Thirty-eight years – promoting and protecting labormanagement relations for effective, efficient government.

WWW.FLRA.GOV

U.S. FEDERAL LABOR RELATIONS AUTHORITY

PERFORMANCE AND ACCOUNTABILITY REPORT

UNITED STATES

FEDERAL LABOR RELATIONS AUTHORITY

Performance and Accountability Report 

Fiscal Year 2017

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...................................................................................................................15

Financial Analysis..........................................................................................................................30

Management Assurances ...............................................................................................................33

PERFORMANCE GOALS AND RESULTS......................................................34

Goal 1.1.1: Produce Timely Review and Disposition of Unfair-Labor-Practice Cases ...............34

Goal 1.2.1: Resolve Overage Unfair-Labor-Practice Cases in a Timely Fashion ........................37

Goal 1.1.2: Produce Timely Review and Disposition of Representation Cases...........................38

Goal 1.2.2: Resolve Overage Representation Cases in a Timely Fashion....................................39

Goal 1.1.3: Produce Timely Review and Disposition of Arbitration Cases.................................40

Goal 1.2.3: Resolve Overage Arbitration Cases in a Timely Fashion..........................................41

Goal 1.1.4: Produce Timely Review and Disposition of Negotiability Cases..............................41

Goal 1.2.4: Resolve Overage Negotiability Cases in a Timely Fashion...............................42

Goal 1.1.5: Produce Timely Review and Disposition of Bargaining-Impasse Cases...................43

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

the Labor-Management Community.........................................................................44

Goal 2.2.1: Successfully Resolve a Significant Portion of FLRA Cases through ADR...............45

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

Workforce to Accomplish the FLRA’s Mission.......................................................49

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

and Enhance Organizational Operations...................................................................55

Verification and Validation of Performance Data .........................................................................57

PRINCIPAL FINANCIAL STATEMENTS .......................................................58

Message from the Chief Financial Officer.....................................................................................58

Balance Sheet.................................................................................................................................59

Statement of Net Cost ....................................................................................................................60

Statement of Changes in Net Position ...........................................................................................61

Statement of Budgetary Resources................................................................................................62

Notes to the Financial Statements..................................................................................................63

Report of Independent Auditors.....................................................................................................74
OTHER ACCOMPANYING INFORMATION.................................................77

Summary of Financial Statement Audit.........................................................................................77

Summary of Management Assurances...........................................................................................77

Memorandum on Inspector General Identified Management Challenges.....................................78

Management’s Response ...............................................................................................................86

Improper Payments Elimination and Recovery .............................................................................87
MESSAGE FROM THE ACTING CHAIRMAN

I am pleased to submit the FY 2017 Performance and Accountability Report for 

the Federal Labor Relations Authority (FLRA). Overall, FY 2017 was another 

successful and productive year at the FLRA. In this year of presidential 

transition, the agency experienced changes or vacancies in key leadership 

positions, yet continued to achieve mission excellence agency-wide, while also 

improving and streamlining administrative operations to achieve greater 

efficiency and effectiveness. 

The FLRA, in one small agency, serves as investigator, prosecutor, adjudicator, and interest 

arbitrator for labor-management disputes involving 1.2 million Federal employees worldwide. 

The agency is committed to fostering an efficient 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 (the Statute), which it enforces. 

With respect to mission performance, FY 2017 was another strong year for the FLRA. The 

Authority met or exceeded all but one of its strategic and performance goals in FY 2017, while 

transitioning to more ambitious goals of issuing cases in a shorter time frame – reducing the 

target from 180 days to 150 days. The Office of the General Counsel again exceeded all of its 

strategic and performance goals for the timely resolution of both unfair-labor-practice (ULP) 

charges and representation cases. And the Federal Service Impasses Panel also exceeded all of 

its strategic and performance goals. In addition, the FLRA delivered 275 training, outreach, and 

facilitation sessions to over 8,000 customers regarding rights and responsibilities under the 

Statute. Educating the agency’s customers is an important strategic initiative that can reduce 

and, in some instances, eliminate the time and expense of unnecessary litigation. 

Consistent with the FLRA’s 2015 - 2018 Strategic Plan, alternative-dispute-resolution (ADR) 

activities throughout the agency also continued to be extremely successful. ADR is deeply 

embedded in the way that all cases are processed throughout the agency. Indeed, in the OGC, 

the sheer volume of ULP charges filed (over 3,600 in FY 2017) would overwhelm that 

component without the voluntary settlement of so many by the highly regarded employees in the 

Regional Offices where they are processed – 95 percent of the ULP cases and 95 percent of the 

representation cases in which the parties agree to use ADR settled as a result. In the Authority 

component, additional ADR is available in every ULP complaint filed with the Office of 

Administrative Law Judges (OALJ), as well as in every negotiability case and every arbitration 

case before the Authority. 

As to administrative matters, consistent with Executive Order 13781 and OMB M-17-22, the 

FLRA developed a draft Agency Reform Plan and undertook a number of administrative reviews 

and initiatives in order to create administrative efficiencies, maximize employee performance, 

and effectively manage its resources to achieve organizational excellence. For example, the 

agency continued to make steady and meaningful progress towards achieving its long-term goal 

of implementing end-to-end electronic case files throughout the FLRA by creating a more user 

friendly eFiling application and implementing a Document Management System in FY 2017. 
2

The FLRA also engaged in a thorough, in-depth review of every electronic personnel file, in 

order to ensure the accuracy of retirement coverage, service computation dates, and missing or 

undocumented prior service. It also conducted an agency-wide review of every agency position 

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

are accurate. These efforts have been critical in conducting “need-to-fill” evaluations. 

In FY 2017, the agency also continued to develop capacity for shared administrative staff across 

several offices by utilizing administrative staff in creative ways across different offices. 

I am also pleased to share that, with respect to employee engagement, for the third consecutive 

year, the FLRA was recognized as a Top Five small agency in the 2016 Best Places to Work in 

the Federal Government rankings (released in December 2016), with an index score over 20 

points higher than the Government-wide average of 59.4. The FLRA also received a #1 ranking 

in 7 of 10 categories. In addition, in the 2017 Federal Employee Viewpoint Survey (FEVS), the 

FLRA continued to receive overall positive ratings. It outperformed the Government-wide 

average in 70 out of 71 questions; had 55 identified strengths and no identified challenges; and 

increased its positive ratings for 15 questions, compared to FY 2016. In addition, the FLRA 

continued to rank in the top ten among small agencies in both the Employee Engagement and 

New IQ Indices – with #6 and #5 rankings, respectively. With an Employee Engagement Index 

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

Government-wide average for each index, as well as for every sub-category of each index. In 

addition, the FLRA’s Global Satisfaction index score of 72 percent – well above the 

Government-wide average of 64 percent – is a positive indicator of employees’ overall 

workplace satisfaction. 

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

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

on page 74 of this report. I have also made every effort to verify the accuracy and completeness 

of the performance data presented in this report. 

Patrick Pizzella

Acting Chairman

Federal Labor Relations Authority

November 15, 2017
3

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND AND MISSION

The U.S. Federal Labor Relations Authority (FLRA) is 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 genesis 

dates from the issuance of Executive Order 10988 by President Kennedy in 1962. In 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 the 

Congress to create the FLRA as an independent agency.

The Statute protects management’s rights, employees’ rights, and union rights. For example, the 

Statute protects the authority of agency management to determine, among other things, the 

agency’s mission, budget, organization, number of employees, and internal security practices. It 

also 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. It is the role of the 

FLRA to provide leadership in establishing policies, guidance, and case law relating to all of 

these statutory rights and responsibilities. 

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

the timely resolution and 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 timely, quality, and impartial resolution of labormanagement disputes – is essential for program performance Government-wide. 

ORGANIZATIONAL STRUCTURE

The FLRA is organized into three statutory components – the Authority, the Office of the 

General Counsel (OGC), and the Federal Service Impasses Panel (FSIP) – each with unique 

adjudicative or prosecutorial roles. The agency also provides full program and staff support to 

two other organizations – the Foreign Service Labor Relations Board and the Foreign Service 

Impasse Disputes Panel.
4

The Authority

The Authority comprises three full-time, presidentially nominated and Senate-confirmed 

Members who are appointed for fixed, five-year, staggered terms. The President designates one 

Member to serve as Chairman. The Chairman acts as the agency’s chief executive and 

administrative officer. 

The Authority is responsible for adjudicating unfair labor practice (ULP) complaints, 

determining whether to grant exceptions to arbitrators’ awards, resolving disputes over the 

negotiability of proposals and provisions made during collective bargaining, and reviewing 

decisions of Regional Directors in representation disputes over union elections and unit 

determinations.

Other program offices under the jurisdiction of the Authority include the Office of the Solicitor, 

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

(CIP), and the Collaboration and Alternative Dispute Resolution Office (CADRO). 

The Office of the Solicitor represents the FLRA in court proceedings before all U.S. courts, 

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

In this connection, parties aggrieved by certain Authority orders may institute an action for 
5

judicial review within 60 days after the order 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 agency’s in-house counsel, 

providing legal advice to all FLRA components, and performs various functions under the 

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

Agency Ethics Official.

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

recommended decisions in cases involving ULP complaints, as well as decisions involving 

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

Act. The OALJ – through its Settlement Judge Program administered by the CADRO – also 

provides ADR services in all ULP cases. Recommended decisions of the ALJs may be appealed 

to the Authority.

The Office of the General Counsel

The General Counsel, who is appointed by the President with the advice and consent of the 

Senate, has separate and independent responsibilities from the Authority. Under the Statute, the 

General Counsel has sole responsibility – independent of the Authority – over the investigation 

and prosecution of ULP cases. The General Counsel’s determinations in these matters are final 

and unreviewable. The General Counsel has direct authority over, and responsibility for, all 

employees in the OGC, including those in the FLRA’s Regional Offices. Approximately 

50 percent of the entire FLRA staff is employed in the regions, where all ULP charges and 

representation petitions are filed and investigated. The Regional Offices, on behalf of the 

General Counsel, investigate and resolve alleged ULPs, file and prosecute ULP complaints, 

effectuate compliance with settlement agreements and Authority Orders, and provide training 

and ADR services. In addition, through delegation by the Authority, the Regional Offices 

investigate and resolve representation cases and conduct secret-ballot elections. 

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

Headquarters management provides administrative oversight; develops policies, guidance, 

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

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

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

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

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

implement policy and strategic initiatives to accomplish the FLRA mission. 
6

The Federal Service Impasses Panel

The FSIP 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 FSIP comprises seven 

part-time Presidential appointees – a Chairman and six other Members – who are appointed to 

fixed, five-year, staggered 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 FSIP may determine to assert jurisdiction 

over the request. If the FSIP asserts jurisdiction, then it has the authority to recommend or direct 

the use of various ADR procedures, including informal conferences, additional mediation, factfinding, written submissions, and mediation-arbitration by FSIP Members, the FSIP’s staff, or 

private arbitrators. If the parties are still 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. Parties may not appeal the merits of the FSIP’s decision to 

any court.

STRATEGIC AND PERFORMANCE-PLANNING FRAMEWORK

The FLRA has established strategies and goals that are designed to maximize the delivery of 

agency services throughout the Federal Government through a comprehensive review – by 

leadership at all levels throughout the agency – of its operations, staffing, work processes, 

resource allocations, and performance. Throughout FY 2017, the FLRA has engaged in a 

continuous assessment of performance and other data to ensure that it is accomplishing its 

mission, effectively and efficiently, and that it is promoting innovation throughout the agency. 
7

The FLRA’s FY 2017 performance-planning framework is based on the agency’s FY 2015 -

2018 Strategic Plan, and it is supported by the agency’s Annual Performance Plan, which 

establishes the agency’s annual performance goals and measures. The Annual Performance Plan 

reflects the agency’s commitment to establishing meaningful metrics that will assist in assessing 

performance outcomes, aligning resources, and effectively identifying staffing and training 

needs. The Annual Performance Plan also demonstrates the FLRA’s ongoing commitment to 

organizational excellence. 

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

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

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

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

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

agency-wide review is conducted on a monthly basis with distribution of the Monthly Analysis 

of Performance and Status (MAPS) Report, which contains statistical case and performance data 

derived from the FLRA’s Case Management System (CMS) and agency management. The 

agency examines the data contained in the MAPS Report in a variety of forums, and – consistent 

with the agency’s value of transparency and employee engagement around all agency matters, 

including process and performance improvements – it shares the agency’s status toward meeting 

its case-processing performance goals with all employees on a monthly basis. At the component 

and office levels, there are also daily performance assessments using a variety of reports, 

including: case-filing reports, which track the number and age of cases; case-status reports, 

which track the status of all assigned pending cases within the Authority, the OGC, and the FSIP; 

and monthly disposition reports, which track the number, age, and resolution type of every 

closed case within the Authority and the OGC. 

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

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

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

locations; and reallocation of resources, including use of details and contract support. 
8

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

impartial review and disposition of cases. The agency supplements these efforts with a focus on 

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

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

supporting these efforts is the FLRA’s focus on more effective and efficient use of human capital

and internal improvements in information technology (IT). 
9

FY 2017 Performance Goals 

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

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

1.1.2: Produce timely review and disposition of representation cases.

1.2.2: Resolve overage representation cases in a timely fashion.

1.1.3: Produce timely review and disposition of arbitration cases.

1.2.3: Resolve overage arbitration cases in a timely fashion.

1.1.4: Produce timely review and disposition of negotiability cases.

1.2.4: Resolve overage negotiability cases in a timely fashion.

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

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

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

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

accomplish the FLRA’s mission. 

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

enhance organizational operations. 

2015-2018 Strategic Plan

In FY 2015, the FLRA engaged in a comprehensive strategic-planning initiative to develop and 

implement a 2015-2018 Strategic Plan. Through a collaborative review by agency leadership 

and employees – at all levels and throughout the agency – of its operations, staffing, work 

processes, resource allocations, and performance, the FLRA established strategies and goals that 

are designed to maximize the delivery of agency services throughout the federal government. 

The FLRA focused a great deal of dedicated effort into the entire strategic-planning endeavor. It 

was an important opportunity for everyone – senior leaders, the employees’ representative 

organization, and staff throughout the agency – to shape a shared vision for the future of the 

FLRA. The draft plan was developed through one-on-one interviews and focus groups with 

FLRA leadership, staff, and external stakeholders. Agency employees worked collectively to 

establish shared goals, objectives, and strategies, as well as the supporting performance goals 

that will help the agency to accomplish its mission and drive improvements in daily operations. 

The process was highly participatory, and it served as an opportunity for leadership, staff, and 

external stakeholders to share ideas about the FLRA’s strategy. Everyone was asked for their 

best thinking and creativity – no ideas were off the table. This was a transparent effort, and there 

was continuous communication with agency employees – at all levels throughout the agency –

for the duration of the project. 

