation; (3) revenues and expenditures are properly recorded and accounted; 

and (4) expenditures are made in accordance with the mission and are achieving their intended results.

Federal Financial Management Improvement Act (FFMIA) of 1996
9

The purpose of the FFMIA is to advance Federal financial management by ensuring that Federal financial

management systems provide accurate, reliable, and timely financial management information to the

government’s managers. The intent and the requirements of this Act go well beyond the directives of the

CFO Act and the Government Management Reform Act of 1994 (GMRA) to publish audited financial

reports.

MSPB’s management review of the system of internal accounting and administrative control was evaluated in

accordance with the applicable Federal guidance. 

The objectives of the system are to provide reasonable assurance that:

• Obligations and costs are in compliance with applicable laws.

• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or

misappropriation.

• Revenues and expenditures applicable to operations are properly recorded and accounted for to 

permit the preparation of reliable accounting, financial, and statistical reports.

• Accountability over assets is maintained.

The evaluation of management controls extends to responsibility and activity and is applicable to

financial, administrative, and operational controls. Furthermore, the concept of reasonable assurance

recognizes that: (1) the cost of management controls should not exceed the projected derived benefits; and

(2) the benefits consist of reductions in the risks of failing to achieve the stated objectives. The expected

benefits and related costs of control procedures should be addressed using estimates and managerial

judgment. Moreover, errors and irregularities may occur and not be detected because of inherent limitations

in any system of internal accounting and administrative control, including those limitations resulting from

resource constraints, restrictions, and other factors. Finally, projection of any evaluation of the system to

future periods are subject to risk that the procedures may be inadequate because of changes in conditions or

that the degree of compliance with the procedures may deteriorate.

Improper Payments Act

Improved financial performance through the reduction of improper payments continues to be a key financial

management focus of the Federal government. Accurate payments lower program costs. MSPB did not have 

any improper payments during this reporting period.

OMB originally provided Section 31 of Circular A-11 as guidance for Federal agencies to identify and reduce

improper payments for selected programs. The Improper Payments Information Act of 2002 (IPIA)

broadened the original erroneous payment reporting requirements to programs and activities beyond those

originally listed in Circular A-11. In August 2006, OMB issued Circular A-123, Appendix C - Requirements

for Effective Measurement and Remediation of Improper Payments.

The IPIA defines improper payments as those payments made to the wrong recipient, in the wrong amount,

or used in an improper manner by the recipient. The IPIA requires a Federal agency to identify its programs

that are of high risk for improper payments. It also requires the agency to implement a corrective action plan

that includes improper payment reduction and recovery targets and to report annually on the extent of its

improper payments for high-risk programs and the actions taken to increase the accuracy of payments.
10

To coordinate and facilitate MSPB’s efforts under the IPIA, the CFO works with office directors to perform 

reviews for all programs and activities susceptible to improper payments. This cooperative effort includes 

developing actions to reduce improper payments, identifying and conducting ongoing monitoring techniques 

and establishing appropriate corrective action initiatives. MSPB has determined that there is no significant 

risk of improper payments based on the review of its programs in FY 2023.

Forward-Looking Information

Fiscal year 2023 was a very productive year for MSPB. Approximately 50% of the inherited inventory was 

adjudicated. However, this success comes with significant tradeoffs which are further exacerbated by 

anticipated budget reductions. For example, adjudication personnel have been detailed between offices 

specifically to focus on the inherited inventory. In order for MSPB to accomplish our statutory mission, 

budgetary resources to support 236 full-time equivalent employees are required. Currently, MSPB is holding 

staffing levels at 190 FTEs (or a shortfall of 19%) based upon projected funding levels in FY 2024. Reduced 

funding significantly limits our ability to meet our mission since we cannot backfill existing critical vacancies 

across the agency. Overall, the anticipated budgetary constraints and limited staffing will impose negative 

consequences on the Federal workforce that we serve. Not only in adjudication and research studies, but also 

the constraints are impeding MSPB’s ability to inform and educate the Federal workforce on merit principles

and prohibited personnel practices. 
Financial Section

Message from the Chief Financial Officer

It is my honor to join Cathy Harris, Acting Chairman, in presenting the U.S. Merit Systems 

Protection Board’s (MSPB) financial statements for Fiscal Year (FY) 2023, which is an 

integral part of our Agency Financial Report (AFR). The AFR represents MSPB’s statement 

of accountability to the President of the United States, Congress, and to the American 

people. 

MSPB has attained an unmodified (clean) opinion on its FY 2023 consolidated financial 

statements. As in previous fiscal years, no material weaknesses were identified in the 

auditor’s report on internal controls; nor were there any material instances of noncompliance 

with laws and regulations. MSPB’s dedicated workforce, and effective financial systems and 

processes are paramount to this accomplishment. 

Since 1992, MSPB has partnered with the Department of the Treasury, Bureau of the Fiscal 

Service (BFS) in Parkersburg, West Virigina to facilitate the Agency’s compliance with all 

external reporting requirements. BFS continues to provide MSPB with timely and complete 

reports allowing us to identify and resolve potential concerns quickly. 

This achievement is a culmination of the dedicated and meticulous efforts of our MSPB 

employees and BFS partners who collaborate to support the mission of MSPB – to protect 

the Federal merit systems and the rights of individuals within those systems. I sincerely 

thank MSPB and BFS personnel for their dedication to excellence. 

