Thirty-six 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 2015
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...................................................................................................................14

Financial Analysis..........................................................................................................................28

Management Assurances ...............................................................................................................31

PERFORMANCE GOALS AND RESULTS......................................................32

Goal 1: Provide Timely Review and Disposition of Unfair-Labor-Practice Cases......................32

Goal 2: Provide Timely Review and Disposition of Representation Cases..................................34

Goal 3: Provide Timely Review and Disposition of Arbitration Cases........................................35

Goal 4: Provide Timely Review and Disposition of Negotiability Cases ....................................36

Goal 5: Provide Timely Review and Disposition of Bargaining-Impasse Cases .........................37

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

Minimize and/or Resolve Labor-Management Disputes................................................39

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

Enhance Program Achievement......................................................................................41

Goal 8: Develop, Manage, and Utilize the FLRA’s Human Capital to Meet Program Needs.....42

Verification and Validation of Performance Data .........................................................................45

PRINCIPAL FINANCIAL STATEMENTS .......................................................46

Message from the Chief Financial Officer.....................................................................................46

Balance Sheet.................................................................................................................................47

Statement of Net Cost ....................................................................................................................48

Statement of Changes in Net Position ...........................................................................................49

Statement of Budgetary Resources................................................................................................50

Notes to the Financial Statements..................................................................................................51

Report of Independent Auditors.....................................................................................................62

OTHER ACCOMPANYING INFORMATION.................................................65

Summary of Financial Statement Audit.........................................................................................65

Summary of Management Assurances...........................................................................................65

Memorandum on Inspector General Identified Management Challenges.....................................66

Management’s Response ...............................................................................................................69

Improper Payments Elimination and Recovery .............................................................................70
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MESSAGE FROM THE CHAIRMAN

I am pleased to submit the FY 2015 Performance and Accountability Report 

for the Federal Labor Relations Authority (FLRA). Overall, FY 2015 was an 

extremely productive and successful year for the FLRA. The agency faced 

head-on the challenges that FY 2015 brought, 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 labormanagement relations, and ensuring compliance with the Federal Service Labor-Management 

Relations Statute (the Statute). 

With respect to mission performance, FY 2015 was a strong year for the FLRA. I am proud to 

report that the Authority completely eliminated its backlog of overage cases in FY 2015. It also 

issued 24 percent more merits decisions than it did in FY 2014, and it experienced a 22 percent 

increase in case filings. The Office of the General Counsel again exceeded all of its strategic and 

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

representation cases, and it continued to close more cases than it has in previous years. The 

Federal Service Impasses Panel also exceeded all of its strategic and performance goals. And the 

FLRA delivered over 300 training, outreach, and facilitation sessions to over 8,000 customers, 

continuing not only its commitment to the success of President Obama’s Executive Order 

13,522, Creating Labor-Management Forums to Improve Delivery of Government Services, but 

also to more training regarding rights and responsibilities under the Statute. 

Alternative-dispute resolution (ADR) activities throughout the agency also continued to be 

extremely successful. ADR is deeply embedded in the way that all cases are processed 

throughout the agency. Indeed, in the OGC, the sheer volume of ULP charges filed 

(approximately 4,600 in FY 2015) would overwhelm that component without the voluntary 

settlement of so many by the highly regarded employees in the Regional Offices where they are 

processed. In the Authority component, additional ADR is available in every ULP complaint 

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

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

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

In the OGC, for example, approximately 96 percent of the ULP cases and 95 percent of the 

representation cases in which the parties agree to use ADR settled as a result. And, in the OALJ, 

over 89 percent of the cases in which the parties agree to use ADR provided through the 

Settlement Judge Program settle. As another example, 100 percent of the negotiability cases in 

which the parties mutually agreed to use ADR services provided by the Authority’s 

Collaboration and Alternative Dispute Resolution Office (CADRO) resulted in full resolution of 

the underlying dispute and closure of the pending case. And 100 percent of the CADRO 

arbitration cases resulted in at least partial resolution of the underlying dispute. 
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I also proudly note – on behalf of us all – that in FY 2015 the FLRA captured the rank of #2 on 

three important indexes in the Office of Personnel Management’s Federal Employee Viewpoint 

Survey (FEVS) – Employee Engagement, Global Satisfaction, and New IQ. We also 

experienced impressive positive-ratings increases from 2014 in 66 items, and OPM identified all 

68 items on the survey as strengths for the FLRA. We also achieved an all-time high employeeresponse rate of 84 percent, demonstrating that employees value the survey process and use the 

FEVS as a tool to communicate their interests and concerns to agency leadership and managers. 

Further, the FLRA’s Human Capital Assessment and Accountability Framework index scores 

again increased in every category – by as much as 8 percent over 2014. Moreover, the FLRA 

captured the rank of #5 in the Partnership for Public Service’s 2014 Best Places to Work in the 

Federal Government rankings, reflecting an impressive and unprecedented improvement of over 

300 percent in the FLRA’s overall engagement score since 2009. This sustained progress over 

the six and a half years reflects the commitment of agency leadership at all levels to manage the 

agency with transparency and accountability, and to truly and meaningfully engage our 

employees. And, consistent with the President’s Management Agenda (PMA) Cross Agency 

Priority (CAP) Goal on People and Culture, the FLRA continues to be a leader in creating a 

culture of excellence and engagement that fosters higher mission performance. 

Finally, in FY 2015, with the agency’s existing 2010-2015 Strategic Plan nearing its expiration, 

the FLRA engaged in a comprehensive strategic-planning initiative to develop and implement a 

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

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

allocations, and performance, the FLRA established strategies and goals that are designed to 

maximize the delivery of agency services throughout the federal government. 

These accomplishments, which were achieved through the dedication, collaboration, and 

engagement of employees at all levels, enabled the FLRA to fulfill its statutory mission to 

promote stable, constructive labor-management relations for an effective and efficient 

government. 

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

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

page 31 of this report. I have also made every effort to verify the accuracy and completeness of 

the performance data presented in this report. 

Carol Waller Pope

Chairman

Federal Labor Relations Authority

November 16, 2015
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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 10,988 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 11,491, to administer the 

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

major disputes arising under Executive Order 10,988. Executive Order 11,491, 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 through 

the resolution and prevention of labor disputes in a manner that gives full effect to the collectivebargaining rights of employees, unions, and agencies. Although the FLRA is a small agency, 

accomplishing its mission – including timely, quality, and impartial resolution of labormanagement disputes – is essential for program performance government-wide. If a labormanagement dispute remains unresolved for too long, then mission accomplishment at the 

affected agencies likely will suffer.

ORGANIZATIONAL STRUCTURE

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

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

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

two other organizations – the Foreign Service Impasse Disputes Panel and the Foreign Service 

Labor Relations Board.
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FEDERAL SERVICE IMPASSES PANEL AUTHORITY Ernest DuBester, Member Patrick Pizzella, Member OFFICE OF THE GENERAL COUNSEL

FOREIGN SERVICE LABOR RELATIONS BOARD FOREIGN SERVICE IMPASSE DISPUTES PANEL REGIONAL OFFICES Atlanta Boston Chicago Dallas Denver San Francisco Washington, D.C.

OFFICE OF THE INSPECTOR GENERAL EQUAL EMPLOYMENT OPPORTUNITY PROGRAM

OFFICE OF ADMINISTRATIVE LAW JUDGES

OFFICE OF THE SOLICITOR

COLLABORATION AND ALTERNATIVE DISPUTE RESOLUTION OFFICE OFFICE OF CASE INTAKE AND PUBLICATION

OFFICE OF THE EXECUTIVE DIRECTOR

ADMINISTRATIVE SERVICES DIVISION BUDGET AND FINANCE DIVISION HUMAN RESOURCES DIVISION INFORMATION RESOURCES MANAGEMENT DIVISION

Carol Waller Pope, Chairman/Member Chief Executive & Administrative Officer Julia Akins Clark, General Counsel Mary E. Jacksteit, Chairman Barbara B. Franklin, Member Edward F. Hartfield, Member Martin H. Malin, Member Donald S. Wasserman, Member Marvin E. Johnson, Member David E. Walker, Member

U.S. FEDERAL LABOR RELATIONS AUTHORITY

The Authority

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

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

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

administrative officer. 

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

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

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

representation decisions of Regional Directors in representation disputes over union elections 

and unit determinations.

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

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

the Collaboration and Alternative Dispute Resolution Office (CADRO). 

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

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

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

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

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

Federal District Courts. The Office of the Solicitor also serves as the agency’s in-house counsel, 

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

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

Agency Ethics Official.

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

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

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

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

provides alternative-dispute resolution (ADR) services in all ULP cases. Decisions of the ALJs 

may be appealed to the Authority.

The Office of the General Counsel

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

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

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

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

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

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

50 percent of the FLRA’s staff is employed in the regions, 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 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 FSIP resolves impasses between federal agencies and unions representing federal employees 

arising from negotiations over conditions of employment under the Statute and the Federal 

Employees Flexible and Compressed Work Schedules Act. The FSIP normally comprises seven 

part-time Presidential appointees – a Chairman and six other Members – who are appointed 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 FSIP may determine to assert jurisdiction 

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

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

private arbitrators. If the parties are still unable to reach a voluntary settlement, then the FSIP 

may take whatever action it deems necessary to resolve the dispute, including imposition of 

contract terms through a final action. Parties may not appeal the merits of the FSIP’s decision to 

any court.

STRATEGIC AND PERFORMANCE-PLANNING FRAMEWORK

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

agency services throughout the federal government through a comprehensive review – by 

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

resource allocations, and performance. Throughout FY 2015, the FLRA has engaged in a 

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

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

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

2015 Strategic Plan, and it 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 the government-wide initiative to leverage existing data to facilitate agencies’ 

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

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

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

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

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

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

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

agency examines the data contained in the MAPS Report in a variety of forums, and it shares the 

agency’s status toward meeting its case-processing performance goals 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 Authority and 

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 levels; and reallocation of resources, including use of details, contract support, and 

temporary hires. As to the latter point, in FY 2015, after identifying a backlog of cases awaiting 

decision in the OALJ, the FLRA utilized internal details; created and filled an additional, 

temporary not-to-exceed, six-month attorney appointment; contracted for time-specific paralegal 

support; established detail opportunities; and sought assistance from re-employed annuitants on a 

temporary, part-time basis to increase mission performance and eliminate the backlog of cases 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 
8

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

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

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

efficient use of human capital. 

FY 2015 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.

2015-2018 Strategic Plan

With the agency’s existing 2010-2015 Strategic Plan nearing its expiration, in FY 2015, the 

FLRA engaged in a comprehensive strategic-planning initiative to develop and implement a 

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

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

allocations, and performance, the FLRA established strategies and goals that are designed to 

maximize the delivery of agency services throughout the federal government. 

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

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

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

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

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

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

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

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

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

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

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

for the duration of the project. 

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

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

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

collection and data-driven leadership and decision-making. In developing this strategic plan, the 
9

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

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

effectiveness. 

Timeliness

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

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

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

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

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

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

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

legally sound analyses and consideration of the issues in dispute.

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

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

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

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

disagreements adjudicated expeditiously by the FLRA, mission performance will suffer. This is 

particularly relevant now as federal agencies are making significant adjustments and changes in 

how they perform their missions in response to the budgetary and policy challenges that they are 

facing.

Alternative Dispute Resolution and Education

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

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

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

case, at every step, results in faster, more effective outcomes for the parties and the FLRA. For 

this reason, the agency continues to leverage existing staff and resources to increase its ADR 

reach. This includes partnering with other agencies – such as the Federal Mediation and 

Conciliation Service (FMCS), the Department of Veterans Affairs, and the General Services 

Administration (GSA) – to train large numbers of practitioners, and supporting labor-management 

forums, pursuant to Executive Order 13,522, Creating Labor-Management Forums to Improve 

Delivery of Government Services.

