U.S. FEDERAL LABOR RELATIONS 

AUTHORITY 

Promoting and protecting labor-management relations for 

effective, efficient Government. 

FLRA.GOV 

AGENCY FINANCIAL 

REPORT
 
TABLE OF CONTENTS 

MESSAGE FROM THE CHAIRMAN .......................................................................................... 1

Management Assurances ............................................................................................................ 1

Annual FMFIA Statement of Assurance..................................................................................... 1

MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................. 2

BACKGROUND AND MISSION ............................................................................................. 2

ORGANIZATIONAL STRUCTURE ........................................................................................ 3

STRATEGIC GOALS / PERFORMANCE SUMMARY .......................................................... 6

Strategic Goal 1: We will resolve disputes under the Statute in a timely, high-quality, and 

impartial manner. .................................................................................................................... 6

Strategic Goal 2: We will promote stability in the Federal Labor-Management community 

by providing leadership and guidance through ADR and education. ..................................... 7

Strategic Goal 3: We will manage our resources effectively and efficiently in order to 

achieve organizational excellence ........................................................................................... 7

FINANCIAL SECTION ................................................................................................................. 9

Principal Financial Statements .................................................................................................... 9

Balance Sheet .............................................................................................................................. 9

Statement of Net Cost ............................................................................................................... 10

Statement of Changes in Net Position ...................................................................................... 11

Statement on Budgetary Resources .......................................................................................... 11

Notes to the Financial Statements ............................................................................................. 16

Independent Auditor’s Report ................................................................................................... 26

OTHER INFORMATION ............................................................................................................ 32

SUMMARY OF FINANCIAL STATEMENT AUDIT ........................................................... 32

SUMMARY OF MANAGEMENT ASSURANCES ............................................................... 32

IMPROPER PAYMENTS ELIMINATION AND RECOVERY ............................................ 33
1 

MESSAGE FROM THE CHAIRMAN 

I am pleased to present the Federal Labor Relations Authority’s (FLRA) 

Agency Financial Report (AFR) for fiscal year (FY) 2019. This report 

provides an assessment of the Agency’s financial status along with information 

on our financial management and performance. The financial statements and 

notes that follow explain the FLRA’s financial position as of September 30, 

2019, and how the Agency’s financial resources were expended to achieve 

results. For the fourteenth consecutive year, the FLRA has received an 

unqualified audit opinion on its financial statements. Along with the 

unqualified opinion, the report of independent auditors found no material weaknesses in the 

design and operation of the Agency system of internal controls over financial reporting. 

We are confident that the FLRA’s financial and performance data are complete, accurate, and 

reliable. 

Management Assurances 

The Federal Managers Financial Improvement Act (FMFIA) of 1982 requires agencies to 

establish internal-control and financial systems that provide reasonable assurance that the 

integrity of Federal programs and operations are protected. The FMFIA also requires the 

Chairman to annually assess and report on the effectiveness of internal controls and to provide an 

annual Statement of Assurance on whether the Agency has met this requirement. 

Annual FMFIA Statement of Assurance 

In accordance with the requirements of OMB Circular A-123, Management’s Responsibility for 

Enterprise Risk Management and Internal Control, the FLRA conducted an assessment of the 

effectiveness of the organization’s internal controls to support effective and efficient operations, 

reliable financial reporting, and compliance with applicable laws and regulations, and to 

determine whether the financial management system conforms to applicable financial 

requirements. 

Based on the results of this assessment, the FLRA provides reasonable assurance that its internal 

controls over the effectiveness and efficiency of operations, reliable financial reporting, and 

compliance with applicable laws and regulations as of September 30, 2019, were operating 

effectively and that no material weaknesses were found in the design or operation of our internal 

controls. 

Further, based on our assessment, we determined that the FLRA financial-management system 

conforms to applicable financial-systems requirements. 

Colleen Duffy Kiko, Chairman 

Federal Labor Relations Authority 

November 19, 2019
2 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

The FLRA has chosen to produce an Agency Financial Report (AFR), with a primary focus on 

financial results, and an Annual Performance Report (APR), which focuses on strategic goals 

and performance results, in lieu of a combined Performance and Accountability report (PAR). 

The FLRA will submit its final 2019 APR to OMB with its Congressional Budget Justification 

and, once approved, post it on the FLRA website at the time the President’s 2021 Budget is 

submitted to Congress in 2020. Both the AFR and APR will be posted on the FLRA website. 

BACKGROUND AND MISSION 

๠e FLRA is an independent administrative Federal Agency created by Title VII of the Civil 

Service Reform Act of 1978, also known as the Federal Service Labor-Management Relations 

Statute (the Statute), 5 U.S.C. §§ 7101-7135. ๠e purpose of the Statute is to prescribe certain 

rights and obligations of the employees of the Federal Government and to establish procedures 

that are designed to meet the special requirements and needs of the Government. Id. § 7101(b). 

๠e provisions of the Statute are to be interpreted in a manner consistent with the requirement of 

an effective and efficient Government. Id. 

๠e FLRA applied its Federal-sector expertise to execute its mission primarily by carrying out 

the following statutory responsibilities: 

1. Conduct hearings and resolve complaints of unfair labor practices (ULPs) under § 7118 

of the Statute. Id. § 7105(a)(2)(G). ๠e FLRA is responsible for investigating, 

prosecuting, and adjudicating claims that an Agency or a labor organization has failed to 

uphold its legal obligations under the Statute. 

2. Determine the appropriateness of units for labor-organization representation under the 

Statute, and supervise or conduct elections to determine whether a labor organization has 

been selected as an exclusive representative by a majority of employees in an appropriate 

unit. Id. § 7105(a)(2)(A). ๠e FLRA also resolves disputes about which employees may 

be included in bargaining units under the Statute. Id. § 7105(a)(2)(B). 

3. Resolve exceptions to grievance-arbitration awards under § 7122 of the Statute. 

Id. § 7105(a)(2)(H). ๠e FLRA adjudicates appeals – known as exceptions – to 

arbitration awards that result from grievances filed by employees, labor organizations, or 

agencies under parties’ negotiated grievance procedures. ๠e FLRA reviews those 

awards to assess whether they are contrary to any law, rule, or regulation, or are deficient 

on other grounds similar to those applied by Federal courts in private-sector labormanagement disputes. 

4. Resolve issues relating to the duty to bargain in good faith under § 7117(c) of the Statute. 

Id. § 7105(a)(2)(E). ๠e FLRA resolves negotiability disputes that arise during 

bargaining under two circumstances – when an Agency claims that a contract proposal is 

outside the duty to bargain and when an Agency head disapproves a negotiated agreement 

claiming that it contains provisions that are contrary to law, rule, or regulation. 
3 

5. Provide assistance in resolving negotiation impasses between Federal agencies and 

exclusive representatives. Id. § 7119. 

