Thirty-seven 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 2016
TABLE OF CONTENTS

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

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

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

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

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

Performance Summary...................................................................................................................15

Financial Analysis..........................................................................................................................33

Management Assurances ...............................................................................................................36

PERFORMANCE GOALS AND RESULTS......................................................37

Goal 1.1.1: Produce Timely Review and Disposition of Unfair-Labor-Practice Cases ...............37

Goal 1.2.1: Resolve Unfair-Labor-Practice Cases in a Timely Fashion.......................................39

Goal 1.1.2: Produce Timely Review and Disposition of Representation Cases...........................40

Goal 1.2.2: Resolve Representation Cases in a Timely Fashion ..................................................42

Goal 1.1.3: Produce Timely Review and Disposition of Arbitration Cases.................................42

Goal 1.1.4: Produce Timely Review and Disposition of Negotiability Cases..............................43

Goal 1.1.5: Produce Timely Review and Disposition of Bargaining-Impasse Cases...................44

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

the Labor-Management Community.........................................................................45

Goal 2.2.1: Successfully Resolve a Significant Portion of FLRA Cases through ADR...............46

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

Workforce to Accomplish the FLRA’s Mission.......................................................50

Goal 3.1.2: Improve Use of Existing Technology and Deploy New IT Systems to Streamline and 

Enhance Organizational Operations .........................................................................54

Verification and Validation of Performance Data .........................................................................56

PRINCIPAL FINANCIAL STATEMENTS .......................................................57

Message from the Chief Financial Officer.....................................................................................57

Balance Sheet.................................................................................................................................58

Statement of Net Cost ....................................................................................................................59

Statement of Changes in Net Position ...........................................................................................60

Statement of Budgetary Resources................................................................................................61

Notes to the Financial Statements..................................................................................................62

Report of Independent Auditors.....................................................................................................73
OTHER ACCOMPANYING INFORMATION.................................................76

Summary of Financial Statement Audit.........................................................................................76

Summary of Management Assurances...........................................................................................76

Memorandum on Inspector General Identified Management Challenges.....................................77

Management’s Response ...............................................................................................................84

Improper Payments Elimination and Recovery .............................................................................85
1

MESSAGE FROM THE CHAIRMAN

I am pleased to submit the FY 2016 Performance and Accountability Report 

for the Federal Labor Relations Authority (FLRA). Overall, FY 2016 was an 

extremely productive and successful year for the FLRA. The agency 

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. We are committed to fostering a productive and effective federal 

government, providing leadership in establishing policies and guidance related to federal-sector 

labor-management relations, and ensuring compliance with the Federal Service LaborManagement Relations Statute (the Statute). 

With respect to mission performance, FY 2016 was a strong year for the FLRA. Having 

completely eliminated its backlog of overage cases in FY 2015, the Authority met or exceeded 

all of its performance goals in FY 2016. 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. And the Federal Service Impasses Panel also exceeded all of its strategic and 

performance goals. And the FLRA delivered nearly 300 training, outreach, and facilitation 

sessions to over 8,400 customers regarding rights and responsibilities under the Statute. 

Educating our customers is an important strategic initiative that can reduce and, in some 

instances, eliminate the cost of unnecessary litigation. 

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

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

throughout the agency. Indeed, in the OGC, the sheer volume of ULP charges filed (over 4,300

in FY 2016) 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 95 percent of the ULP cases and 98 percent of the 

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

74 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 or partial resolution of the 

underlying dispute and closure of the pending case. And 75 percent of the CADRO arbitration 

cases resulted in at least partial resolution of the underlying dispute. The resolution of workplace 

disputes through voluntary settlements serves as a meaningful foundation for building effective 

and productive relationships, and for timely implementing workplace innovations without costly 
2

delays, saving the taxpayers millions of dollars and providing efficient and effective government 

services to the American people. 

I also proudly note – on behalf of us all – that in FY 2016 the FLRA captured the rank of #1 

small agency on two important indexes in the Office of Personnel Management’s Federal 

Employee Viewpoint Survey (FEVS) – Employee Engagement and the New Inclusion Quotient 

(New IQ), which measures the inclusiveness of the work environment. We also experienced an 

impressive positive-ratings increase in 19 items from 2015, again had no identified challenges 

and 66 identified strengths, and scored above the government-wide average in 69 out of 71 

questions. Moreover, the FLRA captured the rank of #3 in the Partnership for Public Service’s 

2015 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 seven 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 2016, the FLRA continued to implement its 2015-2018 Strategic Plan, which 

established, through collaborative review by agency leadership and employees – at all levels and 

throughout the agency – of its operations, staffing, work processes, resource allocations, and 

performance, 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 33 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 15, 2016
3

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND AND MISSION

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

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

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

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

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

dates from the issuance of Executive Order 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 management’s rights, employees’ rights, and union rights. For example, the 

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

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

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

refrain from such activity, freely and without fear of penalty or reprisal. It is the role of the 

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

these statutory rights and responsibilities. 

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

the 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.
4

The Authority

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

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

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

administrative officer. 

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

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

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

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

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

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

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

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

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

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

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

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

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

Agency Ethics Official.

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

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

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

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

provides alternative-dispute resolution (ADR) services in all ULP cases. Recommended 

Decisions of the ALJs may be appealed to the Authority.

The Office of the General Counsel

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

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

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

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

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

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

50 percent of the 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. Collectively, the 

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

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

The Federal Service Impasses Panel

The FSIP resolves impasses between federal agencies and unions representing federal employees 

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

Employees Flexible and Compressed Work Schedules Act. The FSIP 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 2016, 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
7

The FLRA’s FY 2016 performance-planning framework is based on the agency’s FY 2015 -

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

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

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

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

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

organizational excellence. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

closed case within the Authority and the OGC. 

The analysis and assessment of these reports drive, among other things: 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 2016, in recognition of the upcoming retirement of 

one of the three FLRA ALJs, the FLRA again targeted resources, utilizing cross-component 

details to assist in prioritizing the caseload of the OALJ and ensuring full resolution of the 

retiring ALJ’s case docket. 
8

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

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

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

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

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

and internal improvements in information technology (IT). 
9

FY 2017 Performance Goals 

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

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

1.1.2: Produce timely review and disposition of representation cases.

1.2.2: Resolve representation cases in a timely fashion.

1.1.3: Produce timely review and disposition of arbitration cases.

1.1.4: Produce timely review and disposition of negotiability cases.

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

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

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

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

accomplish the FLRA’s mission. 

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

enhance organizational operations. 

2015-2018 Strategic Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

for the duration of the project. 

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

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

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

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

FLRA referenced evidence-based performance and resource trends, and it intends to use data 
10

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 permit improved employee performance and government operations through 

effective labor-management relations. 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.

Through the resolution of disputes, the agency’s actions facilitate improvements in the 

government-wide delivery of services to the American public. 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 technology, 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.

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

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

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

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

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

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

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

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

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

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

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

labor-management disputes significantly reduces the need for litigation and its attendant costs, and 
11

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

government services.

Information Technology (IT)

Consistent with the FLRA’s Strategic Plan, throughout FY 2016, IT and automation of agency 

processes continued to be key areas of focus for the agency. Both are fundamental for ensuring 

the cost-effectiveness and efficiency of the FLRA, as measured by the agency’s ability to meet 

its annual performance goals. The agency continues to improve its overall effectiveness and 

efficiency, as well as the customer-service experience, by engaging in new and innovative ways 

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

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

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

technology.

In FY 2016, the FLRA launched its redesigned website – www.FLRA.gov. This effort, which 

included input from key internal and external stakeholders, was highly collaborative, engaging 

employees across all components and offices of the agency to develop improvements in the 

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

and services to customers. The new site is significantly more user friendly, allowing visitors to 

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

intuitive through improved organization of content. The new site also provides users with 

integrated access to all FLRA training information and other educational materials in one 

centralized location. And the agency implemented an online tool that allows customers, for the 

first time, to register for all FLRA training events directly through the website, creating 

efficiencies for both customers and FLRA administrative staff, who support the Agency-wide 

performance goal of providing 250 training sessions to over 6,000 participants annually. 

The FLRA also continued to work in FY 2016 towards its long-term goal of implementing endto-end electronic case files throughout the FLRA and complying with the OMB-mandated target 

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

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

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

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

FY 2016, the agency continued to execute the 4-year, 4-phase plan that it initially developed and 

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

Phase 1 was completion of the 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. Every FLRA office that receives case filings –

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

electronically. But 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 continued in FY 2016 to focus on 
12

developing, testing, and implementing eFiling 2.0 with a new user interface (in Ruby on Rails) 

that was more intuitive, user-friendly, and visually appealing. 

The new and improved eFiling 2.0 interface also serves as the catalyst for Phase 2, which – using 

the same Ruby on Rails user interface – will provide a similar, more user-friendly and intuitive 

interface for the agency’s electronic Case-Management System. Phase 2 also includes the 

implementation of an agency-wide Document Management System – an electronic, cloud-based 

“filing cabinet” that provides a framework for organizing digital and paper documents. The 

Document Management System will not only replace all existing network drives and folders and 

allow for quick access to any document, file, or email through use of its sophisticated search 

engines, but it will also provide the necessary storage capacity and technological platform for the 

eventual integration of all electronic case-processing systems so that the agency can realize its 

vision of having fully electronic case files. Consistent with its multi-year plan, in FY 2016, the 

FLRA procured a Document Management System – iManage – and it is on track to complete the 

design and implementation of this new IT system 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 2016, the FLRA continued to leverage the Video Teleconferencing (VTC) 

System implemented in FY 2015 and to transition to business cable, gaining efficiencies and cost 

savings in travel and network costs. The VTC System saves agency travel funds and offers

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

with the ongoing transition to business cable, the agency is achieving 5 to 10 percent savings 

annually for network services and reinvesting those savings to provide a back-up, secondary 

system for the Regional Office networks. 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 innovative technology. 

Human Capital

In FY 2016, the FLRA continued its overall success and improvement as measured by the 

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

the recruitment, retention, and skills and leadership development of its employees continues to 

produce a highly engaged workforce that is dedicated to the accomplishment of its mission. The 

results of the survey reflect the agency’s continuous growth in overall employee satisfaction, as 

demonstrated by the FLRA ranking as the #1 small agency in two important indices – Employee 

Engagement and New IQ – and the increase in 2016 positive ratings in 19 items from 2015. In 

addition, the FLRA has 66 identified strengths (items with 65% or higher positive ratings) and no 

identified challenges (items with 35% or higher negative ratings). And the agency’s scores are 

above the government-wide average in 69 out of 71 questions. Of particular note is that: 97% of 

FLRA respondents report that they are held accountable for achieving results; 96% positively 

rate the overall quality of the work done by their work unit; 96% indicate that they are willing to 

put in extra effort to get a job done; 94% know how their work relates to the agency’s goals and 
13

priorities; 94% think that the people they work with cooperate to get the job done; 94% believe 

that the agency is successful at accomplishing its mission; 93% find that the workforce has the 

job-relevant knowledge and skills necessary to accomplish organizational goals; 92% indicate 

that their supervisors regularly communicate with them about their performance; and 91% state 

that employees in their work unit share job knowledge with each other. 

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 

agency-wide 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. 

As to the Employee Engagement Index, it is a measure of the conditions conducive to 

engagement – that is, the engagement potential of the agency’s work environment. It is 

composed of three sub-factors: Leaders Lead, Supervisors, and Intrinsic Work Experience. Not 

only is the FLRA the #1 ranked small agency overall, but it is also the top-scoring agency in two 

of the three sub-factors – Leaders Lead and Intrinsic Work Experience. 

And the FLRA’s #1 small-agency ranking in terms of the “New Inclusion Quotient” (New IQ)

Index provides insights into employee perceptions of the inclusiveness of the agency by looking 

at twenty questions that measure the five “Habits of Inclusion” – Fair, Open, Cooperative, 

Supportive, and Empowering. The FLRA is the top-ranking small agency for each of the five 

habits of inclusion, with scores averaging 15 percent – and as much as 21 percent – higher than 

the average scores for all small agencies. 