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

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

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

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

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

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

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

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

to assist members of the federal labor-management-relations community with issues and cases 
10

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

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

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

Throughout FY 2015, IT and automation of agency processes continued to be key areas of focus 

for the agency. Both are fundamental for ensuring the effectiveness and efficiency of the FLRA, 

as measured by the agency’s ability to meet its annual performance goals. The agency continues 

to improve its overall effectiveness and efficiency, as well as the customer-service experience, 

by engaging in new and innovative ways to conduct business, such as through electronic case 

filing (eFiling). In addition, the agency has placed significant emphasis on IT modernization to 

ensure that its IT equipment and infrastructure enable it to maximize gains in efficiency that can 

be achieved through use of technology.

The FLRA continued to work in FY 2015 towards implementing the agency’s long-term goal of 

sharing end-to-end electronic case files throughout the FLRA, as well as the OMB-mandated 

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

goal. In this regard, the more case-related information that the FLRA receives electronically –

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

electronic case file, without the need for FLRA staff to manually scan documents. In recognition 

of this, in FY 2015, the agency developed and began implementing a plan to accomplish the 

transition to fully electronic case files in 4 agile phases over the next 4 years. 

Phase 1 is completion of the implementation of an eFiling System – eFiling 1.0 – for all FLRA 

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

user experience and feedback – through implementation of eFiling 2.0. 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. Heading into FY 2015, the agency had 

already developed and implemented eFiling 1.0 for all but one of the four FLRA offices that 

accepts case filings. In early FY 2015, the agency completed development and implementation 

of eFiling 1.0 for the remaining office, thus every FLRA office that receives case filings – the 

FSIP, the Authority, the OGC, and the OALJ – is now capable of receiving those filings 

electronically. 

During Phase 1, the agency recognized that users were slow to adopt the new eFiling system, and 

the agency began actively seeking feedback regarding the eFiling interface and its usability. 

Based on that user feedback, the agency spent much of FY 2015 focusing on developing, testing, 

and implementing eFiling 2.0 with a new interface that was more intuitive, user-friendly, and 

visually appealing. FLRA eFiling 2.0 is now available in beta for parties to file cases with 

certain FLRA offices, and is scheduled to be completed for all FLRA offices during the first 

quarter of FY 2016. 
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The new and improved eFiling 2.0 interface also serves as the catalyst for Phase 2, which – using 

the same eFiling 2.0 technology – will provide a similar user-friendly and simpler interface for 

the agency’s electronic Case-Management System. Phase 2 also includes the implementation of 

an agency Document Management System, which provides the storage capacity and platform for 

the eventual integration of all electronic case-processing systems. Phase 2 is expected to be 

completed by the end of FY 2017. Phase 3, which is targeted for completion in FY 2018, is the 

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

System, and the Document Management System. And Phase 4 is the complete transition to 

100 percent electronic case files throughout the agency, with a goal of FY 2019 for completion. 

In addition, in FY 2015, the FLRA implemented a new Video Teleconferencing (VTC) System 

and transitioned to business cable, gaining efficiencies and cost savings in network and travel 

costs. The VTC System has already begun to return value, saving agency travel funds and 

offering alternative methods for achieving agency-wide training, outreach, and intervention 

goals. And with the transition to business cable, the agency is estimated to achieve 5 to 10 

percent savings annually for network services. It has also yielded faster connections for the 

FLRA’s Regional Offices, increasing network speeds by 50 to 80 percent. Both initiatives are 

key components in the agency’s effort to achieve efficiencies through use of innovations in 

technology.

Finally, in FY 2015, the FLRA began the process of redesigning the FLRA’s website –

www.FLRA.gov. This effort, which includes input from key internal and external stakeholders, 

is highly collaborative, engaging employees across the agency to develop improvements in the 

FLRA’s website and promote innovative change in how the FLRA delivers its online 

information and services to customers. The new site will be more user friendly, allowing visitors 

to find the information that they need more quickly – with fewer mouse clicks. And it will be 

more intuitive through improved organization of content. By refocusing the website’s 

organization on case types – rather than on office functions – it will provide users with more 

comprehensive, integrated information regarding the FLRA’s mission-related, case-processing 

work. The new site will also provide users with integrated access to all FLRA training 

information and other educational materials in one, centralized location. As part of this 

initiative, the agency is also seizing the opportunity to comprehensively review and update all of 

its website content agency-wide. The new website should be available by the second quarter of 

FY 2016. 

Human Capital

In FY 2015, the FLRA continued its overall success and improvement as measured by the 

Federal Employee Viewpoint Survey (FEVS), leaving no doubt that the FLRA continues to have 

a highly engaged workforce that is dedicated to the accomplishment of its mission. It not only 

captured the rank of #2 on three important indexes – Employee Engagement, Global Satisfaction, 

and New IQ (which relates to the inclusivity of the work environment) – but it also achieved an 

all-time high employee response rate of 84 percent (which is significantly higher than the 

government-wide average of 50 percent). The latter demonstrates that employees value the 

survey process and use the FEVS as a tool to communicate their interests and concerns to agency 

leadership and managers. In addition, the FLRA’s Human Capital Assessment and 
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Accountability Framework index scores again increased in every category for the third straight 

year – by as much as 8 percent over 2014. Specifically, the agency scored 86 percent in 

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

Culture,” 85 percent in “Talent Management,” and 82 percent in “Job Satisfaction” – exceeding 

the government-wide average in each. And the FLRA realized positive-ratings increases from 

2014 in 66 items, and it has 68 identified strengths and no identified challenges. Moreover, the 

agency’s scores are above the government-wide average in 82 out of 84 questions, with: 99% of 

FLRA respondents reporting that they are willing to put in extra effort to get a job done; 98% 

indicating that they are being held accountable for achieving results; 98% positively rating the 

overall quality of the work done by their work unit; 96% indicating that employees in their work 

unit share job knowledge with each other; 95% believing that the workforce has the job-relevant 

knowledge and skills to accomplish organization goals; 94% believing that the agency is 

successful at accomplishing its mission; 94% knowing how their work relates to the agency’s 

goals and priorities; 94% finding that supervisors in their unit support employee development; 

94% believing that managers review and evaluate the organization’s progress toward meeting its 

goals and objectives; and 94% saying that senior leaders support work/life programs. 

These results show that employees at all levels understand the mission of the FLRA, understand 

their role in achieving the mission, and see themselves as an integral part of achieving agencywide success. The agency continues to credit its mission performance successes to its high level 

of employee engagement. Moreover, the agency’s values of transparency, open dialogue, and 

pre-decisional involvement allow for effective collaboration, communication, and continuous 

feedback around mission performance and agency operations. 

Consistent with OPM’s Recruitment, Engagement, Diversity, and Inclusion (REDI) Roadmap, in 

FY 2015, the FLRA used the FEVS to develop and implement a data driven, forward-looking 

human capital management strategy that reflects a commitment to the People and Culture pillar 

of the President’s Management Agenda (PMA). Focusing on key drivers of employee 

engagement, the FLRA has developed strategies for employees to build and cultivate key skills 

that lead to greater individual and organizational performance and job satisfaction. In this 

connection, in FY 2015, the FLRA continued to invest in its employees through classroom 

training, rotational details, cross-component learning, challenging assignments, and 

leadership-development trainings and opportunities to enhance and broaden employees’ skills. 

Employees at all levels – both professional and administrative-support staff – delivered positive 

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

implementation of the FLRA’s eFiling System; the FLRA website refresh; the streamlining of 

internal case processing procedures; and the development and regular updating of Authority and 

OGC training materials, guides, and manuals – many of which are web-based – to educate the 

FLRA’s customers about the Statute, applicable legal standards and FLRA precedent, and the 

agency’s case-processing procedures.

Again in FY 2015, internal developmental details have accomplished two strategic objectives: 

(1) development of future leaders to facilitate succession planning; and (2) cross-training to 

allow for the reassignment of employees to positions that are more closely matched to their 

career interests – and to the agency’s needs. Position descriptions have continued to be updated 

and now allow for greater growth and advancement opportunities within the agency, and 
13

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

FY 2015, The agency also renewed its agreement with a local university to offer discounted 

tuition to FLRA employees for self-directed study.

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

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

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

FY 2015, the FLRA continued a training initiative designed to assist senior, high-potential 

employees identify and strengthen critical leadership skills in preparation for eventually 

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

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

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

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

its attorneys – nearly 20 percent of whom are new to the FLRA in FY 2014 and FY 2015 – that 

built upon their existing legal, technical, and ADR skills to improve and maximize performance. 

These training initiatives crossed components, bringing together future agency leaders from all 

offices to enhance their skills and encourage ongoing collaboration among peers. 

In FY 2015, the FLRA has continued to engage its workforce around improving its work 

processes, resulting in the FLRA continuing to climb nearly 5 percent in its “Innovation” 

rankings. The innovation category measures employee perceptions of efforts to improve the way 

work is done, including their own personal motivation to promote change, and the support and 

rewards that they receive for promoting new ideas. The FLRA’s commitment to rewarding 

creativity and provision of forums for employees to share and promote learning and coordination 

between components and offices have clearly demonstrated that learning more about the work 

going on across the agency, sparks creativity and collaboration. These efforts have produced real 

results. 

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 both FY 2014 and FY 2015 by increasing 

strategic and targeted recruitment and posting job opportunities with career-planning and 

placement services, local colleges and universities, and professional affinity-group organizations. 

Consistent with the REDI Roadmap, the FLRA is using data to help identify and eliminate 

barriers to recruiting and hiring the diverse talent that it needs. The FLRA also continued to 

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

initiatives throughout the agency. Serving as one of three Small-Agency Representatives on the 

Diversity and Inclusion in Government Council, the FLRA is participating in government-wide 

discussions concerning the implementation of President Obama’s Executive Order 13,583, 

Establishing a Coordinated Government-Wide Initiative to Promote Diversity and Inclusion in 

the Federal Workforce, to develop a path forward for federal agencies to create and foster a 

workforce that includes and engages federal employees and reflects all segments of society. 

Further, as noted above, based on employee feedback provided through the 2015 FEVS, the 

FLRA again received a top ranking in terms of “New IQ Performance,” which measures the 

results of 20 separate survey questions related to inclusive environments. The FLRA showed 
14

increases in 17 of those 20 questions. In particular, 83 percent of FLRA respondents – up from 

81 percent in 2014 – reported that supervisors work well with employees of different 

backgrounds. And 81 percent of respondents – an 8 percent increase from 2014 – 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 – 20 

percent higher for each.

PERFORMANCE SUMMARY

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

resolution and prevention of labor disputes in a manner that gives full effect to the 

collective-bargaining rights of employees, unions, and agencies. 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 

American public, consistent with President Obama’s Management Agenda to deliver a more 

nimble, more innovative, and more accountable federal government.

Mission – Case Processing & ADR

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

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

adjudication and dispute-resolution services. But the FLRA has had to overcome significant 

obstacles in meeting its mission requirements. In addition to increased case filings in certain 

components of the agency, the agency experienced a wave of key employee retirements and 

departures starting in FY 2013 and continuing into FY 2015. This left well over 10 percent of 

the FLRA’s already small workforce vacant to start FY 2014, and the agency has devoted 

significant effort to rebuilding its workforce throughout FY 2014 and FY 2015. 

Authority (including OALJ, CADRO)

In FY 2014, the Authority faced a backlog of cases that accrued when the Authority lacked a 

quorum of Members necessary to issue decisions for more than a 10-month period. And while 

the Authority devoted much of FY 2014 to issuing its oldest cases and eliminating that backlog, 

some of those overage cases remained, and a large number of newer cases went overage in the 

process – resulting in the Authority beginning FY 2015 with 63 percent of its cases already being 

overage. In addition, during FY 2015, the Authority experienced a 22 percent increase in case 

filings over FY 2014. There were also several key retirements and departures, and a budget 

lapse that precluded backfilling those vacancies for 90 days or more. All together, these factors 

have posed a challenge for the Authority in terms of meeting its performance goals in FY 2015. 