In addition, Congress directed the FLRA to prescribe criteria and resolve issues relating to the 

granting of national consultation rights under § 7113 of the Statute; prescribe criteria and resolve 

issues relating to determining compelling need for Agency rules or regulations under § 7117(b) 

of the Statute; prescribe criteria relating to the granting of consultation rights with respect to 

conditions of employment under § 7117(d) of the Statute; and take such other actions as are 

necessary and appropriate to effectively administer the provisions of the Statute. 

Moreover, the FLRA is to “provide leadership in establishing policies and guidance” related to 

matters under the Statute. Id. § 7105(a)(1). ๠e FLRA satisfies this directive primarily through 

its written determinations, but also by offering training and other services. 

ORGANIZATIONAL STRUCTURE 

Headquartered in Washington, D.C., the FLRA has three statutory components – the Authority, 

the Office of the General Counsel (OGC), and the Federal Service Impasses Panel (the FSIP or 

the Panel) – each with unique adjudicative or prosecutorial roles. The Agency also provides full 

program and staff support to two other organizations – the Foreign Service Labor Relations 

Board and the Foreign Service Impasse Disputes Panel, pursuant to the Foreign Service Act of 

1980, 22 U.S.C. §§ 4101-4118. 
4 

Chief Executive and Administrative Officer 

The President of the United States designates one Member as Chairman who serves as the 

FLRA’s chief executive and administrative officer. 5 U.S.C. § 7104(b). 

The Authority

The Authority – the FLRA’s adjudicatory body – is led by three full-time, presidentially 

nominated and Senate-confirmed Members who are appointed to fixed, staggered five-year 

terms. 

The Authority is responsible for adjudicating ULP complaints, ruling on exceptions to 

arbitrators’ awards, resolving disputes over the negotiability of collective-bargaining proposals 

and provisions, and deciding applications for review of Regional Directors’ decisions in 

representation disputes. The Authority Members appoint Administrative Law Judges (ALJs) to 

hear and prepare recommended decisions that may be appealed to the Authority in cases 

involving ULP complaints. 

Other offices and programs under the jurisdiction of the Authority include the Office of the 

Solicitor, the Office of Administrative Law Judges (OALJ), the Office of Case Intake and 

Publication (CIP), the Alternative Dispute Resolution Program, and the Equal Employment 

Opportunity Program. Standing as an independent entity within the Authority is the Office of 

Inspector General. 

The Office of the General Counsel 

๠e OGC is led by a presidentially nominated and Senate-confirmed General Counsel who has 

direct authority over, and responsibility for, all employees in the OGC, including those in the 

FLRA’s Regional Offices. 

Under the Statute, the General Counsel has sole responsibility – independent of the Authority – 

over the investigation and prosecution of ULP cases. The General Counsel’s determinations in 

these matters are final and unreviewable. ๠e OGC investigates and resolves ULP charges, files 

and prosecutes ULP complaints, and provides training, as appropriate. In addition, through 

delegation by the Authority, the Regional Offices investigate and resolve representation (REP) 

cases and conduct secret-ballot elections. 

An external challenge beyond the FLRA’s control is the absence of a presidentially appointed, 

Senate-confirmed General Counsel (GC). Absent a GC throughout 2019, no ULP complaints or 

ULP appeal decisions have issued. In the absence of a GC, the Regional Offices may investigate 

ULP charges and dismiss those found to lack merit, but they cannot issue UPL complaints in 

meritorious cases – preventing the complaint from moving forward to a hearing before an ALJ. 

In addition, only the GC can decide appeals from a Regional Director’s dismissal of a charge. 
5 

The General Counsel has a small staff at FLRA Headquarters, located in Washington, D.C. 

Headquarters management provides administrative oversight; develops policies, guidance, 

procedures, and manuals that provide programmatic direction for the Regional Offices and 

training and education for the parties; and processes appeals from the Regional Offices’ 

dismissals of ULP charges. Each Regional Office is headed by a Regional Director who 

provides leadership and management expertise for the respective region. Collectively, the 

Regional Directors work with senior management throughout the FLRA to develop and 

implement policy and strategic initiatives to accomplish the FLRA mission. 

With the closure of the Boston Regional Office on November 30, 2018, in accordance with the 

Agency Reform Plan, there are five Regional Offices in Atlanta, Georgia; Chicago, Illinois; 

Denver, Colorado; San Francisco, California; and Washington, D.C. 

The Federal Service Impasses Panel 

The FSIP is composed of part-time Presidential appointees – a Chairman and at least six other 

Members – who are appointed to fixed, staggered five-year terms. The FSIP provides assistance 

in resolving negotiation impasses between Federal agencies and labor organizations representing 

Federal employees that arise from collective-bargaining negotiations under the Statute and the 

Federal Employees Flexible and Compressed Work Schedules Act. 
6 

STRATEGIC GOALS / PERFORMANCE SUMMARY 

Strategic Goal 1: We will resolve disputes under the Statute in a timely, highquality, and impartial manner. 

The Authority 

In 2019, the Authority issued a total of 92 merits decisions. Staff shortages during much of the 

year have made it difficult to reduce the backlog of pending cases. As the Authority worked to 

clear its oldest cases, many of the decisions the Agency issued in 2019 were already “overage.” 

This resulted in the Authority missing some of its 2019 targets. In 37 percent (32/87 cases) of 

arbitration cases the Authority met its case-processing target of 210 days. The Authority’s 

concerted effort to clear the oldest cases in its inventory by the end of 2019 is reflected in its 

performance meeting its outer targets. For example, in 75 percent (6/8) of ULP cases and 83 

percent (30/36) of negotiability cases the Authority met its 300-day target. And in 92 percent 

(33/36) of negotiability cases, 88 percent (7/8) of ULP cases, and 84 percent (73/87) of 

arbitration cases it met its outer 365-day target. 

Further, the Authority continued to meet the statutory requirement to determine whether to grant 

review in 100 percent of representation cases within 60 days of filing of an application for 

review from a Regional Director’s determination. Where the Authority has granted applications 

for review, it met its 210-day target in 75 percent (6/8) of cases and met its outer 365-day target 

in 88 percent (7/8) of cases. 

The Office of Administrative Law Judges 

The OALJ – also part of the Authority – met or substantially met all of its performance goals in 

2018. Absent a General Counsel or Acting General Counsel, the OALJ has received no new 

cases since November 2017. All of the cases that were on the OALJ docket were issued by the 

end of 2018. In the meantime, the Administrative Law Judges (ALJs) are performing work for 

other agencies through the ALJ Loan Program on a reimbursable basis. Additionally, the ALJs – 

consistent with governing regulations – are drafting decisions for the Authority in matters other 

than ULP cases. 

