Thirty-three 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 2012
TABLE OF CONTENTS

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

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

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

Organizational Structure ..................................................................................................................3

Strategic and Performance Planning Framework ............................................................................6

Performance Summary...................................................................................................................11

Financial Analysis..........................................................................................................................19

Management Assurances ...............................................................................................................22

PERFORMANCE GOALS AND RESULTS......................................................23

Goal 1: Provide Timely Review and Disposition of Unfair Labor Practice Cases.......................23

Goal 2: Provide Timely Review and Disposition of Representation Cases..................................25

Goal 3: Provide Timely Review and Disposition of Arbitration Cases........................................27

Goal 4: Provide Timely Review and Disposition of Negotiability Cases ....................................27

Goal 5: Provide Timely Review and Disposition of Bargaining Impasse Cases..........................28

Goal 6: Use Collaboration Techniques and Alternative Dispute Resolution Services to

Minimize and/or Resolve Labor-Management Disputes..................................................30

Goal 7: Modernize Agency Information Technology Business Systems to Support and

Enhance Program Achievement .......................................................................................33

Goal 8: Develop, Manage, and Utilize the FLRA’s Human Capital to Meet Program Needs.....34

Verification and Validation of Performance Data .........................................................................36

PRINCIPAL FINANCIAL STATEMENTS .......................................................37

Message from the Chief Financial Officer.....................................................................................37

Balance Sheet.................................................................................................................................38

Statement of Net Cost ....................................................................................................................39

Statement of Changes in Net Position ...........................................................................................40

Statement of Budgetary Resources................................................................................................41

Notes to the Financial Statements..................................................................................................42

Report of Independent Auditors.....................................................................................................52

OTHER ACCOMPANYING INFORMATION.................................................56

Summary of Financial Statement Audit.........................................................................................56

Summary of Management Assurances...........................................................................................56

Memorandum on Inspector General Identified Management Challenges.....................................57

Management’s Response ...............................................................................................................61

Improper Payments Elimination and Recovery .............................................................................61
1

MESSAGE FROM THE CHAIRMAN

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

Performance and Accountability Report for Fiscal Year (FY) 2012. The work 

of the agency is critically important to the effectiveness and efficiency of the 

Federal government, assisting agencies, employees, and employee 

representatives to resolve disputes in order to effectuate the implementation 

of improvements in government operations. We are committed to fostering a 

productive and effective Federal government, providing leadership in 

establishing policies and guidance related to Federal sector labor-management 

relations, and ensuring compliance with the Federal Service Labor-Management Relations 

Statute.

Over the last four years, the FLRA has risen to the challenge presented to all Federal agencies by 

President Obama’s Administration: engaging in rigorous, metrics-based evaluation of its 

mission performance, management, and policies. Through the effective management of 

resources, as well as the hard work and dedication of agency leadership and employees, the 

FLRA has transformed itself from an under-performing agency marked by its numerous 

deficiencies to a high-performing agency with numerous notable achievements – eliminating its

backlog, completing its Corrective Action Plan, educating the labor-management community at 

unprecedented rates, and providing practitioners with education and training resources and tools 

for success. These outstanding mission outcomes are matched only by the FLRA’s tremendous 

success in engaging and collaborating with its employees, ranking 7th among small agencies in 

the Best Places to Work in the Federal Government survey – a significant accomplishment given 

that its 2007 and 2008 Employee Viewpoint scores resulted in the FLRA being ranked the worst 

place to work among all small agencies in the Federal government for two consecutive years.

Emphasizing mission accomplishment and performance improvement through transparency, 

employee engagement, and collaboration, FY 2012 was another year of real results for the 

FLRA, with all components meeting their strategic objectives and performance indicators, 

accomplishing key agency-wide mission milestones, and sustaining the dramatic and 

unprecedented increases in employee satisfaction and morale that were reported in FY 2010 and 

FY 2011. In addition, the agency continued to improve its efficiency by engaging in new and 

innovative ways to conduct business, using technology to maximize resources, increase 

flexibility, reduce costs, and enhance the delivery of agency case processing, training, and 

dispute resolution services.

Delivering on the commitment FLRA leadership made to the labor-management community, 

employees, and the President in FY 2009, the Authority component satisfied its Corrective 

Action Plan, meeting all significant performance indicators and ensuring the timely resolution of 

disputes. In this connection, the Authority reduced its pending case inventory by close to 90 

percent; eliminated overage case inventory by 100 percent; and the average age of its cases is 

now approximately 50 days – reduced from well over 250 days. For yet another year, the Office 

of the General Counsel (OGC) component sustained its dramatic productivity increases, 

resolving 20 percent more cases than it did in FY 2009. In addition, the Federal Service 

Impasses Panel component – which continues to experience increased case filings, including an 
2

increase of over 15 percent in FY 2012 – is still showing improved performance outcomes and 

dramatic case settlement success. In this regard, the FSIP exceeded all of its performance goals 

in FY 2012 – with one exceeded by more than 15 percent. 

Particularly noteworthy, are the tremendous efficiencies gained through the FLRA’s use of 

collaboration techniques and alternative dispute resolution (ADR) to minimize and resolve labormanagement disputes. In FY 2012, the OGC resolved close to 100 percent of the cases in which 

parties agreed to engage in ADR to collaboratively resolve their dispute. The FLRA’s 

Collaboration and Alternative Dispute Resolution Office also brought about real results, 

expeditiously resolving well over 90 percent of pending cases with no further need for litigation, 

getting the parties back to conducting the business of government. And consistent with its 

leadership role in labor-management relations, the FLRA delivered hundreds of training, 

outreach, and facilitation sessions in FY 2012 to thousands of practitioners. The agency’s work 

in this regard, has been critical to the implementation and ongoing success of parties’ efforts 

pursuant to President Obama’s Executive Order 13522, Creating Labor-Management Forums to 

Improve Delivery of Government Services.

The FLRA also successfully leveraged technology, finding new and innovative ways to conduct 

business and enhance the delivery of its services. In FY2012, the FLRA launched electronic 

case filing, increasing efficiencies by reducing procedural-filing errors and resulting processing 

delays. In collaboration with other Federal agencies, the FLRA also unveiled comprehensive 

web-based training modules, bringing programs directly to its customers’ desks at no cost to 

them, and without the need for costly travel. Additionally, the agency continued to improve its 

website, adding easier and more complete access to case decisions, case law outlines, guidances, 

and manuals. 

As has been the case since FY 2009, these successes were accomplished in full partnership with 

our employees and their representative union, and have been accompanied by extraordinary 

increases in employee satisfaction. The FLRA’s continued focus on human capital initiatives, 

such as training and development, performance management, and work-life balance have 

enabled the agency to make significant and measurable organizational performance 

improvements. 

I am very proud of the FLRA’s FY 2012 accomplishments, which are nothing short of dramatic 

given that just a few short years ago both our mission performance and employee satisfaction 

were at an all-time low. Putting that past behind us, the FLRA’s dedicated and engaged 

employees and leadership are truly delivering for our customers, and as a result, the American 

public.

Carol Waller Pope

Chairman

Federal Labor Relations Authority

November 15, 2012
3

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND AND MISSION

The U.S. Federal Labor Relations Authority (FLRA) is the sole agency responsible for 

establishing policies and guidance regarding the labor-management relations program for 2.1

million non-Postal, Federal employees worldwide, approximately 1.2 million of whom are 

represented in 2,200 bargaining units. The FLRA was created by Title VII of the Civil Service 

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

(the Statute). The agency’s real genesis, however, dates from the issuance of Executive Order 

10988 by President Kennedy in 1962. In FY 2012, the FLRA celebrated the 50th anniversary of

the Order, which established the first government-wide, labor-management relations program 

within the Federal government. In 1970, President Nixon established the Federal Labor 

Relations Council by Executive Order 11491 to administer the Federal labor-management 

relations program and to make final decisions on policy questions and major disputes arising 

under Executive Order 10988. Executive Order 11491, as amended, was the basis for President 

Carter’s proposal to Congress to create the Federal Labor Relations Authority as an independent 

agency.

The Statute protects the rights of Federal employees to form, join, or assist a labor organization 

or to refrain from such activity freely and without fear of penalty or reprisal. These rights 

include acting for a labor organization as a representative and, in that capacity, presenting the 

views of the organization. Employees also have the right to engage in collective bargaining with 

respect to conditions of employment through representatives chosen by the employees 

themselves.

The mission of the FLRA is to promote stable, constructive labor-management relations in the 

Federal government by resolving and assisting in the prevention of labor disputes in a manner 

that gives full effect to the collective-bargaining rights of employees, unions, and agencies. 

Although the FLRA is a small agency, accomplishing its mission, including the timely, quality 

resolution of disputes, is essential for program performance government-wide. If a labormanagement dispute in another agency remains unresolved for too long, the mission 

accomplishment in that agency likely will suffer.

ORGANIZATIONAL STRUCTURE

The FLRA consists of the Authority, the Office of the General Counsel, and the Federal Service 

Impasses Panel. The agency also provides full staff support to two other organizations, the 

Foreign Service Impasse Disputes Panel and the Foreign Service Labor Relations Board.
4

U.S. Federal Labor Relations Authority

The Authority

The Authority is composed of three full-time Members appointed by the President with the 

advice and consent of the Senate. The Members are appointed for five-year, staggered terms and 

one Member is designated by the President to serve as Chairman, who acts as the agency’s chief 

executive and administrative officer. The Authority is empowered to: resolve disputes over the 

negotiability of proposals made in collective bargaining; decide whether conduct alleged in a 

complaint constitutes an unfair labor practice (ULP); resolve exceptions to grievance arbitration 

awards; and review the decisions of Regional Directors in representation disputes over union 

elections and unit determinations.

The Authority Members appoint Administrative Law Judges (ALJs) to hear and prepare

recommended decisions in cases involving alleged ULPs, as well as decisions involving 

applications for attorney fees filed pursuant to the Back Pay Act or the Equal Access to Justice 

Act. The Office of the Administrative Law Judges (OALJ) also provides settlement 

opportunities in all ULP cases. Decisions of the ALJs may be appealed to the Authority.

The Office of the Solicitor represents the FLRA in court proceedings before all United States 

courts, including the U.S. Supreme Court, U.S. Courts of Appeals, and Federal District Courts. 

In this connection, parties aggrieved by certain Authority decisions may institute an action for 

FOREIGN

SERVICE

LABOR

RELATIONS

BOARD

FOREIGN

SERVICE

IMPASSE

DISPUTES PANEL

AUTHORITY

MEMBERS

(2)

FEDERAL

SERVICE

IMPASSES

PANEL

GENERAL

COUNSEL

CHIEF COUNSEL 

TO THE 

CHAIRMAN

CHIEF COUNSELS

(ONE TO EACH

MEMBER)

& STAFF

COLLABORATION

AND

ALTERNATIVE

DISPUTE

RESOLUTION

PROGRAM

REGIONAL

OFFICES

(7)

OFFICE OF THE

EXECUTIVE

DIRECTOR

OFFICE OF THE

SOLICITOR

OFFICE OF THE

ADMINISTRATIVE

LAW JUDGES

OFFICE OF THE

INSPECTOR

GENERAL

EQUAL

EMPLOYMENT

OPPORTUNITY

PROGRAM

CASE INTAKE

AND

PUBLICATION

DIVISION

HUMAN

RESOURCES

DIVISION

ADMINISTRATIVE

SERVICES

DIVISION

INFORMATION

RESOURCES

MANAGEMENT

DIVISION

BUDGET AND

FINANCE

DIVISION

AUTHORITY 

CHAIRMAN AND 

CHIEF 

EXECUTIVE 

OFFICER
5

judicial review within 60 days after the decision issues. The Authority may also seek 

enforcement of its orders, temporary relief or restraining orders in the appropriate U.S. Courts of 

Appeals or Federal District Courts. The Office of the Solicitor also serves as the FLRA's inhouse counsel, providing legal advice to all FLRA components and performs various functions 

under the Freedom of Information Act and Privacy Act. The Solicitor also serves as the 

Designated Agency Ethics Official.

The Office of the Inspector General provides independent and objective assessments of the 

FLRA’s efficiency, effectiveness, and compliance with laws and regulations. This is 

accomplished through proactive evaluations of agency operational processes. In addition to 

striving to prevent and detect fraud, waste, and abuse of the FLRA’s resources and operations, a 

key goal of the Inspector General is to serve as a catalyst for improving operations and 

maximizing the efficiency and integrity of agency programs.

In fulfilling these responsibilities and objectives, the Inspector General conducts and supervises 

investigations, internal reviews, audits, and evaluations of the programs and operations of the 

agency. The Inspector General communicates the results of investigations and assessments to 

FLRA management, the Congress, other oversight entities, and the public as appropriate. 

Generally, results are communicated in formal reports and contain findings and 

recommendations aimed at correcting any deficiencies identified and promoting efficiency and 

effectiveness in agency programs and operations. The Inspector General also manages a hotline 

to provide employees and the public with a direct means for communicating information on 

potential fraud, waste, or abuse.