In addition, the FLRA identified performance goals that will allow the agency to both monitor 

progress towards achieving its strategic goals and to recalibrate strategies, as necessary, for 

maximum mission performance. This continues the FLRA’s increasing focus on targeted data 

collection and data-driven leadership and decision-making. In developing this strategic plan, the 
10

FLRA referenced evidence-based performance and resource trends, and it intends to use data 

collected to measure progress against this strategic plan and overall mission performance and 

effectiveness. 

Timeliness and Quality

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

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

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

employee performance and Government operations. Timely resolution – or avoidance – of FLRA 

cases is critical to this endeavor. And effective case resolution includes not only timeliness, but 

also: effective process execution; clear communication with the parties around case processes; and 

the issuance of well-written and understandable decisions that provide deliberate, impartial, and 

legally sound analyses and consideration of the issues in dispute.

The agency facilitates improvements in performance, Government-wide, that have inevitable 

effects on employee working conditions and that implicate the bargaining rights of the more than 

1.2 million employees represented by labor organizations. Unless management and labor can 

collaboratively resolve their disputes and avoid litigation or – failing that – have their 

disagreements adjudicated expeditiously by the FLRA, 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 budgetary and policy challenges that they are 

facing.

Alternative Dispute Resolution and Education

Throughout the years, the Authority, the OGC, and the FSIP have not only recognized the many 

benefits associated with using ADR to resolve workplace disputes, but they have also integrated 

ADR techniques into all aspects of case processing. Put simply, offering ADR services in every 

case results in faster, more effective outcomes for the parties and the FLRA. For this reason, the 

agency continues to leverage existing staff and resources to increase its ADR reach. This includes 

partnering with other agencies and entities – such as the Federal Mediation and Conciliation 

Service (FMCS), the Federal Executive Boards, and the General Services Administration (GSA) –

to train large numbers of practitioners.

In addition, the FLRA’s training initiatives are intended to make case processing more effective 

and efficient, and to better serve the FLRA’s customers by providing meaningful and clear 

guidance on statutory rights and responsibilities. Timely and efficient case processing is furthered 

by FLRA customers being knowledgeable about their rights and obligations under the Statute, as 

well as FLRA case law, regulations, and case-processing procedures. The FLRA delivers its 

educational materials through a variety of means, such as: in-person training sessions; 

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

guides that are easily accessible on www.FLRA.gov. All of these materials have been developed 

to assist members of the Federal labor-management-relations community with issues and cases 

arising under the Statute. Using collaboration and ADR techniques – alone or in conjunction with 

other training, outreach, and facilitation services – to assist parties in minimizing or resolving 
11

labor-management disputes significantly reduces the need for litigation and its attendant costs, and 

it gets the parties back to work accomplishing their missions and delivering effective and efficient 

Government services.

Information Technology (IT)

Consistent with the FLRA’s Strategic Plan, IT and automation of agency processes continue to 

be key areas of focus for the agency. Both are fundamental for ensuring the cost effectiveness 

and efficiency of the FLRA, as measured by the agency’s ability to meet its annual performance 

goals. The agency continues to improve its overall effectiveness and efficiency, as well as the 

customer-service experience, by engaging in new and innovative ways to conduct business, such 

as through electronic case filing (eFiling). In addition, the agency has placed significant 

emphasis on IT modernization to ensure that its IT equipment and infrastructure enable it to 

maximize gains in efficiency that can be achieved through use of technology.

In FY 2017, the FLRA also continued to work towards its long-term goal of implementing endto-end electronic case files throughout the FLRA and complying with the OMB-mandated target 

of having fully electronic files by 2019. Increasing eFiling is critical to achieving this goal. In 

this regard, the more case-related information that the FLRA receives electronically – rather than 

in hard copy – from the outset, the easier it is to convert that information into an electronic case 

file, without the need for FLRA staff to manually scan documents. In recognition of this, the 

agency continues to execute the multi-year, four-phase plan that it initially developed and 

launched in FY 2015 to accomplish the transition to fully electronic case files. 

Phase 1 was completion of the initial implementation of an eFiling System – eFiling 1.0 – for all 

FLRA offices that accept case filings, and the refinement and improvement of that system –

based on user experience and feedback – through implementation of eFiling 2.0 and 3.0 with a 

more user-friendly interface. The agency will implement eFiling 3.0, which is currently being 

tested, no later than the first quarter of FY 2018. Phase 2 is to provide a similar, more 

user-friendly and intuitive interface for the agency’s internal electronic Case Management 

System. Phase 2 also includes implementation of an agency-wide Document Management 

System – an electronic, cloud-based “filing cabinet” that provides a framework for organizing 

digital and paper documents. The latter has already been completed, and the former should be 

implemented by the end of FY 2018. The Document Management System replaces all existing 

network drives and folders, and it allows for quick access to any document, file, or email through 

use of sophisticated search engines. It also provides the necessary storage capacity and 

technological platform for the eventual integration of all electronic case-processing systems so 

that the agency can realize its vision of having fully electronic case files. Phase 3 is the 

integration of the automated connection between the Case Management System, the eFiling 

System, and the Document Management System. This is currently underway, and project 

planning has begun. Phase 3 is scheduled to be completed by the 2nd quarter of FY 2019. And 

Phase 4 is the transition to 100 percent electronic case files throughout the agency, with a goal of 

September 30, 2019, for completion. 

Implementation of fully electronic case files throughout the agency will allow the FLRA to 

operate more efficiently and more effectively by: allowing for implementation of additional 

external and internal case-processing improvements that will further maximize the use of 
12

technology; eliminating many of the labor-intensive, manual case processes that are currently in 

place; and increasing overall efficiency and effectiveness. These case-processing improvements 

include: electronic voting by the Authority Members, which the agency already implemented in 

FY 2017; reduction of U.S. Mail costs by implementing electronic service of case-related 

documents by the FLRA on the parties; reduction – or elimination – of Fed Ex costs for 

transferring paper case files between FLRA offices; implementation of a pilot program that 

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

mandate of eFiling for all FLRA case filings. The greatest benefit will be that staff hours 

currently used to perform manual administrative tasks will be freed up to perform other missioncritical functions – or eliminated, if warranted. 

In addition, the FLRA will continue making improvements through smaller-scale projects. For 

example, the agency plans to transition to a cloud email solution in FY 2018. This is another 

long-term, “cloud-first” strategy that the agency has been working towards to move all of its 

critical system to the cloud. Once email has been transitioned, all agency critical systems – Case 

Management, eFiling, Document Management, and email – will all be in the cloud, offering 

better redundancy and backups that can be leveraged to improve the overall agency Continuity of 

Operations Plan (COOP). The agency also continues to leverage the Video Teleconferencing 

(VTC) System that it implemented in FY 2015 to save reduce travel expenditures and offer 

alternative methods for achieving agency-wide training, outreach, and intervention goals. In FY 

2017, the agency also completed its transition to business cable in all 6 of its Regional Office 

outside of Washington, D.C. In addition to increasing network connections for the FLRA’s 

Regional Offices by 50 to 80 percent, the agency was also able to reinvest the 5 to 10 percent 

annual savings in network services that it achieved to provide a back-up, secondary system for 

the Regional Office networks. All of these initiatives are key components in the agency’s efforts 

to achieve efficiencies through use of innovative technology. 

Human Capital

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

Viewpoint Survey (FEVS), leaving no doubt that the FLRA’s investments in the recruitment, 

retention, and skills and leadership development of its employees continues to produce a highly 

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

2017 survey reflect that the FLRA has 55 identified strengths (items with 65 percent or higher 

positive ratings) and no identified challenges (items with 35 percent or higher negative ratings). 

Compared to 2016, the FLRA increased its positive ratings for 15 questions, experienced no 

change in its positive ratings for 4 questions, and decreased its positive ratings for 52 questions. 

The agency outperformed the Government-wide average in 70 out of 71 questions. And the 

FLRA continues to rank in the top ten among small agencies (those with 100-999 employees) in 

two important indices – Employee Engagement and New IQ – with #6 and #5 rankings, 

respectively. With an Employee Engagement Index score of 77 percent and a New IQ Index 

score of 71 percent, the FLRA exceeds the Government-wide average for each index, as well as 

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

72 percent – well above the Government-wide average of 64 percent – is a positive indicator of 

employees’ overall workplace satisfaction. 
13

As to the agency’s 55 identified strengths, of particular note is that: 99 percent of FLRA 

respondents indicate that they are willing to put in extra effort to get a job done; 98 percent

positively rate the overall quality of work done by their work unit; 97 percent report that they are 

held accountable for achieving results; 95 percent know how their work relates to the agency’s 

goals and priorities; and 92 percent say that they are constantly looking for ways to do their jobs 

better. These results show that employees understand the FLRA’s mission, understand their role 

in achieving it, and see themselves as an integral part of achieving agency-wide success. 

In addition to its top-ten rankings in the Employee Engagement and New IQ Indexes and 

increased ratings in 15 questions, FLRA employees also identified areas for improvement. 

These areas include opportunities for advancement, meaningful recognition of differences in 

performance, encouragement of creativity and innovation, availability of resources to get their 

jobs done, and communication from management about what’s going on in the agency. 

As employees indicated – with 62 percent responding that they believe the survey will be used to 

make the FLRA a better place to work – the ultimate goal of the FEVS is to provide agencies 

with information to leverage strengths and improve areas of challenge. The FLRA looks forward 

to examining its results and using them to make the FLRA a workplace that enables the effective 

and efficient performance of the agency’s mission and the delivery of high-quality services to the 

American public.

Consistent with Government-wide diversity and inclusion initiatives, the FLRA uses the FEVS 

to develop and implement a data-driven, forward-looking human-capital-management strategy. 

Focusing on key drivers of employee engagement, the FLRA has developed strategies, including 

the New IQ, for employees to build and cultivate key skills that lead to greater individual and 

organizational performance and job satisfaction. In this connection, in FY 2017, the FLRA 

continued to invest in its employees through classroom training, rotational details, 

cross-component learning, challenging assignments, and leadership-development trainings and 

opportunities to enhance and broaden employees’ skills. Employees at all levels – professional 

and administrative-support staff, managerial and non-managerial – delivered positive agency 

outcomes and led numerous mission-related initiatives, including: the ongoing development and 

enhancement of the FLRA’s eFiling System; the refinement of the FLRA website, including 

enhancements to the training-registration tool; the streamlining of internal case-processing 

procedures; and the development and regular updating of Authority and OGC training materials, 

guides, and manuals – many of which are web-based – to educate the FLRA’s customers about 

the Statute, applicable legal standards and FLRA precedent, and the agency’s case-processing 

procedures.

Consistent with Executive Order 13781 and OMB M-17-22, which, among other things, provides 

agencies with guidance on developing reform plans that “align[] . . . the Federal budget and 

performance planning processes,” in FY 2017 the FLRA adjusted its annual performance year to 

align with the fiscal year. This alignment directly links every employee’s individual 

performance to the FLRA’s overall strategic and performance goals, as well as to the agency’s 

annual budget and funding requests. It will provide a more accurate measurement of each 

employee’s contribution towards achievement of agency-wide performance goals, greater 

accountability, and better data regarding resource needs. 
14

The FLRA also engaged in an in-depth review of its personnel files. In this connection, it 

undertook a thorough review of every Electronic Official Personnel Folder (eOPF) to: ensure 

proper retirement coverage (CSRS or FERS); verify the accuracy of service computation dates 

for both leave and retirement purposes; and examine all folders for missing or undocumented 

prior service. It also conducted an agency-wide review of every agency position description 

(PD) to ensure that all PDs reflect actual duties and that accompanying cover sheets are accurate. 

This has been critical in conducting “need-to-fill” evaluations. 

In FY 2017, the agency also continued to develop capacity for shared administrative staff across 

several offices by utilizing administrative staff within the Authority Component – particularly 

those who are in “confidential” positions to agency leadership – to provide administrative 

assistance to the HR, Budget & Finance, and Equal Employment Opportunity (EEO) Offices, 

which perform sensitive work. Not only does this provide administrative staff with a 

developmental opportunity, but it also allows for greater flexibility, relieves high-graded 

managerial staff from having to perform lower-graded administrative tasks, and avoids the need 

to hire additional FTEs when workloads increase within the component. And, again in FY 2017, 

internal developmental details have accomplished two strategic objectives: (1) development of 

future leaders to facilitate succession planning; and (2) cross-training to allow for the 

reassignment of employees to positions that are more closely matched to their career interests –

and to the agency’s needs.

In order to further fulfill the FLRA’s mission, the agency focuses on succession planning by 

identifying its future human-resources needs, potential organizational and skills gaps, and 

vulnerabilities, and then setting goals to address them. With respect to succession planning, in 

FY 2017, the FLRA continued a training initiative designed to assist senior, high-potential 

employees identify and strengthen critical leadership skills in preparation for eventually 

transitioning to formal leadership positions. To strengthen and support the FLRA’s new cadre of 

first-time managers and supervisors, the agency identified a series of trainings geared towards 

developing strategic thinking and other critical skills in preparation for effective leadership at the 

FLRA. And the FLRA continued to develop and provide high-level, mission-based training for 

its attorneys – nearly 20 percent of whom are new to the FLRA – that built upon their existing 

legal, technical, and ADR skills to improve and maximize performance. These training 

initiatives crossed components, bringing together future agency leaders from all offices to 

enhance their skills and encourage ongoing collaboration among peers. 

The FLRA continued to engage its workforce around improving work processes, resulting in the 

FLRA’s continual climb in its “Innovation” rankings. The innovation category measures 

employee perceptions of efforts to improve the way work is done, including their own personal 

motivation to promote change, and the support and rewards that they receive for promoting new 

ideas. The FLRA’s commitment to rewarding creativity and provision of forums for employees 

to share and promote learning and coordination between components and offices have clearly 

demonstrated that learning more about the work going on across the agency sparks creativity and 

collaboration. These efforts have produced real results.

For example, during FY 2016, the Authority component successfully empowered employees to 

lead in the development and implementation of a pilot program for the electronic circulation of 
15

Member-office decisions and votes on pending cases. As a result of the pilot, the new process 

was implemented permanently in FY 2017, and the Authority no longer physically circulates 

hard or paper copies of all decisions and votes. Not only did this process improvement result in 

increased efficiencies, it facilitated increased staff telework and awareness of pending issues by 

providing them the opportunity to review all circulating decisions. In addition, it began the 

transition to an increasingly electronic “case-file universe,” in anticipation for the next phase of 

the FLRA’s electronic-case-file initiative. 

The FLRA is committed to fostering a workplace where employees from all backgrounds are 

recruited, retained, and developed for successful performance and career progression. Since 

FY 2014, and continuing throughout FY 2017, the agency achieved greater diversity in its 

workforce by increasing strategic and targeted recruitment and posting job opportunities with

career-planning and placement services, local colleges and universities, and professional 

affinity-group organizations. And the FLRA has consistently used data to help identify and 

eliminate barriers to recruiting and hiring the diverse talent that it needs. In this respect, the 

FLRA’s ongoing focus on increasing ethnic and gender diversity in its Senior Executive Service 

corps yielded small, but meaningful, gains in FY 2016 and FY 2017. The FLRA also continued 

to utilize both Student Pathways and summer-externship programs to accomplish mission-related 

initiatives throughout the agency. Finally, serving as one of three Small Agency Council (SAC) 

representatives on the Diversity and Inclusion in Government Council (DIG), the FLRA is 

participating in Government-wide discussions aimed to create and foster a Federal workforce 

that includes and engages Federal employees and reflects all segments of society. 