 Respectfully,

 

 Kevin J. Nash

 Chief Financial Officer 

November 15, 2023 
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Notes on the Financial Statements

Financial management is a high priority for MSPB. It is an essential element in demonstrating accountability 

and enhancing services provided to the public. Financial improvements initiated by MSPB have been driven 

by recent legislation and external initiatives; as well as by a strict organizational belief that adherence to sound 

financial policies and procedures will directly enhance the efficiency and effectiveness of the agency. This is 

of particular importance in an era of financial uncertainty and tightening budgets. Pivotal to driving better 

performance results through enhanced financial management practices has been MSPB’s ongoing efforts to 

provide day-to-day decision-makers with reliable budgetary and cost information.

Limitations of the Principal Financial Statements

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

operations of this entity, pursuant to the requirements of 31 U.S.C. 3515 (b). While the statements have been 

prepared from the books and records of the entity in accordance with generally accepted accounting 

principles (GAAP) for Federal entities and the 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. The statements should be read with the realization that MSPB is a component of the U.S. 

Government, a sovereign entity. 

The principal financial statements summarize MSPB’s financial position, net cost of operations, and changes 

in net position, provide information on budgetary resources and financing, and present the sources and 

disposition of custodial revenues for FY 2022 and FY 2023. 

The Balance Sheet summarizes the assets, liabilities, and net position by category as of the reporting date.

Intragovernmental assets and liabilities resulting from transactions between Federal agencies are presented 

separately from assets and liabilities from transactions with the public. 

The Statement of Net Cost shows, by programs, the net cost of operations for the reporting period. Net cost 

of operations consists of full program costs incurred by the agency less exchange revenues earned by those 

programs.

The Statement of Changes in Net Position presents the agency’s beginning and ending net position by two 

components—Cumulative Results of Operations and Unexpended Appropriations. It summarizes the 

change in net position by major transaction category. The ending balances of both components of the net 

position are also reported on the Consolidated Balance Sheet.

The Statement of Budgetary Resources presents the budgetary resources available to the agency, the status of 

these resources, and the outlays of budgetary resources.

The Notes to the Financial Statements provides information to explain the basis of the accounting and 

presentation used to prepare the statements and to explain specific items in the statements. They also provide 

information to support how particular accounts have been valued and computed.
13

Other Information

Summary of Financial Statement Audit and Management Assurances

Presented below is a summary of financial statement audit and management assurances for FY 2023. Table 1

relates to the agency’s FY 2023 financial statement audit, which resulted in an unmodified opinion with no 

material weakness. Table 2 presents the number of material weaknesses reported by the Agency under 

Section 2 of the FMFIA—either with regard to internal controls over operations or financial reporting—and 

Section 4, which relates to internal controls over financial management systems, as well as the Agency’s 

compliance with the FFMIA.

Table 1. Summary of Financial Statement Audit

• Audit Opinion • Unmodified 

• Restatement • No

Material Weakness Beginning Balance New Resolved Consolidated Ending Balance

Total Material Weaknesses 0 0 0 0 0

Table 2. Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance: Unmodified

Material Weakness Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance: Unmodified

Material Weakness Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Compliance with Federal Financial Management System Requirements (FMFIA § 4)

Statement of Assurance: Systems conform with financial management system requirements

Material Weakness Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA)

Agency Auditor

1. System Requirements No lack of compliance noted No lack of compliance noted

2. Accounting Standards No lack of compliance noted No lack of compliance noted

3. USSGL at Transaction Level No lack of compliance noted No lack of compliance noted
14

Civil Monetary Penalties Adjustments for Inflation

The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection 

Improvement Act of 1996, required agencies to adjust their civil monetary penalties (CMP) for inflation at 

least every four years to maintain their deterrent effect. A CMP is defined as ‘‘any penalty, fine, or other 

sanction’’ that: (1) ‘‘is for a specific amount’’ or ‘‘has a maximum amount’’ under Federal law; and (2) that a 

Federal agency assesses or enforces ‘‘pursuant to an administrative proceeding or a civil action in the Federal 

courts.’’ 

On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 

further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 to improve the effectiveness of 

CMPs and to maintain their deterrent effect. This amendment required agencies to adjust the CMP levels in 

effect as of November 2, 2015, with initial catch-up adjustments for inflation through an interim final 

rulemaking published by July 1, 2016, and to take effect no later than August 1, 2016. The maximum amount 

for an initial catch-up adjustment for inflation could not exceed 150 percent of the amount of that CMP on 

the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 

(November 2, 2015). 

The 2015 Amendments also provide for agencies to adjust inflation to their CMP amounts by January 15, 

2017, and not later than January 15 of each year thereafter. Accordingly, MSPB had adjusted for inflation to 

CMP. MSPB published its latest adjustments for inflation to CMPs (88 FR 4079-4080, Civil Monetary 

Penalty Inflation Adjustment) in the Federal Register on January 24, 2023, pages 4079-4080, and which is also 

available on the agency website at www.mspb.gov.

The following table provides detailed information on each of the agency’s CMPs as of January 24, 2023.