Despite these challenges, the Authority is poised to begin FY 2016 in a significantly better 

position than when it began FY 2015. As the result of a case-issuance strategy (an action plan) 

that the Authority adopted in early FY 2015, as well as the use of temporary assistance from 

other offices, the Authority eliminated all of its remaining overage-case backlog in FY 2015. 

And, compared with the 133 cases that the Authority closed on the merits in FY 2014, the 
15

Authority closed 165 cases on the merits in FY 2015 – a nearly 25 percent increase. As a result 

of these efforts, the Authority began FY 2016 well-positioned to meet its performance goals for 

timely, quality case adjudication. 

Moreover, the Authority continued in FY 2015 to yield performance dividends from ongoing 

arbitration and negotiability case-processing initiatives. As a result of a comprehensive review 

of arbitration case processing and implementation of associated regulatory changes several years 

ago – along with the development and periodic updating of a Guide to Arbitration under the 

Statute – the Authority continues to experience reduced numbers of procedural deficiencies in 

the parties’ filings, which leads to reduced overall case-processing times. Additionally, the 

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

Training program, which it presented to its parties several times throughout the year. Further, as 

a result of its review of negotiability law and practice in recent years ago, the Authority 

developed a Guide to Negotiability under the Statute, and the accompanying Comprehensive 

Negotiability Training program, which it continued to review, revise, and deliver to its customers 

on an ongoing, consistent basis. The currency of these materials and the provision of up-to-date, 

relevant training have yielded real performance-improvement outcomes. The parties are better 

educated about the Authority’s law and case-processing requirements, which has resulted in 

fewer procedural deficiency orders and procedural dismissals. For example, there has been an 

over 37 percent reduction in procedural dismissals in arbitration cases from FY 2012 to FY 2015. 

In addition, the Authority is receiving higher-quality, better-drafted briefs. That, in turn, enables 

the Authority to more efficiently and expeditiously process those cases. 

The OALJ resolved cases in FY 2015 at a dramatic pace, issuing nearly 80 decisions and more 

than doubling the substantial improvement in case processing delivered in FY 2014 – a 160% 

productivity increase. In response to a backlog of cases awaiting decision, the agency 

reallocated resources to the OALJ – through use of details, a temporary-attorney hire, contract 

paralegal support, and two re-employed-annuitant ALJs – to assist in resolving cases more 

expeditiously. With nearly 1,000 new cases on the 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 – with ADR services administered 

by the CADRO. In FY 2015, in over 87 percent of cases in which the parties participated in the 

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 cost-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 issued by the OGC alleging ULPs remains high, 

exceeding 200 in FY 2015. For those cases that cannot be settled without a hearing, the ALJs 

continue to encourage the parties to request a bench decision, where appropriate under the facts 

of the case, to reduce the need for final written decisions. 

In addition to its highly successful work with the OALJ Settlement Judge Program, the CADRO 

continues to have great success in helping parties before the Authority to resolve significant 

disputes in pending cases, most significantly in negotiability cases, but also increasingly 

expanding to include arbitration cases. In fact, in FY 2015, 100 percent of CADRO negotiability 

cases resulted in full resolution of the underlying dispute and closure of the pending case. And 
16

100 percent of CADRO arbitration cases resulted in at least partial resolution of the underlying 

dispute. 

Noteworthy CADRO cases in FY 2015 include a case in which, following more than two years 

of bargaining over subjects that included wages, the parties obtained an interest-arbitration award 

intended to resolve all remaining disputes in their national term contract. Both parties filed 

arbitration exceptions with the Authority to more than a dozen contract articles ruled on by the 

arbitrator. This would most likely have resulted in additional years of resource-intensive 

litigation and a less-than-satisfying result. Instead, the parties engaged in several days of 

CADRO mediation that resolved all of the exceptions in the case pending before the Authority, 

and that even assisted the parties in reaching voluntary agreement on contract articles that the 

arbitrator had failed to resolve. In another case involving a term contract, an agency and a union 

bargained for years, followed by agency-head disapproval of the resulting contract. The parties 

returned to the bargaining table, again reached agreement, and again submitted the agreement for 

agency-head review. This time, the agency head disapproved 44 contract provisions, after which 

the union filed a negotiability petition with the Authority. The parties agreed to use CADRO’s 

mediation services, through which they were able to completely resolve all 44 provisions in only 

two days of mediation, resulting in withdrawal of the case before the Authority. Given the large 

volume of issues in dispute, formal adjudication by the Authority would have consumed an 

enormous amount of staff resources, and final resolution of the dispute would have taken far 

longer to achieve.

CADRO was also successful in resolving a dispute in which $80M of an agency’s FY 2015 

budget was tied to implementing a single career track (SCT) for a nationwide group of 

employees. Due to implementation delays, the agency risked losing the implementation 

funds. The parties jointly requested CADRO assistance to engage in pre-decisional involvement 

(PDI) pursuant to Executive Order 13,522, Creating Labor-Management Forums to Improve 

Delivery of Government Services. CADRO facilitated two very long days of outreach with 

15 party representatives from around the nation. The parties met their implementation deadline 

and thereby achieved critical mission-related results that also improved the quality of employee 

work life and fostered a better labor-management relationship between the parties.

The parties universally reported that these ADR services improve their ability to resolve 

important problems, make critical decisions, and develop more successful problem-solving 

relationships. And CADRO’s efforts serve the dual purpose of preventing unnecessary and 

costly litigation before the FLRA and making case processing more effective and efficient. 

Moreover, the CADRO also delivers “prevention” services, teaching parties techniques for 

effectively resolving labor-management issues on their own, without the need for 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. 
17

OGC

The OGC continued delivering strong results in FY 2015. The OGC exceeded its strategic 

performance goals for the timely resolution of both ULP and representation cases, and it 

continued closing cases at increased rates. The OGC closed over 4,600 ULP cases and 220

representation cases. In addition, the OGC conducted over 70 secret-ballot representation 

elections. 

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

the OGC has expanded its use of voluntary ADR services to resolve cases. This is particularly 

important as the OGC has the largest case intake and inventory among all of the FLRA 

components (handling over three quarters of the FLRA’s total case intake), and it is the FLRA 

component with which the parties have the most direct contact. The beneficial effects of 

voluntary ULP settlements and representation agreements are obvious, and the OGC pursues 

both aggressively.

In FY 2015, the OGC resolved over 1,000 ULP cases by voluntary adjustment during the 

investigative process. In addition, the OGC resolved over 96 percent of the ULP cases in which 

merit was found and 95 percent of the representation cases in which the parties agreed to use the 

OGC’s ADR services. These successful, voluntary ADR efforts resulted in significant savings of 

governmental staff and budgetary resources. 

For example, in early 2015 an agency and a union requested that the OGC assist them in 

clarifying their existing bargaining-unit certification in light of significant organizational and 

personnel changes. The scope of the project was nationwide and involved large numbers of 

employees. Realizing that resolving these issues in the traditional formal investigation and 

hearing manner would be time consuming and expensive, the parties asked that the OGC to 

provide ADR services. After working closely with the OGC over several days, the parties 

reached voluntary stipulations clarifying the scope of the unit and the status of many categories 

of employees. In another example, an agency and an exclusive representative had several ULP 

cases involving disputes over information that the union had requested. This was a recurring 

issue for the parties, and it was having a negative effect on their relationship. At the OGC’s 

suggestion, the parties agreed to use the OGC’s ADR services and jointly develop a new strategy 

for handling information requests. After working closely with the OGC and jointly attending an 

educational workshop presented by the OGC on the Statute, the parties developed a new protocol

that provides a streamlined process for requesting and providing necessary information. This

new approach has resolved an issue that was causing friction between the parties, and it has 

prevented them from filing additional ULP cases. By using the OGC’s ADR services, the parties 

avoided the time-consuming and expensive formal-hearing process and gained valuable 

experience and expertise to resolve future issues in an effective and efficient manner.

FSIP

With respect to the FSIP, a significant number of requests for assistance in FY 2015 involved 

impasses over successor collective-bargaining agreements. Such impasses typically are complex 

in nature, involving many contract articles and issues over which the parties have been 
18

negotiating for considerable lengths of time. Among others, the FSIP resolved voluntarily –

during mediation-arbitration proceedings or informal conferences conducted by FSIP Members –

successor-agreement impasses between the Internal Revenue Service and the National Treasury 

Employees Union, the Department of Veterans Affairs and the National Association of 

Government Employees, and the General Services Administration and the National Federation of 

Federal Employees (NFFE). This is 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 fact, in cases where the FSIP used 

mediation-arbitration or informal conferences to resolve federal-sector impasses, it obtained 

complete, voluntary settlements over 78 percent of the time, surpassing the 60-percent settlement 

rate that it achieved in FY 2014. As a result of this high percentage of voluntary settlements, in 

FY 2015, FSIP Members issued only 6 Arbitration Opinions and Decisions imposing contract 

terms on the parties. 

In FY 2015, the FSIP also continued to prioritize case processing to minimize disruption to 

government operations and costs to taxpayers. One example of this prioritization was an 

impasse that arose as a result of Administration initiatives requiring agencies to ensure that their 

total physical space (i.e., square footage) remains at their FY 2012 baseline levels and to dispose 

of excess real properties. In this regard, the National Science Foundation decided to relocate its 

headquarters from Arlington, Virginia to Alexandria, Virginia, affecting approximately 935 

bargaining-unit employees represented by the American Federation of Government Employees 

(AFGE). When the parties could not reach a voluntary settlement of their impasse, the FSIP 

Member designated to resolve the dispute through mediation-arbitration issued a timely 

Arbitrator Opinion and Decision permitting the relocation to proceed in accordance with the 

agency’s timetable. Another example of prioritization of case processing involves disputes over 

the termination of compressed work schedules (CWS) under the Federal Employees Flexible and 

Compressed Work Schedules Act. In such cases, the FSIP has 60 days to determine whether an 

agency has met its burden of proof by demonstrating through the totality of the evidence that the 

CWS is causing an adverse agency impact. In one such impasse involving the Federal Bureau of 

Prisons and AFGE, the FSIP scheduled the parties to appear before the FSIP’s Chairman for a 

mediation-arbitration proceeding on a timetable allowing for timely issuance of a decision in the 

event that the parties cannot reach a voluntary settlement. 

Mission Accomplishment – Providing Training across the Federal Government

Further, in FY 2015, the FLRA continued to provide web-based and in-person training 

nationwide to members of the federal-sector labor-management community – union 

representatives, agency representatives, and neutrals – in all aspects of its case law and 

processes. In FY 2015, the FLRA, as a whole, provided over 300 training, outreach, and 

facilitation sessions to over 8,000 participants. Over the last 5 years, the FLRA has provided 

nearly 1,400 such sessions to over 40,000 participants worldwide. 

The Authority, the OGC, and the FSIP provided training at several nationwide, annual 

conferences, including the Society of Federal Labor and Employee Relations Professionals 

symposium and the Federal Dispute Resolution conference. These sessions included 

presentations of newly prepared materials of current relevance, as well as updated materials for 
19

more standard sessions. In addition, the Authority sponsored its own training programs, 

including several, full-day sessions of Comprehensive Arbitration Training and Comprehensive 

Negotiability 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 to avoid costly litigation. The overwhelmingly 

positive feedback received from participants in these sessions indicates that these trainings 

produced the desired results and will further the above goals in future cases.