The Federal Service Impasses Panel 

In 2019, the Federal Service Impasses Panel received 77 filings (more than six new filings per 

month). The FSIP exceeded most of its timeliness measures for assisting parties in resolving 

their negotiation impasses. Specifically, it issued decisions to decline jurisdiction on cases not 

appropriately before the Panel within 140 days of the date that the parties filed their request for 

assistance in 90 percent (9/10) of the cases. It assisted the parties in achieving voluntary 

settlement within 160 days of the date that the parties filed their request for assistance in 100 

percent (15/15) of cases. And, it issued its final order within 200 days of the date that the parties 

filed their request for assistance in 100 percent (24/24) of cases. 
7 

Office of General Counsel 

The FLRA has been without a presidentially-nominated, Senate-confirmed General Counsel 

since January 20, 2017. Despite the challenges this vacancy created, the OGC has continued 

delivering strong results in 2019. The OGC exceeded its strategic performance goals for the 

timely resolution of ULP cases, resolving 87 percent (1,867 of 2,134) by the withdrawal, 

dismissal or settlement of the ULP charge, within 120 days of the charge’s filing date. It also 

exceeded its performance goals for timely resolution of representation cases, resolving 77 

percent (205 of 266) of representation petitions by withdrawal, election or issuance of a Decision 

and Order within 120 days of filing. 

Strategic Goal 2: We will promote stability in the Federal LaborManagement community by providing leadership and guidance through ADR 

and education. 

In 2019, the FLRA, as a whole, provided over 100 training sessions to over 3,000 participants. 

The Authority, the OGC, and the FSIP provided in-person case-law updates and training at 

several annual conferences nationwide. These sessions included presentations of newly prepared 

materials of current relevance, as well as updated materials for more standard sessions. The 

OGC consistently provided statutory training courses across the country. 

In order to serve its customers and fulfill its statutory obligation to expedite negotiability appeals 

to the extent practicable, the Authority signed a memorandum of understanding (MOU) with the 

Federal Mediation and Conciliation Service (FMCS) creating a new pilot procedure for resolving 

negotiability appeals at no cost to the parties. Under its terms, FMCS will develop a unique 

cadre of mediators, who will receive specialized training from the Authority, to assist the parties 

in the resolution of negotiability appeals through mediation. Under the pilot program, before a 

negotiability appeal is considered by the Authority’s Members for a decision, the Authority may 

refer such appeals to FMCS, either on the Authority’s own initiative or based upon a request 

from the parties. The negotiability-appeal-mediation procedure is expected to take between 30 

and 60 days. 

Strategic Goal 3: We will manage our resources effectively and efficiently in 

order to achieve organizational excellence 

Consistent with the President’s Management Agenda (PMA) Cross-Agency Priority (CAP) 

Goal 1, Modernize IT to Increase Productivity and Security, and the Agency’s strategic plan, the 

FLRA continued its ongoing efforts to expand its IT capabilities to enhance mission performance 

by improving the quality and effectiveness of its internal and external customer-facing services – 

including increased use of cloud-based solutions, such as email, case management, and 

document management. 

In 2019, the FLRA continued to execute its multi-year, four-phase plan to achieve its long-term 

goal of implementing end-to-end electronic case files throughout the Agency and complying 

with OMB mandates. Phase 1 was implementation of upgraded eFiling 3.0. Phase 2 is to 

provide a similar, more user-friendly and intuitive user interface for the Agency’s internal 
8 

electronic Case Management System (CMS). Phase 2 also includes implementation of an 

Agency-wide Document Management System (DMS) – an electronic, cloud-based “filing 

cabinet” that provides a framework for organizing digital and paper documents. The DMS also 

provides the necessary storage capacity and IT platform for the eventual integration of eFiling, 

CMS, and DMS. The Agency has already implemented the DMS, and in early 2020 expects to 

complete the first pilot of the CMS with the Authority office. The Agency continues to make 

tremendous strides toward advancing our new and improved case management system to allow 

for integration with our Document Management System and our new eFiling 3.0. 

 
9 

FINANCIAL SECTION 

Principal Financial Statements 

The FLRA’s principal financial statements have been prepared to report the financial position 

and results of operations of the Agency, pursuant to the requirements of 31 U.S.C. § 3515(b). 

While the statements have been prepared from the books and records of the FLRA in accordance 

with U.S. Generally Accepted Accounting Principles for Federal entities and the formats 

prescribed by the 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 they are for a component of the U.S. 

Government, a sovereign entity. 

Balance Sheet 

The Balance Sheet presents the FLRA’s financial position through the identification of Agency 

assets, liabilities, and net position. The FLRA’s fund balance with the Department of the 

Treasury (the Treasury) is nearly 90% of the total assets in both FY 2018 and FY 2019. The 

FLRA does not maintain any cash in commercial bank accounts or foreign currency balances, 

nor does it have any revolving or trust funds. The Agency’s second largest asset is its furniture, 

equipment, and IT hardware and software, which is recorded at original acquisition cost, and 

then depreciated using the straight-line method over the estimated useful life of the asset. 

Total assets increased to $6.5 million at the end of FY 2019 from $4.6 million at the end of 

FY 2018. New fixed-asset purchases of $270,613 were made in FY 2019 and the net book value 

of property and equipment already owned experienced further depreciation. 

Assets as of September 30, 2019 2018 

Fund balance with the Treasury $6,167,641 $4,474,299 

General property and 

equipment 248,062 78,734 

Prepaid expenses 49,655 18,141 

Accounts receivable 48,607 10,114 

Total $6,513,966 $4,581,288 

 Totals may not add due to rounding. 

Funds held with the Treasury are available to pay Agency liabilities, which represent the amount 

of monies or other resources likely to be paid by the FLRA as a result of transactions or events 

that have already occurred. Accrued employee leave, payroll, and benefits costs, along with 

accrued workers’ compensation under the Federal Employees Compensation Act (FECA), 

accounted for 95 percent of total liabilities at the end of FY 2019. The remaining 5 percent 

reflects the amount owed by the FLRA to vendors and other Federal agencies for purchased 
10 

goods and services. Agency liabilities totaled $4.2 million in FY 2018, and $3.9 million in FY 

2019. 

 

Liabilities as of September 30, 2019 2018 

Unfunded leave $1,019,222 $1,102,800 

FECA liability 1,792,524 1,471,575 

Accrued payroll and benefits 882,702 980,575 

Accounts payable 166,022 654,739 

Other Liabilities 11,138 261 

Total 3,871,608 4,209,950 

The FLRA’s total net position at the end of FY 2019 was $2.6 million, a $2.3 million increase 

from the previous year. 

Statement of Net Cost 

The Statement of Net Cost presents the gross cost of operating the FLRA’s three major 

programs, less any reimbursable revenue earned from those activities. The net cost of operations 

in FY 2019 was $24.5 million, which is $2.8 million less than FY 2018. In FY 2019, 58 percent 

of the Agency’s direct resources were dedicated to the Authority, which includes central 

administrative services provided to the entire Agency; 39 percent were dedicated to the OGC; 

and the remaining 3 percent were devoted to the FSIP. 