Statutory Authority

Penalty 

(Name or Description)

Year 

Enacted

Latest Year 

of 

Adjustment 

(via Statute 

or 

Regulation)

Current 

Penalty 

Level

Location for Penalty 

Update Details

5 U.S.C § 1215(a)(3), 

Civil Service Reform 

Act of 1978 (CSRA) Disciplinary Action 1989 2023 $1,288

Federal Register 88

(Jan. 2023): 4079-

4080 www.mspb.gov

5 U.S.C § 7326, Hatch 

Act Modernization Act 

of 2012 Penalties 2012 2023 $1,288

Federal Register 87

(Jan. 2023): 4079-

4080 www.mspb.gov
15

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U.S. MERIT SYSTEMS PROTECTION BOARD

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2023 AND 2022

Prepared By

Brown & Company CPAs and Management Consultants, PLLC

November 13, 2023
U.S. MERIT SYSTEMS PROTECTION BOARD

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2023 AND 2022

TABLE OF CONTENTS

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

BALANCE SHEET ................................................................................................................ 6

STATEMENT OF NET COST .............................................................................................. 7

STATEMENT OF CHANGES IN NET POSITION.............................................................. 8

STATEMENT OF BUDGETARY RESOURCES................................................................. 9

NOTES TO THE FINANCIAL STATEMENTS................................................................... 10
1

INDEPENDENT AUDITOR’S REPORT 

U.S. Merit Systems Protection Board 

Washington, D.C.

In our audits of the fiscal years 2023 and 2022 financial statements of the U.S. Merit Systems Protection 

Board (MSPB), we found:

• MSPB’s financial statements as of and for the fiscal years ended September 30, 2023, and 

2022, are presented fairly, in all material respects, in accordance with United States of America 

(U.S.) generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting based on the limited 

procedures we performed; and 

• no reportable noncompliance with provisions of applicable laws, regulations, contracts, and 

grant agreements for fiscal year 2023. 

The following sections discuss in more detail (1) our report on the financial statements, which includes 

required supplementary information (RSI)1and other information included with the financial statements2; 

(2) our report on internal control over financial reporting; (3) our report on compliance with laws, 

regulations, contracts, and grant agreements.

Report on the Financial Statements

Opinion

In accordance with the provisions of the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No. 

107-289), we have audited MSPB’s financial statements. MSPB’s financial statements comprise the 

balance sheets as of September 30, 2023, and 2022; the related statements of net cost, changes in net 

position, and budgetary resources for the fiscal years then ended; and the related notes to the financial 

statements. In our opinion, MSPB’s financial statements present fairly, in all material respects, MSPB’s 

financial position as of September 30, 2023, and 2022, and its net costs of operations, changes in net 

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

accepted accounting principles. 

Basis for Opinion

We conducted our audits in accordance with U.S. generally accepted government auditing standards. Our 

responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit 

of the Financial Statements section of our report. We are required to be independent of MSPB and to meet 

1 The RSI consists of “Management’s Discussion and Analysis” and the “Statement of Budgetary Resources”, which are included 

with the financial statements.

2 Other information consists of information included with the financial statements, other than the RSI, Financial section, and the 

auditor’s report.
2

our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. 

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

audit opinion.

Responsibility of Management for the Financial Statements

MSPB management is responsible for (1) the preparation and fair presentation of these financial statements 

in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and presenting 

the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing and presenting 

other information included in MSPB’s Agency Financial Report (AFR), and ensuring the consistency of 

that information with the audited financial statements and the RSI; and (4) designing, implementing, and 

maintaining effective internal control relevant to the preparation and fair presentation of financial 

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

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 

opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not 

a guarantee that an audit of the financial statements conducted in accordance with U.S. generally accepted 

government auditing standards will always detect a material misstatement or a material weakness when it 

exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 

override of internal control. Misstatements, including omissions, are considered to be material if there is a 

substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements.

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

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to 

fraud or error, and design and perform audit procedures responsive to those risks. Such procedures 

include examining, on a test basis, evidence regarding the amounts and disclosures in the financial 

statements in order to obtain audit evidence that is sufficient and appropriate to provide a basis for 

our opinion.

• Obtain an understanding of internal control relevant to our audit of the financial statements in order 

to design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of MSPB’s internal control over financial reporting. 

Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements.

• Perform other procedures we consider necessary in the circumstances.

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

planned scope and timing of the audit, significant audit findings, and certain internal control–related matters 

that we identified during the financial statement audit.
3

Required Supplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements. Such information is the 

responsibility of management and, although not a part of the financial statements, is required by FASAB, 

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

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

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

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

consistency with management’s responses to the auditor’s inquiries, the financial statements, and other 

knowledge we obtained during the audit of the financial statements, in order to report omissions or material 

departures from FASAB guidelines, if any, identified by these limited procedures. We did not audit and we 

do not express an opinion or provide any assurance on the RSI because the limited procedures we applied 

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

Other Information

MSPB’s other information contains a wide range of information, some of which is not directly related to 

the financial statements. This information is presented for purposes of additional analysis and is not a 

required part of the financial statements or the RSI. Management is responsible for the other information 

included in MSPB’s AFR. The other information comprises a detailed statement of management assurances 

and other information as applicable but does not include the financial statements and our auditor’s report 

thereon. Our opinion on the financial statements does not cover the other information, and we do not express 

an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information 

and consider whether a material inconsistency exists between the other information and the financial 

statements, or the other information otherwise appears to be materially misstated. If, based on the work 

performed, we conclude that an uncorrected material misstatement of the other information exists, we are 

required to describe it in our report.