The OGC continued to focus its training efforts on where labor-relations issues arise. By 

bringing its training services directly to the parties, the OGC educated 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. 

Additionally in FY 2015, the OGC, in support of OMB’s ongoing “Reduce the Footprint” 

initiative, led cross-component (OGC, Authority, FSIP) and inter-agency (FMCS and GSA) 

development of a specialized, two-day workshop on office moves, space allocations, and the 

labor-relations and collective-bargaining implications. The registrations for the workshop 

quickly reached capacity, and there was a large waiting list. The workshop focused on resolving 

labor-relations issues associated with the “Reduce the Footprint” policy in a cooperative and 

collaborative manner and featured cross-component and inter-agency presentations by the 

FMCS, the FSIP, the Authority, the GSA, and the OGC. Because the program was so successful 

and demand is so great, the OGC plans to expand the program in FY 2016. Moreover, this 

training program supports Executive Order 13,522, Creating Labor-Management Forums to 

Improve Delivery of Government Services, and the work of the National Council on Federal 

Labor-Management Relations. 

The OGC’s training initiatives are 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. In FY 2015, the OGC issued a 

comprehensive Guidance on Meetings, providing the parties with clear explanations of their 

rights and responsibilities in this important area so that they can operate in a manner that 

promotes cooperative labor-management relations and prevent disputes.

Employee Engagement

Consistent with the PMA Cross-Agency Priority (CAP) Goal on People and Culture, the FLRA 

is a leader in creating a culture of excellence and engagement to enable higher performance. 

As noted above, in FY 2015, the FLRA continued its overall success and improvement as 

measured by the FEVS, capturing the rank of #2 on three important indexes – Employee 

Engagement, Global Satisfaction, and New IQ (which relates to the inclusivity of the work 

environment). It also achieved an all-time high employee response rate of 84 percent –
20

significantly higher than the government-wide average of 50 percent. The FLRA’s 2015 positive 

ratings increased from 2014 in 64 items, and it had 68 identified strengths and no identified 

challenges. In addition, the FLRA’s Human Capital Assessment and Accountability Framework 

index scores again increased in every category for the third consecutive year – by as much as 8

percent over 2014. Specifically, the agency scored 86 percent in “Leadership and Knowledge 

Management,” 78 percent in “Results-Oriented Performance Culture,” 85 percent in “Talent 

Management,” and 82 percent in “Job Satisfaction” – exceeding the government-wide average in 

by 20 percent on average. These responses reflect the FLRA’s progress toward meeting 

government-wide human-capital objectives and demonstrating the relationship to improved 

organizational performance. And, consistent with an agency-wide focus on targeting areas of 

weakness 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 2015 on strengthening supervisory skills and 

improving the supervisor-employee relationship, especially as it relates to giving and receiving 

feedback on performance. The agency also sought to improve scores relating to the 

reasonableness of workloads. In this connection, the agency gathered information to identify the 

source of the issue – through use of pulse surveys, analysis of caseload data, and constant 

communication. And then it used that information to make data-driven decisions about where to 

allocate additional, permanent, temporary, or detail staffing. As a result of these efforts, in FY 

2015, the agency increased its positive responses to that question by over 23% increase from FY 

2014

In addition, in 2014, the FLRA captured the rank of #5 in the Partnership for Public Service’s 

2014 Best Places to Work in the Federal Government rankings – up from #8 in 2013 with a 

remarkable 10-point increase in its index score. With an overall employee-satisfaction score of 

79.2 percent, the FLRA exceeded a key objective of the People and Culture CAP Goal of the

PMA to improve employee engagement government-wide to 67 percent by 2016. This 

extraordinary accomplishment reflects a dramatic and unprecedented improvement of over 300 

percent since 2009 – the year in which the FLRA placed last in the survey. And it reflects the 

ongoing and sustained commitment of agency leadership at all levels to improving employee 

satisfaction and morale – as measured by OPM’s FEVS – on an ongoing basis by 

comprehensively analyzing FEVS data and using additional internal surveys to target selected 

areas for improvement, develop and implement solutions, and review progress. This 

commitment, which began in 2009, resulted first in the FLRA being named the 2010 Most 

Improved Small Agency. Building on that success in 2011, the agency once again placed among 

the top of the most improved small agencies, and in 2012 and 2013, it captured the #7 and #8 

small-agency rankings, respectively, before being named #5 in 2014. Most notable for 2014 

were the FLRA’s rankings for certain Best in Class categories: #1 in “Effective Leadership -

Leaders, Pay,” and “Strategic Management”; #2 in “Overall Effective Leadership and Training & 

Development”; and #3 in “Effective Leadership – Supervisors”; “Teamwork”; and 

“Performance-Based Rewards & Advancement.”

 
21

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

satisfaction over the last six 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. 

Concurrent with the agency’s significant increase in employee morale and satisfaction since 

2009, there has been a marked improvement in the FLRA’s mission performance and the 

delivery of services to its customers. 

 

And although the FLRA already has a highly engaged workforce, the agency continued to look 

for ways to improve upon its successes in this area in FY 2015. In this connection, a small, 

diverse, cross-component group of managers participated in an Employee Engagement Sprint 

Initiative. The team is in the process of developing an agency-wide action plan – in conjunction 

with the 2015-2018 Strategic Plan – that will serve as the framework for sustaining, embedding, 

and continuing to improve upon the FLRA’s impressive employee-engagement scores and the

associated mission results. 

Performance Outcome 

Measures

FY 2015

Target

FY 2015

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.

68% 72% Exceeded

0

20

40

60

80

100

2005 2007 2009 2010 2011 2012 2013 2014

Best Places to Work Score
22

Performance Outcome 

Measures

FY 2015

Target

FY 2015

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.

95%/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% 77% Not Met

D. Measure 1.4: The 

percentage of ULP cases 

decided within 180 days of 

assignment to an Authority 

Member.

65% 57% 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% 72% 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
23

Performance Outcome 

Measures

FY 2015

Target

FY 2015

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.

65% 40% 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.

65% 50% 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% 100% 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% 100% Exceeded

Measure 5.3: The 

percentage of 

bargaining-impasse cases 

resolved through a final 

action closed within 200 

days of the date filed.

70% 100% Exceeded

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

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

Measure 6.1: The 

percentage of ULP cases in 

the OGC in which an offer 

of ADR services is 

accepted by the parties that 

are partially or totally 

resolved.

95% 96% Exceeded
24

Performance Outcome 

Measures

FY 2015

Target

FY 2015

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% 87% 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% 96% 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.

80% 43% Not Met

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% 39% Exceeded

Measure 6.7: The number 

of training, outreach, and 

facilitation activities 

conducted.

200 306 Exceeded

Measure 6.8: The number 

of participants involved in 

training, outreach, and 

facilitation activities.

5,000 8,294 Exceeded

Strategic Goal 3: Advance performance through organizational and management excellence.
25

Performance Outcome 

Measures

FY 2015

Target

FY 2015

Actual Result

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.

35% 17% Not 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.

Implement a fully 

automated and 

integrated electronic 

system for personnel 

actions, as well as a 

learning-management 

system. Develop a 

more robust 

onboarding process 

through increased use 

of technology and 

implementation of an 

Employee Onboarding 

Handbook. Update 

significant humanresources policies and 

procedures. Build 

internal capacity for 

handling the major 

human-resources 

functional areas.

Improve office 

customer service by 

improving the quality 

of advice provided to 

managers and 

employees. Work 

with managers to 

educate them about 

and increase diversity 

and inclusion when 

seeking new agency 

Implemented a fully 

automated and 

integrated electronic 

system for personnel 

actions. Developed a 

more robust 

onboarding process 

through increased use 

of technology and 

piloted 

implementation of an 

Employee Onboarding 

Handbook. Updated 

certain humanresources policies and 

procedures. 

Continued to build 

internal capacity for 

handling the major 

human-resources 

functional areas. 

Position descriptions 

continued to be 

updated and now 

allow for greater 

growth and 

advancement 

opportunities within 

the agency, and 

employees readily 

volunteered for 

collateral-duty 

Met
26

Performance Outcome 

Measures

FY 2015

Target

FY 2015

Actual Result

talent. assignments, new 

initiatives, and 

projects. The agency 

also renewed its 

agreement with a local 

university to offer 

discounted tuition to 

FLRA employees for 

self-directed study. 

Improved office 

customer service by 

improving the quality 

of advice provided to 

managers and 

employees. Worked

with managers to 

educate them about 

and increase diversity 

and inclusion when 

seeking new agency 

talent. The agency 

achieved greater 

diversity in its 

workforce in FY 2015 

by increasing strategic 

and targeted 

recruitment and 

posting job 

opportunities with 

career-planning and 

placement services, 

local colleges and 

universities, and 

professional affinitygroup organizations. 

With respect to 

succession planning, 

the FLRA continued 

to offer crosscomponent 

developmental details 

and its training 

initiative designed to 
27

Performance Outcome 

Measures

FY 2015

Target

FY 2015

Actual Result

assist higher-graded 

employees identify 

and strengthen critical 

leadership skills in 

preparation for 

eventually 

transitioning to formal 

leadership positions. 

To strengthen and 

support the FLRA’s 

new cadre of first-time 

managers and 

supervisors, the 

agency identified a 

series of trainings 

geared towards 

developing strategic 

thinking and other 

critical skills in 

preparation for 

executive leadership 

at the FLRA. These 

training initiatives 

crossed components, 

bringing together 

future agency leaders 

from all offices to 

enhance their skills 

and encourage 

collaboration among 

peers. 
28

FINANCIAL ANALYSIS

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

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

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

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

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

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

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

government, a sovereign entity.

Balance Sheet

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

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

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

FY 2014 and FY 2015. The FLRA does not maintain any cash in commercial bank accounts or 

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

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

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

useful life of the asset. 

Total assets decreased from $4.3 million at the end of FY 2014 to $3.9 million at the end of 

FY 2015. The agency did not make any new fixed asset purchases in FY 2015, while the net 

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

Assets as of September 30, 2015 2014

Fund balance with the Treasury $3,479,882 $3,626,652

General property and equipment 448,644 588,076

Prepaid expenses 0 46,494

Accounts receivable 18,964 3,634

Total $3,947,490 $4,264,856

Totals may not add due to rounding.

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

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

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

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

accounted for 85 percent of total liabilities at the end of FY 2015. The remaining 15 percent 

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

goods and services. Agency liabilities totaled $3.5 million in FY 2014, and $3.8 million in 

FY 2015.
29

Liabilities as of September 30, 2015 2014

Unfunded leave $1,374,235 $1,511,241

FECA liability 1,288,603 1,342,635

Accrued payroll and benefits 588,753 510,906

Accounts payable 572,313 171,800

Total $3,823,904 $3,536,582

Totals may not add due to rounding.

The FLRA’s total net position at the end of FY 2015 was $124 thousand, a $605 thousand 

decrease from the previous year.

Statement of Net Cost

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

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

in FY 2015 was $27.1 million, a $1.6 million increase over the agency’s FY 2014 cost of 

operations. In FY 2015, 52 percent of the agency’s direct resources were dedicated to the 

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

44 percent were dedicated to the OGC; and the remaining 4 percent were devoted to the FSIP.

FY 2015 Financial Obligations by Budget Object Class

Compensation & benefits (78%)

Rent & utilities (10%)

Other contractual services (9%)

Communications (1%)

Supplies & equipment (1%)

Travel & transportation (1%)
30

Statement of Changes in Net Position

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

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

operations represent the net results of operations since inception, the cumulative amount of priorperiod adjustments, the remaining book value of capitalized assets, and future funding 

requirements. Cumulative results remained relatively constant from FY 2014 to FY 2015, 

totaling $2.2 million.

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

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

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

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

decrease of $670 thousand in total, unexpended agency appropriations in FY 2015.