The Office of the General Counsel

Appointed for a five-year term by the President with the advice and consent of the Senate, the 

General Counsel has independent statutory responsibility for investigating ULP charges and for 

filing and prosecuting ULP complaints. Pursuant to the Statute, the General Counsel has direct 

authority over, and responsibility for, all employees in the Office of the General Counsel (OGC), 

including those in the regions. The Regional Offices, on behalf of the General Counsel, 

investigate and resolve alleged ULPs, file and prosecute ULP complaints, and provide Statutory 

training and alternative dispute resolution (ADR) services. In addition, through delegation by 

the Authority, the Regional Offices process representation petitions and conduct secret ballot 

elections.

The General Counsel has a small staff in FLRA Headquarters, located in Washington, DC. 

Headquarters management staff provides administrative oversight; develops policies, guidance, 

procedures, and manuals that provide programmatic direction for the OGC’s seven Regional 

Offices and training and education for the parties; and processes appeals from dismissal of ULP 

charges. Each Regional Office has a Regional Director who provides leadership and 

management expertise for the respective region.
6

The Federal Service Impasses Panel

The Federal Service Impasses Panel (FSIP or the Panel) resolves impasses between Federal 

agencies and unions representing Federal employees arising from negotiations over conditions of 

employment under the Statute and the Federal Employees Flexible and Compressed Work 

Schedules Act. The Chairman and six other Members of the Panel are appointed by the 

President for five-year terms. If bargaining between the parties, followed by mediation 

assistance, does not result in a voluntary agreement, then either party or the parties jointly may 

request the FSIP’s assistance.

Following a preliminary investigation by its staff, the Panel may determine to assert jurisdiction 

over the request. If jurisdiction is asserted, then the FSIP has the authority to recommend and/or 

direct the use of various ADR procedures. These include informal conferences, additional 

mediation, fact-finding, written submissions, and mediation-arbitration by Panel Members, the 

Panel’s staff, or private arbitrators. If the parties still are unable to reach a voluntary settlement, 

then the FSIP may take whatever action it deems necessary to resolve the dispute, including 

imposition of contract terms through a final action. The merits of the FSIP’s decision may not be 

appealed to any court.

STRATEGIC AND PERFORMANCE PLANNING FRAMEWORK

The FLRA’s performance planning framework is based on the FY 2010 – 2015 Strategic Plan, 

and is supported by the Annual Performance Plan. The FLRA Performance Plan reflects the 

agency’s commitment to establishing measures that will enable it to assess performance 

outcomes, align resources, and effectively identify staffing and training needs for future years. 

The agency performance plan also demonstrates the FLRA’s on-going commitment to 

organizational excellence. Over the last four years, the agency has continued to assess and 

evaluate its performance outcomes to ensure that it is accomplishing its important mission of 

Atlanta Regional 

Office

Boston Regional 

Office

Chicago Regional 

Office

Dallas Regional 

Office

Denver Regional 

Office

San Francisco 

Regional Office

Washington DC 

Regional Office
7

providing guidance in resolving labor-management disputes in the Federal sector. Through 

comprehensive agency-wide reviews of operations, staffing, work processes, resource 

allocations, and performance with agency leadership, employees, and the Union of Authority 

Employees (UAE) – the employees’ representative organization – the FLRA is more fully

preparing to comprehensively and strategically plan for its future and establishing aggressive and 

challenging mission initiatives and performance indicators, maximizing the delivery of agency 

services throughout the Federal government.

FLRA Strategic Goals

1. Achieve superior customer service.

2. Develop leaders at every level to meet goals and position the agency for the future.

3. Advance performance through organizational and management excellence.

4. Develop, empower, and engage FLRA employees to meet program needs and improve job 

satisfaction.

The agency seeks to achieve its strategic goals primarily through the timely review and 

disposition of cases. The FLRA supplements these efforts with a focus on reducing litigation 

and its attendant costs by helping the parties resolve their own disputes through collaboration, 

ADR, and labor-management cooperation activities. These efforts are further supported by the 

FLRA’s focus on internal improvements in information technology (IT) and more effective and 

efficient use of human capital.

FY 2012 Performance Goals

1. Provide timely review and disposition of ULP cases.

2. Provide timely review and disposition of representation cases.

3. Provide timely review and disposition of arbitration cases.

4. Provide timely review and disposition of negotiability cases.

5. Provide timely review and disposition of bargaining impasse cases.

6. Use collaboration techniques and alternative dispute resolution services to minimize and/or 

resolve labor-management disputes.

7. Modernize agency information technology business systems to support and enhance 

program achievement.

8. Develop, manage, and utilize the FLRA’s human capital to meet program needs.

Timeliness

Improvements in the timeliness of case dispositions further the FLRA’s critical role in facilitating

orderly, efficient, and effective change within the Federal government. The core purpose of the 

Statute is to promote collective bargaining as a means of fostering improved employee 

performance and government operations. It is indisputable that productive and effective labormanagement relations are necessary for designing and implementing the comprehensive changes 

required to reform government, and that effective labor-management relations is dependent on the 
8

timely resolution of disputes and the engagement and participation of Federal employees and their 

union representatives as essential sources of front-line ideas and information about the realities of 

delivering government services. The FLRA facilitates improvements in performance governmentwide that will inevitably impact employee working conditions and implicate the bargaining rights 

of the more than 1.2 million employees represented by a labor organization. Unless management 

and labor can timely reach agreements or, failing that, have their disagreements resolved 

expeditiously, mission performance will suffer. This is particularly relevant now as Federal 

agencies are making significant adjustments and changes in how they perform their missions in 

response to the budget and policy challenges they are facing.

Alternative Dispute Resolution

Throughout the years, the Authority, the OGC, and the FSIP, recognizing the tremendous benefits 

and cost-savings associated with using ADR to resolve workplace disputes, have integrated ADR 

techniques into many aspects of their case processing. Offering ADR services in pending ULP, 

representation, negotiability, and bargaining impasse disputes at every step – from investigation 

and prosecution to the adjudication of cases and resolution of bargaining impasses – results in 

parties having faster, mutually agreeable, and generally more meaningful resolutions of their 

disputes. More than 15 years ago, the FLRA established the Collaboration and Alternative Dispute 

Resolution Program to place even greater and more formalized emphasis on the use of ADR.

Throughout the years, the Collaboration and Alternative Dispute Resolution Office (CADRO), as 

well as the OGC and the OALJ, have successfully conducted interventions and engaged in 

settlement efforts in thousands of cases pending before the agency. In well over 80 percent 

of FLRA cases in FY 2012 – and in some offices close to 100 percent – these activities resulted in 

the full resolution of the underlying dispute and closure of the pending case. To date, the FLRA 

has leveraged existing staff and resources to increase its ADR reach, partnering with other 

agencies – such as the Federal Mediation and Conciliation Service and the Veterans 

Administration – training large numbers of practitioners, and supporting labor-management 

forums. The demand from the community is growing, and further expansion of the FLRA’s ADR 

efforts will result in parties’ disputes being resolved more timely and expeditiously – facilitating 

ongoing, collaborative labor-management relations.

In addition, expansion of the FLRA’s training initiative is intended to make case processing more 

effective and efficient and to better serve agency customers by providing meaningful and clear 

guidance as to statutory rights and responsibilities to increase dispute avoidance, and as necessary, 

elucidate litigation of unresolved disputes. Timely and efficient case processing is furthered by 

FLRA customers being educated and knowledgeable about their rights and obligations under the 

Statute as well as agency case law, regulations, and case processing procedures. The FLRA 

delivers its educational materials through a variety of means – in-person training sessions, on-line 

meetings and training sessions, and various on-line resources – such as newly-launched web-based 

training modules, as well as outlines, manuals and guides developed to assist members of the 

Federal labor-management relations community with issues and cases arising under the Statute. 

Using collaboration and ADR techniques along with other training, outreach, and facilitation 

services to assist parties in minimizing and resolving labor-management disputes significantly 
9

reduces the need for litigation and its attendant costs, and gets parties back to work accomplishing 

their missions and the effective and efficient delivery of government services.

Information Technology

IT and automation are fundamental to ensuring an efficient and effective FLRA and to meeting 

the agency’s timeliness goals. The agency continues to improve its efficiency and the customerservice experience by engaging in new and innovative ways to conduct business, successfully 

introducing electronic case filing (eFiling) in all agency components in FY 2012. The FLRA’s 

eFiling system, which was developed to provide easier, more user-friendly, and complete access 

to the FLRA and its services, is an important e-government initiative. More specifically, eFiling 

is expected to increase efficiencies by reducing procedural-filing errors and resulting processing 

delays, and is another example of the agency’s ongoing efforts to better serve its customers and 

to provide current, useful online tools for Federal employees, the unions that represent them, and 

Federal agencies in resolving issues under the Statute. The agency-wide, cloud-based system is 

built upon the FLRA Case Management System (CMS), which was implemented in FY 2011, 

and which will provide the platform for the agency to develop an “end-to-end” electronic case 

file – enabling large scale use of telework and ultimately reducing agency space rental costs.

The FLRA’s ADR intervention efforts in pending negotiability cases have also been greatly 

enhanced through the use of technology, allowing staff to resolve large, complex negotiability 

cases with minimal cost. For example, in one case during FY 2012, a Department of Defense 

agency declared dozens of union proposals non-negotiable while the parties were renegotiating 

their term contract, and the union filed a negotiability petition with the Authority. In a case of 

this magnitude, the parties normally would appear in person at a multi-day Post Petition 

Conference, followed by formal legal submissions, extensive FLRA research and analysis of 

each issue, and a complex array of briefings and actions by Authority Members and their staffs. 

The parties in this case were located more than 4,000 miles from FLRA Headquarters, a distance 

that normally would further complicate and lengthen the dispute resolution process. But in this 

case, the parties agreed to use the agency’s ADR services and various forms of technology that 

enabled them to overcome barriers of time and distance. The FLRA used a combination of audio 

conferencing, video conferencing, secure-online data sharing, and remote document viewing and 

editing. As a result, no one traveled outside their commuting areas, some sessions were 

conducted from telecommuting locations, and after just six half-day sessions, the parties 

executed a complex, 20-page document reflecting full agreement on some issues, resolution of 

negotiability disputes concerning all other issues, and withdrawal of the negotiability petition.

In another large, complex case, an agency declared more than 30 contract proposals nonnegotiable during term-contract bargaining. The parties agreed to utilize the FLRA’s ADR 

services and brought 15 bargaining team members to the table, some from more than 1,500 miles 

away, for several days of face-to-face negotiations. The parties made substantial progress before 

agreeing to continue CADRO-facilitated ADR discussions using FLRA-hosted audio 

conferencing, online data sharing, and remote document viewing and editing services. The 15 

negotiators logged in from more than twelve independent locations over the course of two days, 

and the parties reached a full resolution of the case without the need for a decision of the 

Authority.
10

The FSIP also relies heavily on technology to increase efficiency in resolving cases. During FY 

2012, consistent with the practice it has adopted in previous years, the Panel conducted four of 

its seven business meetings via teleconference, linking Panel Members in the San Francisco, 

Chicago, and Detroit areas with their colleagues and staff in Washington, DC, saving thousands 

of dollars in travel costs and per diem expenses. In addition, Panel Members routinely 

conducted mediation-arbitration proceedings by telephone and/or video conference where on-site 

visual inspection of a facility was unnecessary to resolve impasses, avoiding the need for a Panel 

Member to travel to the location of a dispute or for the parties to send their representatives to the 

Panel’s offices.

The agency has used technology in delivering other services as well. For example, all 

government agencies look to the FLRA as one of the lead training agencies concerning President 

Obama’s Executive Order 13522, Creating Labor-Management Forums to Improve Delivery of 

Government Services, and the CADRO has helped them overcome some of the initial hurdles in 

implementing the Order. The CADRO recently assisted representatives from labor and 

management that were dispersed in many locations across 1,500 miles. As a precursor to faceto-face meetings, the CADRO office hosted an online meeting that enabled more than a dozen 

key leaders to engage in some basic training concerning the Order, share critical information, 

identify barriers preventing forward movement, agree to develop a labor-management forum 

charter, and schedule future meetings. As a result, communications were enhanced, travel costs 

were reduced, and the parties’ collaborative labor-management relationship strengthened, and 

efforts are underway with the parties to work together to develop ways to improve their mission 

performance.