FY 2019 Financial Obligations by Budget Object Class

Compensation & benefits (79%)

Rent & utilities (9%)

Other contractual services (9%)

Communications (1%)

Supplies & equipment (1%)

Travel & transportation (1%)
11 

Statement of Changes in Net Position 

The Statement of Changes in Net Position reflects the changes that occurred within the 

cumulative results of operations and any unexpended appropriations. The cumulative results of 

operations represent the net results of operations since inception, the cumulative amount of 

prior-period adjustments, the remaining book value of capitalized assets, and future funding 

requirements. Cumulative results from FY 2018 to FY 2019 reflect a $38 thousand increase 

totaling $2.5 million. 

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

orders reflect the amount of goods and services ordered that have yet to be received. 

Unobligated balances are the amount of appropriations or other authority remaining after 

deducting the cumulative obligations from the amount available for obligation. The FLRA had 

an increase of $2.3 million in total, unexpended Agency appropriations in FY 2019. 

Statement on Budgetary Resources 

The Statement on Budgetary Resources reports the budgetary resources available to the FLRA 

during FY 2018 and FY 2019 to carry out the activities of the Agency, as well as the status of 

those resources at the end of each year. The primary source of FLRA funding is its annual 

Salaries and Expenses appropriation from the Congress. The Agency also receives 

reimbursements, pursuant to the Economy Act, for travel expenses associated with training 

provided by Agency employees on the Statute and FLRA mission. 

The FLRA had $26.7 million in total budgetary resources available to it in FY 2019. The 

Agency incurred obligations of $26.4 million in FY 2019, with recording outlays of $24 million. 

Total budgetary resources decreased by $448 thousand in FY 2019, due primarily to the timing 

of unpaid obligations. 

 
12 

Accompanying notes are integral to these statements and may reflect rounding differences. 

2019 2018

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) 6,167,641 $ 4,474,299 $ 

Accounts Receivable (Note 3) 40,368 10,114

Prepaid Expenses 49,655 18,141

Total Intragovernmental 6,257,664 $ 4,502,554 $ 

Accounts Receivable, Net (Note 3) 8,239 $ - $ 

Property, Equipment, and Software, Net (Note 4) 248,062 78,734

Total Assets $6,513,966 $4,581,288

Liabilities:

Intragovernmental

Accounts Payable (Note 5) - $ 328,155 $ 

Accrued Payroll and Benefits (Note 5) 173,242 187,829

FECA Unfunded (Note 5) 198,927 222,358

Other 10,850 - 

Total Intragovernmental 383,019 $ 738,342 $ 

Accounts Payable (Note 5) 166,022 $ 326,584 $ 

Unfunded Leave (Note 5) 1,019,222 1,102,800

FECA Actuarial Liability (Note 5) 1,593,597 1,249,217

Accrued Payroll and Benefits (Note 5) 709,460 792,746

Other Liabilities (Note 6) 288 261 

Total Liabilities 3,871,608 $ 4,209,950 $ 

Net Position:

Unexpended Appropriations - Other Funds 5,174,568 $ 2,864,908 $ 

Cumulative Results of Operations - Other Funds (2,532,210) (2,493,570)

Total Net Position 2,642,358 $ 371,338 $ 

Total Liabilities and Net Position 6,513,966 $ 4,581,288 $ 

BALANCE SHEET

(in dollars)

As of September 30, 2019 and 2018

Federal Labor Relations Authority
13 

Accompanying notes are integral to these statements and may reflect rounding differences. 

2019 2018

Gross Program Costs:

Authority:

Intragovernmental Costs 5,390,916 $ 6,039,210 $ 

 Public Costs 8,793,418 9,121,750

 Total Program Costs 14,184,334 $ 15,160,960 $ 

Less: Earned Revenue (22,521) (1,239)

Net Program Costs 14,161,813 $ 15,159,721 $ 

Federal Services Impasse Panel:

Intragovernmental Costs 184,877 $ 189,605 $ 

 Public Costs 611,694 669,093

 Total Program Costs 796,571 $ 858,698 $ 

Less: Earned Revenue - - 

Net Program Costs 796,571 $ 858,698 $ 

Office of General Counsel:

Intragovernmental Costs 2,363,319 $ 2,757,467 $ 

 Public Costs 7,219,015 8,531,298

 Total Program Costs 9,582,334 $ 11,288,765 $ 

Less: Earned Revenue (6,408) (7,199)

Net Program Costs 9,575,926 $ 11,281,566 $ 

Total Gross Program Costs 24,563,239 $ 27,308,423 $ 

Less: Total Earned Revenue (28,929) (8,438)

Net Cost of Operations 24,534,310 $ 27,299,985 $ 

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2019 and 2018

Federal Labor Relations Authority
14 

Accompanying notes are integral to these statements and may reflect rounding differences. 

2019 2018

Unexpended Appropriations:

Beginning Balances 2,864,908 $ 3,333,393 $ 

Budgetary Financing Sources:

Appropriations Received 26,200,000 $ 26,200,000 $ 

Other Adjustments (525,964) (519,592)

Appropriations Used (23,364,376) (26,148,893)

Total Budgetary Financing Sources 2,309,660 $ (468,485) $ 

Total Unexpended Appropriations $ 2,864,908 5,174,568 $ 

Cumulative Results of Operations:

Beginning Balances (2,493,570) $ (2,548,456) $ 

Budgetary Financing Sources:

Appropriations Used 23,364,376 $ 26,148,893 $ 

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 1,131,294 $ 1,205,978 $ 

Total Financing Sources 24,495,670 $ 27,354,871 $ 

Net Cost of Operations (24,534,310) (27,299,985)

Net Change (38,640) $ 54,886 $ 

Cumulative Results of Operations (2,532,210) $ (2,493,570) $ 

Net Position 2,642,358 $ 371,338 $ 

For the Years Ended September 30, 2019 and 2018

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)
15 

Accompanying notes are integral to these statements and may reflect rounding differences. 

2019 2018

Budgetary Resources:

Unobligated balance from prior year budget authority, net 467,11 $ 932,190 8 $ 

Appropriations 26,200,000 26,200,000

Spending authority from offsetting collections 29,662 12,323

Total Budgetary Resources 26,696,780 $ 27,144,513 $ 

Memorandum (non-add) Entries:

Net adjustments to unobligated balance brought forward, Oct. 1 ( $ (4,251,250) 4,182,374) $ 

Status of Budgetary Resources:

New obligations and upward adjustments (Note 10) 26,386,975 $ 26,408,865 $ 

Unobligated balance, end of year:

 Apportioned, unexpired account 34,427 9,108

Expired unobligated balance, end of year 275,378 726,540

Unobligated balance, end of year (total) 309,805 735,648

Total Budgetary Resources 26,696,780 $ 27,144,513 $ 

Outlays, net:

Outlays, net, (total) 23,980,695 $ 26,187,577 $ 

Agency outlays, net 23,980,695 $ 26,187,577 $ 

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2019 and 2018
16 

Notes to the Financial Statements 

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Reporting Entity 

The FLRA is an independent, administrative Federal agency created by Title VII of the Civil Service 

Reform Act of 1978, with a mission to carry out five statutory responsibilities: (1) determining the 

appropriateness of units for labor organization representation; (2) resolving complaints of unfair labor 

practices; (3) adjudicating exceptions to arbitrators’ awards; (4) adjudicating legal issues relating to duty 

to bargain; and (5) resolving impasses during negotiations. The agency consists of three components: the 

Authority, the Office of the General Counsel, and the Federal Service Impasses Panel. 

