DDRAF
THE FLRA OFFICE OF THE GENERAL COUNSEL 

(OGC) REGIONAL OFFICES 

Atlanta 

Regional 

Office

Boston 

Regional 

Office

Chicago 

Regional 

Office

Dallas 

Regional 

Office

Denver 

Regional 

Office

Washington 

DC Regional 

Office

San Francisco 

Regional 

Office
About This Report i 

ABOUT THIS REPORT 

The Federal Labor Relations Authority (FLRA) FY2009 Performance and Accountability Report 

discusses the history and structure of the agency and the results of the agency’s program and financial 

performance that satisfy the reporting requirements contained in the following legislation: 

Federal Managers’ Financial Integrity Act of 1982 

Chief Financial Officers (CFO) Act of 1990 

Government Performance and Results Act (GPRA) of 1993 

Government Management Reform Act (GMRA) of 1994 

Reports Consolidation Act of 2000 

Accountability of Tax Dollars Act of 2002 

Improper Payments Act of 2002 

The purpose of this report is to demonstrate to the Congress, the President and the public the 

FLRA’s commitment to its mission and accountability over the resources entrusted to it. This 

report is available at www.flra.gov/public_affairs .
ii Performance and Accountability Report – Fiscal Year 2009

HOW THIS REPORT IS ORGANIZED 

 Message from the Chairman 

The Chairman’s message provides Chairman Carol Waller Pope’s comments on efforts to 

revitalize the agency and the commitment of FLRA leadership and staff to the agency’s 

mission and goals to provide leadership in Federal sector labor-management relations. 

 Management’s Discussion and Analysis 

The Management’s Discussion and Analysis (MD&A) Section provides an overview of the 

FLRA’s mission and organization, FLRA’s performance, challenges affecting the agency’s 

mission, and financial highlights. 

 Financial Section 

The Financial Section provides the detailed financial information on FLRA’s financial 

performance, including the independent auditor’s report and audited financial statements. 

 

 Appendices

Appendix A provides a list of acronyms contained in the PAR. Appendix B provides FLRA 

contact information and acknowledgements. 
FLRA At-A-Glance iii

THE FLRA AT-A-GLANCE 

History 

 The FLRA is an independent administrative federal agency created when Congress enacted 

and the President signed into law, Title VII of the Civil Service Reform Act of 1978, the 

Federal Service Labor-Management Relations Statute (the Statute). The Statute allows 

certain non-Postal federal employees to organize, bargain collectively, and to participate 

through labor organizations of their choice in decisions that affect them. 

Statute Requirements 

 The Statute defines and lists the rights of employees, labor organizations, and agencies so as 

to reflect the public interest demand for the highest standards of employee performance and 

the efficient accomplishment of Government operations. Specifically, the Statute requires 

that its provisions "should be interpreted in a manner consistent with the requirement of an 

effective and efficient Government." 5 U.S.C. §7101(b). 

About the FLRA 

 The FLRA does not initiate cases; all proceedings before the FLRA originate from filings by

Federal agencies, Federal employees or Federal labor organizations. 

 

 The five primary statutory responsibilities of FLRA are: 

 Determining the appropriateness of units for labor organization representation 

 Resolving complaints of unfair labor practices 

 Adjudicating exceptions to arbitrator’s awards 

 Adjudicating legal issues relating to duty to bargain (e.g. negotiability) 

 Resolving negotiation impasses 

 Decisions of the Authority are published and are available on the FLRA’s website 

(www.flra.gov). Following issuance of a final Authority decision or order, a party can move 

for reconsideration if it can establish extraordinary circumstances. Any party aggrieved by a 

final order of the Authority, with some exceptions, may institute an action for judicial review 

within 60 days after the order issues. 
iv Performance and Accountability Report – Fiscal Year 2009

MESSAGE FROM THE CHAIRMAN 

I have had the good fortune to work with the Federal Labor Relations 

Authority (FLRA) for nearly 30 years. And in 2009, I had the honor of 

being designated as the FLRA Chairman (Acting on February 19 and 

Chairman on March 25) -- a position that allowed me the opportunity to 

meaningfully examine and take action to address the human capital, 

program performance and financial management needs of the FLRA. 

When I first joined the FLRA in 1980, it had considerable strength; now 

after many months of rebuilding, the FLRA stands at the threshold of 

again fulfilling its leadership position in Federal labor-management 

relations. As the agency continues on its path of rebuilding, I believe the 

FLRA will emerge as a great success story in public administration. 

The FLRA administers the labor-management relations program for 1.6 million non-Postal 

Federal employees worldwide, approximately 1.1 million of whom are represented in 2,200 

bargaining units. It is charged with providing leadership in establishing policies and guidance 

related to Federal sector labor-management relations and with resolving disputes and ensuring 

compliance with the Federal Service Labor-Management Relations Statute. With the 

commitment of agency leadership and staff, the FLRA has made significant progress over the 

past year, and I am pleased to present the FLRA’s Performance and Accountability Report for 

Fiscal Year 2009. It reports the results of our strong improvement in program performance and 

successful financial activities over the past year in support of our mission. 

In FY2009, the FLRA made significant progress in reducing its case backlog and re-engaging 

with its customers -- Federal employees, the unions that represent them, and Federal agencies. In 

FY2009, the FLRA began taking steps to rebuild the agency’s workforce and improve 

performance in terms of timely case processing as well as training, outreach, and offers of 

alternative dispute resolution (ADR) services to assist parties in their labor-management 

relationships. To begin, near the end of FY2009, the Senate confirmed Ernest DuBester and 

Julia Akins Clark as FLRA Member and General Counsel, respectively. These appointments 

resulted in a full complement of Authority Members for the first time in nearly 2 years. The 

appointment of General Counsel Clark also ended an 18-month period during which the General 

Counsel position was vacant and, as a result, the Office of the General Counsel was legally 

prevented from taking certain actions, including issuing complaints. 

The FLRA began to engage its customers by asking them to identify current trends and 

challenges through ―Engage the FLRA‖ -- a component of its vastly improved new agency 

website where FLRA customers are asked whether they: 

Have ideas about how the FLRA can better serve the labor-management relations 

community generally? 

Have ideas about how the FLRA can better serve you, your agency, exclusive 

representative or labor-management relationship? and 

Have any ideas about how the FLRA can work better and smarter? 

In furtherance of its commitment to improving agency performance, the Authority issued 215 

merits decisions -- nearly double the number of decisions issued in the last two years combined 
FLRA At-A-Glance v

and more than the Authority has issued in any year since FY2003. Seventy-eight percent of 

those cases were among the Authority’s oldest cases, including the oldest case in the Authority’s 

inventory. Other strategies employed in FY2009 to improve agency performance include early 

identification of incoming cases that are susceptible to summary disposition and use of 

innovative decision formats. 

The Office of the General Counsel resolved more than 3,500 unfair labor practice (ULP) 

charges and approximately 250 representation petitions, and began resolving and issuing 

complaints in the more than 300 ULP cases that were awaiting the arrival of a General Counsel. 

The Federal Services Impasses Panel resolved close to 100 bargaining impasses. In addition, the 

FLRA provided nearly 100 training sessions nation-wide, encompassing more than 2500 

participants. In this connection, the FLRA is aggressively pursuing opportunities to provide 

training to customers both to assist them in avoiding disputes and to improve the quality of 

filings, which in turn assists agency components in more timely resolving disputes. Further, the 

FLRA’s Collaboration and Alternative Dispute Resolution Office (CADRO) conducted 15 

interventions in FY2009, reaching a full resolution in 13 of those cases. 

These accomplishments are just a few examples of the FLRA’s progress and renewed 

commitment to serving its customers. I pledge to work hard in leading and continuing these 

efforts in FY2010 not only to restore confidence in the FLRA, but also to make it more effective 

and responsive to the needs of the labor-management relations community. 

A critical component of our improved success is the FLRA’s investment in its human capital. 

To meet our goals and address challenges, the FLRA has begun to recruit and hire attorneys and 

other professionals who possess strong technical skills and experience. In order to retain our 

employees, we have begun an intensive training program and are developing a training plan for 

each employee. The agency leadership has focused on employee morale, reinstituting a human 

capital goal focused on improving employee morale through communication and collaboration, 

and raising the FLRA’s standing within Federal Human Capital Survey. The agency also 

established a Tech Council, consisting of representatives from management, employees and the 

Union of Authority Employees (UAE) -- the union that represents certain agency employees -- in 

support of IT planning and strategic direction. Communication between management and the 

UAE is open and collaborative. 

Essential to FLRA’s success in gaining organizational excellence is sound financial 

management. The FY2009 independent financial audit resulted in an unqualified opinion, the 

highest audit opinion available. The independent auditors did not identify any material 

weaknesses or instances of non-compliance with laws and regulations. In the Management 

Assurances section of this report, I provide my assurances that the FLRA has no material 

weaknesses. In 2010, we will be initiating an OMB Circular A-123 assessment process which 

will fulfill the minimum requirements of Appendix A. I am also pleased to report that the 

FLRA’s financial and performance data presented in this report are complete, reliable, and 

accurate in keeping with the guidance from the Office of Management and Budget. 

In accordance with the Reports Consolidation Act of 2000, the Inspector General (IG) 

identified key management and performance challenges the IG believes are facing the agency. 

As discussed herein, the FLRA has made significant progress addressing these challenges, and 

moving forward we will continue our efforts to tackle these matters proactively. 
vi Performance and Accountability Report – Fiscal Year 2009

I look forward to working with agency staff, my fellow Authority Members, the General 

Counsel, the Federal Service Impasses Panel Chairman and Members, as well as FLRA 

stakeholders to continue providing high-quality labor-management dispute resolution service to 

our customers and the American public. We will report our progress and subsequent actions in 

future Performance and Accountability Reports. 

Carol Waller Pope 

Chairman 

November 13, 2009 
Message from the Chairman vii 
viii Performance and Accountability Report – Fiscal Year 2009

TABLE OF CONTENTS 

About This Report ...................................................................................................................... i 

How this Report is Organized ................................................................................................... ii

FLRA At-A-Glance ................................................................................................................... iii

Message from the Chairman .................................................................................................... iv

MANAGEMENT’S DISCUSSION AND ANALYSIS ...................................... 1 

Mission and Organization ............................................................................................. 3 

Mission ............................................................................................................................. 3 

Our Organization ............................................................................................................. 3 

Our Workforce ................................................................................................................ 5 

Performance Goals and Results .................................................................................... 6 

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

Our Strategy ..................................................................................................................... 6 

Verification and Validation of Performance Data ........................................................... 9 

Performance Summary..................................................................................................... 9 

Performance Goals Analysis .......................................................................................... 13 

Agency Mission Challenges ......................................................................................... 27 

Management Assurances and Compliance with Laws ............................................. 28 

Federal Managers’ Financial Integrity Act (FMFIA) .................................................... 28 

Chairman’s FMFIA Statement of Assurance ................................................................. 28 

Federal Financial Management Improvement Act (FFMIA)......................................... 29 

Federal Information Security Management Act (FISMA)............................................. 29 

Prompt Payment Act ...................................................................................................... 30 

Financial Discussion and Analysis .............................................................................. 31 

Overview of Financial Position ..................................................................................... 31 

Results of Operations ..................................................................................................... 33 

Limitation of Financial Statement ................................................................................. 34 

FINANCIAL SECTION .....................................................................................35

Message from the Executive Director ........................................................................ 36 

Report of Independent Auditors................................................................................. 37 

Principal Financial Statements ................................................................................... 40 

Notes to Principal Financial Statements .................................................................... 44 
Table of Contents ix

OTHER ACCOMPANYING INFORMATION ..............................................57

Management and Performance Challenges Identified by the Inspector General .. 59 

Summary of Financial Statement Audit and Management Assurances ................. 61 

APPENDICES .....................................................................................................63

A. Glossary of Acronyms ............................................................................................. 65 

Management’s Discussion and Analysis 1 

MANAGEMENT’S DISCUSSION AND 

ANALYSIS 

Management’s Discussion and Analysis 3

MISSION AND ORGANIZATION OF THE FEDERAL 

LABOR RELATIONS AUTHORITY (FLRA) 

MISSION 

The mission of the FLRA is to carry out the five primary statutory 

responsibilities as efficiently as possible and in a matter that gives 

full effect to the rights afforded employees and agencies under the 

Federal Service Labor-Management Relations Statute (the Statute). 

Under the Statute, the primary responsibilities (type of cases) of the 

FLRA include: 

 Determining the appropriateness of units for labor 

organization representation (REP); 

 Adjudicating exceptions to arbitrator’s awards 

(ARB); 

 Resolving complaints of unfair labor practices (ULP); 

 Resolving bargaining impasses; and 

 Resolving issues relating to the duty to bargain (NEG). 

OUR ORGANIZATION

The FLRA conducts it case-processing activities through: 

 The Office of the General Counsel (OGC) of the Authority – led by the General 

Counsel, who is appointed by the President and confirmed by the Senate -- which, 

through regional offices, is the entry point for unfair labor practice (ULP) cases filed 

with the FLRA. The OGC also processes Representation (REP) petitions filed with the 

FLRA and decides appeals of Regional Directors’ decisions.