Human Capital

The FLRA made major gains this year in improving all aspects of employee work-life and 

leveraging its highly engaged workforce to address agency matters, ranging from performance 

management, budget, space, and information technology. Continuing its commitment to 

communicating and involving employees in all aspects of mission performance and agency 

operations, the FLRA has established a true link between employee engagement and agency 

performance outcomes. In FY 2012, the agency accomplished a critical component of its 

succession planning, rebuilding its Regional Office management structure and maximizing the 

talent and skills cultivated through a series of developmental details offered over the last two 

years. With a commitment to increasing diversity and inclusion (D&I), the agency developed a 

D&I Strategic Plan and metrics for assessing D&I success, reaffirming the FLRA’s commitment 

to fostering a workplace where employees from all backgrounds are recruited, retained, and 

developed for successful performance and career progression. Targeted hiring of student interns 

from underrepresented groups has bolstered the FLRA’s diversity and is part of the agency’s 

effort to develop a more diverse full-time workforce.

Maximizing its training resources and leveraging the wealth of institutional knowledge within its 

own workforce, the agency instituted a large-scale agency-wide, leadership-development and 

succession planning initiative that includes executive training and developmental details 

throughout all offices. The details support individual development and help the FLRA 

strategically balance workloads and performance outcomes through realignment of internal 
11

resources. Other training initiatives include formally assessing employee training needs, which 

will enable the agency to target training resources accordingly. The FLRA also engages its 

employees through monthly educational “brown bag” series and various multi-cultural programs. 

An FLRA educational alliance with the University of Maryland University College (UMUC) 

provides employees and their families with training support in the form of tuition discounts for 

the UMUC’s undergraduate, graduate, and certificate programs.

Working in tandem with the FLRA’s Labor-Management Forum, the agency also established a 

number of issue-specific forums to engage employees in resolving various mission, operational, 

and workforce development issues. A new Administrative Forum was created with the primary 

goal of fostering a supportive and collaborative environment to aid administrative professionals 

in their career development and advancement and daily work-life. A Space Management Forum 

and a Technology Council were also created to facilitate effective and efficient utilization of 

FLRA space and IT resources, resulting in a quality working environment for employees, 

managers, and agency leadership. In addition, the FLRA expanded its alternative work schedule 

program to help employees find an appropriate work-life balance – increasing participation to 65 

percent.

A notable agency achievement, accomplished in full collaboration with the FLRA’s UAE, was 

the development and implementation of a five-tiered performance management system for 

General Schedule employees and an accompanying awards policy, intended to drive timely and 

quality performance throughout all offices of the agency. The FLRA was also one of the first 

small agencies to take part in early implementation of a new, government-wide Senior Executive 

Service performance appraisal system. These performance assessment improvements allow for a 

more accurate and beneficial assessment and recognition of employee work.

PERFORMANCE SUMMARY

The Obama Administration has pursued a challenging agenda, cutting wasteful spending and 

programs that do not work, strengthening and streamlining those that do, leveraging technology 

to transform government operations to save money and improve performance, and making 

government more responsive and open to the needs of the American people. This challenging 

agenda has required – and continues to require – major changes having a significant impact on 

the Federal workforce as well as the effectiveness and efficiency of agency operations. It has 

also presented an opportunity for Federal agencies and Federal employees and their labor 

representatives to realign, re-tool, and reassess how they do their work to bring about effective 

changes within government and to engage in collaborative dispute resolution. In addressing 

these challenges, the FLRA has demonstrated a significant, marked improvement in its 

performance and direct-service delivery, having a direct bearing on how well and quickly 

improvements in government operations have been effectuated. As such, it is an essential 

component to bringing about real change within the Federal government. The nature of the 

services that the FLRA provides its customers – in avoiding and resolving disputes that 

otherwise detract from mission performance – means that its vitality is important beyond its size.

With respect to its mission accomplishments, the FLRA has continued its significant 

improvements in providing customers with the timely, quality dispute resolution services that 
12

they deserve. Since February of FY 2009, the Authority has reduced its pending case inventory 

by 87 percent – from 394 to 50 cases, its overage case inventory by 100 percent – from 269 to 

zero, and the average age of pending cases by 81 percent – from 270 to 51 days. As a result of 

recent regulatory changes involving arbitration cases, the Authority has reduced the number of 

procedural deficiencies in parties’ filings, and clarified the grounds for the Authority’s review 

and the applicable legal standards. As a result, cases can be processed and resolved more 

expeditiously. 

Furthermore, the OGC has continued to maintain its productivity increases in FY 2012, resolving

20 percent more cases than in FY 2009. In FY 2012, the office closed more than 4,300 ULP 

cases and held trials in over 35 cases. The OGC also closed nearly 300 representation cases and 

conducted over 50 elections. The OGC’s work is of critical importance to Federal agencies 

throughout the government right now – all Federal agencies are restructuring, examining, and 

implementing new or revised work processes and procedures and leveraging technology in order 

to bring efficiency to their operations. As recognized by Executive Order 13522, strong labormanagement relations is an essential element of effectuating those changes, as well as the legal 

rights and obligations provided by the Statute and enforced by the FLRA.

In many circumstances where agencies are restructuring to bring efficiency to their operations, 

the reorganization often results in a dispute over whether a union will still represent the 

bargaining unit employees after the restructuring, and if more than one union is involved, which 

union is the representative. The OGC works hard to resolve these disputes expeditiously so that 

operations are not affected due to the uncertainty over bargaining obligations. For example, the 

Department of Defense recently created a Joint Base in Washington State, transferring some 

Army and Air Force employees who provide base-operations support to the Joint Base. The Air 

Force employees were represented by a union; the Army’s were not. An election petition was 

filed by the Air Force employees’ union, seeking to represent the 1,250 newly transferred 

employees of the Joint Base. The OGC quickly facilitated an election agreement with all 

involved parties, providing for a mail-ballot election with voting materials in three languages, 

English, Spanish, and Tagalog. Within four months, the election had taken place, and the 

question of representation was resolved shortly thereafter – the operations of the Joint Base were 

not affected by uncertainty over management’s bargaining obligations.

In another case, the OGC’s enforcement of the Statute helped an agency achieve transparency in 

its performance management process, a result which boosts morale and ensures effective 

performance of an agency’s mission. In that case, an arbitrator issued an award finding that the 

agency had consistently failed to give its employees timely (or in some cases any) performance 

appraisals or performance-based award determinations. The arbitration award required, among 

other things, the agency to take certain steps to ensure employees were appraised. The OGC 

determined that the agency was not complying at all with the arbitrator’s award in violation of 

the Statute, and as a result, the agency was directed to take specific, transparent steps to ensure 

compliance with the award.

The OALJ also continued to resolve cases at an increased pace in FY 2012. Of significant 

import is that, with nearly 750 new cases on their docket in the last three years, the ALJs have 
13

continued to settle cases without a trial – 80 percent of cases that participate in the OALJ 

Settlement Judge Program are resolved and closed.

The FSIP, which has experienced an increase in case filings every year since FY 2009 –

including an increase of over 15 percent in FY 2012 – has also showed improved performance 

outcomes. In particular, over the last three years, the FSIP closed more cases each year than in 

FY 2009, and with its commitment to obtaining settlements rather than issuing decisions, 

returned to its original guiding philosophy that the voluntary settlement of bargaining impasses 

using mediation-arbitration techniques is the most effective and efficient form of dispute 

resolution.

In managing its growing caseload, the FSIP prioritizes case processing to ensure that disruption 

to government operations and cost to the taxpayers is minimized. For example, in response to 

Administration initiatives, Region 7 of the Environmental Protection Agency (EPA) decided to 

relocate approximately 650 employees, grantees, and contractors to an office in the Kansas City 

area, which reduced total space by 20 percent. Subsequent negotiations between the EPA and its 

two exclusive representatives resulted in six requests for FSIP assistance starting in March 2012. 

The Panel’s intervention resulted in an arbitration award by one of its Members involving two of 

the requests, and written decisions by the full Panel concerning the other four. Because of the 

Panel’s prompt action in resolving the impasses, the EPA was able to complete the relocation in 

time to prevent taxpayers from having to pay rent at two locations while renovations to the 

facility were being completed. There currently is a similar request for assistance before the 

Panel involving the relocation of the EPA’s Region 9, resolution of which will also require 

expedited treatment to minimize costs and disruption. In addition, as in previous years, the FSIP 

conducted mediation-arbitration proceedings in a number of cases to resolve impasses 

expeditiously between the Social Security Administration and its unions over the floor plans for 

newly-relocated field offices, preventing unnecessary taxpayer expenditures. 

Of significant import are the tremendous efficiencies gained through the FLRA’s use of 

collaboration techniques and ADR to minimize and resolve labor-management disputes. In FY 

2012, the OGC resolved 97 percent of the ULP cases and 91 percent of the representation cases 

in which parties agreed to engage in ADR to collaboratively resolve their dispute. This resulted

in over 490 cases being resolved without the need for further investigation and litigation.

The FLRA’s CADRO also continued its work with parties to resolve or narrow their disputes in 

pending cases using ADR. Most noteworthy are a number of cases that involved complex, longstanding disputes – such as training issues regarding qualification to carry a firearm – that the 

parties had expended resources on for many years, and were able to resolve with the assistance 

of the CADRO. As recognized in the settlement efforts of the OALJ, the OGC, and the FSIP, 

working with parties to bring about a voluntary resolution or settlement of their dispute is the 

most effective and efficient form of dispute resolution – it gets the parties back to work, 

delivering government services to the American people.

Furthermore, the FLRA continued to build upon its leadership role in labor-management 

relations by delivering hundreds of training, outreach, and facilitation sessions in FY 2012 to 

thousands of practitioners. The FLRA also continued its engagement with the labor-
14

management community by issuing numerous press releases, conducting town halls – including 

the first-ever virtual town hall – and holding focus groups on agency processes and procedures. 

Among the external initiatives that will be important in FY 2013 is training and education for 

labor and management representatives and others, including arbitrators. Indeed, requests for 

training are received daily in all of the FLRA’s components, and this demand is expected to 

continue if not increase. The FLRA will also continue to partner with Federal agencies to 

identify training needs and resources to meet those needs.

In 2010, the FLRA was named the Most Improved Small Agency by the Partnership for Public 

Service. Building upon this success in 2011, the FLRA again placed among the top of the Most 

Improved Small Agencies, moving from the #1 ranking that it captured in 2010 to the #2 ranking

in 2011. Also in 2011, the FLRA captured the #7 small agency ranking in the Best Places to 

Work in the Federal Government survey, making a significant jump from its #20 ranking held in 

2010. Identified as an "agency on the rise," the FLRA built upon its 2010 success – where it 

achieved a dramatic and unprecedented improvement of more than 250 percent – recording an 

additional twelve percent increase in its 2011 Best Places to Work score.

The FLRA's achievements are particularly noteworthy given that just two years prior the agency 

placed last in the 2009 rankings of small agencies. Most notable for 2011 are the FLRA’s 

rankings for certain “Best in Class” categories – taking 2nd, 3rd and 4th place in teamwork, 

effective leadership, and employee skills/mission-match, respectively.

In a recent report issued by the Partnership for Public Service, the FLRA was also recognized as 

the Most Improved Small Agency on Innovation. Moving up eight percentage points, the FLRA, 

which was ranked 24th out of 34 small agencies in 2010, is now ranked 13th of 34. The FLRA’s 

2011 innovation score of 67 percent exceeds the government-wide average of 63 percent. The 

report – which finds that if we want a 21st century Federal government that effectively serves the 

needs of the American people, then agencies need to embrace transformation and inspire 

employees to seek continuous improvement – recognizes the importance of leaders empowering 

employees to initiate change and reward them for their achievements. Given today’s budgetary 

constraints, Federal employees and their agencies are being asked to deliver more with fewer 

resources, and this means that innovation will be a critical factor in achieving improved 

0

20

40

60

80

100

2005 2007 2009 2010 2011

Best Places to Work Score
15

performance. The FLRA is pleased to be recognized for empowering its employees in this 

regard.

Furthermore, in 2012, the agency continued its success in the Office of Personnel Management’s 

Federal Employee Viewpoint Survey, with an employee response rate of 75 percent –

significantly greater than the government-wide rate of 46 percent. The FLRA scored 78 percent 

in leadership and knowledge management, 70 percent in results-oriented performance culture, 70

percent in talent management, and 72 percent in job satisfaction – each exceeding the 

government-wide average.

Human Capital 

Management Indices

2008 

% Positive

2012 

% Positive

Positive % 

Increase 

2008-2012

Leadership & Knowledge Management 35 78 123

Results-Oriented Performance Culture 43 70 63

Talent Management 39 70 80

Job Satisfaction 46 72 57

The FLRA’s dramatic and sustained improvements reflect both the commitment of leadership to 

managing the FLRA with transparency and accountability and engaging employees at all levels,

as well as the commitment and dedication of all FLRA employees. Consistent with the 

significant increase in employee morale and satisfaction is the significant, marked improvement 

in the FLRA's mission performance and delivery of services to its customers.

Performance Outcome Measures

FY 2012

Target

FY 2012

Actual Result

Strategic Goal 1: Achieve superior customer service.

Performance Goal 1: Provide timely review and disposition of unfair labor practice cases.

