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FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2022 

Performance and Accountability Report (PAR)
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FEDERAL MEDIATION AND CONCILIATION SERVICE

FISCAL YEAR 2022 

Performance and Accountability Report (PAR)

Table of Contents

Message from the Acting Director.............................................................................................1 

Management Discussion and Analysis(Unaudited).................................................................. 2 

Background and Mission:.................................................................................................... 2

Alternative Dispute Resolution Services to Government ....................................................... 2

Collective Bargaining Mediation .......................................................................................... 4

Grievance Mediation........................................................................................................... 5

Relationship-Development and Training .............................................................................. 5

International Training and Exchange ................................................................................... 6

Arbitration Services ............................................................................................................ 6

Organizational Structure (Unaudited)...................................................................................... 7 

Strategic and Performance-Planning Framework (Unaudited).................................................. 8 

Administration Priority Goal #1 : Meet the health, welfare, and economic challenges of 

the COVID-19 Pandemic..................................................................................................... 9

Administration Priority Goal #2 : Advance equity................................................................ 10

Administration Priority Goal #3 : Address climate change................................................... 11

Strategic Goal #1: Efficiently provide top-tier conflict management and prevention 

services ........................................................................................................................... 12

Strategic Goal #2 : Increase agencywide application and effectiveness of evidencebased decision making ..................................................................................................... 13

Strategic Goal #3 : Improve internal and external communications ..................................... 14

Strategic Goal #4 : Prioritize lifelong learning in support of agency mission and 

individual professional development .................................................................................. 15

Analysis of Financial Statements (Unaudited)........................................................................ 16 

Sources and Uses of Funds.............................................................................................. 16

Table of Key Measures..................................................................................................... 16

Audit Results.................................................................................................................... 17

Financial Statement Highlights.......................................................................................... 17

Analysis of the Balance Sheet........................................................................................... 17

Analysis of the Statement of Net Cost ............................................................................... 17
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Analysis of the Statement of Changes in Net Position ........................................................ 18

Analysis of the Statement of Budgetary Resources............................................................ 18

Systems, Controls, and Legal Compliance(Unaudited).......................................................... 20 

Financial Information............................................................................................................ 26
Transmittal Message from the Acting Director 

I am pleased to submit the Federal Mediation and Conciliation 

Service’s (FMCS) 2022 Performance Accountability Report (PAR). 

Overall, 2022 was a year of change and adaptation for FMCS and its 

dedicated employees. This year’s PAR aligns with FMCS’s most recent 

strategic plan and details activities that FMCS has undertaken in support

of the administration’s priority goals and its own goals. As a result of the 

recent adoption of the plan, FMCS has limited quantitative information

for 2022 for determining the agency’s results in meeting these 

requirements. Future PARs will include additional data and information 

demonstrating the results of the agency’s activities.

The COVID-19 pandemic created numerous challenges and opportunities for the agency. 

During 2022, FMCS continued to utilize all available information technology resources to meet 

the needs of those we serve. I am proud to note that FMCS has been able to continue to meet its 

mission since the start of the pandemic in March 2020. For example, during this time, FMCS has 

conducted over 80,000 virtual meetings. FMCS also reviewed it use of all leased office space and 

determined that, due to the rise of productivity as a result of remote work, it could eliminate

unnecessary space.

FMCS employees continuously and superbly met the challenges presented by the pandemic and 

continue to provide high-quality services and support to the labor-management community. FMCS 

follows all Safer Federal Workforce and CDC guidelines for in-person meetings across the Nation. 

When in-person services are not possible, the agency relies on virtual meeting platform tools to 

provide services to its customers. The paramount priority remains the health and welfare of the 

FMCS employees and all those who we serve. As the nation and FMCS transition to normality, 

FMCS continues to support the labor-management community with our expertise in resolving 

workplace conflicts. 

As the Acting Director, I certify that no material weaknesses were found in the design or 

operation of our internal controls and financial systems, as discussed beginning on page 17 of this 

report. I have also made every effort to verify the accuracy and completeness of the performance 

data presented in this report.

Gregory T. Goldstein

Acting Director

November 15, 2022
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Management Discussion and Analysis

Background and Mission:

Congress established FMCS in 1947 through the Labor Management Relations Act (TaftHartley) amendments to the National Labor Relations Act (NLRA) as an independent agency 

whose mission is “to assist parties to labor disputes in industries affecting commerce to settle such 

disputes through conciliation and mediation.” Subsequent acts of Congress and presidential orders 

have expanded the FMCS role to provide mediation services to the federal sector and alternative 

dispute resolution (ADR) programs to federal agencies, as well as promote and establish labormanagement partnerships.