Report on Internal Control over Financial Reporting

In connection with our audits of MSPB’s financial statements, we considered MSPB’s internal control over 

financial reporting, consistent with our auditor’s responsibilities discussed below. 

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described below, and was not designed to 

identify all deficiencies in internal control that might be material weaknesses or significant deficiencies3;

or to express an opinion on the effectiveness of MSPB’s internal control over financial reporting. Given 

these limitations, during our 2023 audit, we did not identify any deficiencies in internal control over 

financial reporting that we consider to be material weaknesses. However, material weaknesses or significant 

deficiencies may exist that have not been identified.

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

normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material 

weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a 

timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting 

that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
4

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

We performed our procedures related to MSPB’s internal control over financial reporting in accordance 

with government auditing standards and OMB guidance. 

Responsibilities of Management for Internal Control over Financial Reporting

MSPB management is responsible for designing, implementing, and maintaining effective internal control 

over financial reporting relevant to the preparation and fair presentation of financial statements that are free 

from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for Internal Control over Financial Reporting

In planning and performing our audit of MSPB’s financial statements as of and for the fiscal year ended 

September 30, 2023, in accordance with U.S. generally accepted government auditing standards, we 

considered MSPB’s internal control relevant to the financial statement audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on 

the effectiveness of MSPB’s internal control over financial reporting. Accordingly, we do not express an 

opinion on MSPB’s internal control over financial reporting. We are required to report all deficiencies that 

are considered to be significant deficiencies or material weaknesses. We did not consider all internal 

controls relevant to operating objectives, such as those controls relevant to preparing performance 

information and ensuring efficient operations.

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with governance, 

management, and other personnel, the objectives of which are to provide reasonable assurance that (1) 

transactions are properly recorded, processed, and summarized to permit the preparation of financial 

statements in accordance with U.S. generally accepted accounting principles, and assets are safeguarded 

against loss from unauthorized acquisition, use, or disposition, and (2) transactions are executed in 

accordance with provisions of applicable laws, including those governing the use of budget authority, 

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

financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and 

correct, misstatements due to fraud or error.

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report is solely to describe the scope of our consideration of MSPB’s internal control 

over financial reporting and the results of our procedures, and not to provide an opinion on the effectiveness 

of MSPB’s internal control over financial reporting. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering internal control over 

financial reporting. Accordingly, this report on internal control over financial reporting is not suitable for 

any other purpose.
5

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

In connection with our audits of MSPB’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibilities discussed below.

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

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2023 that would be reportable under 

U.S. generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to 

MSPB. Accordingly, we do not express such an opinion.

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

We performed our tests of compliance in accordance with U.S. generally accepted government auditing 

standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities 

for Tests of Compliance section below.

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

MSPB management is responsible for complying with laws, regulations, contracts, and grant agreements 

applicable to MSPB.

Auditor’s Responsibilities for Tests of Compliance with Laws, Regulations, Contracts, and Grant 

Agreements

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, 

and grant agreements applicable to MSPB that have a direct effect on the determination of material amounts 

and disclosures in MSPB’s financial statements, and to perform certain other limited procedures. 

Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements 

applicable to MSPB. We caution that noncompliance may occur and not be detected by these tests.

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing, 

and not to provide an opinion on compliance. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering compliance. 

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not 

suitable for any other purpose.

Greenbelt, Maryland

November 13, 2023
The accompanying notes are an integral part of these financial statements.

6

2023 2022

Assets:

Intragovernmental Assets:

Fund Balance with Treasury (Note 2) $ 16,211,168 $ 15,684,815

Advances and Prepayments 33,969 28,285

Total Intragovernmental Assets 16,245,137 15,713,100

Other than Intragovernmental Assets:

Accounts Receivable, Net (Note 3) 2,082 2,477

Property, Plant, and Equipment, Net (Note 4) 1,745,152 1,988,574

Total Other than Intragovernmental Assets 1,747,234 1,991,051

Total Assets $ 17,992,371 $ 17,704,151

Liabilities: (Note 5)

Intragovernmental Liabilities:

Accounts Payable $ 81,579 $ 106,104

Other Liabilities (Note 7) 634,741 517,189

Total Intragovernmental Liabilities 716,320 623,293

Other than Intragovernmental Liabilities:

Accounts Payable 342,914 243,900

Federal Employee [and Veteran] Benefits Payable 3,278,374 3,704,153

Other Liabilities (Note 7) 1,654,198 1,660,708

Total Other than Intragovernmental Liabilities 5,275,486 5,608,761

Total Liabilities $ 5,991,806 $ 6,232,054

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 4,185,800 $ 6,080,925

Total Unexpended Appropriations (Consolidated) 4,185,800 6,080,925

Cumulative Results of Operations - Funds from Other than Dedicated Collections 7,814,765 5,391,172

Total Cumulative Results of Operations (Consolidated) 7,814,765 5,391,172

Total Net Position 12,000,565 11,472,097

Total Liabilities and Net Position $ 17,992,371 $ 17,704,151

MERIT SYSTEMS PROTECTION BOARD

BALANCE SHEET

AS OF SEPTEMBER 30, 2023 AND 2022

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

7

 

2023 2022

Gross Program Costs:

Adjudication

Gross Costs $ 45,960,181 $ 42,136,530

Less: Earned Revenue (318,724) (194,647)