PERFORMANCE SUMMARY

The FLRA’s mission is to promote stable, constructive labor-management relations through the 

timely and effective resolution and prevention of labor disputes in a manner that gives full effect 

to the collective-bargaining rights of employees, unions, and agencies. It carries out its mission 

in a manner that meets the special obligations and needs of the Federal Government and is 

consistent with the requirement of an effective and efficient Government. 

Mission – Case Processing & ADR

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

provide its customers with timely and quality adjudication and dispute-resolution services, while 

adapting to fluctuations in the number of case filings that it receives. And it has done so against 

a backdrop of relatively flat funding and staffing levels. In FY 2017, the FLRA met or exceeded 

nearly every mission-related performance goal, as it did in FY 2016. 

These accomplishments are particularly noteworthy because the agency operated with nearly 20 

vacant positions throughout most of FY 2016 and FY 2017. Eighteen of those positions were

career positions, with the majority resting within the Office of the Executive Director. 

Consistent with the Administration’s goal of comprehensive Government reform and workforce 

reshaping, the agency is already well-experienced in “doing more with less,” and it is wellversed in undertaking a thorough evaluation and prioritization of every vacancy that it fills. It is 
16

planning to operate with 128 FTEs in FY 2018 and FY 2019, reflecting a decrease of 

approximately 12 FTEs – or nearly 10 percent of its already small workforce – from FY 2016. 

 

• Authority 

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

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

75 percent of non-representation cases. In FY 2017, the Authority also implemented measures 

for ensuring that the cases not “captured” by those 75 percent targets do not go significantly 

overage. The new measure is to ensure that 95 percent of all cases issue within 365 days.

The Authority’s FY 2016 performance successes placed it in a position to more efficiently and 

expeditiously process all of its cases in FY 2017 – and continuing into FY 2018. 

In FY 2017, the Authority met its new target of 150 days in 79 percent of arbitration cases, 

50 percent of ULP cases, and 75 percent of negotiability cases. And it is meeting its 365-day 

target in 100 percent of all cases. Further, as in previous years, the Authority continued to meet 

the statutory requirement of issuing 100 percent of representation cases within 60 days of an 

application for review from a Regional Director’s determination. 

It is important to note that the Authority has had only two of its three presidentially appointed, 

Senate-confirmed Members since January 2017, and one of the existing Members has been 

nominated for another position within the Administration. Although Member staffs continue to 

prepare draft decisions, when the two current Members are unable to reach consensus on the 

disposition of a case, no decision may issue. Those cases will be held in “abeyance” until the 

new Members of the Authority are confirmed by the Senate and sworn in. Accordingly, the 

Authority will begin FY 2018 with a significant backlog of cases – 60 percent of its current 

inventory – in contrast to the beginning of FY 2017, which the Authority began with no backlog 

and only one “overage” case. That said, a joint Senate confirmation hearing for one of the 

existing Members and for the two Member-Designees was held on November 9, 2017, and all 

three nominees were voted out of Committee on November 9, 2017. 

In FY 2017, the Authority continued to demonstrate its commitment to fulfilling its statutory 

mission of providing guidance to the labor-management-relations community. To that end, the 

Authority continued to review and make regular updates to its Comprehensive Arbitration 

Training and Comprehensive Negotiability Training programs, including instructional slides, 

interactive exercises, and other handouts. Of note, the Authority divided the Negotiability 

Training into two separate full-day sessions – Navigating the Negotiability Process and 

Negotiability In Depth: Management Rights and Beyond – to rave reviews. Moreover, in 

FY 2018, the Authority will continue to update its other educational tools, specifically, its 

comprehensive Guide to Arbitration under the Statute, which provides guidance to arbitrators 

and parties to arbitration cases – the most common case type filed with the Authority.

o Authority – OALJ

The OALJ met or exceeded all of its performance goals in FY 2017. The OALJ encourages 

Federal unions, agencies, and OGC representatives to utilize its Settlement Judge Program, 
17

which has been historically successful in resolving cases without the need for costly litigation 

involving a hearing or written decisions. In FY 2017, the Settlement Judge Program offered 

settlement assistance to 100 percent of the parties involved in ULP cases. And of the cases in 

which the parties accepted settlement assistance, nearly 95 percent were resolved without a 

hearing. This reduced the number of adversarial hearings needed to fewer than 15. Furthermore, 

the OALJ resolved 93 percent of all ULP cases, including those that required an adversarial 

hearing, within 180 days. As a result, Federal agencies and unions received timely resolution of 

their labor disputes, which facilitates and improves employee performance and creates a more 

effective and efficient Federal Government. Further, the OALJ has issued decisions on 

98 percent of ULP cases within 365 days of the complaint being issued. 

o Authority - CADRO

The CADRO Director serves as the Settlement Official for the OALJ. But the primary focus of 

the CADRO program is to assist Federal agencies, and the unions that represent Federal 

employees, in resolving negotiability disputes. Once again in FY 2017, 100 percent of CADRO 

negotiability cases resulted in full or partial resolution of the underlying dispute and closure of 

the pending case – exceeding the goal of 90 percent in that category. CADRO helped parties in 

more than 30 cases resolve more than 200 distinct negotiability questions (proposals or 

provisions). CADRO is also available to parties that elect to use CADRO’s services in 

arbitration cases that have been appealed to the Authority. CADRO was able to achieve full or 

partial resolution in 80 percent of those cases, exceeding its goal of 75 percent.

Almost all of the cases that CADRO resolves would have otherwise required decisions by the 

Authority. But the value of CADRO’s services goes far beyond the staff hours and the taxpayer 

dollars that it saves. The stakeholders in CADRO cases consistently solve difficult problems in 

addition to resolving complex legal disputes. For example, during the past four out of six fiscal 

years, CADRO staff has fully or partially resolved in the range of 35 or more negotiability and 

arbitration cases per year. Although the number is fairly consistent, the mix of cases can 

profoundly differ from year to year. During FY 2017, a union representing thousands of 

public-safety-related employees in a cabinet-level agency presented CADRO with 15 separate 

cases containing 119 negotiability and bargaining-obligation disputes. CADRO staff not only 

helped the parties resolve every individual dispute and complete their underlying collectivebargaining agreements, but also supported the parties at the national level as they constructed 

global solutions to ultimately prevent similar disputes from arising in the future. As a result, the 

parties averted additional costly litigation, implementation delays, and associated adverse impact 

on mission and quality of work life. 

• OGC

The OGC continued delivering strong results in FY 2017. The OGC met its strategic 

performance goals for the timely resolution of ULP and representation cases (resolving over 

73 percent of all ULP cases within 120 days of the filing date and 68 percent of representation 

cases within 120 days of filing) and continued closing cases at increased rates. 
18

In conjunction with the OGC’s emphasis on resolving cases in a timely and high-quality manner, 

the OGC has continued to offer voluntary ADR services to resolve cases. This is particularly 

important as the OGC has the largest case intake among all of the FLRA components (handling 

over three quarters of the FLRA’s total case intake) and is the FLRA component with which the 

parties have the most direct contact. The beneficial effects of voluntary resolutions are obvious, 

and they advance the effective and efficient utilization of Government resources. 

In FY 2017, the OGC resolved over 780 ULP cases by voluntary adjustment during the 

investigative process. In addition, the OGC resolved 100 percent of the ULP cases and over 

98 percent of the representation cases in which the parties agreed to use the OGC’s ADR 

services. These successful voluntary ADR efforts resulted in significant savings of 

Governmental staff and budgetary resources. For example, during FY 2017, the OGC 

successfully employed ADR to resolve several clarification-of-unit petitions involving over 

300 positions. The parties in these cases requested that the OGC provide ADR services with an 

eye toward avoiding the formal hearing process (on-the-record hearing, followed by briefing, and 

issuance of a formal decision with appeal rights). The OGC met with the parties involved in 

these cases and through a combination of educating the parties on the applicable legal standards, 

obtaining information concerning the duties and responsibilities of the positions in dispute and 

facilitating a constructive dialogue and review of the positions at issue, the parties were able to 

consensually resolve all of the positions in dispute. By working cooperatively with the parties in 

these cases, the OGC was able to use ADR to resolve these cases quickly and efficiently sparing 

the parties and the agency the expense and time of the formal adjudication process.

• FSIP

In FY 2017, the FSIP again exceeded all of its timeliness goals for assisting parties in resolving 

their bargaining-impasse disputes. The most common types of impasses involved impact-andimplementation negotiations over changes in agency policies or procedures, as well as 

negotiations over successor collective-bargaining agreements, which arise when the current 

collective-bargaining agreement has expired, or is about to expire. Both types of disputes are 

critical and time-sensitive. Impact-and-implementation-bargaining disputes often involve 

negotiations over agency changes to policy or procedure to improve efficiency in the delivery of 

its mission. Successful and timely resolution of the impasse allows the parties to move forward 

in implementing the proposed change. 

Both the number and types of issues presented in requests for FSIP assistance can vary greatly 

from case to case. But the most common issues that the parties asked the FSIP to assist with in 

FY 2017 involved work schedules, including the establishment and termination of compressed 

and alternative work schedules. Other common issues included negotiations over personnel 

policies and matters, and office-space-related matters: how much work space will be allocated to 

employees; office layout; and equipment. 

The FSIP is free to use whatever methods and procedures it considers appropriate for quickly 

and effectively resolving the dispute. The FSIP most commonly resolved impasse disputes using 

mediation-arbitration proceedings or informal conferences conducted by FSIP 

Members. Mediation-arbitrations and informal conference are processes that allow the assigned 
19

FSIP Member to begin work on the case as a neutral mediator seeking to help the parties reach 

voluntary resolution of their dispute – meeting with parties, conveying proposals and 

counterproposals, suggesting compromises, and otherwise seeking to bridge the gap between the 

parties. But if those mediation efforts are not successful in achieving a voluntary settlement, 

then, in the Mediation-Arbitration procedure, the FSIP Member takes on the mantle of an 

arbitrator, conducting a hearing and issuing a final and binding Arbitration Opinion and Decision 

that resolves the bargaining impasse. In the Informal Conference procedure, if voluntary 

settlement is not achieved, the full FSIP Panel considers the recommendation of the Panel 

member and issues a written decision resolving the outstanding issues.

In cases where the FSIP used Mediation-Arbitration or Informal Conferences to resolve 

Federal-sector impasses, it obtained complete, voluntary settlements over 85 percent of the 

time. As a result of this high percentage of voluntary settlements, in FY 2017, the FSIP 

Members imposed contract terms on the parties in only 7 cases – approximately 7 percent of the 

FSIP’s caseload. The remainder of the FSIP’s cases where the Panel determined to assert 

jurisdiction were voluntarily withdrawn or settled by the parties – achieving the most ideal 

solution while also minimizing the disruption to Government operations and costs to taxpayers.

Mission Accomplishment – Providing Training and Education across the Federal Government

Consistent with its strategic goals, in FY 2017, the FLRA continued to promote stability in the 

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

and reference resources, including the launch of its redesigned website (www.FLRA.gov), 

web-based and in-person trainings, and the release and update of substantive guides and 

manuals. 

With the launch of its redesigned website last year – including improvements to the site’s 

appearance, organizational structure, and revision of all substantive content – the FLRA now 

provides a truly user-friendly, empowering resource for parties to FLRA cases and the broader 

Federal-sector labor-management community. Addressing feedback from both internal and 

external customers that they were often unable to locate the case-related information that they 

were seeking or that it took too many mouse clicks to access, the FLRA developed a more 

intuitive, user-friendly, and accessible organizational structure based on the case types that the 

various program offices within the FLRA process. That is, rather than site visitors having to 

know which office does what and at which particular stage during a case, now they have only to 

search by the case type, and they will find descriptions of each office’s unique functions in that 

context. The new site is fully “integrated”: Every FLRA training opportunity, written guide, or 

manual is now available on one centralized page, rather than on office-specific pages. And there 

is even an online tool that allows customers, for the first time, to register for all FLRA training 

events directly through the website. The organization around case types, rather than individual 

office functions, allows users to navigate to the pages they want to access most – and in fewer 

mouse clicks. Additionally, as part of this initiative, the FLRA made electronically available to 

its customers relevant “archival” and other materials (e.g., decisions of predecessor agencies, 

legislative history of the agency’s implementing Statute, decisions of the Foreign Service Labor 

Relations Board) that had previously been unavailable outside of the FLRA’s physical library 

location. Feedback on the new site is universally positive, and the agency and its customers have
20

reaped – and will continue to reap – dividends from the improvement to the overall customer 

experience for years to come. 

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

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

and neutrals – in all aspects of its case law and processes. In FY 2017, the FLRA, as a whole, 

provided nearly 275 training, outreach, and facilitation sessions to over 8,100 participants. Just 

over the last 5 years, the FLRA has provided nearly 1,400 such sessions to nearly 36,000 

participants worldwide. The Authority, the OGC, and the FSIP provided training at several

nationwide, annual conferences, including the Society of Federal Labor and Employee Relations 

Professionals (SFLERP) symposium and the Federal Dispute Resolution (FDR) conference. 

These sessions included presentations of newly prepared materials of current relevance, as well 

as updated materials for more standard sessions. 

In addition, the Authority delivered its own training programs to approximately 300 Federalsector union representatives, agency representatives, neutrals, and new Authority attorneys in 

FY 2017. This included several, full-day sessions of Comprehensive Arbitration Training and 

Comprehensive Negotiability Training using, as noted above, updated training materials 

(including instructional slides, interactive exercises, and other handouts). In particular, because 

negotiability cases have the highest rate of procedural dismissals of any type of case filed with 

the Authority, the negotiability training is intended to meet the goals of helping the parties 

to: comply with the Authority’s regulatory procedural requirements (thus reducing caseprocessing time); file their cases in a different, appropriate forum when necessary; and use ADR 

to avoid costly litigation. The overwhelmingly positive feedback received from participants in 

these sessions indicates that these trainings produced the desired results and will further the 

above goals in future cases. Moreover, the Authority Members all personally conducted various 

training sessions on arbitration cases and other topics of interest to the Federal-sector labormanagement community, including in conjunction with SFLERP, FDR, the FMCS, and the 

National Academy of Arbitrators.

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

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

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

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

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

In FY 2017, the OGC conducted over 70 training sessions reaching over 3,600 managers and 

employees. The OGC also continued providing the parties with up-to-date and topical webbased resources, including revisions to its Representation Case Law Outline, ULP Case Law 

Outline and Guidance on Meetings, which are the “go-to” resources for the Federal-sector 

labor-management relations community and have elicited much favorable feedback.
21

Employee Engagement

Since 2009, the FLRA has been a leader in creating a culture of operational excellence and 

employee engagement to enable higher mission performance. 