The Authority (Decisional Component) is a quasi-judicial body with three full-time 

Members appointed by the President and confirmed by the Senate that resolves appeals 

in ULP and REP cases and adjudicates exceptions to ARB awards and NEG appeals.

The Office of Administrative Law Judges (OALJ), in which judges appointed by the 

Three Member Authority hear and prepare recommended decisions in cases involving 

alleged unfair labor practices and decisions involving applications for attorney fees 

under the Back Pay Act or the Equal Access to Justice Act. 

The Federal Service Impasses Panel (FSIP), which consists of seven part-time members 

appointed by the President (without Senate confirmation), resolves impasses between 

federal agencies and unions representing federal employees under the Federal Service 

"A well balanced labor 

relations program will 

increase the efficiency of the 

Government by providing for 

meaningful participation of 

employees in the conduct of 

business in general and the 

conditions of their 

employment." Rep. William 

Clay (123 Cong. Rec. E333, 

January 26, 1977)
4 Performance and Accountability Report – Fiscal Year 2009

Labor-Management Relations Statute and the Federal Employees Flexible and 

Compressed Work Schedules Act. 

The FLRA also provides full staff support to two other entities: the Foreign Service Impasse 

Disputes Panel and the Foreign Service labor Relations Board. 

The Chairman as the Agency head serves as FLRA’s Chief Executive and Administrative Officer 

and is responsible for agency-wide administrative functions, such as purchasing, human 

resources, budgeting and finance, information technology, leasing of office space and agencywide performance management. The Chairman also chairs the Foreign Service Labor Relations 

Board. 

To carry out the Chairman’s statutory responsibilities, the Office of the Chairman oversees the 

following offices: 

The Office of the Executive Director provides agency-wide operational support 

through the following divisions: Budget and Finance, Administrative Services 

and Information Resources Management. 

The Office of Policy & Performance Management provides agency-wide strategic 

policy and planning support and counsel, and oversees the Human Resources 

division. 

The Office of the Solicitor represents the agency in court proceedings before all 

United States Courts and provides the Chairman legal advice on various legal 

issues. 

FOREIGN

SERVICE

LABOR

RELATIONS

BOARD

FOREIGN

SERVICE

IMPASSE

DISPUTES PANEL

AUTHORITY

MEMBERS

(2)

FEDERAL

SERVICE

IMPASSES

PANEL

GENERAL

COUNSEL

CHAIRMAN’S

CHIEF 

COUNSEL

& STAFF

CHIEF COUNSELS

(ONE TO EACH

MEMBER)

& STAFF COLLABORATION

AND

ALTERNATIVE

DISPUTE

RESOLUTION

REGIONAL

OFFICES

(7)

OFFICE OF THE

EXECUTIVE

DIRECTOR

OFFICE OF THE

SOLICITOR

OFFICE OF THE

ADMINISTRATIVE

LAW JUDGES

OFFICE OF

POLICY AND

PERFORMANCE

MANAGEMENT

OFFICE OF THE

INSPECTOR

GENERAL

OFFICE OF THE

DIRECTOR OF

EEO COMPLAINTS

CASE INTAKE

AND

PUBLICATION

HUMAN

RESOURCES

DIVISION

ADMINISTRATIVE

SERVICES

DIVISION

INFORMATION

RESOURCES

MANAGEMENT

DIVISION

BUDGET AND

FINANCE

DIVISION

Chief 

Executive 

Officer and 

Authority 

Chairman
Management’s Discussion and Analysis 5

The FLRA ALJs are under the general supervision of the Authority. The immediate staffs of the 

Authority Members, the General Counsel of the Authority, and FSIP are under the general 

supervision of their respective Members or component heads. 

The Authority, General Counsel and FSIP maintain their headquarters in Washington, D.C. The 

FLRA Office of the General Counsel also maintains a network of seven regional offices (Atlanta, 

Boston, Chicago, Dallas, Denver, San Francisco, and Washington, D.C.) and one satellite office 

(Diamond Bar, CA) as shown on the map on the inside front cover. 

OUR WORKFORCE

The FLRA’s workforce is its greatest asset. At the end of fiscal year (FY) 2009, the FLRA 

workforce was composed of 123 employees: 60 attorneys, 1 law clerk, 3 administrative law 

judges, 14 labor relations specialists, 9 senior managers, 32 administrative staff and 4 

presidential appointments.

 

The FLRA has placed a priority on improving employee morale. In FY2009, the FLRA focused 

its attention on improving all aspects of employee work life, including: restoring decision and 

budget authority to career managers; instituting regular presidential and career management 

meetings; holding the first allemployee town hall meeting in 30 years; reestablishing a 

collaborative relationship with Union of Authority Employees (UAE); and increasing internal 

communication between and among employees at all levels. 
6 Performance and Accountability Report – Fiscal Year 2009

PERFORMANCE GOALS AND RESULTS 

FLRA STRATEGIC AND PERFORMANCE PLANNING FRAMEWORK 

In FY2009, the FLRA performance planning framework is based on the FLRA’s FY 2004-2009 

Strategic Plan, available at http://www.flra.gov/public_affairs, and is supported by the FLRA’s 

FY2009 Performance Plan, available at http://www.flra.gov/public_affairs. The strategic plan 

consists of a single goal: To resolved disputes impartially and promptly. 

To establish meaningful measures to assess efforts among FLRA components in case processing, 

performance objectives were established based upon the type of case involved (ULP, REP, ARB, 

NEG, or Bargaining Impasse). For each objective, case resolution output targets were 

established for each component. Categorizing cases in this manner enables the FLRA to focus 

on the agency-wide performance goals while concurrently establishing specific component 

performance standards. Additionally, the responsible senior executives are listed in the 

Performance Plan for each objective and performance goal, thereby providing a direct link 

between senior executive performance and attainment of agency outcomes. Management and 

support activities are incorporated within the appropriate objective thereby providing the means 

to align those activities to performance in processing cases. 

OUR STRATEGY 

In the recent past, the FLRA’s performance, along with employee morale, suffered. This, in 

turn, has affected the FLRA’s customers, in terms of both timely case processing as well as the 

availability of training, outreach, and alternative dispute resolution (ADR) services to assist 

parties in their labor-management relationships. To remedy this situation, the FLRA adopted the 

strategies below to better address the needs of the labor-management community and to move 

the FLRA in the direction that enables it to work smarter and more effectively in 2009 and 

beyond. FLRA adopted and fulfilled the strategies set forth in FY2009 as reflected in the 

performance results for Goals 2 through 6 in the Performance Results subsection of this report: 

Establishing and implementing a plan to address the FLRA’s case backlog, which, in 

addition to reducing the backlog of overage cases and improving the timeliness of newlyfiled cases, will have a positive impact on customer satisfaction and employee morale. 

Increasing the number of attorneys staffing case resolution functions in the Authority 

Member Offices and the OGC. In FY2009, the Authority hired attorneys for Member 

staffs and in its Regional Offices. 

Filling key positions responsible for agency-wide support services, including the Budget 

and Finance Director and the Chief Information Officer. 

Changing the organizational structure of the Member Offices, including the caseresolution part of the Chairman’s Office, so that attorneys are now assigned to individual 

Members. 
Management’s Discussion and Analysis 7

Contacting parties in its oldest cases to determine whether a formal decision was still 

warranted or whether either withdrawal of a case and/or use of FLRA-provided 

alternative dispute resolution techniques were appropriate. 

Modifying the process for reviewing cases to reinstitute a ―screening team‖ with the 

function to identify cases susceptible to expedited processing before those cases are 

formally assigned to the Chairman and Members for adjudication. 

Aggressively pursuing opportunities to provide training to customers and staff, which 

provides dividends not only in terms of labor-management disputes that are avoided 

altogether but also in terms of improved quality of the presentations by filers, which 

assists the components in more timely resolving disputes. 

Increasing emphasis on FLRA-provided alternative dispute resolution services to assist 

parties in resolving disputes without the need for formal decision-making. 

Developing an agency telework policy to recognize the cost-reduction and productivity 

benefits of telework. 

Strategic and Performance Goals and Objectives 

STRATEGIC GOAL: TO RESOLVE DISPUTES IMPARTIALLY AND PROMPTLY

Performance Goals Objectives

#1 Provide timely adjudication of cases Enhance customer ease of filing cases and tracking case status 

through Web-base case filing system

#2 Provide timely review and disposition

 of Unfair Labor Practice (ULP) cases. Remedy all ULP cases in a timely manner.

3 Provide timely review and disposition

 of Representation (REP) cases. Remedy all REP cases in a timely manner.

#4 Provide timely review and disposition

 of Arbitration (ARB) cases. Remedy all ARB cases in a timely manner.

#5 Provide timely review and disposition

 of Negotiability (NEG) cases.

Remedy all NEG cases in a timely manner.

#6 Provide timely review and disposition

 of Bargaining Impasses (FSIP) cases. Remedy all FSIP cases in a timely manner.
8 Performance and Accountability Report – Fiscal Year 2009

PERFORMANCE MEASURES BY PERFORMANCE GOAL

Goal #1

Measures

Goal #2

Measures

Goal #3

Measures

Goal #4

Measures

Goal #5

Measures

Goal #6

Measures

30% of 

customers file 

on-line

All ULP charges will result in the 

issuance of a complaint, withdrawal or 

settlement of the charge within 120 

days of the date filed.

Issue Decision & Order 

(D&O) or approve 

withdrawal of petition 

within 90 daysof filing of 

petition with the OGC, 

where no election or 

hearing is necessary.

Upon 

completion of 

filing 

requirements 

pursuant to 

FLRA 

regulations, all 

ARB cases will 

be assigned to 

an Authority 

Member staff 

within 5 work 

days or be 

otherwise 

disposed.

Upon completion of all 

filing requirements 

pursuant to FLRA 

regulations, all NEG 

cases will be assigned to 

an Authority Member 

staff within 5 work days 

or be otherwise 

disposed.

Upon completion of filing 

requirements pursuant to FSIP 

regulations, and FMCS actions, 

the Panel will assert jurisdiction 

or decline to assert jurisdiction 

within 90 days.

80% of 

customers who 

file on-line 

track the status 

of a case online

Issue 80% of sustained appeals within 

60 days of receipt of the appeal of the 

Regional Director’s dismissal of the 

charge.

Conduct election within 90 

days from the date of filing 

of petition with the OGC, 

where no hearing is 

necessary

Within 90 days 

of assignment 

to an Authority 

member staff, a 

final decision 

will issue

Within 100 days of 

assignment to an 

Authority member staff, 

a final NEG decision 

will issue.

Cases which the Panel declines 

to assert jurisdiction or which a 

party(ies) requests to withdraw, 

prior to a jurisdictional 

determination, will close within 

20 days of such 

determination/request to 

withdraw.

All ULP complaints will receive a 

hearing within 90 days or be 

otherwise settled.

Issue D&O in all REP 

cases in 180 days, where a 

hearing is necessary

The substantive case record will 

close within 120 days once the 

Panel asserts jurisdiction over 

the parties’ request for 

assistance.

Within 60 days of close of hearing, 

the Office of Administrative Law 

Judges will issue a decision

Upon completion of filing 

requirements pursuant to 

FLRA regulations, all REP 

cases will be assigned to an 

Authority Member staff 

within 2 work days or be 

otherwise disposed.

Cases which the Panel resolves 

through a D&O, or otherwise, 

will be closed within 30 days of 

the Panel’s decision.

Upon completion of filing 

requirements pursuant to FLRA 

regulations, all ULP cases will be 

assigned to an Authority Member staff 

within 5 working days or be otherwise 

disposed.

Within 50 days of 

assignment of a REP case 

to an Authority member 

staff, a decision whether to 

grant review will issue.

Within 90 days of assignment to an 

Authority member staff, a final ULP 

decision will be issued.

The FLRA is undergoing another update of its Strategic Plan in FY2009 for the fiscal years 

2010-2014. This will afford the FLRA the opportunity to further improve its performance 

framework and outcome performance measures. 
Management’s Discussion and Analysis 9

VERIFICATION AND VALIDATION OF PERFORMANCE DATA 

The agency-wide Case Tracking System (CTS) is used by each component to track and manage 

the FLRA case workload. Each component enters information on all cases into the CTS and is 

accountable for controlling all ULP, REP, ARB, NEG and Bargaining Impasse case workload 

data entered into the system. The CTS is maintained in an Oracle database from which the 

performance reports are extracted by each component. 

PERFORMANCE SUMMARY 

FLRA’s one strategic goal -- to resolve disputes impartially and promptly -- is supported by the 

six performance goals presented in the pages that follow. Since a case may be handled by more 

than one component, the performance goals have been categorized by both case type and 

component action. This reflects the agency’s commitment to establish measures that will enable 

the FLRA to track and align costs to specific categories of cases, including planning for staffing 

and training needs in future years. 

The following pages present detailed information on the results of FLRA’s performance 

encompassing the agency’s twenty-one performance measures within the six performance goals. 