In support of its mission, FMCS commits to:

• Promoting the development of sound and stable labor-management relationships;

• Preventing or minimizing work stoppages by assisting labor and management to settle

their disputes through mediation;

• Advocating collective bargaining, mediation, and voluntary arbitration as the preferred

process for settling disputes between employer and representatives of employees;

• Developing the art, science, and practice of conflict resolution; and,

• Fostering the establishment and maintenance of constructive joint processes to improve

labor-management relationships, employment security, and organizational

effectiveness.

For over 75 years, FMCS has provided services that embrace this mission and demonstrate its 

commitment to preventing or minimizing interruptions of the free flow of commerce growing out 

of labor disputes. As labor-management relationships have evolved over time, so, too, has the 

nature of FMCS work within collective bargaining relationships. FMCS today provides a range 

of services to labor and management, such as relationship-development training and training in 

interest-based bargaining, to help the parties deal effectively with disputes that may arise between 

them without resorting to work stoppages. The following section describes FMCS’s 

comprehensive package of core programs and services.

Alternative Dispute Resolution Services to Government

The federal government has long recognized that ADR provides a much less expensive and 

time-consuming alternative to litigation in the federal courts. FMCS provides ADR services to 

federal agencies on a cost-reimbursable basis to reduce litigation costs and promote better 

government decision-making. Services offered by FMCS include:

• Workplace and Employment Disputes. FMCS mediates workplace and employment

disputes for federal agencies. The majority of these disputes concern claims of
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employment discrimination (EEO), other types of personnel issues and workplace 

conflicts. FMCS accepts individual and multi-party conflicts for mediation.

• Disputes Involving Administrative Programs. FMCS also mediates disputes

between federal agencies and their “regulated public,” such as whistleblower

complaints or disputes involving contracts, grants, licenses, enforcement, and

administrative programs.

• Training Persons in the Skills and Procedures Employed in Alternative Means of

Dispute Resolution. FMCS provides training in conflict resolution to aid in the

effective use of alternative dispute resolution throughout the federal government. To

that end, FMCS offers both live and web-based training on a variety of topics relating

to conflict dynamics.

• Facilitation During Decision-Making. Particularly in times of limited budgets,

FMCS facilitation services help agencies achieve cost-savings when decision-making

is delegated to a committee, task force, or other type of group. FMCS facilitation

services, including consultation, convening, training, and the actual facilitation, help

groups accomplish their tasks within specified time frames. Notably, these services

can be provided both onsite and online, another valuable time and cost saving feature

of FMCS facilitation services.

• Agency Cooperation & Collaboration. FMCS facilitates intra-agency or multiple

agency groups tasked with developing a strategic plan or identified objective involving

complex matters. Interest-based problem-solving and collaboration skills are essential

to achieving successful outcomes.

• Public Policy Dialogues. Similarly, FMCS facilitates public policy discussions

involving Federal agencies and public-private stakeholders such as those conducted

under the Federal Advisory Committee Act (FACA). These multi-party stakeholder

discussions benefit from the assistance of a skilled and neutral facilitator experienced

in synthesizing discussion points and interests, as well as establishing and overseeing

meeting structures and processes. Training and coaching are also available for

participants.

• Negotiated Rulemaking. Negotiated rulemaking is a process in which a government

agency invites persons and groups potentially impacted by a proposed rule to

participate in its drafting. Interested parties who might otherwise oppose or challenge

the rule are given the chance to participate in its formulation, thus reducing postissuance challenges.

In addition to its traditional ADR services, FMCS offers extensive conflict management 

and prevention services when an agency requires more comprehensive solutions. Whereas 

traditional ADR processes, such as mediation and facilitation, focus on specific 

transactional issues, FMCS helps agencies run more effectively and efficiently through 

full-spectrum, systemic approaches. Systemic approaches include:
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• Climate Assessment. FMCS convenes and facilitates focus groups and individual

meetings to assess and define the scope of workplace conflict. This enables FMCS

conflict management professionals to better understand the structural, relationship,

values, interests, and interpersonal conflicts that may be impacting the workplace, and

make more effective recommendations and approaches.