B. Basis of Accounting and Presentation 

The financial statements have been prepared to report the financial position, net cost of operations, 

changes in net position, and budgetary resources of the FLRA in accordance with the Chief Financial 

Officers Act of 1990, the Government Management Reform Act of 1994, and the Accountability of Tax 

Dollars Act of 2002. The statements have been prepared from agency financial records in accordance with 

U.S. Generally Accepted Accounting Principles (GAAP), in accordance with guidance issued by the 

Federal Accounting Standards Advisory Board (FASAB) and the Office of Management and Budget 

(OMB), as prescribed in OMB Circular A-136, Financial Reporting Requirements, and pursuant to the 

requirements of 31 U.S.C. § 3515(b). These financial statements include all funds and accounts under the 

control of the FLRA. 

The accounting structure of Federal agencies is designed to reflect both accrual and budgetary accounting 

transactions. Under the accrual method of accounting, revenues are recognized when earned, and 

expenses are recognized when incurred, without regard to the receipt or payment of cash. The budgetary 

accounting principles, on the other hand, are designed to recognize the obligation of funds according to 

legal requirements, which in many cases occur before an accrual-based transaction takes place. The 

recognition of budgetary accounting transactions is essential for compliance with legal constraints and 

controls over the use of Federal funds. The accompanying financial statements are prepared on the accrual 

basis of accounting. 

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. 

C. Budget Authority 

The Congress passes appropriations annually that provide the FLRA with authority to obligate funds for 

necessary salaries and expenses to carry out mandated program activities. These funds are available until 

expended, subject to OMB apportionment and to Congressional restrictions on the expenditure of funds. 

Also, the FLRA places internal restrictions on fund expenditures to ensure the efficient and proper use of 

all funds. 

D. Fund Balance with Treasury 

FLRA receipts and disbursements are processed by the Department of the Treasury. Fund balances with 

the Treasury consist of appropriated funds that are available to pay current liabilities and to finance 

authorized purchase commitments. No cash is held in commercial bank accounts. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed to FLRA by other federal agencies and the public. 

Amounts due from federal agencies are considered fully collectible and consist of interagency 

agreements. An allowance for uncollectible accounts receivable from the public is established when 
17 

either (1) management determines that collection is unlikely to occur after a review of outstanding 

accounts and the failure of all collection efforts, or (2) an account for which no allowance has been 

established is submitted to the Department of the Treasury for collection, which takes place when it 

becomes 120 days delinquent. Based on historical experience, all receivables are considered collectible 

and no allowance is provided. 

F. General Property and Equipment (P&E) 

This category consists of equipment and internal use software. The basis for recording purchased P&E is 

full cost, including all costs incurred to bring FLRA P&E to and from a location suitable for its intended 

use. P&E is depreciated using the straight-line method over the estimated useful life of the asset. 

Statement of Federal Financial Accounting Standards (SFFAS) No. 10, Accounting for Internal Use 

Software, provides accounting standards for internal use software used by each agency. The standards 

provide for capitalized property to continue to be reported on the Balance Sheet. P&E that are not 

capitalized because they are under the capitalization threshold are expensed in the year of acquisition. 

The FLRA’s capitalization threshold for individual purchases is $25,000. Bulk purchases of similar items 

that individually are worth less than $25,000, but collectively are worth more than $100,000 are also 

capitalized using the same general P&E categories and useful lives as capital acquisitions. Major building 

alterations and renovations are capitalized, while maintenance and repair costs are charged to expense as 

incurred. 

General P&E Category Service Life 

Software 3 Years 

Computer Equipment 5 Years 

Office Equipment 7 Years 

Office Furniture 15 Years 

Leasehold Improvements Life of lease 

G. Liabilities 

Liabilities represent the amount of monies or other resources likely to be paid by the FLRA as a result of 

transactions or events that have already occurred. Liabilities are recognized when they are incurred, 

regardless of whether they are covered by available budgetary resources. FLRA 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. No liability can be paid, however, absent an appropriation. Liabilities for which an 

appropriation has not been enacted are, therefore, classified as not covered by budgetary resources, since 

there is no certainty that the appropriation will be enacted. Liabilities that are covered by budgetary 

resources consist of intragovernmental and public accounts payable and accrued funded payroll. 

Liabilities not covered by budgetary resources in FY 2018 and FY 2019 consist of accrued and actuarial 

Federal Employees Compensation Act (FECA) compensation and unfunded employee leave. The Federal 

government, acting in its sovereign capacity, can abrogate liabilities other than contracts. 

H. FECA Liabilities 

An accrued FECA liability is recorded for actual and estimated future payments to be made for workers’ 

compensation pursuant to the FECA. The actual costs incurred are reflected as a liability because agencies 

will reimburse the Department of Labor (DOL) two years after the actual payment of expenses. Future 

revenues will be used for their reimbursement to the DOL. The liability consists of: (1) the unreimbursed 
18 

cost paid by the DOL for compensation to recipients under the FECA; and (2) the net present value of 

estimated future payments calculated by the DOL. 

An estimated actuarial liability for future workers’ compensation benefits is included. The liability 

estimate is based on the DOL’s FECA actuarial model that takes the amount of benefit payments over the 

last twelve quarters and calculates the annual average of payments for medical expenses and 

compensation. This average is then multiplied by the liabilities-to-benefits paid ratios for the whole 

FECA program. The ratios may vary from year to year as a result of economic assumptions and other 

factors, but the model calculates a liability approximately twelve times the annual payments. 

I. Annual, Sick and Other Leave 

Amounts associated with the payment of annual leave are accrued while leave is being earned by 

employees, and this accrual is reduced as leave is taken. Each year the balance in the accrued annual leave 

account is adjusted to reflect current pay rates. To the extent that current or prior-year appropriations are 

not available to finance annual leave, future financing sources will be used. Sick leave and other types of 

non-vested leave are expensed as taken. 

Any liability for sick leave that is accrued but not taken by a Civil Service Retirement System (CSRS) or 

a Civil Service Retirement System Offset (CSRS offset)-covered employee is transferred to the Office of 

Personnel Management (OPM) upon the retirement of that individual. Federal Employees Retirement 

System (FERS)-covered employees were not entitled to use unused sick leave for additional service credit 

until October 28, 2009. For retirements effective between October 28, 2009 and December 31, 2013, 50 

percent of unused sick leave can be used for additional service credit. For retirements effective after 

December 31, 2013, 100 percent of unused sick leave can be credited. 

