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

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U.S. FEDERAL LABOR RELATIONS AUTHORITY

PERFORMANCE AND ACCOUNTABILITY REPORT
UNITED STATES

FEDERAL LABOR RELATIONS AUTHORITY

Performance and Accountability Report

FISCAL YEAR 2014
TABLE OF CONTENTS

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

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

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

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

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

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

Financial Analysis..........................................................................................................................21

Management Assurances ...............................................................................................................24

PERFORMANCE GOALS AND RESULTS......................................................25

Goal 1: Provide Timely Review and Disposition of Unfair-Labor-Practice Cases......................25

Goal 2: Provide Timely Review and Disposition of Representation Cases..................................27

Goal 3: Provide Timely Review and Disposition of Arbitration Cases........................................28

Goal 4: Provide Timely Review and Disposition of Negotiability Cases ....................................29

Goal 5: Provide Timely Review and Disposition of Bargaining-Impasse Cases .........................30

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

Minimize and/or Resolve Labor-Management Disputes................................................31

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

Enhance Program Achievement......................................................................................34

Goal 8: Develop, Manage, and Utilize the FLRA’s Human Capital to Meet Program Needs.....35

Verification and Validation of Performance Data .........................................................................37

PRINCIPAL FINANCIAL STATEMENTS .......................................................38

Message from the Chief Financial Officer.....................................................................................38

Balance Sheet.................................................................................................................................39

Statement of Net Cost ....................................................................................................................40

Statement of Changes in Net Position ...........................................................................................41

Statement of Budgetary Resources................................................................................................42

Notes to the Financial Statements..................................................................................................43

Report of Independent Auditors.....................................................................................................53

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

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

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

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

Management’s Response ...............................................................................................................60

Improper Payments Elimination and Recovery .............................................................................60
1

MESSAGE FROM THE CHAIRMAN

I am pleased to submit the FY 2014 Performance and Accountability Report 

for the Federal Labor Relations Authority (FLRA). As I discuss in more 

detail below, overall, FY 2014 was a strong year for the FLRA. The agency 

faced head-on the unprecedented challenges that FY 2013 brought, and that 

the agency continued to experience in FY 2014, and it identified and pursued 

opportunities to achieve the goal of improved and sustainable performance 

excellence throughout the FLRA. The FLRA encompasses, in one small 

agency, the investigator, prosecutor, adjudicator, and interest arbitrator for 

labor-management disputes involving 1.2 million federal employees. And we are committed to 

fostering a productive and effective federal government, providing leadership in establishing 

policies and guidance related to federal-sector labor-management relations, and ensuring 

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

I am proud to report that, in many respects, the FLRA successfully overcame its challenges, 

delivering on its mission to the federal-sector labor-management community, and finding ways 

to be more innovative and collaborative in the delivery of its services. In this connection, the 

Office of the General Counsel (OGC) investigated and resolved more unfair-labor-practice 

(ULP) charges than it has in many years. The Federal Service Impasses Panel (FSIP) continued 

to resolve bargaining impasses at a brisk pace. And the FLRA, as a whole, delivered 225 

training, outreach, and facilitation sessions to over 5,100 customers, continuing not only its 

commitment to the success of President Obama’s Executive Order 13522, Creating LaborManagement Forums to Improve Delivery of Government Services, but also to more general 

training regarding rights and responsibilities under the Statute. 

In addition, alternative-dispute-resolution (ADR) activities throughout the agency continued to 

be extremely successful. In the OGC and the FSIP components, ADR is deeply embedded in the 

way all cases are processed. Indeed, the sheer volume of ULP charges filed in the OGC 

(approximately 4,700 in FY 2014) would overwhelm that component without the voluntary 

settlement of so many of these charges with facilitation by the employees in the Regional Offices 

where they are processed. In the Authority component, ADR is available in every ULP case that 

reaches the Office of Administrative Law Judges (OALJ), as well as in every negotiability case 

and every arbitration case before the Authority. Of course, making ADR available and making it 

work are two different things. And I am pleased to report that, throughout the FLRA, we did 

both. In the OGC, for example, approximately 94 percent of the cases in which the parties 

agreed to use ADR settled as a result. In the OALJ, the number is 95 percent. Parties filing 

negotiability cases agreed to use ADR services provided by the Authority’s Collaboration and 

Alternative Dispute Resolution Office (CADRO) in 80 percent of cases, and those parties 

reached at least partial resolution in 100 percent, and full resolution in 96 percent, of those cases. 

Moreover, I proudly note, on behalf of us all, that despite both the pressures experienced by all 

federal agencies and those that are unique to the FLRA, we realized dramatic increases in, and 

continued to rank at or near the very top of, several categories in the Federal Employee 

Viewpoint Survey administered by the Office of Personnel Management. The FLRA’s 2014 

positive ratings increased from 2013 in 61 items. And the FLRA’s Human Capital Assessment 
2

and Accountability Framework index scores increased in every category – by as much as 7 

percent over 2013 – with 100 percent of FLRA respondents reporting that they are willing to put 

in extra effort to get a job done; 97 percent indicating that they are being held accountable for 

achieving results; 96 percent knowing how their work relates to the agency’s goals and priorities; 

and 94 percent knowing what is expected of them on the job. Further, the FLRA was ranked in 

the top five for “New IQ Performance,” which measures workplace inclusiveness. These 

responses reflect the FLRA’s progress towards meeting government-wide human-capital 

objectives and their relationship to organizational performance. The FLRA’s dramatic and 

sustained improvement in employee engagement over the last five and a half years reflects the 

commitment of leadership – at all levels and throughout the agency – to manage the agency with 

transparency and accountability, and to truly and meaningfully engage our employees. 

Of course, there were challenges in FY 2014. Beginning in January 2013 and continuing until 

mid-November 2013, the FLRA’s Authority component lacked a quorum of Members. As a 

result, the Authority was unable to accomplish a key function – the issuance of decisions 

resolving disputes – for the final 9 months of FY 2013 and the first (nearly) 2 months of FY 

2014. Naturally, as cases continued to be filed during this period, and as decisions in those cases 

could not issue, a backlog arose. And, as a direct result of sequestration, the FLRA (rather than 

furloughing employees) did not fill vacated positions during FY 2013, thereby opening FY 2014 

with 22 vacant positions – well over 10 percent of the workforce. Indeed, 2 of the 22 positions 

were Authority Members! Adding to the mix of challenges, the FLRA headquarters office 

consolidated from three floors of an office building to two floors. 

I am pleased to report that the consolidation of space was, by all accounts, a huge success, 

resulting in more efficient use of space, decreased rental costs over time, and increased esprit de 

corps among employees. Further, over the course of the fiscal year, virtually all vacant positions 

were filled, and the FLRA addressed office-specific mission-performance needs resulting from 

the vacancies by reallocating attorney positions, utilizing internal details and temporary 

appointments, and contracting for time-specific paralegal support. Moreover, the Authority 

component has begun to tackle its backlog – which it is committed to eliminating in FY 2015 –

through implementation of a case-issuance strategy. 

All of these accomplishments were achievable because of the high level of collaboration and 

dedication among the FLRA’s Presidential leadership, career managers, employees, and 

employees’ representative union. It is only through good management practices, the strategic 

engagement of its workforce in a way that encourages high performance and innovation, and a 

deep commitment to the FLRA’s mission that the FLRA successfully seized the opportunities 

presented by its challenges. FY 2014 is a true example of the FLRA’s resiliency and ability to 

again tackle difficult and complex obstacles. 

Carol Waller Pope

Chairman

Federal Labor Relations Authority

November 17, 2014
3

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND AND MISSION

The U.S. Federal Labor Relations Authority (FLRA) is responsible for establishing policies and 

guidance regarding the labor-management-relations program for 2.1 million non-Postal, federal 

employees worldwide, approximately 1.2 million of whom are represented in 2,200 bargaining 

units. The FLRA was created by Title VII of the Civil Service Reform Act of 1978, also known 

as the Federal Service Labor-Management Relations Statute (the Statute). The agency’s genesis 

dates from the issuance of Executive Order 10988 by President Kennedy in 1962. In 2012, the 

FLRA celebrated the 50th anniversary of the Order, which established the first government-wide, 

labor-management-relations program within the federal government. In 1970, President Nixon 

established the Federal Labor Relations Council, by Executive Order 11491, to administer the 

federal labor-management-relations program and to make final decisions on policy questions and 

major disputes arising under Executive Order 10988. Executive Order 11491, as amended, was 

the basis for President Carter’s proposal to Congress to create the FLRA as an independent 

agency.

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

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

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

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

respect to conditions of employment through representatives chosen by the employees.

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

federal government by resolving and assisting in the prevention of labor-management disputes in 

a manner that gives full effect to the collective-bargaining rights of employees, unions, and 

agencies. Although the FLRA is a small agency, accomplishing its mission – including timely 

and quality resolution of labor-management disputes – is essential for program performance 

government-wide. If a labor-management dispute remains unresolved for too long, then mission 

accomplishment at the affected agencies likely will suffer.

ORGANIZATIONAL STRUCTURE

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

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

Foreign Service Impasse Disputes Panel and the Foreign Service Labor Relations Board.
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The Authority

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

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

terms, and one Member is designated by the President to serve as Chairman. The Chairman acts 

as the agency’s chief executive and administrative officer. The Authority is empowered to: 

resolve disputes over the negotiability of proposals made in collective bargaining; decide 

whether conduct alleged in a complaint constitutes an unfair labor practice (ULP); resolve 

exceptions to grievance-arbitration awards; and review decisions of Regional Directors in 

representation disputes over union elections and unit determinations.

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

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

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

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

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

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

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

Courts. In this connection, parties aggrieved by certain Authority orders may institute an action 

for judicial review within 60 days after the order issues. The Authority may also seek 
5

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

Appeals or Federal District Courts. The Office of the Solicitor also serves as the agency’s 

in-house counsel, providing legal advice to all FLRA components, and performs various 

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

as the Designated Agency Ethics Official.

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

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

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

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

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

maximizing the efficiency and integrity of agency programs. In fulfilling these responsibilities 

and objectives, the Inspector General conducts and supervises investigations, internal reviews, 

audits, and evaluations of the programs and operations of the agency. The Inspector General 

communicates the results of investigations and assessments to FLRA management, the Congress, 

other oversight entities, and the public as appropriate. Generally, results are communicated in 

formal reports and contain findings and recommendations aimed at correcting any deficiencies 

identified and promoting efficiency and effectiveness in agency programs and operations. The 

Inspector General also manages a hotline to provide employees and the public with a direct 

means for communicating information on potential fraud, waste, or abuse.

The Office of the General Counsel

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

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

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

and prosecution of unfair-labor-practice cases. The General Counsel’s determinations in these 

matters are final and unreviewable. The General Counsel has direct authority over, and 

responsibility for, all employees in the Office of the General Counsel (OGC), including those in 

the FLRA’s Regional Offices (the field). Approximately 50 percent of the FLRA’s staff is 

employed in the field, where all ULP charges and representation petitions are filed. The 

Regional Offices, on behalf of the General Counsel, investigate and resolve alleged ULPs, file 

and prosecute ULP complaints, effectuate compliance with settlement agreements and Authority 

Orders, and provide training and alternative-dispute-resolution (ADR) services. In addition, 

through delegation by the Authority, the Regional Offices investigate and resolve representation 

cases and conduct secret-ballot elections.

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

Headquarters management provides administrative oversight; develops policies, guidance, 

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

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

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

provides leadership and management expertise for the respective region.
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The Federal Service Impasses Panel

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

agencies and unions representing federal employees, arising from negotiations over conditions of 

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

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

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

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

request the FSIP’s assistance.

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

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

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

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

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

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

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

appealed to any court.

STRATEGIC AND PERFORMANCE-PLANNING FRAMEWORK

Over the last several years, through a comprehensive review – by agency leadership and the 

Union of Authority Employees, the employees’ representative organization – of its operations, 

staffing, work processes, resource allocations, and performance, the FLRA has established 

strategies and goals that are designed to maximize the delivery of agency services throughout the 

federal government. The FLRA has engaged in a continuous assessment of performance and 

Atlanta Regional 

Office

Boston Regional 

Office

Chicago Regional 

Office

Dallas Regional 

Office

Denver Regional 

Office

San Francisco 

Regional Office

Washington DC 

Regional Office
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other data to ensure that it is accomplishing its mission, effectively and efficiently, and that it is 

promoting innovation throughout the agency. 