Net Program Costs $ 45,641,457 $ 41,941,883

Management Support

Gross Costs $ 5,882,145 $ 5,491,996

Net Program Costs $ 5,882,145 $ 5,491,996

Merit Systems Studies

Gross Costs $ 2,122,400 $ 1,933,733

Net Program Costs $ 2,122,400 $ 1,933,733

Net Cost of Operations $ 53,646,002 $ 49,367,612

MERIT SYSTEMS PROTECTION BOARD

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022

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

8

2023 2022

Unexpended Appropriations:

Beginning Balance $ 6,080,925 $ 8,512,317

Appropriations Received 49,655,000 45,825,000

Other Adjustments (570,119) (866,253)

Appropriations Used (50,980,006) (47,390,139)

Net Change in Unexpended Appropriations (1,895,125) (2,431,392)

Total Unexpended Appropriations $ 4,185,800 $ 6,080,925

Cumulative Results of Operations:

Beginning Balance $ 5,391,172 $ 3,011,775

Appropriations Used 50,980,006 47,390,139

Transfers In/Out Without Reimbursement 2,345,000 2,345,000

Imputed Financing (Note 10) 2,744,589 2,011,870

Net Cost of Operations (53,646,002) (49,367,612)

Net Change in Cumulative Results of Operations 2,423,593 2,379,397

Total Cumulative Results of Operations $ 7,814,765 $ 5,391,172

Net Position $ 12,000,565 $ 11,472,097

MERIT SYSTEMS PROTECTION BOARD

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022

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

9

2023 2022

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net (Note 11) $ 6,177,355 $ 7,541,668

Appropriations 49,655,000 45,825,000

Spending Authority from Offsetting Collections 2,663,794 2,539,647

Total Budgetary Resources $ 58,496,149 $ 55,906,315

Status of Budgetary Resources:

New Obligations and Upward Adjustments (total) $ 52,206,227 $ 50,230,933

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 4,886,217 4,347,944

 Unapportioned, Unexpired Accounts 97,873 -

Unexpired Unobligated Balance, End of Year 4,984,090 4,347,944

Expired Unobligated Balance, End of Year 1,305,832 1,327,438

Unobligated Balance, End of Year (total) 6,289,922 5,675,382

Total Budgetary Resources $ 58,496,149 $ 55,906,315

Outlays, Net and Disbursements, Net:

Outlays, Net (total) $ 48,558,527 $ 45,434,635

Distributed Offsetting Receipts (45) -

Agency Outlays, Net $ 48,558,482 $ 45,434,635

MERIT SYSTEMS PROTECTION BOARD

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022

(In Dollars)
MERIT SYSTEMS PROTECTION BOARD

NOTES TO THE FINANCIAL STATEMENTS

10

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The U.S. Merit Systems Protection Board (MSPB) is an independent quasi-judicial agency in the Executive 

branch that serves as the guardian of federal merit systems. The Board was established by the Civil Service 

Reform Act of 1978 (CSRA) with a mission of ensuring that employees are protected against abuses by 

agency management, that Executive branch agencies make employment decisions in accordance with the 

merit systems principles, and that federal merit systems are kept free of prohibited personnel practices. The 

MSPB 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. MSPB manages Operations and Facilities, Engineering 

and Development General Fund accounts.

General Fund Miscellaneous Receipts are accounts established for receipts of non-recurring activity, such

as fines, penalties, fees and other miscellaneous receipts for services and benefits.

The MSPB has rights and ownership of all assets reported in these financial statements. The reporting entity 

is a component of the U.S Government. For this reason, some of the assets and liabilities reported by the 

entity may be eliminated for Government-wide reporting because they are offset by assets and liabilities of 

another U.S. Government entity. These financial statements should be read with the realization that they 

are for a component of the U.S. Government, a sovereign entity. The MSPB does not possess any nonentity 

assets.

B. Basis of Presentation

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

MSPB. The Balance Sheet presents the financial position of the agency. The Statement of Net Cost presents

the agency’s operating results; the Statement of Changes in Net Position displays the changes in the 

agency’s equity accounts. The Statement of Budgetary Resources presents the sources, status, and uses of 

the agency’s resources and follows the rules for the Budget of the United States Government.

The statements are a requirement of the Chief Financial Officers Act of 1990, the Government Management 

Reform Act of 1994 and the Accountability of Tax Dollars Act of 2002. They have been prepared from, 

and are fully supported by, the books and records of the MSPB 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 A136, Financial Reporting Requirements, as amended, and the MSPB’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 
11

are used to monitor and control the MSPB’s use of budgetary resources. The financial statements and 

associated notes are presented on a comparative basis. Unless specified otherwise, all amounts are presented 

in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual accounting basis and a budgetary basis. Under the accrual 

method, revenues are recognized when earned, and expenses are recognized when a liability is incurred, 

without regard to receipt or payment of cash. Budgetary accounting facilitates the control and monitoring 

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

D. Fund Balance with Treasury

Fund Balance with Treasury is an asset of a reporting entity and a liability of the General Fund. It is the 

aggregate amount of the MSPB’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 MSPB does not maintain bank accounts of its own, has no disbursing authority, and does not maintain 

cash held outside of Treasury. When the reporting entity seeks to use FBWT or investments in Government 

securities to liquidate budgetary obligations, Treasury will finance the disbursements in the same way it 

finances all other disbursements, which is to borrow from the public if there is a budget deficit (and to use 

current receipts if there is a budget surplus). Funds are disbursed for the agency on demand.