A. 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.

55% 61% Exceeded

B. 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.

90%/100% 99%/100% Exceeded/ 

Met

C. 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.

90% 90% Met

D. Measure 1.4: The percentage of ULP cases 

decided within 180 days of assignment to an 

Authority Member.

50% 75% Exceeded
16

Performance Outcome Measures

FY 2012

Target

FY 2012

Actual Result

Performance Goal 2: Provide timely review and disposition of representation cases.

Measure 2.1: 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.

60% 62% Exceeded

Measure 2.2: The percentage of 

representation cases in which a decision 

whether to grant review is issued within 60 

days of assignment to an Authority Member.

100% 100% Met

Performance Goal 3: Provide timely review and disposition of arbitration cases.

Measure 3.1: The percentage of arbitration 

cases decided within 180 days of assignment 

to an Authority Member.

50% 58% Exceeded

Performance Goal 4: Provide timely review and disposition of negotiability cases.

Measure 4.1: The percentage of 

negotiability cases decided within 180 days 

of assignment to an authority Member 

(reflecting reasonable time for a post-petition 

conference).

50% 50% Met

Performance Goal 5: Provide timely review and disposition of bargaining impasse cases.

Measure 5.1: The percentage of bargaining 

impasse cases in which jurisdiction is 

declined closed within 140 days of the date 

filed.

80% 92% Exceeded

Measure 5.2: The percentage of bargaining 

impasse cases voluntarily settled after 

jurisdiction has been asserted within 160 

days of the date filed.

70% 86% Exceeded

Measure 5.3: The percentage of bargaining 

impasse cases resolved through a final action 

closed within 200 days of the date filed.

70% 77% Exceeded

Performance Goal 6: Use collaboration techniques and alternative dispute resolution 

services to minimize and/or resolve labor-management disputes.

Measure 6.1: 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.

85% 97% Exceeded

Measure 6.2: The percentage of ULP cases 

in the OALJ in which an offer of Settlement 

Judge services is accepted by the parties that 

80% 80% Met
17

Performance Outcome Measures

FY 2012

Target

FY 2012

Actual Result

are partially or totally resolved.

Measure 6.3: 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.

85% 91% Exceeded

Measure 6.4: The percentage of arbitration 

cases in which an offer of ADR services is 

accepted by the parties that are partially or 

totally resolved.

50% Not 

Applicable

Not 

Applicable

Measure 6.5: The percentage of 

negotiability cases in which an offer of ADR 

services is accepted by the parties that are 

partially or totally resolved.

80% 100% Exceeded

Measure 6.6: The percentage of bargaining 

impasse cases in which an offer of ADR 

services is accepted by the parties that are 

partially or totally resolved.

30% 32% Exceeded

Measure 6.7: The number of training, 

outreach, and facilitation activities 

conducted.

175 221 Exceeded

Measure 6.8: The number of participants 

involved in training, outreach, and 

facilitation activities.

5,000 8,933 Exceeded

Strategic Goal 3: Advance performance through organizational and management excellence.

Performance Goal 7: Modernize agency IT business systems to support and enhance 

program achievement.

Measure 7.1: The percentage of cases filed 

electronically with the FLRA.

Complete 

development 

of Authority 

and OGC 

eFiling 

capability. 

Begin testing 

e-filing 

capability with 

customers.

Completed

development 

of Authority 

and OGC 

eFiling

capability. 

Began testing 

e-filing 

capability with 

customers.

Met

Measure 7.2: The percentage of cases 

processed electronically end-to-end.

Enhance the 

CMS to 

provide the 

structure that 

supports endEnhanced the 

CMS to 

provide the 

structure that 

supports endMet
18

Performance Outcome Measures

FY 2012

Target

FY 2012

Actual Result

to-end 

electronic case 

processing.

to-end 

electronic case 

processing.

Strategic Goal 4: Develop, empower, and engage FLRA employees to meet program needs 

and improve job satisfaction.

Performance Goal 8: Develop, manage, and utilize FLRA’s human resources to meet 

program needs.

Measure 8.1: Program managers ensure 

that the right employees are in the right place 

to achieve results.

Enhance 

development 

offerings to 

include 

competencybased training, 

career-ladder 

developmental 

programs, and 

continuation of

human 

resources 

workshops and 

educational 

brown-bags. 

Develop and 

implement the 

affirmative 

action plan and 

diversity 

outreach 

program.

Enhanced 

development 

offerings to 

include 

competencybased training, 

career-ladder 

developmental 

programs, and 

continuation of

human 

resources 

workshops and 

educational 

brown-bags. 

A D&I 

Strategic Plan 

was launched 

to make the 

agency a more 

inclusive and 

inviting 

workplace for 

all of its 

employees. 

Hiring of 

summer 

student interns, 

in some cases 

using targeted 

minority hiring 

strategies, also 

increased the 

FLRA’s 

diversity. 

Met
19

Performance Outcome Measures

FY 2012

Target

FY 2012

Actual Result

Developmental 

offerings were 

expanded to 

include 

attorney 

details within 

the FLRA.

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 Office of Management and Budget (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 is its largest asset, accounting for over 90 percent of total assets in both FY 2011 and 

FY 2012. 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, fixtures, equipment, and IT hardware and software, which is recorded at 

original acquisition cost and then depreciated or amortized using the straight-line method over 

the estimated useful life of the asset.

Total assets decreased from $7.1 million at the end of FY 2011 to $4.9 million at the end of FY 

2012. The decrease in assets is primarily attributable to the cancellation of the FLRA’s FY 2007

expired account, which held $2 million in unobligated funds. Moreover, the agency did not 

make any new capitalized purchases in FY 2012, while the net book value of property and 

equipment already owned experienced further depreciation.
20

Assets as of September 30, 2012 2011

Fund balance with the Treasury $4,525,133 $6,532,013

General property and equipment 353,163 525,753

Accounts receivable 13,507 22,264

Advances and prepayments 21,414 11,212

Total $4,913,217 $7,091,242

Funds held with the Treasury are available to pay agency 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. Accrued employee leave, payroll, and benefit costs, along 

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

accounted for over 90 percent of total liabilities at the end of both FY 2011 and FY 2012. The 

remaining ten percent reflects the amount owed by FLRA to vendors and other Federal agencies 

for purchased goods and services. Agency liabilities totaled $4.4 million at the end of both FY 

2011 and FY 2012.

Liabilities as of September 30, 2012 2011

Unfunded leave $1,519,345 $1,513,590

FECA liability 1,426,017 1,380,317

Accrued payroll and benefits 1,207,777 1,280,740

Accounts payable 225,496 232,681

Custodial liability/other 40 80

Total $4,378,675 $4,407,408

The FLRA’s total net position at the end of FY 2012 was $535 thousand, a $2.1 million 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 2012 was $26.3 million, a $448 thousand decrease from the agency’s FY 2011 cost of 

operations. In FY 2012, 56 percent of the agency’s direct resources were dedicated to the 

Authority, which includes central administrative services provided to the entire agency; 41

percent were dedicated to the OGC; the remaining three percent were devoted to the FSIP.
21

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 priorperiod adjustments, the remaining book value of capitalized assets, and future funding 

requirements. Cumulative results remained relatively constant from FY 2011 to FY 2012, 

totaling approximately $2.5 million.

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

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

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

deducting the cumulative obligations from the amount available for obligation. The decrease in 

total, unexpended FLRA appropriations of nearly $1.9 million – from $5 million to $3.1 million 

– is due primarily to expiration of the agency’s FY 2007 account.

Statement on Budgetary Resources

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

during FY 2011 and FY 2012 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, the FLRA mission, Executive Order 13522, etc.

The agency had $26.6 million in total budgetary resources available to it in FY 2012, of which 

$1.8 million remained unobligated from prior-years. The agency incurred obligations of $24.8 

FY 2012 Financial Obligations by Budget Object Class

Compensation & benefits (78%)

Rent & utilities (10%)

Other contractual services (8%)

Supplies & equipment (2%)

Communications (1%)

Travel & transportation (1%)
22

million in FY 2012, while recording outlays of $24.7 million. Total budgetary resources 

decreased by $1.4 million in FY 2012 from expiration of the FLRA’s FY 2007 account.

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 

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 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 regulation as of September 30, 2012, 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.

Carol Waller Pope

Chairman

November 15, 2012
23

PERFORMANCE GOALS AND RESULTS

GOAL 1: PROVIDE TIMELY REVIEW AND DISPOSITION OF UNFAIR 

LABOR PRACTICE CASES.

The General Counsel has responsibility for the investigation, settlement, and prosecution of

unfair labor practice (ULP) charges. All ULP proceedings originate with the filing of a charge in 

a Regional Office by an employee, labor organization, or agency. Once a charge has been filed, 

Regional Office staff will investigate the charge to determine if 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 Administrative Law Judge (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 the decision to the General Counsel in Washington, 

DC. If the dismissal is upheld, then the case is closed. The Authority has appointed ALJs to 

hear ULP cases prosecuted by the General Counsel. Decisions of the ALJs are transmitted to the 

Authority, and may be affirmed, modified, or reversed in whole or in part. If no exceptions are 

filed, then a decision by the ALJ is adopted by the Authority.

OGC FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 2,300 1,237 1,587 1,811 1,453

Charges filed 3,572 3,954 4,398 4,094 4,375

Total caseload 5,872 5,191 5,985 5,905 5,828

Charges withdrawn/settled 2,648 2,455 3,141 3,425 3,377

Charges dismissed 1,941 1,075 751 812 732

Complaints issued 46 74 282 215 231

Total cases closed 4,635 3,604 4,174 4,452 4,340

Cases pending, end of year 1,237 1,587 1,811 1,453 1,488

OALJ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 25 0 67 54 72

Cases received from the OGC 46 74 282 234 229

Total caseload 71 74 349 288 301

Settlements before hearing 59 7 275 191 176

Settlements during hearing 0 0 0 0 1

Cases closed by decision 12 0 20 25 20

Total cases closed 71 7 295 216 197

Cases pending, end of year 0 67 54 72 104
24

Authority FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 36 32 14 14 6

Exceptions filed 11 1 18 17 20

Total caseload 47 33 32 31 26

Cases closed procedurally 9 0 9 13 16

Cases closed based on merits 6 19 9 12 8

Total cases closed 15 19 18 25 24

Cases pending, end of year 32 14 14 6 2

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 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

48% 71% 49% 54% 55% 61%

Data Source: Case Management System

Target: Exceeded. The OGC has steadily increased its performance in this measure, from 49 

percent in FY 2010 to 61 percent in FY 2012, due to a continued focus on timeliness of case 

processing and the careful management of existing staff.

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 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

19% 2% 31% 97%/100% 90%/100% 99/100%

Data Source: Case Management System

Target: Exceeded/Met. In FY 2011, an additional target was established to measure the 

percentage of decisions on appeal issued within 120 days (100 percent). Since the OGC 

cleared a substantial backlog of appeals in FY 2010, that resulted from the absence of a 

General Counsel and Deputy General Counsel for 17 months, the office has been able to 

consistently exceed this target by issuing nearly all appeals within 60 days, and issuing the 

very few that do not meet that target within 120 days.

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

decided in the Office of the Administrative Law Judges (OALJ) within 180 days of the 

complaint being issued.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 95% 90% 90%
25

Data Source: Case Management System

Target: Met. This measure was established in FY 2011, as a consolidation of two previous 

90-day measures into one of 180 days. The OALJ met this goal by pursuing early resolution 

of cases prior to expending the time and money necessary to conduct a due process hearing on 

the ULP complaint. Using prehearing conferences to narrow the issues and assist the parties in 

understanding the strength and viability of their position encourages the parties to find 

common ground and resolve the dispute.

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

Authority Member.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A 5% 18% 31% 50% 75%

Data Source: Case Management System

Target: Exceeded. This measure and the associated targets for FY 2009 through FY 2012 

were established in the Authority’s Corrective Action Plan (CAP) to eliminate its case backlog 

by FY 2012. Consistent with the CAP, the Authority ended FY 2012 with no overage ULP 

cases (those pending for more than 180 days after completion of the briefing sequence and 

assignment to a Member office) in its inventory. Moreover, the Authority exceeded its 

timeliness target by issuing 75 percent of all ULP decisions within 180 days of assignment.

GOAL 2: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

REPRESENTATION CASES.

The Federal Service Labor-Management Relations Statute (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 by the filing in a Regional Office of a petition by an individual, 

labor organization, or agency. 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 issue a Decision and Order 

determining the appropriate unit, directing an election, dismissing the petition, or making other 

disposition of the matter. The Regional Director’s Decision and Order is final unless an 

application for review is filed with the Authority.
26

OGC FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 156 140 104 102 82

Petitions filed 289 275 278 267 271

Total caseload 445 415 382 369 353

Petitions withdrawn 132 142 113 126 115

Cases closed based on merits 173 169 167 161 168

Total cases closed 305 311 280 287 283

Cases pending, end of year 140 104 102 82 70

Authority FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 4 3 5 6 6

Applications for review 14 17 15 12 6

Total caseload 18 20 20 18 12

Cases closed procedurally 1 1 1 0 0

Cases closed based on merits 14 14 13 12 12

Total cases closed 15 15 14 12 12

Cases pending, end of year 3 5 6 6 0

Measure 2.1: 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 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A 60% 65% 60% 60% 62%

Data Source: Case Management System

Target: Exceeded. This performance measure was established in FY 2009 to consolidate 

three previous measures. Due to a continued emphasis on timeliness at all levels, and through 

the careful management of existing staff, the OGC was able to exceed its target for resolving 

representation cases.