For the third consecutive year, the FLRA was recognized as a Top Five small agency in the 

2016 Best Places to Work in the Federal Government rankings, which were released in 

December 2016. With an overall index score of 80.2, the FLRA ranked #5 among 29 small 

agencies, and its index score was over 20 points higher than the Government-wide average of 

59.4. The rankings also measure employee attitudes regarding 10 workplace categories. The 

FLRA ranked #1 in 7 of 10 categories – Effective Leadership; Strategic Management; 

Teamwork; Work-Life Balance; Support for Diversity; and Performance-Based Rewards and 

Advancement. In addition, the FLRA ranked #1 in the Effective Leadership – Empowerment 

sub-category, and #2 in the Pay category and the Effective Leadership – Empowerment subcategory. The FLRA also continued to make steady progress in the Innovation category, ranking 

#5 in 2016 – up from #6 in 2015 and #8 in 2014.

In FY 2017, the FLRA continued to receive overall positive FEVS scores. As noted above, it 

had 55 identified strengths and no identified challenges; compared to 2016, it increased its 

positive ratings for 15 questions; and it outperformed the Government-wide average in 70 out of 

71 questions. In addition, the FLRA continued to rank in the top ten among small agencies in 

both the Employee Engagement and New IQ Indices – with #6 and #5 rankings, respectively. 

With an Employee Engagement Index score of 77 percent and a New IQ Index score of 

71 percent, the FLRA exceeds the Government-wide average for each index, as well as for every 

sub-category of each index. In addition, the FLRA’s Global Satisfaction index score of 

72 percent – well above the Government-wide average of 64 percent – is a positive indicator of 

employees’ overall workplace satisfaction. 

The FLRA’s dramatic improvement with respect to employee engagement and satisfaction over 

the last eight years reflects the commitment of leadership – at all levels and throughout the 

agency – to manage the agency with transparency and accountability and to engage employees. 

It also demonstrates the commitment and dedication of FLRA employees. Concurrent with the 

agency’s significant increase in employee morale and satisfaction since 2009, there has been a 

0

20

40

60

80

100

2005 2007 2009 2010 2011 2012 2013 2014 2015 2016

Best Places to Work Score
22

marked improvement in the FLRA’s mission performance and the delivery of services to its 

customers. 

 

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

impartial manner.

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

cases.

Measure 1.1: The 

percentage of ULP charges 

resolved by the OGC by 

complaint, withdrawal, 

dismissal, or settlement 

within 120 days of filing of 

the charge.

72% 73% Exceeded

Measure 1.2: The 

percentage of decisions on 

an appeal of a Regional 

Director’s dismissal of a 

ULP charge issued within 

60 days of the date filed, 

and in no case more than 

120 days.

95%/100% 96%/100% Exceeded/ 

Met

Measure 1.3: The 

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 180 

days of the complaint 

being issued.

50% 93% Exceeded

Measure 1.4: The 

percentage of ULP cases 

decided within 150 days of 

assignment to an Authority 

Member.

75% 50% Not Met
23

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

Measure 2.1: The 

percentage of ULP charges 

resolved by the OGC by 

complaint, withdrawal, 

dismissal, or settlement 

within 240 days of filing of 

the charge.

95% 95% Met

Measure 2.2: The 

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 365 

days of the complaint 

being issued.

99% 98% Substantially

Met

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

Measure 1.5: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

120 days of the filing of a 

petition.

70% 68% Substantially 

Met

Measure 1.6: The 

percentage of 

representation cases in 

which the Authority issued 

a decision whether to grant 

review within 60 days of 

the filing of an application 

for review.

100% 100% Met
24

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

Measure 2.3: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

365 days of the filing of a 

petition.

95% 95% Met

Measure 2.4: The 

percentage of 

representation cases in 

which the Authority grants 

review, where the 

Authority will issue a 

decision on review, or 

reach other final resolution 

of the case, within 365 

days of the filing of an 

application for review.

95% 100% Exceeded

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

Measure 1.7: The 

percentage of arbitration 

cases decided within 150

days of assignment to an 

Authority Member.

75% 79% Exceeded

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

Measure 2.5: The 

percentage of arbitration 

cases decided within 365

days of assignment to an 

Authority Member.

95% 100% Exceeded

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

Measure 1.8: The 

percentage of negotiability 

cases decided within 150 

days of assignment to an

Authority Member.

75% 75% Met
25

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

Measure 2.5: The 

percentage of negotiability 

cases decided within 365

days of assignment to an 

Authority Member.

95% 100% Exceeded

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

Measure 1.9: The 

percentage of 

bargaining-impasse cases,

in which jurisdiction is 

declined, closed within 

140 days of the date filed.

80% 93% Exceeded

Measure 1.10: The 

percentage of 

bargaining-impasse cases 

voluntarily settled after 

jurisdiction has been 

asserted within 160 days of 

the date filed.

70% 93% Exceeded

Measure 1.11: The 

percentage of 

bargaining-impasse cases 

resolved through a final 

action closed within 200 

days of the date filed.

70% 77% Exceeded

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

providing leadership and guidance through ADR and Education. 

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

activities within the labor-management community.

Measure 1.1: The number 

of training, outreach, and 

facilitation activities 

conducted.

275 273 Substantially 

Met 

Measure 1.2: The number 

of participants involved in 

training, outreach, and 

facilitation activities.

7,000 8,122 Exceeded
26

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

ADR.

Measure 2.1: The 

percentage of ULP cases in 

the OGC in which ADR 

services are offered.

100% 100% Met

Measure 2.2: The 

percentage of ULP cases in 

the OGC in which an offer 

of ADR services is 

accepted by the parties that 

are partially or totally 

resolved.

95% 100% Exceeded

Measure 2.3: The 

percentage of appropriate 

ULP cases in the OALJ in 

which Settlement-Judge 

services are offered.

90% 100% Exceeded

Measure 2.4: The 

percentage of ULP cases in 

the OALJ in which an 

offer of Settlement-Judge 

services is accepted by the 

parties that are partially or 

totally resolved. 

85% 93% Exceeded

Measure 2.5: The

percentage of 

representation cases in the 

OGC in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved. 

95% 100% Exceeded
27

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

Measure 2.6: The 

percentage of appropriate 

arbitration cases in the 

Authority in which ADR 

services are offered.

100% 100% Met

Measure 2.7: The 

percentage of arbitration 

cases in the Authority in 

which an offer of ADR 

services is accepted by the 

parties that are partially or 

totally resolved.

75% 80% Exceeded

Measure 2.8: The 

percentage of appropriate 

negotiability cases in the 

Authority in which ADR 

services are offered.

100% 100% Met

Measure 2.9: The 

percentage of negotiability 

cases in the Authority in 

which ADR services are 

provided that are partially 

or totally resolved.

90% 100% Exceeded

Measure 2.10: The 

percentage of bargainingimpasse cases in which 

parties’ disputes are totally 

resolved voluntarily.

30% 30% Met
28

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

achieve organizational excellence. 

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

workforce to accomplish the FLRA’s mission. 

Measure 1.1: 

Demonstrate strong 

recruitment and retention 

practices.

Provide staff with 

developmental 

opportunities. Align the 

agency-wide 

Performance Year with 

the Fiscal Year. Review 

all agency electronic 

Official Personnel 

Folders (eOPFs), position 

descriptions (PDs), and 

PD cover sheets for 

accuracy. 

See p. 51 for a detailed 

description. 

See p. 51 for a 

detailed description. Met

Measure 1.2: Maintain 

and grow agency expertise 

through employee 

development.

Provide staff with 

developmental 

opportunities. Managers 

will assess all employees 

on their developmental 

needs and provide at least 

one targeted 

developmental 

opportunity to each staff 

member. Maintain 

sustained growth of 

positive responses to the 

OPM FEVS question 

“supervisors in my work 

unit support employee 

development” (Q. 47). 

See p. 53 for a detailed 

description. 

See p. 53 for a 

detailed description. 

Substantially 

Met
29

Performance Outcome 

Measures

FY 2017

Target

FY 2017

Actual Result

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

streamline and enhance organizational operations.

Measure 2.1: Expand the 

use of eFiling. 

65 percent of cases 

eFiled.

35 percent of cases 

eFiled. Not Met

Measure 2.2: Electronic 

end-to-end case 

processing.

Create a more userfriendly eFiling 

experience. Modernize

infrastructure to allow for 

complete integration of 

the CMS, the eFiling 

system, and the DMS. 

Deploy a cloud-based 

DMS. 

See p. 56 for a detailed 

description. 

See p. 56 for a 

detailed description. Met
30

FINANCIAL ANALYSIS

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

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

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

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

prescribed by the OMB, the statements are in addition to the financial reports used to monitor 

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

statements should be read with the realization that they are for a component of the U.S.

Government, a sovereign entity.

Balance Sheet

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

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

Treasury (the Treasury) is its largest asset, accounting for nearly 90 percent of total assets in both 

FY 2016 and FY 2017. The FLRA does not maintain any cash in commercial bank accounts or 

foreign currency balances, nor does it have any revolving or trust funds. The agency’s second 

largest asset is its furniture, equipment, and IT hardware and software, which is recorded at 

original acquisition cost, and then depreciated using the straight-line method over the estimated 

useful life of the asset. 

Total assets increased to $5.1 million at the end of FY 2017 from $4.7 million at the end of 

FY 2016. The agency did not make any new fixed-asset purchases in FY 2017, while the net 

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

Assets as of September 30, 2017 2016

Fund balance with the Treasury $4,981,469 $4,447,303

General property and equipment 187,819 312,839

Prepaid expenses 5,429 0

Accounts receivable 10,389 35,868

Total $5,185,106 $4,796,010

Totals may not add due to rounding.

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

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

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

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

accounted for 85 percent of total liabilities at the end of FY 2016. The remaining 15 percent 

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

goods and services. Agency liabilities totaled $4.2 million in FY 2016, and $4.4 million in 

FY 2017.
31

Liabilities as of September 30, 2017 2016

Unfunded leave $1,239,740 $1,333,158

FECA liability 1,496,960 1,371,281

Accrued payroll and benefits 738,689 1,038,339

Accounts payable 924,780 503,126

Total $4,400,169 $4,245,904

Totals may not add due to rounding; 2016 FECA liability includes $56K (Other liability)

The FLRA’s total net position at the end of FY 2017 was $784 thousand, a $234 thousand 

increase from the previous year.

Statement of Net Cost

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

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

in FY 2017 was $26.6 million, which is the same as in FY 2016, indicating no material yearover-year change. In FY 2017, 55 percent of the agency’s direct resources were dedicated to the 

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

42 percent were dedicated to the OGC; and the remaining 3 percent were devoted to the FSIP.

FY 2017 Financial Obligations by Budget Object Class

Compensation & benefits (78%)

Rent & utilities (10%)

Other contractual services (9%)

Communications (1%)

Supplies & equipment (1%)

Travel & transportation (1%)
32

Statement of Changes in Net Position

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

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

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

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

requirements. Cumulative results from FY 2016 to FY 2017 reflect a $200K increase totaling 

$2.5 million.

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

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

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

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

decrease of $487 thousand in total, unexpended agency appropriations in FY 2017.

Statement on Budgetary Resources

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

during FY 2016 and FY 2017 to carry out the activities of the agency, as well as the status of 

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

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

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

provided by agency employees on the Statute and FLRA mission.

The FLRA had $27.4 million in total budgetary resources available to it in FY 2017. The agency 

incurred obligations of $26.2 million in FY 2017, while recording outlays of $25.4 million. 

Total budgetary resources decreased by $89 thousand in FY 2017, due primarily to the timing of 

unpaid obligations. 
33

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 to determine whether the financial 

management system conforms to applicable financial requirements.

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

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

compliance with applicable laws and regulations as of September 30, 2017, 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.

Patrick Pizzella 

Acting Chairman

November 15, 2017
34

PERFORMANCE GOALS AND RESULTS

STRATEGIC GOAL 1: WE WILL RESOLVE DISPUTES UNDER THE 

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

PERFORMANCE GOAL 1.1: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF UNFAIR-LABOR-PRACTICE CASES.

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

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

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

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

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

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

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

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

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

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

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

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

precedential significance. 

OGC FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 1,488 1,570 1,425 1,178 1,333

Charges filed 4,659 4,696 4,418 4,345 3,655

Total caseload 6,147 6,266 5,843 5,523 4,988

Charges withdrawn/settled 3,646 3,779 3,662 3,268 3,130

Charges dismissed 673 809 800 749 786

Complaints issued 258 253 203 173 190

Total cases closed 4,577 4,841 4,665 4,190 4,106

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

OALJ FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 115 120 105 62 60

Cases received from the OGC 271 260 222 179 197

Total caseload 386 380 327 241 257

Settlements before decision 223 245 187 130 176

Cases closed by decision 43 30 78 51 24

Total cases closed 266 275 265 181 200

Cases pending, end of year 120 105 62 60 57
35

Authority FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 2 12 13 24 9

Exceptions filed 27 27 62 45 23

Total caseload 29 39 75 69 27

Cases closed procedurally 16 18 37 51 22

Cases closed based on merits 1 8 14 9 2

Total cases closed 17 26 51 60 24

Cases pending, end of year 12 13 24 9 3

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 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

68% 67% 72% 71% 72% 73%

Data Source: Case Management System (CMS)

Target: Exceeded. 

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 
36

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

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

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual

90% 86% 91% 77%

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

the OALJ within 180 days of the complaint being issued.*

FY 2016 FY 2017 *Clarified measure beginning in FY 2016

Actual Target Actual

80% 50% 93%

Data Source: CMS

Target: Exceeded.

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

Authority Member.

FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual

100% 50% 57% 89%

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

Authority Member.*

FY 2017 *New measure beginning in FY 2017

Target Actual

75% 50%

Data Source: CMS

Target: Did not meet. This is the first year of a transition from a goal of issuing 75 percent

of decisions within 180 days to the more ambitious goal of issuing 75 percent of decisions 

within 150 days. That, coupled with a low inventory of ULP cases, contributed to the 

Authority’s inability to meet this goal in FY 2017. The Authority issued only 2 ULP decisions 

total in FY 2017 – one timely and one untimely. The untimely case went overage by only 

2 days, issuing within 152 days, which would have been timely under the previous, 180-day

goal. Normally, the Authority would have issued more ULP cases, which would have helped 

ensure a higher percentage of timely ULP issuances. 
37

PERFORMANCE GOAL 2.1: RESOLVE OVERAGE 

UNFAIR-LABOR-PRACTICE CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage. 

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

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

FY 2016 FY 2017 *New measure beginning in FY 2016

Target Target Actual

95% 95% 95%

Data Source: CMS

Target: Met. 

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

OALJ within 365 days of the complaint being issued.*

FY 2016 FY 2017 *New measure beginning in FY 2016

Target Target Actual

89% 99% 98%

Data Source: CMS

Target: Substantially met. 

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

Authority Member.*

FY 2017 *New measure beginning in FY 2017

Target Actual

95% 100%

Data Source: CMS

Target: Exceeded. 
38

PERFORMANCE GOAL 1.2: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF REPRESENTATION CASES.