Statement on Budgetary Resources

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

during FY 2014 and FY 2015 to carry out the activities of the agency, as well as the status of 

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

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

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

provided by agency employees on the Statute, the FLRA mission, Executive Order 13,522, etc.

The FLRA had $27.3 million in total budgetary resources available to it in FY 2015. The agency 

incurred obligations of $25.6 million in FY 2015, while recording outlays of $25.4 million. 

Total budgetary resources increased by $1 million in FY 2015, due primarily from recovery of 

unpaid, prior-year obligations. 
31

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, 2015, 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 16, 2015
32

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 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 to an ALJ’s decision, then the Authority adopts that decision without precedential 

significance. 

OGC FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 1,811 1,453 1,488 1,570 1,415

Charges filed 4,094 4,375 4,659 4,696 4,418

Total caseload 5,905 5,828 6,147 6,266 5,833

Charges withdrawn/settled 3,425 3,377 3646 3789 3,662

Charges dismissed 812 732 673 809 800

Complaints issued 215 231 258 253 203 

Total cases closed 4,452 4,340 4,577 4,851 4,665

Cases pending, end of year 1,453 1,488 1,570 1,415 1,168

OALJ FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 54 72 115 120 105

Cases received from the OGC 234 240 271 260 222

Total caseload 288 312 386 380 327

Settlements before decision 191 177 223 245 187

Cases closed by decision 25 20 43 30 78

Total cases closed 216 197 266 275 265

Cases pending, end of year 72 115 120 105 62
33

Authority FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 14 6 2 12 13

Exceptions filed 17 20 27 27 62

Total caseload 31 26 29 39 75

Cases closed procedurally 13 16 16 18 37

Cases closed based on merits 12 8 1 8 14

Total cases closed 25 24 17 26 51

Cases pending, end of year 6 2 12 13 24

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

54% 61% 68% 67% 68% 72%

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

97%/100% 99%/100% 100/100% 98%/100% 95%/100% 98%/100%

Data Source: CMS

Target: Exceeded/Met. 

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

95% 90% 86% 91% 90% 77%

Data Source: CMS

Target: Not Met. In FY 2015, the OALJ developed an increased backlog of “overage” cases 

– defined by the OALJ as cases in its inventory that had already exceeded the 180-day 

performance goal. The OALJ successfully focused its efforts in FY 2015 on eliminating that 

backlog, becoming nearly current by the end of FY 2015. Necessarily, the OALJ issued a 

greater percentage of decisions in FY 2015 that exceeded the 180-day performance goal. 
34

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

Authority Member.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

31% 75% 100% 50% 65% 57%

Data Source: CMS

Target: Not Met. For more than 10 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 its backlog of “overage” 

cases – defined by the Authority as those cases in its inventory that had already exceeded the 

180-day performance goal. This backlog continued into FY 2015 and led to the development 

of a case-issuance strategy – which the Authority successfully completed – to eliminate the 

backlog by the end of FY 2015. Necessarily, the Authority issued a greater percentage of 

decisions in FY 2015 that exceeded the 180-day performance goal. 

GOAL 2: PROVIDE TIMELY REVIEW AND DISPOSITION OF 

REPRESENTATION CASES.

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

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

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

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

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

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

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

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

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

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

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

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

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

unless an application for review is filed with the Authority.

OGC FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 102 82 89 89 65

Petitions filed 267 290 253 235 225

Total caseload 369 372 342 324 290

Petitions withdrawn 126 115 106 118 95

Cases closed based on merits 161 168 147 141 125 

Total cases closed 287 283 253 259 220

Cases pending, end of year 82 89 89 65 70
35

Authority FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 6 6 0 9 7

Applications for review 12 6 11 13 16

Total caseload 18 12 11 22 23

Cases closed procedurally 0 0 1 2 2

Cases closed based on merits 12 12 1 13 19

Total cases closed 12 12 2 15 21

Cases pending, end of year 6 0 9 7 2

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

60% 62% 60% 66% 60% 72%

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

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 to (or an appeal of) 

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.
36

Authority FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 173 66 40 123 90

Exceptions filed 110 107 124 89 99

Total caseload 283 173 164 212 189

Cases closed procedurally 22 24 19 16 15

Cases closed based on merits 195 109 22 106 124

Total cases closed 217 133 41 122 139

Cases pending, end of year 66 40 123 90 50

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

an Authority Member.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

33% 58% 91% 34% 65% 40%

Data Source: CMS

Target: Not Met. For more than 10 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 its backlog of “overage” 

cases – defined by the Authority as those cases in its inventory that had already exceeded the 

180-day performance goal. This backlog continued into FY 2015 and led to the development 

of a case-issuance strategy – which the Authority successfully completed – to eliminate the 

backlog by the end of FY 2015. Necessarily, the Authority issued a greater percentage of 

decisions in FY 2015 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 both of these situations, a union may 

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

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

may petition the Authority to resolve the negotiability dispute. 
37

Authority FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 22 15 8 9 17

Petitions filed 39 45 30 43 54

Total caseload 61 60 38 52 71

Cases closed procedurally 33 38 27 29 40

Cases closed based on merits 13 14 2 6 8

Total cases closed 46 52 29 35 48

Cases pending, end of year 15 8 9 17 23

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

an Authority Member.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

29% 50% 100% 17% 65% 50%

Data Source: CMS

Target: Not Met. For more than 10 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 its backlog of “overage” 

cases – defined by the Authority as those cases in its inventory that had already exceeded the 

180-day performance goal. This backlog continued into FY 2015 and led to the development 

of a case-issuance strategy – which the Authority successfully completed – to eliminate the 

backlog by the end of FY 2015. Necessarily, the Authority issued a greater percentage of 

decisions in FY 2015 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 FSIP approves the procedure; seek the 

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

negotiation impasse, but only after the previous options have failed.
38

FSIP FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Cases pending, start of year 36 53 38 40 28

Impasses filed 152 176 194 134 139

Total caseload 188 229 232 174 167

Cases closed 135 191 192 146 134

Cases pending, end of year 53 38 40 28 33

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

closed within 140 days of the date filed.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

64% 92% 95% 89% 80% 100%

Data Source: CMS

Target: Exceeded. 

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

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

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

79% 86% 97% 68% 70% 100%

Data Source: CMS

Target: Exceeded.

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

closed within 200 days of the date filed.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

65% 77% 87% 61% 70% 100%

Data Source: CMS

Target: Exceeded. 
39

GOAL 6: USE COLLABORATION TECHNIQUES AND 

ALTERNATIVE-DISPUTE-RESOLUTION SERVICES TO MINIMIZE 

AND/OR RESOLVE LABOR-MANAGEMENT DISPUTES.

The FLRA has integrated ADR and consensus decision-making into virtually all of its case 

processes, and it has significantly expanded its training, outreach, and facilitation activities since 

FY 2011. ADR is an informal process that allows parties to discuss and develop their interests in 

order to resolve the underlying issues and problems in their relationships. This includes interestbased conflict resolution and intervention services in pending ULP cases, representation cases, 

arbitration cases, negotiability appeals, and bargaining-impasse disputes. The agency also 

provides facilitation and training to help labor and management develop collaborative 

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

modules, bringing educational tools and resources directly to agency customers at their desks to 

further assist them in resolving labor-management disputes.

Measure 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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

87% 97% 98% 98% 95% 96%

Data Source: CMS

Target: Exceeded. 

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

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

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

88% 80% 78% 96% 80% 87%

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

93% 91% 100% 100% 95% 96%

Data Source: CMS

Target: Exceeded.
40

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

100% N/A 100% 80% 80% 43%

Data Source: CMS

Target: Not Met. 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. For FY 2015, the 

80% target assumed a universe of cases in which at least one party requested ADR. In FY 

2015, the Authority more aggressively targeted arbitration cases in which no party had 

requested ADR – cases in which it is generally much harder to achieve a voluntary resolution 

– and, in another case, a party that initially accepted ADR withdrew before ADR efforts even 

began. These factors negatively affected the ability to reach this goal. While in some cases 

the parties did not “resolve” issues pending before the Authority, in nearly all cases, ADR

resulted in parties moving closer together on issues and improving their relationships. 

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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

87% 100% 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 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

29% 32% 28% 27% 30% 39%

Data Source: CMS

Target: Exceeded.
41

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

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

332 221 302 225 200 306

Data Source: CMS

Target: Exceeded.

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

activities.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual Target Actual

11,975 8,933 5,976 5,114 5,000 8,294

Data Source: CMS

Target: Exceeded. 

GOAL 7: MODERNIZE AGENCY INFORMATION-TECHNOLOGY 

BUSINESS SYSTEMS TO SUPPORT AND ENHANCE PROGRAM 

ACHIEVEMENT.

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

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

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

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

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

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

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

documents. In recognition of this, in FY 2015, the agency developed and began implementing a 

plan to accomplish the transition to fully electronic case files in 4 agile phases over the next 4 

years. 
42

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

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 Actual 12%

FY 2015

Target 35%

Actual 17%

Data Source: CMS

Target: Not Met. Although the FLRA did not meet its FY 2015 performance target as an 

agency, with the rollout of eFiling for the OALJ in early FY 2015, 100 percent of the cases 

filed with the OALJ were filed electronically.

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

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 Actual Migrated the CADRO to an end-to-end electronic case file.

FY 2015

Target Complete full integration of the CMS and eFiling systems, enabling 

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

Actual

Made eFiling available for OALJ cases, resulting in eFiling being 

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

completed full integration of the CMS and eFiling systems, enabling 

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

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 six-and-a-half years, the FLRA has demonstrated significant and marked 

improvement in its performance and service delivery, and it has consistently ranked among the 

top small agencies in both OPM’s FEVS and the Best Places to Work in the Federal Government 

rankings. 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.
43

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

achieve results.

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 OPM approval and agency implementation. Through an employee 

workgroup, designed and 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 employee-focused 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 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 
44

casework and administrative initiatives throughout the agency. 

Realigned functions within the agency’s Office of the Executive 

Director to allow for improved efficiencies and customer service to 

agency employees. Worked extensively with managers to hold 

employees accountable for performance and development. Updated 

Attorney Recruitment Policy in order to allow managers greater hiring 

flexibility of the agency’s mission-critical occupation and to 

streamline the recruitment process. In collaboration with the 

Partnership for Public Service’s Excellence in Government Fellows 

program, developed and piloted an Employee Onboarding Handbook 

to improve the onboarding process and increase employee 

engagement.

FY 2015

Target

Implement a fully automated and integrated electronic system for 

personnel actions, as well as a learning-management system. Develop 

a more robust onboarding process through increased use of 

technology and implementation of an Employee Onboarding 

Handbook. Update significant human-resources policies and 

procedures. Build internal capacity for handling the major humanresources functional areas. Improve office customer service by 

improving the quality of advice provided to managers and employees. 

Work with managers to educate them about and increase diversity and 

inclusion when seeking new agency talent.

Actual

Implemented a fully automated and integrated electronic system for 

personnel actions. Developed a more robust onboarding process 

through increased use of technology and piloted implementation of an 

Employee Onboarding Handbook. Updated certain human-resources 

policies and procedures. Continued to build internal capacity for 

handling the major human-resources functional areas. Position 

descriptions continued to be updated and now allow for greater 

growth and advancement opportunities within the agency, and 

employees readily volunteered for collateral-duty assignments, new 

initiatives, and projects. The agency also renewed its agreement with 

a local university to offer discounted tuition to FLRA employees for 

self-directed study. Improved office customer service by improving 

the quality of advice provided to managers and employees. Worked

with managers to educate them about and increase diversity and 

inclusion when seeking new agency talent. The agency achieved 

greater diversity in its workforce in FY 2015 by increasing strategic 

and targeted recruitment and posting job opportunities with careerplanning and placement services, local colleges and universities, and 

professional affinity-group organizations. With respect to succession 

planning, the FLRA continued to offer cross-component 

developmental details and its training initiative designed to assist 

higher-graded employees identify and strengthen critical leadership 

skills in preparation for eventually transitioning to formal leadership 

positions. To strengthen and support the FLRA’s new cadre of first-
45

time managers and supervisors, the agency identified a series of 

trainings geared towards developing strategic thinking and other 

critical skills in preparation for executive leadership at the FLRA. 