Consistent with the 2016 Government-wide Inclusive Diversity Strategic Plan, in FY 2016, the 

FLRA used the FEVS to develop and implement a data-driven, forward-looking human-capitalmanagement 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, including the New IQ, for employees to build and cultivate key 

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

connection, in FY 2016, 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 redesign; 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 2016, 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 
14

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 employees readily volunteered for collateral-duty assignments, new initiatives, 

and projects. And, in FY 2016, FLRA employees continued to receive discounted tuition at the 

University of Maryland University College (UMUC) for self-directed study pursuant to a 

memorandum of understanding between the agency and UMUC.

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 2016, the FLRA continued a training initiative designed to assist senior, high-potential 

employees identify and strengthen critical leadership skills in preparation for eventually 

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

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

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

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

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

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

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

enhance their skills and encourage ongoing collaboration among peers. 

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

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

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

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

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

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

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

collaboration. These efforts have produced real results.

For example, during FY 2016, the Authority component engaged its employees in the 

development and implementation of a pilot program for the electronic circulation of 

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

no longer physically circulate hard or paper copies of all decisions and votes. Not only did this 

process improvement result in increased efficiencies, it facilitated increased staff telework and 

awareness of pending issues by providing them the opportunity to review all circulating 

decisions. In addition, it began the transition to an increasingly electronic “case-file universe,” 

in anticipation of the FLRA’s electronic-case-file initiative. 

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

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

FY 2014, and continuing throughout FY 2016, the agency achieved greater diversity in its 

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

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

affinity-group organizations. Consistent with the 2016 Government-wide Inclusive Diversity 

Strategic Plan, the FLRA is using data to help identify and eliminate barriers to recruiting and 
15

hiring the diverse talent that it needs. In this respect, the FLRA’s ongoing focus on increasing 

ethnic and gender diversity in its Senior Executive Service corps yielded small, but meaningful, 

gains in FY 2016. The FLRA also continued to utilize both Student Pathways and summerexternship programs to accomplish mission-related initiatives throughout the agency. Serving as 

one of three Small Agency Council (SAC) representatives on the Diversity and Inclusion in 

Government Council (DIG), the FLRA is participating in government-wide discussions 

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. 

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 seven and a half years in providing customers with timely and quality 

adjudication and dispute-resolution services. But, over that time period and continuing into FY 

2016, the FLRA has had to overcome significant obstacles in meeting its mission 

requirements. In addition to increased case filings and backlogs in certain components of the 

agency over the years, the agency experienced a wave of key employee retirements and 

departures starting in FY 2013 and continuing into FY 2016. 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, FY 2015, and FY 

2016. Despite these challenges, however, in FY 2016, the FLRA overcame nearly all of these 

obstacles – meeting or exceeding nearly every mission-related performance goal.

 Authority (including OALJ, CADRO)

The Authority began FY 2016 with no “overage” cases due in large part to its successful 

implementation and completion of a case-issuance strategy (an action plan) in FY 2015. That 

achievement enabled the Authority to meet or exceed all of its case-processing performance 

goals in FY 2016. In this regard, the Authority’s FY 2016 goals were to issue 75 percent of 

arbitration, ULP, and negotiability cases within 180 days of assignment to Authority staff. The 

Authority met the 75 percent goal with respect to negotiability cases, and exceeded it with regard 

to ULP cases (89 percent) and arbitration cases (79 percent). In addition, as in previous years, 

the Authority continued to meet its goal – required by law to be 100 percent – of issuing 
16

decisions, within 60 days of appeal, as to whether to grant review of FLRA Regional Directors’ 

decisions in representation cases. 

As a result of these performance successes, and consistent with the FLRA’s 2015-2018 Strategic 

Plan, the Authority decided to change its performance measures for FY 2017 to both shorten 

case-processing times – from 180 to 150 days in 75 percent of non-representation cases – and to 

develop measures for ensuring that the cases not “captured” by those 75 percent do not go 

significantly overage. In the latter regard, the Authority created new measures for ensuring that 

95 percent of all cases issue within 365 days. In short, the Authority’s FY 2016 performance 

successes make it well positioned to more efficiently and expeditiously process all of its cases in 

FY 2017. 

Moreover, in FY 2016, the Authority continued to update its training materials and other 

educational tools. Specifically, the Authority updated its comprehensive Guide to Arbitration 

under the Statute, which provides guidance to arbitrators and parties to arbitration cases – the 

most common case type filed with the Authority. Additionally, the Authority continued to 

review and make regular updates to its Comprehensive Arbitration Training program (including 

instructional slides, interactive exercises, and other handouts), which it presented to its parties 

several times throughout the year. Further, the Authority updated its Comprehensive 

Negotiability Training program and delivered several training sessions to the FLRA’s customers 

– and internal staff – in FY 2016. The currency of these materials and the provision of up-todate, relevant training have resulted in parties being better educated about the Authority’s law 

and case-processing requirements, which has resulted in the Authority receiving higher-quality, 

better-drafted briefs. That, in turn, enables the Authority to more efficiently and expeditiously 

process those cases.

As for the OALJ, in FY 2016, that office had a performance goal of deciding 50 percent of its 

cases within 180 days of issuance of a ULP complaint by the OGC. The OALJ significantly 

exceeded that goal, issuing decisions on 80 percent of ULP complaints within 180 

days. However, the OALJ fell slightly shy of its new, “overage” performance goal of deciding 

98 percent of all ULP cases within 365 days of the complaint being issued – deciding 89 percent 

of its decisions within that timeframe. This is because the OALJ had an ongoing effort to 

eliminate “overage” cases, which meant that a larger number of significantly older cases were 

processed to completion during the course of FY 2016. With this focus on issuing overage cases, 

it made it difficult for the OALJ to achieve a 98 percent rate. But the OALJ ended FY 2016 with 

only a single case older than 365 days, which should enable the OALJ to meet its goal in 

FY 2017.

With over 1,000 new cases on the docket in the last five 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 2016, in over 74 percent of cases in which the parties participated in the 

Settlement Judge Program, they reached agreement and fully resolved their dispute. While this 

fell slightly short of the goal of partial or full resolution in 89 percent of cases, that is attributable 

to the 42 percent drop in the number of post-complaint ULP cases in which parties requested 

Settlement Judge services, and it was consistent with the 30 percent drop in total cases resolved 
17

by the OALJ during FY 2016. What remained for the Settlement Judge Program was a smaller 

universe of the most difficult cases to voluntarily resolve. Nevertheless, the program fully 

resolved 34 post-complaint ULP cases, which was only 5 cases short of the 85 percent goal.

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 175 in FY 2016. 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 FY 2016, 100 percent of CADRO negotiability cases 

resulted in full or partial resolution of the underlying dispute and closure of the pending case –

exceeding the 90-percent goal in that category.

Additionally, in FY 2016, the CADRO had goals of offering ADR services in 50 percent of 

“appropriate” arbitration cases, and 75 percent of “appropriate” Authority ULP cases. These 

goals were premised on the notion that the Authority would develop criteria for assessing the 

“appropriateness” of offering ADR in particular arbitration and ULP cases, and that the CADRO 

would then proactively contact parties and offer its services in the specified percentages of each 

type of case. However, the Authority has not yet developed the criteria for assessing what cases 

would be “appropriate” for the CADRO to affirmatively “offer” its services in; those criteria are 

being developed in FY 2017, if staffing and caseload characteristics permit. Therefore, in FY 

2016, the CADRO did not proactively “offer” its services in any arbitration or ULP cases that the 

CADRO had screened for appropriateness. Nevertheless, for arbitration cases, the CADRO 

often receives requests for assistance from parties – or requests from Authority Member offices 

to intervene – in cases that have not been screened for “appropriateness” for affirmatively 

offering ADR services. And CADRO has a separate goal of partial or total resolution in 75 

percent of the arbitration cases in which does provide services. In FY 2016, it exceeded that goal 

by achieving full or partial resolution in 79 percent of those cases. 

Overall, in FY 2016, the CADRO resolved 34 post-complaint ULP cases, 245 disputes over 

proposed or disapproved contract wording in 36 negotiability cases, and 11 arbitrationexceptions cases. Almost all of these cases would have otherwise required decisions by an 

FLRA ALJ, the Authority, or both.

The value of the CADRO’s services goes far beyond the staff hours and the taxpayer dollars that 

it saves. The stakeholders in these cases were able to solve difficult problems beyond their 

pending legal disputes. For example, in one negotiability case concerning nine disputed 

provisions of a Cabinet-level agency’s national term contract, the agency and the union met with 

CADRO staff through a series of face-to-face and remote sessions. They not only resolved all 

negotiability questions in that particular case, but they also reached full agreement on all of the 

parties’ outstanding collective-bargaining matters and signed off on a new labor agreement 
18

covering almost 90,000 employees. This was only one of several national term contracts that the 

CADRO helped parties complete during this fiscal year.

In another noteworthy case, an arbitrator found that an agency had violated the Fair Labor 

Standards Act. The arbitrator awarded unspecified overtime compensation plus liquidated 

damages to a sizable class of claimants, and he directed the parties to conduct scores of 

additional hearings to resolve questions about damages. Each party filed exceptions with the 

Authority while they continued to litigate over damages. Given the parties’ 10-year litigation 

history and the number of arbitration awards and disputed exceptions, it is likely that formal 

adjudication by the Authority would have consumed an enormous amount of FLRA resources, 

and that a litigated resolution of remaining legal disputes would have taken years to 

achieve. Recognizing that litigation was likely to result in a “lose-lose” outcome, the parties 

jointly sought assistance from the CADRO. After careful planning and preparation, CADRO 

staff facilitated the engagement of nine party representatives during two days of in-person 

mediation. That was followed by periodic teleconferences, in lieu of costly travel – held in a 

matter of weeks – that ultimately produced a successful resolution of the entire matter. Agency 

and union representatives were both pleased by a seven-figure settlement that also included 

benefits for each class member.

In another case, an agency and a union still had unresolved collective-bargaining disputes after 

conducting multiple mediation sessions with a federal mediator from the FMCS. The union filed 

a ULP charge concerning the same negotiations and asked the FSIP to resolve the parties’ stalled 

negotiations. The agency then declared 15 union proposals nonnegotiable, so the union filed a 

negotiability petition with the Authority. The union initially rejected the CADRO’s offer of 

ADR services and expressed a desire proceed with litigation. The CADRO team did not give up, 

and the parties eventually agreed to try ADR. When the CADRO team finished, the union 

voluntarily withdrew 14 proposals and asked the Authority to rule on the negotiability of only 

the one remaining proposal.

And, in another case, the national office of a federal-sector labor union contacted the CADRO 

concerning its petition before the FLRA to clarify the bargaining-unit status of about 30 positions 

in a cabinet-level agency. The formal FLRA procedure in such cases is for the agency and the 

union to participate in a hearing before a representative of the OGC, after which the OGC 

renders a determination. The union and the agency in this case jointly expressed a desire to 

instead use CADRO services to collaboratively resolve the status of the 30 disputed 

positions. CADRO staff obtained the concurrence and participation of the OGC, and it 

conducted a 2-day ADR session. At the conclusion, the agency and the union fully agreed on the 

bargaining-unit status of all thirty positions, and the OGC ratified their agreement by issuing an 

amended unit certification. 

Additionally, as noted above, the Authority’s Members sometimes ask the CADRO to invite 

arbitration-exception litigants to engage in ADR. The Authority did so on at least five occasions 

during FY 2016, and the CADRO was able to fully resolve all of those cases. In one such case, a 

union took exception to an arbitration award that both parties were confident would not be 

disturbed by the Authority. The arbitrator dismissed the grievance on procedural 

grounds. Neither party initially requested ADR assistance from the FLRA, but both parties 
19

agreed to use the CADRO’s services after CADRO staff contacted them. As a result of the ADR 

process, the parties voluntarily agreed to a mutually beneficial solution that involved payment of 

almost $50,000 to the grievant, restoration of a significant number of leave hours, reassignment 

of the grievant, payment of attorney fees, and mandatory training for certain managers. The 

parties successfully ended five years of costly litigation in a way that enabled the agency’s 

employees to focus full attention on mission accomplishment, and produced an outcome that 

others in the workplace would perceive as equitable. Formally litigating the exceptions almost 

certainly would not have produced such an outcome.