The FLRA’s performance-planning framework is based on the agency’s FY 2010 - 2015 

Strategic Plan, which is now in the process of revision, and is supported by the agency’s Annual 

Performance Plan, which establishes the agency’s annual performance goals. The Annual 

Performance Plan reflects the agency’s commitment to establishing meaningful measures that 

will assist in assessing performance outcomes, aligning resources, and effectively identifying 

staffing and training needs. The Annual Performance Plan also demonstrates the FLRA’s 

ongoing commitment to organizational excellence. 

Consistent with Office of Management and Budget (OMB) Memorandum No. 14-06, Guidance 

for Providing and Using Administrative Data for Statistical Purposes, the FLRA continually 

monitors its progress in accomplishing the goals and measures set forth in the Annual 

Performance Plan. This ongoing, agency-wide review is conducted on a monthly basis with 

distribution of the Monthly Analysis of Performance and Status (MAPS) Report, which contains 

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

and agency management. The data contained in the MAPS Report is examined in a variety of 

forums, and the status toward meeting the agency’s case-processing performance goals are 

shared with all employees through the weekly, agency-wide newsletter. At the component and 

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

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

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

disposition reports, which track the number, age, and resolution type of every closed case within 

the OGC. 

The analysis and assessment of these reports drive, among other things, decisions to target 

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

geographical locations; adjustments in workload through case transfers at the national, regional, 

and office level; and reallocation of resources, including use of details, contract support, and 

temporary hires. As to the latter point, after identifying a backlog of cases awaiting decision in 

the OALJ, the FLRA reallocated an attorney position to the office; utilized internal details; 

created and filled an additional, temporary not-to-exceed, six-month attorney appointment; and 

contracted for time-specific paralegal support to increase mission performance in that office.

FLRA Strategic Goals

1. Achieve superior customer service.

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

3. Advance performance through organizational and management excellence.

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

satisfaction.

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

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

and its attendant costs by helping parties resolve their own disputes through collaboration, ADR, 
8

and labor-management-cooperation activities. These efforts are further supported by the FLRA’s 

focus on internal improvements in information technology (IT) and more effective and efficient 

use of human capital. 

FY 2014 Performance Goals

1. Provide timely review and disposition of unfair-labor-practice cases.

2. Provide timely review and disposition of representation cases.

3. Provide timely review and disposition of arbitration cases.

4. Provide timely review and disposition of negotiability cases.

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

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

and/or resolve labor-management disputes.

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

program achievement.

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

Timeliness

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

orderly, efficient, and effective change within the federal government. In large part, the FLRA 

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

performance and government operations. Timely dispute resolution – or dispute avoidance – is 

critical to this endeavor.

The FLRA facilitates improvements in performance, government-wide, that have inevitable effects 

on employee working conditions and implicate the bargaining rights of the more than 1.2 million 

employees represented by labor organizations. Unless management and labor can reach timely 

agreements or, failing that, have their disagreements resolved expeditiously, mission performance 

will suffer. This is particularly relevant now as federal agencies are making significant 

adjustments and changes in how they perform their missions in response to the budgetary and 

policy challenges that they are facing.

Alternative Dispute Resolution and Education

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

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

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

case, at every step, results in better, faster outcomes for the parties and the FLRA. For this reason, 

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

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

(FMCS) and the Department of Veterans Administration – to train large numbers of practitioners, 

and supporting labor-management forums, pursuant to Executive Order 13522, Creating LaborManagement Forums to Improve Delivery of Government Services.
9

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

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

statutory rights and responsibilities. Timely and efficient case processing is furthered by FLRA 

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

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

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

web-based training modules; and case outlines, manuals, and subject-matter guides that are easily 

accessible on www.flra.gov and that have been developed to assist members of the federal 

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

collaboration and ADR techniques – along with other training, outreach, and facilitation services –

to assist parties in minimizing and resolving labor-management disputes significantly reduces the 

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

missions and delivering effective and efficient government services.

Information Technology

IT and automation of agency processes continue to be key areas of focus for the agency. Both 

are fundamental for ensuring the efficiency and effectiveness of the FLRA, as measured by the 

agency’s ability to meet its annual performance goals. The agency continues to improve its 

efficiency and the customer-service experience by engaging in new and innovative ways to 

conduct business, such as through electronic case filing (eFiling). In addition, the agency has 

placed a significant emphasis on IT modernization to ensure that its equipment and infrastructure 

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

The FLRA’s eFiling system is an important e-government initiative that was developed to 

provide easier and more user-friendly access to the FLRA and its services. As expected, eFiling 

has already begun to increase efficiency by reducing procedural-filing errors and resulting 

processing delays. This efficiency is expected to increase over time with expansion and 

increased use of the agency’s eFiling system, and is yet another example of the FLRA’s ongoing 

efforts to better serve its customers and to provide current and useful online tools for federal 

employees, the unions that represent them, and federal agencies for resolving issues under the 

Statute. In FY 2014, the agency completed the infrastructure necessary to launch the final phase 

of eFiling, which will enable the parties to electronically file cases with the OALJ. By the first 

quarter of FY 2015, all four of the agency offices that receive case filings – the FSIP, the 

Authority, the OGC, and the OALJ – will thus be capable of receiving them electronically. 

Having successfully implemented eFiling in all four components is a major step towards meeting 

the agency’s long-term goal of having 100 percent of cases filed electronically and creating an 

“end-to-end” electronic case file for all cases. Moreover, through eFiling-specific training and 

outreach, this year, nearly 40 percent of Authority cases were filed electronically. Future 

training and outreach is expected to increase eFiling throughout all agency components. 

The eFiling system provides the platform for development of an “end-to-end” electronic case 

file. As such, this year, the agency devoted significant effort to automating functions between 

office-specific eFiling and existing case-management systems. This automation immediately 

increased case-processing efficiency – administrative staff no longer needs to manually enter 

data regarding an eFiling into the office’s existing electronic case-tracking system because that 
10

process is now automated. The agency also made significant progress in building the 

infrastructure for transferring cases and case documents electronically – rather than by hard copy 

– from office to office. In this regard, the agency successfully completed its pilot electroniccase-file program between the Authority and the Collaboration and Alternative Dispute 

Resolution Office (CADRO). The Authority and the CADRO now share all case files 

electronically, thus, the agency has met its goal of creating a fully electronic case file for at least 

one component. This will serve as the model for implementing the agency’s long-term goal of 

sharing electronic case files throughout the FLRA, as well as the OMB-mandated target of 

having 100 percent electronic files by 2019. In support of this endeavor, the agency has 

“mapped out” the flow of cases between various agency components and developed a plan for 

transferring cases between all components. The agency has taken initial steps to identify 

electronic document-management solutions that will work in tandem with the agency’s 

electronic case-management systems to provide the required storage space and capacity for an 

“end-to-end” electronic case file.

Human Capital

The FLRA continues to have a highly engaged workforce that is dedicated to the 

accomplishment of its mission. As evidence of this, the results of the Office of Personnel 

Management’s 2014 Federal Employee Viewpoint Survey (FEVS) show that: 83 percent of 

eligible employees responded to the survey; 100 percent of FLRA respondents report that they 

are willing to put in extra effort to get a job done; 97 percent indicate that they are being held 

accountable for achieving results; 96 percent know how their work relates to the agency’s goals 

and priorities; and 94 percent know what is expected of them on the job. The agency’s values of 

transparency, open dialogue, and pre-decisional involvement allow for effective communication 

and continuous feedback around mission performance and agency operations. 

In addition, the FLRA invests in its employees through classroom training, rotational details, 

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

opportunities to enhance and broaden employees’ skills. In this connection, employees at all 

levels – both professional and administrative-support staff – delivered positive agency outcomes 

and led numerous mission-related initiatives, including: the development of the FLRA’s 

bilingual webpages; a decision-writing initiative intended to strengthen the quality of the 

Authority’s decisions; and the development of Authority and OGC training materials, guides, 

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

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

procedures.

Internal developmental details accomplished two strategic objectives: (1) development of future 

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

employees to positions more closely matched to their career interests. Position descriptions were 

updated and now allow for greater growth and advancement opportunities within the agency. 

And employees readily volunteered for collateral-duty assignments, new initiatives, and projects. 

The agency also renewed its agreement with a local university to offer discounted tuition for 

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

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

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

FLRA launched a training initiative designed to assist higher-graded employees identify and 

strengthen critical leadership skills in preparation for eventually transitioning to formal 

leadership positions. To strengthen and support the FLRA’s new cadre of first-time managers 

and supervisors, the agency identified a series of trainings geared towards developing strategic 

thinking and other critical skills in preparation for executive leadership at the FLRA. The 

agency had not provided such targeted leadership development for its employees in more than 15 

years. And the FLRA developed and provided high-level, mission-based training for its 

attorneys – nearly 20% of whom are new to the FLRA in FY 2014 – that built upon their existing 

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

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

enhance their skills and encourage collaboration among peers. 

The agency also updated its Attorney Recruitment Policy in order to allow managers greater 

hiring flexibility with respect to the agency’s only mission-critical occupation – attorney – and to 

expedite the recruitment process. And, in collaboration with the Partnership for Public Service’s 

Excellence in Government Fellows program, the agency developed and piloted an Employee 

Onboarding Handbook to enhance and standardize the onboarding process. 

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

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

agency achieved greater diversity in its workforce in FY 2014 by increasing targeted recruitment 

and posting job opportunities with career planning and placement services, local colleges and 

universities, and professional affinity-group organizations. The FLRA also utilized both Student 

Pathways and summer externship programs to accomplish mission-related initiatives throughout 

the agency. 

Further, based on employee feedback provided through the 2014 Federal Employee Viewpoint 

Survey, the FLRA moved into the top scoring ranking in terms of “New IQ Performance,” which 

measures the results of 20 separate survey questions related to inclusive environments. In 

particular, 81 percent of FLRA respondents – compared to 73 percent in 2013 – reported that 

supervisors work well with employees of different backgrounds. And 73 percent of respondents 

– a 12 percent increase from 2013 – stated that the FLRA’s policies and programs promote 

diversity in the workplace (e.g., recruiting minorities and women, training in awareness of 

diversity issues, mentoring). Both of these statistics show that the FLRA is well above the 

government-wide average with respect to both questions – nearly 20 percent higher for each. 

PERFORMANCE SUMMARY

The FLRA’s mission is to promptly and fairly resolve disputes that are voluntarily filed under 

the Statute by agencies, labor organizations, and individuals. Accomplishing its mission in an 

effective and efficient manner is key to enabling the federal government, as a whole, to adapt to 

changing circumstances, as necessary, to continue delivering the highest quality services to the 
12

American public, consistent with President Obama’s management agenda to deliver a smarter, 

more innovative, and more accountable government.

For the past two fiscal years, the FLRA has been faced with significant obstacles to overcome in 

meeting its mission requirements. In FY 2013, the FLRA was able to effectively manage its 

budgetary resources to avoid furloughing employees due to sequestration. That year, the agency 

also experienced a wave of employee retirements, but was unable to backfill the positions, 

leaving well over 10 percent of its workforce vacant to start FY 2014. Further, the Authority 

lacked a quorum of Members necessary to issue decisions from January 2013 until

November 2013, resulting in a backlog of Authority cases awaiting decision when the quorum 

was re-established. But, in large part, those obstacles were overcome. Although the backlog in 

the Authority component has not been eliminated, the Authority is committed to doing so by the 

end of FY 2015, and has implemented a case-issuance strategy (an action plan) to accomplish 

this. 

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

over the last five and a half years in providing customers with timely and quality 

dispute-resolution services. As a result of a comprehensive review of arbitration case 

processing, the Authority implemented regulatory changes in FY 2010 involving those 

cases. The changes were necessary to reduce the number of procedural deficiencies in the 

parties’ filings, and to clarify for its customers the grounds for the Authority’s review and the 

applicable legal standards. Along with the regulatory changes, the Authority developed a Guide 

to Arbitration Under the Statute, which the Authority has continued to update annually, as well 

as a comprehensive, arbitration-training program, which the Authority has delivered on an 

ongoing basis. There have been real performance-improvement outcomes from these initiatives. 

