Thirty-nine years – promoting and protecting labormanagement relations for effective, efficient Government.

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U.S. FEDERAL LABOR RELATIONS AUTHORITY

PERFORMANCE AND ACCOUNTABILITY REPORT

UNITED STATES

FEDERAL LABOR RELATIONS AUTHORITY

Performance and Accountability Report 

Fiscal Year 2018

TABLE OF CONTENTS

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

MANAGEMENT’S DISCUSSION AND ANALYSIS .........................................3

Background and Mission .................................................................................................................3

Organizational Structure ..................................................................................................................4

Strategic and Performance-Planning Framework ............................................................................7

Performance Summary...................................................................................................................21

Financial Analysis..........................................................................................................................31

Management Assurances ...............................................................................................................34

PERFORMANCE GOALS AND RESULTS......................................................35

Goal 1.1.1: Produce Timely Review and Disposition of Unfair-Labor-Practice Cases ...............35

Goal 1.2.1: Resolve Overage Unfair-Labor-Practice Cases in a Timely Fashion ........................38

Goal 1.1.2: Produce Timely Review and Disposition of Representation Cases...........................39

Goal 1.2.2: Resolve Overage Representation Cases in a Timely Fashion....................................40

Goal 1.1.3: Produce Timely Review and Disposition of Arbitration Cases.................................41

Goal 1.2.3: Resolve Overage Arbitration Cases in a Timely Fashion..........................................42

Goal 1.1.4: Produce Timely Review and Disposition of Negotiability Cases..............................42

Goal 1.2.4: Resolve Overage Negotiability Cases in a Timely Fashion...............................43

Goal 1.1.5: Produce Timely Review and Disposition of Bargaining-Impasse Cases...................44

Goal 2.1.1: Provide Targeted Access to Training, Outreach, and Facilitation Activities within 

the Labor-Management Community.........................................................................45

Goal 2.2.1: Successfully Resolve a Significant Portion of FLRA Cases through ADR...............46

Goal 3.1.1: Recruit, Retain, and Develop a Highly Talented, Motivated, and Diverse

Workforce to Accomplish the FLRA’s Mission.......................................................50

Goal 3.2.0: Improve Use of Existing Technology and Deploy New IT Systems to Streamline 

and Enhance Organizational Operations...................................................................57

Verification and Validation of Performance Data .........................................................................59

PRINCIPAL FINANCIAL STATEMENTS .......................................................60

Message from the Chief Executive Officer ...................................................................................60

Balance Sheet.................................................................................................................................61

Statement of Net Cost ....................................................................................................................62

Statement of Changes in Net Position ...........................................................................................63

Statement of Budgetary Resources................................................................................................64

Notes to the Financial Statements..................................................................................................65

Report of Independent Auditors.....................................................................................................77
OTHER ACCOMPANYING INFORMATION.................................................82

Summary of Financial Statement Audit.........................................................................................82

Summary of Management Assurances...........................................................................................82

Improper Payments Elimination and Recovery .............................................................................83

Memorandum on Inspector General Identified Management Challenges.....................................84
1

MESSAGE FROM THE CHAIRMAN

I am pleased to submit the FY 2018 Performance and Accountability Report for 

the Federal Labor Relations Authority (FLRA). Although this has been a 

challenging year with vacancies in key leadership positions, it was also another 

successful and productive year. The employees in this Agency are fully 

committed to the mission of this Agency and, despite changes and transitions, 

have been remarkably present and hard working. 

For the first three months of FY 2018, there were only two Members of the 

Authority. The Members’ staffs continued to prepare draft decisions; however when the two 

Members were unable to reach consensus on the disposition of a case, no decision could 

issue. On December 11, 2017, the FLRA welcomed two new Members (one of whom was 

designated Chairman) and swore in an existing Member for a new term. This restored the 

Authority to a full complement of three Members to tackle the backlog of “overage” cases that 

had accrued. From December 2017 (when the Authority was restored to a full complement of 

Members) through September 2018, the Authority issued a total of 115 merits decisions (an 

average of almost 12 decisions per month) as compared to issuing only 52 merits decisions 

during the same time period in FY 2017 (an average of 5 decisions per month). Of the cases 

pending in the Member offices’ inventory when the Authority regained a full complement of 

Members, only five currently remain.

The Office of Administrative Law Judges (OALJ) – also part of the Authority – met or 

substantially met all of its performance goals in FY 2018. Absent a General percent 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 FY 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. 

In FY 2018, the Federal Service Impasses Panel exceeded all of its performance measures for 

assisting parties in resolving their negotiation impasses. For the first three quarters of FY 2018, 

the Panel received 92 filings (an average of 7 new filings each month). Case filings increased to 

9 cases filed in the month of September. 

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

since January 20, 2017. Despite the challenges this vacancy created, the Office of General 

Counsel (OGC) continued delivering strong results in FY 2018. The OGC exceeded its strategic 

performance goals for the timely resolution of ULP cases, resolving 88 percent (2,682 of 3,060) 

of ULP cases by issuance of a complaint (during the period that it had an Acting General 

Counsel), or 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 82 percent (195 of 239) of representation petitions by withdrawal, 

election or issuance of a Decision and Order within 120 days of filing.
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The OGC also focused on implementing aspects of the FLRA Agency Reform Plan –

specifically, to consolidate the OGC’s Regional Offices from seven to five by closing the Dallas 

and Boston Regional Offices. As part of this consolidation, all 16 affected OGC employees were 

offered reassignment and paid relocation to another region, or to the FLRA headquarters. Seven 

of those employees elected to relocate. The Dallas Regional Office closed on September 30, 

2018 and the Boston Regional Office is on track for closure by November 30, 2018.

In order to implement the new jurisdictional boundaries resulting from the regional office 

consolidation, the FLRA issued procedural regulations to reflect the Dallas Regional Office 

closure on September 30, 2018. It also issued web-based guidance, press releases and responses 

to “frequently asked questions” to ensure that the parties were aware of these changes and of the 

appropriate geographical region in which to file cases. It will issue similar regulations and 

guidance materials to reflect the Boston Regional Office closure on November 30, 2018.

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. 

 

As Chairman of the FLRA, I certify that no material weaknesses were found in the design or 

operation of our internal controls and financial systems, as discussed in more detail in this 

report. I have also made every effort to verify the accuracy and completeness of the performance 

data presented in this report.

Colleen Duffy Kiko, Chairman

Federal Labor Relations Authority

November 15, 2018
3

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND AND MISSION

The 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. The 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). 

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

an effective and efficient Government. Id.

Consistent with its statutory mandate, the FLRA’s 2015-2018 mission was: Protecting rights and 

facilitating stable relationships among Federal agencies, labor organizations, and employees 

while advancing an effective and efficient Government through the administration of the Statute.

The 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). The 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). The 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). The 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. The 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). The 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. 

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

exclusive representatives. Id. § 7119.
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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). The 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. 
5

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

The Office of the General Counsel (OGC) is led by a presidentially nominated and Senateconfirmed 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. The 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. 

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 
6

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. 

Consolidation of the Agency’s regional offices involved closure of the Dallas Regional Office at 

the very end of FY 2018 and the planned closure of the Boston Regional Office in the first two 

months of FY 2019. On November 30, 2018, the FLRA will have five Regional Offices: 

Atlanta, Georgia; Chicago, Illinois; Denver, Colorado; San Francisco, California; and 

Washington, D.C.

Map of the Regional Offices throughout FY 2018:

 

The Federal Service Impasses Panel

The FSIP is composed of seven 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.
7

STRATEGIC AND PERFORMANCE-PLANNING FRAMEWORK

The FLRA established strategies and goals designed to maximize the delivery of Agency

services throughout the Federal Government through a comprehensive review – by leadership at 

all levels throughout the Agency – of its operations, staffing, work processes, resource 

allocations, and performance. Throughout FY 2018, the FLRA engaged in a continuous 

assessment of performance and other data to ensure that it accomplished its mission, effectively 

and efficiently, and that it promoted innovation throughout the Agency.

The FLRA’s FY 2018 performance-planning framework was based on the Agency’s FY 2015 -

2018 Strategic Plan, and supported by the Agency’s Annual Performance Plan, which established

the Agency’s annual performance goals and measures. The Annual Performance Plan reflected

the Agency’s commitment to meaningful metrics to assist in assessing performance outcomes, 

aligning resources, and effectively identifying staffing and training needs. The Annual 

Performance Plan also demonstrated the FLRA’s ongoing commitment to organizational 

excellence. 

Consistent with the government-wide initiative to leverage existing data to facilitate agencies’ 

programmatic work and enhance the value of data set forth in Office of Management and Budget 

(OMB) Memorandum No. 14-06, Guidance for Providing and Using Administrative Data for 

Statistical Purposes, the FLRA continually and strategically monitored its progress in 

accomplishing the goals and measures set forth in the Annual Performance Plan. This ongoing, 

Agency-wide review was conducted on a monthly basis with distribution of the Monthly 

Analysis of Performance and Status (MAPS) Report, which contained statistical case and 

performance data derived from the FLRA’s Case Management System (CMS) and Agency

management. The Agency examined the data contained in the MAPS Report in a variety of 

forums. At the component and office levels, there were also daily performance assessments using 

a variety of reports, including: case-filing reports, which tracked the number and age of cases; 

case-status reports, which tracked the status of all assigned pending cases within the Authority, 

the OGC, and the FSIP; and monthly disposition reports, which tracked the number, age, and 

resolution type of every closed case within the Authority and the OGC. 

The analysis and assessment of these reports drove, among other things: adjustments in 

workload through case transfers at the national, regional, and office levels; decisions to target 

services (including training, facilitations, and on-site investigations) to certain parties or 

geographical locations; and reallocation of resources, including use of details and contract 

support. 
8

FY 2018 Performance Goals 

1.1.1: Produce timely review and disposition of unfair-labor-practice cases.

1.2.1: Resolve overage unfair-labor-practice cases in a timely fashion.

1.1.2: Produce timely review and disposition of representation cases.

1.2.2: Resolve overage representation cases in a timely fashion.

1.1.3: Produce timely review and disposition of arbitration cases.

1.2.3: Resolve overage arbitration cases in a timely fashion.

1.1.4: Produce timely review and disposition of negotiability cases.

1.2.4: Resolve overage negotiability cases in a timely fashion.

1.1.5: Produce timely review and disposition of bargaining-impasse cases.

2.1.1: Provide targeted access to training, outreach, and facilitation activities within the labormanagement community. 

2.2.1: Successfully resolve a significant portion of FLRA cases through ADR.

3.1.1: Recruit, retain, and develop a highly talented, motivated, and diverse workforce to 

accomplish the FLRA’s mission. 

3.1.2: Improve use of existing technology and deploy new IT systems to streamline and 

enhance organizational operations. 

2015-2018 Strategic Plan

The 2015-2018 Strategic Plan established strategies and goals designed to maximize the delivery 

of Agency services throughout the Federal government. In addition, the FLRA identified 

performance goals that allowed the Agency to both monitor progress towards achieving its 

strategic goals and to recalibrate strategies, as necessary, for maximum mission performance. 

This continued the FLRA’s increased focus on targeted data collection and data-driven 

leadership and decision-making. In developing the strategic plan, the FLRA referenced 

evidence-based performance and resource trends. Data collected was intended to measure 

progress against this strategic plan and overall mission performance and effectiveness. 

The FLRA sought to achieve its strategic goals primarily through the timely, high-quality, and 

impartial review and disposition of cases. The Agency supplemented these efforts with a focus 

on reducing litigation and its attendant costs by helping parties to resolve their own disputes 

through collaboration, ADR, education, and labor-management-cooperation activities. Further 

supporting these efforts in FY 2018 was the FLRA’s focus on more effective and efficient use of 

human capital and internal improvements in information technology (IT).
9

Timeliness and Quality

Continued improvements in the timeliness of case disposition further the FLRA’s critical role in 

facilitating orderly, effective, and efficient change within the Federal Government. In large part, 

the FLRA exists to promote effective labor-management relations that, in turn, permit improved 

employee performance and Government operations. Timely resolution of FLRA cases is critical to 

this endeavor. Effective case resolution includes quality issues: effective process execution; clear 

communication with the parties around case processes; and the issuance of well-written and 

understandable decisions that provide deliberate, impartial, and legally sound analyses and 

consideration of the issues in dispute.

Alternative Dispute Resolution and Education

Throughout the years, the FLRA has recognized the many benefits associated with using ADR to 

assist the parties to reach agreement on the issues prior to reaching a full written decision on the 
10

issues. In addition, the FLRA’s training initiatives are intended to better serve the FLRA’s 

customers by providing meaningful and clear guidance on statutory rights and responsibilities. 

The FLRA delivers its educational materials through a variety of means, such as: in-person 

training sessions; comprehensive, web-based training modules; and case outlines, manuals, and 

subject-matter guides that are easily accessible on www.FLRA.gov. All of these materials were

developed to assist customers from the Federal labor-management-relations community.

Information Technology (IT)

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. By adopting cloud-based solutions that are FEDRAMP certified – such 

as Microsoft Office 365 and Amazon Web Services – the Agency improved its IT security by 

leveraging those vendors’ extensive resources to protect and segregate Government data with the 

best information security practices. 

The Agency also continued to improve its overall efficiency, as well as the customer-service 

experience, by engaging in new and innovative ways to conduct business, such as through our 

improved electronic case filing (eFiling 3.0). In addition, the Agency strategically emphasized 

IT modernization by implementing realistic and attainable equipment lifecycles. 

During FY 2018, the FLRA continued to make improvements through smaller-scale projects,

such as ongoing efforts to enhance the VTC System, which will reduce necessary travel 

expenditures and provide more opportunities to offer training to Agency employees and its 

customers.

IT Action and Planning in FY 2018:

In FY 2018, using agile methodology, 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 to do so by the end of calendar year 2019.

1. Phase 1 was the successful redesign and launch of eFiling 3.0 in FY 2018 using agile 

development and state-of-the art, cloud-based technology. Addressing customer 

feedback, and after refining its approach, the Agency launched a more user-friendly and 

intuitive user interface that is built on a new, cloud-based technical platform that will 

better support the Agency’s long-term needs.