The parties universally reported that CADRO’s ADR services improve their ability to resolve 

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

relationships. And the 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 more effective and efficient mission performance, as well as quality of 

work life – real evidence that the program works.

 OGC

The OGC continued delivering strong results in FY 2016. The OGC met its strategic 

performance goals for the timely resolution of ULP and representation cases (resolving over 70% 

of all ULP and representation cases within 120 days of the filing date) and continued closing 

cases at increased rates. The OGC closed over 4,100 ULP and 220 representation cases in 

FY 2016. In addition, the OGC conducted 49 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 among all of the FLRA components (handling 

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

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

representation agreements are obvious, and the OGC aggressively pursues them.

In FY 2016, the OGC resolved over 790 ULP cases by voluntary adjustment during the

investigative process. In addition, the OGC resolved 95 percent of meritorious ULP cases and 

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

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

governmental staff and budgetary resources. For example, during FY 2016, an agency and a 

union asked the OGC to assist them in rehabilitating their relationship, which had become 

adversarial and dispute ridden. The OGC met with the parties on-site, engaged the parties in a 

collaborative effort to resolve their outstanding disputes (over 20 cases pending third-party 

review), and provided both knowledge and skills-enhancement training. Through the OGC’s 

assistance, the parties resolved their outstanding disputes and embarked on a new 

labor-management relationship based on cooperation and respect.
20

 FSIP

In FY 2016, the FSIP again exceeded all of its timeliness goals for assisting parties in resolving 

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

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

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

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

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

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

in implementing the proposed change. Negotiations over successor collective-bargaining 

agreements are typically complex in nature, and they involve many contract articles and issues 

over which the parties have been negotiating for considerable lengths of time. By the time the 

bargaining matter reaches the FSIP, the parties have successfully reached agreement on many 

issues, but they are usually entrenched and polarized on the most difficult issues. Assisting the 

parties in reaching solutions that they will live with for years to come takes the unique skill and 

experience of the FSIP Members – all of whom are seasoned, professional mediators and 

arbitrators – who can resolve the outstanding issues quickly and effectively. 

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

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

FY 2016 involved office-space-related matters: how much work space will be allocated to 

employees; office layout; and equipment. As discussed in more detail below, recognizing this 

trend in bargaining-impasse disputes, the FSIP participated in a number of cross-component 

(OGC, Authority, FSIP) and inter-agency (GSA, FMCS) to develop and deliver various trainings 

and webinars on collaborating and negotiating over space-related issues. 

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

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

mediation-arbitration proceedings or informal conferences conducted by FSIP Members. 

Mediation-arbitration is a process that allows the assigned FSIP Member to begin work on the 

case as a neutral mediator seeking to help the parties reach voluntary resolution of their dispute –

meeting with parties, conveying proposals and counterproposals, suggesting compromises, and 

otherwise seeking to bridge the gap between the parties. But if those mediation efforts are not 

successful in achieving a voluntary settlement, then the FSIP Member takes on the mantle of an 

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

that resolves the bargaining impasse. 

This approach 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 55 percent of the time. As a result of this high percentage of voluntary 

settlements, in FY 2016, the FSIP Members imposed contract terms on the parties in only 

12 cases – approximately 10% of the FSIP’s caseload. The remainder of the FSIP’s cases were 
21

voluntarily withdrawn or settled by the parties – achieving the most ideal solution while also 

minimizing the disruption to government operations and costs to taxpayers. 

One particularly challenging case involved the Office of the Comptroller of the Currency (OCC) 

and the National Treasury Employees Union (NTEU). As one of the few federal agencies that 

may negotiate over employee pay, the OCC was unable to reach agreement with NTEU over the 

issues of merit-pay increases and locality-pay increases. The parties each submitted voluminous 

evidence to support their respective positions and, when the parties were not able to voluntarily 

resolve their dispute, the FSIP Member then served as an arbitrator and crafted an Arbitration 

Opinion and Decision. Ultimately, his timely decision found a balance between the parties’

expressed interests while timely resolving the dispute.

Mission Accomplishment – Providing Training and Education across the Federal Government

Consistent with its strategic goals, in FY 2016, the FLRA continued to promote stability in the 

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

and reference resources, including the launch of its redesigned website (www.FLRA.gov), webbased and in-person trainings, and the release and update of substantive guides and manuals. 

With the launch of its redesigned website – including improvements to the site’s appearance, 

organizational structure, and revision of all substantive content – the FLRA now provides a truly 

user-friendly, empowering resource for parties to FLRA cases and the broader federal-sector 

labor-management community. Addressing feedback from both internal and external customers 

that they were often unable to locate the case-related information that they were seeking or that it 

took too many mouse clicks to access, the FLRA developed a more intuitive, user friendly, and 

accessible organizational structure based on the case types that the various program offices 

within the FLRA process. That is, rather than site visitors having to know which office does 

what and at which particular stage during a case, now they have only to search by the case type, 

and they will find descriptions of each office’s unique functions in that context. The new site is 

fully “integrated”: Every FLRA training opportunity, written guide, or manual is now available 

on one centralized page, rather than on office-specific pages. And there is even an online tool 

that allows customers, for the first time, to register for all FLRA training events directly through 

the website. The organization around case types, rather than individual office functions, allows 

users to navigate to the pages they want to access most – and in fewer mouse clicks. 

Additionally, as part of this initiative, the FLRA made electronically available to its customers 

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

history of the Agency’s implementing Statute, decisions of the Foreign Service Labor Relations 

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

Feedback on the new site is universally positive, and the agency has reaped – and will continue 

to reap – dividends from the improvement to the overall customer experience for years to come. 

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

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

and neutrals – in all aspects of its case law and processes. In FY 2016, the FLRA, as a whole, 

provided 280 training, outreach, and facilitation sessions to over 8,400 participants. Over the last 

6 years, the FLRA has provided nearly 1,700 such sessions to nearly 50,000 participants 
22

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

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

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

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

as updated materials for more standard sessions. 

In addition, the Authority sponsored its own training programs, including several, full-day 

sessions of Comprehensive Arbitration Training and Comprehensive Negotiability Training

using, as noted above, updated training materials (including instructional slides, interactive 

exercises, and other handouts). In particular, because negotiability cases have the highest rate of 

procedural dismissals of any type of case filed with the Authority, the negotiability training is 

intended to meet the goals of helping the parties to: comply with the Authority’s regulatory 

procedural requirements (thus reducing 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. Moreover, the 

Authority Members all personally conducted various training sessions on arbitration cases and 

other topics of interest to the federal-sector labor-management community, including in 

conjunction with SFLERP, FDR, the FMCS, and the National Academy of Arbitrators 

(NAA). For example – recognizing that arbitration cases make up the vast majority of cases that 

come before the Authority, and that many arbitrators who primarily hear private-sector cases 

lack significant experience in federal-sector disputes and need training – Member DuBester 

provided targeted training to arbitrators at NAA gatherings in both Atlantic City, New Jersey, 

and New Orleans, Louisiana. In fact, for the New Orleans training, Member DuBester enlisted 

the assistance of two experienced federal-sector arbitrators, who assisted with communicating to 

the arbitrators “in their own language” the differences between private-sector and federal-sector 

arbitration. 

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

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

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

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

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

The OGC continued – and expanded – it efforts to provide timely and effective training in 

support of OMB’s and the GSA’s ongoing “Reduce the Footprint” initiative. A two-day 

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

conducted in July 2015, focused on resolving labor-relations issues associated with the “Reduce 

the Footprint” policy, office moves, and relocations in a cooperative and collaborative manner. 

Because this program was so successful and demand was so great, the OGC collaborated with 

the FMCS and the GSA to design and conduct similar two-day workshops on space management 

and labor relations in Boston, Chicago, Denver, and Los Angeles in FY 2016. These workshops 

– held in the spring of 2016 and made available at no charge to participants – featured:
23

 a tour of a redesigned federal space;

 an overview by GSA of its owned- and leased-space project lifecycle and key 

opportunities for employee engagement and labor-management collaboration;

 a review by the OGC of the statutory duty and scope of bargaining related to office 

moves, as well as opportunities for pre-decisional involvement (PDI) during office 

moves;

 training on collaborative problem-solving skills training and resources by the FMCS to 

support effective PDI and collective bargaining; and

 discussions with agencies and labor organizations that had recently gone through office 

moves about their experiences and lessons learned.

Although registration exceeded capacity for each session, more than 500 individuals participated 

in the workshops. Significantly, 40 percent of the attendees participated in the workshops jointly 

with their union or labor counterparts as “labor-management pairs.” The OGC also assisted in 

developing web-based versions of the training materials, and provided specialized training on 

office moves and relocations to labor and management representatives in a number of agencies. 

The OGC has continued to provide the parties with training on their rights and responsibilities 

under the Statute, delivering over 100 sessions and reaching over 4,300 participants in FY 2016, 

including several sessions on the comprehensive Guidance on Meetings that it issued in FY 

2015. This is a key strategic ADR and education activity as it reduces and prevents disputes 

through active education. The OGC also continued providing the parties with up-to-date and 

topical web-based resources, including revisions to its Representation Case Law Outline. The 

OGC’s web-based resources – particularly the ULP Case Law Outline – are go-to resources for 

the parties, and they have elicited much favorable feedback.

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. In 

this connection, the FLRA is pleased to announce that it captured the #1 small-agency ranking in 

two important indices in the 2016 FEVS – Employee Engagement and New IQ – up from #2 in 

both in 2015. 

The FEVS Engagement Index measures the engagement potential of an agency’s work 

environment, including three sub-factors – Leaders Lead, Supervisors, and Intrinsic Work 

Experience. In addition to scoring #1 overall, the FLRA was also the top scorer with respect to 

Leaders Lead – which reflects employees’ perceptions about their leaders’ integrity and 

behaviors with respect to communication and workforce motivation – and Intrinsic Work 

Experience – which reflects employees’ feelings of motivation and competency related to their 

role in the workplace. The “New IQ” index provides insights into employee perceptions of the 

inclusiveness of their agencies by looking at twenty questions that measure the five “Habits of 

Inclusion” – Fair, Open, Cooperative, Supportive, and Empowering. In addition to scoring #1 

overall, the FLRA was the top scorer in all five habits of inclusion, with scores averaging 

15 percent – and as much as 21 percent – higher than the average scores for all small agencies. 

 
24

In addition, in 2016, the FLRA captured the rank of #3 small agency in the Partnership for Public 

Service’s 2015 Best Places to Work in the Federal Government rankings – up from #5 in 2014. 

With an overall employee-satisfaction score of 85.2 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 and 

#3 in 2015. 

Most notable for 2015 were the FLRA’s rankings for the key workplace categories. 

The FLRA ranked #1 in:

 Effective Leadership, which also included a #1 ranking in three subcategories –

Leadership Fairness, Senior Leaders, and Supervisors

 Pay

 Strategic Management

 Teamwork

 Training and Development

 Performance-Based Rewards and Advancement

0

20

40

60

80

100

2005 2007 2009 2010 2011 2012 2013 2014 2015

Best Places to Work Score
25

And the FLRA ranked #2 in:

 Employee Skills – Misssion Match

 Effective Leadership – Empowerment

 Work-Life Balance

 Support for Diversity

 

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

satisfaction over the last seven 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 2016. 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. In this connection, guided by the FLRA’s 2015 - 2018 Strategic 

Plan – which serves as the framework for sustaining, embedding, and continuing to improve 

upon the FLRA’s impressive employee-engagement scores and the associated mission results –

the FLRA’s Labor-Management Forum continues its work annually to review the FEVS scores 

and develop agency-wide action plans to address areas of focus. As an example, the FLRA 

placed special emphasis in FY 2016 on strengthening supervisory skills and improving the 

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

performance. 