Measure 2.2: The percentage of representation cases in which a decision whether to grant 

review is issued within 60 days of assignment to an Authority Member.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A 100% 100% 100% 100%

Data Source: Case Management System

Target: Met. This measure was established in FY 2010 to be consistent with the time 

limitation provided for in the Statute. The Authority continued its performance from FY 2011 

and issued decisions whether to grant review within 60 days of assignment in all 
27

representation cases.

GOAL 3: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

ARBITRATION CASES.

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

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

been filed to determine if 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 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 216 298 247 173 66

Exceptions filed 126 157 134 110 107

Total caseload 342 455 381 283 173

Cases closed procedurally 12 43 31 22 24

Cases closed based on merits 32 165 177 195 109

Total cases closed 44 208 208 217 133

Cases pending, end of year 298 247 173 66 40

Measure 3.1: The percentage of arbitration cases decided within 180 days of assignment to 

an Authority Member.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A 22% 30% 33% 50% 58%

Data Source: Case Management System

Target: Exceeded. This measure and the associated targets for FY 2009 through FY 2012 

were also established in the Authority CAP. The Authority met its CAP goal of eliminating all 

overage arbitration cases by the end of FY 2012. In addition, the Authority exceeded its 

timeliness target by issuing 58 percent of all arbitration decisions within 180 days of 

assignment to a Member office.

GOAL 4: PROVIDE 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 these cases, a union may petition the 

Authority to resolve the negotiability dispute.
28

Authority FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 43 51 39 22 15

Petitions filed 38 43 52 39 45

Total caseload 81 94 91 61 60

Cases closed procedurally 22 41 46 33 38

Cases closed based on merits 8 14 23 13 14

Total cases closed 30 55 69 46 52

Cases pending, end of year 51 39 22 15 8

Measure 4.1: The percentage of negotiability cases decided within 180 days of assignment to 

an Authority Member (reflecting reasonable time for a post-petition conference).

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A 6% 17% 29% 50% 50%

Data Source: Case Management System

Target: Met. This measure and the targets for FY 2009 through FY 2012 were also 

established in the Authority’s CAP. Consistent with the CAP, the Authority ended FY 2012 

with no overage negotiability cases in its inventory. The Authority also met its target of 

issuing 50 percent of all negotiability decisions within 180 days of assignment to a Member 

office.

GOAL 5: PROVIDE 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 Federal Service Impasses Panel (FSIP or the 

Panel) approves the procedure; seek the services and assistance of the Federal Mediation and 

Conciliation Service; or seek the assistance of the Panel in resolving the negotiation impasse, 

only after the previous attempts have failed.

FSIP FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Cases pending, start of year 23 22 69 36 53

Impasses filed 111 136 143 152 176

Total caseload 134 158 212 188 229

Cases closed 112 89 176 135 191

Cases pending, end of year 22 69 36 53 38
29

Measure 5.1: The percentage of bargaining impasse cases in which jurisdiction is declined 

closed within 140 days of the date filed.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 64% 80% 92%

Data Source: Case Management System

Target: Exceeded. The performance measures for the FSIP were completely revised in FY 

2011 to concisely set forth timeliness targets for the Panel’s three most important categories of 

case disposition. The FSIP’s success in its second full year under the revised timeliness

measures in exceeding its performance target in cases where jurisdiction is declined is 

attributable to a number of factors, among them, an increase in the effectiveness of the Panel’s 

professional staff in getting parties to adhere to tight deadlines for the submission of written 

statements of position (SOPs) that normally are required before such cases can be presented to 

the Panel for a procedural determination. In this regard, the FSIP’s investigatory process is 

informal and designed to narrow the parties’ disputes through voluntary settlements in 

accordance with its long-longstanding philosophy that the best dispute resolution takes the 

form of agreements that are reached with the Panel’s assistance rather than those that are 

imposed through a written decision. Since Panel meetings are normally scheduled well in 

advance, the staff’s increased ability to close its investigations and to present its written 

recommendations to the Panel Members at the next available opportunity also factors into the 

FSIP’s success in exceeding its target under this performance measure.

Measure 5.2: The percentage of bargaining impasse cases voluntarily settled after jurisdiction 

has been asserted within 160 days of the date filed.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 79% 70% 86%

Data Source: Case Management System

Target: Exceeded. Impasses that are voluntarily resolved after jurisdiction has been asserted 

normally require less time to investigate because parties are less likely to raise significant 

jurisdictional issues that require the submission of SOPs during the investigation phase of case 

processing. In addition, such cases often involve mid-term changes by agencies that are time 

sensitive and would lead to increased costs to the taxpayer if they are not handled 

expeditiously. This same factor motivates the Panel and the parties to promptly schedule the 

procedure used to resolve the dispute which eventually results in a voluntary settlement. The 

FSIP’s continued ability to exceed its timeliness target in cases that are settled voluntarily after 

jurisdiction has been asserted is also enhanced considerably by the willingness of its part-time 

Panel Members to modify their own personal and professional schedules to accommodate the 

assignments they undertake on behalf of the FSIP.
30

Measure 5.3: The percentage of bargaining impasse cases resolved through a final action 

closed within 200 days of the date filed.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 65% 70% 77%

Data Source: Case Management System

Target: Exceeded. Cases resolved through final actions normally require written decisions 

issued by the full Panel (Decisions and Orders) or one of its Members imposing terms on the 

parties (Arbitrators’ Opinions and Decisions). The FSIP was able to exceed its target for FY 

2012 primarily because of the increased awareness on the part of the Panel Members and staff 

of the need to realign priorities when the 200-day deadline was approaching in specific 

impasses, particularly in cases involving mid-term changes that would lead to increased costs 

to the taxpayer if they are not handled expeditiously. Once again, the FSIP’s ability to exceed 

this target was enhanced considerably by the willingness of its part-time Panel Members to 

modify their own personal and professional schedules to accommodate their FSIP 

assignments. In addition, the number of cases where the parties were required to resolve 

complex, multi-issue successor collective bargaining agreement impasses through a procedure 

whereby a private fact-finder provides additional mediation assistance and, ultimately, a report 

to the Panel and the parties recommending terms for settlement remained about the same as in 

FY 2011. This procedure effectively permits the parties to schedule the stages of the process 

themselves, which often leads to increases in processing times and results in lengthier written 

decisions that require more time for drafting and final review. At the end of FY 2012, 

however, a number of such cases were still pending before the FSIP. It is anticipated that 

lengthy written decisions regarding them will have to be issued in FY 2013, a development 

that enhanced the FSIP’s ability to exceed this performance target in FY 2012, but may have 

an adverse impact on its ability to meet the target for the next fiscal year.

GOAL 6: USE COLLABORATION TECHNIQUES AND ALTERNATIVE 

DISPUTE RESOLUTION SERVICES TO MINIMIZE AND/OR RESOLVE 

LABOR-MANAGEMENT DISPUTES.

The FLRA has integrated alternative dispute resolution (ADR) and consensus decision-making 

into virtually all of its processes, and significantly expanded its training, outreach, and 

facilitation activities since FY 2011. 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 

relationship. This includes interest-based conflict resolution and intervention services in pending 

ULP cases, representation cases, arbitration cases, negotiability appeals, and impasse bargaining 

disputes. The agency also provides facilitation and training to help labor and management 

develop collaborative relationships. Many of the FLRA’s training programs are now available as 

web-based training modules, bringing educational tools and resources directly to the agency’s 

customers at their desks to further assist them in resolving labor-management disputes.
31

Measure 6.1: 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.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 87% 85% 97%

Data Source: Case Management System

Target: Exceeded. This performance goal was established in FY 2011 to emphasize the 

importance of using collaboration and ADR techniques along with other training, outreach, 

and facilitation services to assist parties in minimizing and resolving labor-management 

disputes. The goal encompasses all three FLRA components. The OGC continues to place 

substantial emphasis on the settlement of ULP cases at all stages, particularly before the 

issuance of a complaint, and accordingly, exceeded its target for FY 2012.

Measure 6.2: 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.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 88% 80% 80%

Data Source: Case Management System

Target: Met. The OALJ uses its Settlement Judge Program to assist the parties in ADR after 

a complaint has been issued and prior to the parties’ hearing preparation in an effort to find 

common interests and to inspire a resolution that works for all involved. Unlike settlement 

discussions conducted by an ALJ assigned to conduct the hearing, this process is generally 

interest-based rather than fact-based, and does not involve assessing the strength or viability of 

the parties’ positions. The percentage of cases that are partially or totally resolved as a part of 

the Settlement Judge Program can be affected by several factors: (1) these discussions occur 

at a point in the process before the parties are fully knowledgeable about the subject matter 

and the strength or weakness of their own case; (2) parties understand that additional stages 

remain available in the litigation process and they are not fully vested or motivated to resolve 

the matter at the time; and (3) parties may come to the process with a hardened position, a 

desire to vindicate legal rights, and/or an unwillingness to compromise upon their position. 

The observed trend reflected in the third factor is the primary reason for the reduced success

from FY 2011.

Measure 6.3: 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.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 93% 85% 91%

Data Source: Case Management System
32

Target: Exceeded. The OGC also continues to place substantial emphasis on bringing the 

parties together to work out their differences in representation cases, through trainings, prepetition meetings, post-petition conference calls and meetings, and by generally encouraging

them to narrow and settle their issues through ADR and other means. Thus, the OGC 

exceeded its ADR target for representation cases in FY 2012.

Measure 6.4: The percentage of arbitration cases in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 100% 50% N/A

Data Source: Case Management System

Target: Not Applicable. In FY 2012, there was only one arbitration case in which an offer 

of ADR services was accepted by the parties. The ADR process concerning that case was still 

ongoing at the end of the fiscal year. As a result, this performance measure, which tracks the 

partial or total resolution of accepted cases, did not apply in FY 2012.

Measure 6.5: The percentage of negotiability cases in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 87% 80% 100%

Data Source: Case Management System

Target: Exceeded. In FY 2012, parties accepted ADR services from the FLRA’s 

Collaboration and Alternative Dispute Resolution Office (CADRO) in 32 pending 

negotiability cases, and CADRO fully or partially resolved 100 percent of those cases –

exceeding its 80 percent target. Specifically, of the 32 cases, the CADRO achieved full 

resolution in 24; achieved partial resolution in two; clarified issues or facts for the parties in 

five; and obtained a withdrawal from the parties in one. Through use of ADR services, these 

32 cases, which would otherwise be pending on the Authority’s docket, were expeditiously 

resolved with no further need for litigation, getting the parties back to conducting the business 

of government.

Measure 6.6: 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 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 29% 30% 32%

Data Source: Case Management System

Target: Exceeded. The Panel’s ability to exceed its FY 2012 target is a reflection of the 

superior mediation and facilitation skills of its current Panel Members, all of whom have 
33

extensive experience in the Federal sector labor relations program, and its three professional 

staff. In addition, the high percentage of cases partially or totally resolved without the need 

for written final actions is consistent with the Panel’s philosophy since its inception that 

voluntary settlements are in the best interests of the parties and the public, and that the Panel 

performs its mission best when it serves as a catalyst in helping negotiators settle a matter 

informally on their own terms.

Measure 6.7: The number of training, outreach, and facilitation activities conducted.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 332 175 221

Data Source: Case Management System

Target: Exceeded. Much of the demand in FY 2011 and FY 2012 was for overview training 

on instituting forums and pre-decisional involvement under President Obama’s Executive 

Order 13522, Creating Labor-Management Forums to Improve Delivery of Government 

Services. This training is now available through a web-based training course. In FY 2013, the 

FLRA expects to have additional web-based training courses available to the parties –

including comprehensive arbitration, representation, and statutory training – that would 

otherwise be provided in-person. As such, the results for FY 2012 are lower than FY 2011 for 

both ADR training measures as the agency increased the delivery of its training through nocost, web-based services.

Measure 6.8: The number of participants involved in training, outreach, and facilitation 

activities.

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Actual Actual Actual Actual Target Actual

N/A N/A N/A 11,975 5,000 8,933

Data Source: Case Management System

Target: Exceeded.

GOAL 7: MODERNIZE AGENCY INFORMATION TECHNOLOGY 

BUSINESS SYSTEMS TO SUPPORT AND ENHANCE PROGRAM 

ACHIEVEMENT.