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

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

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

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

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

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

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

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

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

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

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

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

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

unless an application for review is filed with the Authority.

OGC FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 89 89 65 70 112

Petitions filed 253 235 225 265 208

Total caseload 342 324 290 335 320

Petitions withdrawn 106 118 95 112 130

Cases closed based on merits 147 141 125 111 132

Total cases closed 253 259 220 223 262

Cases pending, end of year 89 65 70 112 58

Authority FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 0 9 7 2 0

Applications for review 11 13 16 6 12

Total caseload 11 22 23 8 12

Cases closed procedurally 1 2 2 0 1

Cases closed based on merits 1 13 19 8 5

Total cases closed 2 15 21 8 6

Cases pending, end of year 9 7 2 0 6
39

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

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

petition.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

60% 66% 72% 73% 70% 68%

Data Source: CMS

Target: Substantially met. 

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Met.

PERFORMANCE GOAL 2.2: RESOLVE OVERAGE REPRESENTATION 

CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage.

 

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

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

FY 2016 FY 2017 *New measure beginning in FY 2016

Target Target Actual

98% 95% 95%

Data Source: CMS

Target: Met. 
40

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

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

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

FY 2017 *New measure beginning in FY 2017

Target Actual

95% 100%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.3: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF ARBITRATION CASES.

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

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

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

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

Authority FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 40 123 90 50 40

Exceptions filed 124 89 99 86 103

Total caseload 164 212 189 136 143

Cases closed procedurally 19 16 15 21 16

Cases closed based on merits 22 106 124 75 56

Total cases closed 41 122 139 96 72

Cases pending, end of year 123 90 50 40 71
41

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

Authority Member.

FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual

91% 34% 40% 79%

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

Authority Member.*

FY 2017 *New measure beginning in FY 2017

Target Actual

75% 79%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 2.3: RESOLVE OVERAGE ARBITRATION 

CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage.

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

Authority Member *

FY 2017 *New measure beginning in FY 2017

Target Actual

95% 100%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.4: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF NEGOTIABILITY CASES.

A federal agency bargaining with a union may claim that a particular union proposal cannot be 

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

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

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

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

may petition the Authority to resolve the negotiability dispute. 
42

Authority FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 8 9 17 23 27

Petitions filed 30 43 54 55 40

Total caseload 38 52 71 78 67

Cases closed procedurally 27 29 40 47 52

Cases closed based on merits 2 6 8 4 4

Total cases closed 29 35 48 51 56

Cases pending, end of year 9 17 23 27 11

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

an Authority Member.

Results

FY 2013 FY 2014 FY 2015 FY 2016

80% 60% 50% 75%

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

an Authority Member.*

FY 2017 *New measure beginning in FY 2017

Target Actual

75% 75%

Data Source: CMS

Target: Met. 

PERFORMANCE GOAL 2.4: RESOLVE OVERAGE NEGOTIABILITY 

CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage.

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

an Authority Member *

FY 2017 *New measure beginning in FY 2017

Target Actual

95% 100%

Data Source: CMS

Target: Exceeded. 
43

PERFORMANCE GOAL 1.5: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF BARGAINING-IMPASSE CASES.

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

and a federal agency to simply not agree on certain issues, and for the bargaining to reach an 

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

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

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

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

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

FSIP FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Cases pending, start of year 38 40 28 33 41

Impasses filed 194 134 139 142 98

Total caseload 232 174 167 175 139

Cases closed 192 146 134 134 125 

Cases pending, end of year 40 28 33 41 14

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

closed within 140 days of the date filed.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

95% 89% 100% 80% 80% 93%

Data Source: CMS

Target: Exceeded. 

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

97% 68% 100% 100% 70% 93%

Data Source: CMS

Target: Exceeded.
44

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

closed within 200 days of the date filed.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

87% 61% 100% 100% 70% 77%

Data Source: CMS

Target: Exceeded. 

STRATEGIC GOAL 2: WE WILL PROMOTE STABILITY IN THE 

FEDERAL LABOR-MANAGEMENT COMMUNITY BY PROVIDING 

LEADERSHIP AND GUIDANCE THROUGH ADR AND EDUCATION

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

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

government. In furtherance of that objective, the FLRA has integrated ADR and consensus 

decision-making into virtually all of its processes, and it has significantly expanded its training, 

outreach, and facilitation activities. ADR is an informal process that allows parties to discuss 

and develop their interests in order to resolve the underlying issues and problems in their 

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

pending ULP cases, representation cases, arbitration cases, negotiability appeals, and 

bargaining-impasse 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 agency customers at their desks to further assist them in resolving labor-management disputes. 

The FLRA’s goals include delivering outreach, training, and facilitation services that 

significantly contribute to the mission of the FLRA, and ensuring that training participants 

evaluate FLRA training as highly effective. 

PERFORMANCE GOAL 1.1: PROVIDE TARGETED ACCESS TO 

TRAINING, OUTREACH, AND FACILITATION ACTIVITIES WITHIN 

THE LABOR-MANAGEMENT COMMUNITY.

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

302 225 306 280 275 273

Data Source: CMS

Target: Substantially met.
45

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

activities.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

5,976 5,114 8,294 8,440 7,000 8,122

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 2.1: SUCCESSFULLY RESOLVE A 

SIGNIFICANT PORTION OF FLRA CASES THROUGH ADR.

The FLRA has integrated ADR and consensus decision-making into virtually all of its case 

processes, and it has 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 relationships. This includes interestbased conflict resolution and intervention services in pending ULP cases, representation cases, 

arbitration cases, negotiability appeals, and bargaining-impasse 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 agency customers at their desks to 

further assist them in resolving labor-management disputes.

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

are offered.*

FY 2017 *New measure beginning in FY 2017

Target Result

100% 100%

Data Source: CMS

Target: Met. 
46

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

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 

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

FY 2017 *New measure beginning in FY 2017

Target Actual

90% 100%

Data Source: CMS

Target: Exceeded. 

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

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

78% 96% 87% 74% 85% 93%

Data Source: CMS

Target: Exceeded. 

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

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 
47

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

services are offered.*

FY 2016 FY 2017 *New measure beginning in FY 2016

Actual Target Actual

100% 100% 100%

Data Source: CMS

Target: Met. 

Measure 2.ht are partially or totally resolved.*

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

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

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Actual Actual Actual Actual Target Actual

100% 80% 43% 79% 75% 80%

Data Source: CMS

Target: Exceeded. 

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

ADR services are offered.*

FY 2016 FY 2017 *New measure beginning in FY 2016

Target Target Actual

100% 100% 100%

Data Source: CMS

Target: Met

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

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

FY 2013 FY 2014 FY 2015

Actual Actual Actual

100% 100% 100%

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

are partially or totally resolved.*

FY 2016 FY 2017 *New measure beginning in FY 2016

Actual Target Actual

100% 90% 100%

Data Source: CMS

Target: Met.
48

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

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

FY 2013 FY 2014 FY 2015

Actual Actual Actual

28% 27% 39%

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

totally resolved voluntarily.*

FY 2016 FY 2017 *New measure beginning in FY 2016

Actual Target Actual

27% 30% 30%

Data Source: CMS

Target: Met.

STRATEGIC GOAL 3: WE WILL MANAGE OUR RESOURCES 

EFFECTIVELY AND EFFICIENTLY IN ORDER TO ACHIEVE 

ORGANIZATIONAL EXCELLENCE

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

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

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

the strategic goals and objectives outlined in the strategic plan. 

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

parties that the FLRA serves. Approximately 30 percent of the FLRA’s workforce has been with 

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

currently eligible to retire, and 30 percent of the workforce is eligible to retire in the next 5 years. 

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

workforce of the future, while retaining valuable institutional knowledge. 

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

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

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

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

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

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

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

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

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

future.
49

PERFORMANCE GOAL 1: RECRUIT, RETAIN, AND DEVELOP A 

HIGHLY TALENTED, MOTIVATED, AND DIVERSE WORKFORCE TO 

ACCOMPLISH THE FLRA’S MISSION.

Over the last eight years, the FLRA has demonstrated significant and marked improvement in its 

performance and service delivery, and it has continued to rank among the top ten small agencies 

in the Best Places to Work in the Federal Government Survey. These results demonstrate the 

agency’s commitment to empowering and developing a highly engaged and effective workforce. 

The success of FLRA employees is instrumental to its success as an agency. It is within this 

spirit that the FLRA actively manages its human-capital programs.

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

results.

FY 2013 Actual

Implemented a web-based T&A system to increase efficiency and 

accuracy of reporting. Obtained provisional certification of the 

FLRA’s SES Performance-Management System from OPM. 

Established an ADR process for resolving performancemanagement issues. As part of its strategic workforce planning 

efforts, continued employee development, including attorney 

details to other offices; ADR-facilitator training; and 

leadership-development and other workforce training. Established 

a Student Pathways Policy for student internships and partnered 

with the University of Maryland’s Federal Semester Program to 

offer unpaid internships to students.

FY 2014 Actual

Focused on succession planning by increasing targeted attorney 

recruitment. Renewed agreement with the University of Maryland 

for discounted tuition for agency employees. Increased agency 

resources through recruitment, staffing, and placement. Utilized 

the Student Pathways and Summer Externship programs to 

increase resources for casework and administrative initiatives 

throughout the agency. Realigned functions within the agency’s 

Office of the Executive Director to allow for improved 

efficiencies and customer service to agency employees. Worked 

extensively with managers to hold employees accountable for 

performance and development. Updated Attorney Recruitment 

Policy in order to allow managers greater hiring flexibility of the 

agency’s mission-critical occupation and to streamline the 

recruitment process. In collaboration with the Partnership for 

Public Service’s Excellence in Government Fellows program, 

developed and piloted an Employee Onboarding Handbook to 

improve the onboarding process and increase employee 

engagement.

FY 2015 Actual

Implemented a fully automated and integrated electronic system 

for personnel actions. Developed a more robust onboarding 

process through increased use of technology and piloted 

implementation of an Employee Onboarding Handbook. Updated 
50

certain human-resources policies and procedures. Continued to 

build internal capacity for handling the major human-resources 

functional areas. Position descriptions continued to be updated 

and now allow for greater growth and advancement opportunities 

within the agency, and employees readily volunteered for 

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

agency also renewed its agreement with a local university to offer 

discounted tuition to FLRA employees for self-directed study. 

Improved office customer service by improving the quality of 

advice provided to managers and employees. Worked with 

managers to educate them about and increase diversity and 

inclusion when seeking new agency talent. The agency achieved 

greater diversity in its workforce in FY 2015 by increasing 

strategic and targeted recruitment and posting job opportunities

with career-planning and placement services, local colleges and 

universities, and professional affinity-group organizations. With 

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

designed to assist higher-graded employees identify and 

strengthen critical leadership skills in preparation for eventually 

transitioning to formal leadership positions. To strengthen and 

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

supervisors, the agency identified a series of trainings geared 

towards developing strategic thinking and other critical skills in 

preparation for executive leadership at the FLRA. These training 

initiatives crossed components, bringing together future agency 

leaders from all offices to enhance their skills and encourage 

collaboration among peers. 

Measure 1.1: Demonstrate strong recruitment and retention practices.*

*New measure beginning in FY 2016

FY 2016 Actual

Strengthened diversity and inclusion recruitment efforts by, 

among other things, establishing and implementing a process for 

sharing job announcements with relevant affinity groups. 

Continued to enhance strategic and targeted recruitment by 

posting job opportunities with career-planning and placement

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

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

Worked to strengthen operational offices by seeking feedback 

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

efforts to revise and implement a robust agency-wide onboarding 

program, which will include briefings and continuing educational 

opportunities for employees to strengthen their FLRA knowledge.
51

Strengthened recognition and promotion of cultural-based 

celebrations, establishing an employee-driven initiative to develop 

and promote events and activities. Targeted efforts to educate 

managers about, and increase diversity and inclusion when, 

seeking new agency talent, and continued efforts to train agency 

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

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

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

employee perceptions of the inclusiveness of the agency by 

looking at twenty questions that measure the five “Habits of 

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

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

each of the five habits of inclusion, with scores averaging 

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

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

Work in the Federal Government rankings, the FLRA was ranked 

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

FY 2017

Target

Provide staff with developmental opportunities.

Align the agency-wide Performance Year (July 1 - June 30) with 

the Fiscal Year. 

Conduct an agency-wide review of all agency electronic Official 

Personnel Folders (eOPFs) to: ensure proper retirement coverage 

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

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

all folders for missing or undocumented prior service.

 

Conduct an agency-wide review of every agency position 

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

that accompanying cover sheets are accurate. 

Actual

Continued to develop capacity for shared administrative staff 

across several offices by utilizing administrative staff within the 

Authority Component – particularly those who are in 

“confidential” positions to agency leadership – to provide 

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

Employment Opportunity (EEO) Offices, which perform sensitive 

work. Not only does this provide administrative staff with a 

developmental opportunity, but it also allows for greater 

flexibility, relieves high-graded managerial staff from having to 

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

hire additional FTEs when workloads increase within the 

component. 

Aligned the agency-wide Performance Year (previously July 1 -
52

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

employee’s individual performance to the FLRA’s overall 

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

budget and funding requests. It will provide a more accurate 

measurement of each employee’s contribution towards 

achievement of agency-wide performance goals, greater 

accountability, and better data regarding resource needs. 

Conducted an agency-wide review of all agency electronic 

Official Personnel Folders (eOPFs) to: ensure proper retirement 

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

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

and examine all folders for missing or undocumented prior 

service.

 

Conducted an agency-wide review of every agency position 

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

that accompanying cover sheets are accurate, and revised PDs that 

needed revision or that were very dated, which has been 

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

drafting recent vacancy announcements. 

Data Source: FLRA Human Resources Division

Target: Met. 

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

*New measure beginning in FY 2016

FY 2016 Actual

Successfully implemented numerous cross-component 

developmental opportunities for employees, including workgroups 

to encourage innovation, the development and delivery of 

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

offices within the agency. 

Continued a robust training initiative focusing on leadership and 

skills development. Addressed temporary mission needs, 

maximized Student Pathways and student-internship programs, 

and utilized developmental details within the existing workforce. 

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

the FLRA’s existing workforce. 

Continued its overall success and improvement as measured by 

the FEVS, leaving no doubt that the FLRA continues to have a 
53

highly engaged workforce that is dedicated to the accomplishment 

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

continuous growth in overall employee satisfaction, as 

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

important indices – Employee Engagement and New IQ – and the 

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

addition, the FLRA had 66 identified strengths (items with 

65 percent or higher positive ratings) and no identified challenges 

(items with 35 percent or higher negative ratings). And the 

agency’s scores were above the government-wide average in 

69 out of 71 questions. Of particular note was that: 97 percent of 

FLRA respondents reported that they were held accountable for 

achieving results; 96 percent positively rated the overall quality of 

the work done by their work unit; 96 percent indicated that they 

are willing to put in extra effort to get a job done; 94 percent knew 

how their work related to the agency’s goals and priorities; 

94 percent thought that the people they worked with cooperated to 

get the job done; 94 percent believed that the agency was

successful at accomplishing its mission; 93 percent found that the 

workforce had the job-relevant knowledge and skills necessary to 

accomplish organizational goals; 92 percent indicated that their 

supervisors regularly communicated with them about their 

performance; and 91 percent stated that employees in their work 

unit shared job knowledge with each other. Moreover, the agency 

maintained its sustained growth of positive responses to the 

question “supervisors in my work unit support employee 

development” – increasing by nearly 9.5 percent over 2015.