Arbitration cases are now processed and resolved more expeditiously. And continuing to update 

the Guide and the training materials are expected to yield dividends far into the future. In 

addition to arbitration, in 2013, the Authority developed a Guide to Negotiability Under the 

Statute, and an accompanying, comprehensive, negotiability-training program, which the 

Authority has delivered on an ongoing basis. As with the arbitration initiatives, the development 

of the Guide and the provision of training have yielded real performance-improvement outcomes 

– the parties are better educated about the Authority’s negotiability law and case-processing 

requirements, which has resulted in a reduction in procedurally deficient filings and higherquality better-drafted briefs – which should enable the Authority to more expeditiously process 

those cases. 

The OGC’s performance during FY 2014 was very successful, marked by increases in 

productivity along with improvements in the timely resolution of cases. Despite an increase in 

case filings, the OGC exceeded its mission-critical performance goals on the timely resolution of 

ULP and representation cases and resolved 6 percent more cases than in FY 2013. The OGC 

closed over 4,800 ULP and 250 representation cases, conducted 52 representation elections, and 

held more than 30 ULP and representation hearings. 

The OGC has expanded its use of ADR techniques and services to resolve cases. This is 

particularly important as the OGC has the largest case intake among all the FLRA components 

(handling over three quarters of the FLRA’s total case intake) and is the FLRA component with 
13

which the parties have the most contact. The beneficial effects of voluntary ULP settlements and 

representation agreements are obvious and are aggressively pursued by the OGC. 

In FY 2014, the parties informally resolved over 1100 ULP cases during the investigative 

process. In addition, the OGC resolved 94 percent of the cases in which merit was found without 

the need for formal litigation. These successful voluntary ADR efforts resulted in significant 

savings of governmental staff and budgetary resources. For example, in May and June of 2014, 

the OGC received several ULP charges concerning an agency’s termination of alternative work 

schedules (AWS) at several of its facilities. These cases involved employees in several states 

and raised the prospect of time-consuming and expensive litigation if not resolved. Early on in 

the investigative process, the OGC offered the parties the opportunity to explore resolution of the 

cases through use of ADR. The parties accepted, and after working closely with the OGC for a 

few days, the parties reached a full resolution of the cases. The settlement provided for 

restoration of the AWS, and provided the parties with a framework for handling AWS issues that 

arise in the future. By using ADR to resolve these cases early on in the process, the OGC saved 

the parties time and money, and gave them a framework to resolve future related disputes on 

their own. 

The OALJ also continued to resolve cases in FY 2014 at an improved pace. In response to a 

backlog of cases awaiting decision, the agency reallocated resources, through details and 

temporary hires, to the OALJ to assist in resolving those cases more expeditiously. With over 

1,000 new cases on its docket in the last four years, the OALJ has successfully resolved cases 

without the need for costly litigation involving a hearing or written decision through use of the 

OALJ Settlement Judge Program – without the need for a hearing. In FY 2014, in over 95 

percent of cases in which the parties participated in the OALJ Settlement Judge Program, they 

reached agreement and fully resolved their dispute. This is real evidence that the delivery of 

ADR services at all stages of case processing results in more effective and efficient program 

performance for the FLRA, as well as the timely resolution of disputes for its customers. As a 

result, the OALJ has seen a decrease in demand for hearings even though the number of 

complaints remains high, exceeding 250 again in 2014. To reduce the need for final written 

decisions, the ALJs are encouraging the parties to request a bench decision when the matter is 

not settled prior to hearing, and a bench decision is appropriate under the facts of the case.

With respect to the FSIP, as an example of the FLRA’s important mission, in FY 2014, that 

component received 40 unexpected requests for assistance concerning bargaining over the 

impact and implementation of agency decisions to furlough employees during the shutdown to 

start the year. The FSIP prioritized disposition of those furlough-related cases – while 

maintaining timeliness in regard to the processing of non-furlough cases – using 

dispute-resolution procedures that maximized the possibility of voluntary settlements, rather than 

imposing contract terms. In turn, the Panel continued to obtain a high rate of voluntary 

settlement, consistent with the FSIP’s guiding philosophy that the voluntary settlement of 

bargaining impasses using mediation-arbitration techniques is the most effective and efficient 

form of dispute resolution. In this regard, in cases where mediation-arbitration was used to 

resolve federal-sector impasses, the Panel obtained complete voluntary settlements 60 percent of 

the time.
14

The FSIP also continued to prioritize case processing to ensure that disruption to government 

operations and costs to taxpayers were minimized. Among the most significant examples of this 

prioritization were two impasses that arose as a result of Administration initiatives requiring 

agencies to ensure that their total square footage remains at their FY 2012 baseline levels and to 

dispose of excess properties. In this regard, the Department of Health and Human Services 

decided to relocate approximately 160 bargaining-unit employees in its Denver Regional Office, 

represented by the National Treasury Employees Union, to a more energy-efficient office, 

reducing space by 20 percent. Similarly, the Department of Housing and Urban Development 

decided to relocate approximately 200 bargaining-unit employees in its San Francisco Regional 

Office, represented by the National Federation of Federal Employees. Requests for FSIP 

assistance were filed in both cases requiring quick resolution of the parties’ impasses if the 

agencies involved were to avoid the costs of having to pay rent in two locations. The FSIP 

conducted mediation-arbitration proceedings at the sites of the disputes. When the parties were 

unable to reach voluntary settlements, arbitration awards were issued that prevented unnecessary 

taxpayer expenditures.

In addition, the CADRO continues to help parties resolve significant disputes in cases pending 

before the Authority. The CADRO also delivers “prevention” services, teaching parties 

techniques for effectively resolving labor-management issues on their own, without needing 

third-party involvement. These types of services have helped the parties develop constructive 

workplace relationships that promote better mission performance, as well as quality of work life 

– real evidence that the program works. In fact, 96 percent of CADRO cases in FY 2014 

resulted in full resolution of the underlying dispute and closure of the pending case. The parties 

report that these ADR services improve their ability to resolve important problems, make critical 

decisions, and develop a more successful problem-solving relationship. Moreover, CADRO 

initiatives serve the dual purpose of preventing unnecessary litigation before the FLRA and 

making case processing more effective and efficient. 

Noteworthy CADRO cases in FY 2014 include a negotiability petition in which an agency 

proposed to consolidate and reorganize offices nationwide, potentially displacing – or 

terminating – more than 700 employees. The CADRO worked with two national unions and two 

separate agency bargaining teams to completely resolve all negotiability disputes, plus all of the 

underlying bargaining impasses. As a result, the agency has already begun implementing the 

consolidation with the resulting efficiencies, cost savings, and expected improvement in mission 

performance. And, in an arbitration-exception case, the embattled parties entered the CADRO 

process with a six-figure back-pay and attorney-fees dispute that had raged for years before it 

reached the FLRA. Highly competent counsel, who had the capacity to engage in protracted 

litigation, represented both parties. But, knowing the costs and the risks to both parties if they 

continued their litigation strategies, counsel found the CADRO process to be a safe alternative. 

The parties eventually achieved a complete settlement and ended that costly chapter in their 

shared history.

Two additional FY 2014 cases exemplify the value of CADRO training and facilitation services. 

The Air Force and the American Federation of Government Employees (AFGE) jointly asked the 

CADRO to continue its efforts to address their joint concerns, including preserving tens of 

thousands of federal and private jobs at and around the largest industrial complex in the State of 
15

Georgia. Following dozens of hours of remote planning, support, and preparation, the CADRO 

led a joint FLRA-FMCS team that trained top management and union leaders at Robins Air 

Force Base to collaboratively lead this vital initiative. The CADRO then led the development of 

a multi-year action plan to implement the fundamentals of a military support enterprise. In the 

other case, the AFGE and management at the Department of Homeland Security’s Immigration 

and Customs Enforcement (ICE) jointly requested CADRO assistance to help them begin 

addressing mission-critical, labor-management issues from coast to coast. Following joint 

planning and preparation sessions, the CADRO facilitated a day-long gathering of more than 40 

high-level managers and corresponding union officials from every sector of ICE operations. 

Long-term efforts must continue in order to make a lasting impact, but CADRO’s involvement 

enabled the parties to get off to a very strong start.

FY 2014 was also the first complete year that the CADRO conducted, under the auspices of the 

Chief ALJ, settlement activities in ULP cases pending with the OALJ, in addition to the 

CADRO’s ongoing intervention in negotiability and arbitration cases pending in the Authority. 

In doing so, CADRO resolved over 95 percent of 67 ULP complaints in which the parties chose 

to avail themselves of ADR services under the OALJ Settlement Judge Program. In one of these 

cases, a party refused to execute terms of a collective-bargaining agreement directed by the FSIP, 

leading to a charge filed by the other party and a complaint issued by the OGC. Working 

through the Settlement Judge Program, it became apparent that the refusal resulted from lack of 

understanding about what the Statute requires under such circumstances. The settlement 

conference served as an example of how such forums can be used to educate the parties as to 

their respective obligations, in addition to obtaining immediate, cost-effective compliance with 

the Statute.

Further, the FLRA continued to provide training to members of the labor-management 

community – union representatives, agency representatives, and neutrals – in all aspects of its 

law and case processes. The FLRA, as a whole, provided 225 separate training sessions to over 

5,100 participants. 

The Authority provided training at several conferences, including the Federal Dispute Resolution 

and the Society of Federal Labor and Employee Relations Professionals Conferences, and an 

arbitration workshop sponsored by the National Academy of Arbitrators and the FMCS. These 

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

updated materials for more standard sessions. In addition, the Authority sponsored its own 

training programs, including several, full-day sessions of comprehensive negotiability training 

and comprehensive arbitration training. In particular, because negotiability cases have the 

highest rate of procedural dismissals of any type of case filed with the Authority, the 

negotiability training is intended to meet the goals of helping the parties to: comply with the 

Authority’s regulatory procedural requirements (thus reducing case-processing time); file their 

cases in a different, appropriate forum when necessary; and use ADR. Feedback received from 

participants in these sessions indicates that these trainings produced the desired results and will 

further the above goals in future cases.

The OGC focuses its training efforts on the parties at the local level where the work is performed 

and the labor-relations issues arise. By bringing its training services directly to the parties, the 
16

OGC educates local management and labor representatives on their rights and responsibilities 

under the Statute, thereby empowering them to more effectively and efficiently avoid – and if 

necessary, resolve – workplace disputes at the lowest level. The OGC’s training initiative is 

intended to make case processing more effective and efficient and to better serve the parties by 

providing meaningful and clear guidance on statutory rights and responsibilities. Ensuring that 

OGC customers are knowledgeable about their rights and obligations under the Statute, as well 

as FLRA case law, regulations, and case-processing procedures furthers timely and efficient case 

processing.

Further, the FLRA supports the National Council on Federal Labor-Management Relations (the 

National Council) by training practitioners and labor-management-forum participants pursuant to 

Executive Order 13522. Such training includes critical process skills, such as communications 

and consensus decision making, guidance on rights and responsibilities under the Statute, as well 

as FLRA case law, regulations, and case-processing procedures. The FLRA’s training, 

facilitation, and support of the National Council remain critical to the implementation and 

ongoing success of the Order. When appropriate, the FLRA – primarily through the CADRO 

and the OGC – partners with other agencies, such as the FMCS, to train practitioners and support 

labor-management forums.

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

Service. Building on that success in 2011, the agency once again placed among the top of the 

most improved small agencies. In 2012 and 2013, the agency continued its commitment to 

increasing employee satisfaction and morale, capturing the #8 small-agency ranking overall in 

the Best Places to Work in the Federal Government Survey, reflecting a dramatic and 

unprecedented improvement of over 250 percent since 2009 – the year in which the FLRA 

placed last in the survey. Most notable for 2013 were the FLRA’s rankings for certain Best in 

Class categories: second overall in both “Teamwork” and “Strategic Management,” as well as 

third in “Effective Leadership of Senior Leaders” and “Training and Development.”

Empowering employees is a key component of effective leadership, and, in 2013, the FLRA was 

recognized by the Partnership’s Federal Leadership Snapshot as the #3 small agency for its 

effective leadership in the federal government. The agency’s score of 70 far exceeded the 

government-wide average of 53. The FLRA was also noted as the #2 small agency in terms of 

0

20

40

60

80

100

2005 2007 2009 2010 2011 2012 2013

Best Places to Work Score
17

leadership communication, with a score of 74 compared to the government-wide average of 50. 

Effective leadership is not only important for directing an organization’s operations and 

motivating its workforce, but also in guiding an organization through tough decisions about how 

to meet increased demand for services in a constrained resource environment. Most importantly, 

effective communication from organizational leaders is necessary to establish a transparent, 

positive work environment. The FLRA’s leadership has played a pivotal role in advancing the 

agency’s mission results, increasing program effectiveness and efficiency, and motivating 

employees.