The FLRA’s Case Management System (CMS) was implemented in FY 2011, and since that 

time, the agency has steadily built the necessary capacity for electronic case filing (eFiling) in all 

agency components, as well as development of a complete electronic case file. The FLRA has 

met its key milestones, and is poised to have its customers maximize use of the eFiling system in 

FY 2013, significantly enhancing the quality of parties’ filings and reducing procedural 

deficiencies. In addition, the FLRA intends to fully implement an “end-to-end” electronic case 

file, streamlining the processing and handling of agency case files.
34

Measure 7.1: The percentage of cases filed electronically with the FLRA.

FY 2008 Actual N/A

FY 2009 Actual Awarded a contract for CMS development using the cloud solution, 

QuickBase.

FY 2010 Actual Implemented the new CMS for all three FLRA components. 

FY 2011 Actual Began developing an electronic filing solution. Completed 

development of customer registration and FSIP eFiling capability.

FY 2012

Target Complete development of Authority and OGC eFiling capability. 

Begin testing eFiling capability with customers.

Actual Completed development of Authority and OGC eFiling capability. 

Began testing eFiling capability with customers.

Data Source: FLRA Information Resources Management Division

Target: Met.

Measure 7.2: The percentage of cases processed electronically end-to-end.

FY 2008 Actual N/A

FY 2009 Actual N/A

FY 2010 Actual N/A

FY 2011 Actual N/A

FY 2012

Target Enhance the CMS to provide the structure that supports end-to-end 

electronic case processing.

Actual Enhanced the CMS to provide the structure that supports end-to-end 

electronic case processing.

Data Source: FLRA Information Resources Management Division

Target: Met.

GOAL 8: DEVELOP, MANAGE, AND UTILIZE THE FLRA’S HUMAN

CAPITAL TO MEET PROGRAM NEEDS.

The FLRA, in consultation with the FLRA Labor-Management Forum, made major gains in FY 

2012 in terms of developing, managing, and utilizing human capital. Expansion of the 

alternative work schedule program allows employees to better balance their personal lives with 

the demands of their work. Implementation of an electronic time and attendance system, 

expected in FY 2013, will make time and attendance recording and submission more accurate 

and efficient.

Succession planning continues to be a major area of concern for the FLRA. Recently 

implemented developmental details for attorneys, both in FLRA Headquarters and in the OGC 

Regional Offices, will allow for the individual development of those who participate, and will

also allow the agency to manage workloads and succession planning more strategically. The 

agency’s performance management and awards policies have also been revised to reflect a move 
35

from a pass-fail review system to one that assesses employee performance on a five-tiered scale. 

These revisions will make performance review more meaningful, and will ensure that awards are 

distributed on the basis of merit. A training needs assessment has also been conducted, with a 

high rate of response from agency attorneys and their supervisors in mission-critical positions. 

The results from that assessment have played a role in targeting training funds to the areas 

employees and supervisors deemed most in need of development.

Measure 8.1: Program managers ensure that the right employees are in the right place to 

achieve results.

FY 2008 Actual N/A

FY 2009 Actual N/A

FY 2010 Actual

Increased staffing levels in each program area; improved employee 

worklife balance through implementation of a robust telework 

program and video-conferencing, which reduces travel costs and time 

away from family; implemented an employee leadership 

developmental initiative in the OGC; and implemented a Student 

Temporary Employment Program. Also began human capital einitiatives to improve hiring through the purchase of USAStaffing (an 

automated hiring system), which engages the hiring manager in all 

aspects of the hiring process, reduces time-to-hire metrics, and 

improves applicants’ Federal hiring experience.

FY 2011 Actual

The FLRA continued to focus on employee engagement in FY 2011. 

Its Labor-Management Forum updated the Alternative Work Schedule 

policy, which increased flexibility within the program, began work on 

recognizing diversity through special emphasis programs, and 

initiated efforts to update employee awards programs. The agency 

also formed a joint labor-management workgroup to design a new 

Performance Management System for General Schedule employees 

for Office of Personnel Management (OPM) approval and agency 

implementation; an employee workgroup also designed and submitted 

to OPM for approval a revised Senior Executive Service appraisal 

system. Consistent with the Human Capital Strategic Plan, FLRA 

developed a training needs assessment, which will be used to create 

individual development plans to address areas needing skills 

improvement and to further increase mission-critical competencies. 

Additionally, the agency supported employee ideas, initiatives, and 

employee-focused programs, such as “Bring Your Child to Work” 

day, Public Service Recognition Week, a health benefits fair, and a 

blood drive. FLRA also initiated brown-bag programs and an 

educational series to inform and develop employees in a casual

setting. Human capital e-initiatives continued with the successful 

implementation of USAStaffing, NBC’s DataMart reporting tool, and 

employee eOPFs. The agency also procured Kronos WebTA, an 

automated employee time tracking system, which is scheduled for 

delivery in FY 2013.
36

FY 2012

Target

Enhance development offerings to include competency-based 

training, career-ladder developmental programs, and continuation of

human resources (HR) workshops and educational brown-bags. 

Develop and implement the affirmative action plan and diversity 

outreach program.

Actual

Enhanced development offerings to include competency-based 

training, career-ladder developmental programs, and continuation of 

HR workshops and educational brown-bags. A Diversity and 

Inclusion Strategic Plan was launched to make the agency a more 

inclusive and inviting workplace for all of its employees. Hiring of 

summer student interns, in some cases using targeted minority hiring 

strategies, also increased the FLRA’s diversity. Developmental 

offerings were expanded to include attorney details within the FLRA. 

Data Source: FLRA Human Resources Division

Target: Met.

VERIFICATION AND VALIDATION OF PERFORMANCE DATA

The FLRA CMS is used by each component to track and manage agency caseload. Each 

component enters information on all cases into the CMS and is accountable for quality control of 

all workload data entered into the system. Data verification and validation was performed under 

both the new CMS and the former, soon-to-be retired, system.
37

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The FLRA’s FY 2012 Performance and Accountability Report reflects the correlation between 

the financial and programmatic aspects of the agency’s work. The report bridges these two 

areas, 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, 2012, and how financial resources were expended to achieve performance results. 

For the ninth consecutive year, the FLRA received an unqualified 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 the likelihood that FY 2013 will be a difficult year financially, we are focused on 

identifying solutions to maintain our financial viability, ensure transparency and accountability,

and continue our high levels of mission performance and employee satisfaction and morale. We 

will continue to work with the Administration, the Congress, and agency stakeholders to identify 

and implement solutions for a sustainable funding model. We are confident that the FLRA’s 

financial and performance data are complete, accurate, and reliable.

Carol Waller Pope

Chairman and Chief Financial Officer

November 15, 2012
38

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2012 and 2011

2012 2011

Assets:

Intragovernmental:

Fund balance with the Treasury (Note 2) $4,525,133 $6,532,013

Accounts receivable (Note 3) 1,335 17,021

Advances and prepayments 21,414 11,212

Total intragovernmental 4,547,882 6,560,246

Accounts receivable from the public, net (Note 3) 12,172 5,243

General property and equipment, net (Note 4) 353,163 525,753

Total Assets $4,913,217 $7,091,242

Liabilities:

Intragovernmental:

Accounts payable $40,857 $21,764

Unfunded FECA liability (Note 5) 240,761 239,011

Custodial liability 38 76

Total intragovernmental 281,656 260,851

Accounts payable 184,639 210,917

FECA actuarial liability (Note 5) 1,185,256 1,141,306

Unfunded leave (Note 5) 1,519,345 1,513,590

Accrued payroll and benefits 1,207,777 1,280,740

Other (Note 6) 2 4

Total Liabilities $4,378,675 $4,407,408

Net Position:

Unexpended appropriations – other funds $3,117,955 $5,016,802

Cumulative results of operations – other funds (2,583,413) (2,332,968)

Total Net Position $534,542 $2,683,834

Total Liabilities and Net Position $4,913,217 $7,091,242

The accompanying notes are an integral part of these statements.
39

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2012 and 2011

2012 2011

Gross Program Costs:

Authority:

Intragovernmental costs $4,037,251 $3,869,249

Public costs 10,735,958 11,498,999

Total costs 14,773,209 15,368,248

Intragovernmental earned revenue (1,223) (5,580)

Public earned revenue (3,144) (4,398)

Less: Total earned revenue (4,367) (9,978)

Net Program Costs $14,768,842 $15,358,270

Office of the General Counsel:

Intragovernmental costs $0 $60

Public costs 10,816,099 10,809,060

Total costs 10,816,099 10,809,120

Intragovernmental earned revenue (24,924) (52,461)

Public earned revenue (9,218) (13,924)

Less: Total earned revenue (34,142) (66,385)

Net Program Costs $10,781,957 $10,742,735

Federal Service Impasses Panel:

Intragovernmental costs $0 $0

Public costs 791,422 689,940

Total costs 791,422 689,940

Intragovernmental earned revenue (643) (1,527)

Public earned revenue (548) (797)

Less: Total earned revenue (1,191) (2,324)

Net Program Costs $790,231 $687,616

Net Cost of Operations $26,341,030 $26,788,621

The accompanying notes are an integral part of these statements.
40

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2012 and 2011

2012 2011

Cumulative Results of Operations:

Beginning balance $(2,332,968) $(2,138,396)

Budgetary financing sources:

Appropriations used 24,594,738 24,931,853

Non-exchange revenue (2) (4)

Other financing sources (non-exchange):

Transfers in/out without reimbursement 0 (24,675)

Imputed financing 1,495,849 1,686,875

Total financing sources 26,090,585 26,594,049

Net cost of operations (26,341,030) (26,788,621)

Net change (250,445) (194,572)

Cumulative Results of Operations $(2,583,413) $(2,332,968)

Unexpended Appropriations:

Beginning balance $5,016,802 $6,901,675

Budgetary financing sources:

Appropriations received 24,723,000 24,773,000

Other adjustments (2,027,109) (1,726,020)

Appropriations used (24,594,738) (24,931,853)

Total budgetary financing sources (1,898,847) (1,884,873)

Total Unexpended Appropriations $3,117,955 $5,016,802

Net Position $534,542 $2,683,834

The accompanying notes are an integral part of these statements.
41

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2012 and 2011

2012 2011

Budgetary Resources:

Unobligated balance, brought forward, October 1 $3,253,030 $4,876,678

Recoveries of prior year unpaid obligations 611,555 46,400

Other changes in unobligated balance (2,027,109) (1,726,020)

Unobligated balance from prior year budget authority, net 1,837,476 3,197,058

Appropriation 24,723,000 24,773,000

Spending authority from offsetting collections 46,053 79,330

Total Budgetary Resources $26,606,529 $28,049,388

Status of Budgetary Resources:

Obligations incurred (Note 10) $24,759,055 $24,796,358

Unobligated balance, end of year:

Apportioned 63,518 53,918

Unapportioned 1,783,956 3,199,112

Total obligated balance, end of year 1,847,474 3,253,030

Total Budgetary Resources $26,606,529 $28,049,388

Change in Obligated Balance:

Unpaid obligations, brought forward, October 1 $3,285,463 $3,514,395

Uncollected customer payments from Federal sources, brought forward, 

October 1 (6,559) (8,466)

Obligated balance, start of year (net) 3,278,904 3,505,929

Obligations incurred 24,759,055 24,796,358

Outlays (gross) (24,740,405) (24,978,891)

Change in uncollected customer payments from Federal sources (8,378) 1,908

Recoveries of prior year unpaid obligations (611,555) (46,400)

Obligated balance, end of year:

Unpaid obligations, end of year (gross) 2,692,558 3,285,463

Uncollected customer payments from Federal sources, end of year (14,937) (6,559)

Obligated Balance, End of Year (Net) $2,677,621 $3,278,904

Budget Authority and Outlays, Net:

Budget authority, gross $24,769,053 $24,852,330

Actual offsetting collections (37,675) (81,238)

Change in uncollected customer payments from Federal sources (8,378) 1,908

Budget Authority, Net $24,723,000 $24,773,000

Outlays, gross $24,740,405 $24,978,891

Actual offsetting collections (37,675) (81,238)

Outlays, net 24,702,730 24,897,653

Agency Outlays, Net $24,702,730 $24,897,653

The accompanying notes are an integral part of these statements.
42

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Significant Accounting Policies

(a) Reporting Entity – The FLRA is an independent administrative Federal agency created by 

Title VII of the Civil Service Reform Act of 1978, with a mission to carry out five statutory 

responsibilities: (1) determining the appropriateness of units for labor organization 

representation; (2) resolving complaints of unfair labor practices; (3) adjudicating exceptions 

to arbitrators’ awards; (4) adjudicating legal issues relating to duty to bargain; and (5) 

resolving impasses during negotiations. The agency consists of three components: the 

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

(b) Basis of Accounting and Presentation – The financial statements have been prepared to 

report the financial position, net cost of operations, changes in net position, and budgetary 

resources of the FLRA in accordance with the Chief Financial Officers Act of 1990, the 

Government Management Reform Act of 1994, and the Accountability of Tax Dollars Act of 

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

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

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

Management and Budget (OMB), as prescribed in OMB Circular A-136, Financial 

Reporting Requirements, and pursuant to the requirements of 31 U.S.C. 3515(b). These 

financial statements include all funds and accounts under the control of the FLRA.