The performance tables include the actual results against the targets set by the agency. The chart 

below summarizes performance measure results. 

 
10 Performance and Accountability Report – Fiscal Year 2009

PERFORMANCE MEASURE SUMMARY TABLE 

The following table summarizes the FY2009 actual performance results compared to the FY2009 

targets. Those results designated as ―Not Applicable‖ (N/A) relate to those measures where 

circumstances beyond FLRA’s control precluded accomplishment. 

Strategic Goal: To Resolve Disputes Impartially and Promptly 

Performance Outcome 

Measures

(FY2009 Target)

Responsible Executive FY 2009

Target

FY 2009

Actual Result

Performance Goal 1: Provide timely adjudication of cases.

Objective 1: Enhance customer ease of filing cases and tracking case status through Web-base case 

filing system.

A. Measure 1.1: 30% of 

customers file on-line.

Office of Policy & Performance

Management

Office of Case Adjudication

N/A N/A N/A

B. Measure 1.2: 80% of 

customers who filed on-line 

track the status of a case on-line.

Office of Policy & Performance

Management

Office of Case Adjudication

N/A N/A N/A

Performance Goal 2: Provide timely review and disposition of Unfair Labor Practice (ULP) cases.

Objective 2: Remedy all ULP cases in a timely manner.

A. Measure 2.1: All ULP 

charges will result in the 

issuance of a complaint, 

withdrawal, or settlement of the 

charge within 120 days from the 

date filed.

Office of the General Counsel of 

the Authority

Deputy General Counsel

Regional Directors 70% 71% Met

B. Measure 2.2: Issue 80% of 

sustained appeals within 60 days 

of receipt of the appeal of the 

Regional Director's dismissal of 

the charge.

Office of the General Counsel of 

the Authority

0% 2% N/A

C. Measure 2.3: All ULP 

complaints will receive a hearing 

within 90 days or be otherwise 

settled.

Office of the General Counsel of 

the Authority

Office of Administrative Law 

Judges

90% N/A N/A

D. Measure 2.4: Within 60 

days of close of hearing, the 

Office of Administrative Law 

Judges will issue a decision.

Office of Administrative Law 

Judges 50% N/A N/A

E. Measure 2.5: Upon 

completion of filing 

requirements pursuant to FLRA 

regulations, all ULP cases will 

be assigned to an Authority

Member staff within 5 working 

days or be otherwise disposed.

Authority

Office of Case Control

75% 100% Met
Management’s Discussion and Analysis 11

Performance Outcome 

Measures

(FY2009 Target)

Responsible Executive FY 2009

Target

FY 2009

Actual Result

F. Measure 2.6: Within 90 

days of assignment to an 

Authority Member staff, a final 

ULP decision will issue.

Authority

Chief Counsels 0% 5% Met

Performance Goal 3: Provide timely review and disposition of Representation (REP) cases.

Objective 3: Remedy all REP cases in a timely manner.

A. Measure 3.1: Issue Decision

& Order (D&O) or approve 

withdrawal of petition within 90 

days of filing of petition with the 

OGC, where no election or 

hearing is necessary.

Office of the General Counsel

Deputy General Counsel

Regional Directors 65% 60% Not Met

B. Measure 3.2: Conduct 

election within 90 days from the 

date of filing of petition with the 

OGC, where no hearing is 

necessary.

Office of the General Counsel

Deputy General Counsel

Regional Directors 55% 61% Met

C. Measure 3.3: Issue D&O in 

all REP cases in 180 days, where 

a hearing is necessary.

Office of the General Counsel

Deputy General Counsel

Regional Directors

25% 10% Not Met

D. Measure 3.4: Upon 

completion of filing 

requirements pursuant to FLRA 

regulations, all REP cases will 

be assigned to an Authority 

Member staff within 2 work 

days or be otherwise disposed.

Authority

Office of Case Control

100% 100% Met

E. Measure 3.5: Within 50 

days of assignment of a REP 

case to an Authority Member 

staff, a decision whether to grant 

review will issue.

Authority

Office of Case Control

15% 50% Met

Performance Goal 4: Provide timely review and disposition of Arbitration (ARB) cases.

Objective 4: Remedy all ARB cases in a timely manner

A. Measure 4.1: Upon 

completion of filing 

requirements pursuant to FLRA 

regulations, all ARB cases will 

be assigned to an Authority 

Member staff within 5 work 

days or be otherwise disposed.

Authority

Office of Case Control

75% 63% Not Met

B. Measure 4.2: Within 90 

days of assignment to an 

Authority Member staff, a final 

ARB decision will issue.

Authority

Chief Counsels 15% 22% Met
12 Performance and Accountability Report – Fiscal Year 2009

Performance Outcome 

Measures

(FY2009 Target)

Responsible Executive FY 2009

Target

FY 2009

Actual Result

Performance Goal 5: Provide timely review and disposition of Negotiability (NEG) cases

Objective 5: Remedy all NEG cases in a timely manner.

A. Measure 5.1: Upon 

completion of all filing 

requirements pursuant to FLRA 

regulations, all NEG cases will 

be assigned to an Authority 

member staff within 5 work days 

or be otherwise disposed.

Authority

Office of Case Control

75% 50% Not Met

B. Measure 5.2: Within 100 

days of assignment (reflecting 

reasonable time period for a 

post-petition conference) to an 

Authority Member staff, a final 

NEG decision will issue.

Authority

Chief Counsels

15% 6% Not Met

Performance Goal 6: Provide timely review and disposition of Bargaining Impasses (FSIP) cases.

Objective 6: Remedy all bargaining impasse (FSIP) cases in a timely manner.

A. Measure 6.1: Upon 

completion of filing 

requirements pursuant to FSIP 

regulations, and FMCS action, 

the Panel will assert jurisdiction 

or decline to assert jurisdiction 

within 90 days

Federal Service Impasses Panel 

(FSIP)

Executive Director

79% 79% Met

B. Measure 6.2: Cases which 

the Panel declines to assert 

jurisdiction or which a party(ies) 

requests to withdraw, prior to a 

jurisdictional determination, will 

close within 20 days of such 

determination/request to 

withdraw.

Federal Service Impasses Panel 

(FSIP)

Executive Director

98% 100% Met

C. Measure 6.3: The 

substantive case record will 

close within 120 days once the 

Panel asserts jurisdiction over 

the parties' request for

Assistance.

Federal Service Impasses Panel 

(FSIP)

Executive Director

100% 100% Met

D. Measure 6.4: Cases which 

the Panel resolves through a 

Decision & Order, or otherwise, 

will be closed within 30 days of 

the Panel's decision.

Federal Service Impasses Panel 

(FSIP)

Executive Director 85% 85% Met
Management’s Discussion and Analysis 13

PERFORMANCE GOALS ANALYSIS 

The Performance Goals Analysis Section presents detailed information on the performance 

results of the FLRA’s programs. Each of the six performance goals relate to the six statutory 

responsibilities of the FLRA. For each performance goal, a discussion is provided regarding 

FLRA’s specific responsibilities including information on the agency’s strategy for meeting the 

goal. A separate matrix is provided for each measure within the performance goal showing 

FLRA’s results against the target set in our performance plan. An explanation is provided on the 

performance results along with the source of the data. 

Recognizing that the FLRA’s FY2009 performance goals were largely unattainable, in March 

2009 the FLRA established percentage target performance levels for each of the FY2009 goals. 

These target performance levels, which were established in the FLRA’s FY2010 Congressional 

Budget Justification (CBJ), were intended to apply for the remainder of FY2009. The target 

performance levels established challenging, ambitious and outcome-oriented target levels, which 

are also meaningful and realistic given the state of the agency. Most significantly, the target 

performance levels for FY2009 were established with input from key staff and included 

consideration of the many challenges the agency faced for much of FY2009. Those challenges 

included the facts that the FY2009 goals were largely unattainable, established without input 

from agency staff, and not communicated to staff until mid-way through the fiscal year. The fact 

that the FY2009 goals were largely unattainable was due in significant part to diminished 

staffing -- as of April 1, 2009, there were 112 FTEs (annualized) on board throughout all FLRA 

components. This represented a 50 percent reduction in FTEs from FY2001. Although the 

number of cases filed with the components declined during this period, the FLRA’s jurisdiction 

was not reduced. Moreover, during the past 2 years, the FLRA experienced numerous vacancies, 

often of long duration, in key positions. 

In particular, until August 2009, the Authority membership had one vacancy, the General 

Counsel’s and the Deputy General Counsel’s (which remains unfilled on a permanent basis) 

positions were unfilled and had been unfilled for all of FY2009, and the seven Federal Service 

Impasses Panel Member positions were not appointed until the end of September 2009. These 

vacancies had a direct effect on the various components’ abilities to discharge their statutory 

responsibilities. For example, because the General Counsel’s position was unfilled (and 

there was no filled Deputy position), there was no statutory authority to issue and prosecute 

unfair labor practice (ULP) complaints before the Office of Administrative Law Judges (OALJ), 

and no statutory authority to resolve appeals of ULP decisions by the Office of General Counsel 

(OGC) Regional Directors. Likewise, there was no ability to reach final decisions in cases 

pending before the Panel. As a result, the target performance level for FY2009 for certain 

performance targets was reduced to 0% to account for the fact that no actions could take place in 

the absence of Presidential leadership. 

With respect to the Authority, for approximately three months (July 2008 through October 2008) 

the Authority lacked a Chairman and operated with one Member – in fact, the FLRA began 

FY2009 with no Chairman. Not only was the remaining Member unable to issue decisions 

without a second Member, that Member lacked any administrative authority, precluding her from 

addressing any of the serious budgetary, human capital, IT resources and performance 
14 Performance and Accountability Report – Fiscal Year 2009

deficiencies and challenges facing the FLRA. And, although a quorum comprised of the 

Chairman and one Member existed for the remainder of FY2009 in the Authority, case decisions 

could not issue unless the Chairman and Member agreed on appropriate disposition of the case; 

absent such agreement, cases had to await a tie-breaking vote by a third Member. In sum, the 

absence of sustained, effective leadership has adversely affected the agency’s ability to timely 

resolve disputes. 

In addition, FY2009 began with a significant backlog of cases awaiting an Authority decision. 

For several years, neither the necessary resources nor leadership was invested in addressing the 

then-growing backlog of cases, resulting in the Authority beginning FY2009 with nearly 400 

pending cases. This inventory was nearly four times the inventory pending at the beginning of 

FY2001 and over double the inventory pending at the beginning of FY2007. Moreover, the 

FY2009 inventory was old: nearly 75 percent of the inventory in all types of cases was already 

over 180 days old (approximately 300 cases) and almost 100 of those cases were over 2 years 

old. As such, for the Authority to make meaningful efforts to address it case backlog -- as it did 

in FY2009 -- it was impossible to meet the case processing performance goals for decisions in 

―new‖ cases that FY2009 opened under because the decisions in the backlogged cases would fall 

outside the performance goal timeframes for the issuance of decisions. 

Performance Goal 1: Provide Timely Adjudication of Cases 

The Case Management E-Filing System for customers to file their cases on-line was not 

completed or available in FY2009, thereby preventing FLRA from any expectation of 

accomplishing this goal. However, significant progress was made toward implementation of this 

system. In this regard, in FY2009, the FLRA conducted and delivered an extensive requirements 

analysis report, a full system design solution, test plans and a detailed project plan including an 

implementation timeline. In addition, the agency selected and began the work on a Case 

Management e-Filing System solution to deliver the full product for use by 2010. In FY2009, 

the first phase was completed on time and within budget and positioned the agency for the 

delivery of the Case Management e-Filing System by the end of 2010. Further, in FY2009, the 

FLRA hired a Chief Information Officer (CIO) to ensure that the system is completely 

implemented and to publish and track IT investments on Office of Management and Budget’s 

(OMB) itusaspending.gov web site. 
Management’s Discussion and Analysis 15

Measure 1.1: 30% of customers file on-line.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Data Source: Oracle Database

Target (Not Applicable or N/A): The FLRA made substantial progress toward completion 

of this goal. A CIO was hired to manage this goal. The FLRA conducted and delivered 

requirements analysis, identified a design solution, developed test plans and a project 

plan. Although the Case Management E-filing System for customers to file their cases 

on-line was not completed for use in FY2009, plans are to have this system in production 

by the end of 2010.

Measure 1.2: 80% of customers who filed on-line track the status of a case on-line. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Data Source: Oracle Database

Target (Not Applicable or N/A): Although the Case Management E-filing System for 

customers to file their cases on-line was not completed for use in FY2009, plans are to have this 

system in production by the end of 2010.

Performance Goal 2: Provide timely review and disposition of Unfair Labor 

Practice (ULP) cases. 

Under the Statute, the Authority and the General Counsel of the Authority have independent 

legal functions. The General Counsel of the Authority is solely responsible for investigating 

charges of unfair labor practices. The General Counsel also exercises prosecutorial discretion in 

determining whether to issue complaints with respect to charges ULP and to prosecute the 

complaint(s) before an FLRA Administrative Law Judge (ALJ). ULP cases reach the Authority 

on appeal from an administrative law judge decision. The Authority, acting as a quasi-judicial 

body, decides the unfair labor practice case. The non-prevailing party may appeal the 

Authority’s decision to a U.S. Court of Appeals. 