E. Accounts Receivable

Accounts receivable consists of amounts owed to the MSPB 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 MSPB’s capitalization 

threshold is $50,000 for individual purchases and $500,000 for bulk purchases. Property, equipment, and 

software acquisitions that do not meet the capitalization criteria are expensed upon receipt. Applicable 

standard governmental guidelines regulate the disposal and convertibility of agency property, equipment, 

and software. The useful life classifications for capitalized assets are as follows:

Description Useful Life (years)

Leasehold Improvements 10

Office Equipment 10

Software 5
12

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 MSPB as a result of transactions or events 

that have already occurred.

The MSPB reports its liabilities under two categories, Intragovernmental and Other than Intragovernmental. 

Intragovernmental liabilities represent funds owed to another government agency. Liabilities other than 

intragovernmental represent funds owed to any entity or person that is not a federal agency, including 

private sector firms and federal employees. Each of these categories may include liabilities that are covered 

by budgetary resources and liabilities not covered by budgetary resources.

Liabilities covered by budgetary resources are liabilities funded by a current appropriation or other funding 

source. These consist of accounts payable and accrued payroll and benefits. Accounts payable represent 

amounts owed to another entity for goods ordered and received and for services rendered except for 

employees. Accrued payroll and benefits represent payroll costs 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 actuarial FECA. Liabilities 

not covered by budgetary resources on the Balance Sheet are equivalent to amounts reported as components 

requiring or generating resources on the Reconciliation of Net Cost to Budget. 

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.

J. Accrued and Actuarial Workers’ Compensation

The Federal Employees' Compensation Act (FECA) administered by the U.S. Department of Labor (DOL) 

addresses all claims brought by the MSPB’s employees for on-the-job injuries. The DOL bills each agency 

annually as its claims are paid, but payment of these bills is deferred for two years to allow for funding 

through the budget process. Similarly, employees that the MSPB 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 
13

calculated by the DOL, and (2) the unreimbursed cost paid by DOL for compensation to recipients under 

the FECA.

K. Retirement Plans

The MSPB’s employees participate in either the CSRS or the FERS. The employees who participate in 

CSRS are beneficiaries of the MSPB’s matching contribution, equal to seven percent of pay, distributed to 

their annuity account in the Civil Service Retirement and Disability Fund.

Prior to December 31, 1983, all employees were covered under the CSRS program. From January 1, 1984 

through December 31, 1986, employees had the option of remaining under CSRS or joining FERS and 

Social Security. Employees hired as of January 1, 1987 are automatically covered by the FERS program. 

Both CSRS and FERS employees may participate in the federal Thrift Savings Plan (TSP). FERS 

employees receive an automatic agency contribution equal to one percent of pay and the MSPB matches 

any employee contribution up to an additional four percent of pay. For FERS participants, the MSPB 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 MSPB remits the employer’s share of the required 

contribution.

The MSPB 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 MSPB for current period 

expense reporting. OPM also provides information regarding the full cost of health and life insurance 

benefits. The MSPB recognized the offsetting revenue as imputed financing sources to the extent these 

expenses will be paid by OPM.

The MSPB 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 MSPB’s employees eligible to participate in the Federal Employees' Health Benefits Plan (FEHBP) 

and the Federal Employees' Group Life Insurance Program (FEGLIP) may continue to participate in these 

programs after their retirement. The OPM has provided the MSPB with certain cost factors that estimate 

the true cost of providing the post-retirement benefit to current employees. The MSPB 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 MSPB 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.
14

N. Reclassification

Certain fiscal year 2022 balances have been reclassified, retitled, or combined with other financial statement 

line items for consistency with the current year presentation. 

O. Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards allow certain 

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified information.

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2023 and 2022, were as follows:

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

Treasury accounts.

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

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

described in the following paragraph.

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

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

incurred only during the period for which the appropriation was available for obligation or for paying claims 

attributable to the appropriations.

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

orders that have reduced unexpended appropriations but have not yet decreased the fund balance on hand 

(see also Note 12).

NOTE 3. ACCOUNTS RECEIVABLE, NET

Accounts receivable balances as of September 30, 2023 and 2022, were as follows:

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

uncollectible accounts as of September 30, 2023 and 2022.

2023 2022

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 4,886,217 $ 4,347,944 

 Unavailable 1,403,705 1,327,438 

Obligated Balance Not Yet Disbursed 9,921,246 10,009,433 

Total $ 16,211,168 $ 15,684,815 

2023 2022

Other than Intergovernmental

Accounts Receivable $ 2,082 $ 2,477

Total Accounts Receivable $ 2,082 $ 2,477
15

NOTE 4. PROPERTY, PLANT AND EQUIPMENT, NET

Schedule of Property, Plant and Equipment, Net as of September 30, 2023:

Schedule of Property, Plant and Equipment, Net as of September 30, 2022:

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the MSPB as of September 30, 2023 and 2022, 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. 

FECA and the Unemployment Insurance liabilities represent the unfunded liability for actual workers 

compensation claims and unemployment benefits paid on the MSPB’s behalf and payable to the DOL. The 

MSPB also records an actuarial liability for future workers compensation claims based on the liability to 

benefits paid (LBP) ratio provided by DOL and multiplied by the average of benefits paid over three years. 