2. Phase 2 is to provide a similar, more user-friendly and intuitive user interface for the

Agency’s internal 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 
11

platform for the eventual integration of eFiling, CMS, and DMS. The Agency has 

already implemented the DMS in FY 2017. Work on the new CMS has begun, using the 

same technology and building on the lessons learned during development, testing, and 

implementation of eFiling 3.0. Phase 2 is underway, and it will run through FY 2019. 

This is the most time-consuming and expensive phase of the project, and the Agency

diverted funds from this effort in FY 2018 in order to make as much progress as possible 

on the regional-office consolidation. The FLRA goal is to implement the new CMS 

across all offices by the end of calendar-year 2019; however, this schedule is greatly 

dependent on funding. 

3. Phase 3 is the integration of the automated connection between eFiling, CMS, and DMS. 

In FY 2018 the Agency began work on this Phase which will redevelop our CMS on a 

different platform. Although not originally contemplated, redeveloping the CMS makes 

sound technical sense because it avoids reengineering down the road, and ultimately 

saves the Agency money in the long run. Work will continue through the end of FY 2020. 

4. Phase 4 is the transition to 100 percent electronic case files throughout the Agency, with 

a goal of September 30, 2020, for completion. In FY 2018 work continued on all phases 

which ultimately contributed to the planning for this final phase. 

Despite that timelines associated with the electronic case file, four-phase implementation plan 

have shifted over time, the Agency remains within target to complete this initiative on time, and 

its overall costs are well below industry standards for similar undertakings. Further, despite the 

evolving nature of the approach, the goal and the results have remained the same: 

implementation of fully electronic case files throughout the Agency to enable the FLRA to 

increase its overall efficiency and effectiveness.

Successful achievement of this goal will enable implementation of additional external and 

internal case-processing improvements that further maximize the use of technology and 

eliminate many of the labor-intensive, manual case processes. The greatest benefit will be the 

ability to redirect staff hours currently used to perform manual administrative tasks to perform 

other mission-critical functions. These case-processing improvements include: reducing the 

time and expense that FLRA staff spends copying, scanning, mailing, and entering data; 

eliminating outdated facsimile service; reducing U.S. Mail costs by implementing electronic 

service of case-related documents by the FLRA on the parties; reducing – or eliminating – Fed 

Ex costs for transferring paper case files between FLRA offices; implementing a pilot program 

that would mandate FLRA parties to file all case-related documents electronically, and 

eventually mandating eFiling for all FLRA case filings. 

In addition, the FLRA embraced its “cloud-first” approach by migrating the Agency’s email 

system to the cloud in FY 2018. All of the Agency’s major technical components – email, 

Document Management System, Case Management System, and eFiling – are now in the cloud, 

offering better redundancy and backups that can be leveraged to improve the Agency’s 

Continuity of Operations Plan (COOP). This is a major achievement and another example of the 

Agency’s sustained commitment to continually modernizing IT. 
12

Human Capital

In FY 2018, FLRA employees continue to be engaged by responding to the Federal Employee 

Viewpoint Survey (FEVS). The overall response rate was 75 percent. This is well above the 41

percent Government-wide rate as well as the 67 percent response rate among small agencies 

(100-999 employees). The FLRA will continue to use the FEVS as a tool to assist it in providing 

strategic direction and vision for the Agency.

The FLRA is in the final stages of implementation of the Agency’s FY 2018 reform effort. This 

was designed to be consistent with Executive Order No. 13781, Comprehensive Plan for 

Reorganization the Executive Branch and OMB Memorandum, M-17-22, Comprehensive Plan 

for Reforming the Federal Government and Reducing the Federal Civilian Workforce. The 

FLRA therefore established a cross-component working group responsible for obtaining internal 

and external input to develop the overall implementation plan. One of the major initiatives of the 

reform effort was the development of a Regional Office consolidation plan, consistent with the 

FLRA’s ongoing efforts and OMB mandates since 2010 to reduce or eliminate physical footprint 

and rent costs. This resulted in reorganization and reduced the Agency’s regional office 

presence from seven to five offices, physically closing the FLRA’s Dallas Office in FY 2018 and 

planning for the closure of the Boston Office in early FY 2019. The Agency reorganized the 

workload across the remaining five Regional Offices and offered all affected employees 

positions in either another Region or the Washington, DC Headquarters through reassignment.

Also in FY 2018, the FLRA completed a comprehensive, Agency-wide position classification 

review to confirm that all position descriptions properly reflected the actual duties of the position 

and that the accompanying cover sheets were accurate. This review has been critical in 

conducting “need-to-fill” evaluations and the requisite job analysis associated with the 

recruitment efforts for these positions.

The FLRA is currently developing strategy for the implementation of OPM’s performancemanagement system: USA Performance, a software solution provided to assist Federal agencies 

in implementing their Senior Executive Service (SES) and Non-SES performance management 

programs and systems. USA Performance is designed by Federal performance management 

experts and maintained by OPM. It offers a core suite of functionalities that will meet a variety 

of performance management processes while ensuring compliance with Federal regulations and

consistency with OPM recommendations. USA Performance is compliant with Federal

performance management regulations and meets Federal IT security requirements. The 

implementation of USA Performance is also a significant component of the Agency plan 

developed for maximizing employee performance in response to OMB’s M-17-22 memorandum

Comprehensive Plan for Reforming the Federal Government and Reducing the Federal Civilian 

Workforce..

All Federal employees are required to undergo a security background check when they enter 

Federal service. Most investigations should be reviewed and updated every 5, 7, or 10 years, 

depending on the sensitivity of the employee’s position. Although the FLRA had been 

conducting the required security background checks for new FLRA hires in recent years, most 

FLRA employees who had been on board for more than 5 years did not have a current 
13

investigation/re-investigation in their files. As a result of these findings FLRA completed 

security background checks and worked with FLRA leadership to determine the circumstances in 

which a new background check needed to be conducted.

In August 2004, President George W. Bush issued Homeland Security Presidential Directive 12 

(HSPD-12) which mandated new standards for secure and reliable personal identification for all 

Federal employees and contractors. These standards are based on sound criteria for verifying an 

employee’s identity; strongly resistant to identify fraud, tampering, counterfeiting, and terrorist 

exploration; and includes rapid electronic authentication. To ensure the FLRA’s compliance 

with HSPD-12, in FY 2018 the Human Resources Division (HRD) and the Administrative 

Services Division (ASD) worked cross-departmentally to make certain that all FLRA employees 

received an HSPD-12 Personal Identity Verification (PIV) card. This included both divisions 

facilitating the security adjudication process for all employees so that they were properly cleared 

to receive an HSPD-12 badge.

The FLRA continued to be committed to fostering a workplace where employees from all 

backgrounds are recruited, retained, and developed for successful performance and career 

progression. In FY 2018, the Agency used Schedule A hiring authorities for persons with 

disabilities as well as Veterans’ Appointing Authorities in recruitment. This was to ensure a 

diverse workforce, including the hiring of people with disabilities and veterans, as part of the 

overall recruitment strategy for each recruitment effort. 

The Agency continues to actively engage employees at all levels in Agency processes and to 

seek their opinions. For example, the Agency’s efforts in FY 2018 to develop its 2018-2022 

Strategic Plan resulted in an employee-driven, employee-developed, and employee-drafted

document. Forty FLRA employees from every level, every Agency component, and every 

region of the country – more than one-third of the Agency’s workforce – actively participated in 

developing all substantive elements of the new Strategic Plan. 

All Agency employees were invited to participate in an initial survey regarding the Agency’s 

new mission statement and a follow-up survey asking for their views on the new Strategic Plan’s

goals and objectives. In the first survey, 90 percent of respondents indicated that the work they 

do on a daily basis helps to achieve the new mission statement. In the second survey, between 

86 and 91 percent of respondents indicated that each of the three new strategic goals were on 

target and important.

To support the Agency’s efforts in implementing the PMA (specifically by enhancing mission 

effectiveness and building a modern, technologically sound workforce), in FY 2018 employees 

at all levels across the Agency were actively involved in the efforts to develop the new and 

improved eFiling system, the DMS, and overall efforts to help the Agency achieve its goal of 

implementing fully electronic case files across the Agency. Employee involvement in these 

efforts included serving as a component or office representative on a work group to develop the 

structure of electronic case files; actively participating in facilitated, “user-centered design” 

information-gathering sessions where employees were encouraged to share their work processes, 

their needs, and their ideas for improvement; and respond to ad hoc questions about these 

systems as they arose.
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PERFORMANCE SUMMARY

The FLRA’s 2015-2018 mission was to promote stable, constructive labor-management relations 

through the timely and effective resolution and prevention of labor disputes in a manner giving 

full effect to the collective-bargaining rights of employees, unions, and agencies. It carried out 

its mission in a manner that met the special obligations and needs of the Federal Government and 

was consistent with the requirement of an effective and efficient Government. 

Mission – Case Processing & ADR

With respect to mission accomplishment, the FLRA as a whole has shown tremendous ability to 

provide its customers with timely and quality adjudication, while adapting to fluctuations in the 

number of case filings that it receives. In FY 2018, the FLRA met or exceeded nearly every 

mission-related performance goal, as it did in FY 2017.

• Authority 

Consistent with the FLRA’s 2015-2018 Strategic Plan, the Authority changed its performance 

measures beginning in FY 2017 to shorten case-processing times – from 180 days to 150 days in 

75 percent of non-representation cases. In FY 2017 and continuing into FY 2018, the Authority 

also implemented measures for ensuring that the cases not “captured” by those 75 percent targets 

do not go significantly “overage.” The goal is to issue at least 95 percent of all cases within 365 

days.

However, in FY 2018, the Agency faced external challenges beyond its control. For example, 

for most of FY 2017, the Authority had only two of the three presidentially nominated, Senateconfirmed Members in place. The Members’ staffs continued to prepare draft decisions; 

however when the two Members were unable to reach consensus on the disposition of a case, no 

decision could issue. On December 11, 2017, the FLRA welcomed two new Members (one of 

whom was designated Chairman) and swore in an existing Member for a new term. This 

restored the Authority to a full complement of three Members to tackle the backlog of 

approximately 50 “overage” cases that had accrued since January 3, 2017. 

As the Authority worked to clear that backlog, many of the decisions the Agency issued in FY 

2018 were already “overage.” As a result, in FY 2018 the Authority failed to meet two of its 

targets. In FY 2018, the Authority met its case-processing target of 150 days in only 38 percent

(36 out of 94) of arbitration cases and 50 percent (4 out of 8) of ULP cases. However, the 

Authority met or exceeded its six other targets in FY 2018. It issued 83 percent (5 out of 6) of 

negotiability cases within 150 days, thereby exceeding its 75 percent target. And it met its 365-

day target in 98 percent (92 out of 94) of arbitration cases, and 100 percent of all other case types 

(6 out of 6 negotiability cases; 8 out of 8 ULP cases; and 7 out of 7 representation cases). 

Further, as in previous years, the Authority continued to meet the statutory requirement of 

issuing 100 percent (7 out of 7) of representation cases within 60 days of an application for 

review from a Regional Director’s determination. 

Moreover, the issuance rate of Authority decisions increased dramatically over the course of the 

year. From December 2017 (when the Authority was restored to a full complement of Members) 
15

through September 2018, the Authority issued a total of 115 merits decisions (an average of 

almost 12 decisions per month) as compared to only 52 merits decisions issued during the same 

time period in FY 2017 (an average of 5 decisions per month). 

The Authority began FY 2017 with only one “overage” case, which enabled it to meet or nearly 

meet all of the more aggressive, reduced case-processing time targets that it implemented that 

year. In contrast, as noted above, the Authority began FY 2018 with a significant backlog of 

cases due to vacancies in political leadership, making it difficult to achieve the same level of 

performance in FY 2018 as it did in FY 2017 and FY 2016. By the end of FY 2018, however, 

the Authority cleared a huge majority of its backlog of overage cases. Of the cases pending in 

the Member offices’ inventory when the Authority regained a full complement of Members, only 

four currently remain.

• Authority – OALJ

The absence of a General Counsel (GC) for ten months of the fiscal year adversely affected the 

OALJ’s performance. This extended vacancy resulted in a substantial reduction in the number 

of new complaints received which had a negative impact upon the OALJ’s age based disposition 

goals. By receiving only 44 new cases, rather than the typical 200, the pool of new cases ripe for 

early resolution via settlement was drastically reduced, which in turn, led to the older, more 

difficult cases carried over from the prior fiscal year having a disproportionate effect upon case 

age percentages. The OALJ encourages parties to utilize the Settlement Judge Program, which 

historically has been successful in resolving cases within 180 days without the need for costly 

and time consuming hearings and written decisions. In FY 2018, the Settlement Judge Program 

was offered in one hundred percent (100 percent -- 93 of 93) of ULP complaints and eighty-three 

percent (83 percent -- 10 of 12) of those using the program achieved resolution within 180 

days. However, the small number of new cases received precluded that success from having a 

substantial impact on the OALJ’s case-processing times. As a result, the most difficult and 

complex cases requiring full litigation and written decisions accounted for twenty-seven (27) of 

the ninety three (93) dispositions completed in the fiscal year. This disproportionate 

representation of older, more difficult cases resulted in seventy-seven percent (77 percent -- 72 

of 93) of the ULP complaints issued by the GC being resolved within 180 days and ninety

percent (90 percent -- 84 of 93) were resolved within 365 days of the receipt of the complaint

from the GC.

• Authority – CADR (formerly CADRO)

The Director of the Authority’s Collaboration and Alternative Dispute Resolution (CADR)

served as the Settlement Official for the OALJ. Almost all of the cases that the program resolved

would otherwise have required decisions by the Authority.

During portions of FY 2018 this program was known as CADR, and in FY 2017 as CADRO. 

The primary focus of the program in FY 2018 was to assist Federal agencies, and the unions that 

represent Federal employees, in resolving negotiability disputes. Once again in FY 2018, 100

percent of such negotiability cases resulted in full or partial resolution of the underlying dispute 
16

and closure of the pending case – exceeding the goal of 90 percent in that category. This 

program helped parties in more than 12 cases resolve negotiability disputes.