In 2014, the FLRA also continued its success in the Federal Employee Viewpoint Survey, with an 

employee response rate of 83 percent – significantly higher than the government-wide average of 

47 percent. The FLRA’s 2014 positive ratings increased from 2013 in 61 items. And the 

FLRA’s Human Capital Assessment and Accountability Framework (HCAAF) index scores 

increased in every category – by as much as 7 percent over 2013. Specifically, the agency 

scored 78 percent in “Leadership and Knowledge Management,” 71 percent in “Results-Oriented 

Performance Culture,” 79 percent in “Talent Management,” and 75 percent in “Job Satisfaction” 

– exceeding the government-wide average in each. These responses reflect the FLRA’s progress 

toward meeting government-wide human capital objectives and the relationship to organizational 

performance. And, consistent with an agency-wide focus on targeting challenges identified in 

the survey, the FLRA addresses areas of weakness or concern in full collaboration with 

employees at all levels through its own Labor-Management Forum. As an example, the FLRA 

placed special emphasis in FY 2014 on strengthening supervisory skills and improving the 

supervisor-employee relationship, especially as it relates to giving and receiving feedback on 

performance.

The FLRA’s dramatic and sustained improvement over the last five and a half years reflects the 

commitment of leadership – at all levels and throughout the agency – to manage the agency with 

transparency and accountability and to engage employees. It also demonstrates the commitment 

and dedication of FLRA employees. Consistent with the agency’s significant increase in 

employee morale and satisfaction since 2009 has been a marked improvement in the FLRA’s 

mission performance and the delivery of services to its customers.

Performance Outcome 

Measures

FY 2014

Target

FY 2014

Actual Result

Strategic Goal 1: Achieve superior customer service.

Performance Goal 1: Provide timely review and disposition of unfair-labor-practice (ULP) 

cases.

A. Measure 1.1: The 

percentage of ULP 

charges resolved by the 

OGC by complaint, 

withdrawal, dismissal, or 

settlement within 120 days 

of filing of the charge.

65% 67% Exceeded
18

Performance Outcome 

Measures

FY 2014

Target

FY 2014

Actual Result

B. Measure 1.2: The 

percentage of decisions on 

an appeal of a Regional 

Director’s dismissal of a 

ULP charge issued within 

60 days of the date filed, 

and in no case more than 

120 days.

90%/100% 98%/100%

Exceeded/ 

Met

C. Measure 1.3: The 

percentage of ULP 

complaints issued by the 

General Counsel resolved 

or decided in the OALJ 

within 180 days of the 

complaint being issued.

90% 91% Exceeded

D. Measure 1.4: The 

percentage of ULP cases 

decided within 180 days 

of assignment to an 

Authority Member.

60% 50% Not Met

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

Measure 2.1: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

120 days of the filing of a 

petition.

60% 66% Exceeded

Measure 2.2: The 

percentage of 

representation cases in 

which the Authority 

issued a decision whether 

to grant review within 60 

days of the filing of an 

application for review.

100% 100% Met
19

Performance Outcome 

Measures

FY 2014

Target

FY 2014

Actual Result

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

Measure 3.1: The 

percentage of arbitration 

cases decided within 180 

days of assignment to an 

Authority Member.

60% 34% Not Met

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

Measure 4.1: The 

percentage of negotiability 

cases decided within 180 

days of assignment to an 

Authority Member.

60% 17% Not Met

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

Measure 5.1: The 

percentage of 

bargaining-impasse cases

in which jurisdiction is 

declined closed within 140 

days of the date filed.

80% 89% Exceeded

Measure 5.2: The 

percentage of 

bargaining-impasse cases 

voluntarily settled after 

jurisdiction has been 

asserted within 160 days 

of the date filed.

70% 68% Substantially 

Met

Measure 5.3: The 

percentage of 

bargaining-impasse cases 

resolved through a final 

action closed within 200 

days of the date filed.

70% 61% Not Met

Performance Goal 6: Use collaboration techniques and alternative-dispute-resolution 

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

Measure 6.1: The 

percentage of ULP cases 

in the OGC in which an 

offer of ADR services is 

accepted by the parties 

that are partially or totally 

resolved.

95% 98% Exceeded
20

Performance Outcome 

Measures

FY 2014

Target

FY 2014

Actual Result

Measure 6.2: The percentage of ULP cases 

in the OALJ in which an 

offer of Settlement Judge 

services is accepted by the 

parties that are partially or 

totally resolved.

80% 96% Exceeded

Measure 6.3: The percentage of 

representation cases in the 

OGC in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved.

95% 100% Exceeded

Measure 6.4: The percentage of arbitration 

cases in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved.

75% 80% Exceeded

Measure 6.5: The 

percentage of negotiability 

cases in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved.

90% 100% Exceeded

Measure 6.6: The 

percentage of 

bargaining-impasse cases 

in which an offer of ADR 

services is accepted by the 

parties that are partially or 

totally resolved.

30% 27% Substantially 

Met

Measure 6.7: The 

number of training, 

outreach, and facilitation 

activities conducted.

200 225 Exceeded
21

Performance Outcome 

Measures

FY 2014

Target

FY 2014

Actual Result

Measure 6.8: The 

number of participants 

involved in training, 

outreach, and facilitation 

activities.

6,000 5,114 Not Met

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

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

program achievement.

Measure 7.1: The 

percentage of cases filed 

electronically with the 

FLRA.

25% 12% Not Met

Measure 7.2: The 

percentage of cases 

processed electronically 

end-to-end.

Migrate one FLRA 

component to an end-toend electronic case file. 

Migrated one FLRA 

component to an endto-end electronic case 

file.

Met

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

and improve job satisfaction.

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

program needs.

Measure 8.1: Program 

managers ensure that the 

right employees are in the 

right place to achieve

results.

Focus on succession 

planning, including 

diversity and inclusion. 

Continue to develop 

employees in 

accordance with 

agency needs and 

individual-development 

plans. Assess progress 

to date on agency 

human-capital plan/ 

initiatives. 

Focused on succession 

planning, including 

diversity and inclusion. 

Continued to develop 

employees in 

accordance with 

agency needs and 

individual-development 

plans. Assessed 

progress to date on 

agency human-capital 

plan/ initiatives.

Met

FINANCIAL ANALYSIS

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

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

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

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

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

and control budgetary resources, which are prepared from the same books and records. The 
22

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

government, a sovereign entity.

Balance Sheet

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

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

Treasury (the Treasury) is its largest asset, accounting for 85 percent of the total at the end of FY 

2014. The FLRA does not maintain any cash in commercial bank accounts or foreign currency 

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

general property and equipment, which is recorded at original acquisition cost and depreciated

using the straight-line method over the estimated useful life of the asset. Total assets increased 

from $3.7 million at the end of FY 2013 to $4.3 million at the end of FY 2014. This increase is 

attributable primarily to the property and equipment purchases made in FY 2014 that were 

necessary to upgrade the FLRA’s outdated IT infrastructure.

Assets as of September 30 2014 2013

Fund balance with the Treasury $3,626,652 $3,488,106

General property and equipment 588,076 212,632

Advances and prepayments 46,494 27,298

Accounts receivable 3,634 16,742

Total $4,264,856 $3,744,778

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

to be paid by the FLRA as a result of transactions or events that have already occurred. Accrued 

employee leave, payroll, and benefits costs, along with accrued workers’ compensation under the 

Federal Employees Compensation Act (FECA), accounted for 95 percent of the total at the end 

of FY 2014. The remaining 5 percent reflects the amount owed by the FLRA to vendors and 

other Federal agencies for purchased goods and services. Total liabilities decreased from $4.3 

million at the end of FY 2013 to $3.5 million at the end of FY 2014 due to the fewer number of 

workdays included in the FY 2014 payroll and benefits accrual.

Liabilities as of September 30 2014 2013

Unfunded leave 1,511,241 1,412,090

FECA liability 1,342,635 1,407,583

Payroll and benefits 510,906 1,025,702

Accounts payable 153,535 414,815

Custodial liability/other 0 282

Total $3,536,582 $4,260,472
23

The agency’s net position at the end of FY 2014 was $728 thousand, a $1.2 million increase over 

the negative $516 thousand reported at the end of FY 2013.

Statement of Net Cost

The Statement of Net Cost reflects the gross cost of operating the FLRA’s 3 major programs, 

less any reimbursable revenue earned from those activities. The net cost of operations in FY 

2014 was $25.4 million, an $800 thousand increase over the agency’s FY 2013 net cost of 

operations. In FY 2014, 58 percent of the FLRA’s cost was attributable to the Authority, which 

includes central management provided to the entire agency; 39 percent was attributable to the 

OGC; and the remaining 3 percent was attributable to the FSIP.

Statement of Changes in Net Position

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

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

operations represent the results of operations since inception, the amount of prior-year

adjustments, the remaining book value of property and equipment, and future funding 

requirements. Cumulative results of operations remained relatively constant in FY 2014, totaling 

$2.3 million.

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

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

Unobligated balances are the amount of appropriations remaining after deducting obligations 

from the amounts available. Total unexpended appropriations increased by $900 thousand in FY 

2014.

FY 2014 Financial Obligations by Budget Object Class

Compensation & benefits (71%)

Other contractual services (12%)

Rent & utilities (11%)

Supplies & equipment (4%)

Communications (1%)

Travel & transportation (1%)
24

Statement on Budgetary Resources

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

during FY 2013 and FY 2014 to carry out the activities of the agency, as well as the status of 

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

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

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

provided by employees on the Statute, the FLRA mission, and Executive Order 13522. The 

FLRA had $26.3 million available for obligation in FY 2014, of which only $723 thousand 

remains. The agency incurred obligations of $25.5 million in FY 2014, while recording outlays 

of $25.1 million.

MANAGEMENT ASSURANCES

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

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

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

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

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

Annual FMFIA Statement of Assurance

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

Internal Control, the FLRA conducted an assessment of the effectiveness of the organization’s 

internal controls to support effective and efficient operations, reliable financial reporting, and 

compliance with applicable laws and regulations, and to determine whether the financial 

management system conforms to applicable financial requirements.

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

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

compliance with applicable laws and regulations as of September 30, 2014, were operating 

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

controls.

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

conforms to applicable financial-systems requirements.

Carol Waller Pope

Chairman

November 17, 2014
25

PERFORMANCE GOALS AND RESULTS

GOAL 1: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

UNFAIR-LABOR-PRACTICE CASES.

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

prosecution of all unfair-labor-practice (ULP) charges. ULP cases originate with the filing of a 

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

been filed, the Regional Office will investigate the charge to determine whether it has merit. If 

the Regional Director determines that the charge has merit, then he or she will, absent settlement, 

issue and prosecute a complaint before an Administrative Law Judge (ALJ). If the Regional 

Director determines that the charge lacks merit, then the charging party is entitled to a written 

explanation, and, if not satisfied, may appeal the decision to the General Counsel in Washington, 

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

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

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

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

OGC FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 1,587 1,811 1,453 1,488 1,570

Charges filed 4,398 4,094 4,375 4,659 4,696

Total caseload 5,985 5,905 5,828 6,147 6,266

Charges withdrawn/settled 3,141 3,425 3,377 3,646 3,779

Charges dismissed 751 812 732 673 809

Complaints issued 282 215 231 258 253

Total cases closed 4,174 4,452 4,340 4,577 4,841

Cases pending, end of year 1,811 1,453 1,488 1,570 1,425

OALJ FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 67 54 72 115 120

Cases received from the OGC 282 234 240 271 260

Total caseload 349 288 312 386 380

Settlements before decision 275 191 177 223 240

Cases closed by decision 20 25 20 43 30

Total cases closed 295 216 197 266 270

Cases pending, end of year 54 72 115 120 110
26

Authority FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 14 14 6 2 12

Exceptions filed 18 17 20 27 27

Total caseload 32 31 26 29 39

Cases closed procedurally 9 13 16 16 18

Cases closed based on merits 9 12 8 1 8

Total cases closed 18 25 24 17 26

Cases pending, end of year 14 6 2 12 13

Measure1.1: The percentage of ULP charges resolved by the Office of the General Counsel 

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

charge.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

49% 54% 61% 68% 65% 67%

Data Source: Case Management System (CMS)

Target: Exceeded.