J. Net Position 

The components of net position are unexpended appropriations and cumulative results of operations. 

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered orders 

reflect the amount of goods and services ordered that have yet to be actively or constructively received. 

Unobligated balances are the amount of appropriations or other authority remaining after deducting the 

cumulative obligations from the amount available for obligation. The cumulative results of operations 

represent the net results of operations since inception, the cumulative amount of prior-period adjustments, 

the remaining book value of capitalized assets, and future funding requirements. 

K. Retirement Plans 

The FLRA’s employees participate in the CSRS or the FERS. For CSRS employees, hired prior to 

January 1, 1984, the FLRA withholds seven percent of each employee’s salary and contributes seven 

percent of the employee’s basic salary to the CSRS Retirement and Disability Fund. These employees 

may also contribute, on a tax-deferred basis, to a defined contribution plan – the Thrift Savings Plan 

(TSP). The regular Internal Revenue Service limit in FY 2018 and FY 2019 was $18,500 and $19,000, 

respectively. The FLRA is not required to and does not contribute any matching amounts for CSRS 

employees. 

The FERS was established by enactment of Public Law 99-335. Pursuant to this law, the FERS and Social 

Security automatically cover most employees hired after December 31, 1983. Employees hired before 

January 1, 1984 elected either to join the FERS and Social Security or to remain in the CSRS. For FERS 

employees, the FLRA withholds 6.2 percent in old age survivors and disability insurance up to a specified 

wage ceiling and 0.8 percent of an employee’s gross earnings for retirement. In FY 2019, the FLRA 

matched the retirement withholdings with a contribution equal to 13.7 percent of the employee’s taxable 

salary. Due to enactment of the FERS Revised Annuity Employee and Further Revised Annuity 

Employee programs, the agency matched with a contribution equal to 11.9 percent for employees hired 

during and after calendar year 2013. 
19 

All employees are eligible to contribute to the TSP. For employees under the FERS, a TSP account is 

automatically established. The FLRA is required to make a mandatory contribution of one percent of the 

base salary for each employee under the FERS. The agency is required to match the employee’s 

contribution up to a maximum of five percent of his or her salary. Matching contributions are not made to 

the TSP accounts established by CSRS employees. The FLRA 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, are the responsibility of the 

OPM. 

FERS employees and certain CSRS reinstatement employees are eligible to participate in the Social 

Security program after retirement. CSRS employees who are 65 or older are eligible for Social Security 

payments (even if they have not retired). In these instances, the FLRA remits the employer’s share of the 

required contribution. 

L. Imputed Financing from Costs Absorbed by Others 

The FASAB’s SFFAS No. 5, Accounting for Liabilities of the Federal Government, requires that 

employer agencies recognize the full cost of pension, health, and life insurance benefits during their 

employees’ active years of service. The OPM, as administrator of the CSRS and FERS plans, the Federal 

Employees Health Benefits Program, and the Federal Employees Group Life Insurance Program, must 

provide the “cost factors” that adjust the agency contribution rate to the full cost for the applicable benefit 

programs. An imputed financing source and corresponding imputed personnel cost is reflected in the 

Statement of Changes in Net Position and the Statement of Net Cost. 

M. Revenue and Other Financing Sources 

The FLRA’s revenues are derived from reimbursable work agreements, Freedom of Information Act 

collections, and a direct annual appropriation. The FLRA recognizes reimbursable work when earned, i.e., 

services have been provided. Each reimbursable work agreement specifies the dollar value of the 

agreement and is based on estimated resources needed to perform the specified services. 

The agency receives an annual Salaries and Expenses appropriation from the Congress. Annual 

appropriations are used, within statutory limits, for salaries and administrative expenses and for operating 

and capital expenditures for essential P&E. Appropriations are recognized as non-exchange revenues at 

the time the related program expenses are incurred. Appropriations expended for capitalized P&E are 

recognized as expenses when an asset is consumed in operations. The FLRA’s annual appropriation for 

FY 2018 and FY 2019 was $26,200,000. 

N. Expired Accounts and Cancelled Authority 

Unless otherwise specified by law, annual budget authority expires for incurring new obligations at the 

beginning of the subsequent fiscal year. The account into which the annual authority is placed is called an 

expired account. For five fiscal years, the expired account is available for expenditure to liquidate valid 

obligations incurred during the unexpired period. Adjustments are allowed to increase or decrease valid 

obligations incurred during the unexpired period that were not previously reported. At the end of the fifth 

expired year, the account is cancelled and any remaining money is returned to the Treasury. 

O. Contingencies 

A contingency is an existing condition, situation, or set of circumstances involving uncertainty as to 

possible gain or loss to the agency. The uncertainty will ultimately be resolved when one or more future 

events occur or fail to occur. With the exception of pending, threatened, or potential litigation, a 

contingent liability is recognized when a past transaction or event has occurred, a future outflow or other 

sacrifice of resources is more likely than not, and the related future outflow or sacrifice of resources is 

measurable. For pending, threatened, or potential litigation, a liability is recognized when a past 
20 

transaction or event has occurred, a future outflow or other sacrifice of resources is likely, and the related 

future outflow or sacrifice of resources is measurable. 

P. Use of Estimates 

The preparation of financial statements in conformity with GAAP requires management to make 

estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. 

Actual results could differ from those estimates. 

Q. Advances and Prepayments 

Advance payments are generally prohibited by law. There are some exceptions, such as reimbursable 

work agreements, subscriptions, and payments to contractors and employees. Payments made in advance 

of the receipt of goods and services are recorded as advance payments and recognized as expenses when 

the related goods and services are received. 

NOTE 2: FUND BALANCE WITH TREASURY

U.S. government cash is accounted for on an overall consolidated basis by the Treasury. The amounts 

shown on the Balance Sheet represent the FLRA’s right to draw on the Treasury for valid expenditures. 

The fund balance as shown on the FLRA records is reconciled monthly with records from the Treasury. 

Fund Balance with Treasury account balances as of September 30, 2019 and 2018 were as follows (In 

Dollars): 

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, unfilled orders, and 

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

balance on hand. 

NOTE 3: ACCOUNTS RECEIVABLE 

The reported amount for accounts receivable consists of amounts owed to the FLRA by other Federal 

agencies (intragovernmental) and the public. There are no amounts that are deemed uncollectible as of 

2019 2018

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 34,427 $ 9,108 

 Unavailable 275,377 726,540 

Obligated Balance Not Yet Disbursed 5,857,837 3,738,651 

Total $ 6,167,641 $ 4,474,299 
21 

September 30, 2019 and 2018. Accounts Receivable balances as of September 30, 2019 and 2018 were as 

follows (In Dollars): 

NOTE 4: PROPERTY, EQUIPMENT, AND SOFTWARE, NET

Schedule of Property, Equipment, and Software as of September 30, 2019 (In Dollars):

Schedule of Property, Equipment, and Software as of September 30, 2018 (In Dollars):

NOTE 5: LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES 

Unfunded FECA liabilities consist of workers’ compensation claims payable to the DOL, which will be 

funded in a future year, and an unfunded estimated liability for future workers’ compensation claims based 

on data provided from the DOL. The actuarial calculation is based on benefit payments made over twelve 

quarters and calculates the annual average of payments. For medical expenses and compensation, this 

average is then multiplied by the liability-to-benefit paid ratio for the whole FECA program. 