Unfair Labor Practice Caseload 

Unfair Labor Practice (ULP) cases enter the FLRA through the Office of the General Counsel 

(OGC) as a charge. OGC Regional Office staff members investigate the charges filed. If there is 

a potential violation of the Statute, then the Regional Director issues a complaint. The OGC then 

prosecutes the complaint before an ALJ. 
16 Performance and Accountability Report – Fiscal Year 2009

FY2005 FY2006 FY2007 FY2008 FY2009

Charges pending, start of year 914 1,164 1,705 2,300 1,237

Charges Filed 4,036 4,788 4,677 3,569 3,593

Total Charges 4,950 5,952 6,382 5,869 4,830

Charges Closed:

Charges Withdrawn/

 Settled 2,758 2,979 2,920 2,648 2,250

Charges Dismissed 952 1,008 1,038 1,941 1,002

Complaints Issued 86 271 134 ___46 __20

Total Charges Closed 3,796 4,258 4,092 4,635 3,272

Charges Pending, 

end of year 1,164 1,705 2,300 1,237 1,690

The ULP charges filed during FY2009, by Regional Office, were as follows: 

Region (FY2009) ULP CHARGES filed

Atlanta 441

Boston 555

Chicago 682

Dallas 371

Denver 447

San Francisco 610

Washington 619

TOTAL 3,725

Upon issuance of a complaint, the ULP case proceeds to the Office of Administrative Law Judges 

(OALJ) where it may settle prior to or at the hearing, or result in a recommended decision.

 

FY2005 FY2006 FY2007 FY2008 FY2009

Cases Pending, start of year 118 18 32 25 0

Case Intake 88 271 134 46 0

Total Caseload 206 289 166 7 0

Case Closings:

 Cases closed before hearing 134 216 114 59 0

 Cases closed at hearing 0 2 0 0 0

 Cases closed by decision 54 39 27 12 0

Total Case Closings 188 257 141 71 0

Cases Pending, End of Year

Awaiting Hearing 3 25 19 0 20

Awaiting Decision 15 7 6 0 0 

Total Cases Pending, end of year 18 32 25 0 20
Management’s Discussion and Analysis 17

After the OALJ renders a ULP decision, the parties may file exceptions with the Authority for 

review of that decision. 

 FY2005 FY2006 FY2007 FY2008 FY2009

Cases Pending, start of year 19 16 21 34 30

Case Intake 52 38 26 11 1

Total ULP Caseload 71 54 47 45 31

Case Closings

Procedural 32 25 13 9 0

Merits 23 8 0 6 16

Total ULP Closings 55 33 13 15 16

ULPs pending, end of year 16 21 34 30 15

Measure 2.1: All ULP charges will result in the issuance of a complaint, withdrawal, or 

settlement of the charge within 120 days from the date filed. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 70% 71%

Data Source: Case Tracking System

Target Met: The OGC successfully met this goal, exceeding the performance level,

resolving 71% of the charges within 120 days.

Measure 2.2: Issue 80% of sustained appeals within 60 days of receipt of the appeal of the 

Regional Director's dismissal of the charge. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 0% 2%

Data Source: Case Tracking System 

Target (Not Applicable): The OGC issued 2% of appeals decisions with 60 days. 
18 Performance and Accountability Report – Fiscal Year 2009

Measure 2.3: All ULP complaints will receive a hearing within 90 days or be otherwise settled.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 90% N/A

Data Source: Case Tracking System

Target (Not Applicable or N/A for FY2009): Due to the General Counsel position not being 

filled until August 2009, the OALJs held no hearings in FY2009.

Measure 2.4: Within 60 days of close of hearing, the Office of Administrative Law Judges 

will issue a decision. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

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

Data Source: Case Tracking System

Target (Not Applicable or N/A for FY2009) : Due to the General Counsel position not being 

filled until August 2009, the OALJ’s held no hearings and issued no decisions in FY2009.

Measure 2.5: Upon completion of filing requirements pursuant to FLRA regulations, all ULP 

cases will be assigned to an Authority Member staff within 5 working days or be otherwise 

disposed.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 75% 100%

Data Source: Case Tracking System 

Target Met: Case Intake Processing (CIP) exceed target, assigned 100% of ULP cases to an 

Authority Member staff within 5 working days.
Management’s Discussion and Analysis 19

Measure 2.6: Within 90 days of assignment to an Authority Member staff, a final ULP decision 

will be issued. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 0% 5%

Data Source: Case Tracking System

Target Met: The Authority issued 1 ULP decision within 30 days; 16 ULP decisions were 

issued in cases older than 90 days. 

Performance Goal 3: Provide timely review and disposition of Representation 

(REP) cases. 

Representation (REP) cases arise through the filing of a representation petition requesting: (1) 

an election to determine whether a labor organization represents a majority of agency employees 

in an appropriate bargaining unit; (2) clarification of an existing bargaining unit; or (3) 

consolidation of two or more bargaining units. 

Representation Caseloads 

REP cases originate with the filing of a petition in one of the OGC Regional Offices. 

 FY2005 FY2006 FY2007 FY2008 FY2009

Petitions Pending, start of year 119 123 160 156 140

Petitions Filed 285 276 297 289 256

Total Petitions 404 399 457 445 396

Petitions Closed

Petitions Withdrawn 121 99 136 132 92

Merit Determinations 160 140 165 173 154

Total Petitions Closed 281 230 301 305 246

Petitions Pending, end of year 123 159 156 140 156

Authority 

Within the Authority, unlike other types of cases, there is a statutory time requirement to 

complete a REP case. Such cases are given priority in order to meet the statutory requirement. 
20 Performance and Accountability Report – Fiscal Year 2009

FY2005 FY2006 FY2007 FY2008 FY2009

Cases Pending, start of year 1 1 1 4 3

Case Intake 11 12 13 14 16 

Total REP 12 13 14 18 19

Case Closings

Procedural 1 1 0 1 1

Merits 10 11 10 14 14

Total Closings 11 12 10 15 15

REPs, 

 pending end of year 1 1 4 3 4

Measure 3.1: Issue Decision & Order (D&O) or approve withdrawal of petition within 90 days 

of filing of petition with the OGC, where no election or hearing is necessary. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

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

Data Source: Case Tracking System

Target Not Met: OGC did not meet issuing D&Os or approving withdrawals of petitions in 60% 

of the cases within 90 days. The performance goal was set at an approximate target level, and the 

deviation from that level is not significant. There was no effect on the overall program or activity 

performance.

Measure 3.2: Conduct election within 90 days from the date of filing of petition with the OGC, 

where no hearing is necessary.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 55% 61%

Data Source: Case Tracking System

Target Met: The OGC exceeded its target performance, conducting elections within 90 days in 

61% of the cases. 
Management’s Discussion and Analysis 21

Measure 3.3: Issue D&O in all REP cases in 180 days, where a hearing is necessary.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 25% 10%

Data Source: Case Tracking System

Target Not Met: The OGC did not meet its target performance issuing D&O’s within 180 days 

in 10% of cases.

Measure 3.4: Upon completion of filing requirements pursuant to FLRA regulations, all REP 

cases will be assigned to an Authority Member staff within 2 work days or be otherwise 

disposed. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

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

Data Source: Case Tracking System

Target Met: CIP met the goal, assigning REP cases to an Authority Member staff within 2 

workdays in 100% of cases. 

Measure 3.5: Within 50 days of assignment of a REP case to an Authority Member staff, a 

decision whether to grant review will issue.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 15% 50%

Data Source: Case Tracking System

Target Met: The Authority exceeded its target performance level, meeting the goal in 50% of 

the cases.
22 Performance and Accountability Report – Fiscal Year 2009

Performance Goal 4: Provide timely review and disposition of Arbitration 

(ARB) cases. 

Either party to an arbitration proceeding, other than one involving a serious personnel action that 

is appealable to the Merit System Protection Board, may file one or more exceptions to the 

arbitral award with the Authority. The Authority reviews the case to determine whether the 

award is deficient because: (1) it is contrary to any law, rule, or regulation; or (2) on other 

grounds similar to those applied by Federal courts in the private sector labor-management 

relations. If the Authority finds the arbitral award deficient, then the Authority may take such 

action concerning the award as is necessary, consistent with applicable laws, rules and 

regulations. 

Arbitration (ARB) Caseload 

 

FY2005 FY2006 FY2007 FY2008 FY2009

Cases Pending, start of year 62 58 108 216 298

Case Intake 138 136 162 126 150

Total ARB Caseload 200 194 270 342 448

Case Closings

Procedural 18 13 18 12 38

Merits 124 73 36 32 155

Total ARB Closings 142 86 54 44 193

ARBs pending, end of year 58 108 216 298 255

Measure 4.1: Upon completion of filing requirements pursuant to FLRA regulations, all ARB 

cases will be assigned to an Authority Member staff within 5 work days or be otherwise disposed. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 75% 63%

Data Source: Case Tracking System

Target Not Met: CIP nearly met, assigning ARB cases to an Authority Member staff within 5 

working days in 63% of the cases. The performance goal was set at an approximate target level, 

and the deviation from that level is not significant. There was no effect on the overall program or 

activity performance.
Management’s Discussion and Analysis 23

Measure 4.2: Within 90 days of assignment to an Authority Member staff, a final ARB decision 

will issue. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 15% 22%

Data Source: Case Tracking System

Target Met: The Authority exceeded its target, issuing an ARB decision within 90 days in 22% 

of cases. In addition, the Authority issued 110 decisions in cases older than 90 days. 

Performance Goal 5: Provide timely review and disposition of Negotiability 

(NEG) cases. 

Negotiability disputes arise when there are questions regarding the legality of the matter 

proposed for bargaining. Under the Statute, the Authority is charged with adjudicating 

negotiability disputes. 

Negotiability (NEG) Caseload 

FY2005 FY2006 FY2007 FY2008 FY2009

Cases Pending, start of year 14 22 24 40 48

Case Intake 66 68 52 38 37

Total NEG Caseload 80 90 76 78 85

Case Closings

Procedural 38 53 30 22 39

Merits 20 13 6 8 10

Total Closings 58 66 36 30 49

Cases pending, end of year 22 24 40 48 36

Measure 5.1: Upon completion of all filing requirements pursuant to FLRA regulations, all 

NEG cases will be assigned to an Authority Member staff within 5 work days or be otherwise 

disposed.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 75% 50%

Data Source: Case Tracking System

Target Not Met: CIP met this goal in 50% of NEG cases. The performance goal was set at an 

approximate target level, and the deviation from that level is not significant. There was no effect 

on the overall program or activity performance.
24 Performance and Accountability Report – Fiscal Year 2009

Measure 5.2: Within 100 days of assignment (reflecting reasonable time period for a postpetition conference) to an Authority Member staff, a final NEG decision will issue. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 15% 6%

Data Source: Case Tracking System

Target Not Met: The Authority issued NEG decisions within 100 days in 6% of cases. In 

addition, the Authority issued 13 NEG cases older than 90 days. This contributed to the backlog 

reduction effort. The performance goal was set at an approximate target level, and the deviation 

from that level is slight. There was no effect on the overall program or activity performance.

Performance Goal 6: Provide timely review and disposition of Bargaining 

Impasses (FSIP) cases. 

The Federal Service Impasses Panel (FSIP) substitutes for the strike and lockout in the Federal 

sector. The FSIP has broad statutory authority to resolve negotiation impasses over conditions of 

employment in the Federal sector. Once the FSIP asserts jurisdiction in an impasse, the parties 

are provided various procedures for resolution of the impasse(s), including informal conferences, 

mediation, and arbitration. Ultimately, the FSIP may take whatever final action is necessary to 

resolve the dispute, including the issuance of a Decision and Order. The Order is binding during 

the term of the parties’ collective bargaining agreement unless the parties agree otherwise. 

Bargaining Impasse Caseload 

The FSIP resolves impasses between Federal agencies and unions representing Federal 

employees arising from negotiations over conditions of employment under the Federal Service 

Labor-Management Relations Statute and the Federal Employees Flexible and Compressed 

Work Schedules Act. If bargaining between the parties, followed by mediation assistance, 

proves unsuccessful, the FSIP recommends procedures and takes action it deems necessary to 

resolve the impasse. 

 FY2005 FY2006 FY 2007 FY2008 FY2009

Cases Pending, 

start of year 48 45 34 23 22

Impasses Received 146 134 115 111 120

Total Caseload 194 179 149 134 144

Impasses Resolved 149 145 126 112 84

Cases pending, 

end of year 45 34 23 22 60
Management’s Discussion and Analysis 25

Measure 6.1: Upon completion of filing requirements pursuant to FSIP regulations, and Federal 

Mediation and Conciliation Service (FMCS) action, the Panel will assert jurisdiction or decline to 

assert jurisdiction within 90 days.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 79% 79%

Data Source: Case Tracking System

Target Met: FSIP made jurisdictional determinations in 19 requests for assistance from the 

parties. It met its goal of making determinations within 90 calendar days of the filing of a request 

79% of the time.