FY 2017

Target

Provide staff with developmental opportunities.

Managers will assess all employees on their developmental needs 

and provide at least one targeted developmental opportunity to 

each of their staff members per year.

Maintain sustained growth of positive responses to the OPM 

FEVS question “supervisors in my work unit support employee 

development” (Q. 47). 

Actual

Continued to develop capacity for shared administrative staff 

across several offices by utilizing administrative staff within the 

Authority Component – particularly those who are in 

“confidential” positions to agency leadership – to provide 

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

Employment Opportunity (EEO) Offices, which perform sensitive 

work. Not only does this provide administrative staff with a 

developmental opportunity, but it also allows for greater 

flexibility, relieves high-graded managerial staff from having to 

perform lower-graded administrative tasks, and avoids the need to 
54

hire additional FTEs when workloads increase within the 

component. 

Most managers assessed all of their employees on their 

developmental needs and provided at least one targeted 

developmental opportunity to each. Training budgets for every 

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

reduced ability to procure outside training. This resulted in 

managers finding in-house opportunities to help develop their 

employees through details (e.g., Acting Chief Information 

Officer), work groups (e.g., eFiling), and special projects (e.g., 

revising FLRA policies).

In the 2017 FEVS, 78 percent of FLRA employees responded 

positively to the OPM FEVS question “supervisors in my work 

unit support employee development” (Q. 47). Although this 

represents a 6 percent decrease from 2016, it is nonetheless 

5 percent above the small-agency score of 73 percent, and 

10 percent above the Government-wide score of 68 percent. 

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

by the Federal Employee Viewpoint Survey (FEVS), leaving no 

doubt that the FLRA’s investments in the recruitment, retention, 

and skills and leadership development of its employees continues 

to produce a highly engaged workforce that is dedicated to the 

accomplishment of its mission. The results of the 2017 survey 

reflect that the FLRA has 55 identified strengths (items with 

65 percent or higher positive ratings) and no identified challenges 

(items with 35 percent or higher negative ratings). Compared to 

2016, the FLRA increased its positive ratings for 15 questions, 

experienced no change in its positive ratings for 4 questions, and 

decreased its positive ratings for 52 questions. The agency 

outperformed the Government-wide average in 70 out of 71 

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

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

indices – Employee Engagement and New IQ – with #6 and #5 

rankings, respectively. With an Employee Engagement Index 

score of 77 percent and a New IQ Index score of 71 percent, the 

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

well as for every sub-category of each index. In addition, the 

FLRA’s Global Satisfaction index score of 72 percent – well 

above the Government-wide average of 64 percent – is a positive 

indicator of employees’ overall workplace satisfaction. 

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

that: 99 percent of FLRA respondents indicate that they are 
55

willing to put in extra effort to get a job done; 98 percent

positively rate the overall quality of work done by their work unit; 

97 percent report that they are held accountable for achieving 

results; 95 percent know how their work relates to the agency’s 

goals and priorities; and 92 percent say that they are constantly 

looking for ways to do their jobs better. These results show that 

employees understand the FLRA’s mission, understand their role 

in achieving it, and see themselves as an integral part of achieving 

agency-wide success. 

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

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

employees also identified areas for improvement. These areas 

include opportunities for advancement, meaningful recognition of 

differences in performance, encouragement of creativity and 

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

communication from management about what’s going on in the 

agency. 

Data Source: FLRA Human Resources Division

Target: Substantially met. 

PERFORMANCE GOAL 2: IMPROVE USE OF EXISTING 

TECHNOLOGY AND DEPLOY NEW IT SYSTEMS TO STREAMLINE 

AND ENHANCE ORGANIZATIONAL OPERATIONS.

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

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

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

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

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

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

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

documents. In recognition of this, in FY 2015, the agency developed and launched a five-year 

plan to accomplish the transition to fully electronic case files in agile phases. 
56

Measure 2.1: Expand the use of eFiling. 

FY 2013 Actual 10 percent of cases eFiled.

FY 2014 Actual 12 percent of cases eFiled.

FY 2015 Actual 17 percent of cases eFiled.

FY 2016 Actual 22 percent of cases eFiled. 

FY 2017 Target 65 percent of cases eFiled.

Actual 35 percent of cases eFiled. 

Data Source: CMS

Target: Not Met. Although the FLRA did not meet its FY 2017 performance target as an 

agency, 58 percent of Authority cases, 30 percent of OGC cases, 62 percent of FSIP cases, and 

100 percent of OALJ cases were filed electronically in FY 2017. This represents significant 

progress in the agency’s long-term eFiling and electronic-case-file efforts. 

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

FY 2013 Actual Conducted a pilot program on end-to-end case processing.

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

FY 2015 Actual

Made eFiling available for OALJ cases, resulting in eFiling being 

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

completed full integration of the CMS and eFiling systems, enabling 

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

FY 2016 Actual

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

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

applications have been merged, creating bridges between the two 

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

The FLRA neared completion of improving the eFiling user interface, 

which builds upon the existing system, making the eFiling system 

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

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

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

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

FY 2017 Target

Incorporating internal and external customer feedback, complete 

implementation of improvements to the eFiling user interface 

(eFiling 3.0) in order to increase use of eFiling. 

Lay the foundation for modernizing the infrastructure for the agency’s 

electronic CMS and eFiling by transitioning to a new backend product 

that will allow for a more user friendly and complete integration of 

the CMS, the eFiling system, and the DMS. 

Complete the initial deployment of an agency-wide, cloud-based 

DMS, replacing the current network shares with an integrated 

document and email communications system that will facilitate 
57

document sharing and electronic case-processing initiatives. 

Actual

Incorporating internal and external customer feedback, adopting 

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

completed development of a brand new, user-friendly eFiling 

application with a Ruby on Rails user interface and a Postgres 

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

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

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

It is anticipated to dramatically increase the number of FLRA cases 

filed electronically. 

Laid the foundation for modernizing the infrastructure for the 

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

backend product – Postgres database housed in Amazon Web 

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

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

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

existing network shares with an integrated document and email 

communications system that will facilitate document sharing and 

electronic case-processing initiatives. 

Data Source: FLRA Information Resources Management Division

Target: Met. 

VERIFICATION AND VALIDATION OF PERFORMANCE DATA

The CMS is used by FLRA offices to track and manage caseload. Each office enters information 

on case filings into the CMS, and is accountable for quality control of the data entered into the 

system. Case-performance data verification and validation was performed using information 

from the CMS.
58

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The FLRA’s FY 2017 Performance and Accountability Report reflects the correlation between 

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

by presenting FLRA performance with the financial results of agency operations. The principal 

financial statements and notes that follow explain the FLRA’s financial position as of 

September 30, 2017, and how the agency’s financial resources were expended to achieve 

performance results. For the twelfth consecutive year, the FLRA has received an unqualified 

audit opinion on its financial statements. Along with the unqualified opinion, the report of 

independent auditors found no material weaknesses in the design and operation of the agency 

system of internal controls over financial reporting.

With FY 2018 expected to be another challenging year, we will continue to focus on identifying 

solutions to maintain our financial stability, ensure transparency and accountability, and maintain 

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

continue to work with the Administration and the Congress in seeking ways to strengthen and 

improve the agency’s system for the administrative control of funds. We are confident that the 

FLRA’s financial and performance data are complete, accurate, and reliable.

Patrick Pizzella

Acting Chairman and Chief Financial Officer

November 15, 2017
59

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2017 and 2016

2017 2016

Assets:

Intragovernmental:

Fund balance with the Treasury (Note 2) $4,981,468 $4,447,303

Accounts receivable (Note 3) 9,966 32,833

Prepaid expenses 5,429 0

Total intragovernmental 4,996,863 4,480,136

Accounts receivable, net (Note 3) 424 3,035

Property, equipment and software, net (Note 4) 187,819 312,839

Total Assets $5,185,106 $4,796,010

Liabilities:

Intragovernmental:

Accounts payable $298,123 $319,231

Accrued payroll and benefits 150,022 171,637

FECA unfunded (Note 5) 242,228 227,472

Total intragovernmental 690,373 718,340

Accounts payable 626,657 183,895

Unfunded leave (Note 5) 1,239,740 1,333,158

FECA actuarial liability (Note 5) 1,254,731 1,143,753

Accrued payroll and benefits 588,668 866,703

Other (Note 6) 0 55

Total Liabilities $4,400,169 $4,245,904

Net Position:

Unexpended appropriations – other funds $3,333,392 $2,906,771

Cumulative results of operations – other funds (2,548,456) (2,356,665)

Total Net Position $784,936 $550,106

Total Liabilities and Net Position $5,185,106 $4,796,010

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
60

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2017 and 2016

2017 2016

Gross Program Costs:

Authority:

Intragovernmental costs $5,802,070 $6,105,360

Public costs 8,801,998 8,510,513 

Total program costs 14,604,068 14,615,873

Less: Earned revenue

 

(12,806) (5,702)

Net Program Costs $14,591,262 $14,610,171

Office of the General Counsel:

Intragovernmental costs $2,552,443 $2,557,394

Public costs 8,625,612 8,519,388

Total program costs 11,178,055 11,076,782

Less: Total earned revenue (14,562) (14,759)

Net Program Costs $11,163,493 $11,062,023

Federal Service Impasses Panel:

Intragovernmental costs $187,956 $188,268

Public costs 676,661 779,173

Total program costs 864,617 967,441

Less: Total earned revenue 0 0

Net Program Costs $864,617 $967,441

Total gross program costs $26,646,741 $26,660,096

Less: Total earned revenue (27,368) (20,461)

Net Cost of Operations $26,619,373 $26,639,635

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
61

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2017 and 2016

2017 2016

Cumulative Results of Operations:

Beginning balance $(2,356,665) $(2,198,225)

Budgetary financing sources:

Appropriations used 25,566,251 25,274,176

Other financing sources (non-exchange):

Imputed financing 861,331 1,207,019

FOIA collections 0 0

Total financing sources 26,427,582 26,481,195

Net cost of operations (26,619,373) (26,639,635)

Net change

 

(191,791)

 

(158,440)

Cumulative Results of Operations $(2,548,457) $(2,356,665)

Unexpended Appropriations:

Beginning balance $2,906,770 $2,321,811

Budgetary financing sources:

Appropriations received 26,200,000 26,200,000

Other adjustments (207,127) (340,865)

Appropriations used (25,566,250) (25,274,175)

Total budgetary financing sources 426,622 584,960

Total Unexpended Appropriations $3,333,393 $2,906,771

Net Position $784,936 $550,106

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
62

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2017 and 2016

2017 2016

Budgetary Resources:

Unobligated balance, brought forward, October 1 $1,314,392 $1,643,525

Recoveries of prior year unpaid obligations 122,663 30,471

Other changes in unobligated balance (191,959) (332,793)

Unobligated balance from prior year budget authority, net 1,245,096 1,341,203

Appropriation 26,200,000 26,200,000

Spending authority from offsetting collections 27,312 20,413

Total budgetary resources $27,472,408 $27,561,616

Status of Budgetary Resources:

New Obligations and upward adjustments (Note 10) $26,218,588 $26,247,223

Unobligated balance, end of year:

Apportioned, unexpired account 66,825 47,800

Expired unobligated 1,186,995 1,266,593

Total obligated balance, end of year 1,253,820 1,314,393

Total budgetary resources $27,472,408 $27,561,616

Change in Obligated Balance:

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $3,133,898 $1,839,457

Obligations incurred 26,218,588 26,247,223

Outlays (gross) (25,492,210) (24,922,310)

Recoveries of prior year unpaid obligations (122,663) (30,471)

Unpaid obligations, end of year 3,737,613 3,133,899

Uncollected payments:

Uncollected payments, federal sources, brought forward, October 1 (989) (3,100)

Change in uncollected payments, federal sources

 

(8,976) 2,110

Uncollected payments, federal sources, end of year (9,965) (990)

Memorandum (non-add) entries:

Obligated balance, start of year $3,132,909 $1,836,357

Obligated balance, end of year $3,727,648 $3,132,909

Budget Authority and Outlays, Net:

Budget authority, gross $26,227,312 $26,220,413

Actual offsetting collections (33,504) (30,596)

Change in uncollected payments, federal sources

 

(8,976) 2,110

Recoveries of prior year paid obligations (discretionary and mandatory) 15,167 8,073

$26,200,000 $26,200,000

Outlays, gross 25,492,210 24,922,310

Actual offsetting collections (33,503) (30,596)

Outlays, net (total) 25,458,707 24,891,714

Agency Outlays, Net $25,458,707 $24,891,714

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
63

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 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 owed to the FLRA by other 

federal agencies and the public. Amounts due from federal agencies are considered fully 
64

collectible and consist of interagency agreements. An allowance for uncollectible accounts

receivable from the public is established when either: (1) management determines that 

collection is unlikely to occur after a review of outstanding accounts and the failure of all 

collection efforts; or (2) an account for which no allowance has been established is submitted 

to the Treasury for collection, which occurs when it becomes 120 days delinquent. Based on 

historical experience, all receivables are considered collectible and no allowance is provided.

(f) General Property and Equipment (P&E) – This category consists of equipment and internal 

use software. The basis for recording purchased P&E is full cost, including all costs incurred 

to bring FLRA P&E to and from a location suitable for its intended use. P&E is depreciated 

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

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

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

standards provide for capitalized property to continue to be reported on the Balance Sheet. 

P&E that are not capitalized because they are under the capitalization threshold are expensed 

in the year of acquisition.

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

similar items that individually are worth less than $25,000, but collectively are worth more 

than $100,000, are also capitalized using the same general P&E categories and useful lives as 

capital acquisitions. Major building alterations and renovations are capitalized, while 

maintenance and repair costs are charged to expense as incurred.

General P&E Category Service Life

Software 3 years

Computer equipment 5 years

Office equipment 7 years

Office furniture 15 years

Leasehold improvements Life of lease

(g) Liabilities – Liabilities represent the amount of monies or other resources likely to be paid by 

the FLRA as a result of transactions or events that have already occurred. Liabilities are 

recognized when they are incurred, regardless of whether they are covered by available 

budgetary resources. The FLRA reports its liabilities under two categories –

“Intragovernmental” and “With the Public.” Intragovernmental liabilities represent funds 

owed to another government agency. Liabilities with the public represent funds owed to any 

entity or person that is not a federal agency, including private sector firms and federal 

employees. Each of these categories may include liabilities that are covered by budgetary 

resources and liabilities not covered by budgetary resources. No liability can be paid, 

however, absent an appropriation. Liabilities for which an appropriation has not been 

enacted are, therefore, classified as not covered by budgetary resources, since there is no 

certainty that the appropriation will be enacted. Liabilities that are covered by budgetary 

resources consist of intragovernmental and public accounts payable and accrued funded 

payroll. Liabilities not covered by budgetary resources in FY 2016 and FY 2017 consist of 
65

accrued and actuarial Federal Employees Compensation Act (FECA) compensation and 

unfunded employee leave. The Federal government, acting in its sovereign capacity, can 

abrogate liabilities other than contracts.