2019 2018

Intragovernmental

Accounts Receivable 40,368 $ 10,114 $ 

Total Intragovernmental Accounts Receivable 40,368 $ 10,114 $ 

With the Public

Accounts Receivable 8,239 $ - $ 

Total Public Accounts Receivable 8,239 $ - $ 

Total Accounts Receivable $ 10,114 48,607 $ 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment 726,499 $ $ 248,062 478,437 $ 

Office Furniture 9,077 9,077 - 

Total 735,576 $ $ 248,062 487,514 $ 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment 455,885 $ $ 78,129 377,756 $ 

Office Equipment 202,231 - 202,231 

Office Furniture 453,695 605 453,090 

Total 1,111,811 $ 1, $ 78,734 033,077 $ 
22 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. At the end of 

each month the balance in the unfunded leave account is adjusted to reflect the liability at current pay rates 

and leave balances. Unfunded 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. All other liabilities 

are considered to be covered by budgetary resources. 

Liabilities Covered and Not Covered by Budgetary Resources as of September 30, 2019 consist of the 

following (In Dollars):

Liabilities Covered and Not Covered by Budgetary Resources as of September 30, 2018 consist of the 

following (In Dollars):

Covered Not Covered Total

Intragovernmental Liabilities

 Accounts Payable - $ - $ - $ 

 Accrued Payroll and Benefits 173,242 - 173,242 

 Unfunded FECA - 198,927 198,927 

 Other 10,850 - 10,850 

Total Intragovernmental Liabilities 184,092 $ 198,927 $ 383,019 $ 

Public Liabilities

 Accounts Payable 166,022 $ - $ 166,022 $ 

 Unfunded Leave - 1,019,222 1,019,222 

 FECA Actuarial Liability - 1,593,597 1,593,597 

 Accrued Payroll and Benefits 709,460 - 709,460 

 Other 288 - 288 

Total Public Liabilities 875,770 $ 2,612,819 $ 3,488,589 $ 

Total Liabilities $ 2,811,746 1,059,862 $ 3,871,608 $ 

Covered Not Covered Total

Intragovernmental Liabilities

 Accounts Payable 328,155 $ - $ 328,155 $ 

 Accrued Payroll and Benefits 187,829 - 187,829 

 Unfunded FECA - 222,358 222,358 

Total Intragovernmental Liabilities 515,984 $ 222,358 $ 738,342 $ 

Public Liabilities

 Accounts Payable 326,584 $ - $ 326,584 $ 

 Unfunded Leave - 1,102,800 1,102,800 

 FECA Actuarial Liability - 1,249,217 1,249,217 

 Accrued Payroll and Benefits 792,746 - 792,746 

 Other 261 - 261 

Total Public Liabilities 1,119,591 $ 2,352,017 $ 3,471,608 $ 

Total Liabilities $ 2,574,375 1,635,575 $ 4,209,950 $ 
23 

NOTE 6: OTHER LIABILITIES 

Other liabilities as of September 30, 2019 consisted of the following (In Dollars):

Other liabilities as of September 30, 2018 consisted of the following (In Dollars): 

NOTE 7: LEASES 

The FLRA has operating leases for rental of office space and equipment. As a Federal agency, the FLRA 

is not liable for any lease terms beyond one year. All leases are federal. 

Current Operating Leases 

233 Peachtree Street NE, Atlanta, GA 

The FLRA has an interagency agreement with the General Services Administration for office space at 233 

Peachtree Street NE, Atlanta, GA. The term is for 120 months beginning on or about January 18, 2012. 

FLRA has the right to terminate the lease based on the availability of funds or with a four month notice at 

any point after the first twelve months of occupancy. 

10 Causeway Street, Boston, MA 

The FLRA has an interagency agreement with the General Services Administration for office space at 10 

Causeway Street, Boston, MA. The term is for 48 months beginning on or about May 15, 2016. FLRA has 

the right to terminate the lease based on the availability of funds or with a four month notice at any point 

after the first twelve months of occupancy. FLRA terminated this lease effective November 30, 2018. 

224 S. Michigan Avenue, Suite 445, Chicago, IL 

The FLRA has an interagency agreement with the General Services Administration for office space at 224 

S. Michigan Avenue, Suite 445, Chicago, IL. The term is for 120 months beginning on or about June 16, 

Current Non-Current 2019 Total

Intragovernmental

 Unemployment Insurance Liability 10,798 $ - $ 10,798 $ 

 Custodial Liability 52 - 52 

Total Intragovernmental Other Liabilities 10,850 $ - $ 10,850 $ 

With the Public

 Withholdings Payable (445) $ - $ (445) $ 

 Advances and Prepayments 733 - 733 

Total Public Other Liabilities $ - 288 $ 288 $ 

Current Non-Current 2018 Total

With the Public

 Advances and Prepayments 261 $ - $ 261 $ 

Total Other Liabilities $ - 261 $ 261 $ 
24 

2012. FLRA has the right to terminate the lease based on the availability of funds or with a four month 

notice at any point after the first twelve months of occupancy.

525 Griffin Street, Dallas, TX 

The FLRA had an interagency agreement with the General Services Administration for office space at 525 

Griffin Street, Dallas, TX. The term was for 120 months beginning on or about October 1, 2017. FLRA 

terminated this lease effective September 30, 2018. 

1244 Speer Boulevard, Denver, CO 

The FLRA has an interagency agreement with the General Services Administration for office space at 1244 

Speer Boulevard, Denver, CO. The previous term of 57 months began on July 1, 2013 and expired on 

March 24, 2018. The term for the current agreement is for 120 months beginning on or about March 25, 

2018. FLRA has the right to terminate the lease based on the availability of funds or with a four month 

notice at any point after the first twelve months of occupancy.

1400 K Street NW, Washington, DC 

The FLRA has an interagency agreement with the General Services Administration for office space at 1400 

K Street NW, Washington, DC. The term is for 87 months beginning on or about June 1, 2014. FLRA has 

the right to terminate the lease based on the availability of funds or with a four month notice at any point 

after the first twelve months of occupancy. 

901 Market Street, San Francisco, CA 

The FLRA has an interagency agreement with the General Services Administration for office space at 901 

Market Street, San Francisco, CA. The term is for 120 months beginning on or about August 1, 2011. 

FLRA has the right to terminate the lease based on the availability of funds or with a four month notice at 

any point after the first twelve months of occupancy. 