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

the accrued annual leave account is reviewed quarterly and adjusted as needed to accurately reflect the 

liability at current pay rates and leave balances. Accrued annual leave is paid from future funding sources 

and, accordingly, is reflected as a liability not covered by budgetary resources. Sick and other leave is 

expensed as taken. 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 2,083,761 $ 2,041,835 $ 41,926

Furniture & Equipment 1,712,094 1,063,420 648,674

Software 9,749,616 9,612,256 137,360

Software-in-Development 917,192 - 917,192

Total $ 14,462,663 $ 12,717,511 $ 1,745,152

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 2,083,762 $ 2,028,625 $ 55,137

Furniture & Equipment 1,712,093 900,016 812,077

Software 9,749,616 9,545,448 204,168

Software-in-Development 917,192 - 917,192

Total $ 14,462,663 $ 12,474,089 $ 1,988,574

2023 2022

Intragovernmental – FECA $ 105,072 $ 5,018

Intragovernmental – Unemployment Insurance 6,051 -

Unfunded Leave 3,090,643 3,250,643

Actuarial FECA 110,704 379,437

Total Liabilities Not Covered by Budgetary Resources $ 3,312,470 $ 3,635,098

Total Liabilities Covered by Budgetary Resources 2,679,336 2,596,956

Total Liabilities $ 5,991,806 $ 6,232,054
16

NOTE 6. ACTUARIAL FECA LIABILITY

FECA provides income and medical cost protection to covered federal civilian employees harmed on the 

job or who have contracted an occupational disease, and beneficiaries of employees whose death is 

attributable to a job-related injury or occupational disease. Claims incurred for benefits under FECA for the 

MSPB’s employees are administered by the DOL and ultimately paid by the MSPB when funding becomes 

available.

The MSPB bases its estimate for FECA actuarial liability on the DOL's FECA model. The DOL method of 

determining the liability uses historical benefits payment patterns for a specific incurred period to predict 

the ultimate payments for the period. Based on the information provided by the DOL, the MSPB’s liability 

as of September 30, 2023 and 2022, was $110,704 and $379,437, respectively.

NOTE 7. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2023 were as follows:

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

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 118,113 $ - $ 118,113

Employer Contributions and Payroll Taxes Payable 405,505 - 405,505

Unfunded FECA Liability 23,716 81,356 105,072

Other Unfunded Employment Related Liability 6,051 - 6,051

Total Intragovernmental $ 553,385 $ 81,356 $ 634,741

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 1,645,348 $ - $ 1,645,348

Other Liabilities w/Related Budgetary Obligations 8,850 - 8,850

Total Other than Intragovernmental $ 1,654,198 $ - $ 1,654,198

Total Other Liabilities $ 2,207,583 $ 81,356 $ 2,288,939

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 115,047 $ - $ 115,047

Employer Contributions and Payroll Taxes Payable 397,124 - 397,124

Unfunded FECA Liability 5,018 - 5,018

Total Intragovernmental $ 517,189 $ - $ 517,189

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 1,654,754 $ - $ 1,654,754

Other Liabilities w/Related Budgetary Obligations 5,954 - 5,954

Total Other than Intragovernmental $ 1,660,708 $ - $ 1,660,708

Total Other Liabilities $ 2,177,897 $ - $ 2,177,897
17

NOTE 8. LEASES

Operating Leases

The MSPB occupies office space at various locations nationwide. (Atlanta, Chicago, Dallas, Denver, New 

York, Philadelphia, Oakland, Arlington, VA and in Washington DC.) The lease agreement is with the 

General Service Administration (GSA) and is accounted for as an operating lease. The lease term began on 

January 1, 2012 and expires on August 31, 2036. Lease payments are increased annually based on the 

adjustments for operating cost and real estate tax escalations. The total operating lease expense for fiscal 

years 2023 and 2022 were $3,733,986 and $3,102,112, respectively. Below is a schedule of future payments 

for the term of the lease.

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

NOTE 9. COMMITMENTS AND CONTINGENCIES

The MSPB did not have any material contingent liabilities that met disclosure requirements as of September 

30, 2023 and 2022. 

NOTE 10. INTER-ENTITY COSTS

The MSPB recognizes certain inter-entity costs for goods and services that are received from other federal 

entities at no cost or at a cost less than the full cost. Certain costs of the providing entity that are not fully 

reimbursed are recognized as imputed cost and are offset by imputed revenue. Such imputed costs and 

revenues relate to employee benefits. The MSPB recognizes as inter-entity costs the amount of accrued 

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

with such benefits are the responsibility of the administering agency, OPM. For the periods ended 

September 30, 2023 and 2022, respectively, inter-entity costs were as follows:

Fiscal Year Building Federal

2024 $ 3,883,225 $ 3,883,225

2025 3,967,944 3,967,944

2026 4,007,623 4,007,623

2027 3,539,022 3,539,022

2028 3,191,280 3,191,280

Thereafter 23,422,000 23,422,000

Total Future Lease Payments $ 42,011,094 $ 42,011,094

Asset Category Totals

2023 2022

Office of Personnel Management $ 2,744,589 $ 2,011,870 

Total Imputed Financing Sources $ 2,744,589 $ 2,011,870 
18

NOTE 11. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT FORWARD, 

OCTOBER 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for recoveries of 

prior year paid and unpaid obligations and other changes such as canceled authority. The Adjustments to 

Unobligated Balance Brought Forward, October 1, as of September 30, 2023, and 2022 consisted of the 

following:

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2023, budgetary resources obligated for undelivered orders were as follows:

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

NOTE 13. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET OF 

THE U.S. GOVERNMENT

The President’s Budget that will include fiscal year 2023 actual budgetary execution information has not 

yet been published. The President’s Budget is scheduled for publication in February 2024 and can be found 

at the OMB Web site: http://www.whitehouse.gov/omb/. The 2024 Budget of the United States Government, 

with the “Actual” column completed for 2022, has been reconciled to the Statement of Budgetary Resources 

and there were no material differences. 