• Leadership alignment and development. FMCS provides leadership development

training and 360 assessments to ensure that leaders are working optimally both

individually and as a team. Individually, when leaders do not understand their

individual impact on the workforce, tremendous interpersonal conflicts can arise within

an organization. When leaders operate out of alignment with each other they send

conflicting across the organization, which can lead to numerous conflicts system wide.

• Conflict Resolution Coaching. FMCS provides leadership, conflict, individual, peer,

and cohort coaching to reduce negative impacts of workplace conflict and enhance

positive and resilient work culture/environments.

• Whole systems engagement and large group facilitated sessions. Engaging

workplaces as a system, and involving whole teams and groups increases the chance

that the intervention will have a positive long term, systemic resolution rather than the

band aid approach, which focus on individual conflicts and transactional based

outcomes.

• Culture change and change management initiatives. Many agencies suffer from

low engagement scores and employees feel distanced and disconnected with each other,

customers, and leadership. FMCS’s efforts in this arena focus on creating healthy,

resilient, and inclusionary work cultures that lead to better productivity and

engagement with the workforce.

• Dispute Systems Design. FMCS offers a broad array of services around designing

comprehensive systems for dispute resolution that are specifically and tailored to the

needs of the organization, parties, and nature of the conflict.

Collective Bargaining Mediation

Through collective bargaining mediation, FMCS helps avert or minimize the cost of work 

stoppages to the U.S. economy. As part of its core work, FMCS mediates collective bargaining 

negotiations for initial contract negotiations—which take place between an employer and a newly 

certified or recognized union representing its employees—and for negotiations for successor 

collective bargaining agreements. FMCS provides mediation services to the private sector, and 

also to the public sector, including Federal agencies, and state and local governments.

During mediation, the mediator’s task is to help the parties identify alternative solutions and 

compromises, encourage settlement where appropriate, control the critical timing of offers, and 

persuade the parties to honestly discuss their differences.
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In 2022, FMCS received approximately 18,000 notices of expiring collective bargaining 

agreements. Some 210 of the known expiring contracts involve bargaining units of 1,000 members 

or more and represent a total of more than 1 million members. Many of these expiring agreements 

are in key private sector industries, such as the construction and mechanical trades, arts and 

entertainment, groceries, telecommunications, and health care.

In 2022, FMCS mediators were actively involved in nearly 2,900 collective bargaining contract 

negotiations in every major industry throughout the United States.

Grievance Mediation

Grievance mediation involves the use of a neutral party to mediate disputes that may arise over 

the terms and conditions of a collective bargaining agreement. FMCS mediators provide this 

service to the private and public sectors with the goal of preventing unresolved contract 

interpretation issues from becoming contentious issues in future contract negotiations. 

Lengthening contract terms increase the importance of resolving contentious issues arising during 

the term of a contract. In 2022, FMCS mediated 1,200 grievance mediation cases and helped the 

parties reach agreement in 900 of these (75 percent).

Relationship-Development and Training

Preventing conflict that may arise during the term of a collective bargaining agreement is 

another important goal of FMCS. Experience demonstrates the enormous value of training parties 

in the tools and techniques of collaboration and joint problem-solving well in advance of any 

contract expiration. The Agency’s relationship-building training programs are designed to 

improve labor-management relationships by helping labor and management to develop 

collaborative problem-solving approaches. Use of these programs better enables the parties to 

jointly respond to rapidly changing business and economic conditions during the term of the 

contract and also make future mediation efforts more effective.

In the private and federal sectors, FMCS will continue to offer a wide range of programs 

designed to prevent workplace disputes and improve labor-management relationships. These 

programs help the parties develop collaborative, problem-solving approaches for managing 

conflict. Developed through decades of hands-on dispute resolution experience, the FMCS labor 

relations model encourages an ongoing, joint problem-solving approach characterized by open 

communication, respect, trust, and transparency.

In 2022, FMCS mediators conducted more than 1,600 training programs with collective 

bargaining partners.

Core training programs consist of:

• Labor-Management Work-Site Committee Training. Helps labor-management

committees extend to the work-site level, forming work-site committees, group

interactions, and learning techniques to manage change.

• Interest Based Problem Solving Training. Gives the parties a structured

methodology to agree on a common definition of a problem, share their respective
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underlying interests with respect to the problem and then jointly brainstorm solutions 

that can be justified and supported publicly using agreed upon criteria.