NOTE 8: COMMITMENTS AND CONTINGENCIES 

The FLRA is, at times, a party in various administrative proceedings, legal actions, and claims brought by 

or against the agency. In the opinion of FLRA management, the ultimate resolution of any proceedings, 

actions, and claims will not materially affect financial position or results of operations of the FLRA. The 

agency examined its FY 2014 obligations prior to cancellation and believes that it does not have any 

outstanding commitments or contingencies that will require future resources to liquidate. 

NOTE 9: INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

The classification of revenue or cost as “intragovernmental” or “with the public” is determined on a 

transaction by transaction basis. Preceding transactions in the lifecycle of a product will not have an impact 

on subsequent transactions. If the FLRA purchases goods or services from another Federal entity, 

capitalizes them into inventory, and later resells them to the public, the cost of the original purchase of 

resale assets from the other Federal entity will be classified as “intragovernmental” at the time of the 

purchase. At ultimate sale to the end user, the resulting cost of goods will be classified as “with the public.” 

The purpose of this classification is to enable the Federal government to provide consolidated financial 

statements, and not to match public and intragovernmental revenue with costs that are incurred to produce 

public and intragovernmental revenue. 
25 

NOTE 10: APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

All obligations incurred are characterized as Category A, quarterly apportioned, on the Statement of 

Budgetary Resources. Obligations incurred and reported in the Statement of Budgetary Resources in fiscal 

years 2019 and 2018 consisted of the following:

NOTE 11: UNDELIVERED ORDERS AT THE END OF THE PERIOD

The amount of budgetary resources obligated for undelivered orders at the end of September 30, 2019 

consisted of the following (In Dollars): 

The amount of budgetary resources obligated for undelivered orders at the end of September 30, 2018 

consisted of the following (In Dollars): 

NOTE 12: EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET OF 

THE U.S. GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, calls for explanation of material differences between amounts 

reported in the Statement of Budgetary Resources and the actual balances published in the Budget of the 

U.S. Government (the President’s Budget). The FY 2020 President’s Budget, with actual amounts for FY 

2018, has been reconciled to the Statement of Budgetary Resources. The FY 2021 President’s Budget, 

with actual amounts for FY 2019, will not be published until February 2020. 

NOTE 13: INCIDENTAL CUSTODIAL COLLECTIONS 

Custodial collections are reflected in Fund Balance with Treasury during the year. While these 

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

the overall financial statements. FLRA's custodial collections are $1 for the year ended September 30, 

2018. There were no custodial collections for the year ended September 30, 2019. Custodial collections 

2019 2018

Direct Obligations, Category A 26,357,314 $ 26,395,924 $ 

Reimbursable Obligations, Category A 29,662 12,942 

Total Obligations Incurred 26,386,975 $ 26,408,865 $ 

Federal Non-Federal Total

Paid Undelivered Orders 49,656 $ - $ 49,656 $ 

Unpaid Undelivered Orders 1,148,819 3, 4, 667,021 815,840

Total Undelivered Orders 1,198,475 $ 3, $ 4, 667,021 $ 865,496

Federal Non-Federal Total

Paid Undelivered Orders 18,141 $ - $ 18,141 $ 

Unpaid Undelivered Orders (299,939) 2, 2, 411,319 111,380

Total Undelivered Orders (281,798) $ 2,411,319 $ 2, $ 129,521
26 

are transferred to the Treasury General Fund on September 30 and are not reflected in the financial 

statements of the Agency. 

NOTE 14: RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

Details of the relationship between budgetary resources obligated and the net costs of operations for the 

fiscal year ended September 30, 2019 are shown in the following table: 

Independent Auditor’s Report

Intragovernmental With the Public Total 

Net Operating Cost (SNC) 7,932,704 $ 16,601,606 $ 24,534,310 $ 

Components of Net Operating Cost Not Part of the Budgetary Outlays 

Property, plant, and equipment depreciation - $ (101,285) $ (101,285) $ 

Increase/(decrease) in assets:

Accounts receivable 30,254 $ 8,239 $ 38,493 $ 

Other assets 31,514 - 31,514 

(Increase)/decrease in liabilities not affecting Budget Outlays:

Accounts payable 328,155 $ 160,563 $ 488,718 $ 

Salaries and benefits 14,587 83,287 97,874 

Other liabilities 12,581 (260,829) (248,248) 

Other financing sources:

Federal employee retirement benefit costs (1,131,294) $ - $ (1,131,294) $ 

Total Components of Net Operating Cost Not Part of the Budget Outlays (714,203) $ (110,025) $ (824,228) $ 

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

Acquisition of capital assets - $ 270,613 $ 270,613 $ 

Other 2 (2) - 

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost 2 $ 270,611 $ 270,613 $ 

Net Outlays (Calculated Total) 7,218,503 $ 16,762,192 $ 23,980,695 $ 

Related Amounts on the Statement of Budgetary Resources

Outlays, net, (total) (SBR 4190) $ 23,980,695

Distributed offsetting receipts (SBR 4200) -

Outlays, Net (SBR 4210) $ 23,980,695

Federal Labor Relations Authority

RECONCILIATION OF NET COST AND BUDGET OUTLAYS

(in dollars)

For the Year Ended September 30, 2019
27 

 
28 

 
29 

 
30 

 
31 
32 

OTHER INFORMATION 

SUMMARY OF FINANCIAL STATEMENT AUDIT 

Audit Opinion: Unqualified 

Restatement: No 

Beginning 

Balance New Resolved Consolidated 

Ending 

Balance 

Material weaknesses 0 0 0 0 0 

SUMMARY OF MANAGEMENT ASSURANCES 

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

Statement of Assurance: Unqualified 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

Material weaknesses 0 0 0 0 0 0 

Effectiveness of Internal Control over Operations (FMFIA § 2) 

Statement of Assurance: Unqualified 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

Material weaknesses 0 0 0 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4) 

Statement of Assurance: Systems conform 

Beginning 

Balance New Resolved Consolidated Reassessed 

Ending 

Balance 

Non-conformances 0 0 0 0 0 0 
33 

IMPROPER PAYMENTS ELIMINATION AND RECOVERY

The Improper Payments Information Act of 2002, as amended by the Improper Payments Elimination 

and Recovery Act of 2010 (IPERA), requires agencies to annually report information on improper 

payments. The FLRA has reviewed all of its programs and determined that none are susceptible to 

significant improper payment. The IPERA also requires agencies to conduct payment-recapture audits 

for each program that expends $1 million or more annually, if conducting such audits would be costeffective. Based on the criteria set forth in Appendix C of OMB Circular A-123, the agency has also 

determined that it would not be cost-effective to establish a recovery-audit program for its programs 

that expend more than $1 million. Recoveries are not expected to be greater than the costs incurred to 

identify any overpayments. 
FEDERAL LABOR RELATIONS AUTHORITY 

1400 K Street, N.W. 

Washington, DC 20424 

www.flra.gov 

WWW.FLRA.GOV