• OGC

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

since January 20, 2017. Because the General Counsel’s position is subject to the Federal

Vacancies Reform Act (Vacancies Act), the career Deputy General Counsel served as Acting 

General Counsel from that date until November 16, 2017, the statutory maximum under the 

Vacancies Act absent a General Counsel nominee. In the absence of a General Counsel, the 

OGC’s Regional Directors may investigate ULP charges and dismiss those found to lack merit, 

but they cannot issue ULP complaints in meritorious cases, which is a power reserved by the 

Statute exclusively to the General Counsel. In addition, only the General Counsel can decide 

appeals of a Regional Director’s dismissal of a ULP charge.

The OGC also focused on implementing aspects of the FLRA Agency Reform Plan within our 

responsibility – specifically, to consolidate the OGC’s Regional Offices from seven to five by 

closing the Dallas and Boston Regional Offices. As part of this consolidation, the Agency offerd 

all 16 affected OGC employees reassignment and paid relocation to another region, or FLRA 

headquarters. Seven of those employees elected to relocate. The FLRA carefully planned and 

monitored its FY 2018 expenditures to ensure that the consolidation was executed on schedule 

and within the Agency’s existing budget. The Dallas Regional Office closed on September 30, 

2018. The Boston Regional Office is on track for closure by November 30, 2018. The Regional 

Director and employees of the Dallas Region diligently performed the activities necessary to 

close that Region and to minimize disruptions in the OGC’s case processing efforts.

Despite these challenges, the OGC continued delivering strong results in FY 2018. The OGC 

exceeded its strategic performance goals for the timely resolution of ULP cases, resolving 88

percent (or 2,682 of 3,060) of ULP cases by issuance of a complaint (during the period that it had 

an Acting General Counsel), or 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 82 percent (or 195 of 239) of representation 

petitions by withdrawal, election or issuance of a Decision and Order within 120 days of filing.

The OGC has also continued to resolve cases through voluntary settlement during the 

investigative process. The OGC has the largest case intake among all of the FLRA components, 

and is the FLRA component with which the parties have the most direct contact. The beneficial 

effects of voluntary resolutions are obvious, and they advance the effective and efficient 

utilization of Government resources.

In FY 2018, the OGC resolved over 600 ULP cases by voluntary settlement during the 

investigative process. The OGC also used its resources to facilitate resolution of complex 

representation petitions. For example, in response to a representation petition seeking 

clarification of 125 positions, an OGC attorney met with the parties telephonically, pursuant to 

section 2422.13(b) of the Authority’s regulations, and resolved the status of 54 positions. The 
17

following week, pursuant to the same regulatory authority, the parties met in person to narrow 

the issues for hearing. Due to the OGC attorney’s efforts, an additional 68 positions were 

resolved. The attorney assisted the parties in drafting stipulations to reflect these agreements, 

resulting in only 3 positions remaining in dispute. By working cooperatively with the parties, the 

OGC was able to narrow the issues in dispute quickly and effectively.

In order to implement the new jurisdictional boundaries resulting from the FLRA’s regional 

office consolidation, the FLRA issued procedural regulations on September 13, 2018 to reflect 

the Dallas Regional Office closure on September 30, 2018. It also issued web-based guidance,

press releases and FAQ’s (frequently asked questions) to ensure that the parties were aware of 

these changes and of the appropriate geographical region in which to file cases. It will issue 

similar regulations and guidance materials to reflect the Boston Regional Office closure on 

November 30, 2018.

• FSIP

Due to the prioritization efforts of the new 7-Member Panel (July 2017) and the decrease in 

filings, FSIP began FY 2018 with no backlog of cases. In FY 2018, the FSIP exceeded all of its 

timeliness measures for assisting parties in resolving their negotiation impasses. Specifically, it 

issued its decision 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 100 percent (11/11) of 

cases. It assisted the parties in achieving voluntary settlement within 160 days of the date that 

the parties filed their requests for assistance in 86 percent (6/7) 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

(21/21) of cases.

For the first 3 quarters of FY 2018, the Panel received 92 filings (an average of 7 new filings 

each month). However, that trend is changing. As a result of the Administration’s May 2018 

issuance of Executive Orders 13836, 13837, and 13839, and the related OPM guidance to 

agencies regarding collective bargaining, the FSIP has begun to receive an increase in requests 

for assistance. Case filings increased to 9 cases filed in the month of September. The subject of 

the impasses has also begun to change, with a trend towards impasses over ground rules for 

successor collective-bargaining agreements and successor collective-bargaining agreements.
18
19
20

Mission Accomplishment – Providing Training and Education across the Federal Government

Consistent with its strategic goals, in FY 2018 the FLRA continued to promote stability in the 

Federal labor-management community by providing leadership and guidance through education 

and reference resources. 

The FLRA continued to provide web-based and in-person training nationwide to members of the 

Federal-sector labor-management community – union representatives, Agency representatives, 

and neutrals – in all aspects of its case law and processes. In FY 2018, the FLRA provided 124

training, outreach, and facilitation sessions to 4,829 participants. The Authority, the OGC, and 

the FSIP provided training at several nationwide, annual conferences, including the Society of 

Federal Labor and Employee Relations Professionals (SFLERP) symposium and the Federal

Dispute Resolution (FDR) conference. These sessions included presentations of newly prepared 

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

In addition, the Authority delivered its own training programs to approximately 1,500 Federalsector union representatives, Agency representatives, neutrals, and new Authority attorneys in 

FY 2018. This included several sessions highlighting notable developments in the Authority’s 

case law. Further, the Authority delivered three training sessions at the SFLERP symposium. 

These sessions included: “Filing with the FLRA – Common Grounds for Dismissals and a New 

eFiling System,” “Management Rights in Bargaining and Arbitration,” and an “FLRA Case Law 

Update.” The feedback received from SFLERP participants in these sessions was 

overwhelmingly positive. Moreover, the Authority’s Members personally conducted various 

training sessions on arbitration cases and other topics of interest to the Federal-sector labormanagement community, at events hosted by the American Bar Association, the Federal

Aviation Administration, FDR, and the Chicago-Kent College of Law.

The OGC continued to focus its training efforts on the front lines, where the work is done and 

where its efforts can have immediate and lasting effect. By bringing its training services directly 

to the parties, the OGC educates management and labor representatives on their rights and 

responsibilities under the Statute, thereby empowering them to more effectively and efficiently 

avoid – and, if necessary, resolve – workplace disputes at the lowest level. 

In FY 2018, the OGC scaled back its provision of training that required FLRA-funded travel due 

to budget uncertainty, but it still conducted 75 training sessions reaching over 2,600 union 

representatives and labor-relations representatives. The OGC also continued providing the 

parties with up-to-date and topical web-based resources, including its Representation Case Law 

Outline, ULP Case Law Outline, and Guidance on Meetings, which are the “go-to” resources for 

the Federal-sector labor-management relations community and have elicited much favorable 

feedback.

In FY 2018, the Authority’s Office of the Solicitor delivered numerous internal trainings to 

FLRA employees, on topics such as current developments in labor and employment law, Federal

ethics obligations, the Freedom of Information Act, and Federal privacy law. These trainings 

ensured that FLRA staff provided expert service to its stakeholders, in concert with their 

responsibilities as Federal employees.
21

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

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

impartial manner.

Performance Goal 1.1: Produce timely review and disposition of unfair-labor-practice 

cases.

Measure 1.1: The 

percentage of ULP charges 

resolved by the OGC by 

complaint, withdrawal, 

dismissal, or settlement 

within 120 days of filing 

of the charge.

70% 88% Exceeded

Measure 1.2: The 

percentage of decisions on 

an appeal of a Regional 

Director’s dismissal of a 

ULP charge issued within 

60 days of the date filed, 

and in no case more than 

120 days.

95%/100% 100%/100% Exceeded/Met

Measure 1.3: The 

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 180 

days of the complaint 

being issued.

80% 77% Substantially 

Met

Measure 1.4: The 

percentage of ULP cases 

decided within 150 days of 

assignment to an Authority 

Member.

75% 50% Not Met

Performance Goal 2.1: Resolve overage unfair-labor-practice cases in a timely fashion.

Measure 2.1: The 

percentage of ULP charges 

resolved by the OGC by 

complaint, withdrawal, 

dismissal, or settlement 

within 240 days of filing 

of the charge.

95% 99% Exceeded

Measure 2.2: The 98% 90% Not Met
22

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 365 

days of the complaint 

being issued.

Measure 2.3: The 

percentage of ULP cases 

decided within 365 days of 

assignment to an Authority 

Member.

95% 100% Exceeded

Performance Goal 1.2: Produce timely review and disposition of representation cases.

Measure 1.5: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

120 days of the filing of a 

petition.

70% 82% Exceeded

Measure 1.6: The 

percentage of 

representation cases in 

which the Authority issued 

a decision whether to grant 

review within 60 days of 

the filing of an application 

for review.

100% 100% Met
23

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

Performance Goal 2.2: Resolve overage representation cases in a timely fashion.

Measure 2.3: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

365 days of the filing of a 

petition.

95% 99% Exceeded

Measure 2.4: The 

percentage of 

representation cases in 

which the Authority grants 

review, where the 

Authority will issue a 

decision on review, or 

reach other final resolution 

of the case, within 365 

days of the filing of an 

application for review.

95% 100% Exceeded

Performance Goal 1.3: Produce timely review and disposition of arbitration cases.

Measure 1.7: The 

percentage of arbitration 

cases decided within 150

days of assignment to an 

Authority Member.

75% 38% Not Met

Performance Goal 2.3: Resolve overage arbitration cases in a timely fashion. 

Measure 2.5: The 

percentage of arbitration 

cases decided within 365

days of assignment to an 

Authority Member.

95% 98% Exceeded

Performance Goal 1.4: Produce timely review and disposition of negotiability cases.

Measure 1.8: The 

percentage of negotiability 

cases decided within 150 

days of assignment to an 

Authority Member.

75% 83% Exceeded
24

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

Performance Goal 2.4: Resolve overage negotiability cases in a timely fashion. 

Measure 2.6: The 

percentage of negotiability 

cases decided within 365

days of assignment to an 

Authority Member.

95% 100% Exceeded

Performance Goal 1.5: Produce timely review and disposition of bargaining-impasse cases.

Measure 1.9: The 

percentage of 

bargaining-impasse cases, 

in which jurisdiction is 

declined, closed within 

140 days of the date filed.

80% 100% Exceeded

Measure 1.10: The 

percentage of 

bargaining-impasse cases 

voluntarily settled after 

jurisdiction has been 

asserted within 160 days 

of the date filed.

70% 86% Exceeded

Measure 1.11: The 

percentage of 

bargaining-impasse cases 

resolved through a final 

action closed within 200 

days of the date filed.

70% 100% Exceeded

Strategic Goal 2: We will promote stability in the Federal labor-management community by 

providing leadership and guidance through ADR and Education. 

Performance Goal 1.1: Provide targeted access to training, outreach, and facilitation 

activities within the labor-management community.

Measure 1.1: The 

number of training, 

outreach, and facilitation 

activities conducted.

275 124 Not Met

Measure 1.2: The 

number of participants 

involved in training, 

outreach, and facilitation 

activities.

7000 4829 Not Met
25

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

Performance Goal 2.1: Successfully resolve a significant portion of FLRA cases through 

ADR.

Measure 2.1: The 

percentage of ULP cases 

in the OGC in which ADR 

services are offered.

95% 100% Exceeded

Measure 2.2: The 

percentage of ULP cases 

in the OGC in which an 

offer of ADR services is 

accepted by the parties that 

are partially or totally 

resolved.

95% 100% Exceeded

Measure 2.3: The 

percentage of appropriate 

ULP cases in the OALJ in 

which Settlement-Judge 

services are offered.

90% 100% Exceeded

Measure 2.4: The 

percentage of ULP cases 

in the OALJ in which an 

offer of Settlement-Judge 

services is accepted by the 

parties that are partially or 

totally resolved. 

85% 83% Substantially 

Met

Measure 2.5: The 

percentage of 

representation cases in the 

OGC in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved. 

95% 100% Exceeded
26

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

Measure 2.6: The 

percentage of appropriate 

arbitration cases in the 

Authority in which ADR 

services are offered.

100% 100% Met

Measure 2.7: The 

percentage of arbitration 

cases in the Authority in 

which an offer of ADR 

services is accepted by the 

parties that are partially or 

totally resolved.

50% 100% Exceeded

Measure 2.8: The 

percentage of appropriate 

negotiability cases in the 

Authority in which ADR 

services are offered.

100% 100% Met

Measure 2.9: The 

percentage of negotiability 

cases in the Authority in 

which ADR services are 

provided that are partially 

or totally resolved.

90% 100% Exceeded

Measure 2.10: The 

percentage of bargainingimpasse cases in which 

parties’ disputes are totally 

resolved voluntarily.

30% 17% Not Met
27

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

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

achieve organizational excellence. 

Performance Goal 1: Recruit, retain, and develop a highly talented, motivated, and diverse 

workforce to accomplish the FLRA’s mission. 

Measure 1.1: 

Demonstrate strong 

recruitment and retention 

practices.

Complete 

implementation of all 

necessary 

changes/corrections 

identified during the 

Agency-wide eOPF and 

PD reviews. 

Develop/revise and 

implement standard 

operating procedures that 

will help to maintain 

accurate personnel 

records going forward. 

Continue to conduct 

“need-to-fill” evaluations 

before filling any vacant 

positions. 

Implement workforce 

reshaping, consistent 

with Executive 

Order 13781 and M-17-

22.

Continue to use data to 

identify and eliminate 

barriers to recruiting and 

hiring the diverse talent 

that the FLRA needs.

Completed 

implementation of 

all necessary 

changes/corrections 

identified during the 

Agency-wide eOPF 

and PD reviews.

Implemented 

standard operating 

procedures for 

maintaining 

accurate eOPFs for 

all FLRA staff in 

order to support the 

provision of 

excellent customer 

service.

Continued to 

conduct “need-tofill” evaluations 

before filling any 

vacant positions, 

consistent with 

Executive

Order 13781 and M17-22.