• Relationship by Objectives. Improves the parties’ relationship with one another,

particularly where the relationship has worsened after a contentious representation

election, initial contract negotiation, or strike.

• Committee Effectiveness Training. Assists the parties in developing joint labormanagement committees designed to bring the parties into regular communication.

• Partners in Change. Explores the organization’s current culture, identifies

perceptions within the organization, creates a vision for the future, and designs systems

that effectuate change.

• Contract Administration/Steward-Supervisor Training. Trains front-line

supervisors and shop stewards on their roles and responsibilities in contract

administration, grievance processing, the arbitration procedure, and interpersonal

communications for building cooperative relationships.

• Collective Bargaining and Mediation Training. Trains the parties on effective

negotiation and communication skills.

International Training and Exchange

Beyond the nation’s borders, FMCS plays an important role in promoting conflict resolution 

around the world. FMCS delivers its international training programs using cost-reimbursable 

funds, largely through agreements with other government agencies, such as the US Agency for 

International Development (USAID), the Department of Labor’s Bureau of International Labor 

Affairs (ILAB), and foreign governments and international organizations.

FMCS international work is a small but integral, part of its services. FMCS helps establish the 

labor dispute resolution institutions that are essential to the smooth functioning of free market 

economies. These programs are also a knowledge-sharing experience: FMCS mediators gain 

familiarity with complex issues affecting the global economy and, as a result, are more effective 

in resolving domestic labor-management disputes with international implications.

Arbitration Services

National labor policy favors arbitration over litigation for settling contractual disputes. The 

FMCS arbitration service maintains a roster of approximately 1,000 independent arbitrators who 

are qualified to hear and decide disputes over the interpretation or application of collective 

bargaining agreements. Upon request from the parties, FMCS furnishes a list of names from which 

they may choose an arbitrator to hear their case and render a decision. FMCS administers its 

established policies and procedures on arbitration, which also incorporate the Code of Professional 

Responsibility for Arbitrators of Labor-Management Disputes, to which FMCS is a signatory.
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Organizational Structure 

Director

(Acting)

Equal Employment 

Opportunity

General

Counsel

Headquarters

Budget

Human

Resources 

Client Services

Procurement and 

Operational Support

Finance 

Information

Technology

Conflict Management & 

Prevention/ Int’l

Education

Policy and Strategy 

Region 06 Ombuds

Region 05

Region 02

Region 04

Region 03

Region 01

Field Operations 

Field Operations -

Regional Field Administration Field Operations -National
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Strategic and Performance-Planning Framework

FMCS undertook a comprehensive review of its operations, staffing, work processes, 

resource allocations, and performance when it revised its most recent strategic plan. During this 

process, FMCS established strategies and goals designed to maximize its customer service 

delivery. Throughout 2022, FMCS has engaged in a continuous assessment of performance and 

other data to ensure that it is accomplishing its mission and that it is promoting innovation 

throughout the agency. 

FMCS’s 2022 performance-planning framework is based on the agency’s 2022-2026 

strategic plan, and 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 FMCS’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, FMCS 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 the 

collection of monthly metrics and distributed on SharePoint. The agency examines the data 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. 
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Administration Priority Goal #1 : Meet the health, welfare, and economic challenges of 

the COVID-19 Pandemic

Alleviate the health, welfare, and economic challenges of the pandemic through labor peace at health care 

facilities and improved workplace conditions that support public health and workforce flexibilities. 

Objective:

• To combat COVID-19 by minimizing labor disruptions in health care facilities.

Action:

• Early intervention activities, particularly in initial contracts, the health care industry, and large

and high-impact bargaining units.

Strategies:

• Encourage labor and management leaders to employ mediation in their contract negotiations.

• Pursue FMCS joint problem-solving initiatives during the term of the agreement.

• Increase outreach to medical facilities and groups and support labor management partnerships.

Expected Outputs:

• Increased mediator case activity rates.

• Increased proportion of cases with meetings held prior to contract expiration date.

Discussion:

FMCS provides several important activities which support this goal. Specifically, FMCS prioritizes 

collective bargaining in industries and facilities that COVID impacts. A work stoppage in a heath care 

facility, for example, may reduce treatment options or the levels of care available within a community. 

Beyond direct health care, new occupational safety protocols, employer sick leave policies, and remote 

work rules all affect the nation’s COVID response.

Employers and unions that negotiate these new issues may require additional assistance from FMCS. 