In addition, the agency launched the “FLRA Leadership Initiative” in FY 2016 – an agency-wide 

initiative, conceived and led by employees, in collaboration with the agency’s LaborManagement Forum, and supported by the agency’s Presidential leadership. The initiative serves 

as a companion to the agency’s ongoing employee skills-based training and 

executive-development succession-planning offerings. It seeks to empower non-supervisory 

FLRA employees who are interested in developing their leadership skills to engage with one 

another at monthly meetings through examinations of the agency’s views on effective leadership 

and collaborative study of leadership texts and principles, recognizing that leadership is a learned 

or acquired ability. The FLRA Leadership Initiative is driven by the acknowledgement that a 

great organization is a group of all leaders, each with different responsibilities – and so the 

FLRA is strongest and most effective when it develops leaders at all levels of the agency.

Also during FY 2016, the FLRA implemented a “details initiative,” which enabled employees in 

all components to participate in developmental and workload-driven details to the various 

components and offices within the FLRA, including the OGC, the FSIP, the Authority Chairman 

and Member offices, CIP, the CADRO, and the OALJ. A number of the details permitted 

non-supervisory employees to perform in supervisory roles, which is key to the FLRA’s 

employee-training-and-development and succession-planning efforts, developing strategies to 
26

maximize the transfer of institutional knowledge. In addition, it is a strong example of the 

FLRA’s efforts to develop staff expertise in order to ensure nimble and seamless deployment of 

the FLRA’s human-capital resources to support mission outcomes. 

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

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

impartial manner.

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

cases.

Measure 1.1: The 

percentage of ULP charges 

resolved by the Office of 

the General Counsel 

(OGC) by complaint, 

withdrawal, dismissal, or 

settlement within 120 days 

of filing of the charge.

72% 71% Met

A. 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% 100%/100% Exceeded/ 

Met

B. Measure 1.3: The 

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 180 

days of the complaint 

being issued.

50% 80% Exceeded

C. Measure 1.4: The 

percentage of ULP cases 

decided within 180 days of 

assignment to an Authority 

Member.

75% 89% Exceeded 
27

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

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

Measure 1.1: The 

percentage of ULP charges 

resolved by the OGC by 

complaint, withdrawal, 

dismissal, or settlement 

within 240 days of filing of 

the charge.

95% 95% Met

Measure 2.2: The 

percentage of ULP 

complaints issued by the 

General Counsel decided 

in the OALJ within 365 

days of the complaint 

being issued.

98% 89% Not Met

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

Measure 1.5: The 

percentage of 

representation cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

120 days of the filing of a 

petition.

70% 73% Exceeded

Measure 1.6: The 

percentage of 

representation cases in 

which the Authority issued 

a decision whether to grant 

review within 60 days of 

the filing of an application 

for review.

100% 100% Met
28

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

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

Measure 2.3: The 

percentage of cases 

resolved by the OGC 

through withdrawal, 

election, or issuance of a 

Decision and Order within 

365 days of the filing of a 

petition.

95% 98% Exceeded

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

Measure 1.7: The 

percentage of arbitration 

cases decided within 180 

days of assignment to an 

Authority Member.

75% 79% Exceeded

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

Measure 1.8: The 

percentage of negotiability 

cases decided within 180 

days of assignment to an 

Authority Member.

75% 75% Met

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

Measure 1.9: The 

percentage of 

bargaining-impasse cases,

in which jurisdiction is 

declined, closed within 

140 days of the date filed.

80% 100% Exceeded
29

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

Measure 1.10: The 

percentage of 

bargaining-impasse cases 

voluntarily settled after 

jurisdiction has been 

asserted within 160 days of 

the date filed.

70% 100% Exceeded

Measure 1.11: The 

percentage of 

bargaining-impasse cases 

resolved through a final 

action closed within 200 

days of the date filed.

70% 100% Exceeded

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

providing leadership and guidance through ADR and Education. 

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

activities within the labor-management community.

Measure 1.1: The number 

of training, outreach, and 

facilitation activities 

conducted.

250 280 Exceeded

Measure 1.2: The number 

of participants involved in 

training, outreach, and 

facilitation activities.

6,000 8,440 Exceeded

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

ADR.

Measure 2.1: The 

percentage of ULP cases in 

the OGC in which an offer 

of ADR services is 

accepted by the parties that 

are partially or totally 

resolved.

95% 98% Exceeded

Measure 2.2: 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.

85% 74% Not Met
30

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

Measure 2.3: The 

percentage of 

representation cases in the 

OGC in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved.

95% 100% Exceeded

Measure 2.4: The 

percentage of appropriate 

ULP cases in the Authority 

in which ADR services are 

offered.

75% N/A

Measure 2.5: The 

percentage of ULP cases in 

the Authority in which 

ADR services are provided 

that are partially or totally 

resolved.

85% N/A

Measure 2.6: The 

percentage of appropriate 

arbitration cases in which 

ADR services are offered.

50% N/A

Measure 2.7: The 

percentage of arbitration 

cases in which an offer of 

ADR services is accepted 

by the parties that are 

partially or totally 

resolved.

75% 79% Exceeded

Measure 2.8: The 

percentage of appropriate 

negotiability cases in 

which ADR services are 

offered.

100%100% Met

Measure 2.9: The 

percentage of negotiability 

cases in which ADR 

services are provided that 

are partially or totally 

resolved.

90% 100% Exceeded
31

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

Measure 2.10: The 

percentage of bargainingimpasse cases in which 

parties’ disputes are totally 

resolved voluntarily.

30% 27% Met

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

achieve organizational excellence. 

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

workforce to accomplish the FLRA’s mission. 

Measure 1.1: 

Demonstrate strong 

recruitment and retention 

practices.

Promote a diverse 

applicant pool by 

identifying student and 

professional groups 

aimed at increasing 

diversity; delivering 

targeted information 

sessions semi-annually; 

and sharing 100 percent 

of job announcements 

with affinity groups 

each year.

Deliver a robust 

onboarding program to 

100 percent of new 

hires that strengthens 

knowledge of the 

agency’s programmatic 

and operational offices. 

Foster an inclusive 

environment within the 

agency by including 

diversity and inclusion 

metrics in 100 percent 

of managers’ 

performance plans.

Find a detailed 

description on pages 

52-53. 

Met

Measure 1.2: Maintain 

and grow agency expertise 

through employee 

development.

Provide formal 

opportunities for 

employees to engage 

professionally across 

components (e.g., 

Find a detailed 

description on pages 

53-54.

Met
32

Performance Outcome 

Measures

FY 2016

Target

FY 2016

Actual Result

through participation in 

cross-component task 

forces, detail 

assignments, training 

delivery, and rotational 

opportunities). 

100 percent of new 

managers and 

supervisors complete 

leadership training 

within their first year of 

being promoted.

Maintain sustained 

growth of positive 

responses to the OPM 

FEVS question 

“supervisors in my 

work unit support 

employee 

development.”

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

streamline and enhance organizational operations.

Measure 2.1: Expand the 

use of eFiling. 

FY 2012

50% of cases eFiled. 22% of cases eFiled. Not Met
33

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 2015 and FY 2016. The FLRA does not maintain any cash in commercial bank accounts or 

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

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

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

useful life of the asset. 

Total assets increased to $4.7 million at the end of FY 2016 from $3.9 million at the end of 

FY 2015. The agency did not make any new fixed-asset purchases in FY 2016, while the net 

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

Assets as of September 30, 2016 2015

Fund balance with the Treasury $4,447,303 $3,479,882

General property and equipment 312,839 448,644

Prepaid expenses 0 0

Accounts receivable 35,868 18,964

Total $4,796,010 $3,947,490

Totals may not add due to rounding.

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

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

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

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

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

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

goods and services. Agency liabilities totaled $3.8 million in FY 2015, and $4.2 million in 

FY 2016.
34

Liabilities as of September 30, 2016 2015

Unfunded leave $1,333,158 $1,374,235

FECA liability 1,371,225 1,288,603

Accrued payroll and benefits 1,038,339 588,753

Accounts payable 503,126 572,313

Total $4,245,848 $3,823,904

Totals may not add due to rounding.

The FLRA’s total net position at the end of FY 2016 was $550 thousand, a $426 thousand 

increase from the previous year.

Statement of Net Cost

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

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

in FY 2016 was $26.6 million, a $428 thousand decrease over the agency’s FY 2015 cost of 

operations. In FY 2016, 55 percent of the agency’s direct resources were dedicated to the 

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

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

FY 2016 Financial Obligations by Budget Object Class

Compensation & benefits (78%)

Rent & utilities (10%)

Other contractual services (9%)

Communications (1%)

Supplies & equipment (1%)

Travel & transportation (1%)
35

Statement of Changes in Net Position

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

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

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

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

requirements. Cumulative results remained relatively constant from FY 2015 to FY 2016, 

totaling $2.3 million.

Unexpended appropriations include undelivered orders and unobligated balances. Undelivered 

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

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

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

decrease of $585 thousand in total, unexpended agency appropriations in FY 2016.

Statement on Budgetary Resources

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

during FY 2015 and FY 2016 to carry out the activities of the agency, as well as the status of 

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

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

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

provided by agency employees on the Statute and FLRA mission.

The FLRA had $27.6 million in total budgetary resources available to it in FY 2016. The agency 

incurred obligations of $25.2 million in FY 2016, while recording outlays of $24.9 million. 

Total budgetary resources increased by $30 thousand FY 2016, due primarily from recovery of 

unpaid, prior-year obligations. 
36

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, 2016, were operating 

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

controls.

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

conforms to applicable financial-systems requirements.

Carol Waller Pope

Chairman

November 15, 2016
37

PERFORMANCE GOALS AND RESULTS

STRATEGIC GOAL 1: WE WILL RESOLVE DISPUTES UNDER THE 

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

PERFORMANCE GOAL 1.1: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF UNFAIR-LABOR-PRACTICE CASES.

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

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

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

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

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

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

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

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

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

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

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

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

precedential significance. 

OGC FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 1,453 1,488 1,570 1,425 1,178

Charges filed 4,375 4,659 4,696 4,418 4,345

Total caseload 5,828 6,147 6,266 5,843 5,523

Charges withdrawn/settled 3,377 3,646 3,779 3,662 3,268

Charges dismissed 732 673 809 800 749

Complaints issued 231 258 253 203 173 

Total cases closed 4,340 4,577 4,841 4,665 4,190

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

OALJ FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 72 115 120 105 62

Cases received from the OGC 240 271 260 222 179

Total caseload 312 386 380 327 241

Settlements before decision 177 223 245 187 130

Cases closed by decision 20 43 30 78 51

Total cases closed 197 266 275 265 181

Cases pending, end of year 115 120 105 62 60
38

Authority FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 6 2 12 13 24

Exceptions filed 20 27 27 62 45

Total caseload 26 29 39 75 69

Cases closed procedurally 16 16 18 37 51

Cases closed based on merits 8 1 8 14 9

Total cases closed 24 17 26 51 60

Cases pending, end of year 2 12 13 24 9

Measure 1.1: The percentage of ULP charges resolved by the Office of the General Counsel 

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

charge.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

61% 68% 67% 72% 72% 71%

Data Source: Case Management System (CMS)

Target: Met.

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 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded/Met. 
39

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

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

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual

90% 86% 91% 77%

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

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

FY 2016 *Clarified measure beginning in FY 2016

Target Actual

50% 80%

Data Source: CMS

Target: Exceeded. 

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

Authority Member.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

75% 100% 50% 57% 75% 89%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 2.1: RESOLVE OVERAGE 

UNFAIR-LABOR-PRACTICE CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage. 

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

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

FY 2016 *New measure beginning in FY 2016

Target Actual

95% 95%

Data Source: CMS

Target: Exceeded. 
40

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

OALJ within 365 days of the complaint being issued.*

FY 2016 *New measure beginning in FY 2016

Target Actual

98% 89%

Data Source: CMS

Target: Not Met. The OALJ did not meet this goal in FY 2016 because of its ongoing effort 

to eliminate “overage” cases, which meant that a larger number of significantly older cases 

were processed to completion during the course of FY 2016. With this focus on issuing 

overage cases, it made it difficult for the OALJ to achieve a 98 percent rate. But the OALJ 

ended FY 2016 with only 1 case older than 365 days, which should enable the OALJ to meet 

its FY 2017 goal for this measure. 