Continued to use 

data to identify and 

eliminate barriers to 

recruiting and hiring 

the diverse talent 

that the FLRA 

needs.

Completed all 

Met
28

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

required securitybackground 

investigations for 

new hires and 

investigations/reinvestigations for 

existing employees.

Clarified the 

circumstances under 

which a new 

background check 

should be 

conducted. Ensured 

that all employees 

were HSPD-12 

compliant. 

Began a 

comprehensive 

review and revision, 

as appropriate, of all 

internal Agency

policies in order to 

ensure that they are 

up to date, 

necessary, and 

consistent with law 

and regulation. 

Measure 1.2: Maintain 

and grow Agency

expertise through 

employee development.

Building on the Agency’s 

evolving succession plan 

– which is designed to 

lessen the impact of 

institutional-knowledge 

loss as employees retire 

or leave and to maximize 

current talent utilization 

by closing leadership 

staffing and competency 

gaps/deficiencies –

develop a formal Agency

developmental-detail 

program, establishing 

Offered crosscomponent details 

to provide 

employees with 

training and 

developmental 

experiences that 

will enhance their 

skills and increase 

their understanding 

of the Agency’s 

mission and 

operations. 

Substantially 

Met
29

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

cross-component detail 

opportunities to provide 

employees with training 

and developmental 

experiences that will 

enhance their skills and 

increase their 

understanding of the 

Agency’s mission and 

operations across 

program lines, as well as 

the relevance of their 

work to the mission and 

programs of the FLRA. 

Managers will assess 

annually 100% of 

employees on their 

developmental needs and 

provide at least one 

targeted developmental 

opportunity to each of 

their staff members per 

year.

Maintain sustained 

growth of positive 

responses to the OPM 

FEVS question 

“supervisors in my work 

unit support employee 

development.”

Managers assessed 

annually employees 

on their 

developmental 

needs and provided 

appropriate training 

and developmental 

opportunities. 

Performance Goal 2: Improve use of existing technology and deploy new IT systems to 

streamline and enhance organizational operations.

Measure 2.1: Expand the 

use of eFiling. 75% of cases eFiled. 35% of cases 

eFiled. Not Met

Measure 2.2: Electronic 

end-to-end case 

processing.

Integrate the CMS and 

eFiling systems with the 

Agency Document 

Developed and 

launched eFiling 

3.0, which both 

Met
30

Performance Outcome 

Measures

FY 2018

Target

FY 2018

Actual Result

Management System, 

enabling end-to-end 

electronic case 

processing throughout 

the Agency. 

internal and external 

users report is 

significantly more 

user-friendly and 

intuitive. Began 

development of a 

new and improved 

CMS that, over 

time, will provide 

significant cost 

savings ($100,000 

annually) and allow 

for more efficient 

integration of the 

CMS and eFiling 

systems with the 

DMS, enabling endto-end electronic 

case processing 

throughout the 

Agency. Identified 

the basic structure 

of electronic case 

files for each 

component/office in 

the DMS. 

Completed 

transition of all 

major IT functions –

CMS, DMS, eMail 

– to the cloud, 

which improves 

both IT security, 

consistent with the 

PMA, and Agency

continuity of 

operations plans.
31

FINANCIAL ANALYSIS

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 2017 and FY 2018. 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 decreased to $4.6 million at the end of FY 2018 from $5.2 million at the end of 

FY 2017. The Agency did not make any new fixed-asset purchases in FY 2018, while the net 

book value of property and equipment already owned experienced further depreciation.

Assets as of September 30, 2018 2017

Fund balance with the Treasury $4,474,299 $4,981,469

General property and 

equipment

 

78,734 

 

187,819 

Prepaid expenses 

18,141 

 

5,429 

Accounts receivable 

10,114 

 

10,389 

Total $4,581,288 $5,185,106

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 85 percent of total liabilities at the end of FY 2018. The remaining 15 percent 

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

goods and services. Agency liabilities totaled $4.4 million in FY 2017, and $4.2 million in 

FY 2018.
32

The FLRA’s total net position at the end of FY 2018 was $371 thousand, a $413 thousand 

decrease 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 2018 was $27.2 million, which is $680 thousand above FY 2017. In FY 2018, 55 percent 

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

administrative services provided to the entire Agency; 42 percent were dedicated to the OGC; 

and the remaining 3 percent were devoted to the FSIP.

Liabilities as of September 30, 2018 2017

Unfunded leave $1,102,800 $1,239,740

FECA liability 1,471,575 1,496,960

Accrued payroll and benefits 980,575 738,689

Accounts payable 654,739 924,780

Other liabilities 261 

Total $4,209,950 4,400,169 

Totals may not add due to rounding; 2018 FECA liability includes $261K (Other liability)

FY 2018 Financial Obligations by Budget Object Class

Compensation & benefits (78%)

Rent & utilities (10%)

Other contractual services (9%)

Communications (1%)

Supplies & equipment (1%)

Travel & transportation (1%)
33

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 2017 to FY 2018 reflect a $54 thousand decrease

totaling $2.4 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 a 

decrease of $468 thousand in total, unexpended Agency appropriations in FY 2018.

Statement on Budgetary Resources

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

during FY 2017 and FY 2018 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 $27.1 million in total budgetary resources available to it in FY 2018. The 

Agency incurred obligations of $26.4 million in FY 2018, with recording outlays of $26.1

million. Total budgetary resources decreased by $327 thousand in FY 2018, due primarily to the 

timing of unpaid obligations. 
34

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, 2018, 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

November 15, 2018
35

PERFORMANCE GOALS AND RESULTS

STRATEGIC GOAL 1: WE WILL RESOLVE DISPUTES UNDER THE 

STATUTE IN A TIMELY, HIGH-QUALITY, AND IMPARTIAL MANNER

PERFORMANCE GOAL 1.1: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF UNFAIR-LABOR-PRACTICE CASES.

The General Counsel has independent responsibility for the investigation, settlement, and 

prosecution of ULP charges. ULP cases originate with the filing of a charge in a Regional Office 

by an employee, a labor organization, or an Agency. Once a charge has been filed, the Regional 

Office will investigate the charge to determine whether it has merit. If the Regional Director 

determines that the charge has merit, then he or she will, absent settlement, issue and prosecute a 

complaint before an ALJ. If the Regional Director determines that the charge lacks merit, then 

the charging party is entitled to a written explanation, and, if not satisfied, may appeal that 

decision to the General Counsel in Washington, D.C. If the General Counsel upholds the 

dismissal, then the case is closed. The Authority has appointed ALJs to hear ULP cases 

prosecuted by the General Counsel. The OALJ transmits recommended decisions of the ALJs to 

the Authority, which may affirm, modify, or reverse them in whole or in part on exceptions. If 

no exceptions are filed to an ALJ’s decision, then the Authority adopts the decision without 

precedential significance. 

OGC FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 1,570 1,425 1,178 1,333 882

Charges filed 4,696 4,418 4,345 3,655 2,860

Total caseload 6,266 5,843 5,523 4,988 3,742

Charges withdrawn/settled 3,779 3,662 3,268 3,130 2,343

Charges dismissed 809 800 749 786 674

Complaints issued 253 203 173 190 43

Total cases closed 4,841 4,665 4,190 4,106 3,060

Cases pending, end of year 1,425 1,178 1,333 882 682

OALJ FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 121 104 60 52 49

Cases received from the OGC 260 222 179 197 44

Total caseload 381 326 239 249 93

Settlements before decision 247 188 136 176 66

Cases closed by decision 30 78 51 24 27

Total cases closed 277 266 187 200 93

Cases pending, end of year 104 60 52 49 0
36

Authority FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 12 13 24 9 8

Exceptions filed 27 62 45 23 19

Total caseload 39 75 69 32 27

Cases closed procedurally 18 37 51 22 9

Cases closed based on merits 8 14 9 2 8

Total cases closed 26 51 60 24 17

Cases pending, end of year 13 24 9 8 10

Measure 1.1: The percentage of ULP charges resolved by the Office of the General Counsel 

(OGC) by complaint, withdrawal, dismissal, or settlement within 120 days of filing of the 

charge.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

67% 72% 71% 73% 70% 88%

Data Source: Case Management System (CMS)

Target: Exceeded. 

Measure 1.2: The percentage of decisions on an appeal of a Regional Director’s dismissal of 

a ULP charge issued within 60 days of the date filed, and in no case more than 120 days.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

98%/100% 98%/100% 100%/100% 96%/100% 95%/100% 100%/100%

Data Source: CMS

Target: Exceeded.
37

Measure 1.3: The percentage of ULP complaints issued by the General Counsel resolved or 

decided in the OALJ within 180 days of the complaint being issued.

FY 2014 FY 2015

Actual Actual

91% 77%

Measure 1.3: The percentage of ULP complaints issued by the General Counsel decided in the 

OALJ within 180 days of the complaint being issued.*

FY 2016 FY 2017 FY 2018 *Clarified measure beginning in FY 2016

Actual Actual Target Actual

80% 93% 80% 77%

Data Source: CMS

Target: Substantially Met. 

Measure 1.4: The percentage of ULP cases decided within 180 days of assignment to an 

Authority Member.

FY 2014 FY 2015 FY 2016

Actual Actual Actual

50% 57% 89%

Measure 1.4: The percentage of ULP cases decided within 150 days of assignment to an 

Authority Member.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

50% 75% 50%

Data Source: CMS

Target: Not Met. The low inventory of ULP cases contributed to the Authority’s inability to 

meet this goal in FY 2018. The Authority issued only eight ULP decisions total in FY 2018 –

four timely and four untimely. The backlog that resulted from the lack of a full complement of 

Members was also a factor: all four of the untimely ULP cases were awaiting a decision when 

the Authority attained a full complement of Members, and two of those four had already gone 

overage while the Authority lacked a third Member. Thus, the Authority was not able to 

improve upon its 50% performance in this measure from the previous FY.
38

PERFORMANCE GOAL 2.1: RESOLVE OVERAGE 

UNFAIR-LABOR-PRACTICE CASES IN A TIMELY FASHION.

As part of its 2015-2018 Strategic Plan, the FLRA developed new performance measures for 

FY 2016 and FY 2017 to ensure that cases in which the primary timeliness goal is not met are 

sufficiently targeted and do not go significantly overage. 

Measure 2.1: The percentage of ULP charges resolved by the OGC by complaint, withdrawal, 

dismissal, or settlement within 240 days of filing of the charge.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

95% 95% 95% 99%

Data Source: CMS

Target: Exceeded. 

Measure 2.2: The percentage of ULP complaints issued by the General Counsel decided in 

the OALJ within 365 days of the complaint being issued.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

89% 98% 98% 90%

Data Source: CMS

Target: Not Met. The 90% success rate (84 of 93) was driven by the General Counsel 

vacancy, which eliminated receipt of new cases ripe for early resolution and resulted in older, 

more complicated cases requiring a hearing having a disproportionate impact upon the 

percentage of cases resolved within 365 days. The goal of 98% was difficult to achieve when 

the oldest, most difficult cases carried over from the prior fiscal year become a disproportionate 

number of the total dispositions issued. Such complicated cases are typically the subject of 

multiple delays requested by the parties due to counsel and witness availability (necessary for 

due process). Had it been known that 27 of the cases requiring a fully litigated hearing and 

written decision would represent almost one-third (29%) of the dispositions issued in FY18, a 

less ambitious goal would have been requested.

Measure 2.3: The percentage of ULP cases decided within 365 days of assignment to an 

Authority Member.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 95% 100%

Data Source: CMS

Target: Exceeded. 
39

PERFORMANCE GOAL 1.2: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF REPRESENTATION CASES.

The Statute sets out a specific procedure for employees to petition to be represented by a labor 

union and to determine which employees will be included in a “bargaining unit” that a union 

represents. Implementing this procedure, the FLRA conducts secret-ballot elections for union 

representation and resolves a variety of issues related to questions of union representation of 

employees. These issues include, for example, whether particular employees are managers or 

“confidential” employees excluded from union representation, whether there has been election 

misconduct on the part of agencies or unions, and whether changes in union and Agency

organizations affect existing bargaining units. Representation cases are initiated when an 

individual, a labor organization, or an Agency files a petition with a Regional Office. After a 

petition is filed, the Regional Director conducts an investigation to determine the appropriateness 

of a unit or other matter related to the petition. After concluding such investigation, the Regional 

Director may conduct a secret-ballot election or hold a hearing to resolve disputed factual 

matters. After a hearing, the Regional Director issues a Decision and Order, which is final 

unless an application for review is filed with the Authority.

OGC FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 89 65 70 112 58

Petitions filed 235 225 265 208 245

Total caseload 324 290 335 320 303

Petitions withdrawn 118 95 112 130 110

Cases closed based on merits 141 125 111 132 129

Total cases closed 259 220 223 262 239

Cases pending, end of year 65 70 112 58 64

Authority FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 9 7 2 0 6

Applications for review 13 16 6 12 6

Total caseload 22 23 8 12 12

Cases closed procedurally 2 2 0 1 0

Cases closed based on merits 13 19 8 5 7

Total cases closed 15 21 8 6 7

Cases pending, end of year 7 2 0 6 5
40

Measure 1.5: The percentage of representation cases resolved by the OGC through 

withdrawal, election, or issuance of a Decision and Order within 120 days of the filing of a 

petition.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

66% 72% 73% 68% 70% 82%

Data Source: CMS

Target: Exceeded. 

Measure 1.6: The percentage of representation cases in which the Authority issued a decision 

whether to grant review within 60 days of the filing of an application for review.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

100% 100% 100% 100% 100% 100%

Data Source: CMS

Target: Met.

PERFORMANCE GOAL 2.2: RESOLVE OVERAGE REPRESENTATION 

CASES IN A TIMELY FASHION.

As part of its 2015-2018 Strategic Plan, the FLRA developed new performance measures for 

FY 2016 and FY 2017 to ensure that cases in which the primary timeliness goal is not met are 

sufficiently targeted and do not go significantly overage.