(h) FECA Liabilities – An accrued FECA liability is recorded for actual and estimated future 

payments to be made for workers’ compensation pursuant to the FECA. The actual costs 

incurred are reflected as a liability because agencies reimburse the Department of Labor 

(DOL) two years after the actual payment of expenses. Future revenues are used for 

reimbursement to the DOL. The liability consists of: (1) the unreimbursed cost paid by the 

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

estimated future payments calculated by the DOL.

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

liability estimate is based on the DOL’s FECA actuarial model that takes the amount of 

benefit payments over the last twelve quarters and calculates the annual average of payments 

for medical expenses and compensation. This average is then multiplied by the liabilities-tobenefits paid ratios for the whole FECA program. The ratios may vary from year to year as a 

result of economic assumptions and other factors, but the model calculates a liability 

approximately twelve times the annual payments.

(i) Annual, Sick, and Other Leave – Amounts associated with the payment of annual leave are 

accrued while leave is being earned by employees, and this accrual is reduced as leave is 

taken. Each year, the balance in the accrued annual leave account is adjusted to reflect 

current pay rates. To the extent that current- or prior-year appropriations are not available to 

finance annual leave, future financing sources will be used. Sick leave and other types of 

non-vested leave are expensed as taken.

Any liability for sick leave that is accrued, but not taken, by a Civil Service Retirement 

System (CSRS)-covered employee is transferred to the Office of Personnel Management 

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

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

credit until October 28, 2009. For retirements effective between October 28, 2009, and 

December 31, 2013, 50 percent of unused sick leave can be used for additional service credit. 

For retirements effective after December 31, 2013, 100 percent of unused sick leave can be 

credited.

(j) Net Position – The components of net position are unexpended appropriations and 

cumulative results of operations. Unexpended appropriations include undelivered orders and 

unobligated balances. Undelivered orders reflect the amount of goods and services ordered 

that have yet to be actively or constructively received. Unobligated balances are the amount 

of appropriations or other authority remaining after deducting the cumulative obligations 

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

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

the remaining book value of capitalized assets, and future funding requirements.
66

(k) Retirement Plans – The FLRA’s employees participate in the CSRS or the FERS. For CSRS 

employees hired before January 1, 1984, the FLRA withholds 7 percent of each employee’s 

salary and contributes 7 percent of the employee’s basic salary to the CSRS Retirement and 

Disability Fund. These employees may also contribute, on a tax-deferred basis, to a defined 

contribution plan – the Thrift Savings Plan (TSP). The regular Internal Revenue Service 

limit in FY 2016 and FY 2017 was $18,000. 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 (OASDI) up to a specified wage ceiling and 0.8 

percent of an employee’s gross earnings for retirement. In FY 2017, the FLRA matched the 

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

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

Annuity Employee programs, the agency matched with a contribution equal to 11.9 percent 

for employees hired during and after calendar year 2013. 

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

account is automatically established. The FLRA is required to make a mandatory 

contribution of 1 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 5 percent of his or her 

salary. Matching contributions are not made to the TSP accounts established by CSRS 

employees. The FLRA does not report on its financial statements information pertaining to 

the retirement plans covering its employees. Reporting amounts such as plan assets, 

accumulated plan benefits, and related unfunded liabilities, if any, are the responsibility of 

the OPM.

FERS employees and certain CSRS reinstatement-eligible employees are eligible to 

participate in the Social Security program after retirement. CSRS employees who are 65 or 

older are eligible for Social Security payments (even if they have not retired). In these 

instances, the FLRA remits the employer’s share of the required contribution.

(l) Imputed Financing from Costs Absorbed by Others – The FASAB’s SFFAS No. 5, 

Accounting for Liabilities of the Federal Government, requires that employer agencies 

recognize the full cost of pension, health, and life insurance benefits during their employees’ 

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

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

Program, must provide the “cost factors” that adjust the agency contribution rate to the full 

cost for the applicable benefit programs. An imputed financing source and corresponding 

imputed personnel cost is reflected in the Statement of Changes in Net Position and the 

Statement of Net Cost.

(m)Revenue and Other Financing Sources – The FLRA’s revenues are derived from 

reimbursable work agreements, Freedom of Information Act collections, and a direct annual 
67

appropriation. The FLRA recognizes reimbursable work when earned, i.e., services have 

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

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

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

Annual appropriations are used, within statutory limits, for salaries and administrative 

expenses and for operating and capital expenditures for essential P&E. Appropriations are 

recognized as non-exchange revenues at the time the related program expenses are incurred. 

Appropriations expended for capitalized P&E are recognized as expenses when an asset is 

consumed in operations. The FLRA’s annual appropriation for FY 2016 and FY 2017 was 

$26,200,000.

(n) Expired Accounts and Cancelled Authority – Unless otherwise specified by law, annual 

budget authority expires for incurring new obligations at the beginning of the subsequent 

fiscal year. The account into which the annual authority is placed is called an expired 

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

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

or decrease valid obligations incurred during the unexpired period that were not previously 

reported. At the end of the fifth expired year, the account is cancelled and any remaining 

money is returned to the Treasury.

(o) Contingencies – A contingency is an existing condition, situation, or set of circumstances 

involving uncertainty as to possible gain or loss to the agency. The uncertainty will 

ultimately be resolved when one or more future events occur or fail to occur. With the 

exception of pending, threatened, or potential litigation, a contingent liability is recognized 

when a past transaction or event has occurred, a future outflow or other sacrifice of resources 

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

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

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

and the related future outflow or sacrifice of resources is measurable.

(p) Use of Estimates – The preparation of financial statements in conformity with GAAP 

requires management to make estimates and assumptions that affect the reported amounts of 

assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.

(q) Advances and Prepayments – Advance payments are generally prohibited by law. There are 

some exceptions, such as reimbursable work agreements, subscriptions, and payments to 

contractors and employees. Payments made in advance of the receipt of goods and services 

are recorded as advance payments and recognized as expenses when the related goods and 

services are received.
68

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 Treasury account balances as of September 30, 

2017 and 2016 were as follows (In Dollars):

Fund Balance with the Treasury

As of September 30, 2017 2016

Appropriated Funds $4,990,234 $4,448,237

Other Fund Types (8,766) (934)

Total $4,981,468 $4,447,303

Status of Fund Balance with the Treasury

As of September 30, 2017 2016

Unobligated balance available $66,825 $47,800

Unobligated balance unavailable 1,186,996 1,266,593

Obligated balance not yet distributed 3,727,647 3,132,910

Total $4,981,468 $4,447,303

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

balances in the Treasury accounts.

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

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

the unavailable balance as described in the following paragraph.

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

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

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

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

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

orders, and undelivered orders that have reduced unexpended appropriations but have not yet 

decreased the fund balance on hand.

NOTE 3: Accounts Receivable

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

Federal agencies (intragovernmental) and the public. There are no amounts that are deemed 
69

uncollectible as of September 30, 2017 and 2016. Accounts Receivable balances as of 

September 30, 2017 and 2016 were as follows (In Dollars):

Accounts Receivable

2017 2016

Intragovernmental $9,966 $32,833

With the public 424 3,035

Total $10,390 $35,868

NOTE 4: Property, Equipment, and Software – Net

Schedule of Property, Equipment, and Software as of September 30, 2017 (in Dollars): 

Schedule of Property, Equipment, and Software as of September 30, 2016 (in Dollars):

NOTE 5: Liabilities Not Covered by Budgetary Resources 

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

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

claims based on data provided from the DOL. The actuarial calculation is based on benefit 

payments made over 12 quarters, and calculates the annual average of payments. For medical 

expenses and compensation, this average is then multiplied by the liability-to-benefit paid ratio 

for the whole FECA program. 

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

end of each month the balance in the unfunded leave account is adjusted to reflect the liability at 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment $ 455,885 $ 286,579 $ 169,306

Office Equipment 202,231 202,231 -

Office Furniture 453,695 435,182 18,513

Total $ 1,111,811 $ 923,992 $ 187,819

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment $ 455,885 $ 195,402 $ 260,483

Office Equipment 202,231 198,634 3,597

Office Furniture 453,695 404,936 48,759

Total $ 1,111,811 $ 798,972 $ 312,839
70

current pay rates and leave balances. Unfunded leave is paid from future funding sources and, 

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

expensed as taken. All other liabilities are considered to be covered by budgetary resources. 

Liabilities Not Covered by Budgetary Resources as of September 30, 2017, and September 30, 

2016, consist of the following (in Dollars):

NOTE 6: Other Liabilities

There were no other liabilities as of September 30, 2017.

Other liabilities as of September 30, 2016 consisted of the following (in Dollars):

NOTE 7: Leases

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

the FLRA is not liable for any lease terms beyond one year. 

(a) 1400 K Street NW, Washington, D.C. – The FLRA has an interagency agreement with the 

General Services Administration for office space at 1400 K Street NW, Washington, D.C. 

The term is for 87 months beginning on or about June 1, 2014. The FLRA has the right to 

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

after the first twelve months of occupancy.

(b) 223 Peachtree Street NE, Atlanta, GA – The FLRA has an interagency agreement with the 

General Services Administration for office space at 223 Peachtree Street NE, Atlanta, GA. 

The term is for 120 months beginning on or about January 18, 2012. The FLRA has the 

2017 2016

Intragovernmental

 FECA Unfunded $ 242,229 $ 227,472

Total Intragovernmental Liabilities $ 242,229 $ 227,472

With the Public

 Unfunded Leave $ 1,239,740 $ 1,333,158

 FECA Actuarial Liability 1,254,731 1,143,753

Total Public Liabilities $ 2,494,471 $ 2,476,911

Total Liabilities $ 2,736,700 $ 2,704,383

Current Non-Current 2016 Total

With the Public

 Advances and Prepayments $ 55 $ - $ 55

Total Other Liabilities $ 55 $ - $ 55
71

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

any point after the first twelve months of occupancy.

(c) 10 Causeway Street, Boston, MA – The FLRA has an interagency agreement with the 

General Services Administration for office space at 10 Causeway Street, Boston, MA. The 

term is for 48 months beginning on or about May 15, 2016. The FLRA has the right to 

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

after the first twelve months of occupancy. 

(d) 224 S. Michigan Avenue, Chicago, IL – The FLRA has an interagency agreement with the 

General Services Administration for office space at 224 S. Michigan Avenue, Suite 445, 

Chicago, IL. The term is for 120 months beginning on or about June 16, 2012. The FLRA 

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

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

(e) 525 Griffin Street, Dallas, TX – The FLRA has an interagency agreement with the General 

Services Administration for office space at 525 Griffin Street, Dallas, TX. The term is for 

120 months beginning on or about October 1, 2007.* The FLRA has the right to terminate 

the lease based on the availability of funds or with a four-month notice at any point after the 

first twelve months of occupancy.

(f) 1244 Speer Boulevard, Denver, CO – The FLRA has an interagency agreement with the 

General Services Administration for office space at 1244 Speer Boulevard, Denver, CO. The 

term is for 57 months beginning on or about July 1, 2013. FLRA has the right to terminate 

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

first twelve months of occupancy.

(g) 901 Market Street, San Francisco, CA – The FLRA has an interagency agreement with the 

General Services Administration for office space at 901 Market Street, San Francisco, CA. 

The term is for 120 months beginning on or about August 1, 2011. FLRA has the right to 

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

after the first twelve months of occupancy.

NOTE 8: Commitments and Contingencies

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

brought by or against the agency. In the opinion of FLRA management, the ultimate resolution 

of any proceedings, actions, and claims will not materially affect the financial position or the 

results of operations of the FLRA. The agency examined its FY 2012 obligations prior to 

cancellation, and it believes that it does not have any outstanding commitments or contingencies 

that will require future resources to liquidate.

 * This lease expired on September 30, 2017. 
72

NOTE 9: Intragovernmental Costs and Exchange Revenue

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

on a transaction by transaction basis. Preceding transactions in the lifecycle of a product will not 

have an impact on subsequent transactions. If the FLRA purchases goods or services from 

another Federal entity, capitalizes them into inventory, and later resells them to the public, the 

cost of the original purchase of resale assets from the other Federal entity will be classified as 

“intragovernmental” at the time of the purchase. At ultimate sale to the end user, the resulting 

cost of goods will be classified as “with the public.” The purpose of this classification is to 

enable the Federal government to provide consolidated financial statements, and not to match 

public and intragovernmental revenue with costs that are incurred to produce public and 

intragovernmental revenue.

NOTE 10: Apportionment Categories of Obligations Incurred

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

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

Resources in fiscal years 2017 and 2016 consisted of the following:

NOTE 11: Undelivered Orders at the End of the Period

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

2017 and 2016 was $ 2,079,573 and $ 1,592,434, respectively.

NOTE 12: Explanation of Differences between the Statement of Budgetary 

Resources 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 2018 

President’s Budget, with actual amounts for FY 2016, has been reconciled to the Statement of 

Budgetary Resources. The FY 2019 President’s Budget, with actual amounts for FY 2017, will 

not be published until February 2018. 

2017 2016

Direct Obligations, Category A $ 26,191,275 $ 26,226,706

Reimbursable Obligations, Category A $ 27,313 $ 20,517

Total Obligations Incurred $ 26,218,588 $ 26,247,223
73

NOTE 13: Incidental Custodial Collections

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

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

material to the overall financial statements. FLRA’s custodial collections are $1 for the year 

ended September 30, 2017, and $4,787 for the year ended September 30, 2016. Custodial 

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

the financial statements of the Agency.

NOTE 14: Reconciliation of Net Cost of Operations to Budget

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

for the fiscal years ended September 30, 2017, and September 30, 2016, are shown in the 

following table:
74
75
76
77

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
78

UNITED STATES OF AMERICA

FEDERAL LABOR RELATIONS AUTHORITY

WASHINGTON, D.C. 20424-0001

INSPECTOR GENERAL

MEMORANDUM

DATE: October 4, 2017

TO: Patrick Pizzella

Acting Chairman

Ernest DuBester

Member

FROM: Dana Rooney

Inspector General

SUBJECT: Top Management and Performance Challenges Facing the Federal Labor 

Relations Authority

This memorandum transmits the top management and performance challenges facing the 

Federal Labor Relations Authority (FLRA) as identified by the Office of Inspector General.

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. The Reports Consolidation Act of 

20001 requires our office to prepare an annual statement that summarizes what we consider to 

be the “most serious management and performance challenges facing the agency.” This 

statement should be included in the FLRA’s PAR or Agency Financial Report for Fiscal Year 

2017.