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

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

31% 97%/100% 99%/100% 100/100% 90%/100% 98%/100%

Data Source: CMS

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

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

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

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

complaint being issued.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 95% 90% 86% 90% 91%

Data Source: CMS

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

previous 90-day measures into one of 180 days.
27

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

Authority Member.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

18% 31% 75% 100% 60% 50%

Data Source: CMS

Target: Not Met. For more than ten months of FY 2014, the Authority lacked a quorum of 

Members necessary to issue decisions. When the Authority regained its quorum, it 

immediately focused its efforts on addressing and issuing decisions in those cases in its 

inventory that had already exceeded the 180-day performance goal – defined by the Authority 

as a “backlog.” Necessarily, the Authority issued a greater percentage of decisions in FY 2014 

that exceeded the 180-day performance goal.

GOAL 2: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

REPRESENTATION CASES.

The Federal Service Labor-Management Relations Statute (the Statute) sets out a specific 

procedure for employees to petition to be represented by a labor union and to determine which 

employees will be included in a “bargaining unit” that a union represents. Implementing this

procedure, the FLRA conducts secret-ballot elections for union representation and resolves a 

variety of issues related to questions of union representation of employees. These issues include, 

for example, whether particular employees are managers or “confidential” employees excluded 

from union representation, whether there has been election misconduct on the part of agencies or 

unions, and whether changes in union and agency organizations affect existing bargaining units. 

Representation cases are initiated by the filing in a Regional Office of a petition by an individual, 

a labor organization, or an agency. After a petition is filed, the Regional Director conducts an 

investigation to determine the appropriateness of a unit or other matter related to the petition. 

After concluding such investigation, the Regional Director may conduct a secret-ballot election 

or hold a hearing to resolve disputed factual matters. After a hearing, the Regional Director 

issues a Decision and Order, which is final unless an application for review is filed with the 

Authority.

OGC FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 104 102 82 70 62

Petitions filed 278 267 271 240 235

Total caseload 382 369 353 310 297

Petitions withdrawn 113 126 115 106 118

Cases closed based on merits 167 161 168 142 138

Total cases closed 280 287 283 248 256

Cases pending, end of year 102 82 70 62 41
28

Authority FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 5 6 6 0 9

Applications for review 15 12 6 11 13

Total caseload 20 18 12 11 22

Cases closed procedurally 1 0 0 1 2

Cases closed based on merits 13 12 12 1 13

Total cases closed 14 12 12 2 15

Cases pending, end of year 6 6 0 9 7

Measure 2.1: The percentage of representation cases resolved by the OGC through 

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

petition.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

65% 60% 62% 60% 60% 66%

Data Source: CMS

Target: Exceeded.

Measure 2.2: The percentage of representation cases in which the Authority issued a decision 

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Met.

GOAL 3: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

ARBITRATION CASES.

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

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

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

regulation, or on grounds similar to those applied by federal courts in private-sector, labormanagement relations.
29

Authority FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 247 173 66 40 123

Exceptions filed 134 110 107 124 89

Total caseload 381 283 173 164 212

Cases closed procedurally 31 22 24 19 16

Cases closed based on merits 177 195 109 22 106

Total cases closed 208 217 133 41 122

Cases pending, end of year 173 66 40 123 90

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

an Authority Member.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

30% 33% 58% 91% 60% 34%

Data Source: CMS

Target: Not Met. For more than ten months of FY 2014, the Authority lacked a quorum of 

Members necessary to issue decisions. When the Authority regained its quorum, it 

immediately focused its efforts on addressing and issuing decisions in those cases in its 

inventory that had already exceeded the 180-day performance goal – defined by the Authority 

as a “backlog.” Necessarily, the Authority issued a greater percentage of decisions in FY 2014 

that exceeded the 180-day performance goal.

GOAL 4: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

NEGOTIABILITY CASES.

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

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

agency regulation for which there is a compelling need. In these cases, a union may petition the 

Authority to resolve the negotiability dispute.

Authority FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 39 22 15 8 9

Petitions filed 52 39 45 30 43

Total caseload 91 61 60 38 52

Cases closed procedurally 46 33 38 27 29

Cases closed based on merits 23 13 14 2 6

Total cases closed 69 46 52 29 35

Cases pending, end of year 22 15 8 9 17
30

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

an Authority Member.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

17% 29% 50% 100% 60% 17%

Data Source: CMS

Target: Not Met. For more than ten months of FY 2014, the Authority lacked a quorum of 

Members necessary to issue decisions. When the Authority regained its quorum, it 

immediately focused its efforts on addressing and issuing decisions in those cases in its 

inventory that had already exceeded the 180-day performance goal – defined by the Authority 

as a “backlog.” Necessarily, the Authority issued a greater percentage of decisions in FY 2014 

that exceeded the 180-day performance goal.

GOAL 5: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

BARGAINING-IMPASSE CASES.

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

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

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

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

proceed to private, binding arbitration only after the Federal Service Impasses Panel (FSIP or the 

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

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

only after the previous options have failed.

FSIP FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Cases pending, start of year 69 36 53 38 40

Impasses filed 143 152 176 194 134

Total caseload 212 188 229 232 174

Cases closed 176 135 191 192 146

Cases pending, end of year 36 53 38 40 28
31

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

closed within 140 days of the date filed.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 64% 92% 95% 80% 89%

Data Source: CMS

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

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

case disposition.

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

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 79% 86% 97% 70% 68%

Data Source: CMS

Target: Substantially Met.

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

closed within 200 days of the date filed.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 65% 77% 87% 70% 61%

Data Source: CMS

Target: Not Met. The FSIP did not meet this goal because, as a result of scheduling delays 

relating to the October 2013 government shutdown, three final actions were issued outside of 

the 200-day performance goal. Excluding those three actions, the FSIP exceeded its target, 

closing 73 percent of its cases within 200 days of the date filed. 

GOAL 6: USE COLLABORATION TECHNIQUES AND 

ALTERNATIVE-DISPUTE-RESOLUTION SERVICES TO MINIMIZE 

AND/OR RESOLVE LABOR-MANAGEMENT DISPUTES.

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

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

facilitation activities since FY 2011. ADR is an informal process that allows parties to discuss 

and develop their interests in order to resolve the underlying issues and problems in their 

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

pending ULP cases, representation cases, arbitration cases, negotiability appeals, and 

bargaining-impasse disputes. The agency also provides facilitation and training to help labor and 
32

management develop collaborative relationships. Many of the FLRA’s training programs are 

now available as web-based training modules, bringing educational tools and resources directly 

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

Measure 6.1: The percentage of ULP cases in the OGC in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 87% 97% 98% 95% 98%

Data Source: CMS

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

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

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

disputes. The goal encompasses all three FLRA components.

Measure 6.2: The percentage of ULP cases in the OALJ in which an offer of 

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 88% 80% 78% 80% 96%

Data Source: CMS

Target: Exceeded.

Measure 6.3: The percentage of representation cases in the OGC in which an offer of ADR 

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 93% 91% 100% 95% 100%

Data Source: CMS

Target: Exceeded.
33

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

accepted by the parties that are partially or totally resolved.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 100% N/A 100% 75% 80%

Data Source: CMS

Target: Exceeded. In FY 2012, there was only one arbitration case in which an offer of 

ADR services was accepted by the parties, and ADR in that case was still ongoing at the end 

of the fiscal year. As a result, this performance measure did not apply in FY 2012.

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

accepted by the parties that are partially or totally resolved.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 87% 100% 100% 90% 100%

Data Source: CMS

Target: Exceeded. 

Measure 6.6: The percentage of bargaining-impasse cases in which an offer of ADR services 

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 29% 32% 28% 30% 27%

Data Source: CMS

Target: Substantially Met.

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

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 332 221 302 200 225

Data Source: CMS

Target: Exceeded.
34

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

activities.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Target Actual

N/A 11,975 8,933 5,976 6,000 5,114

Data Source: CMS

Target: Not Met. Much of the demand for training, outreach, and facilitation activities in FY 

2011 and FY 2012 was for overview training on instituting forums and pre-decisional 

involvement under Executive Order 13522. Because this training is now available through a 

web-based training course, and since forums are now well-established, the FLRA expects the 

focus of its services to be on supporting the successful operation of these forums and further 

developing the skills for a successful labor-management relationship.

GOAL 7: MODERNIZE AGENCY INFORMATION-TECHNOLOGY 

BUSINESS SYSTEMS TO SUPPORT AND ENHANCE PROGRAM 

ACHIEVEMENT.

The FLRA’s electronic case filing (eFiling) system was fully implemented in FY 2012, and the 

agency began accepting eFilings in FY 2013. The FLRA is now focused on increasing its 

customers’ use of the system, which has proven to enhance significantly the quality of the 

parties’ filings and reduce procedural deficiencies. The agency also intends to fully implement 

“end-to-end” electronic case files in order to streamline the processing and handling of FLRA 

case files internally.

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

FY 2010 Actual Implemented a new electronic Case-Management System (CMS) for 

all FLRA components.

FY 2011 Actual Began developing an eFiling solution. Completed development of

customer registration and FSIP eFiling capability.

FY 2012 Actual Completed development of Authority and OGC eFiling capability. 

Began testing eFiling capability with customers.

FY 2013 Actual 10%

FY 2014

Target 25%

Actual 12%

Data Source: CMS

Target: Not Met. Although the FLRA did not meet its FY 2014 performance target as an 

agency, nearly 40 percent of the cases filed with the Authority component were filed 

electronically.
35

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

FY 2010 Actual N/A

FY 2011 Actual N/A

FY 2012 Actual Enhanced the CMS to provide the structure that supports end-to-end 

electronic case processing.

FY 2013 Actual Conducted a pilot program on end-to-end case processing.

FY 2014

Target Migrate one FLRA component to an end-to-end electronic case file.

Actual Migrated the CADRO to an end-to-end electronic case file.

Data Source: FLRA Information Resources Management Division

Target: Met. This measure was established in FY 2012 to serve as an indicator of success in 

developing and implementing an end-to-end electronic case file.

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

CAPITAL TO MEET PROGRAM NEEDS.

Over the last five-and-a-half years, the FLRA has demonstrated significant and marked 

improvement in its performance and service delivery, and has continued to rank among the top 

ten small agencies in the 2013 Best Places to Work in the Federal Government Survey. These 

results demonstrate the agency’s commitment to empowering and developing a highly engaged 

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

agency. It is within this spirit that the FLRA actively manages its human-capital programs.

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

achieve results.

FY 2010 Actual

Increased staffing levels in each program area; improved employee 

work-life balance through implementation of a robust telework 

program and video-conferencing, which, respectively, reduced time 

away from family/home and travel costs; implemented an 

employee-leadership developmental initiative in the OGC; and 

implemented a Student Temporary Employment Program. Began 

human capital e-initiatives to improve hiring through the purchase of 

USAStaffing (an automated hiring system), which engages the hiring 

manager in all aspects of the hiring process, reduces time-to-hire 

metrics, and improves applicants’ Federal hiring experience.

FY 2011 Actual

Continued to focus on employee engagement. Through its LaborManagement Forum (LMF), updated the agency’s Alternative Work 

Schedule policy, which increased flexibility within the program; 

began work on recognizing diversity through special-emphasis 

programs; and initiated efforts to update employee-awards programs. 

Formed a joint labor-management workgroup to design a new 

Performance-Management System for General Schedule employees 

for Office of Personnel Management (OPM) approval and agency 

implementation. Through an employee workgroup, designed and 
36

submitted to OPM for approval a revised Senior Executive Service 

(SES) appraisal system. Consistent with the agency’s Human Capital 

Strategic Plan, developed a training-needs assessment, which will be 

used to create individual-development plans to address areas needing 

skills improvement and to further increase mission-critical 

competencies. Supported employee ideas, initiatives, and employeefocused programs, such as “Bring Your Child to Work” day, 

Public-Service Recognition Week, a health-benefits fair, and a blood 

drive. Initiated brown-bag programs and an educational series to 

inform and develop employees in a casual setting. Continued human 

capital e-initiatives with the successful implementation of 

USAStaffing, NBC’s DataMart reporting tool, and employee eOPFs.

FY 2012 Actual

Enhanced development offerings, to include competency-based 

training, career-ladder developmental programs, and continuation of 

HR workshops and educational brown-bags. Drafted and 

implemented a five-year Diversity and Inclusion Strategic Plan to 

make the agency a more inclusive and inviting workplace for all of its 

employees. Increased diversity by hiring summer student interns, in 

some cases using targeted minority-hiring strategies. Expanded 

developmental offerings, to include attorney details.