 

Measure 2.3: The percentage of cases resolved by the OGC through withdrawal, election, or 

issuance of a Decision and Order within 365 days of the filing of a petition.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

98% 95% 95% 99%

Data Source: CMS

Target: Exceeded. 
41

Measure 2.4: The percentage of representation cases in which the Authority grants review, 

where the Authority will issue a decision on review, or reach other final resolution of the case, 

within 365 days of the filing of the application for review.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 95% 100%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.3: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF ARBITRATION CASES.

Either party to grievance arbitration may file with the Authority an exception (appeal) to an 

arbitrator’s award. The Authority will review an arbitrator’s award to which an exception has 

been filed to determine whether the award is deficient because it is contrary to any law, rule, or 

regulation, or on grounds similar to those applied by Federal courts in private-sector, labormanagement relations.

Authority FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 123 90 50 42 73

Exceptions filed 89 99 87 103 105

Total caseload 212 189 137 145 178

Cases closed procedurally 16 15 20 16 11

Cases closed based on merits 106 124 75 56 94

Total cases closed 122 139 95 72 105

Cases pending, end of year 90 50 42 73 73
42

Measure 1.7: The percentage of arbitration cases decided within 180 days of assignment to an 

Authority Member.

FY 2014 FY 2015 FY 2016

Actual Actual Actual

34% 40% 79%

Measure 1.7: The percentage of arbitration cases decided within 150 days of assignment to an 

Authority Member.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

78% 75% 38%

Data Source: CMS

Target: Not Met. The backlog that resulted from the lack of full complement of Members 

contributed to the Authority’s inability to meet this goal in FY 2018. Because the Authority 

made a strategic decision to focus on issuing its oldest cases in order to clear the backlog, only 

36 of the 94 arbitration decisions it issued were timely.

PERFORMANCE GOAL 2.3: RESOLVE OVERAGE ARBITRATION 

CASES IN A TIMELY FASHION.

As part of its 2015-2018 Strategic Plan, the FLRA developed new performance measures for 

FY 2016 and FY 2017 to ensure that cases in which the primary timeliness goal is not met are 

sufficiently targeted and do not go significantly overage.

Measure 2.5: The percentage of arbitration cases decided within 365 days of assignment to an 

Authority Member *

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 95% 98%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.4: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF NEGOTIABILITY CASES.

A Federal Agency bargaining with a union may claim that a particular union proposal cannot be 

bargained because it conflicts with Federal law, a government-wide rule or regulation, or an 

Agency regulation for which there is a compelling need. In both of these situations, a union may 
43

petition the Authority to resolve the negotiability dispute. In addition, Agency heads may 

disapprove collective-bargaining agreements if those agreements are contrary to law, and a union 

may petition the Authority to resolve the negotiability dispute. 

Authority FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 9 17 23 27 11

Petitions filed 43 54 55 40 43

Total caseload 52 71 78 67 54

Cases closed procedurally 29 40 47 52 25

Cases closed based on merits 6 8 4 4 6

Total cases closed 35 48 51 56 31

Cases pending, end of year 17 23 27 11 23

Measure 1.8: The percentage of negotiability cases decided within 180 days of assignment to an 

Authority Member.

Results

FY 2014 FY 2015 FY 2016

60% 50% 75%

Measure 1.8: The percentage of negotiability cases decided within 150 days of assignment to an 

Authority Member.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

75% 75% 83%

Data Source: CMS

Target: Met. 

PERFORMANCE GOAL 2.4: RESOLVE OVERAGE NEGOTIABILITY 

CASES IN A TIMELY FASHION.

As part of its 2015-2018 Strategic Plan, the FLRA developed new performance measures for 

FY 2016 and FY 2017 to ensure that cases in which the primary timeliness goal is not met are 

sufficiently targeted and do not go significantly overage.

Measure 2.6: The percentage of negotiability cases decided within 365 days of assignment to 

an Authority Member *

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 95% 100%
44

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.5: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF BARGAINING-IMPASSE CASES.

In carrying out the right to bargain collectively, it is not uncommon for a union representative 

and a Federal Agency to simply not agree on certain issues, and for the bargaining to reach an 

impasse. Several options are available by which the parties may attempt to resolve the impasse. 

The parties may: decide, on their own, to use certain techniques to resolve the impasse, but may 

proceed to private, binding arbitration only after the FSIP approves the procedure; seek the 

services and assistance of the FMCS; or seek the assistance of the FSIP in resolving the 

negotiation impasse, but only after the previous options have failed.

FSIP FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Cases pending, start of year 40 28 33 42 17

Impasses filed 134 139 143 97 92

Total caseload 174 167 176 139 109

Cases closed 146 134 134 122 86

Cases pending, end of year 28 33 42 17 23

Measure 1.9: The percentage of bargaining-impasse cases, in which jurisdiction is declined,

closed within 140 days of the date filed.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

89% 100% 80% 93% 80% 100%

Data Source: CMS

Target: Exceeded

Measure 1.10: The percentage of bargaining-impasse cases voluntarily settled after 

jurisdiction has been asserted within 160 days of the date filed.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

68% 100% 100% 93% 70% 86%

Data Source: CMS

Target: Exceeded
45

Measure 1.11: The percentage of bargaining-impasse cases resolved through a final action 

closed within 200 days of the date filed.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

61% 100% 100% 77% 70% 100%

Data Source: CMS

Target: Exceeded

STRATEGIC GOAL 2: WE WILL PROMOTE STABILITY IN THE 

FEDERAL LABOR-MANAGEMENT COMMUNITY BY PROVIDING 

LEADERSHIP AND GUIDANCE THROUGH ADR AND EDUCATION

Key to the FLRA’s ADR objectives is to offer high-quality outreach and preventive services, as 

well as resources, to promote more effective labor-management relations across the Federal

government. ADR is an informal process that allows parties to discuss and develop their 

interests in order to resolve the underlying issues and problems in their relationships. This 

includes interest-based conflict resolution and intervention services in pending cases. The 

Agency also provides facilitation and training to help labor and management develop 

collaborative relationships. Many of the FLRA’s training programs are available as web-based 

training modules, bringing educational tools and resources directly to Agency customers at their 

desks to further assist them in resolving labor-management disputes. The FLRA’s goals include 

delivering outreach, training, and facilitation services that significantly contribute to the mission 

of the FLRA, and ensuring that training participants evaluate FLRA training as highly effective. 

PERFORMANCE GOAL 1.1: PROVIDE TARGETED ACCESS TO 

TRAINING, OUTREACH, AND FACILITATION ACTIVITIES WITHIN 

THE LABOR-MANAGEMENT COMMUNITY.

Measure 1.1: The number of training, outreach, and facilitation activities conducted.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

225 306 280 273 275 124

Data Source: CMS

Target: Not Met. The Authority scaled back its external training efforts in FY 2018 to 

ensure that all available staff was working to eliminate the backlog of overage cases and this 

contributed to the Agency’s inability to meet this goal. However, the Authority educated the 

parties through its issued decisions, particularly those on previously unaddressed legal 

issues. To that end, many of the trainings that it provided in FY 2018 were “Case Law 

Updates.” The OGC consistently provided statutory training efforts across the country. Due 

to budget uncertainty, the OGC scaled back its provision of training that required FLRA-
46

funded travel, and this also contributed to the Agency’s inability to meet this goal.

Measure 1.2: The number of participants involved in training, outreach, and facilitation 

activities.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

5,114 8,294 8,440 8,122 7000 4829

Data Source: CMS

Target: Not Met. The Authority scaled back its external training efforts in FY 2018 to 

ensure that all available staff was working to eliminate the backlog of overage cases and this 

contributed to the Agency’s inability to meet this goal. However, the Authority educated the 

parties through its issued decisions, particularly those on previously unaddressed legal 

issues. To that end, many of the trainings that it provided in FY 2018 were “Case Law 

Updates.” The OGC consistently provided statutory training efforts across the country. Due 

to budget uncertainty, the OGC scaled back its provision of training that required FLRAfunded travel, and this also contributed to the Agency’s inability to meet this goal.

PERFORMANCE GOAL 2.1: SUCCESSFULLY RESOLVE A 

SIGNIFICANT PORTION OF FLRA CASES THROUGH ADR.

ADR is an informal process that allows parties to discuss and develop their interests in order to 

resolve the underlying issues and problems in their relationships. This includes interest-based 

conflict resolution and intervention services in pending cases. 

Measure 2.1: The percentage of appropriate ULP cases in the OGC in which ADR services are 

offered.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 95% 100%

Data Source: CMS

Target: Exceeded.
47

Measure 2.2: The percentage of ULP cases in the OGC in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.**

**Renumbered measure beginning in FY 2017; previously Measure 2.1

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

98% 96% 97% 100% 95% 100%

Data Source: CMS

Target: Exceeded. 

Measure 2.3: The percentage of appropriate ULP cases in the OALJ in which SettlementJudge Services are offered.*

FY 2017 FY 2018 *New measure beginning in FY 2017

Actual Target Actual

100% 90% 100%

Data Source: CMS

Target: Exceeded. 

Measure 2.4: The percentage of ULP cases in the OALJ in which an offer of 

Settlement-Judge services is accepted by the parties that are partially or totally resolved.**

**Renumbered measure beginning in FY 2017; previously Measure 2.2

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

96% 87% 74% 93% 85% 83%

Data Source: CMS

Target: Substantially Met.

Measure 2.5: The percentage of representation cases in the OGC in which an offer of ADR 

services is accepted by the parties that are partially or totally resolved.**

**Renumbered measure beginning in FY 2017; previously Measure 2.3

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

100% 100% 96% 100% 95% 100%

Data Source: CMS

Target: Exceeded.
48

Measure 2.6: The percentage of appropriate arbitration cases in the Authority in which ADR 

services are offered.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

100% 100% 100% 100%

Data Source: CMS

Target: Met.

Measure 2.ht are partially or totally resolved.*

Measure 2.7: The percentage of arbitration cases in the Authority in which an offer of ADR 

services is accepted by the parties that are partially or totally resolved.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Actual Actual Actual Actual Target Actual

80% 43% 79% 80% 50% 100%

Data Source: CMS

Target: Exceeded.

Measure 2.8: The percentage of appropriate negotiability cases in the Authority in which ADR 

services are offered.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Target Actual Target Actual

100% 100% 100% 100%

Data Source: CMS

Target: Met.

Measure 2.9: The percentage of proposals or provisions – in negotiability cases in which an 

offer of ADR services is accepted by the parties – that are partially or totally resolved.

FY 2014 FY 2015

Actual Actual

100% 100%

Measure 2.9: The percentage of negotiability cases in which ADR services are provided that 

are partially or totally resolved.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

100% 100% 90% 100%

Data Source: CMS

Target: Exceeded.
49

Measure 2.10: The percentage of bargaining-impasse cases in which an offer of ADR services 

is accepted by the parties that are partially or totally resolved.

FY 2014 FY 2015

Actual Actual

27% 39%

Measure 2.10: The percentage of bargaining-impasse cases in which parties’ disputes are totally 

resolved voluntarily.*

FY 2016 FY 2017 FY 2018 *New measure beginning in FY 2016

Actual Actual Target Actual

27% 30% 30% 17%

Data Source: CMS

Target: Not Met. The Panel and its staff work directly with each party in every filing of 

request for assistance to help the parties find a voluntary settlement of some or all of the 

remaining issues at impasse. While we strive to reach the goal of helping the parties to achieve 

voluntary resolution of at least 30% of the filings, at times, the Panel must exercise the option of 

ordering resolution of the final remaining issues in the impasse to bring the matter to closure.

STRATEGIC GOAL 3: WE WILL MANAGE OUR RESOURCES 

EFFECTIVELY AND EFFICIENTLY IN ORDER TO ACHIEVE 

ORGANIZATIONAL EXCELLENCE

The FLRA’s ability to fulfill its core mission under the Statute depends on excellent management 

of the organization and its resources. The organizational-excellence goal emphasizes how the 

Agency’s employees, IT infrastructure, and allocation of resources are central to achieving all of 

the strategic goals and objectives outlined in the strategic plan. 

The landscape of the Federal workplace and workforce continues to evolve, as do the needs of 

the parties that the FLRA serves. Approximately 29 percent of the FLRA’s workforce has been 

with the Agency for five years or less. Many of the Agency’s most experienced employees are 

currently eligible to retire, and 23 percent of the workforce is eligible to retire in the next 5 years. 

In light of these facts, it is crucial for the FLRA to simultaneously focus on developing the 

workforce of the future, while retaining valuable institutional knowledge. 

The Agency is prepared to meet ever-changing business demands through the innovative use of 

IT to best manage the workload and interact with parties. The FLRA continues to be an effective 

steward of taxpayer dollars, with a renewed focus on maximizing the use of data to inform 

decision making. The Agency’s future operational approaches are designed to foster nimble and 

seamless deployment of resources coupled with cost-avoidance strategies to support productive 

labor-management relations across the Federal government. And, consistent with the PMA, the 

FLRA has a comprehensive, forward-looking plan to increase quality and value in its 

administrative functions, continue efforts to enhance productivity and achieve cost savings, 
50

unlock the full potential of its workforce, and build the FLRA’s workplace and workforce for the 

future.

PERFORMANCE GOAL 1: RECRUIT, RETAIN, AND DEVELOP A 

HIGHLY TALENTED, MOTIVATED, AND DIVERSE WORKFORCE TO 

ACCOMPLISH THE FLRA’S MISSION.

In FY 2018, the FLRA provided high quality performance and service delivery. The Agency

continued a commitment to empowering and developing a highly engaged and effective 

workforce. The success of FLRA employees is instrumental to its success as an Agency. The 

staff-driven Strategic Plan 2018-2022 created in FY 2018 demonstrates the spirit that the FLRA 

actively manages in its human-capital programs. 

Measure 1.1: Program managers ensure that the right employees are in the right place to achieve 

results.