FMCS provided conflict management, prevention, and resolution services in the health care industry and 

with employers and union that bargained return to work procedures. In 2022, the nation had 87 health care 

work stoppages and FMCS assisted in many of these and more that reached resolution without work 

disruptions from Massachusetts to Washington state.
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Administration Priority Goal #2 : Advance equity

Deliver excellent, equitable, and secure services that enhance the customers’ experience and reduce or 

eliminate barriers to equitable access to FMCS services.

Objective:

• To become a model program as defined by the Equal Employment Opportunity Commission

(EEOC).

Action:

• Implement and continuously assess the FMCS equity plan and the FMCS diversity, equity,

inclusion and accessibility (DEIA) strategic plan, with a focus on people, culture, and mission.

Strategies:

• Strengthen feedback loops for employee input through listening sessions, focus groups, facilitated

dialogue, and cultural climate surveys.

• Create a diversity and inclusion council to include special emphasis program managers and

employee resource group(s).

• Support socially and economically disadvantaged businesses.

• Develop an outreach and recruitment strategic plan to include underserved communities.

• Assess current mechanisms for the inclusion and selection of arbitrators.

Expected Outputs:

• Expanded program service areas, including underserved communities.

• Establish a partnership agreement with the Small Business Administration (SBA) Contracting

Assistance Program.

• Increased set-asides to socially and economically disadvantaged businesses.

• Increased employee engagement and a culturally competent, inclusive, and diverse workforce

representative of the customers served.

• Enhanced employee competencies and opportunities for professional development.

Discussion:

FMCS strives to create an atmosphere of mutual trust and inclusion and respect for the dignity and 

uniqueness of all individuals. Within FMCS, implementing the FMCS equity and DEIA strategic plans will 

allow it to leverage the diversity of its workforce to create a more inclusive, equitable, and sustainable work 

environment; promote continuous growth and development; and encourage individual responsibility and 

teamwork for excellence and leadership.

Among its customers, FMCS facilitated a negotiated rulemaking for the Department of Education’s 

student loan repayment program, and mediated a highly complex, high-stakes public policy negotiation 

over the Puget Sound Chinook Salmon Resource Management Plan. This plan included 17 tribal nations, 

various tribal organizations, Washington State agencies and federal agencies.
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Administration Priority Goal #3 : Address climate change

FMCS contributes to the administration’s climate change goals through increasing the use of technology to 

provide virtual services, reducing travel, and reducing the agency’s footprint in leased spaces.

Objective:

• To increase virtual services throughout the agency.

Action:

• Increase the use of technology to support agency operations.

• Review all leased spaces and determine if space is necessary.

• Increase telework/remote work.

Strategies:

• Encourage labor and management leaders to utilize virtual services during mediation in their

contract negotiations.

• Train managers in the benefits of remote/telework options for appropriate employees.

• Increase information technology training for staff to better utilize agency technology resources.

• Disseminate information to labor/management communities to build their understanding virtual

capabilities.

Expected Outputs:

• Increased rates of providing virtual services by FMCS staff.

• Increased rates of telework/remote work throughout the agency.

• Increased information technology trainings available to FMCS staff.

Discussion:

The COVID-19 pandemic necessitated modifications to the way the Agency historically operated.

FMCS was fully operational since the beginning of the COVID-19 pandemic by utilizing information 

technology capabilities to conduct all aspects of the agency’s mission. The use of virtual services has 

fundamentally changed operations and has led to positive outcomes supporting efficiencies and other goals 

such as addressing climate change by reducing travel expenses and eliminating unnecessary leased spaces.
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Strategic Goal #1: Efficiently provide top-tier conflict management and prevention 

services

FMCS continues to meet its statutory mission by providing top-tier conflict management and prevention 

services in support of sound and stable labor relations and the free flow of commerce. 

Objective:

• To efficiently provide a full spectrum of high-quality conflict management and prevention

services that effectively meet client needs.

Action:

• Maximize agency resources in delivering services, with a particular focus on national impact

cases.

• Support the President’s Task Force on Worker Organizing and Empowerment.

• Eliminate geographic territories and promote teaming at all levels of the organization.

Strategies:

• Require virtual provision of grievance and employment mediation services and encourage virtual

provision of trainings and collective bargaining mediations where possible.

• Maximize subject matter expertise and travel efficiencies in case assignments.