These training initiatives crossed components, bringing together 

future agency leaders from all offices to enhance their skills and 

encourage collaboration among peers. 

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.
46

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The FLRA’s FY 2015 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, 2015, 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 2016 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 16, 2015
47

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2015 and 2014

2015 2014

Assets:

Intragovernmental:

Fund balance with the Treasury (Note 2) $3,479,882 $3,626,652

Accounts receivable (Note 3) 16,903 0

Prepaid expenses 0 46,494

Total intragovernmental 3,496,785 3,673,146

Accounts receivable, net (Note 3) 2,061 3,634

Property, equipment and software, net (Note 4) 448,644 588,076

Total Assets $3,947,490 $4,264,856

Liabilities:

Intragovernmental:

Accounts payable $267,290 $18,265

Accrued payroll and benefits 118,387 0

FECA unfunded (Note 5) 219,897 216,609

Total intragovernmental 605,574 234,874

Accounts payable 305,023 153,535

Unfunded leave (Note 5) 1,374,235 1,511,241

FECA actuarial liability (Note 5) 1,068,706 1,126,026

Accrued payroll and benefits 470,366 510,906

Total Liabilities $3,823,904 $3,536,582

Net Position:

Unexpended appropriations – other funds $2,321,812 $2,991,329

Cumulative results of operations – other funds (2,198,226) (2,263,055)

Total Net Position $123,586 $728,274

Total Liabilities and Net Position $3,947,490 $4,264,856

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
48

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2015 and 2014

2015 2014

Gross Program Costs:

Authority:

Intragovernmental costs $6,104,434 $4,346,447

Public costs 7,952,340 10,412,911 

Total program costs 14,056,774 14,759,358

Less: Earned revenue (10,537) (2,851)

Net Program Costs $14,046,237 $14,756,507

Office of the General Counsel:

Intragovernmental costs $2,451,572 $0

Public costs 9,536,749 9,942,518

Total program costs 11,988,321 9,942,518

Less: Total earned revenue (16,477) (20,039)

Net Program Costs $11,971,844 $9,922,479

Federal Service Impasses Panel:

Intragovernmental costs $181,752 $0

Public costs 868,353 763,268

Total program costs 1,050,105 763,268

Less: Total earned revenue (756) 0

Net Program Costs $1,049,349 $763,268

Total gross program costs $27,095,200 $25,465,144

Less: Total earned revenue (27,770) (22,890)

Net Cost of Operations $27,067,430 $25,442,254

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
49

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2015 and 2014

2015 2014

Cumulative Results of Operations:

Beginning balance $(2,263,055) $(2,587,087)

Budgetary financing sources:

Appropriations used 25,917,906 24,365,987

Other financing sources (non-exchange):

Imputed financing 1,215,100 1,400,299

FOIA collections (747) 0

Total financing sources 27,132,259 25,766,286

Net cost of operations (27,067,430) (25,442,254)

Net change 64,829 324,032

Cumulative Results of Operations $(2,198,226) $(2,263,055)

Unexpended Appropriations:

Beginning balance $2,991,329 $2,071,393

Budgetary financing sources:

Appropriations received 25,548,000 25,500,000

Other adjustments (299,611) (214,077)

Appropriations used (25,917,906) (24,365,987)

Total budgetary financing sources (669,517) 919,936

Total Unexpended Appropriations $2,321,812 $2,991,329

Net Position $123,586 $728,274

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
50

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2015 and 2014

2015 2014

Budgetary Resources:

Unobligated balance, brought forward, October 1 $778,379 $903,324

Recoveries of prior year unpaid obligations 1,213,338 33,362

Other changes in unobligated balance (299,611) (214,077)

Unobligated balance from prior year budget authority, net 1,692,106 722,609

Appropriation 25,548,000 25,500,000

Spending authority from offsetting collections 31,199 43,086

Total budgetary resources $27,271,305 $26,265,695

Status of Budgetary Resources:

Obligations incurred (Note 9) $25,627,780 $25,487,316

Unobligated balance, end of year:

Apportioned 45,212 107,618

Unapportioned 1,598,313 670,761

Total obligated balance, end of year 1,643,525 778,379

Total budgetary resources $27,271,305 $26,265,695

Change in Obligated Balance:

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $2,850,934 $2,587,584

Obligations incurred 25,627,780 25,487,316

Outlays (gross) (25,425,919) (25,190,604)

Recoveries of prior year unpaid obligations (1,213,338) (33,362)

Unpaid obligations, end of year 1,839,457 2,850,934

Uncollected payments:

Uncollected payments, federal sources, brought forward, October 1 (2,661) (3,085)

Change in uncollected payments, federal sources (439) 424

Uncollected payments, federal sources, end of year (3,100) (2,661)

Memorandum (non-add) entries:

Obligated balance, start of year $2,848,273 $2,584,500

Obligated balance, end of year $1,836,357 $2,848,273

Budget Authority and Outlays, Net:

Budget authority, gross $25,579,199 $25,543,086

Actual offsetting collections (30,760) (43,510)

Change in uncollected payments, federal sources (439) 424

Budget authority, net (total) $25,548,000 $25,500,000

Outlays, gross $25,425,919 $25,190,604

Actual offsetting collections (30,760) (43,510)

Outlays, net (total) 25,395,159 25,147,094

Agency Outlays, Net $25,395,159 $25,147,094

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
51

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: Significant Accounting Policies

(a) Reporting Entity – The FLRA is an independent administrative Federal agency created by 

Title VII of the Civil Service Reform Act of 1978, with a mission to carry out five statutory 

responsibilities: (1) determining the appropriateness of units for labor organization 

representation; (2) resolving complaints of unfair labor practices; (3) adjudicating exceptions 

to arbitrators’ awards; (4) adjudicating legal issues relating to duty to bargain; and 

(5) resolving impasses during negotiations. The agency consists of three components: the 

Authority, the Office of the General Counsel, and the Federal Service Impasses Panel.

(b) Basis of Accounting and Presentation – The financial statements have been prepared to 

report the financial position, net cost of operations, changes in net position, and budgetary 

resources of the FLRA in accordance with the Chief Financial Officers Act of 1990, the 

Government Management Reform Act of 1994, and the Accountability of Tax Dollars Act of 

2002. The statements have been prepared from agency financial records in accordance with 

U.S. Generally Accepted Accounting Principles (GAAP), in accordance with guidance issued 

by the Federal Accounting Standards Advisory Board (FASAB) and the OMB, as prescribed 

in OMB Circular A-136, Financial Reporting Requirements, and pursuant to the 

requirements of 31 U.S.C. § 3515(b). These financial statements include all funds and 

accounts under the control of the FLRA.

The accounting structure of federal agencies is designed to reflect both accrual and budgetary 

accounting transactions. Under the accrual method of accounting, revenues are recognized 

when earned, and expenses are recognized when incurred, without regard to the receipt or 

payment of cash. The budgetary accounting principles, on the other hand, are designed to 

recognize the obligation of funds according to legal requirements, which in many cases 

occurs before an accrual-based transaction takes place. The recognition of budgetary 

accounting transactions is essential for compliance with legal constraints and controls over 

the use of federal funds. The accompanying financial statements are prepared on the accrual 

basis of accounting.

(c) Budget Authority – The Congress passes appropriations annually that provide the FLRA 

with authority to obligate funds for necessary salaries and expenses to carry out mandated 

program activities. These funds are available until expended, subject to OMB apportionment 

and to Congressional restrictions on the expenditure of funds. Also, the FLRA places 

internal restrictions on fund expenditures to ensure the efficient and proper use of all funds.

(d) Fund Balance with the Treasury – FLRA receipts and disbursements are processed by the 

Department of the Treasury. Fund balances with the Treasury consist of appropriated funds 

that are available to pay current liabilities and to finance authorized purchase commitments. 

No cash is held in commercial bank accounts.

(e) Accounts Receivable – Accounts receivable consists of amounts owed to the FLRA by other 

federal agencies and the public. Amounts due from federal agencies are considered fully 
52

collectible and consist of interagency agreements. An allowance for uncollectible accounts 

receivable from the public is established when either: (1) management determines that 

collection is unlikely to occur after a review of outstanding accounts and the failure of all 

collection efforts; or (2) an account for which no allowance has been established is submitted 

to the Treasury for collection, which occurs when it becomes 120 days delinquent. Based on 

historical experience, all receivables are considered collectible and no allowance is provided.

(f) General Property and Equipment (P&E) – This category consists of equipment and internal 

use software. The basis for recording purchased P&E is full cost, including all costs incurred 

to bring FLRA P&E to and from a location suitable for its intended use. P&E is depreciated 

using the straight-line method over the estimated useful life of the asset. Statement of 

Federal Financial Accounting Standards (SFFAS) No. 10, Accounting for Internal Use 

Software, provides accounting standards for internal use software used by each agency. The 

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

P&E that are not capitalized because they are under the capitalization threshold are expensed 

in the year of acquisition.

The FLRA’s capitalization threshold for individual purchases is $25,000. Bulk purchases of 

similar items that individually are worth less than $25,000, but collectively are worth more 

than $100,000, are also capitalized using the same general P&E categories and useful lives as 

capital acquisitions. Major building alterations and renovations are capitalized, while 

maintenance and repair costs are charged to expense as incurred.

General P&E Category Service Life

Software 3 years

Computer equipment 5 years

Office equipment 7 years

Office furniture 15 years

Leasehold improvements Life of lease

(g) Liabilities – Liabilities represent the amount of monies or other resources likely to be paid by 

the FLRA as a result of transactions or events that have already occurred. Liabilities are 

recognized when they are incurred, regardless of whether they are covered by available 

budgetary resources. The FLRA reports its liabilities under two categories –

“Intragovernmental” and “With the Public.” Intragovernmental liabilities represent funds 

owed to another government agency. Liabilities with the public represent funds owed to any 

entity or person that is not a federal agency, including private sector firms and federal 

employees. Each of these categories may include liabilities that are covered by budgetary 

resources and liabilities not covered by budgetary resources. No liability can be paid, 

however, absent an appropriation. Liabilities for which an appropriation has not been 

enacted are, therefore, classified as not covered by budgetary resources, since there is no 

certainty that the appropriation will be enacted. Liabilities that are covered by budgetary 

resources consist of intragovernmental and public accounts payable and accrued funded 

payroll. Liabilities not covered by budgetary resources in FY 2014 and FY 2015 consist of 
53

accrued and actuarial Federal Employees Compensation Act (FECA) compensation and 

unfunded employee leave. The federal government, acting in its sovereign capacity, can 

abrogate liabilities other than contracts.

(h) FECA Liabilities – An accrued FECA liability is recorded for actual and estimated future 

payments to be made for workers’ compensation pursuant to the FECA. The actual costs 

incurred are reflected as a liability because agencies reimburse the Department of Labor 

(DoL) two years after the actual payment of expenses. Future revenues are used for 

reimbursement to the DoL. The liability consists of: (1) the unreimbursed cost paid by the 

DoL for compensation to recipients under the FECA; and (2) the net present value of 

estimated future payments calculated by the DoL.

An estimated actuarial liability for future workers’ compensation benefits is included. The 

liability estimate is based on the DoL’s FECA actuarial model that takes the amount of 

benefit payments over the last twelve quarters and calculates the annual average of payments 

for medical expenses and compensation. This average is then multiplied by the liabilities-tobenefits paid ratios for the whole FECA program. The ratios may vary from year to year as a 

result of economic assumptions and other factors, but the model calculates a liability 

approximately twelve times the annual payments.