FY 2014 Actual

Focused on succession planning by increasing targeted attorney 

recruitment. Renewed agreement with the University of Maryland 

for discounted tuition for Agency employees. Increased Agency

resources through recruitment, staffing, and placement. Utilized 

the Student Pathways and Summer Externship programs to 

increase resources for casework and administrative initiatives 

throughout the Agency. Realigned functions within the Agency’s 

Office of the Executive Director to allow for improved 

efficiencies and customer service to Agency employees. Worked 

extensively with managers to hold employees accountable for 

performance and development. Updated Attorney Recruitment 

Policy in order to allow managers greater hiring flexibility of the 

Agency’s mission-critical occupation and to streamline the 

recruitment process. In collaboration with the Partnership for 

Public Service’s Excellence in Government Fellows program, 

developed and piloted an Employee Onboarding Handbook to 

improve the onboarding process and increase employee 

engagement.

FY 2015 Actual

Implemented a fully automated and integrated electronic system 

for personnel actions. Developed a more robust onboarding 

process through increased use of technology and piloted 

implementation of an Employee Onboarding Handbook. Updated 

certain human-resources policies and procedures. Continued to 

build internal capacity for handling the major human-resources 

functional areas. Position descriptions continued to be updated 

and now allow for greater growth and advancement opportunities 

within the Agency, and employees readily volunteered for 

collateral-duty assignments, new initiatives, and projects. The 

Agency also renewed its agreement with a local university to offer 

discounted tuition to FLRA employees for self-directed study. 

Improved office customer service by improving the quality of 
51

advice provided to managers and employees. Worked with 

managers to educate them about and increase diversity and 

inclusion when seeking new Agency talent. The Agency achieved 

greater diversity in its workforce in FY 2015 by increasing 

strategic and targeted recruitment and posting job opportunities 

with career-planning and placement services, local colleges and 

universities, and professional affinity-group organizations. With 

respect to succession planning, the FLRA continued to offer crosscomponent developmental details and its training initiative 

designed to assist higher-graded employees identify and 

strengthen critical leadership skills in preparation for eventually 

transitioning to formal leadership positions. To strengthen and 

support the FLRA’s new cadre of first-time managers and 

supervisors, the Agency identified a series of trainings geared 

towards developing strategic thinking and other critical skills in 

preparation for executive leadership at the FLRA. These training 

initiatives crossed components, bringing together future Agency

leaders from all offices to enhance their skills and encourage 

collaboration among peers. 

Measure 1.1: Demonstrate strong recruitment and retention practices.*

*New measure beginning in FY 2016

FY 2016 Actual

Strengthened diversity and inclusion recruitment efforts by, 

among other things, establishing and implementing a process for 

sharing job announcements with relevant affinity groups. 

Continued to enhance strategic and targeted recruitment by 

posting job opportunities with career-planning and placement 

services, local colleges and universities, and professional affinitygroup organizations. Used data to help identify and eliminate 

barriers to recruiting and hiring the diverse talent that it needs. 

Worked to strengthen operational offices by seeking feedback 

through semi-annual and point-of-service surveys. Continued 

efforts to revise and implement a robust Agency-wide onboarding 

program, which will include briefings and continuing educational 

opportunities for employees to strengthen their FLRA knowledge.

Strengthened recognition and promotion of cultural-based 

celebrations, establishing an employee-driven initiative to develop 

and promote events and activities. Targeted efforts to educate 

managers about, and increase diversity and inclusion when, 

seeking new Agency talent, and continued efforts to train Agency

staff at all levels on key diversity and inclusion issues. Revised 

manager performance plans to include diversity-and- inclusionfocused metrics. Recognized with #1 small-Agency ranking in 

terms of the “New IQ” Index, which provides insights into 
52

employee perceptions of the inclusiveness of the Agency by 

looking at twenty questions that measure the five “Habits of 

Inclusion” – Fair, Open, Cooperative, Supportive, and 

Empowering. The FLRA was the top-ranking small-Agency for 

each of the five habits of inclusion, with scores averaging 15

percent – and as much as 21 percent – higher than the average 

scores for all small agencies. And in the 2015 Best Places to 

Work in the Federal Government rankings, the FLRA was ranked 

#2 out of 28 small agencies in its support for diversity. 

FY 2017 Actual

Continued to develop capacity for shared administrative staff 

across several offices by utilizing administrative staff within the 

Authority Component – particularly those who are in 

“confidential” positions to Agency leadership – to provide 

administrative assistance to the HR, Budget & Finance, and Equal 

Employment Opportunity (EEO) Offices, which perform sensitive 

work. Not only does this provide administrative staff with a 

developmental opportunity, but it also allows for greater 

flexibility, relieves high-graded managerial staff from having to 

perform lower-graded administrative tasks, and avoids the need to 

hire additional FTEs when workloads increase within the 

component. 

Aligned the Agency-wide Performance Year (previously July 1 -

June 30) with the Fiscal Year. This alignment directly links every 

employee’s individual performance to the FLRA’s overall 

strategic and performance goals, as well as to the Agency’s annual 

budget and funding requests. It will provide a more accurate 

measurement of each employee’s contribution towards 

achievement of Agency-wide performance goals, greater 

accountability, and better data regarding resource needs. 

Conducted an Agency-wide review of all Agency electronic 

Official Personnel Folders (eOPFs) to: ensure proper retirement 

coverage (CSRS or FERS); verify the accuracy of service 

computation dates (SCDs) for both leave and retirement purposes; 

and examine all folders for missing or undocumented prior 

service.

 

Conducted an Agency-wide review of every Agency position 

description (PD) to ensure that all PDs reflect actual duties and 

that accompanying cover sheets are accurate, and revised PDs that 

needed revision or that were very dated, which has been 

particularly critical in conducting “need-to-fill” evaluations and 

drafting recent vacancy announcements. 

FY 2018 Target Complete implementation of all necessary changes/corrections 

identified during the Agency-wide eOPF and PD reviews. 
53

Develop/revise and implement standard operating procedures that 

will help to maintain accurate personnel records going forward. 

Continue to conduct “need-to-fill” evaluations before filling any 

vacant positions. 

Implement workforce reshaping, consistent with Executive 

Order 13781 and M-17-22.

Continue to use data to identify and eliminate barriers to recruiting 

and hiring the diverse talent that the FLRA needs.

Actual

Completed implementation of all necessary changes/corrections 

identified during the Agency-wide eOPF and PD reviews. 

Implemented standard operating procedures for maintaining 

accurate eOPFs for all FLRA staff in order to support the 

provision of excellent customer service.

Continued to conduct “need-to-fill” evaluations before filling any 

vacant positions, consistent with Executive Order 13781 and M17-22.

Continued to use data to identify and eliminate barriers to 

recruiting and hiring the diverse talent that the FLRA needs.

Completed all required security-background investigations for 

new hires and investigations/re-investigations for existing 

employees. Clarified the circumstances under which a new 

background check should be conducted. Ensured that all 

employees were HSPD-12 compliant. 

Began a comprehensive review and revision, as appropriate, of all 

internal Agency policies in order to ensure that they are up to date, 

necessary, and consistent with law and regulation. 

Data Source: FLRA Human Resources Division

Target: Met.

Measure 1.2: Maintain and grow Agency expertise through employee development.*

*New measure beginning in FY 2016

FY 2016 Actual

Successfully implemented numerous cross-component 

developmental opportunities for employees, including workgroups 

to encourage innovation, the development and delivery of 
54

training, and more than ten detail opportunities at all levels and 

offices within the Agency. 

Continued a robust training initiative focusing on leadership and 

skills development. Addressed temporary mission needs, 

maximized Student Pathways and student-internship programs, 

and utilized developmental details within the existing workforce. 

Provided all new managers and supervisors with leadershiptraining opportunities, and implemented ongoing executivetraining plans aimed at developing executive-level talent among 

the FLRA’s existing workforce. 

Continued its overall success and improvement as measured by 

the FEVS, leaving no doubt that the FLRA continues to have a 

highly engaged workforce that is dedicated to the accomplishment 

of its mission. The results of the survey reflected the Agency’s 

continuous growth in overall employee satisfaction, as 

demonstrated by the FLRA ranking as the #1 small Agency in two 

important indices – Employee Engagement and New IQ – and the 

increase in 2016 positive ratings in 19 items from 2015. In 

addition, the FLRA had 66 identified strengths (items with 65% or 

higher positive ratings) and no identified challenges (items with 

35% or higher negative ratings). And the Agency’s scores were 

above the government-wide average in 69 out of 71 questions. Of 

particular note was that: 97% of FLRA respondents reported that 

they were held accountable for achieving results; 96% positively 

rated the overall quality of the work done by their work unit; 96%

indicated that they are willing to put in extra effort to get a job 

done; 94% knew how their work related to the Agency’s goals and 

priorities; 94% thought that the people they worked with 

cooperated to get the job done; 94% believed that the Agency was

successful at accomplishing its mission; 93% found that the 

workforce had the job-relevant knowledge and skills necessary to 

accomplish organizational goals; 92% indicated that their 

supervisors regularly communicated with them about their 

performance; and 91% stated that employees in their work unit 

shared job knowledge with each other. Moreover, the Agency

maintained its sustained growth of positive responses to the 

question “supervisors in my work unit support employee 

development” – increasing by nearly 9.5% over 2015.

FY 2017 Actual

Continued to develop capacity for shared administrative staff 

across several offices by utilizing administrative staff within the 

Authority Component – particularly those who are in 

“confidential” positions to Agency leadership – to provide 

administrative assistance to the HR, Budget & Finance, and Equal 

Employment Opportunity (EEO) Offices, which perform sensitive 
55

work. Not only does this provide administrative staff with a 

developmental opportunity, but it also allows for greater 

flexibility, relieves high-graded managerial staff from having to 

perform lower-graded administrative tasks, and avoids the need to 

hire additional FTEs when workloads increase within the 

component. 

Most managers assessed all of their employees on their 

developmental needs and provided at least one targeted 

developmental opportunity to each. Training budgets for every 

office were reduced by 25% in FY 2017, so there was a reduced 

ability to procure outside training. This resulted in managers 

finding in-house opportunities to help develop their employees 

through details (e.g., Acting Chief Information Officer), work 

groups (e.g., eFiling), and special projects (e.g., revising FLRA 

policies).

In the 2017 FEVS, 78% of FLRA employees responded positively 

to the OPM FEVS question “supervisors in my work unit support 

employee development” (Q. 47). Although this represents a 6%

decrease from 2016, it is nonetheless 5% above the small-Agency

score of 73%, and 10% above the Government-wide score of 

68%. 

In FY 2017, the FLRA continued its overall success as measured 

by the FEVS, leaving no doubt that the FLRA’s investments in the 

recruitment, retention, and skills and leadership development of 

its employees continues to produce a highly engaged workforce 

that is dedicated to the accomplishment of its mission. The results 

of the 2017 survey reflect that the FLRA has 55 identified 

strengths (items with 65% or higher positive ratings) and no 

identified challenges (items with 35% or higher negative ratings). 

Compared to 2016, the FLRA increased its positive ratings for 15 

questions, experienced no change in its positive ratings for 4 

questions, and decreased its positive ratings for 52 questions. The 

Agency outperformed the Government-wide average in 70 out of 

71 questions. And the FLRA continues to rank in the top ten 

among small agencies (those with 100-999 employees) in two 

important indices – Employee Engagement and New IQ – with #6 

and #5 rankings, respectively. With an Employee Engagement 

Index score of 77% and a New IQ Index score of 71%, the FLRA 

exceeds the Government-wide average for each index, as well as 

for every sub-category of each index. In addition, the FLRA’s 

Global Satisfaction index score of 72% – well above the 

Government-wide average of 64% – is a positive indicator of 

employees’ overall workplace satisfaction. 
56

As to the Agency’s 55 identified strengths, of particular note is 

that: 99% of FLRA respondents indicate that they are willing to 

put in extra effort to get a job done; 98% positively rate the 

overall quality of work done by their work unit; 97% report that 

they are held accountable for achieving results; 95% know how 

their work relates to the Agency’s goals and priorities; and 92%

say that they are constantly looking for ways to do their jobs 

better. These results show that employees understand the FLRA’s 

mission, understand their role in achieving it, and see themselves 

as an integral part of achieving Agency-wide success. 

In addition to its top-ten rankings in the Employee Engagement 

and New IQ Indexes and increased ratings in 15 questions, FLRA 

employees also identified areas for improvement. These areas 

include opportunities for advancement, meaningful recognition of 

differences in performance, encouragement of creativity and 

innovation, availability of resources to get their jobs done, and 

communication from management about what’s going on in the 

Agency. 

FY 2018

Target

Building on the Agency’s evolving succession plan – which is 

designed to lessen the impact of institutional-knowledge loss as 

employees retire or leave and to maximize current talent 

utilization by closing leadership staffing and competency 

gaps/deficiencies – develop a formal Agency developmental-detail 

program, establishing cross-component detail opportunities to 

provide employees with training and developmental experiences 

that will enhance their skills and increase their understanding of 

the Agency’s mission and operations across program lines, as well 

as the relevance of their work to the mission and programs of the 

FLRA. 

Managers will assess annually 100% of employees on their 

developmental needs and provide at least one targeted 

developmental opportunity to each of their staff members per 

year.

Maintain sustained growth of positive responses to the OPM 

FEVS question “supervisors in my work unit support employee 

development.”

Actual

Offered cross-component details to provide employees with 

training and developmental experiences that will enhance their 

skills and increase their understanding of the Agency’s mission 

and operations. 

Managers assessed annually employees on their developmental 
57

needs and provided appropriate training and developmental 

opportunities. 

Maintained sustained status of higher positive responses than the 

Government-wide average to the OPM FEVS question 

“Supervisors in my work unit support employee development”

Data Source: FLRA Human Resources Division

Target: Met.

PERFORMANCE GOAL 2: IMPROVE USE OF EXISTING 

TECHNOLOGY AND DEPLOY NEW IT SYSTEMS TO STREAMLINE 

AND ENHANCE ORGANIZATIONAL OPERATIONS.

The FLRA began accepting eFilings in FY 2013, and, as of FY 2015, eFiling is available for all 

FLRA offices that receive case filings. The FLRA is continuing to work towards implementing 

the Agency’s long-term goal of sharing end-to-end electronic case files throughout the FLRA, as 

well as the OMB-mandated target of having fully electronic files by 2019. Increasing eFiling is 

critical to achieving this goal. In this regard, the more case-related information that the FLRA 

receives electronically – rather than in hard copy – from the outset, the easier it is to convert that 

information into an electronic case file, without the need for FLRA staff to manually scan 

documents. The Agency has a four-year plan to accomplish the transition to fully electronic case 

files in agile phases.