Measure 6.2: Cases which the Panel declines to assert jurisdiction or which a party(ies) requests 

to withdraw, prior to a jurisdictional determination, will close within 20 days of such 

determination/request to withdraw.

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 98% 100%

Data Source: Case Tracking System

Target Met: FSIP met its goal of issuing the closing letter to the parties within 20 calendar days 

of the determination/request to withdraw in 100% of the cases.

Measure 6.3: The substantive case record will close within 120 days once the Panel asserts 

jurisdiction over the parties' request for Assistance. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

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

Data Source: Case Tracking System

Target Met: FSIP met its goal of closing the substantive case record within 120 days after the 

jurisdiction is asserted in 100% of the cases.
26 Performance and Accountability Report – Fiscal Year 2009

Measure 6.4: Cases which the Panel resolves through a Decision and Order, or otherwise, will be 

closed within 30 days of the Panel's decision. 

2005 2006 2007 2008 2009

Target Actual Target Actual Target Actual Target Actual Target Actual

N/A N/A N/A N/A N/A N/A N/A N/A 85% 85%

Data Source: Case Tracking System

Target Met: FSIP met its goal of issuing Decision and Orders within 30 calendar days of the 

FSIP Members decisions in 85% of the cases (11 out of 13 requests for assistance).
Management’s Discussion and Analysis 27

AGENCY MISSION CHALLENGES 

Since February 19, 2009 -- when Carol Waller Pope assumed the FLRA Chairmanship pursuant 

to President Obama’s designation -- the FLRA has engaged in an aggressive and thorough 

review of its programs and performance, focusing on budget-related matters and the 

development of management initiatives to improve the FLRA’s performance of its statutory 

mission. As part of this process, the FLRA reviewed its information technology (IT) 

investments, case processing, financial management, as well as its program performance. In 

doing so, the FLRA examined its current budget, human resources, IT resources and 

performance, and -- as described more fully in various sections of the PAR -- developed plans 

and initiatives to address the deficiencies and challenges. 

The most significant mission challenges involve our case backlog and the increased need for 

training, outreach, and facilitation services by our customers -- a need driven by the increased 

emphasis throughout the Government on improved labor-management relations and increased 

efficiency and effectiveness of Government operations. The FLRA also faces significant 

challenges with respect to improving its human capital infrastructure and employee morale. 

Moving forward, the FLRA intends to take whatever steps are necessary to restore confidence in 

the agency’s leadership and staff to accomplish our important mission of providing guidance in 

resolving labor-management disputes in the Federal sector. We recognize that a renewed and 

revitalized FLRA depends on not only funding but also creativity in using existing resources as 

well as vigorous dedication to improving program performance and our employees. 
28 Performance and Accountability Report – Fiscal Year 2009

MANAGEMENT ASSURANCES AND COMPLIANCE 

WITH LAWS 

Federal Managers’ Financial Integrity Act (FMFIA) 

The Federal Managers’ Financial Integrity Act of 1982 (FMFIA) 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 Agency head to 

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

Statement of Assessment on whether the agency has met this requirement. Guidance for 

implementing the FMFIA is provided through OMB Circulars A-123, Management’s 

Responsibility for Internal Control which defines management’s responsibility for internal 

control, and A-127, Financial Management Systems.

The Sarbanes-Oxley Act of 2002 governs internal control requirements of publicly-traded 

companies and was the foundation for OMB’s amending Circular A-123 by adding Appendix A, 

Internal Control Over Financial Reporting (ICOFR). Appendix A is designed to improve 

governance and accountability for internal control over financial reporting in Federal agencies. 

Statement of Management Assurance

The FMFIA requires Federal agencies to provide an annual statement of assurance regarding 

management controls and financial systems. FLRA management is responsible for establishing 

and maintaining effective internal control and financial systems that meet the requirements of the 

FMFIA. Management control systems reviewed under FMFIA are expected to provide 

reasonable assurance that the following objectives are being achieved: 

Effectiveness and efficiency of operations; 

Reliability of financial reporting; and 

Compliance with applicable laws and regulations. 

The FLRA’s approach to assessing its internal controls included the identification and 

assessment of risks by senior managers on an Agency-wide basis, in conjunction with 

subordinate staff, personal judgment, and other sources of information. Such sources included: 

knowledge gained from day-to- day operations; Inspector General audits and investigations; 

program evaluations; reviews of financial systems; annual performance plans; and management 

reviews for the purpose of assessing internal controls. The designated managers were responsible 

for conducting reviews of program operations; assisting program offices in identifying risks and 

conducting internal control reviews; issuing reports of findings and making recommendations to 

improve internal controls and risk management. 

Section 2 of the FMFIA requires Federal agencies to report, on the basis of annual assessments, 

any material weaknesses that have been identified in connection with their internal and 

administrative controls. Based on the internal controls program, reviews, and consideration of 

other information, senior management’s assessment of the FLRA’s internal controls is that the 

controls provide reasonable assurance in support of effective and efficient operations, and 

compliance with laws and regulations. There are no Section 2 material weaknesses. 
Management’s Discussion and Analysis 29

However, the reviews that took place in FY2009, did not meet the minimum requirements set 

forth in OMB Circular A-123, Appendix A for the assessment of Internal Controls Over 

Financial Reporting. Therefore, per OMB direction, FLRA provides a qualified statement of 

assurance of Internal Controls over Financial Reporting. Note that for the FY2008 and FY2009 

audits of FLRA’s financial statements, the independent auditor reported no material weaknesses. 

The FLRA evaluated its financial management systems for the year ending September 30, 2009, 

in accordance with the FMFIA and OMB Circular, A-127, Financial Management Systems, 

Section 7 guidance. For FY2009, FLRA’s financial systems, taken as a whole, conform with the 

requirements of section 4 of the FMFIA, and substantially comply with the Federal accounting 

principles and standards, Federal management system requirements, and the U.S. Standard 

General Ledger at the transaction level. 

Carol Waller Pope 

Chairman 

November 13, 2009 

Federal Financial Management Improvement Act (FFMIA) 

The FFMIA requires Federal agencies to report on agency substantial compliance with Federal 

financial management system requirements, Federal accounting standards, and the US Standard 

General Ledger at the transaction level. The FLRA’s financial system is hosted by the 

Department of Interiors National Business Center (NBC). The NBC’s financial system complies 

substantially with the FFMIA in FY2009. 

Federal Information Security Management Act (FISMA) 

The FISMA of 2002 requires Federal agencies to implement a mandatory set of processes and 

system controls in order to ensure the confidentiality, integrity, and availability of system-related 

information and information resources. Processes implemented within Federal agencies must 

follow a set of established Federal Information Processing Standards (FIPS) and other legislative 

requirements pertaining to Federal information systems, including the Privacy Act of 1974. The 

FLRA continues to be vigilant in ensuring that there are no material weaknesses in 

administrative controls over information systems. 

To ensure compliance with FISMA requirements, a program for information security 

management is maintained by FLRA that is focused on protecting the agency’s information 

resources and supporting FLRA’s mission. The FISMA of 2002 requires Federal agencies to 

implement a mandatory set of processes and system controls in order to ensure the 

confidentiality, integrity, and availability of system-related information and information 

resources. Processes implemented within Federal agencies must follow a set of established 

Federal Information Standards (FIPS) and other legislative requirements pertaining to Federal 

information systems, including the Privacy Act of 1974. 
30 Performance and Accountability Report – Fiscal Year 2009

The FLRA continues to be vigilant in ensuring that there are no material weaknesses in 

administrative controls over information systems. To bring the agency into full compliance, the 

FLRA has embarked on a FISMA ―get well‖ plan. This plan incorporates the standards for 

categorizing information and information systems by mission impact and selecting appropriate 

security controls. The overall goal of the get well plan is to implement an agency wide program 

of cost-effective, risk-based information security that is more consistent, comparable, and has 

repeatable security controls. 

In the third quarter of FY2009, the agency took several improvement steps as part of the FISMA 

get well plan. First, the agency hired a Chief Information Officer with knowledge and 

experience with the National Institute of Standards and Technology FIPS, assigned a Chief 

Information Security Officer and began a Technology Council to assist with security aspects of 

the agency. Second, the agency executed a contract to the Bureau of the Public Debt to assist in 

the agency’s endeavor for FISMA compliance. Finally, the FLRA began implementing FISMA 

controls to include mandatory user awareness training, a security handbook and a full Plan of 

Action and Milestones (POA&M) to remediate identified security issues. 

With the agency’s FISMA get well plan, the FLRA certified and accredited its system on 

September 25, 2009. 

Prompt Payment Act 

The Prompt Payment Act requires Federal agencies to report on their efforts to make timely 

payments to vendors, including interest penalties for late payments. In FY2009, the FLRA paid 

interest penalties on 21 invoices, or about 5% of total vendor invoices processed of 488 

representing payments of approximately $576.8 thousand. The FLRA paid a total of $94.64 in 

interest or interest penalties. 
Management’s Discussion and Analysis 31

FINANCIAL DISCUSSION AND ANALYSIS 

This section presents the FLRA’s financial highlights providing an analysis of the information 

that appears in the FLRA’s FY2009 financial statements. FLRA’s management is responsible 

for the fair presentation of information contained in the principal financial statements which are 

audited by Harper, Raines, Knight & Company. The information provided in the financial 

statements and the financial information presented below has been prepared from the agency’s 

accounting records in accordance with Generally Accepted Accounting Principles (GAAP). 

GAAP for Federal agencies are the standards prescribed by the Federal Accounting Standards 

Advisory Board (FASAB). FLRA received a unqualified opinion on our financial statements. 

The financial statements and accompanying notes are contained in the Financial Section of this 

report. 

Overview of Financial Position 

Assets. The Agency’s total assets were $ 10,861 thousand at September 30, 2009, similar to the 

FY2008 total assets of $10,916 thousand. Fund balances with Treasury represents FLRA’s 

largest asset at $10,157 thousand with very little change from the balance at FY2008 year-end. 

Fund Balances represents 94 percent of total assets for both 2009 and 2008. The FLRA does not 

maintain any cash balances outside of the U.S. Treasury and does not have any revolving or trust 

funds. 

(Dollars in Thousands)

As of September 30 2009 2008

Fund Balance with Treasury $10,157 $10, 214

Property Plant and Equipment, Net 669 692

Accounts Receivable, Net 19 10

Advances and Prepayments 16 0

Total Assets $10,861 $10,916
32 Performance and Accountability Report – Fiscal Year 2009

Liabilities. The agency’s total liabilities were down 6.2 percent between 2009 and 2008, from 

$4,062 thousand in 2008 to $3,811 thousand in 2009. The decrease in liabilities was primarily 

due to the 61.8 percent decrease in accounts payable in 2009 compared to 2008. The FECA 

Actuarial Liability and Unfunded Annual Leave represent 70.3 per cent of the total liabilities. 

(Dollars in Thousands)

As of September 30 2009 2008

FECA Actuarial Liability $1,136 $1,093

Unfunded Leave Liability 1,287 1,250

Accrued Payroll and Benefits 958 1,001

FECA Liabilities 256 263

Accounts Payable 174 455 

Total Liabilities $3,811 $4,062

Ending Net Position. The Agency’s net Position at the end of 2009 on the Consolidated 

Balance Sheet and the Consolidated Statement of Changes in Net Position is $7,050 thousand, a 

$196 thousand (2.8%) increase from the previous fiscal year. Net Position is the sum of the 

Unexpended Appropriations and Cumulative Results of Operations. 
Management’s Discussion and Analysis 33

Results of Operations 

The two charts below reflect the source of funds that the Agency received during FY2009 and 

how these funds were used. 

The Combined Statement of Budgetary Resources provides information on how budgetary 

resources were made available to the Agency for the year and their status at fiscal year-end. 

For the fiscal year, the Agency had total resources of $30,454 thousand, a decrease of $356 

thousand (1.1%) from FY2008 levels. Budget authority consists of primarily of $23,900 
34 Performance and Accountability Report – Fiscal Year 2009

thousand in appropriations and $7,864 thousand in carryover balances. The results of operations 

are reported in the Consolidated Statement and the Consolidated Statement of Net Position. The 

Consolidated Statement of Net Cost presents the Agency’s gross and net cost for its strategic 

goals, i.e., total cost incurred by the agency less any exchange (earned) revenue. FLRA’s total 

net cost of operations for FY2009 was $23,301 thousand, a slight decrease over the FY2008 net 

cost of $24,072 thousand. The chart above identifies the use of these funds. 