PERFORMANCE GOAL 1.2: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF REPRESENTATION CASES.

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

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

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

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

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

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

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

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

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

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

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

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

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

unless an application for review is filed with the Authority.

OGC FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 82 89 89 65 70

Petitions filed 290 253 235 225 265

Total caseload 372 342 324 290 335

Petitions withdrawn 115 106 118 95 112

Cases closed based on merits 168 147 141 125 111

Total cases closed 283 253 259 220 223

Cases pending, end of year 89 89 65 70 112
41

Authority FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 6 0 9 7 2

Applications for review 6 11 13 16 6

Total caseload 12 11 22 23 8

Cases closed procedurally 0 1 2 2 0

Cases closed based on merits 12 1 13 19 8

Total cases closed 12 2 15 21 8

Cases pending, end of year 0 9 7 2 0

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

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

petition.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

62% 60% 66% 72% 70% 73%

Data Source: CMS

Target: Exceeded.

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

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

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Met.
42

PERFORMANCE GOAL 2.2: RESOLVE OVERAGE REPRESENTATION 

CASES IN A TIMELY FASHION.

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

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

sufficiently targeted and do not go significantly overage.

 

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

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

FY 2016 *New measure beginning in FY 2016

Target Actual

95% 98%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.3: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF ARBITRATION CASES.

Either party to grievance arbitration may file with the Authority an exception 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.

Authority FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 66 40 123 90 50

Exceptions filed 107 124 89 99 86

Total caseload 173 164 212 189 136

Cases closed procedurally 24 19 16 15 21

Cases closed based on merits 109 22 106 124 75

Total cases closed 133 41 122 139 96

Cases pending, end of year 40 123 90 50 40
43

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

an Authority Member.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

58% 91% 34% 40% 75% 79%

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 1.4: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF NEGOTIABILITY CASES.

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

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

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

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

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

may petition the Authority to resolve the negotiability dispute. 

Authority FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 15 8 9 17 23

Petitions filed 45 30 43 54 55

Total caseload 60 38 52 71 78

Cases closed procedurally 38 27 29 40 47

Cases closed based on merits 14 2 6 8 4

Total cases closed 52 29 35 48 51

Cases pending, end of year 8 9 17 23 27

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

an Authority Member.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

50% 80% 60% 50% 75% 75%

Data Source: CMS

Target: Met. 
44

PERFORMANCE GOAL 1.5: PRODUCE TIMELY REVIEW AND 

DISPOSITION OF BARGAINING-IMPASSE CASES.

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

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

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

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

proceed to private, binding arbitration only after the FSIP approves the procedure; seek the 

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

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

FSIP FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Cases pending, start of year 53 38 40 28 33

Impasses filed 176 194 134 139 142

Total caseload 229 232 174 167 175

Cases closed 191 192 146 134 134

Cases pending, end of year 38 40 28 33 41

Measure 1.9: The percentage of bargaining-impasse cases, in which jurisdiction is declined,

closed within 140 days of the date filed.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 

Measure 1.10: The percentage of bargaining-impasse cases voluntarily settled after 

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

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded.
45

Measure 1.11: The percentage of bargaining-impasse cases resolved through a final action 

closed within 200 days of the date filed.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 

STRATEGIC GOAL 2: WE WILL PROMOTE STABILITY IN THE 

FEDERAL LABOR-MANAGEMENT COMMUNITY BY PROVIDING 

LEADERSHIP AND GUIDANCE THROUGH ADR AND EDUCATION

Key to the FLRA’s ADR objectives is to offer high-quality outreach and preventive services, as 

well as resources, to promote more effective labor-management relations across the federal 

government. In furtherance of that objective, the FLRA has integrated ADR and consensus 

decision-making into virtually all of its processes, and it has significantly expanded its training, 

outreach, and facilitation activities. ADR is an informal process that allows parties to discuss 

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

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

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

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

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

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

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

The FLRA’s goals include delivering outreach, training, and facilitation services that 

significantly contribute to the mission of the FLRA, and ensuring that training participants 

evaluate FLRA training as highly effective. 

PERFORMANCE GOAL 1.1: PROVIDE TARGETED ACCESS TO 

TRAINING, OUTREACH, AND FACILITATION ACTIVITIES WITHIN 

THE LABOR-MANAGEMENT COMMUNITY.

Measure 1.1: The number of training, outreach, and facilitation activities conducted.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

221 302 225 306 250 280

Data Source: CMS

Target: Exceeded.
46

Measure 1.2: The number of participants involved in training, outreach, and facilitation 

activities.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

8,933 5,976 5,114 8,294 6,000 8,440

Data Source: CMS

Target: Exceeded. 

PERFORMANCE GOAL 2.1: SUCCESSFULLY RESOLVE A 

SIGNIFICANT PORTION OF FLRA CASES THROUGH ADR.

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

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

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

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

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

provides facilitation and training to help labor and management develop collaborative 

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

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

further assist them in resolving labor-management disputes.

Measure 2.1: The percentage of ULP cases in the OGC in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded. 
47

Measure 2.2: 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 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

80% 78% 96% 87% 85% 74%

Data Source: CMS

Target: Not Met. During FY 2016, the OALJ experienced a 42% drop in the number of 

post-complaint ULP cases in which parties requested Settlement-Judge services. This was 

consistent with the 30% drop in total cases resolved by the OALJ during FY 2016. What 

remained for the Settlement-Judge program was a smaller universe of the most difficult cases 

to voluntarily resolve. Nevertheless, the program fully resolved 34 post-complaint ULP cases, 

which was only 5 cases short of the 85% target.

Measure 2.3: 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 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

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

Data Source: CMS

Target: Exceeded.

Measure 2.4: The percentage of appropriate ULP cases in the Authority in which ADR 

services are offered.*

FY 2016 *New measure beginning in FY 2016

Target Actual

75% N/A

Data Source: CMS

Target: The FLRA does not currently identify incoming ULP cases as appropriate for ADR 

services, but it is developing measures for identification of such cases for use in FY 2017, if 

staffing and caseload characteristics permit. 
48

Measure 2.5: The percentage of ULP cases in the Authority in which ADR services are 

provided that are partially or totally resolved.*

FY 2016 *New measure beginning in FY 2016

Target Actual

85% N/A

Data Source: CMS

Target: The FLRA does not currently identify incoming ULP cases as appropriate for ADR 

services, but it is developing measures for identification of such cases for use in FY 2017, if 

staffing and caseload characteristics permit. 

Measure 2.6: The percentage of appropriate arbitration cases in which ADR services are 

offered.*

FY 2016 *New measure beginning in FY 2016

Target Actual

50% N/A

Data Source: CMS

Target: The FLRA does not currently identify incoming arbitration cases as appropriate for 

ADR services, but it is developing measures for identification of such cases for use in FY 

2017, if staffing and caseload characteristics permit. 

Measure 2.5: The percentage of ULP cases in the Authority in which ADR services are 

provided that are partially or totally resolved.*

Measure 2.7: The percentage of arbitration cases in which an offer of ADR services is 

accepted by the parties that are partially or totally resolved.

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Target Actual

N/A 100% 80% 43% 75% 79%

Data Source: CMS

Target: Exceeded. 

Measure 2.8: The percentage of appropriate negotiability cases in which ADR services are 

offered.*

FY 2016 *New measure beginning in FY 2016

Target Actual

100% 100%

Data Source: CMS

Target: Met.
49

Measure 2.9: The percentage of proposals or provisions – in negotiability cases in which an 

offer of ADR services is accepted by the parties – that are partially or totally resolved.

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual

100% 100% 100% 100%

Measure 2.9: The percentage of negotiability cases in which ADR services are provided that 

are partially or totally resolved.*

FY 2016 *New measure beginning in FY 2016

Target Actual

90% 100%

Data Source: CMS

Target: Exceeded.

Measure 2.10: The percentage of bargaining-impasse cases in which an offer of ADR 

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

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Actual Actual

32% 28% 27% 39%

Measure 2.10: The percentage of bargaining-impasse cases in which parties’ disputes are 

totally resolved voluntarily.*

FY 2016 *New measure beginning in FY 2016

Target Actual

30% 27%

Data Source: CMS

Target: Met.

STRATEGIC GOAL 3: WE WILL MANAGE OUR RESOURCES 

EFFECTIVELY AND EFFICIENTLY IN ORDER TO ACHIEVE 

ORGANIZATIONAL EXCELLENCE

The FLRA’s ability to fulfill its core mission under the Statute depends on excellent management 

of the organization and its resources. The organizational-excellence goal emphasizes how the 

agency’s employees, IT infrastructure, and allocation of resources are central to achieving all of 

the strategic goals and objectives outlined in the strategic plan. 

The landscape of the federal workplace and workforce continues to evolve, as do the needs of the 

parties that the FLRA serves. Approximately 40 percent of the FLRA’s workforce has been with 
50

the agency for five years or less, and many of the agency’s most experienced employees are 

currently eligible to retire. In light of these facts, it is crucial for the FLRA to simultaneously 

focus on developing the workforce of the future, while retaining valuable institutional 

knowledge. 

The agency is prepared to meet ever-changing business demands through the innovative use of 

IT to best manage the workload and interact with parties. The FLRA continues to be an effective 

steward of taxpayer dollars, with a renewed focus on maximizing the use of data to inform 

decision making. The agency’s future operational approaches are designed to foster nimble and 

seamless deployment of resources coupled with cost-avoidance strategies to support productive 

labor-management relations across the federal government. And, consistent with the PMA, the 

FLRA has a comprehensive, forward-looking plan to increase quality and value in its 

administrative functions, continue efforts to enhance productivity and achieve cost savings, 

unlock the full potential of its workforce, and build the FLRA’s workplace and workforce for the 

future.

PERFORMANCE GOAL 1: RECRUIT, RETAIN, AND DEVELOP A 

HIGHLY TALENTED, MOTIVATED, AND DIVERSE WORKFORCE TO 

ACCOMPLISH THE FLRA’S MISSION.

Over the last seven and a half years, the FLRA has demonstrated significant and marked 

improvement in its performance and service delivery, and it has continued to rank among the top 

ten small agencies in the Best Places to Work in the Federal Government Survey. These results 

demonstrate the agency’s commitment to empowering and developing a highly engaged and 

effective workforce. The success of FLRA employees is instrumental to its success as an 

agency. It is within this spirit that the FLRA actively manages its human-capital programs.

Measure 1.1: Program managers ensure that the right employees are in the right place to 

achieve results.

FY 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 performancemanagement issues. As part of its strategic workforce planning 

efforts, continued employee development, including attorney 

details to other offices; ADR-facilitator training; and 

leadership-development and other workforce training. 

Established a Student Pathways Policy for student internships and 
51

partnered with the University of Maryland’s Federal Semester 

Program to offer unpaid internships to students.

FY 2014 Actual

Focused on succession planning by increasing targeted attorney 

recruitment. Renewed agreement with the University of 

Maryland for discounted tuition for agency employees. Increased 

agency resources through recruitment, staffing, and placement. 

Utilized the Student Pathways and Summer Externship programs 

to increase resources for casework and administrative initiatives 

throughout the agency. Realigned functions within the agency’s 

Office of the Executive Director to allow for improved 

efficiencies and customer service to agency employees. Worked 

extensively with managers to hold employees accountable for 

performance and development. Updated Attorney Recruitment 

Policy in order to allow managers greater hiring flexibility of the 

agency’s mission-critical occupation and to streamline the 

recruitment process. In collaboration with the Partnership for 

Public Service’s Excellence in Government Fellows program, 

developed and piloted an Employee Onboarding Handbook to 

improve the onboarding process and increase employee 

engagement.

FY 2015 Actual

Implemented a fully automated and integrated electronic system 

for personnel actions. Developed a more robust onboarding 

process through increased use of technology and piloted 

implementation of an Employee Onboarding Handbook. 