Measure 2.1: Expand the use of eFiling. 

FY 2014 Actual 12% of cases eFiled.

FY 2015 Actual 17% of cases eFiled.

FY 2016 Actual 22% of cases eFiled. 

FY 2017 Actual 35% of cases eFiled.

FY 2018 Target 75% of cases eFiled

Actual 35% of cases eFiled

Data Source: CMS

Target: Not Met. Although the Agency did not meet its target goal, the improvements the 

Agency made to its eFiling system during FY 2018 are intended to encourage increased 

eFiling by its customers. It is expected that the improvements will increase the Agency’s

ability to meet this goal in FY 19. We continue to explore new strategies for increasing use of 

its improved eFiling system.
58

Measure 2.2: Electronic end-to-end case processing.

FY 2014 Actual Migrated the CADR to an end-to-end electronic case file.

FY 2015 Actual

Made eFiling available for OALJ cases, resulting in eFiling being 

available for all offices that accept case filings. As a result, 

completed full integration of the CMS and eFiling systems, enabling 

end-to-end electronic case processing throughout the Agency. 

FY 2016 Actual

With the full completion of the eFiling objective, the CMS has the 

structure in place to receive and store electronically filed cases. The 

applications have been merged, creating bridges between the two 

systems, to support end-to-end electronic case-processing capability. 

The FLRA neared completion of improving the eFiling user interface, 

which builds upon the existing system, making the eFiling system 

more user-friendly and intuitive. And efforts are underway to 

implement a Document Management System (DMS). This effort will 

span into FY 2017, and it is a critical step in accomplishing the 

FLRA’s multi-year electronic-case-file plan.

FY 2017 Actual

Incorporating internal and external customer feedback, adopting 

“agile” development efforts, and utilizing open-source code, 

completed development of a brand new, user-friendly eFiling 

application with a Ruby on Rails user interface and a Postgres 

backend database that is housed in Amazon Web Services – a cloudbased solution. Final testing and additional enhancements that were 

not anticipated until later in FY 2018 are currently being completed, 

and eFiling 3.0 will launch to the public in the 1st quarter of FY 2018. 

It is anticipated to dramatically increase the number of FLRA cases 

filed electronically. 

Laid the foundation for modernizing the infrastructure for the 

Agency’s electronic CMS and eFiling by transitioning to a new 

backend product – Postgres database housed in Amazon Web 

Services – that will allow for a more user friendly and complete 

integration of the CMS, the eFiling system, and the DMS. 

Deployed an Agency-wide, cloud-based DMS, which replaced the 

existing network shares with an integrated document and email 

communications system that will facilitate document sharing and 

electronic case-processing initiatives. 

FY 2018

Target

Integrate the CMS and eFiling systems with the Agency Document 

Management System, enabling end-to-end electronic case processing 

throughout the Agency. 

Actual

Developed and launched eFiling 3.0, which both internal and external 

users report is significantly more user-friendly and intuitive. Began 

development of a new and improved CMS that, over time, will 

provide significant cost savings ($100,000 annually) and allow for 

more efficient integration of the CMS and eFiling systems with the 

DMS, enabling end-to-end electronic case processing throughout the 
59

Agency. Identified the basic structure of electronic case files for each 

component/office in the DMS. Completed transition of all major IT 

functions – CMS, DMS, eMail – to the cloud, which improves both IT 

security, consistent with the PMA, and Agency continuity of 

operations plans.

Data Source: FLRA Information Resources Management Division

Target: Met. 

VERIFICATION AND VALIDATION OF PERFORMANCE DATA

The CMS is used by FLRA offices to track and manage caseload. Each office enters information 

on case filings into the CMS, and is accountable for quality control of the data entered into the 

system. Case-performance data verification and validation was performed using information 

from the CMS. NOTE: In November 2018, the FLRA audited the case-numbers for the past five 

years and found some errors from prior years. This PAR contains the most accurate numbers, 

and should be used instead of data from PARs of prior years.
60

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

The FLRA’s FY 2018 Performance and Accountability Report reflects the correlation between 

the financial and programmatic aspects of the Agency’s work. The report bridges these two 

areas by presenting FLRA performance with the financial results of Agency operations. The 

principal financial statements and notes that follow explain the FLRA’s financial position as of 

September 30, 2018, and how the Agency’s financial resources were expended to achieve 

performance results. For the thirteenth 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.

With FY 2019 expected to be another challenging year (since we are currently funded through a 

Continuing Resolution), we will continue to focus on identifying solutions to maintain our 

financial stability, ensure transparency and accountability, and maintain our high levels of 

mission performance and employee satisfaction and morale. We will also continue to work with 

the Administration and the Congress in seeking ways to strengthen and improve the Agency’s 

system for the administrative control of funds. We are confident that the FLRA’s financial and 

performance data are complete, accurate, and reliable.

Colleen Duffy Kiko

Chairman and Chief Executive Officer

November 15, 2018
61

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2018 and 2017

2018 2017

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $4,474,299 $4,981,468 

Accounts Receivable (Note 3) 10,114 9,966 

Prepaid Expenses 18,141 5,429 

Total Intragovernmental 4,502,554 4,996,863 

 Accounts Receivable, Net (Note 3) 0 424 

 Property, Equipment, and Software, Net (Note 4) 78,734 187,819 

Total Assets $4,581,288 $5,185,106 

Liabilities:

 Intragovernmental

 Accounts Payable (Note 5) $328,155 $298,123 

Accrued Payroll and Benefits (Note 5) 187,829 150,021 

FECA Unfunded (Note 5) 222,358 242,229 

 Total Intragovernmental 738,342 690,373 

 Accounts Payable (Note 5) 326,584 626,657 

Unfunded Leave (Note 5) 1,102,800 1,239,740 

 FECA Actuarial Liability (Note 5) 1,249,217 1,254,731 

 Accrued Payroll and Benefits (Note 5) 792,746 588,668 

 Other Liabilities (Note 6) 261 0

Total Liabilities $4,209,950 $4,400,169 

Net Position:

 Unexpended Appropriations - Other Funds $2,864,908 $3,333,393 

 Cumulative Results of Operations - Other Funds (2,493,570) (2,548,456)

Total Net Position 371,338 784,937 

Total Liabilities and Net Position $4,581,288 $5,185,106 

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
62

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2018 and 2017

2018 2017

Gross Program Costs:

Authority:

Intragovernmental Costs $6,039,210 $5,802,070

 Public Costs 9,121,750 8,801,998 

 Total Program Costs 15,160,960 14,604,068 

Less: Earned Revenue (1,239) (12,806)

Net Program Costs $15,159,721 $14,591,262

Federal Services Impasse Panel:

Intragovernmental Costs $189,605 $187,956

 Public Costs 669,093 676,661 

 Total Program Costs 858,698 864,617 

Less: Earned Revenue 0 0

Net Program Costs $858,698 $864,617

Office of General Counsel:

Intragovernmental Costs $2,757,467 $2,552,444

 Public Costs 8,531,298 8,625,612 

 Total Program Costs 11,288,765 11,178,056 

Less: Earned Revenue (7,199) (14,562)

Net Program Costs $11,281,566 $11,163,494

Total Gross Program Costs $27,308,423 $26,646,741

Less: Total Earned Revenue (8,438) (27,368)

Net Cost of Operations $27,299,985 $26,619,373

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
63

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2018 and 2017

2018 2017

Unexpended Appropriations:

Beginning Balances $3,333,393 $2,906,771 

Budgetary Financing Sources:

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

Other Adjustments (519,592) (207,127)

Appropriations Used (26,148,893) (25,566,251)

Total Budgetary Financing Sources (468,485) 426,622 

Total Unexpended Appropriations $2,864,908 $3,333,393 

Cumulative Results of Operations:

Beginning Balances ($2,548,456) ($2,356,665)

Budgetary Financing Sources:

Appropriations Used 26,148,893 25,566,251 

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 1,205,978 861,331 

Total Financing Sources 27,354,871 26,427,582 

Net Cost of Operations (27,299,985) (26,619,373)

Net Change 54,886 (191,791)

Cumulative Results of Operations ($2,493,570) ($2,548,456)

Net Position $371,338 $784,937 

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
64

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2018 and 2017

2018 2017

Budgetary Resources:

Unobligated balance from prior year budget authority, net $932,190 $1,245,096 

Appropriations 26,200,000 26,200,000 

Spending authority from offsetting collections 12,323 27,313 

Total Budgetary Resources $27,144,513 $27,472,409 

Memorandum (non-add) Entries:

Net adjustments to unobligated balance brought forward, Oct. 1 ($4,251,250) ($3,193,427)

Status of Budgetary Resources:

New obligations and upward adjustments (Note 10) $26,408,865 $26,218,588 

Unobligated balance, end of year:

 Apportioned, unexpired account 9,108 66,825 

Expired unobligated balance, end of year 726,540 1,186,996 

Unobligated balance, end of year (total) 735,648 1,253,821 

Total Budgetary Resources $27,144,513 $27,472,409 

Outlays, net:

Outlays, net, (total) 26,187,577 25,458,707 

Agency outlays, net $26,187,577 $25,458,707 

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
65

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 ULP complaints; (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 OGC, and the FSIP; and is led by a Chairman, who serves as the FLRA’s chief executive and 

administrative officer. 5 U.S.C. §§ 7104(b)

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 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.

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
66

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 

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. The 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. 
67

Liabilities not covered by budgetary resources in FY 2017 and FY 2018 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 

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.
68

K. Retirement Plans

The FLRA’s employees participate in the CSRS, CSRS offset 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 2017 and FY 2018 was $18,000 and 

$18,500, 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 2018, 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.

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, CSRS offset 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. 
69

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 2017 and FY 2018 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 

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
70

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, 2018 and 2017 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 

September 30, 2018 and 2017. Accounts Receivable balances as of September 30, 2018 and 2017 were as 

follows (In Dollars):

2018 2017

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 9,108 $ 66,825 

 Unavailable 726,540 1,186,996 

Obligated Balance Not Yet Disbursed 3,738,651 3,727,647 

Total $ 4,474,299 $ 4,981,468 
71

NOTE 4: PROPERTY, EQUIPMENT, AND SOFTWARE, NET

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

Schedule of Property, Equipment, and Software as of September 30, 2017 (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. 

2018 2017

Intragovernmental

Accounts Receivable $ 10,114 $ 9,966

Total Intragovernmental Accounts Receivable $ 10,114 $ 9,966

With the Public

Accounts Receivable $ - $ 424

Total Public Accounts Receivable $ - $ 424

Total Accounts Receivable $ 10,114 $ 10,390

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

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

Office Equipment 202,231 202,231 -

Office Furniture 453,695 453,090 605

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

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment $ 455,885 $ 286,579 $ 169,306

Office Equipment 202,231 202,231 -

Office Furniture 453,695 435,182 18,513

Total $ 1,111,811 $ 923,992 $ 187,819
72

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, 2018 consist of the 

following (In Dollars):

Liabilities Covered and Not Covered by Budgetary Resources as of September 30, 2017 consist of the 

following (In Dollars):

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 $ 1,635,575 $ 2,574,375 $ 4,209,950

Covered Not Covered Total

Intragovernmental Liabilities

 Accounts Payable $ 298,123 $ - $ 298,123

 Accrued Payroll and Benefits 150,021 - 150,021

 Unfunded FECA - 242,229 242,229

Total Intragovernmental Liabilities $ 448,144 $ 242,229 $ 690,373

Public Liabilities

 Accounts Payable $ 626,657 $ - $ 626,657

 Unfunded Leave - 1,239,740 1,239,740

 FECA Actuarial Liability - 1,254,731 1,254,731

 Accrued Payroll and Benefits 588,668 - 588,668

 Other - - -

Total Public Liabilities $ 1,215,325 $ 2,494,471 $ 3,709,796

Total Liabilities $ 1,663,469 $ 2,736,700 $ 4,400,169
73

NOTE 6: OTHER LIABILITIES

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

There were no other liabilities as of September 30, 2017.

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. The 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. Timely notice was provided and FLRA will terminate 

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, 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

Current Non-Current 2018 Total

With the Public

 Advances and Prepayments $ 261 $ - $ 261

Total Other Liabilities $ 261 $ - $ 261
74

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 2013 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.

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 2018 and 2017 consisted of the following:
75

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, 2018

consisted of the following (In Dollars):

The amount of budgetary resources obligated for undelivered orders at the end of September 30, 2017

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 2019 President’s Budget, with actual amounts for FY 

2017, has been reconciled to the Statement of Budgetary Resources. The FY 2020 President’s Budget, 

with actual amounts for FY 2018, will not be published until February 2019.