FY 2013 Actual

Implemented a web-based T&A system to increase efficiency and 

accuracy of reporting. Obtained provisional certification of the 

FLRA’s SES Performance-Management System from OPM. 

Established an ADR process for resolving performance-management 

issues. As part of its strategic workforce planning efforts, continued 

employee development, including attorney details to other offices; 

ADR-facilitator training; and leadership-development and other 

workforce training. Established a Student Pathways Policy for 

student internships and partnered with the University of Maryland’s 

Federal Semester Program to offer unpaid internships to students.

FY 2014

Target

Focus on succession planning, including diversity and inclusion, in 

light of current retirement projections. Continue to develop 

employees strategically in accordance with agency needs and 

individual-development plans. Assess progress to date on the overall 

agency human-capital plan and related initiatives. 

Actual

Focused on succession planning by increasing targeted attorney 

recruitment. Renewed agreement with the University of Maryland for 

discounted tuition for agency employees. Increased agency resources 

through recruitment, staffing, and placement. Utilized the Student 

Pathways and Summer Externship programs to increase resources for 

casework and administrative initiatives throughout the agency. 

Realigned functions within the agency’s Office of the Executive 

Director to allow for improved efficiencies and customer service to 

agency employees. Worked extensively with managers to hold 

employees accountable for performance and development. Updated 

Attorney Recruitment Policy in order to allow managers greater hiring 
37

flexibility of the agency’s mission-critical occupation and to 

streamline the recruitment process. In collaboration with the 

Partnership for Public Service’s Excellence in Government Fellows 

program, developed and piloted an Employee Onboarding Handbook 

to improve the onboarding process and increase employee 

engagement.

Data Source: FLRA Human Resources Division

Target: Met

VERIFICATION AND VALIDATION OF PERFORMANCE DATA

The CMS is used by FLRA offices to track and manage caseload. Each office enters information 

on case filings into the CMS, and is accountable for quality control of the data entered into the 

system. Case-performance data verification and validation was performed using information 

from the CMS.
38

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The FLRA’s FY 2014 Performance and Accountability Report reflects the correlation between 

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

by presenting FLRA performance with the financial results of agency operations. The principal 

financial statements and notes that follow explain the FLRA’s financial position as of September 

30, 2014, and how the agency’s financial resources were expended to achieve performance 

results. For the eleventh consecutive year, the FLRA has received an unqualified audit opinion 

on its financial statements. Along with the unqualified opinion, the report of independent 

auditors found no material weaknesses in the design and operation of the agency system of 

internal controls over financial reporting.

With FY 2015 expected to be another challenging year, we will continue to focus on identifying 

solutions to maintain our financial stability, ensure transparency and accountability, and maintain 

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

continue to work with the Administration and the Congress in seeking ways to strengthen and 

improve the agency’s system for the administrative control of funds. We are confident that the 

FLRA’s financial and performance data are complete, accurate, and reliable.

Carol Waller Pope

Chairman and Chief Financial Officer

November 17, 2014
39

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2014 and 2013

2014 2013

Assets:

Intragovernmental:

Fund balance with the Treasury (Note 2) $3,626,652 $3,488,106

Accounts receivable (Note 3) 0 0

Advances and prepayments 46,494 27,298

Total intragovernmental 3,673,146 3,515,404

Accounts receivable from the public, net (Note 3) 3,634 16,742

General property and equipment, net (Note 4) 588,076 212,632

Total Assets $4,264,856 $3,744,778

Liabilities:

Intragovernmental:

Accounts payable $18,265 $52,987

Unfunded FECA liability (Note 5) 216,609 227,025

Total intragovernmental 234,874 280,012

Accounts payable 153,535 361,828

FECA actuarial liability (Note 5) 1,126,026 1,180,558

Unfunded leave (Note 5) 1,511,241 1,412,090

Accrued payroll and benefits 510,906 1,025,702

Other (Note 6) 0 282

Total Liabilities $3,536,582 $4,260,472

Net Position:

Unexpended appropriations – other funds $2,991,329 $2,071,393

Cumulative results of operations – other funds (2,263,055) (2,587,087)

Total Net Position $728,274 $(515,694)

Total Liabilities and Net Position $4,264,856 $3,744,778

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

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2014 and 2013

2014 2013

Gross Program Costs:

Authority:

Intragovernmental costs $4,346,447 $3,928,616

Public costs 10,412,911 11,392,530

Total costs 14,759,358 15,321,146

Intragovernmental earned revenue (1,540) (24,275)

Public earned revenue (1,311) (2,902)

Less: Total earned revenue (2,851) (27,177)

Net Program Costs $14,756,507 $15,293,969

Office of the General Counsel:

Intragovernmental costs $0 $39,215

Public costs 9,942,518 8,699,750

Total costs 9,942,518 8,738,965

Intragovernmental earned revenue (10,821) (10,296)

Public earned revenue (9,218) (8,903)

Less: Total earned revenue (20,039) (19,199)

Net Program Costs $9,922,479 $8,719,766

Federal Service Impasses Panel:

Intragovernmental costs $0 $0

Public costs 763,268 621,410

Total costs 763,268 621,410

Intragovernmental earned revenue 0 0

Public earned revenue 0 (600)

Less: Total earned revenue 0 (600)

Net Program Costs $763,268 $620,810

Net Cost of Operations $25,442,254 $24,634,545

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

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2014 and 2013

2014 2013

Cumulative Results of Operations:

Beginning balance

 

$(2,587,087)

 

$(2,583,413)

Budgetary financing sources:

Appropriations used 24,365,987 23,270,794

Non-exchange revenue 0 (282)

Other financing sources (non-exchange):

Imputed financing 1,400,299 1,360,359

Total financing sources 25,766,286 24,630,871

Net cost of operations (25,442,254) (24,634,545)

Net change 324,032 (3,674)

Cumulative Results of Operations $(2,263,055) $(2,587,087)

Unexpended Appropriations:

Beginning balance $2,071,393 $3,117,955

Budgetary financing sources:

Appropriations received 25,500,000 24,723,000

Other adjustments (214,077) (2,498,768)

Appropriations used (24,365,987) (23,270,794)

Total budgetary financing sources 919,936 (1,046,562)

Total Unexpended Appropriations $2,991,329 $2,071,393

Net Position $728,274 $(515,694)

The accompanying notes are an integral part of these statements.
42

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2014 and 2013

2014 2013

Budgetary Resources:

Unobligated balance, brought forward, October 1 $903,324 $1,847,474

Recoveries of prior year unpaid obligations 33,362 418,760

Other changes in unobligated balance (214,077) (1,205,607)

Unobligated balance from prior year budget authority, net 722,609 1,060,627

Appropriation 25,500,000 23,429,839

Spending authority from offsetting collections 43,086 46,900

Total budgetary resources $26,265,695 $24,537,366

Status of Budgetary Resources:

Obligations incurred (Note 10) $25,487,316 $23,634,042

Unobligated balance, end of year:

Apportioned 107,618 67,001

Unapportioned 670,761 836,323

Total obligated balance, end of year 778,379 903,324

Total budgetary resources $26,265,695 $24,537,366

Change in Obligated Balance:

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $2,587,584 $2,692,558

Obligations incurred 25,487,316 23,634,042

Outlays (gross) (25,190,604) (23,320,255)

Recoveries of prior year unpaid obligations (33,362) (418,760)

Unpaid obligations, end of year 2,850,934 2,587,585

Uncollected payments:

Uncollected payments, Federal sources, brought forward, October 1 (3,085) (14,937)

Change in uncollected payments, Federal sources 424 11,852

Uncollected payments, Federal sources, end of year (2,661) (3,085)

Memorandum (non-add) entries:

Obligated balance, start of year $2,584,500 $2,677,621

Obligated balance, end of year $2,848,273 $2,584,500

Budget Authority and Outlays, Net:

Budget authority, gross $25,543,086 $23,476,739

Actual offsetting collections (43,510) (58,752)

Change in uncollected customer payments from Federal sources 424 11,852

Budget authority, net $25,500,000 $23,429,839

Outlays, gross $25,190,604 $23,320,255

Actual offsetting collections (43,510) (58,752)

Outlays, net 25,147,094 23,261,503

Agency Outlays, Net $25,147,094 $23,261,503

The accompanying notes are an integral part of these statements.
43

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Significant Accounting Policies

(a) Reporting Entity – The FLRA is an independent, administrative Federal agency created by 

Title VII of the Civil Service Reform Act of 1978, with a mission to carry out five statutory 

responsibilities: (1) determining the appropriateness of units for labor organization 

representation; (2) resolving complaints of unfair labor practices; (3) adjudicating exceptions 

to arbitrators’ awards; (4) adjudicating legal issues relating to duty to bargain; and 

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

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

(b) Basis of Accounting and Presentation – The financial statements have been prepared to 

report the financial position, net cost of operations, changes in net position, and budgetary 

resources of the FLRA in accordance with the Chief Financial Officers Act of 1990, the 

Government Management Reform Act of 1994, and the Accountability of Tax Dollars Act of 

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

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

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

Management and Budget (OMB), as prescribed in OMB Circular A-136, Financial 

Reporting Requirements, and pursuant to the requirements of 31 U.S.C. § 3515(b). These 

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

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

budgetary accounting transactions. Under the accrual method of accounting, revenues are 

recognized when earned, and expenses are recognized when incurred, without regard to the 

receipt or payment of cash. The budgetary accounting principles, on the other hand, are

designed to recognize the obligation of funds according to legal requirements, which in many 

cases occur before an accrual-based transaction takes place. The recognition of budgetary 

accounting transactions is essential for compliance with legal constraints and controls over 

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

basis of accounting.

(c) Budget Authority – The Congress passes appropriations annually that provide the FLRA 

with authority to obligate funds for necessary salaries and expenses to carry out mandated 

program activities. These funds are available until expended, subject to OMB apportionment 

and to Congressional restrictions on the expenditure of funds. Also, the FLRA places 

internal restrictions on fund expenditures to ensure the efficient and proper use of all funds.

(d) Fund Balance with the Treasury – FLRA receipts and disbursements are processed by the 

Department of the Treasury. Fund balances with the Treasury consist of appropriated funds 

that are available to pay current liabilities and to finance authorized purchase commitments. 

No cash is held in commercial bank accounts.

(e) Accounts Receivable – Accounts receivable consist of amounts due from other Federal 

entities and from current and former employees and vendors. Amounts due from the public 
44

are stated net of an allowance for uncollectible accounts that is based on an analysis of 

outstanding receivables balances and past collection experience. No allowance is established 

for intragovernmental receivables, as they are considered fully collectible from other Federal 

agencies.

(f) General Property and Equipment (P&E) – This category consists of equipment and internal 

use software. The basis for recording purchased P&E is full cost, including all costs incurred 

to bring FLRA P&E to and from a location suitable for its intended use. P&E is depreciated 

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

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

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

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

P&E that are not capitalized because they are under the capitalization threshold are expensed 

in the year of acquisition.

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

similar items that individually are worth less than $25,000, but collectively are worth more 

than $100,000 are also capitalized using the same general P&E categories and useful lives as 

capital acquisitions. Major building alterations and renovations are capitalized, while 

maintenance and repair costs are charged to expense as incurred.

General P&E Category Service Life

Software 3 years

Computer equipment 5 years

Office equipment 7 years

Office furniture 15 years

Leasehold improvements Life of lease

(g) Liabilities – Liabilities represent the amount of monies or other resources likely to be paid by 

the 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, since there is no 

certainty that the appropriation will be enacted. Also, the Federal government, acting in its 

sovereign capacity, can abrogate liabilities other than contracts. Liabilities that are covered 

by budgetary resources consist of intragovernmental and public accounts payable and 

accrued funded payroll. Liabilities not covered by budgetary resources in FY 2013 and FY 

2014 consist of accrued and actuarial Federal Employees Compensation Act (FECA) 

compensation and unfunded employee leave.

(h) FECA Liabilities – An accrued FECA liability is recorded for actual and estimated future 

payments to be made for workers’ compensation pursuant to the FECA. The actual costs 

incurred are reflected as a liability because agencies will reimburse the Department of Labor 

(DOL) two years after the actual payment of expenses. Future revenues will be used for their 

reimbursement to the DOL. The liability consists of: (1) the unreimbursed cost paid by the 
45

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

estimated future payments calculated by the DOL.