• Establish a pilot program to increase national coordination around high-profile cases.

• Update mediator performance work plans to capture a broader range of services and expected

behaviors, including facilitation, proficiency with technology, and professional judgement.

Expected Outputs:

• Increased engagements with units requesting card check services and newly represented groups.

• Increased involvement and acceptability in cases of note (i.e., national, high-profile, etc.).

Discussion:

FMCS supported the President’s Task Force on Worker Organizing and Empowerment by:

assigning all initial contract cases without regard to bargaining size, providing targeted outreach and 

training efforts to support initial contract negotiations, and developing a comprehensive card check 

program. FMCS also collaborated with other agencies, including the NLRB, FLRA, DOL (OLMS), SBA, 

and OPM through detail assignments, joint project work, internal trainings, and coordination on national 

initiatives.
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Strategic Goal #2 : Increase agencywide application and effectiveness of evidence-based 

decision making

Objective:

• To use relevant evidence and data to make staffing and resource allocation decisions.

Actions:

• Review agency data systems and identify areas for improvement.

• Evaluate data literacy within FMCS and enhance employees’ information awareness.

• Provide training to FMCS leaders, supervisors, and appropriate staff concerning data operations.

Strategy:

• Sensitize employees to the harmful effects for poor or inconsistent information.

• Incentivize employees to provide high-quality data and self-correct inaccurate information.

• Distribute electronic client experience surveys upon the closing of collective bargaining

mediation, grievance mediation, and relationship development training cases.

Expected Output:

• Enhanced decision-making capabilities.

• Increased amount of high-quality data availability to decision makers, stakeholders, and

customers.

• Improved understanding of and customer satisfaction with FMCS services.

Discussion: 

FMCS has, for years, struggled to develop, organize, and manage high quality data sets in a 

way that enables meaningful use of the volumes of data it collects. This includes data from the F-7 

Notice to Mediation Services, corresponding client records, and service delivery data. The agency-wide reorganization and the removal of artificial geographical boundaries and management silos will enable 

FMCS to record and treat data in a similar fashion nationwide and ensure that management initiatives 

are implemented throughout the organization. 

In 2022, FMCS received approval from OMB to survey each customer upon the conclusion of 

its mediation work. FMCS worked to integrate and test this data collection with existing information 

systems during the remainder of the year. 

With the new data, FMCS will in future years be able to better: understand the factors that 

contribute to customer satisfaction with its services; inform the employee productivity and success 

model, which will in turn allow employees to learn from each other to improve public service delivery; 

and to build staffing models that better situate new hires, minimize travel, and thus increase the time spent 

on direct service delivery. 
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Strategic Goal #3 : Improve internal and external communications

Communicate more effectively with our key audiences, including employees, the media, Congress, and the 

public. 

Objectives:

• To build trust between the agency and key audiences/stakeholders.

• To educate customers, the media, and the public on the agency mission, its work, and available

services.

Actions:

• Serve as a central information distribution point for informing FMCS employees of public

reporting on key industrial relations issues, national and local news, periodic job requirements,

and important information.

• Build and execute a comprehensive legislative affairs program

Strategies:

• Facilitate media interactions and interviews with FMCS subject matter experts.

• Execute a legislative affairs program to keep Congress fully informed of all FMCS public service

delivery.

• Use various platforms to share information outside the agency, such as GovDelivery, social

media, and news wire distribution services.

Expected Outputs:

• Decreased number of extemporaneous and decentralized communications to FMCS employees.

• Greater understanding of FMCS’s mission and services among Congress, client groups, federal

agencies, the public, and other stakeholders.

Discussion:

FMCS currently promotes its services through: a suite of brochures, booklets, handouts, and 

PowerPoint presentations for distribution to prospective customers, stakeholders, and key audiences; 

broadcast emails and electronic messaging; social media channels; regional conferences; education and 

outreach by mediators to labor and management; and speeches and personal outreach by the Director and 

FMCS senior managers to influential gatherings and key influencers.

In late 2022, FMCS entered into a contract with a media company to develop a comprehensive series 

of short informational videos and public service announcements. These are designed to describe different 

aspects of FMCS and its work through a variety of electronic media. FMCS intends for these videos to 

represent the core of a rejuvenated outreach and educational effort. 
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Strategic Goal #4 : Prioritize lifelong learning in support of agency mission and individual 

professional development

Objectives:

• To encourage employees to pursue craft mastery and ongoing professional development.