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. The FLRA's custodial collections are $ 1 for the year ended September 

30, 2018, and $ 1 for the year ended September 30, 2017. Custodial collections 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

2018 2017

Direct Obligations, Category A $ 26,395,924 $ 26,191,275

Reimbursable Obligations, Category A 12,942 27,313

Total Obligations Incurred $ 26,408,865 $ 26,218,588

Federal Non-Federal Total

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

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

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

Federal Non-Federal Total

Paid Undelivered Orders $ 5,429 $ - $ 5,429

Unpaid Undelivered Orders (252,563) 2,326,707 2,074,144

Total Undelivered Orders $ (247,134) $ 2,326,707 $ 2,079,573
76

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

fiscal years ended September 30, 2018 are shown in the following table:

 Intragovernmental  With the 

Public Total 

Net Operating Cost (SNC) 8,979,083 18,320,902 27,299,985

Components of Net Operating Cost Not Part 

of the Budgetary Outlays 

Property, plant, and equipment depreciation (109,085) (109,085)

Increase/(decrease) in assets:

Accounts receivable 148 (424) (276)

Other assets 12,712 - 12,712

(Increase)/decrease in liabilities not 

affecting Budget Outlays:

Accounts payable (30,032) 299,811 269,779

Salaries and benefits (37,808) (204,077) (241,885)

Other liabilities 19,871 142,454 162,325

Other financing sources:

Federal employee retirement benefit costs (1,205,978) (1,205,978)

Total Components of Net Operating Cost Not (1,241,087) 128,679 (1,112,408)

Part of the Budget Outlays

Components of the Budget Outlays That Are 

Not Part of Net Operating Cost

Other 1 (1) -

Total Components of the Budget Outlays That 1 (1) -

Are Not Part of Net Operating Cost

Net Outlays (Calculated Total) 7,737,997 18,449,580 26,187,577

Related Amounts on the Statement 

of Budgetary Resources

Outlays, net, (total) (SBR 4190) 26,187,577

Distributed offsetting receipts (SBR 4200) -

Outlays, Net (SBR 4210) 26,187,577

FEDERAL LABOR RELATIONS AUTHORITY

RECONCILIATION OF NET COST AND BUDGET OUTLAYS

FOR THE YEAR ENDED SEPTEMBER 30, 2018

(In Dollars)
77
78
79
80
81
82

OTHER ACCOMPANYING 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
83

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.
84

INSPECTOR GENERAL

UNITED STATES OF AMERICA

FEDERAL LABOR RELATIONS AUTHORITY

WASHINGTON, D.C. 20424-0001

MEMORANDUM

DATE: September 17, 2018

TO: Colleen Duffy Kiko

Chairman

Ernest DuBester

Member

James Abbott

Member

FROM: Dana Rooney

Inspector General

SUBJECT: Top Management and Performance Challenges Facing the Federal Labor

Relations Authority (MC-19-01)

In accordance with the Reports Consolidation Act of 2000,1 the Office of Inspector General

(OIG) is reporting what it has determined to be the most serious management and performance

challenges facing the Federal Labor Relations Authority (FLRA). The attached document

responds to this requirement and by statute is required to be included in the FLRA’s Performance

and Accountability Report.

The OIG retained all three management challenges from last year’s list. The top management

and performance challenges include: (1) Information Technology Security; (2) Records

Management; and (3) Closure of Open Recommendations Outstanding for More Than 1 Year.

This memorandum is based on specific OIG reviews and other reports, as well as our general

knowledge of the FLRA programs and operations. Our analysis considers the accomplishments

the FLRA reported as of August 21, 2018. We provided our draft challenges report to the FLRA

and considered all comments received. In closing, we would like to express appreciation to you

and the Executive Director for continuing to support our work and your commitment to

excellence. We look forward to working with the FLRA to continually improve the FLRA’s

efforts to address these important challenges.

Attachment

cc: William Tosick, Executive Director

1 Public Law 106-531
Office of Inspector General

Federal Labor Relations Authority

Management and Performance Challenges Facing the FLRA 1 | P a g e

Information Technology Security

Safeguarding systems and data has been a challenge for all Federal agencies including the Federal

Labor Relations Authority (FLRA). The Government Accountability Office has identified the

security of cyber assets and the privacy of personally identifiable information on its High-Risk

List.1

The FLRA depends on its systems and data to carry out its mission. These systems are always at

risk and the FLRA must remain vigilant in establishing a control environment to continuously

monitor potential Information Technology (IT) risks, threats, vulnerabilities, mitigation and

implementation plans.

For the last several years, the Office of Inspector General’s (OIG) annual Federal Information

Security Modernization Act of 2014 (FISMA) review has identified a repeated weakness in IT.

The FLRA has improved greatly over the past few years, providing corrective action plans in

response to our recommendations. While the FLRA has had two consecutive clean audits and

closed all but one open finding, IT security still remains a management challenge. In our Fiscal

Year (FY) 2018 FISMA review, we plan to evaluate the IT deficiency and the actions taken to

correct the system weakness.

Information Security

Since the passage of the FISMA, the OIG has annually reviewed the FLRA’s information security

program. The FISMA requires the FLRA OIG to prepare a report summarizing the review 

findings and submit it to the Office of Management and Budget (OMB). The most recent FISMA 

evaluation found that management continues to make progress closing four out of the five prior

year recommendations.2 There were no new recommendations in the FY 2017 review and the

remaining open FISMA recommendation was from FY 2015.

Progress in Addressing the Challenge

The FLRA had no new IT security findings for FY 2017, for the second consecutive year. This is 

a significant accomplishment and a strong indicator of the FLRA’s commitment to addressing IT

security matters in a timely and comprehensive manner. The FLRA also closed four of its five 

open findings. The FLRA expects to fully mitigate the remaining open FISMA finding by the

end of FY 2019. The impact of this effort will be assessed during the FY 2019 FISMA review.

1 See http://www.gao.gov/highrisk/ensuring_the_security_federal_government_information_systems/why_did_study 2 This is based on the FY 2017 FISMA review; the FY 2018 FISMA review had not been completed at the time this

document was drafted.
Office of Inspector General

Federal Labor Relations Authority

Management and Performance Challenges Facing the FLRA 2 | P a g e

What Needs to Be Done

The FLRA should continue to address and resolve the remaining FISMA weakness identified by

the OIG in 2015. Although the FLRA has closed four of its five open recommendations, the

agency must be diligent in continuing to monitor and assess its information security to ensure

proper IT security controls are in place.

Key OIG Resources

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the

Federal Information Security Modernization Act of 2014 for Fiscal Year 2017 (MAR-18-01)

October 2017

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9,

2015

Records Management (hard copy and electronic)

Managing Federal business records is an important responsibility of Federal agencies, which are

required to institute records management programs. Presidential Memorandum, Managing

Government Records, was signed on November 28, 2011. It announced an Executive Branchwide effort to reform Government records. The U.S. National Archives and Records

Administration (NARA) are authorized to promulgate regulations for Federal records.

On August 24, 2012, OMB and NARA jointly issued Memorandum M-12-18, Managing

Government Records Directive. The new directive provides goals, requirements, and deadlines

for implementing the Presidential Memorandum. The first goal of the Directive has two

compliance deadlines:

• By December 2016, Federal agencies will manage both permanent and temporary email

records in an accessible electronic format; and

• By December 2019, Federal agencies will manage all permanent records in an electronic

format, and must develop plans to do so by December 2013.

In 2014, Congress amended the Presidential Records Act and the Federal Records Act regarding

the preservation, storage, and management of Federal records. NARA also provided Federal

agencies with specific guidance on July 29, 2015, on how to comply with the Federal law

regarding the preservation of electronic messages in Bulletin 2015-02, Guidance on Managing

Electronic Records.
Office of Inspector General

Federal Labor Relations Authority

Management and Performance Challenges Facing the FLRA 3 | P a g e

On March 15, 2017, NARA issued a memo3 to Senior Agency Officials for Records Management. 

The memo reminds them of their Federal records and information management responsibilities

and addresses three high visibility priorities for the coming year:

• electronic messaging and encrypted messages;

• managing web records; and

• ensuring that all staff, especially incoming political appointees, are properly trained on

their responsibilities for records management.

FLRA has taken steps to strengthen its records management, such as by continuing its efforts to

use technology to enhance operational efficiencies by automating, paper-based manually intensive 

processes. This includes developing a case management system infrastructure supporting

electronic files that will properly handle agency case files and records. This is an excellent step

forward using technology to enhance operational efficiencies. However, system automation is 

only one part of a comprehensive approach to address the challenge of managing permanent

records. Industry practices dictate that along with implementing new technology, it is imperative 

that a complete oversight or governance process be established to include documenting agency

policies, procedures and processes that address all hard copy and electronic records proper

handling. Although new automated systems offer increased capabilities, they also present new 

internal (management) control challenges. The FLRA needs to ensure various roles (e.g., system

administrator); related authorities and capabilities are properly assigned, documented, managed

and monitored. Such written documentation should be maintained as this need becomes

increasingly critical as additional functionality and enhancements are added to the system. 

Further, although, certain types of records do not have legal retention requirements; the policies,

processes and procedures should, clearly and specifically, instruct staff on the proper handling.

Further, management should periodically verify that such policies are being followed.

Progress in Addressing the Challenge

The FLRA met the first requirement of OMB Directive M-12-18, managing both permanent and

temporary email records in an accessible electronic format. The Agency is currently maintaining

all email records in an electronic format. The FLRA provided the following management

challenge update:

“Over the course of FY 2018, the FLRA has continued its efforts to use technology to

enhance operational efficiencies by implementing systems to automate paper-based

manually intensive processes. This includes the development of an electronic casemanagement system infrastructure that supports electronic case files and that will further

the Agency’s efforts to properly handle Agency case files and records. The FLRA has

3 Records Management Priorities for 2017, March 15, 2017
Office of Inspector General

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Management and Performance Challenges Facing the FLRA 4 | P a g e

made steady progress in accomplishing its multi-year plan to implement fully electronic

files – consistent with the OMB requirements – in 2019. Accomplishments include:

development of eFiling 3.0 system, including enhancements for supporting electronic

case files; the continued development of/refinements to the Agency’s Document

Management System, which will provide the storage capability for fully electronic case

files; and continued work to transition the case management system, with the first office

scheduled to migrate in early FY 2019. All three accomplishments are essential

components for implementing fully electronic case files.

The FLRA recognizes that a necessary component of the implementation of electronic

case files is the development of policies, processes, and procedures to provide staff with

clear guidance for handling records and ensuring compliance with Agency requirements.

The Agency continues to make progress to ensure that appropriate oversight and

governance processes are established, including reviewing/updating Agency policies,

procedures, and processes that address the proper handling and storage of all hard-copy

and electronic records. The Agency has reviewed and revised several Agency policies

this year, and it will continue to do so, with a goal to review, revise, or reissue as

appropriate, all Agency policies by the end of FY 2019. This effort will ensure that

system administrators and related authorities and capabilities are properly assigned,

documented, managed, and monitored, and that written documentation is kept up-todate.”

What Needs to Be Done

Since the Directive’s release, there has been a wealth of additional NARA bulletins and OMB

memorandums. Although the FLRA has until 2019 to comply with the evolving requirements,

FLRA management should continue working its multi-year agenda to integrate its E-filing and

other automated systems. The FLRA needs to design its policies to ensure it complies with all

records management requirements and effectively manages its records. Good records

management will help the FLRA meet its mission responsibilities.

Key OIG Resources

• President Memorandum, Managing Government Records, signed on November 28, 2011

• OMB Directive M-12-18, Managing Government Records Directive, issued August 24, 2012

• NARA Bulletin 2013-02, Guidance on a New Approach to Managing Email Records, issued

August 29, 2013

• OMB/NARA Memorandum M-14-16, which included NARA Bulletin 2014-06, Guidance on

Managing Email issued September 14, 2014
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Federal Labor Relations Authority

Management and Performance Challenges Facing the FLRA 5 | P a g e

• NARA Memorandum, Records Management Priorities for 2017, issued March 15, 2017

Closure of Open Recommendations Outstanding for More Than 1 Year

The Inspector General Act of 1978, as amended, requires explanations for all audit reports with

recommendations open for more than one year. These outstanding recommendations are also

reported to the FLRA and Congress in the OIG’s Semiannual Reports to Congress. We first

reported the closure of open recommendations outstanding for more than one year as a

management challenge in 2016. In 2017, we reported that FLRA had eight open

r ecommendations outstanding for more than 1 year. In our March 31, 2018 OIG Semiannual

Report, the FLRA closed seven of the eight open recommendations outstanding for more than 1

year. However, one new recommendation met the 1 year aging period and was reported in our

March 31 report.

The table below shows a summary of reports with corrective actions outstanding for more than

1 year and whether report recommendations are open or closed.

Reports with Corrective Actions Outstanding for more than 1 year4

Report Title Report

Number

Issue

Date

Number of

Recommendations

Closed Open

Evaluation of the Federal

Labor Relations Authority

Compliance with the Federal

Information Security

Management Act Fiscal Year

2015

ER-16-01 11/15 5 4 1

Management Letter for Fiscal

Year 2016 Audit of the

Federal Labor Relations

Authority’s Financial

Statements

AR-17-02 11/16 1 0 1

At this time, FLRA has two recommendations outstanding for more than 1 year. Of the two

recommendations, one was reported in the FY 2015 FISMA review and the other in the

Management Letter for Fiscal Year 2016 Audit of the Federal Labor Relations Authority’s

Financial Statements. The FISMA recommendation has been outstanding for almost 3 years.

4 Only the recommendations that have been open for 12 months are reflected in the accompanying list of open

recommendations and were reported in our March 31, 2018 Semiannual Report to Congress.
Office of Inspector General

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Management and Performance Challenges Facing the FLRA 6 | P a g e

The FLRA obtained an unmodified (clean) opinion on all financial statements in FY 2017, and the

independent auditor’s FY 2017 Management Letter reported no new recommendations, while

closing two of the three prior year recommendations. The remaining recommendation, outstanding

for more than 1 year, was included in the FY 2016 Management Letter.

As the OIG continues to issue reports with recommendations, it is critical that the FLRA continue its 

progress in resolving open findings that are outstanding from prior audits, and design appropriate

corrective action plans to implement procedures and address deficiencies, where appropriate. FLRA 

management should also continuously monitor these plans to ensure timely audit resolution.

Progress in Addressing the Challenge

In response to our FY 2018 management challenges, the FLRA indicated having “made significant

progress in closing all but one audit recommendation.” FLRA stated it “has clear and

comprehensive action plans in place to address all open recommendations.” FLRA also noted

having a plan in place to close the FISMA weakness by the end of FY 2019.

What Needs to Be Done

We acknowledge that the FLRA continues to initiate actions to address outstanding open

recommendations. However, our audit work from the past several years continues to highlight that

the FLRA faces challenges in addressing outstanding weaknesses. The impact of FLRA action

plans will be assessed during the FY 2018 Financial Statement audit and FY 2019 FISMA review.

Key OIG Resources

• OIG Report, Semiannual Report to Congress for the period October 1, 2017 to March 31,

2018

• OIG Report, Top Management and Performance Challenges Facing the Federal Labor

Relations Authority (MC-18-01), October 4, 2017

• OIG Report, Management Letter for Fiscal Year 2016 Audit of the Federal Labor Relations

Authority Financial Statements (AR-17-02), November 16, 2016

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9,

2015

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