Updated certain human-resources policies and procedures. 

Continued to build internal capacity for handling the major 

human-resources functional areas. Position descriptions 

continued to be updated and now allow for greater growth and 

advancement opportunities within the agency, and employees 

readily volunteered for collateral-duty assignments, new 

initiatives, and projects. The agency also renewed its agreement 

with a local university to offer discounted tuition to FLRA 

employees for self-directed study. Improved office customer 

service by improving the quality of advice provided to managers 

and employees. Worked with managers to educate them about 

and increase diversity and inclusion when seeking new agency 

talent. The agency achieved greater diversity in its workforce in 

FY 2015 by increasing strategic and targeted recruitment and 

posting job opportunities with career-planning and placement 

services, local colleges and universities, and professional affinitygroup 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 
52

first-time managers and supervisors, the agency identified a series 

of trainings geared towards developing strategic thinking and 

other critical skills in preparation for executive leadership at the 

FLRA. These training initiatives crossed components, bringing 

together future agency leaders from all offices to enhance their 

skills and encourage collaboration among peers. 

Measure 1.1: Demonstrate strong recruitment and retention practices.

*New measure beginning in FY 2016

FY 2016

Target

Promote a diverse applicant pool by identifying student and 

professional groups aimed at increasing diversity; delivering 

targeted information sessions semi-annually; and sharing 100 

percent of job announcements with affinity groups each year.

Deliver a robust onboarding program to 100 percent of new hires 

that strengthens knowledge of the agency’s programmatic and 

operational offices. 

Foster an inclusive environment within the agency by including 

diversity and inclusion metrics in 100 percent of managers’ 

performance plans.

Actual

In FY 2016, the FLRA strengthened its diversity and inclusion 

recruitment efforts, establishing and implementing a process for 

sharing job announcements with relevant affinity groups. The 

FLRA is continuing to enhance its strategic and targeted 

recruitment and posting job opportunities with career-planning 

and placement services, local colleges and universities, and 

professional affinity-group organizations. The FLRA is also 

using data to help identify and eliminate barriers to recruiting and 

hiring the diverse talent that it needs. 

The FLRA is working to strengthen its operational offices, 

seeking feedback through semi-annual and point-of-service 

surveys. Efforts are underway to revise and implement a robust 

agency-wide onboarding program, which will include briefings 

and continuing educational opportunities for employees to 

strengthen their knowledge of the FLRA.

The FLRA strengthened its recognition and promotion of 

cultural-based celebrations, establishing an employee-driven 

initiative to develop and promote events and activities. The 

FLRA targeted efforts to educate managers about, and increase 

diversity and inclusion when, seeking new agency talent, and it 

continued efforts to train agency staff at all levels on key 

diversity and inclusion issues. And manager performance plans 
53

have been revised to include diversity-and- inclusion-focused 

metrics. Much of the FLRA’s success is reflected in its #1 smallagency ranking in terms of the “New IQ” Index, which provides 

insights into employee perceptions of the inclusiveness of the 

agency by looking at twenty questions that measure the five 

“Habits of Inclusion” – Fair, Open, Cooperative, Supportive, and 

Empowering. The FLRA is the top-ranking small-agency for 

each of the five habits of inclusion, with scores averaging 15 

percent – and as much as 21 percent – higher than the average 

scores for all small agencies. And in the 2015 Best Places to 

Work in the Federal Government rankings, the FLRA was ranked 

#2 out of 28 small agencies in its support for diversity. 

Data Source: FLRA Human Resources Division

Target: Met. 

Measure 1.2: Maintain and grow agency expertise through employee development.

*New measure beginning in FY 2016

FY 2016

Target

Provide formal opportunities for employees to engage 

professionally across components (e.g., through participation in 

cross-component task forces, detail assignments, training delivery, 

and rotational opportunities). 

100 percent of new managers and supervisors complete leadership 

training within their first year of being promoted.

Maintain sustained growth of positive responses to the OPM 

FEVS question “supervisors in my work unit support employee 

development.”

Actual

In FY 2016, the FLRA successfully implemented numerous crosscomponent developmental opportunities for employees, including 

workgroups to encourage innovation, the development and 

delivery of training, and more than ten detail opportunities at all 

levels and offices within the agency. 

The FLRA continued its robust training initiative focusing on 

leadership and skills development. It addressed temporary 

mission needs, maximizing Student Pathways and studentinternship programs, and utilizing developmental details within its 

existing workforce. All new managers and supervisors were 

provided with leadership-training opportunities, and the FLRA’s 

executive-training plans are ongoing and are aimed at developing 

executive-level talent among the FLRA’s existing workforce. 
54

In FY 2016, the FLRA continued its overall success and 

improvement as measured by the FEVS, leaving no doubt that the 

FLRA continues to have a highly engaged workforce that is 

dedicated to the accomplishment of its mission. The results of the 

survey reflect the agency’s continuous growth in overall employee 

satisfaction, as demonstrated by the FLRA ranking as the #1 small 

agency in two important indices – Employee Engagement and 

New IQ – and the increase in 2016 positive ratings in 19 items 

from 2015. In addition, the FLRA has 66 identified strengths 

(items with 65% or higher positive ratings) and no identified 

challenges (items with 35% or higher negative ratings). And the 

agency’s scores are above the government-wide average in 69 out 

of 71 questions. Of particular note is that: 97% of FLRA 

respondents report that they are held accountable for achieving 

results; 96% positively rate the overall quality of the work done 

by their work unit; 96% indicate that they are willing to put in 

extra effort to get a job done; 94% know how their work relates to 

the agency’s goals and priorities; 94% think that the people they 

work with cooperate to get the job done; 94% believe that the 

agency is successful at accomplishing its mission; 93% find that 

the workforce has the job-relevant knowledge and skills necessary 

to accomplish organizational goals; 92% indicate that their 

supervisors regularly communicate with them about their 

performance; and 91% state that employees in their work unit 

share job knowledge with each other. Moreover, the agency 

maintained its sustained growth of positive responses to the 

question “supervisors in my work unit support employee 

development” – increasing by nearly 9.5% over 2015.

Data Source: FLRA Human Resources Division

Target: Met. 

PERFORMANCE GOAL 2: IMPROVE USE OF EXISTING 

TECHNOLOGY AND DEPLOY NEW IT SYSTEMS TO STREAMLINE 

AND ENHANCE ORGANIZATIONAL OPERATIONS.

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

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

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

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

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

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

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

documents. In recognition of this, in FY 2015, the agency developed and launched a plan to 

accomplish the transition to fully electronic case files in 4 agile phases over 4 years. 
55

Measure 2.1: Expand the use of eFiling. 

FY 2012 Actual Completed development of Authority and OGC eFiling capability. 

Began testing eFiling capability with customers.

FY 2013 Actual 10% of cases eFiled.

FY 2014 Actual 12% of cases eFiled.

FY 2015 Actual 17% of cases eFiled.

FY 2016

Target 50% of cases eFiled.

Actual 22% of cases eFiled. 

Data Source: CMS

Target: Not Met. Although the FLRA did not meet its FY 2016 performance target as an 

agency, 44 percent of Authority cases and 100 percent of OALJ cases were filed electronically

in FY 2016.

Measure 2.2: Electronic end-to-end case processing.

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 Actual

Made eFiling available for OALJ cases, resulting in eFiling being 

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

completed full integration of the CMS and eFiling systems, enabling 

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

FY 2016

Target Maintain and enhance the CMS and eFiling systems, and implement 

an agency Document Management System.

Actual

With the full completion of the eFiling objective, the CMS has the 

structure in place to receive and store electronically filed cases. The 

applications have been merged, creating bridges between the two 

systems, to support end-to-end electronic case-processing capability. 

The FLRA neared completion of improving the eFiling user interface, 

which builds upon the existing system, making the eFiling system 

more user-friendly and intuitive. And efforts are underway to 

implement a Document Management System. This effort will span 

into FY 2017, and it is a critical step in accomplishing the FLRA’s 

multi-year electronic-case-file plan.

Data Source: FLRA Information Resources Management Division

Target: Met. 
56

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.
57

PRINCIPAL FINANCIAL STATEMENTS

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The FLRA’s FY 2016 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, 2016, and how the agency’s financial resources were expended to achieve 

performance results. For the twelfth consecutive year, the FLRA has received an unmodified

audit opinion on its financial statements. Along with the unmodified 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 2017 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 15, 2016
58

Federal Labor Relations Authority

BALANCE SHEET

(in dollars)

As of September 30, 2016 and 2015

2016 2015

Assets:

Intragovernmental:

Fund balance with the Treasury (Note 2) $4,447,303 $3,479,882

Accounts receivable (Note 3) 32,833 16,903

Prepaid expenses 0 0

Total intragovernmental 4,480,136 3,496,785

Accounts receivable, net (Note 3) 3,035 2,061

Property, equipment and software, net (Note 4) 312,839 448,644

Total Assets $4,796,010 $3,947,490

Liabilities:

Intragovernmental:

Accounts payable $319,231 $267,290

Accrued payroll and benefits 171,637 118,387

FECA unfunded (Note 5) 227,472 219,897

Total intragovernmental 718,340 605,574

Accounts payable 183,895 305,023

Unfunded leave (Note 5) 1,333,158 1,374,235

FECA actuarial liability (Note 5) 1,143,753 1,068,706

Accrued payroll and benefits 866,703 470,366

Other (Note 6) 55

Total Liabilities $4,245,904 $3,823,904

Net Position:

Unexpended appropriations – other funds $2,906,771 $2,321,812

Cumulative results of operations – other funds (2,356,665) (2,198,226)

Total Net Position $550,106 $123,586

Total Liabilities and Net Position $4,796,010 $3,947,490

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
59

Federal Labor Relations Authority

STATEMENT OF NET COST

(in dollars)

For the Years Ended September 30, 2016 and 2015

2016 2015

Gross Program Costs:

Authority:

Intragovernmental costs $6,105,360 $6,104,434

Public costs 8,510,513 7,952,340

Total program costs 14,615,873 14,056,774

Less: Earned revenue (5,702) (10,537)

Net Program Costs $14,610,171 $14,046,237

Office of the General Counsel:

Intragovernmental costs $2,557,394 $2,451,572

Public costs 8,519,388 9,536,749

Total program costs 11,076,782 11,988,321

Less: Total earned revenue (14,759) (16,477)

Net Program Costs $11,062,023 $11,971,844

Federal Service Impasses Panel:

Intragovernmental costs $188,268 $181,752

Public costs 779,173 868,353

Total program costs 967,441 1,050,105

Less: Total earned revenue 0 (756)

Net Program Costs $967,441 $1,049,349

Total gross program costs $26,660,096 $27,095,200

Less: Total earned revenue (20,461) (27,770)

Net Cost of Operations $26,639,635 $27,067,430

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
60

Federal Labor Relations Authority

STATEMENT OF CHANGES IN NET POSITION

(in dollars)

For the Years Ended September 30, 2016 and 2015

2016 2015

Cumulative Results of Operations:

Beginning balance $(2,198,225) $(2,263,055)

Budgetary financing sources:

Appropriations used 25,274,176 25,917,906

Other financing sources (non-exchange):

Imputed financing 1,207,019 1,215,100

FOIA collections 0 (747)

Total financing sources 26,481,195 27,132,259

Net cost of operations (26,639,635) (27,067,430)

Net change

 

(158,440) 64,829

Cumulative Results of Operations $(2,356,665) $(2,198,226)

Unexpended Appropriations:

Beginning balance $2,321,811 $2,991,329

Budgetary financing sources:

Appropriations received 26,200,000 25,548,000

Other adjustments (340,865) (299,611)

Appropriations used (25,274,175) (25,917,906)

Total budgetary financing sources 584,960 (669,517)

Total Unexpended Appropriations $2,906,771 $2,321,812

Net Position $550,106 $123,586

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
61

Federal Labor Relations Authority

STATEMENT OF BUDGETARY RESOURCES

(in dollars)

For the Years Ended September 30, 2016 and 2015

2016 2015

Budgetary Resources:

Unobligated balance, brought forward, October 1 $1,643,525 $778,379

Recoveries of prior year unpaid obligations 30,471 1,213,338

Other changes in unobligated balance (332,793) (293,768)

Unobligated balance from prior year budget authority, net 1,341,203 1,697,949

Appropriation 26,200,000 25,548,000

Spending authority from offsetting collections 20,413 25,356

Total budgetary resources $27,561,616 $27,271,305

Status of Budgetary Resources:

Obligations incurred (Note 9) $26,247,223 $25,627,780

Unobligated balance, end of year:

Apportioned 47,800 45,212

Unapportioned 1,266,593 1,598,313

Total obligated balance, end of year 1,314,393 1,643,525

Total budgetary resources $27,561,616 $27,271,305

Change in Obligated Balance:

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $1,839,457 $2,850,934

Obligations incurred 26,247,223 25,627,780

Outlays (gross) (24,922,310) (25,425,919)

Recoveries of prior year unpaid obligations (30,471) (1,213,338)

Unpaid obligations, end of year 3,133,899 1,839,457

Uncollected payments:

Uncollected payments, federal sources, brought forward, October 1 (3,100) (2,661)

Change in uncollected payments, federal sources 2,110 (439)

Uncollected payments, federal sources, end of year (990) (3,100)

Memorandum (non-add) entries:

Obligated balance, start of year $1,836,357 $2,848,273

Obligated balance, end of year $3,132,909 $1,836,357

Budget Authority and Outlays, Net:

Budget authority, gross $26,220,413 $25,573,356

Actual offsetting collections (30,596) (30,760)

Change in uncollected payments, federal sources 2,110 (439)

Recoveries of prior year paid obligations (discretionary and mandatory) 8,073 5,843

$26,200,000 $25,548,000

Outlays, gross 24,922,310 25,425,919

Actual offsetting collections (30,596) (30,760)

Outlays, net (total) 24,891,714 25,395,159

Agency Outlays, Net $24,891,714 $25,395,159

The accompanying notes are an integral part of these statements.

Totals may not add due to rounding.
62

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 
63

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 2015 and FY 2016 consist of 
64

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 
65

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 2016, the FLRA matched the 

retirement withholdings with a contribution equal to 13.7 percent of the employee’s taxable 

salary. Due to enactment of the FERS Revised Annuity Employee and Further Revised 

Annuity Employee programs, the agency matched with a contribution equal to 11.9 percent 

for employees hired during and after calendar year 2013.

All employees are eligible to contribute to the TSP. For employees under the FERS, a TSP 

account is automatically established. The FLRA is required to make a mandatory 

contribution of 1 percent of the base salary for each employee under the FERS. The agency 

is required to match the employee’s contribution up to a maximum of 5 percent of his or her 

salary. Matching contributions are not made to the TSP accounts established by CSRS 

employees. The FLRA does not report on its financial statements information pertaining to 

the retirement plans covering its employees. Reporting amounts such as plan assets, 

accumulated plan benefits, and related unfunded liabilities, if any, are the responsibility of 

the OPM.

FERS employees and certain CSRS reinstatement 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 
66

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 2015 was $25,548,000; 

the agency’s annual appropriation for FY 2015 was $26,200,000.

(n) Expired Accounts and Cancelled Authority – Unless otherwise specified by law, annual 

budget authority expires for incurring new obligations at the beginning of the subsequent

fiscal year. The account into which the annual authority is placed is called an expired 

account. For five fiscal years, the expired account is available for expenditure to liquidate 

valid obligations incurred during the unexpired period. Adjustments are allowed to increase 

or decrease valid obligations incurred during the unexpired period that were not previously 

reported. At the end of the fifth expired year, the account is cancelled and any remaining 

money is returned to the Treasury.

(o) 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.
67

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, 2016 2015

General funds $4,448,237 $3,482,175

Other fund types (934) (2,293)

Total $4,447,303 $3,479,882

Status of Fund Balance with the Treasury

As of September 30, 2016 2015

Unobligated balance available $47,800 $45,212

Unobligated balance unavailable 1,266,593 1,598,313

Obligated balance not yet distributed 3,132,910 1,836,357

Total $4,447,303 $3,479,882

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.
68

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, 2016 and 2015.

Accounts Receivable

As of September 30, 2015 2016

Intragovernmental $16,903 $32,833

With the public 2,061 3,035

Total $18,964 $35,868

NOTE 4: Property, Equipment, and Software – Net

Schedule of Property, Equipment, and Software as of September 30, 2016 (In Dollars):

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment $ 455,885 $ 195,402 $ 260,483 

Office Equipment 202,231 198,634 3,597 

Office Furniture 453,695 404,936 48,759 

Total $ 1,111,811 $ 798,972 $ 312,839 

Schedule of Property, Equipment, and Software as of September 30, 2015 (In Dollars):

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Computer Equipment $ 455,885 $ 104,226 $ 351,659

Office Equipment 202,231 184,252 17,979

Office Furniture 453,695 374,689 79,006 

Total $ 1,111,811 $ 663,167 $ 448,644 
69

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. 

 2016 2015

Intragovernmental

 Unfunded FECA $ 227,472 $ 219,897 

Total Intragovernmental Liabilities $ 227,472 $ 219,897 

With the Public

 Unfunded Leave $ 1,333,158 $ 1,374,235 

 Actuarial FECA 1,143,753 1,068,706 

Total Public Liabilities $ 2,476,911 $ 2,442,941 

Total Liabilities $ 2,704,383 $ 2,662,838 

NOTE 6: Other Liabilities

Other liabilities as of September 30, 2016 consisted of the following (In Dollars):

 Current Non-Current 2016 Total

With the Public

 Advances and Prepayments $ 55 $ - $ 55 

Total Other Liabilities $ 55 $ - $ 55 

There were no other liabilities for the year ended September 30, 2015.
70

NOTE 7: Leases

The FLRA has operating leases for rental of office space and equipment. As a Federal agency, 

the FLRA is not liable for any lease terms beyond one year. 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 48 months beginning on May 15, 2016. 

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 120 months beginning on 

August 1, 2011. 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. 

NOTE 8: Commitments and Contingencies

The FLRA is, at times, a party in various administrative proceedings, legal actions, and claims 

brought by or against the agency. In the opinion of FLRA management, the ultimate resolution 

of any proceedings, actions, and claims will not materially affect the financial position or the 

results of operations of the FLRA. The agency examined its FY 2011 obligations prior to 

cancellation, and believes that it does not have any outstanding that will require future resources 

to liquidate.
71

NOTE 9: 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 10: Apportionment Categories of Obligations Incurred

All obligations incurred are characterized as Category A, quarterly apportioned, on the Statement 

of Budgetary Resources. Obligations incurred and reported in the Statement of Budgetary 

Resources in fiscal years 2016 and 2015 consisted of the following:

 2016 2015

Direct Obligations, Category A $ 26,226,706 $ 25,602,425 

Reimbursable Obligations, Category A 20,517 25,355 

Total Obligations Incurred $ 26,247,223 $ 25,627,780 

NOTE 11: Undelivered Orders at the End of the Period

The amount of budgetary resources obligated for undelivered orders at the end of September 30, 

2016 and 2015 was $1,592,434 and $678,391, respectively.

NOTE 12: Explanation of Differences between the Statement of Budgetary 

Resources and the Budget of the U.S. Government

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting, calls for explanation of material differences 

between amounts reported in the Statement of Budgetary Resources and the actual balances 

published in the Budget of the U.S. Government (the President’s Budget). The FY 2017 

President’s Budget, with actual amounts for FY 2015, has been reconciled to the Statement of 

Budgetary Resources. The FY 2018 President’s Budget, with actual amounts for FY 2016, will 

not be published until February 2017.
72

NOTE 13: Incidental Custodial Collections

Custodial collections are reflected in Fund Balance with Treasury during the year. While these 

collections are considered custodial, they are neither primary to the mission of the agency nor 

material to the overall financial statements. FLRA's custodial collections are $4,787 for the year 

ended September 30, 2016. There were no custodial collections for the year ended September 

30, 2015. Custodial collections are transferred to the Treasury General Fund on September 30 

and are not reflected in the financial statements of the Agency.

NOTE 14: Reconciliation of Net Cost of Operations to Budget

Details of the relationship between budgetary resources obligated and the net costs of operations 

for the fiscal years ended September 30, 2016 and 2015 are shown in the following table.
73
74
75
76

OTHER ACCOMPANYING INFORMATION

SUMMARY OF FINANCIAL STATEMENT AUDIT

Audit Opinion: Unmodified

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: Unmodified

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: Unmodified

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
77

UNITED STATES OF AMERICA

FEDERAL LABOR RELATIONS AUTHORITY

WASHINGTON, D.C. 20424-0001

INSPECTOR GENERAL

MEMORANDUM

DATE: November 2, 2016

TO: Carol Waller Pope

Chairman

Ernest DuBester

Member

Patrick Pizzella

Member

FROM: Dana Rooney

Inspector General

SUBJECT: Management and Performance Challenges Facing the FLRA

This memorandum transmits the major management and performance challenges facing the 

Federal Labor Relations Authority (FLRA) as identified by the Office of Inspector General 

(OIG).

The FLRA is required to prepare an annual “Performance and Accountability Report” (PAR) 

which must be submitted to the President, the Office of Management and Budget, and to 

appropriate committees and subcommittees of Congress. The Reports Consolidation Act of 

20001requires the FLRA, OIG to provide the agency head with a statement summarizing the 

most serious management and performance challenges facing the agency and briefly assess the 

agency’s progress in addressing those challenges. This OIG statement should be included in the 

PAR.

Accordingly, the attached document describes the most serious management and performance 

challenges facing the FLRA along with a brief assessment of management’s progress in 

addressing them. These management challenges include: (1) Information Technology Security 

Needs Continuing Improvement; (2) Proper Handling of Records; and (3) Closure of Open 

Recommendations Outstanding for More Than 1 Year.

The first two challenges were also noted in the agency’s Fiscal Year 2015 PAR. FLRA has 

made substantial progress in addressing these challenges as further described in the attachment. 

 

1

Public Law 106-531
78

Additionally, management has taken sufficient action to effectively address the “building and 

sustaining a high-performing workforce” therefore; we removed this challenge from this year’s 

report. However, in this year’s report we added a new challenge for FLRA concerning closure 

of open recommendations outstanding for more than 1 year. 

We provided our draft challenges report to FLRA and considered all comments received. In 

closing, we would like to express appreciation to you and the Executive Director for continuing 

to support our work and your commitment to excellence at FLRA. We look forward to working 

collaboratively with FLRA to address these management challenges.

Attachment

cc: Sarah Whittle Spooner, Executive Director

 Gregory Mister, Director Budget and Finance 
79

 Office of Inspector General

Federal Labor Relations Authority

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 to monitor potential Information Technology (IT) risks, 

threats, vulnerabilities, mitigation and implementation plans. The IT security challenge also 

includes additional concerns associated with a prior Office of Inspector General (OIG) review 

of FLRA’s privacy and data security policies, procedures and practices. 

The OIG has identified repeated problems in IT. For the last several years, the annual Federal 

Information Security Management Act of 2002 (FISMA) evaluations performed by the OIG 

identified weaknesses. The FLRA provided corrective action plans and completed some actions 

in response to the OIG recommendations. However, the FLRA needs to effectively address IT 

deficiencies and implement planned actions to correct system weaknesses. 

Information Security

Since the passage of the FISMA, the OIG has annually reviewed the FLRA’s information 

security program. The FISMA requires the FLRA OIG to prepare a report summarizing the 

review findings and submit it to the Office of Management and Budget (OMB). The November 

2015 FISMA reported 11 recommendations. Five were new recommendations included in the 

Fiscal Year (FY) 2015 FISMA Report and six prior year recommendations. Three of the 

remaining prior year FISMA recommendations were reported in FY 2014, two were reported in 

FY 2011 and one from 2009. 