Limitation of Financial Statements 

Management prepares the accompanying financial statements to report the financial position and 

results of operations for the FLRA pursuant to the requirements of Chapter 31 of the U.S. Code 

Section 3515(b). While these statements have been prepared from the books and records of the 

FLRA in accordance with OMB Circular A-136, Financial Reporting Requirements, and other 

applicable authority, these statements are in addition to the financial reports, prepared from the 

same books and records, used to monitor and control the budgetary resources. These statements 

should be read with the understanding that they are for a component of the U.S. government, a 

sovereign entity. 
Financial Section 35

FINANCIAL SECTION 
36 Performance and Accountability Report – Fiscal Year 2009

MESSAGE FROM THE EXECUTIVE DIRECTOR

During the past fiscal year, the FLRA took major steps toward rebuilding the agency to meet its 

responsibility to provide leadership in establishing policies and guidance related to Federal sector 

labor-management relations and with resolving disputes and ensuring compliance with the 

Federal Service Labor-Management Relations Statute in a fiscally responsible manner. 

Recently, it was reported that in FY2008, the agency spent 90 percent of its appropriation, 

leaving 10 percent unobligated despite the fact that these funds were necessary to fund basic 

operations and fill key positions to address the agency’s case backlog. By contrast, in FY2009, 

the agency spent 99.64 percent of its appropriation leaving 0.46 percent unobligated. I am 

pleased to report that the FLRA’s financial condition is sound and that we look back on a long 

list of accomplishments during FY2009. Notably, the agency achieved an unqualified opinion 

on its consolidated financial statements. 

During FY2009 the FLRA made significant progress addressing its case backlog and re-engaging 

with its customers -- Federal employees, the unions that represent them, and Federal agencies. 

In FY2009, the FLRA began taking steps to rebuild the agency’s workforce and improve 

performance in terms of timely case processing as well as training, outreach, and offers of 

alternative dispute resolution (ADR) services to assist parties in their labor-management 

relationships. 

Employees have noticed the change and those interviewed for the agency’s new on-line 

newsletter, ―FLRA in Session‖, repeatedly remarked on positive effects of the new leadership 

and the increased energy evident throughout the agency. However, it is important to note that, 

despite the efforts to fill key vacancies, the FLRA was not able to fully fund the target of 124 

FTE, completing the year with an estimated 119 FTE. This is because, for nearly all of FY2009, 

key positions, including Presidential appointees and accompanying key staff, remained unfilled. 

The accomplishments highlighted above, represents the correlation between the financial and 

programmatic aspects of the FLRA’s work. This report bridges these two areas, presenting 

agency performance with the financial results of agency operations. The Financial Section that 

follows explains the FLRA’s financial positions as of September 30, 2009 and explains how 

financial resources were expended to achieve performance results. 

Looking ahead to FY2010, the FLRA will continue its efforts to make the FLRA into a high 

performing agency. A key aspect of rebuilding will be through the agency’s strategic planning 

efforts. I am grateful to the Chairman and agency leadership for their strategic vision, as well as 

their commitment to rebuilding and promoting a culture of effective financial and performance 

management. 

Sonna Stampone 

Executive Director 

November 14, 2009 
Financial Section 37

Report of Independent Auditors 

Carol Waller Pope 

Chairman 

Opinion on the Financial Statements 

We have audited the accompanying balance sheet of the U.S. Federal Labor Relations Authority 

(FLRA), as of September 30, 2009, and the related statements of net cost of operations, changes 

in net position, and budgetary resources, for the year then ended. These financial statements are 

the responsibility of FLRA management. Our responsibility is to express an opinion on these 

financial statements based on our audit. The financial statements of FLRA as of September 30, 

2008 were audited by other auditors whose report, dated July 9, 2009, expressed an unqualified 

opinion on those statements. 

We conducted our audit in accordance with auditing standards generally accepted in the United 

States of America, the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States, and OMB Bulletin No. 07-04, 

Audit Requirements for Federal Financial Statements, as amended. Those standards require that 

we plan and perform the audit to obtain reasonable assurance about whether the financial 

statements are free of material misstatement. An audit includes examining, on a test basis, 

evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by 

management, as well as evaluating the overall financial statement presentation. We believe that 

our audit provides a reasonable basis for our opinion. 

In our opinion, the financial statements referred to above, present fairly, in all material respects, 

the financial position of FLRA as of September 30, 2009, and its net cost of operations, changes 

in net position, and budgetary resources for the year then ended, in conformity with accounting 

principles generally accepted in the United States of America. 

Report on Internal Control over Financial Reporting 

In planning and performing our audit, we considered FLRA’s internal control over financial 

reporting by obtaining an understanding of FLRA’s internal control, determining whether these 

internal controls had been placed in operation, assessing control risk, and performing tests of 

FLRA’s internal controls in order to determine our audit procedures for the purpose of 

expressing our opinion on the financial statements and not to provide an opinion on the internal 

control over financial reporting. 

We limited our internal control testing to those controls necessary to achieve the objectives 

described in OMB Bulletin No. 07-04, as amended. We did not test all internal controls relevant 
38 Performance and Accountability Report – Fiscal Year 2009

to the operating objectives as broadly defined by the Federal Managers' Financial Integrity Act 

of 1982. Providing an opinion on internal control over financial reporting was not the objective 

of our audit, accordingly, we do not express an opinion the effectiveness of FLRA’s internal 

control over financial reporting. 

A control deficiency exists when the design or operation of a control does not allow management 

or employees, in the normal course of performing their assigned functions, to prevent or detect 

misstatements on a timely basis. Our consideration of the internal control over financial reporting 

would not necessarily disclose all deficiencies that might be a significant deficiency. A 

significant deficiency is a deficiency in internal control, or a combination of deficiencies, that 

adversely affects the entity's ability to initiate, authorize, record, process, or report financial data 

reliably in accordance with generally accepted accounting principles such that there is more than 

a remote likelihood that a misstatement of the entity's financial statements that is more than 

inconsequential will not be prevented or detected. We noted certain matters involving the 

internal control and its operation that we considered to be significant deficiencies as defined 

above; they are described below. Our consideration of the internal control over financial 

reporting would not necessarily disclose all significant deficiencies that might be a material 

weakness. A material weakness is a significant deficiency, or combination of significant 

deficiencies, that result in a more than remote likelihood that a material misstatement of the 

financial statements will not be prevented or detected. Because of inherent limitations in internal 

controls, misstatements, losses, or non-compliance may nevertheless occur and not be detected. 

However, we noted no matters involving the internal control and its operation that we considered 

to be material weaknesses as defined above. 

Information Systems Security Controls

The Federal Information Security Management Act (FISMA) independent evaluations for fiscal 

year 2009 identified weaknesses in FLRA’s information security program. The independent 

FISMA evaluation, performed by a third party, specifically identified seventeen (17) weaknesses 

in FLRA’s security policies, procedures, and processes, leading the independent evaluator to 

conclude FLRA has not established adequate security controls. 

Based on a self-evaluation of management controls over information systems, FLRA concluded 

that the significant deficiencies identified did not reach the level of material weakness and are 

therefore not included as such in the annual statement of assurance required by the Federal 

Managers’ Financial Integrity Act (FMFIA). 

Report on Compliance with Applicable Laws and Regulations 

The management of FLRA is responsible for complying with laws and regulations applicable to 

FLRA. As part of obtaining reasonable assurance about whether FLRA’s financial statements are 

free of material misstatement, we performed tests of its compliance with certain provisions of 

laws and regulations including laws governing the use of budgetary authority and governmentwide policies identified in OMB Bulletin No. 07-04, as amended, non-compliance with which 

could have a direct and material effect on the determination of consolidated and combined 

financial statements. 
Financial Section 39

We limited our tests of compliance to the provisions of laws and regulations referred to in the 

preceding paragraph. Providing an opinion on compliance with those provisions was not an 

objective of our audit, accordingly, we do not express such an opinion. However, we noted no 

noncompliance with laws and regulations, which could have a direct and material effect on the 

determination of the financial statements. 

Other Information 

Management’s Discussion and Analysis (MD&A) is not a required part of the financial 

statements but is supplementary information required by the Federal Accounting Standards 

Advisory Board and OMB Circular A-136, Financial Reporting Requirements. We have applied 

certain limited procedures, which consisted principally of inquiries of management regarding the 

methods of measurement and presentation of the MD&A. However, we did not audit the 

information and accordingly, we express no opinion on it. 

Our audits were conducted for the purpose of forming an opinion on the financial statements of 

FLRA taken as a whole. The other accompanying information included in this performance and 

accountability report is presented for purposes of additional analysis and is not a required part of 

the financial statements. Such information has not been subjected to the auditing procedures 

applied in the audit of the financial statements and, accordingly, we express no opinion on them. 

This report is intended solely for the information and use of the management of the U.S Federal 

Labor Relations Authority, the U.S. Office of Management and Budget, the U.S. Government 

Accountability Office, and the U.S. Congress and is not intended to be and should not be used by 

anyone other than these specified parties. 

November 13, 2009 
40 Performance and Accountability Report – Fiscal Year 2009

PRINCIPAL FINANCIAL STATEMENTS

FEDERAL LABOR RELATIONS AUTHORITY BALANCE SHEETS

(In Dollars)

As of September 30, Notes 2009 2008 

ASSETS

Intragovernmental:

Fund Balance with Treasury 2 $ 10,156,942 $ 10,213,975 

Accounts Receivable 3 10,591 

Advances and Prepayments 16,156 

Total Intragovernmental 10,183,689 10,213,975 

Accounts Receivable 3 8,930 9,985 

General Property, Plant and 

Equipment, Net 4 668,525 692,370 

Total Assets $ 10,861,144 $ 10,916,330 

LIABILITIES

Intragovernmental Liabilities:

Accounts Payable $ 103,575 $ 158,149 

FECA Liabilities 5 256,355 262,921 

 Other $ 73 

Total Intragovernmental Liabilities 360,003 421,070 

Accounts Payable 69,945 296,948 

FECA Actuarial Liability 5 1,135,860 1,093,307 

Unfunded Annual Leave 5 1,286,960 1,249,890 

Accrued Payroll and Benefits 958,120 1,000,842 

Total Liabilities 3,810,888 4,062,057 

NET POSITION

Unexpended Appropriations 9,048,592 8,778,644 

Cumulative Results of Operations (1,998,336) (1,924,371)

Total Net Position 7,050,256 6,854,273 

Total Liabilities and Net Position $ 10,861,144 $ 10,916,330 

The accompanying notes are an integral part of these financial statements.
Financial Section 41

FEDERAL LABOR RELATIONS AUTHORITY STATEMENTS OF NET COST

(In Dollars)

As of September 30, 2009 2008 

Program Cost

Intragovernmental gross cost $ 4,956,405 $ 6,161,177 

Public Cost $ 18,345,057 $ 17,911,000 

Net Cost of Operations $ 23,301,462 $ 24,072,177 

The accompanying notes are an integral part of these financial statements.
42 Performance and Accountability Report – Fiscal Year 2009

As of September 30, 2009 2008

CUMULATIVE RESULTS OF OPERATIONS

Beginning Balance $ (1,924,371) $ (1,977,387)

Adjustments

Correction of Error 13,403 -

Beginning Balance, as adjusted (1,910,968) (1,977,387)

Budgetary Financing Sources:

Appropriations-Used 21,970,748 22,882,424

Other Financing Sources:

Imputed Financing 1,243,346 1,242,769

Total Financing Sources 23,214,094 24,125,193

Net Cost of Operations (23,301,462) (24,072,177)

Net Change (87,368) 53,016 

Cumulative Results of Operations $ (1,998,336) $ (1,924,371)

Unexpected Appropriations:

Beginning Balance $ 8,778,644 $ 9,622,601

Budgetary Financing Sources:

Appropriations Received $ 23,900,234 23,641,000

Appropriations Transferred In/(Out) (1,226,234) (1,602,533)

Appropriations-Used (21,970,748) (22,882,424)

Other Adjustments (433,304) -

Total Budgetary Financing Sources 269,948 (843,957)

Unexpended Appropriations $ 9,048,592 $ 8,778,644

Net Position $ 7,050,256 $ 6,854,273

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

FEDERAL LABOR RELATIONS AUTHORITY 

STATEMENTS OF CHANGES IN NET POSITION

(In Dollars)
Financial Section 43

FEDERAL LABOR RELATIONS AUTHORITY STATEMENTS OF BUDGETARY RESOURCES 

2009 2008

Budgetary Resources:

Unobligated balance, brought forward, October 1: $ 7,963,702 $ 8,363,788

Recoveries of prior year unpaid obligations 249,344 432,139

Budget Authority:

Appropriation 23,900,234 23,641,000

Change in receivables from Federal sources (23,955) - 

Total Budget Authority 23,900,234 23,617,045

Nonexpenditure transfers, net, anticipated and actual (1,226,234) (1,602,533)

Permanently not available (433,304) -

Total Budgetary Resources $ 30,453,742 $ 30,810,439

Status of Budgetary Resources:

Obligations incurred

Direct $ 23,972,535 $ 22,846,737

Total Obligations incurred 23,972,535 22,846,737

Unobligated balance 

Apportioned 81,715 2,452,205

Total Unobligated balance 81,715 2,452,205

Unobligated balance not available 6,399,492 5,511,497

Total Status of Budgetary Resources $ 30,453,742 $ 30,810,439

Change in Obligated Balance:

Obligated balance, net

Unpaid obligations, brought forward, October 1 $ 2,250,273 $ 2,440,535

Less: Uncollected customer payments from Federal sources,

brought forward, October 1 (23,955) - 

Total unpaid obligated balances, net 2,250,273 2,416,580

Obligations incurred, net 23,972,535 22,846,737

Less: Gross outlays (22,297,802) (22,604,860)

Less: Recoveries of prior year unpaid obligations, actual (249,344) (432,139)

Change in uncollected customer payments from Federal sources - 23,955

Total, unpaid obligated balance, net, end of period 3,675,662 2,250,273

Obligated Balance, net, end of period 

Unpaid obligations 3,675,662 2,250,273

Total, unpaid obligated balance, net, end of period (Note 8) $ 3,675,662 $ 2,250,273

Net Outlays:

Gross outlays 22,297,802 22,604,860

Net Outlays 22,297,802 22,604,860

The accompanying notes are an integral part of thse financial statements.