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

liability estimate is based on the DOL’s FECA actuarial model that takes the amount of 

benefit payments over the last twelve quarters and calculates the annual average of payments 

for medical expenses and compensation. This average is then multiplied by the liabilities-tobenefits paid ratios for the whole FECA program. The ratios may vary from year to year as a 

result of economic assumptions and other factors, but the model calculates a liability 

approximately twelve times the annual payments.

(i) Annual, Sick and Other Leave – Amounts associated with the payment of annual leave are 

accrued while leave is being earned by employees, and this accrual is reduced as leave is 

taken. Each year the balance in the accrued annual leave account is adjusted to reflect 

current pay rates. To the extent that current or prior-year appropriations are not available to 

finance annual leave, future financing sources will be used. Sick leave and other types of 

non-vested leave are expensed as taken.

Any liability for sick leave that is accrued but not taken by a Civil Service Retirement 

System (CSRS)-covered employee is transferred to the Office of Personnel Management 

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

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

credit until October 28, 2009. For retirements effective between October 28, 2009 and 

December 31, 2013, 50 percent of unused sick leave can be used for additional service 

credit. For retirements effective after December 31, 2013, 100 percent of unused sick leave 

can be credited.

(j) Accounts Payable and Other Accrued Liabilities – Accounts payable and accrued liabilities 

represent a probable future outflow or other sacrifices of resources as a result of past 

transactions or events. Liabilities are recognized when they are incurred, regardless of 

whether they are covered by available budgetary resources. FLRA liabilities cannot be 

liquidated without legislation that provides resources to do so.

(k) Net Position – The components of net position are unexpended appropriations and 

cumulative results of operations. Unexpended appropriations include undelivered orders and 

unobligated balances. Undelivered orders reflect the amount of goods and services ordered 

that have yet to be actively or constructively received. Unobligated balances are the amount 

of appropriations or other authority remaining after deducting the cumulative obligations 

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

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

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

(l) Retirement Plans – The FLRA’s employees participate in the CSRS or the FERS. For CSRS 

employees, hired prior to January 1, 1984, the FLRA withholds seven percent of each 

employee’s salary and contributes seven percent of the employee’s basic salary to the CSRS 

Retirement and Disability Fund. These employees may also contribute, on a tax-deferred 
46

basis, to a defined contribution plan – the Thrift Savings Plan (TSP). The regular Internal 

Revenue Service limit in FY 2013 and FY 2014 was $17,500. The FLRA is not required to 

and does not contribute any matching amounts for CSRS employees.

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

FERS and Social Security automatically cover most employees hired after December 31, 

1983. Employees hired before January 1, 1984 elected either to join the FERS and Social 

Security or to remain in the CSRS. For FERS employees, the FLRA withholds 6.2 percent in

old age survivors and disability insurance up to a specified wage ceiling and 0.8 percent of an 

employee’s gross earnings for retirement. In FY 2014, the FLRA matched the retirement 

withholdings with a contribution equal to 11.9 percent of the employee’s taxable salary. Due 

to enactment of the FERS Revised Annuity Employee and Further Revised Annuity 

Employee programs, the agency matched with a contribution equal to 9.6 percent for 

employees hired during and after calendar year 2013.

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

account is automatically established. The FLRA is required to make a mandatory 

contribution of one percent of the base salary for each employee under the FERS. The 

agency is required to match the employee’s contribution up to a maximum of five percent of 

his or her salary. Matching contributions are not made to the TSP accounts established by 

CSRS employees. The FLRA does not report on its financial statements information 

pertaining to the retirement plans covering its employees. Reporting amounts such as plan 

assets, accumulated plan benefits, and related unfunded liabilities, if any, are the 

responsibility of the OPM.

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

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

for Social Security payments (even if they have not retired). In these instances, the FLRA 

remits the employer’s share of the required contribution.

(m) Imputed Financing from Costs Absorbed by Others – The FASAB’s SFFAS No. 5, 

Accounting for Liabilities of the Federal Government, requires that employer agencies 

recognize the full cost of pension, health, and life insurance benefits during their employees’ 

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

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

Insurance Program, must provide the “cost factors” that adjust the agency contribution rate 

to the full cost for the applicable benefit programs. An imputed financing source and 

corresponding imputed personnel cost is reflected in the Statement of Changes in Net 

Position.

(n) Revenue and Other Financing Sources – The FLRA’s revenues are derived from 

reimbursable work agreements and a direct, annual appropriation. The FLRA recognizes 

reimbursable work when earned, i.e., services have been provided. Each reimbursable work 

agreement specifies the dollar value of the agreement and is based on estimated resources 

needed to perform the specified services.
47

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

Annual appropriations are used, within statutory limits, for salaries and administrative 

expenses and for operating and capital expenditures for essential P&E. Appropriations are 

recognized as non-exchange revenues at the time the related program expenses are incurred. 

Appropriations expended for capitalized P&E are recognized as expenses when an asset is 

consumed in operations. The FLRA’s annual appropriation for FY 2013 was $24,723,000,

which was reduced by $1,293,161 in sequestration and across-the-board rescissions included 

in Public Law 113-6. The agency’s annual appropriation for FY 2014 was $25,500,000.

(o) Expired Accounts and Cancelled Authority – Unless otherwise specified by law, annual

budget authority expires for incurring new obligations at the beginning of the subsequent 

fiscal year. The account into which the annual authority is placed is called an expired 

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

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

or decrease valid obligations incurred during the unexpired period that were not previously 

reported. At the end of the fifth expired year, the account is cancelled and any remaining 

money is returned to the Treasury.

(p) Transactions with Related Parties – In the course of its operations, the FLRA has 

relationships and conducts financial transactions with numerous Federal agencies. The most 

prominent of these relationships are with the Treasury, the DOL, the Department of the 

Interior, the Department of Transportation, the Department of Homeland Security, and the 

General Services Administration.

(q) Contingencies – A contingency is an existing condition, situation, or set of circumstances 

involving uncertainty as to possible gain or loss to the agency. The uncertainty will 

ultimately be resolved when one or more future events occur or fail to occur. With the 

exception of pending, threatened, or potential litigation, a contingent liability is recognized 

when a past transaction or event has occurred, a future outflow or other sacrifice of 

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

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

past transaction or event has occurred, a future outflow or other sacrifice of resources is 

likely, and the related future outflow or sacrifice of resources is measurable.

(r) Use of Estimates – The preparation of financial statements in conformity with GAAP 

requires management to make estimates and assumptions that affect the reported amounts of 

assets and liabilities and disclosure of contingent liabilities as of the date of the financial 

statements, as well as the reported amounts of revenues and expenses during the reporting 

period. Actual results could differ from those estimates.

(s) Advances and Prepayments – Advance payments are generally prohibited by law. There 

are some exceptions, such as reimbursable work agreements, subscriptions, and payments to 

contractors and employees. Payments made in advance of the receipt of goods and services 

are recorded as advance payments and recognized as expenses when the related goods and 

services are received.
48

Note 2: Fund Balance with the Treasury

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

amounts shown on the Balance Sheet represent the FLRA’s right to draw on the Treasury for 

valid expenditures. The fund balance as shown on the FLRA records is reconciled monthly with

records from the Treasury.

Fund Balance with the Treasury

As of September 30, 2014 2013

General funds $3,625,753 $3,488,106

Other fund types 899 0

Total $3,626,652 $3,488,106

Status of Fund Balance with the Treasury

As of September 30, 2014 2013

Unobligated balance available $107,618 $67,001

Unobligated balance unavailable 670,761 836,323

Obligated balance not yet distributed 2,848,273 2,584,500

Non-budgetary fund balance with the Treasury 0 282

Total $3,626,652 $3,488,106

Note 3: Accounts Receivable, Net

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

Federal agencies (intragovernmental) and the public.

Accounts Receivable, Net

As of September 30, 2014 2013

From Federal agencies, net $0 $0

From the public, net 3,634 16,742

Total $3,634 $16,742
49

Note 4: General Property and Equipment, Net

Category

Service 

Life

Acquisition 

Value

Accumulated 

Depreciation

2014 Net 

Book 

Value

2013 Net 

Book 

Value

Software 3 years $258,957 $(258,957) $0 $0

Computer equipment 5 years 953,502 (467,536) 485,966 49,857

Office equipment 7 years 541,273 (504,782) 36,491 66,909

Office furniture 15 years 526,039 (460,420) 65,619 95,866

Leasehold improvements Life of lease 428,172 (428,172) 0 0

Total $2,707,943 $(2,119,867) $588,076 $212,632

Note 5: Liabilities Not Covered By Budgetary Resources

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

will be funded in a future year, and an unfunded estimated liability for future workers’ 

compensation claims based on data provided from the DOL. The actuarial calculation is based 

on benefit payments made over twelve quarters, and calculates the annual average of payments. 

For medical expenses and compensation, this average is then multiplied by the liability-tobenefit paid ratio for the whole FECA program.

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

year-end, the balance in the unfunded leave account is adjusted to reflect the liability at current 

pay rates and leave balances. Unfunded leave is paid from future funding sources and, 

accordingly, is reflected as a liability not covered by budgetary resources. Sick and other leave 

is expensed as taken. All other liabilities are considered to be covered by budgetary resources.

Liabilities Not Covered By Budgetary Resources

For the Years ended September 30, 2014 2013

Intragovernmental – Unfunded FECA liabilities $216,609 $227,025

Federal employee benefits – FECA actuarial liability 1,126,026 1,180,558

Unfunded leave 1,511,241 1,412,090

Total $2,853,876 $2,819,673

Note 6: Other Liabilities

Other liabilities in FY 2013 include payment for interest on reimbursable travel expenses and 

payment for responding to Freedom of Information Act requests. Payment was deposited into 

the Treasury’s General Fund.
50

Note 7: Leases

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

the FLRA is not liable for any lease terms beyond one year.

Future Minimum Lease Payments

FY Equipment Building Total

2015 $13,527 $2,290,620 $2,304,147

2016 0 2,204,956 2,204,956

2017 0 2,256,840 2,256,840

2018 0 2,170,942 2,170,942

2019 0 2,193,522 2,193,522

Thereafter 0 4,454,141 4,454,141

Total $13,527 $15,571,021 $15,584,548

Note 8: Commitments and Contingencies

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

brought by or against the agency. In the opinion of FLRA management, the ultimate resolution 

of any proceedings, actions, and claims will not materially affect financial position or results of 

operations of the FLRA. The agency examined its FY 2009 obligations prior to cancellation, and 

believes that it does not have any outstanding that will require future resources to liquidate.

Note 9: Intragovernmental Costs and Exchange Revenue

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

on a transaction by transaction basis. Preceding transactions in the lifecycle of a product will not 

have an impact on subsequent transactions. If the FLRA purchases goods or services from 

another Federal entity, capitalizes them into inventory, and later resells them to the public, the 

cost of the original purchase of resale assets from the other Federal entity will be classified as 

“intragovernmental” at the time of the purchase. At ultimate sale to the end user, the resulting 

cost of goods will be classified as “with the public.” The purpose of this classification is to 

enable the Federal government to provide consolidated financial statements, and not to match 

public and intragovernmental revenue with costs that are incurred to produce public and 

intragovernmental revenue.
51

Note 10: Apportionment Categories of Obligations Incurred: Direct Versus 

Reimbursable Obligations

Obligations Incurred

For the Years Ended September 30, 2014 2013

Direct obligations – Category A $25,463,310 $23,584,501

Reimbursable obligations – Category A 24,006 49,541

Total $25,487,316 $23,634,042

Note 11: Undelivered Orders at the End of the Period

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

2013 and 2014 was $1,147,067 and $2,168,227, respectively.

Note 12: Explanation of Differences between the SBR and the Budget of the 

U.S. Government

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

Reconciling Budgetary and Financial Accounting, calls for explanation of material differences 

between amounts reported in the Statement of Budgetary Resources and the actual balances 

published in the Budget of the U.S. Government (the President’s Budget). The FY 2015

President’s Budget, with actual amounts for FY 2013, has been reconciled to the Statement of 

Budgetary Resources. The FY 2016 President’s Budget, with actual amounts for FY 2014, will 

not be published until February 2015.