(i) Annual, Sick, and Other Leave – Amounts associated with the payment of annual leave are 

accrued while leave is being earned by employees, and this accrual is reduced as leave is 

taken. Each year, the balance in the accrued annual leave account is adjusted to reflect 

current pay rates. To the extent that current- or prior-year appropriations are not available to 

finance annual leave, future financing sources will be used. Sick leave and other types of 

non-vested leave are expensed as taken.

Any liability for sick leave that is accrued, but not taken, by a Civil Service Retirement 

System (CSRS)-covered employee is transferred to the OPM upon the retirement of that 

individual. Federal Employees Retirement System (FERS)-covered employees were not 

entitled to use unused sick leave for additional service credit until October 28, 2009. For 

retirements effective between October 28, 2009, and December 31, 2013, 50 percent of 

unused sick leave can be used for additional service credit. For retirements effective after 

December 31, 2013, 100 percent of unused sick leave can be credited.

(j) Net Position – The components of net position are unexpended appropriations and 

cumulative results of operations. Unexpended appropriations include undelivered orders and 

unobligated balances. Undelivered orders reflect the amount of goods and services ordered 

that have yet to be actively or constructively received. Unobligated balances are the amount 

of appropriations or other authority remaining after deducting the cumulative obligations 

from the amount available for obligation. The cumulative results of operations represent the 

net results of operations since inception, the cumulative amount of prior-period adjustments, 

the remaining book value of capitalized assets, and future funding requirements.

(k) 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 7 percent of each employee’s 
54

salary and contributes 7 percent of the employee’s basic salary to the CSRS Retirement and 

Disability Fund. These employees may also contribute, on a tax-deferred basis, to a defined 

contribution plan – the Thrift Savings Plan (TSP). The regular Internal Revenue Service 

limit in FY 2014 was $17,500 and FY 2015 was $18,000. The FLRA is not required to and 

does not contribute any matching amounts for CSRS employees. 

The FERS was established by enactment of Public Law 99-335. Pursuant to this law, the 

FERS and Social Security automatically cover most employees hired after December 31, 

1983. Employees hired before January 1, 1984 elected either to join the FERS and Social 

Security or to remain in the CSRS. For FERS employees, the FLRA withholds 6.2 percent in 

old age survivors and disability insurance (OASDI) up to a specified wage ceiling and 0.8 

percent of an employee’s gross earnings for retirement. In FY 2015, the FLRA matched the 

retirement withholdings with a contribution equal to 13.2 percent of the employee’s taxable 

salary. Due to enactment of the FERS Revised Annuity Employee and Further Revised 

Annuity Employee programs, the agency matched with a contribution equal to 11.1 percent 

for employees hired during and after calendar year 2013. 

All employees are eligible to contribute to the TSP. For employees under the FERS, a TSP 

account is automatically established. The FLRA is required to make a mandatory 

contribution of 1 percent of the base salary for each employee under the FERS. The agency 

is required to match the employee’s contribution up to a maximum of 5 percent of his or her 

salary. Matching contributions are not made to the TSP accounts established by CSRS 

employees. The FLRA does not report on its financial statements information pertaining to 

the retirement plans covering its employees. Reporting amounts such as plan assets, 

accumulated plan benefits, and related unfunded liabilities, if any, are the responsibility of 

the OPM.

FERS employees and certain CSRS reinstatement employees are eligible to participate in the 

Social Security program after retirement. CSRS employees who are 65 or older are eligible 

for Social Security payments (even if they have not retired). In these instances, the FLRA 

remits the employer’s share of the required contribution.

(l) Imputed Financing from Costs Absorbed by Others – The FASAB’s SFFAS No. 5, 

Accounting for Liabilities of the Federal Government, requires that employer agencies 

recognize the full cost of pension, health, and life insurance benefits during their employees’ 

active years of service. The OPM, as administrator of the CSRS and FERS plans, the Federal 

Employees Health Benefits Program, and the Federal Employees Group Life Insurance 

Program, must provide the “cost factors” that adjust the agency contribution rate to the full 

cost for the applicable benefit programs. An imputed financing source and corresponding 

imputed personnel cost is reflected in the Statement of Changes in Net Position and the 

Statement of Net Cost.

(m)Revenue and Other Financing Sources – The FLRA’s revenues are derived from 

reimbursable work agreements, Freedom of Information Act collections, and a direct annual 

appropriation. The FLRA recognizes reimbursable work when earned, i.e., services have 
55

been provided. Each reimbursable work agreement specifies the dollar value of the 

agreement and is based on estimated resources needed to perform the specified services.

The agency receives an annual Salaries and Expenses appropriation from the Congress. 

Annual appropriations are used, within statutory limits, for salaries and administrative 

expenses and for operating and capital expenditures for essential P&E. Appropriations are 

recognized as non-exchange revenues at the time the related program expenses are incurred. 

Appropriations expended for capitalized P&E are recognized as expenses when an asset is 

consumed in operations. The FLRA’s annual appropriation for FY 2014 was $25,500,000; 

the agency’s annual appropriation for FY 2015 was $25,548,000.

(n) Expired Accounts and Cancelled Authority – Unless otherwise specified by law, annual 

budget authority expires for incurring new obligations at the beginning of the subsequent

fiscal year. The account into which the annual authority is placed is called an expired 

account. For five fiscal years, the expired account is available for expenditure to liquidate 

valid obligations incurred during the unexpired period. Adjustments are allowed to increase 

or decrease valid obligations incurred during the unexpired period that were not previously 

reported. At the end of the fifth expired year, the account is cancelled and any remaining 

money is returned to the Treasury.

(o) 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 (GSA).

(p) 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.

(q) Use of Estimates – The preparation of financial statements in conformity with GAAP 

requires management to make estimates and assumptions that affect the reported amounts of 

assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.

(r) 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.
56

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. No discrepancies exist between the Fund Balance reflected on the 

Balance Sheet and the balances in the Treasury accounts.

Fund Balance with the Treasury

As of September 30, 2015 2014

General funds $3,482,175 $3,625,753

Other fund types (2,293) 899

Total $3,479,882 $3,626,652

Status of Fund Balance with the Treasury

As of September 30, 2015 2014

Unobligated balance available $45,212 $107,618

Unobligated balance unavailable 1,598,313 670,761

Obligated balance not yet distributed 1,836,357 2,848,273

Total $3,479,882 $3,626,652

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. At the start of the next fiscal year, this amount will become part of 

the unavailable balance. The unavailable unobligated fund balances represent the amount of 

appropriations for which the period of availability for obligation has expired. These balances are 

available for upward adjustments of obligations incurred only during the period for which the 

appropriation was available for obligation or for paying claims attributable to the appropriations. 

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand.

NOTE 3: Accounts Receivable

The reported amount for accounts receivable consists of amounts owed to the FLRA by other 

Federal agencies (intragovernmental) and the public. There are no amounts that are deemed 

uncollectible as of September 30, 2015 and 2014.
57

Accounts Receivable

As of September 30, 2015 2014

Intragovernmental $16,903 $0

With the public 2,061 3,634

Total $18,964 $3,634

NOTE 4: Property, Equipment and Software, Net

All assets in the software and leasehold improvement major classes were retired in FY 2015.

Category

Service 

Life

Acquisition 

Value

Accumulated 

Depreciation

2015 Net 

Book 

Value

2014 Net 

Book 

Value

Software 3 years $0 $0 $0 $0

Computer equipment 5 years 455,885 (374,689) 81,196 485,966

Office equipment 7 years 202,231 (184,252) 17,979 36,491

Office furniture 15 years 453,695 (104,226) 349,469 65,619

Leasehold improvements Life of lease 0 0 0 0

Total $1,111,811 $(663,167) $448,644 $588,076

NOTE 5: Liabilities Covered and Not Covered by Budgetary Resources 

Unfunded FECA liabilities consist of workers’ compensation claims payable to the DoL, which 

will be funded in a future year, and an unfunded estimated liability for future workers’ 

compensation claims based on data provided from the DoL. The actuarial calculation is based on 

benefit payments made over 12 quarters, and calculates the annual average of payments. For 

medical expenses and compensation, this average is then multiplied by the liability-to-benefit 

paid ratio for the whole FECA program. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. At the 

end of each month, the balance in the unfunded leave account is adjusted to reflect the liability at 

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. 
58

Liabilities Not Covered By Budgetary Resources

For the Years ended September 30, 2015 2014

Intragovernmental – Unfunded FECA liabilities $219,897 $216,609

Federal employee benefits – FECA actuarial liability 1,068,706 1,126,026

Unfunded leave 1,374,235 1,511,241

Total $2,662,838 $2,853,876

NOTE 6: 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. The agency has an occupancy 

agreement with the GSA for office space at the following locations.

(a) 1400 K Street NW, Washington, DC – The term is for 87 months beginning on June 1, 2014. 

The FLRA has the right to terminate the lease based on the availability of funds, or with a 

4-month notice at any point after the first 12 months of occupancy.

(b) 223 Peachtree Street NE, Atlanta, GA – The term is for 120 months beginning on 

January 18, 2012. The FLRA has the right to terminate the lease based on the availability of 

funds, or with a 4-month notice at any point after the first 12 months of occupancy.

(c) 10 Causeway Street, Boston, MA – The term is for 55 months beginning on October 1, 

2015. The FLRA has the right to terminate the lease based on the availability of funds, or 

with a 4-month notice at any point after the first 12 months of occupancy.

(d) 224 S. Michigan Avenue, Chicago, IL – The term is for 120 months beginning on or June 

16, 2012. The FLRA has the right to terminate the lease based on the availability of funds, 

or with a 4-month notice at any point after the first 12 months of occupancy.

(e) 525 Griffin Street, Dallas, TX – The term is for 120 months beginning on October 1, 2007. 

The FLRA has the right to terminate the lease based on the availability of funds, or with a 

4-month notice at any point after the first 12 months of occupancy. 

(f) 1244 Speer Boulevard, Denver, CO – The term is for 57 months beginning on July 1, 2013. 

The FLRA has the right to terminate the lease based on the availability of funds, or with a 

4-month notice at any point after the first 12 months of occupancy. 

(g) 901 Market Street, San Francisco, CA – The term is for 112 months beginning on 

April 1, 2012. The FLRA has the right to terminate the lease based on the availability of 

funds, or with a 4-month notice at any point after the first 12 months of occupancy. 
59

NOTE 7: 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 2010 obligations prior to cancellation, and 

believes that it does not have any outstanding that will require future resources to liquidate.

NOTE 8: Intragovernmental Costs and Exchange Revenue

The classification of revenue or costs as “intragovernmental” or “with the public” is determined 

on a transaction-by-transaction basis. Preceding transactions in the lifecycle of a product will 

not have an impact on subsequent transactions. If the FLRA purchases goods or services from 

another federal entity, capitalizes them into inventory, and later resells them to the public, the 

cost of the original purchase of resale assets from the other federal entity will be classified as 

“intragovernmental” at the time of the purchase. At ultimate sale to the end user, the resulting 

cost of goods will be classified as “with the public.” The purpose of this classification is to 

enable the federal government to provide consolidated financial statements, and not to match 

public and intragovernmental revenue with costs that are incurred to produce public and 

intragovernmental revenue.

NOTE 9: Apportionment Categories of Obligations Incurred

All obligations incurred are characterized as Category A, quarterly apportioned, on the Statement 

of Budgetary Resources.