Accordingly, the attached document summarizes what we consider to be the most serious 

management and performance challenges facing the FLRA, and assesses management’s 

progress in addressing them. FLRA has made progress with respect to the management 

challenge Information Technology Security Needs Continuing Improvement by addressing its 

privacy weaknesses. Due to prior outstanding recommendations and weaknesses related to the 

Federal Information Security Modernization Act of 2014, we continue to report the 

management challenge. This year, we retained all three management challenges from last 

year’s list. These management challenges include: (1) Information Technology Security Needs 

Continuing Improvement; (2) Proper Handling of Records; and (3) Closure of Open 

Recommendations Outstanding for More Than 1 Year.

 1 Public Law 106-531
79

We provided our draft challenges report to FLRA and considered all comments received. In 

closing, we would like to express appreciation to you and the Acting Executive Director for 

continuing to support our work and your commitment to excellence at FLRA. We look forward 

to working with the FLRA to continually improve the FLRA’s efforts to address these important 

challenges.

Attachment

cc: Michael Jeffries, Acting Executive Director

Gregory Mister, Director Budget and Finance
80

 Office of Inspector General

Federal Labor Relations Authority

Information Technology Security Needs Continuing Improvement

Safeguarding Federal computer systems and electronic data has been a long standing challenge 

for all Federal agencies including the Federal Labor Relations Authority (FLRA). Since 1997, 

the Government Accountability Office (GAO) has identified the security of Federal cyber assets 

on its High-Risk List. Further, in 2003 GAO added protection of critical cyber infrastructure 

and in 2015, added the privacy of personally identifiable information1.

 

The FLRA depends on its systems and data to carry out its mission. These systems are at risk 

and the FLRA must remain vigilant in establishing a control environment to continuously 

monitor potential Information Technology (IT) risks, threats, vulnerabilities, mitigation and 

implementation plans. 

The 2016 Management Challenge for IT security included the Privacy Program and Information 

Security because of weaknesses identified in a review of FLRA’s privacy and data security 

policies, procedures and practices. In May 2017, the Office of Inspector General (OIG) 

reviewed FLRA’s Privacy and Data Protection program and closed the single remaining finding 

and no new weaknesses were identified. Therefore, the OIG removed the Privacy Program 

leaving the IT challenge open.

For the last several years, the OIG’s annual Federal Information Security Modernization Act of 

2014 (FISMA) review has identified repeated weaknesses in IT. The FLRA provided corrective 

action plans in response to the OIG recommendations. In our 2017 FISMA review we plan to 

evaluate the IT deficiencies and actions taken to correct the system weaknesses. 

Information Security

Since the passage of the FISMA, the OIG has annually reviewed the FLRA’s information 

security program. The FISMA requires the FLRA OIG to prepare a report summarizing the 

review findings and submit it to the Office of Management and Budget (OMB). The October 

2016 FISMA review reported five prior year recommendations. There were no new 

recommendations included in the Fiscal Year (FY) 2016 FISMA Report. Of the five prior year 

open FISMA recommendations, three were from the FY 2015 report and two were from the FY 

2014 report. 

 1 See http://www.gao.gov/highrisk/ensuring_the_security_federal_government_information_systems/why_did_study
81

 Office of Inspector General

Federal Labor Relations Authority

Progress in Addressing the Challenge

The FLRA has reported in its Plan of Action and Milestones that it will resolve the remaining 

FISMA findings in 2017. The impact of this effort will be assessed during the FY 2017 FISMA 

review. 

What Needs to Be Done

FLRA should continue to address and resolve FISMA weaknesses identified by the OIG. 

Although the FLRA has addressed weaknesses in its Privacy Program, the agency must be 

diligent in continuing to monitor and assess its information security to ensure proper IT security 

controls are in place. The OIG plans to reassess FLRA’s Privacy Program in 2019.

Key OIG Resources

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2016 (ER-17-01) October 27, 

2016 

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9, 

2015

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2014 (ER-15-01), November 14, 

2014 

• OIG Report, Evaluation of FLRA Privacy and Data Protection (ER-17-05), May 9, 2017

Proper Handling of Records (hard copy and electronic) 

Presidential Memorandum, Managing Government Records, was signed on November 28, 2011. 

It announced an Executive Branch-wide effort to reform Government records. On August 24, 

2012, OMB and National Archives and Records Administration (NARA) jointly issued 

Memorandum M-12-18, Managing Government Records Directive. The new directive provided 

goals, requirements, and deadlines for implementing the Presidential Memorandum. The first 

goal of the Directive has two compliance deadlines: 

• By December 2016, Federal agencies will manage both permanent and temporary email 

records in an accessible electronic format; and 
82

 Office of Inspector General

Federal Labor Relations Authority

• By December 2019, Federal agencies will manage all permanent records in an electronic 

format, and must develop plans to do so by December 2013.

Management has made progress addressing the challenge of complying with the Directive as 

mentioned in our report dated November 2, 2016. Throughout 2017, the FLRA continued its 

efforts to use technology to enhance operational efficiencies by automating, paper-based 

manually intensive processes. This includes developing a case management system 

infrastructure supporting electronic files that will properly handle agency case files and records. 

This is an excellent step forward using technology to enhance operational efficiencies. 

However, system automation is one part of a comprehensive approach to address the challenge 

of managing permanent records. Industry practices dictate that along with implementing new 

technology, it is imperative that a complete oversight or governance process be established to 

include documenting agency policies, procedures and processes that address all hard copy and 

electronic records proper handling. Although new automated systems offer increased 

capabilities, they also present new internal (management) control challenges. The FLRA needs 

to ensure various roles (e.g., system administrator); related authorities and capabilities are 

properly assigned, documented, managed and monitored. Such written documentation should 

be maintained as this need becomes increasingly critical as additional functionality and 

enhancements are added to the system. Further, although, certain types of records do not have 

legal retention requirements; the policies, processes and procedures should, clearly and 

specifically, instruct staff on the proper handling. Further, management should periodically 

verify that such policies are being followed. 

Progress in Addressing the Challenge

The FLRA met the first requirement of OMB Directive M-12-18, managing both permanent and 

temporary email records in an accessible electronic format. The Agency is currently 

maintaining all email records in an electronic format. The FLRA has made steady progress 

towards accomplishing its multi-year plan goal to implement full electronic file – consistent 

OMB requirements – in 2019. Accomplishments include: implementation of enhancements to 

the eFiling system that are on schedule to be completed this FY; work on a new task order for 

transitioning the agency’s electronic case management system is underway; and the agency’s 

successful transition to a new, cloud based Document Management System during this FY. All 

three are essential components for fully implementing electronic FLRA case files. 

The FLRA recognizes that a necessary component of the implementation of electronic case files 

is the development of policies, processes, and procedures, which provide staff with clear 

guidance for handling records and ensure compliance with agency requirements. By leveraging 

the Small Agency Council network, the FLRA partnered with the Pension Benefit Guaranty 

Corporation to conduct a comprehensive assessment and roadmap for improving the FLRA’s
83

 Office of Inspector General

Federal Labor Relations Authority

records management program. This is the first step to ensuring that the appropriate oversight 

and governance processes are established, including reviewing/updating agency policies, 

procedures and processes that address the proper handling of all hard copy and electronic 

records. Further, this effort will ensure various roles (e.g., system administrator) and related 

authorities and capabilities are properly assigned, documented, managed and monitored, and 

that written documentation is kept up-to-date.

What Needs to Be Done

Since the Directive’s release, there has been a wealth of additional NARA bulletins and OMB 

memorandums. Although the FLRA has until 2019 to comply with the evolving requirements, 

FLRA management should continue working its multi-year agenda to integrate its E-filing and 

other automated systems. 

Key OIG Resources

• President Memorandum, Managing Government Records, signed on November 28, 2011

• OMB Directive M-12-18, Managing Government Records Directive, issued August 24, 

2012

• NARA Bulletin 2013-02, Guidance on a New Approach to Managing Email Records, issued 

August 29, 2013

• OMB/NARA Memorandum M-14-16, which included NARA Bulletin 2014-06, Guidance 

on Managing Email issued September 14, 2014

Closure of Open Recommendations Outstanding for More Than 1 Year

The Inspector General Act of 1978, as amended, requires explanations for all audit reports with 

recommendations open for more than one year. These outstanding recommendations are also 

reported to the FLRA and Congress in the OIG’s Semiannual Reports to Congress. We first 

reported the closure of open recommendations outstanding for more than one year as a 

management challenge in 2016. Last year we reported that FLRA had eight open 

recommendations outstanding for more than 1 year. In our September 30, 2017 OIG 

Semiannual Report, the FLRA closed one of the eight open recommendations outstanding for 

more than

1 year. 

The table below shows a summary of reports with corrective actions outstanding for more than 

1 year and whether those recommendations were open or closed. 
84

 Office of Inspector General

Federal Labor Relations Authority

Reports with Corrective Actions Outstanding for more than 1 year

2

Report Title Report

Number

Issue

Date

 Number of 

Recommendations

Closed Open

Management Letter for Fiscal 

Year 2011 Audit of the 

Federal Labor Relations 

Authority Financial 

Statements

AR-12-02 12/11 3 2 1

Evaluation of the Federal 

Labor Relations Authority’s 

Compliance with the Federal 

Information Security 

Management Act FY 2014

ER-15-01 11/14 3 1 2

Evaluation of the Federal 

Labor Relations Authority 

Compliance with the Federal 

Information Security 

Management Act Fiscal Year 

2015

ER-16-01 11/15 5 2 3

Management Letter for Fiscal 

Year 2015 Audit of the 

Federal Labor Relations 

Authority

AR-16-02 12/15 1 0 1

At this time, FLRA has seven recommendations outstanding for more than 1 year, with four 

dating back to Calendar Year (CY) 2015, two from CY 2014 and one from CY 2011. Of the 

seven recommendations, five were reported in the FISMA audits. Three of the FISMA 

recommendations are from the FY 2015 review and two from the FY 2014 review.

Although the FLRA obtained an unmodified (clean) opinion on all financial statements in FY 

2016, the independent auditor’s FY 2016 Management Letter reported one new 

recommendation and two recommendations outstanding for more than 1 year. Of the 

outstanding recommendations, the one from 2011 persisted in FY 2017 and the other was 

included in the FY 2015 Management Letter. 

It is critical that the FLRA continue its progress in resolving open findings that are outstanding 

from prior audits, and design appropriate corrective action plans to implement procedures and 

 2 Only the recommendations that have been open for 12 months are reflected in the accompanying list of open 

recommendations.
85

 Office of Inspector General

Federal Labor Relations Authority

address deficiencies, where appropriate. FLRA management should also continuously monitor 

these plans to ensure timely audit resolution.

Progress in Addressing the Challenge

In response to our FY 2017 management challenges, the FLRA indicated having “clear and 

comprehensive action plans in place to address all open recommendations.” FLRA explained 

that the action plans, coupled with continuous monitoring of its efforts, will result in closing all 

open recommendations in FY 2017.

What Needs to Be Done

We acknowledge that the FLRA continues to initiate actions to address outstanding open 

recommendations. However, our audit work from the past several years continues to highlight 

that the FLRA faces challenges in addressing outstanding weaknesses. The impact of FLRA 

action plans will be assessed during the FY 2017 Financial Statement and FISMA audits.

Key OIG Resources

• OIG Report Management Letter for Fiscal Year 2016 Audit of the Federal Labor Relations 

Authority Financial Statements (AR-17-02), November 16, 2016

• OIG Report Management Letter for Fiscal Year 2015 Audit of the Federal Labor Relations 

Authority (AR-16-02), December 14, 2015

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9, 

2015 

• OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2014 (ER-15-01), November 14, 

2014 

• OIG Report, Management Letter for Fiscal Year 2011 Audit of the Federal Labor Relations 

Authority Financial Statements (AR-12-02) December 28, 2011 
86

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 significant progress in addressing and resolving deficiencies 

and challenges identified by the Inspector General. The remaining challenges identified by the 

Inspector General include IT security, proper handling of records, and closure of open 

recommendations outstanding for more than one year.

With respect to these ongoing challenges, management has made, and continues to make, 

progress towards their resolution with the input of agency leadership, management, and 

employees. 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 (FISMA) compliant. There are specific agency plans of action in place to ensure such 

compliance. And, in FY 2017, the FLRA has been successful at correcting 4 of the 5 identified 

vulnerabilities by adhering to those plans. In addition, in FY 2017, the agency resolved the one 

remaining finding identified in the Privacy and Data Protection review.

The FLRA is proud to report that it has no new IT-security findings in FY 2017, for the second 

consecutive year. The agency views this as a significant accomplishment and a strong indicator 

of the FLRA’s commitment to addressing IT-security matters in a timely and comprehensive 

manner. The FLRA also had no new findings from its FY 2017 Privacy and Data Protection 

review, further indicating sound processes throughout the Agency. And the FLRA is pleased 

that the planning efforts and actions taken over the last year have made a significant impact on 

the progress towards successfully accomplishing agency goals. The agency remains vigilant in 

maintaining a control environment that monitors and mitigates risks, threats, and vulnerabilities.

As for records management, the FLRA has continued its efforts to use technology to enhance 

operational efficiencies by implementing systems to automate paper-based, manually intensive 

processes. This includes the development of an electronic case-management system (CMS) 

infrastructure that supports electronic files and that will further agency efforts to properly 

handle agency case files and records. The FLRA has made steady progress in accomplishing its 

multi-year plan, with a goal of implementing fully electronic records – consistent with OMB 

requirements – in 2019. In FY 2017, these accomplishments include: enhancements to the 

agency-wide eFiling system; work on transitioning the Agency case management system is 

underway; and transitioned to a new Document Management System. All three of these efforts 

are essential components for implementing fully electronic case files throughout the agency by 

FY 2019. The FLRA recognizes that a necessary component of the implementation of 

electronic case files is the development of policies, processes, and procedures that provide staff 

with clear guidance for handling records and ensuring compliance with agency requirements.
87

With respect to the timely closure of audit-report recommendations, the FLRA is pleased to 

report that in FY 2017, it made significant progress in closing audit recommendations 

outstanding for more than one year. Most significantly, with respect to IT Security, the FLRA 

closed four of the five open recommendations from FY 2014 – leaving only one finding 

remaining. In addition, the FLRA closed its only remaining Privacy Program audit finding from 

FY 2014.

The FLRA has clear and comprehensive corrective action plans in place to address and close its 

remaining recommendations that are outstanding for more than one year, as well as all other 

open audit recommendations in FY 2018. These plans include, among other things, monthly 

audit recommendation review meetings with the FLRA Executive Director and all responsible 

managers and staff to track and monitor progress on resolving open findings. We are confident 

that implementation of management’s corrective action plans, coupled with close continuous 

monitoring of its efforts, will ensure that open audit recommendations will be timely closed by 

the FLRA in FY 2018 and beyond. 

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 

OMB Circular A-123, the agency has also determined that it would not be cost-effective to 

establish a recovery-audit program for its programs that expend more than $1 million. 

Recoveries are not expected to be greater than the costs incurred to identify any overpayments.
FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, N.W.

Washington, DC 20424

www.flra.gov

WWW.FLRA.GOV