Progress in Addressing the Challenge

FLRA has taken corrective actions to resolve the IT related deficiencies reported in its Plan of 

Action and Milestones developed in response to the FY 2015 FISMA Report. We noted the 

FLRA entered into an agreement for contractor support to remediate four of the findings. The 

October 2016 FISMA report included a follow up of all prior year recommendations. There 

were a total of 11 prior year recommendations and 5 are still open: three from the FY 2015 

FISMA evaluation and two from the FY 2014 FISMA. There were no new findings reported in 

the FY 2016 FISMA evaluation.

FLRA has taken steps to improve the information security program having developed plans for 

mitigating the deficiencies by March 2017. 
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Privacy Program

The Consolidated Appropriations Act of 2005 requires agencies to: (1) Assign a Chief Privacy 

Officer responsible for identifying and safeguarding personally identifiable information (PII). 

(2) An independent, third-party review of agency PII use and privacy and data protection 

policies and procedures. In June 2015, the OIG performed a Privacy and Data Protection 

review testing 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 analyze the IT systems without current PIAs to 

determine if PIAs are required, and, if so, post them 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.

Progress in Addressing the Challenge

In April 2016, we tested 27 different areas in FLRA’s privacy program, this year’s Privacy audit 

resulted in no new findings. We also assessed FLRA’s implementation of the 6 open 

recommendations from FY 2015 resulting in the closure of 5 recommendations, leaving one 

open. The FLRA external Privacy expert trained staff on Privacy related matters. Additionally, 

FLRA wrote, approved, and posted an updated PIA. Lastly, the FLRA significantly updated its 

website and currently complies with Privacy related requirements. The FLRA has corrected the 

FY 2016 Privacy Program Report “privacy and data related” deficiencies reported in its Plan of 

Action and Milestones and will resolve the remaining findings in 2017. The impact of this 

effort will be assessed during the FY 2017 Privacy Program review. 

What Needs to Be Done

Overall, the FLRA needs to effectively address information security and Privacy Program 

deficiencies continue to provide mitigating controls for vulnerabilities, and implement planned 

actions to correct weaknesses.

Key OIG Resources

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2016 (ER-17-01) October 27, 

2016 (Non-Public)
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 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9, 

2015 (Non-Public)

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2014 (ER-15-01), November 14, 

2014 (Non-Public)

 OIG Report, Review of the Federal Labor Relations Authority’s Fiscal Year 2016 Privacy 

Program (AR-16-04), May 26, 2016

 OIG Report, Review of the Federal Labor Relations Authority’s Fiscal Year 2015 Privacy 

Program (AR-15-04), June 18, 2015

Proper Handling of Records (hard copy and electronic) 

Management has made progress addressing this challenge mentioned in our report dated

October 22, 2015. Throughout 2016, the FLRA continued its efforts to use technology to 

enhance operational efficiencies by automating, paper-based, manually intensive processes. 

This includes developing a case management system infrastructure supporting electronic files to 

properly handle agency case files and records. This is an excellent step forward using 

technology to enhance operational efficiencies. However, system automation is one part of a 

comprehensive approach to address the challenge of records management. Industry practices 

dictate that along with implementing new technology, it is imperative that a complete oversight 

or governance process be established to include documenting agency policies, procedures and 

processes that address all hard copy and electronic records proper handling. Although new 

automated systems offer increased capabilities, they also present new internal (management) 

control challenges. The FLRA needs to ensure various roles (e.g., system administrator); 

related authorities and capabilities are properly assigned, documented, managed and monitored. 

Such written documentation should be maintained as this need becomes increasingly critical as 

additional functionality and enhancements are added to the system. Further, although, certain 

types of records do not have legal retention requirements; the policies, processes and procedures 

should, clearly and specifically, instruct staff on the proper handling. Further, management 

should periodically verify that such policies are being followed. 

Progress in Addressing the Challenge

The FLRA has made steady progress towards accomplishing its multi-year plan goal to 

implement full electronic file – consistent OMB requirements – in 2019. In 2015, the FLRA 

achieved a noteworthy accomplishment when it leveraged the Small Agency Council network 

by partnering with management that was responsible for standing up the robust records 
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management program at Pension Benefit Guaranty Corporation to conduct a comprehensive 

assessment and roadmap for improving the FLRA’s records management program. This longterm effort will 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. Further, this effort will ensure various roles (e.g., system 

administrator) and related authorities and capabilities are properly assigned, documented, 

managed and monitored, and that written documentation is kept up-to-date. FLRA recognizes 

that a necessary component of the implementation of electronic case files is the development of 

policies, processes and procedures that provide staff with clear guidance for handling records 

and ensure compliance with agency requirements.

What Needs to Be Done

FLRA management should continue working its multi-year agenda to integrate its E-filing and 

other automated systems.

Closure of Open Recommendations Outstanding for More Than 1 Year

The Inspector General Act of 1978, as amended, requires explanations for all audit reports with 

recommendations open for more than one year. These outstanding recommendations are also 

reported to the FLRA and Congress in the OIG’s Semiannual Reports to Congress. Since the 

September 30, 2016 OIG Semiannual Report, the FLRA has closed a significant number of 

outstanding recommendations which was a culmination of a long-term effort that represents a 

significant accomplishment. At this time, however, the FLRA has eight open recommendations 

outstanding for more than 1 year, with two dating back to FY 2014 and one from FY 2011. 

Accordingly, a new challenge identified for this year concerns the closure of open 

recommendations outstanding for more than one year. As described in connection with the 

FLRA FISMA evaluation and Privacy program evaluations, the FLRA made substantial 

progress in addressing open recommendations from prior years. Of particular note, the FLRA 

closed 6 of the 11 open FISMA recommendations in FY 2016. And of the six closed 

recommendations, one recommendation had been open since FY 2009 and two since FY 2011. 

Closing these recommendations, which had been open for many years, was significant. The 

FLRA also closed one of the three open recommendations from FY 2014. Despite these 

accomplishments, the FLRA continues to have five FISMA recommendations open; two of 

which are from FY 2014 and three from FY 2015. In addition, the FLRA has one outstanding 

Privacy Program audit open recommendation from FY 2015.
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Although the FLRA obtained an unmodified (clean) opinion on all financial statements in 

FY 2015, the FY 2015 independent auditor’s management letter reported two recommendations. 

One new recommendation was included in the FY 2015 management letter and the other 

identified in the FY 2011 management letter persisted into FY 2015. 

It is critical that the FLRA continue its progress in resolving open findings that are outstanding 

from prior audits, and design appropriate corrective action plans to implement procedures and 

address deficiencies, where appropriate. FLRA management should also continuously monitor 

these plans to ensure timely audit resolution.

Key OIG Resources

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2016 (ER-17-01) October 27, 

2016 (Non-Public)

 OIG Report, Review of the Federal Labor Relations Authority’s Fiscal Year 2016 Privacy 

Program (AR-16-04), May 26, 2016 

 OIG Report Management Letter for Fiscal Year 2015 Audit of the Federal Labor Relations 

Authority (AR-16-02), December 14, 2015

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2015 (ER-16-01), November 9, 

2015 (Non-Public)

 OIG Report, Review of the Federal Labor Relations Authority’s Fiscal Year 2015 Privacy 

Program (AR-15-04), June 18, 2015

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2014 (ER-15-01), November 14, 

2014 (Non-Public)

 OIG Report, Management Letter for Fiscal Year 2011 Audit of the Federal Labor Relations 

Authority Financial Statements (AR-12-02) December 28, 2011 

 OIG Report, Evaluation of the Federal Labor Relations Authority Compliance with the 

Federal Information Security Management Act Fiscal Year 2011 (ER-12-01), November 14, 

2011 (Non-Public)

 OIG Report, 2009 Federal Labor Relations Authority Inspector General Federal Information 

Security Management Act Evaluation (Non-Public)
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MANAGEMENT’S RESPONSE

Since FY 2009, the FLRA has engaged in a thorough review of agency programs and 

performance. Efforts have been focused on budget-related matters and the development of 

management initiatives to improve the FLRA’s performance of its statutory mission. In 

addition to program performance, the review has included information-technology (IT) 

investments, human resources (HR), case processing, and financial management. As a result, in 

recent years, the FLRA has made substantial progress in addressing and resolving deficiencies 

and challenges identified by the Inspector General, including resolving one of the three 

management challenges identified in FY 2015. The remaining challenges identified by the 

Inspector General include IT security, proper handling of records, and closure of open 

recommendations outstanding for more than one year – a new finding in FY 2016.

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 it is committed to establishing and maintaining a program that is fully Federal Information 

Security Management Act (FISMA) compliant. There are specific agency plans of action in 

place to ensure such compliance. And, to date, the FLRA was successful in correcting six of the 

11 identified vulnerabilities by adhering to those plans. Also in FY 2016, the FLRA continued 

to implement its plan that is expected to close the remaining outstanding IT-security findings

during FY 2017. In addition, in FY 2016, the agency resolved five of the six findings identified 

in the Privacy and Data Protection review, and plans are underway to resolve the single 

remaining finding in early 2017. 

The FLRA is proud to report that it has no new IT-security findings in FY 2016. We view this 

as a significant accomplishment and a strong indicator of the FLRA’s commitment to 

addressing IT-security matters in a timely and comprehensive manner. And the FLRA is 

pleased that the planning efforts and actions taken over the last year have had 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 an electronic case-management system (CMS) 

infrastructure that supports electronic files and that will further agency efforts to properly 

handle agency case files and records. The FLRA has made steady progress in accomplishing its 

multi-year plan, with a goal of implementing a fully 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 ensure compliance 

with agency requirements. 
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In FY 2016, leveraging the Small Agency Council (SAC) network, the FLRA partnered with 

management that was responsible for standing up the robust records-management program at 

the Pension Benefit Guaranty Corporation (PBGC) to conduct a comprehensive assessment and 

roadmap for improving the FLRA’s records-management program. This long-term effort will 

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. This effort will also ensure various roles (e.g., system administrator) and 

related authorities and capabilities are properly assigned, documented, managed, and monitored, 

and that written documentation is kept up to date. Management will also work 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 the proper handling, and that 

the FLRA is periodically verifying that such policies are being followed.

With respect to the timely closure of audit-report recommendations, the FLRA is pleased to 

report that in FY 2016, it made significant progress in closing audit recommendations 

outstanding for more than one year. Most significantly, with respect to IT security, the FLRA 

closed the agency’s three oldest recommendations, with one dating back to FY 2009, and two to 

FY 2011. The FLRA also closed one of the three open recommendations from FY 2014. In 

addition, the FLRA closed five Privacy Program audit findings, leaving one FY 2014 finding 

remaining. And with respect to findings identified by the financial auditors in their annual 

management letter, in FY 2016, the FLRA closed four of the five prior years’ findings –

including at least two of which had been open for more than one year – leaving one finding 

open that dated back to FY 2011. 

The FLRA has clear and comprehensive corrective-action plans in place to address and close 

the four recommendations that are outstanding for more than one year, as well as all other open 

audit recommendations in FY 2017. These plans include, among other things, monthly 

audit-recommendation-review meetings with the FLRA Executive Director and all responsible 

managers and staff to track and monitor progress on resolving open findings. We are confident 

that implementation of management’s corrective-action plans, coupled with close continuous 

monitoring of its efforts, will ensure that open audit recommendations will be timely closed by

the FLRA in FY 2017 and beyond. 

IMPROPER PAYMENTS ELIMINATION AND RECOVERY

The Improper Payments Information Act of 2002, as amended by the Improper Payments 

Elimination and Recovery Act of 2010 (IPERA), requires agencies to annually report 

information on improper payments. The FLRA has reviewed all of its programs and determined 

that none are susceptible to significant improper payment. The IPERA also requires agencies to 

conduct payment-recapture audits for each program that expends $1 million or more annually, if 

conducting such audits would be cost-effective. Based on the criteria set forth in Appendix C of 

OMB Circular A-123, the agency has also determined that it would not be cost-effective to 

establish a recovery-audit program for its programs that expend more than $1 million. 

Recoveries are not expected to be greater than the costs incurred to identify any overpayments.
FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, N.W.

Washington, DC 20424

www.flra.gov