Obligations Incurred

For the Years Ended September 30, 2015 2014

Direct obligations – Category A $25,602,425 $25,463,310

Reimbursable obligations – Category A 25,355 24,006

Total $25,627,780 $25,487,316

NOTE 10: Undelivered Orders at the End of the Period

The amount of budgetary resources obligated for undelivered orders at the end of September 30, 

2015 and 2014 was $678,391 and $2,168,227 respectively.

NOTE 11: Explanation of Differences between the Statement of Budgetary 

Resources and the Budget of the U.S. Government

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting, calls for explanation of material differences 

between amounts reported in the Statement of Budgetary Resources and the actual balances 
60

published in the Budget of the U.S. Government (the President’s Budget). The FY 2016 

President’s Budget, with actual amounts for FY 2014, has been reconciled to the Statement of 

Budgetary Resources. The FY 2017 President’s Budget, with actual amounts for FY 2015, will 

not be published until February 2016.

NOTE 12: Incidental Custodial Collections

Custodial collections are reflected in the Fund Balance with the Treasury during the year. While 

these collections are considered custodial, they are neither primary to the mission of the agency 

nor material to the overall financial statements. There were no custodial collections for the years 

ended September 30, 2015 and 2014. Custodial collections are transferred to the Treasury 

General Fund on September 30, and are not reflected in the financial statements of the agency.

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, 2015 and 2014 are shown in the following table.
61

2015 2014

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $25,627,780 $25,487,316

Spending Authority From Offsetting Collections and Recoveries $ (1,244,537) $ (76,095)

Obligations Net of Offsetting Collections and Recoveries $24,383,243 $25,411,221

Net Obligations $24,383,243 $25,411,221

Other Resources

Imputed Financing From Costs Absorbed By Others $ 1,215,100 $ 1,400,299

Other Resources $ (747) $ -

Net Other Resources Used to Finance Activities $ 1,214,353 $ 1,400,299

Total Resources Used to Finance Activities $25,597,596 $26,811,520

Resources Used to Finance Items Not Part of the Net Cost of Operations:

Change In Budgetary Resources Obligated For Goods,

Services and Benefits Ordered But Not Yet Provided $ 1,534,663 $ (998,644)

Resources That Fund Expenses Recognized In Prior Periods $ (196,786) $ (42,488)

Resources That Finance the Acquisition of Assets $ - $ (455,885)

Total Resources Used to Finance Items Not Part of Net Cost of Operations $ 1,337,877 $ (1,497,017)

Total Resources Used to Finance the Net Cost of Operations $26,935,473 $25,314,503

Components of the Net Cost of Operations That Will Not Require or

Generate Resources in the Current Period:

Components Requiring or Generating Resources in Future Periods

Increase In Annual Leave Liability $ - $ 99,150

Other $ 5,749 $ (59,745)

Total Components of Net Cost of Operations That Will Require or

Generate Resources In Future Periods $ 5,749 $ 39,405

Components Not Requiring or Generating Resources

Depreciation and Amortization $ 139,432 $ 80,442

Other $ (13,224) $ 7,904

Total Components of Net Cost of Operations That Will Not Require or

Generate Resources $ 126,208 $ 88,346

Total Components of Net Cost of Operations That Will Not Require or

Generate Resources In The Current Period $ 131,957 $ 127,751

Net Cost of Operations $27,067,430 $25,442,254

FEDERAL LABOR RELATIONS AUTHORITY

RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET

AS OF SEPTEMBER 30, 2015 AND 2014

(In Dollars)
62
63
64
65

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
66

UNITED STATES OF AMERICA

FEDERAL LABOR RELATIONS AUTHORITY

WASHINGTON, D.C. 20424-0001

INSPECTOR GENERAL

MEMORANDUM

DATE: October 22, 2015

TO: Carol Waller Pope 

Chairman

Ernest DuBester

Member

Patrick Pizzella

Member

FROM: Dana Rooney

Inspector General

SUBJECT: Inspector General Identified Management Challenges

The Reports Consolidation Act of 2000, Public Law 106-531, requires the Federal Labor 

Relations Authority (FLRA) Office of Inspector General (OIG) 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. The FLRA is 

required to prepare an annual “Performance and Accountability Report” (PAR) which must be 

submitted to the President, the Office of Management and Budget, and to appropriate committees 

and subcommittees of Congress. This OIG statement should be included in the PAR.

To identify the challenges, we examine issued reports with recommendations where corrective 

actions have yet to be taken and analyze new activities that could pose significant challenges. 

We discussed our concerns with FLRA management and considered all comments received. 

This year, we broadened Information Technology Security to include new concerns associated 

with privacy. We have also added a new challenge for FLRA concerning building and sustaining 

a high-performing workforce.

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 challenges include: (1) information technology security needs continuing 

improvement, (2) proper handling of records; and (3) building and sustaining a high-performing 

workforce.

I appreciate management’s strong commitment in tackling these challenges and look forward to 

working collaboratively in addressing them.
67

Attachment

cc: Sarah Whittle Spooner, Executive Director

Kevin Smith, Director, Budget and Finance Division

Attachment 

CHALLENGE 1: Information Technology Security Needs Continuing Improvement

Safeguarding data and information systems is a continuing challenge for all Federal agencies, 

including the Federal Labor Relations Authority (FLRA). 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. We broadened the 

information technology security challenge to include additional concerns associated with a recent 

Office of Inspector General (OIG) review of FLRA’s privacy and data security policies, 

procedures and practices.

Information Security

Since the passage of the Federal Information Security Management Act of 2002 (FISMA), the

OIG has annually reviewed the FLRA’s information security program. The FISMA requires the 

FLRA OIG 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 2014 

FISMA report identified two new vulnerabilities and three prior year vulnerabilities which

present risks and challenges that confront management and require additional action to be fully 

resolved. One of the challenges we identified in the Fiscal Year (FY) 2009 FISMA Report and 

the remaining two were identified in the FY 2012 FISMA Report.

Progress made:

During the FY 2014 FISMA evaluation, we noted that management has taken great steps to 

improve the information security program by remediating two of the five vulnerabilities

identified in prior years. We also noted FLRA does take information security weaknesses 

seriously. In response to the FY 2014 FISMA evaluation report, management plans to complete 

all actions needed to resolve the outstanding FISMA findings and recommendations in 2015.

We anticipate completing the FY 2015 FISMA Report in November 2015. This audit will assess 

the status of open recommendations.

Privacy Program

The Consolidated Appropriations Act of 2005 requires agencies to assign a Chief Privacy Officer 

who is responsible for identifying and safeguarding personally identifiable information (PII) and 

requires an independent third-party review of agency use of PII and of its privacy and data 

protection policies and procedures. In June 2015, the OIG performed a Privacy and Data

Protection review and tested 27 different areas. The audit resulted in four findings in the

following areas: (1) IT and Privacy Coordination; (2) System of Records Notices and Routine 

Use Review; (3) Privacy Impact Assessment (PIA); and (4) Website Updates. The Chief 

Information Security Officer and the Privacy Officer should work to analyze the IT systems that 
68

do not currently have PIAs to determine whether PIAs are required, and, if they are, to post those 

PIAs on the FLRA website. In response to the FY 2015 Review of the FLRA’s Privacy Program 

report, management has a plan to mitigate the weaknesses in 2016.

CHALLENGE 2: 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, 2014. Throughout 2015, the FLRA has continued its efforts to use technology 

to enhance operational efficiencies by implementing systems to automate paper-based manually 

intensive processes. This includes the development of a case management system infrastructure 

that supports electronic files and that will further agency efforts to properly handle agency case 

files and records. This is an excellent step forward in using technology to enhance operational 

efficiencies. 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 

FLRA 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 maintained, 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.

Progress made:

The FLRA has made steady progress in accomplishing its multi-year plan, with a goal of 

implementing a full electronic file – consistent OMB requirements – in 2019. A very noteworthy 

accomplishment, in 2015, FLRA began reviewing its record management policy and disposition 

authorities to ensure that the appropriate oversight and governance processes are established, 

including agency policies, procedures and processes that address the proper handling of all hard 

copy and electronic records. FLRA recognizes the need to develop policies, processes 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.

CHALLENGE 3: Building and Sustaining a High Performing Workforce

To effectively carry out its responsibilities to provide reliable and timely financial data, the

FLRA strives to hire and retain the best and most capable staff. During the past year, FLRA has 

had two Directors in the Budget and Finance Division (BFD). In December 2014, the OIG

issued a management letter and suggested the FLRA recruit qualified individuals to join the BFD

to help the FLRA maintain a strong accounting function. The Director of BFD plans to leave the 

FLRA and leaving a critical vacant position. As the FLRA recruits to build and sustain a highperforming workforce, these challenges should continue to be areas of focus.
69

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, proper handling of records, and building and sustaining a 

high-performing workforce.

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. Also in FY 2015, the FLRA executed its 

plan that is expected to close three of the outstanding IT security findings, and partially address 

the remaining finding. In addition, in FY 2015, the agency resolved one of the four findings 

identified in the Privacy and Data Protection review, and implemented a corrective plan 

expected to resolve the remaining three findings in early 2016. We are pleased that the planning

efforts and actions taken over the last year have made a significant impact on the progress 

towards successfully accomplishing our goals. The agency remains vigilant in maintaining a 

control environment that monitors and mitigates risks, threats, and vulnerabilities.

As for records management, the FLRA has continued its efforts to use technology to enhance 

operational efficiencies by implementing systems to automate paper-based manually intensive 

processes. This includes the development of a case management system (CMS) infrastructure 

that supports electronic files and that will further agency efforts to properly handle agency case 

files and records. The FLRA has made steady progress in accomplishing its multi-year plan, 

with a goal of implementing a full electronic file – consistent OMB requirements – in 2019. 

The FLRA recognizes that a necessary component of the implementation of electronic case files 

is the development of policies, processes, and procedures that provide staff with clear guidance 

for handling records, and that ensure compliance with agency requirements. 

Also during this year, in furtherance of its effort to take a more comprehensive approach to 

records management, the FLRA began reviewing its record management policy and disposition 

authorities. This is to ensure that the appropriate oversight and governance processes are 

established, including agency policies, procedures, and processes that address the proper 

handling of all hard-copy and electronic records. As an example, this year, the FLRA 

developed and provided guidance to certain agency personnel concerning managing federal 
70

records in government and personal email accounts to ensure that email is captured in an agency 

recordkeeping system.

This will be an ongoing initiative moving forward to ensure various roles and related authorities 

and capabilities are properly assigned, documented, managed, and monitored, and that written 

documentation is kept up-to-date. In FY 2016, we also plan to ensure that even where certain 

types of records do not have legal retention requirements, the policies, processes, and 

procedures clearly and specifically instruct staff on proper handling, and that we are 

periodically verifying that such policies are being followed.

And, finally, with respect to hiring and retaining the best and most capable staff within the 

FLRA’s Budget and Finance Division, we recently recruited and selected a permanent Budget 

and Finance Director. We look forward to the new Director, along with the existing staff 

member – who has been with the FLRA for over a year now – building and sustaining a highperforming office that is fully capable of maintaining a strong accounting and budgeting 

function. 

IMPROPER PAYMENTS ELIMINATION AND RECOVERY

The Improper Payments Information Act of 2002, as amended by the Improper Payments 

Elimination and Recovery Act of 2010 (IPERA), requires agencies to annually report 

information on improper payments. The FLRA has reviewed all of its programs and determined 

that none are susceptible to significant improper payment. The IPERA also requires agencies to 

conduct payment recapture audits for each program that expends $1 million or more annually, if 

conducting such audits would be cost-effective. Based on the criteria set forth in Appendix C of 

OMB Circular A-123, the agency has also determined that it would not be cost-effective to 

establish a recovery audit program for its programs that expend more than $1 million. 

Recoveries are not expected to be greater than the costs incurred to identify any overpayments.
FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, N.W.

Washington, DC 20424

www.flra.gov