In Millions

2023 2022

Unobligated Balance Brought Forward From Prior Year, October 1 $ 5,675,382 $ 7,442,648 

Recoveries of Prior Year Obligations 1,072,092 965,273 

Other Changes in Unobligated Balances (570,119) (866,253)

Unobligated Balance From Prior Year Budget Authority, Net (Discretionary and Mandatory) $ 6,177,355 $ 7,541,668 

Federal Non-Federal Total

Paid Undelivered Orders $ 33,969 $ - $ 33,969

Unpaid Undelivered Orders 3,563,658 3,678,250 7,241,908

Total Undelivered Orders $ 3,597,627 $ 3,678,250 $ 7,275,877

Federal Non-Federal Total

Paid Undelivered Orders $ 28,285 $ - $ 28,285

Unpaid Undelivered Orders 3,498,009 3,914,468 7,412,477

Total Undelivered Orders $ 3,526,294 $ 3,914,468 $ 7,440,762

New Obligations

Budgetary & Upward Net

Resources Adjustments (Total) Outlays

Combined Statement of Budgetary Resources $ 56 $ 50 $ 45

Difference - Due to Rounding (1) - -

Budget of the U.S. Government $ 55 $ 50 $ 45
19

NOTE 14. CUSTODIAL ACTIVITY

The MSPB’s custodial collection primarily consists of Freedom of Information Act requests. While these 

collections are considered custodial, they are neither primary to the mission of the MSPB nor material to 

the overall financial statements. The MSPB’s total custodial collections are $45 and $0 for the years ended 

September 30, 2023, and 2022, respectively. 

NOTE 15. RECONCILIATION OF NET COST TO NET OUTLAYS 

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an accrual 

basis, provides an explanation of the relationship between budgetary and financial accounting information. 

Reconciliation of Net Cost to Net Outlays as of September 30, 2023:

 Intragovernmental 

 Other than 

Intragovernmental Total 

$ 17,381,689 $ 36,264,313 $ 53,646,002

Property, Plant, and Equipment Depreciation Expense - (243,423) (243,423)

Increase/(Decrease) in Assets:

Accounts Receivable, Net - (395) (395)

Other Assets 5,684 - 5,684

(Increase)/Decrease in Liabilities:

Accounts Payable 24,525 (99,014) (74,489)

Federal Employee [and Veteran] Benefits Payable - 425,779 425,779

Other Liabilities (117,552) 6,510 (111,042)

Financing Sources:

Imputed Cost (2,744,589) - (2,744,589)

$ (2,831,932) $ 89,457 $ (2,742,475)

Financing Sources:

Transfers Out (In) Without Reimbursements $ (2,345,000) $ - $ (2,345,000)

$ (2,345,000) $ - $ (2,345,000)

Distributed Offsetting Receipts (SBR 4200) $ - $ (45) $ (45)

Custodial/Non-Exchange Revenue $ 45 $ (45) $ -

$ 45 $ (90) $ (45)

$ 12,204,802 $ 36,353,680 $ 48,558,482

$ 48,558,482

RECONCILIATION OF NET COST TO NET OUTLAYS

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2023

(In Dollars)

Components of Net Cost Not Part of the Budgetary Outlays

Total Net Outlays (Calculated Total) 

Net Operating Cost (SNC)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)

Budgetary Agency Outlays, Net

Misc Items

Total Other Reconciling Items
20

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

 Intragovernmental 

 Other than 

Intragovernmental Total 

Net Operating Cost (SNC) $ 15,423,987 $ 33,943,625 $ 49,367,612

Property, Plant, and Equipment Depreciation Expense - (252,054) (252,054)

Increase/(Decrease) in Assets:

Accounts Receivable, Net - 1,061 1,061

Other Assets 16,513 - 16,513

(Increase)/Decrease in Liabilities:

Accounts Payable 180,030 335,456 515,486

Federal Employee [and Veteran] Benefits Payable - 316,631 316,631

Other Liabilities (13,410) (160,334) (173,744)

Financing Sources:

Imputed Cost (2,011,870) - (2,011,870)

$ (1,828,737) $ 240,760 $ (1,587,977)

Financing Sources:

Transfers Out (In) Without Reimbursements $ (2,345,000) $ - $ (2,345,000)

$ (2,345,000) $ - $ (2,345,000)

$ 11,250,250 $ 34,184,385 $ 45,434,635

$ 45,434,635

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2022

(In Dollars)

Budgetary Agency Outlays, Net 

Components of Net Cost Not Part of the Budgetary Outlays

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)

Total Net Outlays (Calculated Total) 

RECONCILIATION OF NET COST TO NET OUTLAYS