(In Dollars)

For the Years ended September 30,
44 Performance and Accountability Report – Fiscal Year 2009

NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS 

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

(a)Reporting Entity

The Federal Labor Relations Authority (FLRA) is an independent administrative Federal agency 

created by Title VII of the Civil Service Reform Act of 1978 (the Statute) 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. All work throughout the agency is undertaken to support 

a single program -to administer and enforce the Statute by determining the respective rights of 

employees, agencies, and labor organizations in their relations with one another. 

FLRA's authority is divided by law and by delegation among a three-member Authority and an 

Office of General Counsel, appointed by the President and subject to Senate confirmation; and 

the Federal Service Impasses Panel, which consists of seven part-time members appointed by the 

President. FLRA does not initiate cases. Proceedings before FLRA originate from filings arising 

through the actions of Federal employees, Federal agencies, or Federal labor organizations. 

Nationwide, FLRA includes seven Regional Offices, one satellite office, and a Headquarters site 

in Washington, D.C. 

Authority. The Authority adjudicates appeals filed by either Federal agencies or Federal labor 

organizations on negotiability issues, exceptions to arbitration awards, appeals of representation 

decisions, eligibility of labor organizations for national consultation rights, and unfair labor 

practice complaints. 

Office of the General Counsel. The General Counsel investigates allegations of unfair labor 

practices and processes representation petitions. In addition, the General Counsel conducts 

elections concerning the exclusive recognition of labor organizations and certifies the results of 

elections. 

Federal Service Impasses Panel. The Panel resolves labor negotiation impasses between Federal 

agencies and labor organizations. 

The FLRA’s financial activity is considered to be in the general government and central 

personnel management budget function. 

(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, budgetary resources of FLRA in accordance with the Chief 

Financial Officers Act of 1990 and the Government Management Reform Act of 1994. The 

financial statements have been prepared from FLRA financial records in accordance with U.S. 

Generally Accepted Accounting Principles (GAAP) using guidance issued by the Federal 
Financial Section 45

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

prescribed in OMB Circular A-136, Financial Reporting Requirements. These financial 

statements include all funds and accounts under the control of FLRA. 

The accounting structure of Federal Government 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. 

The financial statements should be read with the realization that they are for a component of the 

United States Government, a sovereign entity. One implication of this is that liabilities cannot be 

liquidated without legislation that provides the resources and legal authority to do so. 

(c)Budget Authority

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

for necessary 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, FLRA places internal restrictions on fund expenditures to ensure the efficient and 

proper use of all funds. 

(d)Fund Balance with Treasury 

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

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

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

(e)Accounts Receivable

Accounts Receivable consists of amounts due from other federal entities and from current and 

former employees and vendors. Amounts due from the public are stated net of an allowance for 

uncollectible accounts that is based on an analysis of outstanding receivables balances and past 

collection experience. No allowance is established for intra-governmental receivables, as they 

are considered fully collectible from other Federal agencies. 

(f)Property, Plant, and Equipment

This category consists of equipment and vehicles and internal use software. The basis for 

recording purchased General Property and Equipment (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. SFFAS No. 

10, Accounting for Internal Use Software, provides accounting standards for internal use 

software used by each agency. 
46 Performance and Accountability Report – Fiscal Year 2009

The standards provide for capitalized property to continue to be reported on the Balance Sheets. 

P&E that are not capitalized because they are under the capitalization threshold are expensed in 

the year of acquisition. 

Major alterations and renovations are capitalized, while maintenance and repair costs are charged 

to expense as incurred. FLRA’s capitalization threshold was $3,500 for individual purchases. 

Bulk purchases of similar items, which individually are worth less than $3,500, but collectively 

are worth more than $30,000 are also capitalized using the same property and equipment 

categories and useful lives as capital acquisitions. Service lives are shown below: 

Description Years

Computer equipment 5

Software 3

Office equipment 7

Office furniture 15

Leasehold Improvements Life of Lease

(g)Liabilities

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

result of transactions or events that have already occurred. No liability can be paid, however, 

absent an appropriation. Liabilities for which an appropriation has not been enacted are, 

therefore, classified as not covered by budgetary resources, and there is no certainty that the 

appropriation will be enacted. Also, the Government, acting in its sovereign capacity, can 

abrogate liabilities. 

Liabilities that are covered by budgetary resources consist of intra-governmental and public 

accounts payable and accrued funded payroll. Liabilities not covered by budgetary resources 

consist of unfunded Federal Employees Compensation Act (FECA) for 2009 and 2008 as well as 

unfunded actuarial FECA liabilities. Liabilities not covered by budgetary resources also include 

unfunded leave. 

(h)FECA Liabilities 

FLRA’s FECA Liabilities consist of two factors as defined as follows: 

Accrued FECA Liability 

A liability is recorded for actual and estimated future payments to be made for workers’ 

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

because Agencies will reimburse the Department of Labor (DOL) two years after the 

actual payment of expenses. Future revenues will be used for their imbursement to DOL. 

The liability consists of (1) the net present value of estimated future payments calculated 

by the DOL, and (2) the un-reimbursed cost paid by DOL for compensation to recipients 

under the FECA. 
Financial Section 47

Actuarial FECA Liability 

An estimated actuarial liability for future Workers’ Compensation benefits is included. 

The liability estimate is based on the Department of Labor’s FECA actuarial model that 

takes the amount of benefit payments over the last 9 to 12 quarters and calculates the 

annual average of payments for medical expenses and compensation. This average is 

then multiplied by the liabilities to benefits paid ratios for the whole FECA program for 

FY2009. The ratios may vary from year to year as a result of economic assumptions and 

other factors but the model calculates a liability approximately 11 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 CSRS-covered employee is transferred to the Office of 

Personnel Management upon the retirement of that individual. No credit is given for sick leave 

balances upon the retirement of FERS-covered employees. 

(j)Accounts Payable and Other Accrued Liabilities 

Accounts Payable and Accrued Liabilities represents a probable future outflow or other sacrifices 

of resources as a result of past transactions or events. Liabilities are recognized when they are 

incurred, regardless of whether they are covered by available budgetary resources. FLRA 

liabilities cannot be liquidated without legislation that provides resources to do so. Since the 

FLRA is a component of the U.S. Government, a sovereign entity, payments of all liabilities 

other than contracts can be abrogated by the sovereign entity. 

(k)Net Position 

The components of Net Position are defined as follows: 

Unexpended appropriations include undelivered orders and unobligated balances. Unobligated 

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

cumulative obligations from the amount available for obligation. 

Cumulative results of operations represent the net results of operations since inception, the 

cumulative amount of prior period adjustments, the remaining book value of capitalized assets, 

and future funding requirements. 

(l)Retirement Plans 

FLRA’s employees participate in the Civil Service Retirement System (CSRS) or the Federal 

Employee’s Retirement System (FERS). 
48 Performance and Accountability Report – Fiscal Year 2009

Civil Service Retirement System 

For employees hired prior to January 1, 1984, FLRA withholds 7.0 percent of each 

employee’s salary and contributes 7.0 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). Starting in 2007, 

employees were no longer limited to a salary percentage, and the regular IRS limit was 

$15,500. In 2008, the regular IRS limit was $15,500; that limit was increased to 

$16,500. for 2009. FLRA is not required to and does not contribute any matching 

amounts for CSRS employees. 

Federal Employees Retirement System 

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

and Social Security automatically cover most employees hired after December 31, 1983. 

Employees hired before January 1, 1984 elected either to join FERS and Social Security 

or to remain in CSRS. 

FLRA withholds 6.2 percent in an old age survivors and disability insurance up to a 

specified wage ceiling and 0.8 percent of an employee’s gross earnings for retirement. 

FLRA matches the retirement withholdings with a contribution equal to 11.2 percent of 

the employee’s taxable salaries. 

All employees are eligible to contribute to the TSP. For those employees participating in 

FERS, a TSP account is automatically established. FLRA is required to make a 

mandatory contribution of 1.0 percent of the base salaries of all employees under FERS. 

FLRA is required to match the employee’s contribution up to a maximum of 5.0 percent 

of their salaries. Matching contributions are not made to the TSP accounts established by 

CSRS employees. 

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

the Social Security program after retirement. CSRS Federal Employees who are 65 

and/or older are eligible for Social Security payments (even if they have not retired). In 

these instances, FLRA remits the employer’s share of the required contribution. 

FLRA does not report on its financial statements information pertaining to the retirement 

plans covering its employees. Reporting amounts such as plan assets, accumulated plan 

benefits, and related unfunded liabilities, if any, is the responsibility of the Office of 

Personnel Management (OPM). 

(m)Imputed Financing from Costs Absorbed by Others 

The FASAB’s SFFAS Number 5, ―Accounting for Liabilities of the Federal Government,‖ 

requires that employer agencies recognize the full cost of pensions, health, and life insurance 

benefits, during their employees’ active years of service. OPM, as the 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 
Financial Section 49

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 Change in Net 

Position and the Statement of Net Cost, respectively. 

(n)Revenue and Other Financing Sources

FLRA’s revenues are derived from reimbursable agreements and direct appropriation. 

Reimbursable Work Agreements (Exchange) — FLRA recognizes reimbursable work 

agreement revenue when earned, i.e., goods that have been delivered or services 

rendered. Each reimbursable work agreement specifies the dollar value of the agreement 

and is based on estimated resources needed to perform the specified services, whether it 

is personnel services to include base pay, overtime and benefits, or travel and per diem. 

Annual Appropriations (Financing Source) — FLRA receives an annual salaries and 

expenses appropriation from Congress. Annual appropriations are used, within statutory 

limits, for salaries and administrative expenses and operating and capital expenditures for 

essential personal property. Appropriations are recognized as non-exchange revenues at 

the time the related program or administrative expenses are incurred. Appropriations 

expended for capitalized property and equipment are recognized as expenses when an 

asset is consumed in operations. The annual appropriation for FY2008 was $23,641,000. 

The annual appropriation for FY2009 was $22,674,000. 

(o)Expired Accounts and Cancelled Authority 

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

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

called the expired account. For five fiscal years, the expired account is available for expenditure 

to liquidate valid obligations incurred during the unexpired period. Adjustments are allowed to 

increase or decrease valid obligations incurred during the unexpired period but not previously 

reported. At the end of the fifth expired year, the expired account is cancelled and any remaining 

money is returned to Treasury. 

(p)Transactions with Related Parties 

In the course of its operations, the FLRA has relationships and conducts financial transactions 

with numerous Federal agencies. The most prominent of these relationships are with the United 

States Department of the Treasury, the Department of the Interior’s National Business Center, 

Health and Human Services, and the General Services Administration. 

(q)Contingencies 

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

to possible gain or loss to the Agency. The uncertainty will ultimately be resolved when one or 

more future events occur or fail to occur. With the exception of pending, threatened or potential 

litigation, a contingent liability is recognized when a past transaction or event has occurred, a 

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

outflow or sacrifice of resources is measurable. For pending, threatened or potential litigation, a 

liability is recognized when a past transaction or event has occurred, a future outflow or other 
50 Performance and Accountability Report – Fiscal Year 2009

sacrifice of resources is likely, and the related future outflow or sacrifice of resources is 

measurable. 

(r)Use of Estimates 

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

estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 

of contingent liabilities at the date of the financial statements as well as the reported amounts of 

revenues and expenses during the reporting period. Actual results could differ from those 

estimates. 

(s)Advances and Prepayments 

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

reimbursable agreements, subscriptions, and payments to contractors and employees. Payments 

made in advance of the receipt of goods and services are recorded as advances or prepayments at 

the time of the prepayments and recognized as expenses when the related goods and services are 

received.
Financial Section 51

NOTE 2 – FUND BALANCE WITH TREASURY 

Fund balances with Treasury consisted of the following at September 30, 2009 and September 

30, 2008 (In Dollars): 

Fund Balances: 2009 2008

Appropriated Funds (General) $ 10,156,869 $ 10,213,975 

Other Fund Types $ 73 

Total Fund Balance with Treasury $ 10,156,942 $ 10,213,975 

Status of Fund Balance with Treasury

Unobligated Balance:

Available $ 81,715 $ 2,452,205 

Unavailable 6,399,492 5,511,497 

Obligated Balance Not Yet Disbursed 3,675,662 2,250,273 

Non-Budgetary FBWT 73 

Total Fund Balance with Treasury $ 10,156,942 $ 10,213,975 

U.S. Government cash is accounted for on an overall consolidated basis by Treasury. The 

amounts shown on the Balance Sheets represent FLRA right to draw on Treasury for valid 

expenditures. The fund balance as shown on FLRA records is reconciled monthly with 

Treasury’s records. 