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

budgetary accounting transactions. Under the accrual method of accounting, revenues are 

recognized when earned and expenses are recognized when incurred, without regard to the 

receipt or payment of cash. The budgetary accounting principles, on the other hand, are 

designed to recognize the obligation of funds according to legal requirements, which in many 

cases occurs 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 the Treasury – FLRA receipts and disbursements are processed by the 

Department of the Treasury. Fund balances with the Treasury consist of appropriated funds 

that are available to pay current liabilities and to finance authorized purchase commitments. 

No cash is held in commercial bank accounts.

(e) Accounts Receivable – Accounts receivable consists of amounts due from other Federal 

entities and from current and former employees and vendors. Amounts due from the public 
43

are stated net of an allowance for uncollectible accounts that is based on an analysis of 

outstanding receivables balances and past collection experience. No allowance is established 

for intragovernmental receivables, as they are considered fully collectible from other Federal 

agencies.

(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 

FLRA as a result of transactions or events that have already occurred. 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, and there is no 

certainty that the appropriation will be enacted. Also, the Federal government, acting in its 

sovereign capacity, can abrogate liabilities other than contracts. Liabilities that are covered 

by budgetary resources consist of intragovernmental and public accounts payable and 

accrued funded payroll. Liabilities not covered by budgetary resources in FY 2011 and FY 

2012 consist of accrued and actuarial Federal Employees Compensation Act (FECA) 

compensation and unfunded employee leave.

(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 net present value of estimated 
44

future payments calculated by the DOL; and (2) the un-reimbursed cost paid by the DOL for 

compensation to recipients under the FECA.

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-tobenefits paid ratios for the whole FECA program for FY 2012. The ratios may vary from 

year to year as a result of economic assumptions and other factors, but the model calculates a 

liability approximately eleven 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)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon the retirement of that individual. No credit is 

given for sick leave balances upon the retirement of Federal Employees Retirement System

(FERS)-covered employees.

(j) Accounts Payable and Other Accrued Liabilities – Accounts payable and accrued liabilities 

represent a probable future outflow or other sacrifices of resources as a result of past 

transactions or events. Liabilities are recognized when they are incurred, regardless of 

whether they are covered by available budgetary resources. FLRA liabilities cannot be 

liquidated without legislation that provides resources to do so. Certain reclassifications of 

prior-year accounts payable balances have been made in the financial statements to make 

disclosures consistent with those of the current year. 

(k) 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.

(l) Retirement Plans – The FLRA’s employees participate in the CSRS or the FERS. For CSRS 

employees, hired prior to January 1, 1984, the FLRA withholds seven percent of each 

employee’s salary and contributes seven percent of the employee’s basic salary to the CSRS 

Retirement and Disability Fund. These employees may also contribute, on a tax-deferred 

basis, to a defined contribution plan – the Thrift Savings Plan (TSP). In 2011, the regular 

Internal Revenue Service limit was $16,500; the limit was increased to $17,000 in FY 2012. 
45

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 2012, the FLRA matched the retirement 

withholdings with a contribution equal to 11.9 percent of the employee’s taxable salary.

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, is 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.

(m) Imputed Financing from Costs Absorbed by Others – The FASAB’s SFFAS No. 5, 

Accounting for Liabilities of the Federal Government, requires that employer agencies 

recognize the full cost of pension, health, and life insurance benefits during their employees’ 

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

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

Insurance Program, must provide the “cost factors” that adjust the agency contribution rate 

to the full cost for the applicable benefit programs. An imputed financing source and 

corresponding imputed personnel cost is reflected in the Statement of Changes in Net 

Position and the Statement of Net Cost, respectively.

(n) Revenue and Other Financing Sources – The FLRA’s revenues are derived from 

reimbursable agreements (exchange) and a direct, annual appropriation (financing source). 

The FLRA recognizes reimbursable work agreement revenue when earned, i.e., goods have 

been delivered or services that have been rendered. Each reimbursable work agreement 

specifies the dollar value of the agreement and is based on estimated resources needed to 

perform the specified services, whether it is personnel services, including base pay, 

overtime and benefits, or travel and per diem. 

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

Annual appropriations are used, within statutory limits, for salaries and administrative 
46

expenses and for operating and capital expenditures for essential personal property. 

Appropriations are recognized as non-exchange revenues at the time the related program or 

administrative expenses are incurred. Appropriations expended for capitalized property and 

equipment are recognized as expenses when an asset is consumed in operations. The 

FLRA’s annual appropriation for FY 2011 was $24,773,000, which was reduced by $49,546 

pursuant to a 0.2 percent across-the-board rescission included in Public Law 112-10. The

agency’s annual appropriation for FY 2012 was $24,723,000.

(o) Expired Accounts and Cancelled Authority – Unless otherwise specified by law, annual 

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 the 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 but not previously reported. 

At the end of the fifth expired year, the expired account is cancelled and any remaining 

money is returned to the Treasury.

(p) Transactions with Related Parties – In the course of its operations, the FLRA has

relationships and conducts financial transactions with numerous Federal agencies. The most 

prominent of these relationships are with the Treasury, the DOL, the Department of the 

Interior, the Department of Transportation, the Department of Homeland Security, and the 

General Services Administration.

(q) 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.

(r) 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 and liabilities and disclosure of contingent liabilities as of the date of the financial 

statements, as well as the reported amounts of revenues and expenses during the reporting 

period. Actual results could differ from those estimates.

(s) Advances and Prepayments – Advance payments are generally prohibited by law. There 

are some exceptions, such as reimbursable agreements, subscriptions, and payments to 

contractors and employees. Payments made in advance of the receipt of goods and services

are recorded as advances or prepayments at the time of the prepayments and recognized as 

expenses when the related goods and services are received.
47

Note 2: Fund Balance with the 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 the Treasury

As of September 30, 2012 2011

General funds $4,525,095 $6,531,934

Other fund types 38 79

Total $4,525,133 $6,532,013

Status of Fund Balance with the Treasury

As of September 30, 2012 2011

Unobligated balance available $63,518 $53,918

Unobligated balance unavailable 1,783,956 3,199,112

Obligated balance not yet distributed 2,677,621 3,278,904

Non-budgetary fund balance with the Treasury 38 79

Total $4,525,133 $6,532,013

Note 3: Accounts Receivable, Net

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

Federal agencies (intragovernmental) and the public.

Accounts Receivable, Net

As of September 30, 2012 2011

From Federal agencies, net $1,335 $17,021

From the public, net 12,172 5,243

Total $13,507 $22,264
48

Amounts Due from Other Federal Agencies

As of September 30, 2012 2011

Department of Defense $0 $1,123

Department of Homeland Security 1,335 0

Department of Justice 0 407

Environmental Protection Agency 0 1,096

United States Postal Service 0 14,395

Total $1,335 $17,021

Note 4: General Property and Equipment, Net

Category

Service 

Life

Acquisition 

Value

Accumulated 

Depreciation

2012 Net 

Book 

Value

2011 Net 

Book 

Value

Software 3 years $258,957 $(258,957) $0 $0

Computer equipment 5 years 497,616 (429,063) 68,553 98,799

Office equipment 7 years 541,272 (421,974) 119,298 172,652

Office furniture 15 years 526,039 (399,927) 126,112 147,906

Leasehold improvements Life of lease 428,173 (388,973) 39,200 106,396

Total $2,252,057 $(1,898,894) $353,163 $525,753

Note 5: Liabilities Not Covered By Budgetary Resources

Unfunded FECA liabilities consists of workers’ compensation claims payable to the DOL, which 

will be funded in a future period, 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-tobenefit paid ratio for the whole FECA program.

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

year-end, 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.
49

Liabilities Not Covered By Budgetary Resources

For the Years ended September 30, 2012 2011

Intragovernmental – Unfunded FECA liabilities $240,761 $239,011

Federal employee benefits – FECA actuarial liability 1,185,256 1,141,306

Unfunded leave 1,519,345 1,513,590

Total $2,945,362 $2,893,907

Note 6: Other Liabilities

Other liabilities in FY 2011 and FY 2012 include interest payment from a customer agency for 

reimbursable travel. Payment was deposited into the Treasury’s General Fund Interest Account.

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.

Future Minimum Lease Payments

FY Equipment Building Total

2013 $40,194 $1,393,343 $1,433,537

2014 18,700 501,481 520,181

2015 13,527 422,743 436,270

2016 0 316,202 316,202

2017 0 251,398 251,398

Thereafter 0 1,023,983 1,023,983

Total $72,421 $3,909,150 $3,981,571

Note 8: Commitments and Contingencies

The FLRA is 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 

proceedings, actions, and claims will not materially affect financial position or results of 

operations of the FLRA. The agency has examined its obligations related to cancelled FY 2007

authority and believes that it will not have outstanding commitments that will require future 

resources.

Note 9: Intragovernmental Costs and Exchange Revenue

The classification of revenue or cost defined as "intragovernmental" or "with the public" is 

defined 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 
50

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: Direct Versus 

Reimbursable Obligations

Obligations Incurred

For the Years Ended September 30, 2012 2011

Direct obligations – Category A $24,713,002 $24,717,028

Reimbursable obligations – Category A 46,053 79,330

Total $24,759,055 $24,796,358

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, 

2012 and 2011 was $1,259,285 and $1,772,040, respectively.

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 2013

President’s Budget, with actual amounts for FY 2011, has been reconciled to the Statement of 

Budgetary Resources. The FY 2014 President’s Budget, with actual amounts for FY 2012, will 

not be published until February 2013.

Note 13: Reconciliation of Net Cost of Operations to Budget

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

for the fiscal years ended September 30, 2012 and 2011 are shown in the table on the following 

page.
51

Reconciliation of Net Cost of Operations to Budget

For the Years Ended September 30, 2012 2011

Resources Used to Finance Activities:

 Obligations incurred $24,759,055 $24,796,358

 Spending authority from offsetting collections:

 Collected (37,675) (81,238)

 Change in unfilled customer orders (5,821) (647)

 Recoveries of prior year unpaid obligations (611,555) (46,400)

Transfers in/out without reimbursement 0 (24,675)

 Imputed financing sources 1,495,849 1,686,875

Other 0 (4)

Total Resources Used to Finance Activity $25,599,853 $26,330,269

Resources Used That Do Not Fund Net Cost of Operations:

Change in unfilled customer orders $5,821 $647

 Change in undelivered orders 502,552 241,745

Current-year capitalized purchases 0 (29,789)

Components of the Net Cost of Operations Which Do Not 

Generate or Use Resources in the Reporting Period:

 Change in non-Federal receivables 8,757 (9,992)

 Other financing sources not in the budget (1,495,849) (1,686,875)

 Depreciation and amortization 172,591 220,707

 Future funded expenses 7,505 66,632

 Imputed costs 1,495,849 1,686,875

 Other expenses not requiring budgetary resources 43,950 (31,598)

Net Cost of Operations $26,341,029 $26,788,621
52

Chairman Pope: 

We have audited the accompanying balance sheet of the Federal Labor Relations Authority 

(FLRA) as of September 30, 2012 and 2011, and the related statements of net cost and changes 

in net position, and statement of budgetary resources, for the year then ended. In our audits of 

the Federal Labor Relations Authority for the fiscal year September 30, 2012 and 2011, we 

found

● the financial statements are presented fairly, in all material respects, in conformity with 

U.S. generally accepted accounting principles,

● no material weaknesses or significant deficiencies in internal control over financial 

reporting (including safeguarding assets),

● no reportable noncompliance with laws and regulations we tested. 

The following sections discuss in more detail (1) these conclusions, (2) our conclusions on 

Management's Discussion and Analysis (MD&A) and other accompanying information, and (3) 

our audit objectives, scope, and methodology.

Opinion on Financial Statements

In our opinion, the financial statements including the accompanying notes present fairly, in all 

material respects, in conformity with U.S. generally accepted accounting principles, the Federal 

Labor Relations Authority's assets, liabilities, and net position as of September 30, 2012 and 

2011; and net costs; changes in net position; and budgetary resources for the year then ended. 

Consideration of Internal Control 

In planning and performing our audit, we considered the Federal Labor Relations Authority's 

internal control over financial reporting as a basis for designing our auditing procedures and to 

comply with the Office of Management and Budget (OMB) audit guidance for the purpose of 

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

opinion on internal control and compliance or on management’s assertion on internal control

included in MD&A. Accordingly, we do not express an opinion on internal control over 

financial reporting and compliance or on management’s assertion on the effectiveness of the 

entity’s internal control over financial reporting or on management’s assertion on internal control 

included in the MD&A.
53

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraph and would not necessarily identify all deficiencies in 

internal control over financial reporting that might be significant deficiencies or material 

weaknesses. 