Note 13: Reconciliation of Net Cost of Operations to Budget

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

for the fiscal years ended September 30, 2013 and 2014 are shown in the table on the following 

page.
52

Reconciliation of Net Cost of Operations to Budget

For the Years Ended September 30, 2014 2013

Resources Used to Finance Activities:

 Obligations incurred $25,487,316 $23,634,042

 Spending authority from offsetting collections:

 Collected (43,510) (58,752)

 Change in unfilled customer orders 777 3,920

 Recoveries of prior year unpaid obligations (33,362) (418,760)

Transfers in/out without reimbursement 0 (163,967)

 Imputed financing sources 1,400,299 1,360,359

Other 0 163,682

Total Resources Used to Finance Activity $26,811,520 $24,520,524

Resources Used That Do Not Fund Net Cost of Operations:

Change in unfilled customer orders $(777) $(3,920)

 Change in undelivered orders (1,040,354) 106,333

 Current-year capitalized purchases (455,885) 0

Components of the Net Cost of Operations Which Do Not 

Generate or Use Resources in the Reporting Period:

 Change in non-Federal receivables 13,107 (3,234)

 Other financing sources not in the budget (1,400,299) (1,360,359)

 Depreciation and amortization 80,441 140,530

 Future funded expenses 88,734 (120,990)

 Imputed costs 1,400,299 1,360,359

 Other expenses not requiring budgetary resources (54,532) (4,698)

Net Cost of Operations $25,442,254 $24,634,545
53

Report of Independent Auditors

To Chairman Pope

Federal Labor Relations Authority

Report on the Financial Statements 

We have audited the accompanying financial statements of the Federal Labor Relations 

Authority (FLRA), which comprise the balance sheet as of September 30, 2014 and 2013, and 

the related statements of net cost, changes in net position, and budgetary resources, for the years 

then ended.

Management's Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with U.S. generally accepted accounting principles; this includes the design, 

implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of the financial statements that are free from material misstatement, whether due to 

fraud or error. 

Auditor's Responsibility 

Our responsibility is to express an opinion on the financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in the U.S. Government 

Auditing Standards, issued by the Comptroller General of the United States; and Office of 

Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial 

Statements. Those standards and OMB Bulletin No. 14-02 require that we plan and perform the 

audit to obtain reasonable assurance about whether the financial statements are free from 

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor's 

judgment, including the assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the agency's preparation and fair presentation of the 

financial statements in order to design audit procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the agency's internal 

control. Accordingly, we do not express such an opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant estimates made 

by management, as well as evaluating the overall presentation of the financial statements. We 

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 

for our opinion.
54

Opinion on Financial Statements 

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

position of the Federal Labor Relations Authority as of September 30, 2014 and 2013, and its 

net costs; changes in net position; and budgetary resources for the years then ended.

Consideration of Internal Control

In planning and performing our audit, we considered the Federal Labor Relations Authority's

internal control over financial reporting as a basis for designing our auditing procedures and to 

comply with the Office of Management and Budget (OMB) audit guidance for the purpose of 

expressing our opinion on the financial statements, but not for the purpose of expressing an 

opinion on internal control and compliance or on management's assertion on internal control 

included in MD&A. Accordingly, we do not express an opinion on internal control over 

financial reporting and compliance or on management's assertion on the effectiveness of the 

entity's internal control over financial reporting or on management's assertion on internal control 

included in the MD&A.

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraph and was not designed to identify all deficiencies in internal 

control that might be material weaknesses or significant deficiencies and therefore, material 

weaknesses or significant deficiencies may exist that were not identified. We did not identify 

any deficiencies in internal control over financial reporting that we consider to be material 

weaknesses or significant deficiencies, as defined below.

A deficiency in internal control 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 and correct misstatements on a timely basis. A material weakness is a 

deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity's financial statements will not be prevented, 

or detected and corrected, on a timely basis.

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

less severe than a material weakness yet important enough to merit the attention of those charged 

with governance.

We noted other non-reportable matters involving internal control and its operation that we will 

communicate in a separate management letter to FLRA management. 

Compliance With Laws and Regulations

As part of obtaining reasonable assurance about whether the Federal Labor Relations 

Authority financial statements are free from material misstatement, we also performed tests of 

its compliance with certain provisions of laws and regulations for fiscal year 2014. However, 

providing an opinion on compliance with those provisions was not an objective of our audit, and 

accordingly, we do not express such an opinion. The results of our tests of compliance disclosed 
55

no instances of noncompliance or other matters that are required to be reported under 

Government Auditing Standards.

Consistency of Other Information

The information in the Management's Discussion and Analysis is not a required part of the 

financial statements, but is supplementary information required by U.S. generally accepted 

accounting principles. We have applied certain limited procedures, which consisted principally 

of inquiries of management regarding the methods of measurement and presentation of this 

information. However, we did not audit this information and, accordingly, we express no 

opinion on it.

The information in the Chairman's Message, Performance Section, and Other Accompanying 

Information is presented for purposes of additional analysis and is not required as part of the 

financial statements. This information has not been subjected to auditing procedures and, 

accordingly, we express no opinion on it.

Rockville, Maryland

November 14, 2014
56

OTHER ACCOMPANYING INFORMATION

SUMMARY OF FINANCIAL STATEMENT AUDIT

Audit Opinion: Unqualified

Restatement: No

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Material weaknesses 0 0 0 0 0

SUMMARY OF MANAGEMENT ASSURANCES

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

Statement of Assurance: Unqualified

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Material weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance: Unqualified

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Material weaknesses 0 0 0 0 0 0

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance: Systems conform

Beginning 

Balance New Resolved Consolidated Reassessed

Ending 

Balance

Non-conformances 0 0 0 0 0 0
57

INSPECTOR GENERAL

MEMORANDUM

DATE: October 23, 2014

TO: Carol Waller Pope

Chairman

Ernest DuBester

Member

Patrick Pizzella

Chairman

FROM: Dana Rooney-Fisher

Inspector General

SUBJECT: Inspector General Identified Management Challenges

This memorandum transmits the key management and performance challenges facing the Federal 

Labor Relations Authority (FLRA) as identified by the Inspector General (IG). 

The FLRA is required to prepare an annual performance report as well as prepare and submit 

audited financial statements to the President, the Office of Management and Budget, and to 

appropriate committees and subcommittees of Congress. The Reports Consolidation Act of 

2000, Public Law 106-531, requires the IG to provide the agency head with a statement that 

summarizes the most serious management and performance challenges facing the agency and 

briefly assess the agency’s progress in addressing those challenges. This statement should 

accompany the agency's annual performance report.

Accordingly, the attached document describes the most serious management and performance 

challenges facing the FLRA along with a brief assessment of management’s progress in 

addressing them. The ongoing challenges include: information technology security and proper 

handling of records. 

I also noted the above ongoing challenges in my prior year report dated October 23, 2013. The 

agency has made substantial progress in addressing these challenges as further described in the 

attachment. Further management has taken sufficient action to effectively mitigate the Human 

Resources IG identified challenge that was reported in the Fiscal Year (FY) 2013 PAR, which 

the Office of Inspector General (OIG) no longer considers to be a serious challenge. I 

appreciate management’s strong commitment in tackling these challenges and look forward to 

working collaboratively in addressing them.

 UNITED STATES OF AMERICA

 FEDERAL LABOR RELATIONS AUTHORITY

 WASHINGTON, D.C. 20424-0001
58

Attachment

Challenge: Security as well as information technology security

While technological advances enable increases in efficiency, they also can pose additional 

vulnerabilities and threats to agency operations. The agency must remain vigilant in establishing 

a control environment that incorporates monitoring potential Information Technology (IT) risks, 

threats and vulnerabilities and in mitigating them. The agency has undertaken annual reviews of 

the agency’s information security program as required by the Federal Information Security 

Management Act (FISMA). The FISMA requires the FLRA to prepare a report which 

summarizes the findings of such reviews and submit it to the Office of Management and Budget. 

The report is considered non-public. The November 2013 FISMA report contained five 

vulnerabilities which present risks and challenges that confront management and require 

additional action to be fully resolved. Three of the challenges were identified in the FY 2009 

FISMA Report and the remaining two were identified in the FY 2012 FISMA Report. 

Management's progress to address these issues was hampered by the absence of a Chief 

Information Officer (CIO) for much of the fiscal year. 

Progress made:

Management has made significant progress in addressing certain information technology 

challenges identified in prior years. Such progress demonstrates that the FLRA management is 

serious about ensuring the agency maintains a robust information security program. However, as 

of the date of this report, five vulnerabilities remain unresolved. Management hired a CIO in 

March 2014 and has a plan to correct the remaining vulnerabilities by May 2015. 

Challenge: Proper handling of records (hard copy and electronic) 

Management has made progress in addressing this challenge which was mentioned in my report 

dated October 23, 2013. For example, The FLRA has made steady progress towards its multiyear system implementation plan goals with the completion of its E-filing case system, a very 

noteworthy accomplishment. This is an excellent step forward in using technology to enhance 

operational efficiencies by implementing systems to automate paper-based manually intensive 

processes. However, system automation is one part of a comprehensive approach to address the 

challenge of records management. Industry practices dictate that along with implementing new 

technology, it is imperative that a complete oversight or governance process be established 

which includes documenting agency policies, procedures and processes that address the proper 

handling of all hard copy and electronic records. Although new automated systems offer 

increased capabilities, they also present new internal (management) control challenges. The 

agency needs to ensure various roles (e.g., system administrator) and related authorities and 

capabilities are properly assigned, documented, managed and monitored. Such written 

documentation should be kept up-to-date, and this need becomes increasingly critical as

additional functionality and enhancements are added to the system. Further, although, certain 

types of records do not have legal retention requirements, the policies, processes and procedures 

should clearly and specifically instruct staff on the proper handling and management should 

periodically verify that such policies are being followed. 
59

Progress made:

The FLRA has made steady progress in accomplishing its multi-year plan that spans through FY 

2016. A very note worth accomplishment, throughout FY 2014, FLRA continued developing its 

case management systems (CMS) – which is integrated with the FLRA eFiling system –

applications are now merged, creating bridges between the two systems, to support end-to-end 

case processing capability. FLRA recognizes the need to develop policies and procedures to 

provide staff with clear guidance for handling records and ensuring compliance with agency 

policies. Management should continue working its multi-year agenda to integrate its E-filing and 

other automated systems.
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MANAGEMENT’S RESPONSE

Since FY 2009, the FLRA has engaged in a thorough review of agency programs and 

performance. Efforts have been focused on budget-related matters and the development of 

management initiatives to improve the FLRA’s performance of its statutory mission. In addition 

to program performance, the review has included information technology (IT) investments, 

human resources (HR), case processing, and financial management. As a result, in recent years, 

the FLRA has made substantial progress in addressing and resolving deficiencies and challenges 

identified by the Inspector General. The remaining challenges identified by the Inspector 

General include IT security and proper handling of records.

With respect to these ongoing challenges, management has made, and continues to make, 

progress towards their resolution with the input of agency leadership, management, and 

employees and their representative union. As for IT security, the agency remains vigilant in 

maintaining a control environment that monitors and mitigates risks, threats, and vulnerabilities, 

and is committed to establishing and maintaining a program that is fully Federal Information 

Security Management Act compliant. There are specific agency plans of action in place to 

ensure such compliance. And to date, the FLRA was successful in correcting one of the five 

identified vulnerabilities by adhering to those plans. And to date, the FLRA was successful in 

correcting two of the five identified 2013 vulnerabilities by adhering to those plans.

Finally, the FLRA continues its efforts to ensure proper handling of records, noting in particular 

that the ongoing development of a case management infrastructure that supports electronic case 

filing and files will further advance this effort. The FLRA has made steady progress in 

accomplishing its multi-year plan, and full implementation will span fiscal years 2014, 2015, and 

2016. The FLRA recognizes that a necessary component of the implementation of electronic 

case files is the development of policies, processes and procedures that provide staff with clear 

guidance for handling records and ensure compliance with agency policies.

IMPROPER PAYMENTS ELIMINATION AND RECOVERY

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

Elimination and Recovery Act of 2010 (IPERA), requires agencies to annually report 

information on improper payments. The FLRA has reviewed all of its programs and determined 

that none are susceptible to significant improper payment. The IPERA also requires agencies to 

conduct payment recapture audits for each program that expends $1 million or more annually, if 

conducting such audits would be cost-effective. Based on the criteria set forth in Appendix C of 

Office of Management and Budget Circular A-123, the agency has also determined that it would 

not be cost-effective to establish a recovery audit program for its programs that expend more 

than $1 million. Recoveries are not expected to be greater than the costs incurred to identify any 

overpayments.

FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, N.W.

Washington, DC 20424

www.flra.gov