NOTE 3 – ACCOUNTS RECEIVABLE 

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

Federal agencies (intra-governmental) or by the public. 

The following tables show the status of accounts receivable as of September 30, 2009 and 2008 

respectively (In Dollars): 

2009 2008

Accounts Receivable from the Public:

Billed:

 Current $ 8,930 $ 9,985 

Total Accounts Receivable 8,930 9,985 

Allowance for Uncollectible Accounts - -

Accounts Receivable from the Public, Net $ 8,930 $ 9,985 
52 Performance and Accountability Report – Fiscal Year 2009

Amounts due from various Federal agencies as of September 30, 2009 and 2008 are shown 

below (In Dollars): 

2009 2008

Accounts Receivable from Federal Agencies:

Accounts Receivable $ 10,591 -

Total Accounts Receivable 10,591 -

Allowance for Uncollectible Accounts - -

Accounts Receivable from Federal Agencies, Net $ 10,591 $ -

2009 2008

Department of Agriculture 3,460 

Department of Defense 1,469 -

Environmental Protection Agency 1,226 

Department of Energy $ 1,023 -

Department of the Army 831 

Department of Housing and Urban Development 712 

Department of Veterans Affairs 668 -

Department of Justice $ 662 -

Department of the Navy 540 

Total Accounts Receivable from Federal Agencies $ 10,591 $ -

NOTE 4 – PROPERTY AND EQUIPMENT 

Capitalized property and equipment, net of accumulated depreciation, consisted of the following 

as of September 30, 2009 and September 30, 2008 (In Dollars): 

Service Life Acquisition 

Value

Accumulated 

Depreciation

2009 Net 

Book Value

2008 Net 

Book Value

Construction in Progress $ 101,555 $ - $ 101,555 $ 101,555 

Computer Equipment 5 yrs 463,973 (307,098) 156,875 139,502 

Office Equipment 7 yrs 339,042 (230,343) 108,699 139,502 

Office Furniture 15 yrs 526,039 (271,349) 254,690 295,078

Software 3 yrs 301,636 (254,930) 46,706 16,733 

Leashold Improvements Life of Lease 226,580 (226,580) - -

Total $ 1,958,825 $ (1,290,300) $ 668,525 $ 692,370 
Financial Section 53

NOTE 5 – LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

(a) Intragovernmental and With the Public (In Dollars):

2009 2008

Intragovernmental:

 FECA Liabilities 256,355 262,921 

Total Intragovernmental 256,355 262,921 

Federal Employee Benefits-FECA Actuarial Liability 1,135,860 1,093,307 

Unfunded Annual Leave 1,286,960 1,249,890 

Total Liabilities Not Covered by Budgetary Resources $ 2,679,175 $ 2,606,118 

Total Liabilities Covered by Budgetary Resources 1,131,713 1,455,939 

Total Liabilities $ 3,810,888 $ 4,062,057 

(b) Other Information

Unfunded Payroll Liabilities consists of workers’ compensation claims payable to the 

Department of Labor (DOL), which will be funded in a future period, and an unfunded estimated 

liability for future workers’ compensation claims based on data provided from the DOL. 

Unfunded FECA liabilities for 2009 and 2008 were $256,355 and $262,921, respectively. The 

actuarial calculation is based on benefit payments made over 12 quarters, and calculates the 

annual average of payments. The actuarial FECA liabilities for 2009 and 2008 were $1,135,860 

and $1,093,307 respectively. For medical expenses and compensation this average is then 

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

Unfunded Annual Leave represents a liability for earned leave and is reduced when leave is 

taken. At year end, the balance in the accrued annual leave account is adjusted to reflect the 

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

funding sources and, accordingly, is reflected as a liability not covered by budgetary resources. 

Sick and other leave is expensed as taken. 

All other liabilities are considered to be covered by budgetary resources. 

NOTE 6 – OPERATING LEASES 

FLRA has operating leases for rental of office space and office equipment. As a Federal 

Agency, the FLRA is not liable for any lease terms beyond one year. FLRA anticipates that 

space levels consistent with FY2009 will be required for the next five years. 

Future minimum lease payments due under leases of government-owned property as of 

September 30, 2009, are as follows (In Dollars): 
54 Performance and Accountability Report – Fiscal Year 2009

Office

Fiscal Year Equipment Building Total

2010 $ 8,237 $ 2,158,166 $ 2,166,403 

2011 8,237 1,939,565 $ 1,947,802 

2012 8,237 1,691,716 $ 1,699,953 

2013 8,237 722,290 $ 730,527 

2014 5,990 39,234 $ 45,224 

Thereafter 0 80,957 $ 80,957 

Total Future 

Lease 

Payments $ 38,938 $ 6,631,928 $ 6,670,866 

NOTE 7 – COMMITMENTS 

FLRA is a party in various administrative proceedings, legal actions, and claims brought by or 

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

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

FLRA. The FLRA has examined its obligations related to cancelled FY 2004 authority and 

believes that it has no outstanding commitments that will require future resources. 

NOTE 8 – APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred reported on the Statement of Budgetary Resources in 2009 and 2008 

consisted of the following (In Dollars): 

2009 2008

Direct Obligations:

 Category A $ 23,972,535 $ 22,846,737 

NOTE 9 – UNDELIVERED ORDERS AT THE END OF THE PERIOD 

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

2009 and 2008, is 2,544,023 and $794,183, respectively 

NOTE 10 – EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND 

THE BUDGET OF THE U.S. GOVERNMENT 

Statement of Federal Financial Accounting Standards 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 
Financial Section 55

Resources (SBR) and the actual balances published in the Budget of the United States 

Government (President’s Budget). The President’s Budget can be found at the OMB website: 

http://www.whitehouse.gov/omb. 

A comparison of FY2008 Statement of Budgetary Resources to the President’s Budget is shown 

in the following table (Dollars in Thousands). 

Amount per 

Statement of 

Budgetary 

Resources

Amount per 

President's 

Budget Difference Explanation 

Budgetary Resources: 

Unobligated balance, beginning of Fiscal Year $ 7,964 $ -

 

7,964 A, B 

Status of Budgetary Resources: 

Unobligated balance not available 6,399 

Total Unobligated balance available & unavailable 7,964 2,000 

 

5,964 A, C 

Total Status of Budgetary Resources $ 30,454 $ 2,000 

Following is an explanation of those reason codes from the table above: 

A. Rounding differences as a result of the President’s Budget being rounded in millions 

of dollars while the Statement of Budgetary Resources is rounded in thousands of 

dollars. 

B. Unobligated balance, beginning of Fiscal Year amounts incorrect in the President’s 

Budget. Amount on the Statement of Budgetary Resources matches the final SF132, 

Apportionment and Reapportionment Schedule. 

C. Line items are not reported on the President’s Budget.

NOTE 11 – RECONCILIATION OF NET COST OF OPERATIONS 

(PROPRIETARY) TO BUDGET (FORMERLY THE STATEMENT OF 

FINANCING)

In fiscal year 2006 this reconciliation was presented as a fifth statement, the statement of 

financing. In accordance with OMB Circular A-136, revised June 2007, presentation 

requirement for this information is now a footnote disclosure. Details of the relationship 

between budgetary resources obligated and the net costs of operations for the fiscal year 2009 

and fiscal year 2008 years ending September 30 are shown in the table below (In Dollars). 
56 Performance and Accountability Report – Fiscal Year 2009

Reconciliation of Net Cost of Operations (Proprietary) to Budget

2009 2008

Resources Used to Finance Activities

Budgetary Resources Obligated

Obligations Incurred $ 23,972,535 $ 22,846,737 

Budgetary Resources from Offsetting Collections

Spending Authority from Offsetting Collections

Change in Receivable from Federal 

Sources $ - (23,955)

Recoveries of Prior Year Unpaid Obligations $ (249,344) (432,139)

Other Financing Resources

Imputed Financing Sources $ 1,243,346 1,242,769 

Total Resources Used to Finance Activity $ 24,966,537 23,633,412 

Resources Used That Do Not Fund Net Cost of Operations

Budgetary Obligations and Resources not in the Net Cost of 

Operations

Change in Undelivered Orders $ (1,765,996) 456,746 

Assets Capitalized $ (102,511) (101,555)

Components of the Net Cost of Operations which do not Generate or Use Resources in the Reporting 

Period

Revenues without Current Year Budgetary Effect

Other Financing Sources Not in the Budget $ (1,243,346) (1,242,769)

Costs without Current Year Budgetary Effect

Depreciation and Amortization $ 126,355 195,906 

Future Funded Expenses $ 30,505 (170,447)

Imputed costs $ 1,243,346 1,242,769 

Bad Debt Expense $ - 10,198 

Other Expenses Not Requiring Budgetary Resources $ - 47,917 

$ 46,572 

Net Cost of Operations $ 23,301,462 $ 24,072,177 
Other Accompanying Information 57

OTHER ACCOMPANYING INFORMATION 

Other Accompanying Information 59

MANAGEMENT AND PERFORMANCE CHALLENGES 

IDENTIFIED BY THE INSPECTOR GENERAL 
60 Performance and Accountability Report – Fiscal Year 2009
Other Accompanying Information 61

SUMMARY OF FINANCIAL STATEMENT AUDIT AND 

MANAGEMENT ASSURANCES 

TABLE 1: SUMMARY OF FINANCIAL STATEMENT AUDIT 

Opinion Unqualified

Restatement No

Material 

Weaknesses

Beginning

Balance New Resolved Consolidated Ending Balance

0 0 0 0 0

TABLE 2: SUMMARY OF MANAGEMENT ASSURANCES 

Effectiveness of Internal Control Over Financial Reporting (FMFIA Para. 2)(FMFIA Para. 2)

Statement of 

Assurance Qualified

Material 

Weaknesses

Beginning

Balance New Resolved Consolidated Ending Balance

Beginning

Balance

0 0 0 0 0 0

Total Material 

Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control Over Operations (FMFIA Para. 2)

Statement of 

Assurance Unqualified

Material 

Weaknesses

Beginning

Balance New Resolved Consolidated Ending Balance

Beginning

Balance

0 0 0 0 0 0

Total Material 

Weaknesses 0 0 0 0 0 0

Conformance with Financial Management System Requirements (FMFIA Para. 4)

Statement of 

Assurance Unqualified

NonConformances

Beginning

Balance New Resolved Consolidated Ending Balance

Beginning

Balance

0 0 0 0 0 0

Total NonConformances 0 0 0 0 0 0

Appendix A 63

APPENDICES 

Appendix A 65

APPENDIX A: ACRONYMS

ADR Alternative Dispute Resolution

ALJ Administrative Law Judges

ARB Arbitration (type of FLRA case)

CBJ Congressional Budget Justification

CFO Chief Financial Officer

CIO Chief Information Officer

CIP Case Intake Processing

CSRS Civil Service Retirement System

CTS Case Tracking System

D&O Decision & Order

DOL Department of Labor

FASAB Financial Accounting Standards Advisory Board

FECA Federal Employees Compensation Act

FERS Federal Employees Retirement System

FFMIA Federal Financial Management Improvement Act

FISMA Federal Information Security Management Act

FLRA Federal Labor Relations Authority

FMCS Federal Mediation and Conciliation Service

FMFIA Federal Managers’ Financial Integrity Act

FSIP Federal Service Impasse Panel

FY Fiscal Year

GAAP Generally Accepted Accounting Principles

GC General Counsel

GMRA Government Management Reform Act

GPRA Government Performance and Results Act

MD&A Management’s Discussion and Analysis

N/A Not Applicable

NEG Negotiability (Type of FLRA case)

NLRA National Labor Relations Act

OALJ Office of Administrative Law Judges

OGC Office of General Counsel

OMB Office of Management and Budget

OPM Office of Personnel Management

P&E Property & Equipment
66 Performance and Accountability Report – Fiscal Year 2009

REP Representation (Type of FLRA Case)

SFFAS Statement of Federal Financial Accounting Standards

TSP Thrift Savings Plan

UAE Union of Authority Employees

ULP Unfair Labor Practice (Type of FLRA case)

US C United States Code
ACKNOWLEDGMENTS

This Financial Report was produced with the expertise and talents of FLRA staff. To our 

dedicated staff we offer our sincerest thanks and acknowledgement. 

The Performance and Accountability Report for Fiscal Year 2009 is published by the

Federal Labor Relations Authority

An electronic version is available on the World Wide Web at

http://flra.gov

Please e-mail SSpooner@flra.gov with comments, suggestions, or requests
68 Performance and Accountability Report – Fiscal Year 2009

FEDERAL LABOR RELATIONS AUTHORITY 

1400 K Street, N.W. 

Washington, DC 20424 

www.flra.gov