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

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

misstatements on a timely basis. A significant deficiency is a control deficiency, or combination 

of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, 

process, or report financial data reliably in accordance with generally accepted accounting 

principles such that there is more than a remote likelihood that a misstatement of the entity's 

financial statements that is more than inconsequential will not be prevented or detected by the 

entity's internal control. 

A material weakness is a significant deficiency, or combination of significant deficiencies, that 

results in more than a remote likelihood that a material misstatement of the financial statements 

will not be prevented or detected by the entity's internal control. 

Our consideration of internal control over financial reporting was for the limited purpose 

described in the first paragraph of this section and would not necessarily disclose all deficiencies 

in the internal control that might be material weaknesses or significant deficiencies. We did not 

identify any deficiencies in internal control over financial reporting that we consider to be 

material weaknesses or significant deficiencies, as defined above. 

We noted other non-reportable matters involving internal control and its operation that we will 

communicate in a separate management letter to FLRA management. 

Compliance With Laws and Regulations 

Our tests of the Federal Labor Relations Authority's compliance with selected provisions of laws 

and regulations for fiscal year 2012 disclosed no instances of noncompliance that would be 

reportable under U.S. generally accepted government auditing standards or OMB audit guidance. 

However, the objective of our audit was not to provide an opinion on overall compliance with 

laws and regulations. Accordingly, we do not express such an opinion. 

Consistency of Other Information

The information in the Management's Discussion and Analysis is not a required part of the 

financial statements, but is supplementary information required by U.S. generally accepted

accounting principles. We have applied certain limited procedures, which consisted principally 

of inquiries of management regarding the methods of measurement and presentation of this 

information. However, we did not audit this information and, accordingly, we express no 

opinion on it.
54

The information in the Chairman's Message, Performance Section, and Other Accompanying 

Information is presented for purposes of additional analysis and is not required as part of the 

financial statements. This information has not been subjected to auditing procedures and, 

accordingly, we express no opinion on it. 

Objectives, Scope, and Methodology 

The Federal Labor Relations Authority's management is responsible for (1) preparing the 

financial statements in conformity with U.S. generally accepted accounting principles, (2) 

establishing, maintaining, and assessing internal control to provide reasonable assurance that the 

broad control objectives of the Federal Managers' Financial Integrity Act are met, and (3) 

complying with applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether the financial statements are 

presented fairly, in all material respects, in conformity with U.S. generally accepted accounting 

principles. We are also responsible for (1) obtaining a sufficient understanding of internal 

control over financial reporting and compliance to plan the audit, (2) testing compliance with 

selected provisions of laws and regulations that have a direct and material effect on the financial 

statements and laws for which OMB audit guidance requires testing, and (3) performing limited 

procedures with respect to certain other information appearing with the Annual Financial 

Statements. 

In order to fulfill these responsibilities, we

● examined, on a test basis, evidence supporting the amounts and disclosures in the 

financial statements;

● assessed the accounting principles used and significant estimates made by management;

● evaluated the overall presentation of the financial statements;

● obtained an understanding of the FLRA and its operations, including its internal control 

related to financial reporting (including safeguarding assets), and compliance with laws 

and regulations (including execution of transactions in accordance with budget authority);

● tested relevant internal controls over financial reporting and compliance, and evaluated 

the design and operating effectiveness of internal control;

● considered the design of the process for evaluating and reporting on internal control and 

financial management systems under the Federal Managers' Financial Integrity Act; and

● tested compliance with selected provisions of laws and regulations.
55

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

the Federal Managers' Financial Integrity Act, such as those controls relevant to preparing 

statistical reports and ensuring efficient operations. We limited our internal control testing to 

controls over financial reporting and compliance. Because of inherent limitations in internal 

control, misstatements due to error or fraud, losses, or noncompliance may nevertheless occur 

and not be detected. We also caution that projecting our evaluation to future periods is subject to 

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

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

testing may not be sufficient for other purposes. 

We did not test compliance with all laws and regulations applicable to the Federal Labor 

Relations Authority. We limited our tests of compliance to selected provisions of laws and 

regulations that have a direct and material effect on the financial statements and those required 

by OMB audit guidance that we deemed applicable to the Federal Labor Relations Authority's 

financial statements for the fiscal year ended September 30, 2012. We caution that 

noncompliance may occur and not be detected by these tests and that such testing may not be

sufficient for other purposes.

We performed our audit in accordance auditing standards generally accepted in the United 

States; the standards applicable to the financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and OMB guidance.

Rockville, Maryland

November 15, 2012
56

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
57

 

MEMORANDUM

DATE: October 12, 2012

TO: Carol Waller Pope

Chairman

Ernest DuBester

Member

FROM: Dana Rooney-Fisher 

Inspector General

SUBJECT: Inspector General Identified Management Challenges

This memorandum transmits the key management and performance challenges facing the Federal 

Labor Relations Authority (FLRA) as identified by the Inspector General (lG).

The FLRA is required to prepare an annual "Performance and Accountability Report" (PAR) 

which must be submitted to the President, the Office of Management and Budget, and to 

appropriate committees and subcommittees of Congress within 45 days of the end of the 

fiscal year (FY). The Reports Consolidation Act of 2000, Public Law 106-531, requires the 

IG to provide the agency head with a statement that summarizes the most serious 

management and performance challenges facing the agency and briefly assesses the agency's 

progress in addressing those challenges. This statement should be included in the PAR.

Accordingly, the attached document describes the most serious management and performance 

challenges facing the FLRA along with a brief assessment of management's progress in 

addressing them. These ongoing challenges include: Human resources shortage; information 

technology security and proper handling of records.

The above challenges were also noted in the agency's FY 2011 PAR. The agency has made 

substantial progress in addressing these challenges as further described in the attachment. 

Further, management has taken sufficient action to effectively address the “succession 

planning” challenge of the IG identified challenges that were contained in the FY 2011 PAR, 

which I no longer consider to be one of the most serious challenges facing management. We 

appreciate management's strong commitment in addressing these challenges.

Attachment

 

 UNITED STATES OF AMERICA

 FEDERAL LABOR RELATIONS AUTHORITY

 WASHINGTON, D.C. 20424-0001
58

Attachment

Challenge: Human Resources shortage

The U.S. Federal Labor Relations Authority (FLRA) is the sole agency responsible for 

establishing policies and guidance regarding the labor-management relations program for 2.1

million non-Postal, Federal employees worldwide, approximately 1.2 million of whom are 

represented in 2,200 bargaining units. Although the FLRA is a small agency, accomplishing its 

mission, including the timely, quality resolution of disputes, is essential for program 

performance Government-wide. If a labor-management dispute in another agency remains 

unresolved for too long, the mission accomplishment in that agency likely will suffer. The 

Federal Government currently faces significant financial challenges today, especially when 

considering the potential impacts of sequestration which will presently become effective in early 

2013 unless intervening legislation is enacted. This fiscal environment may likely require major 

changes and presents challenges that will have a significant impact on the Federal workforce as 

well as the effectiveness and efficiency of agency operations. In addition, President Obama 

called for the reorganization of Federal agencies – described as the most aggressive 

reorganization of the Federal Government in at least half a century. For example, in January 

2012 the President sought authority to reorganize Federal trade and business-related functions 

within the U.S. Department of Commerce and other organizations. The FLRA’s services will be 

critical in facilitating orderly, efficient and effective changes such as these within the Federal 

Government since these changes will inevitably generate representation cases, and collectivebargaining may be necessary for the implementation of the changes. In addressing workforce 

disputes that may result, the FLRA has a direct bearing on how well and quickly any 

improvement in Government operations can be effectuated, therefore FLRA is an essential 

component to bringing about real change within the Federal Government.

In the event of a large increase in the agency’s core workload (i.e., an increase in the total filings 

received by the FLRA for review and disposition) as a result of the Government-wide forces and 

potential changes described above, the FLRA’s current workforce would face significant 

challenges. Over the last 12 years the FLRA’s staffing levels have declined, and the agency has 

effectively managed its caseload through a variety of strategies. While case filings have also 

declined over that period of time, the agency has recently experienced increases in filings in two 

of its three components. The FLRA professional staff responsible for managing and resolving 

complex legal matters (e.g., filings) are generally attorneys with years of relevant experience. 

These professional positions require extensive education and specialized knowledge and 

experience, and the work performed by such staff cannot be easily shifted to other staffs whom 

lack the education and training. Accordingly, the FLRA is presently faced with the challenge of 

positioning itself for a significant influx of mission critical workload, but at the same time, has 

limited or no ability to hire additional staff above current levels. This scenario presents a 

challenge that the agency’s performance (in terms of timeliness of processing cases) could be 

negatively impacted without sufficient FTE, if the situation described above results in a 

significantly increased workload.
59

Office of the Inspector General

Federal Labor Relations Authority

Top Management and Performance Challenges

Progress made:

The FLRA management has proactively tried to address this challenge by taking actions within 

their control. For example, over the years management has tried to streamline processes 

whenever practical, and has tried to reallocate resources for human resources and away from 

discretionary spending on items such as travel and training. However, these actions alone cannot 

fully mitigate the challenge.

Challenge: Security as well as information technology security

While technological advances enable increases in efficiency, they also can pose additional 

vulnerabilities and threats to agency operations. The agency must remain vigilant in establishing 

a control environment that incorporates monitoring potential Information Technology risks, 

threats and vulnerabilities and in mitigating them. The agency has undertaken annual reviews of 

the agency’s information security program as required by the Federal Information Security 

Management Act (FISMA). The FISMA requires the FLRA to prepare a report which 

summarizes the findings of such reviews and submit it to the Office of Management and Budget. 

The report is considered non-public. The most recent report contains certain findings from prior 

years that remain open.

Progress made:

Management has demonstrated that the FLRA is serious about ensuring they have a robust 

information security program. This is evidenced in that as of the date of this memo, no new 

findings were identified in connection with the latest FISMA evaluation. In addition, 

management’s actions have successfully addressed the majority of finds contained in reports 

from prior years. Management is actively engaged in addressing the remaining open items.

Challenge: Proper handling of records (hard copy and electronic)

It is essential to have adequately documented policies, procedures and processes that address the

proper handling of all hard copy and electronic records. 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. In addition, management should periodically 

verify that such polices are being followed. For example, one area that continues to present a 

serious management challenge is the implementation of a case management infrastructure. In 

particular, policies, processes and procedures that provides FLRA staff with clear guidance for 

handling records needs to be developed and documented.
60

Office of the Inspector General

Federal Labor Relations Authority

Top Management and Performance Challenges

Progress made:

The FLRA has automated many of its systems including accounting, procurement, and the time 

and attendance systems. These automated systems incorporate internal controls and workflow 

paths that enhance the agency’s ability to handle the records included in these systems and better 

enable compliance with agency policy and procedures. However, significant progress still needs 

to be made towards developing a case management infrastructure that supports electronic files, 

which will help further agency efforts to properly handle agency case file records. This issue 

was also noted in my memo dated October 14, 2011.
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MANAGEMENT’S RESPONSE

Since FY 2009, the FLRA has engaged in a thorough review of agency programs and 

performance. Efforts have been focused on budget-related matters and the development of 

management initiatives to improve the FLRA’s performance of its statutory mission. In addition 

to program performance, the review has included information technology (IT) investments, 

human resources (HR), case processing, and financial management. As a result, in recent years, 

the FLRA has made substantial progress in addressing and resolving deficiencies and challenges 

identified by the Inspector General.

It is useful each year to take stock of the progress achieved toward eliminating deficiencies and 

challenges. Many of the Inspector General’s prior-year challenges have been addressed and 

resolved. The remaining challenges identified by the Inspector General include human resources 

shortage, IT security, and proper handling of records.

With respect to these ongoing challenges, management has made, and continues to make, 

progress towards their resolution, and will continue to address them with the input of agency 

leadership, management, and employees and their representative union. With respect to human 

resources matters, the FLRA will continue its efforts to reallocate and leverage resources to 

maximize organizational performance and address those areas where limited resources adversely 

affected agency operations. As for IT security, the agency remains vigilant in maintaining a 

control environment that monitors and mitigates risks, threats, and vulnerabilities, and is 

committed to establishing and maintaining a program that is fully Federal Information Security

Management Act compliant. There are specific agency plans of action in place to ensure such 

compliance. Finally, the FLRA continues its efforts to ensure proper handling of records, noting 

in particular that the ongoing development of a case management infrastructure that supports 

electronic case filing and files will further advance this effort. In FY 2013, the FLRA will 

develop and implement policies, processes, and procedures that provide staff with clear guidance 

for handling these records.

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 cost-effective. Based on the criteria set forth in Appendix C of 

Office of Management and Budget Circular A-123, the agency has also determined that it would 

not be cost-effective to establish a recovery audit program for its programs that expend more 

than $1 million. Recoveries are not expected to be greater than the costs incurred to identify any 

overpayments.

FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, N.W.

Washington, DC 20424

www.flra.gov