Action:

• Provide ongoing incumbent professional development opportunities.

• Regularly update core professional development training modules and activities.

Strategy:

• Hold all employees to a high standard of subject matter expertise and innovative service delivery

methods and techniques.

• Promote a culture of giving and receiving constructive criticism and feedback.

Expected Outputs:

• Increased professional engagement in communities of practice.

• Greater awareness and use of FMCS services within federal sector.

Discussion:

FMCS offered multiple opportunities for employees to increase theirskills and knowledge over the last 

fiscal year. The Virtual Academy is the online education venue that housed and offered a variety of 

trainings, seminars and roundtables on issues. These programs are open for the enrollment of any FMCS 

staff person. Additionally in support of our values, EO 14035, and growing requests from our customer 

base FMCS developed nine additional core trainings touching on important areas of Diversity, Equity and 

Inclusion. These trainings strengthen our repertoire and further our reputation as a leader in all areas of 

conflict management and prevention. These training modules were rolled out over several months utilizing 

a train-the-trainer methodology. In further support of growing capacity in this area of expertise regular 

round table discussions were held, and are ongoing, to build and solidify a community of practice around 

DEIA training for customers.

Every two years the agency holds a highly attended National Labor-Management Conference. While 

the intent is on educating the customers, employees are also encouraged to attend to strengthen the breadth 

and depth of their knowledge around all areas of labor-management relationships. This past year 80 percent

of FMCS employees registered. 

In 2022, FMCS unveiled a new program to start the process of ensuring top-notch conflict management 

professionals. A cohort of 15 mediators was assembled as the very first group of commissioners trained to 

be full spectrum conflict-management practitioners. The first cohort will conclude in Spring of 2023 and 

start the process of teaching forward to other colleagues. 
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Analysis of Financial Statements

Financial Performance Overview 

As of September 30, 2022, the financial condition of the FMCS was sound, with adequate funds 

to meet planned programs and satisfactory controls in place to provide reasonable assurance 

that the FMCS’s obligations did not exceed budget authority. The financial statements are 

prepared to report the financial position, financial condition, and results of operations of the 

FMCS, consistent with the requirements of 31 U.S.C. § 3515(b). The statements are prepared 

from records of the FMCS in accordance with federal GAAP and the formats prescribed by 

OMB Circular No. A-136, Financial Reporting Requirements. Reports used to monitor and 

control budgetary resources are prepared from the same records. Users of the statements are 

advised that the statements are for a component of the U.S. Government. 

Sources and Uses of Funds 

The FMCS receives funding from three sources: 

- Congressionally appropriated funds for salaries and expenses and other necessary expenses 

for running the Agency;

- Reimbursable agreements of No-Year funds, mostly from other Federal agencies; and

- Direct No-Year funds from arbitration panel listing fees and arbitrator dues.

The FMCS’s 2022 appropriation from Congress was $50,058,000, an increase of $1.4 million over 

2021. Appropriations are the primary source of financial resources for the Agency. Other 

budgetary resources available in 2022 included approximately $1.8 million in reimbursable funds 

earned by the FMCS mediators from labor-management grievance mediation, training, facilitation, 

and negotiated rule-making work, and approximately $600,000 in direct funds from arbitration 

panel listing fees and arbitrator dues. The total budgetary resources for 2022 were $ 63,341,473. 

The FMCS made obligations of $49.3 million in 2022. 

Table of Key Measures

The table below compares the increase/decrease by significant account for the fiscal years ended 

September 30, 2022, and September 30, 2021: 
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Audit Results

FMCS received an unmodified audit opinion on its FY 2022 financial statements. This marks the 

22nd consecutive year that FMCS has received a “clean” audit opinion.

Financial Statement Highlights

FMCS's financial statements summarize the financial position and financial activities of the 

agency. The audit report, financial statements, and the notes to the financial statements appear in 

the Financial Section of this report, on page 26. 

Analysis of the Balance Sheet

The FMCS’s assets totaled $18.1 million, as of September 30, 2022. The changes in key asset 

line items are as follows:

The Fund Balance with Treasury consists of appropriated funds and other funds maintained 

at the U.S. Treasury until final disposition. Fund Balance with Treasury represented the 

FMCS's largest asset of $17 million as of September 30, 2022. The balance increased $3.1 

million from the prior year, due to the FMCS receiving an increase of $1.4 million in its 

FY 2022 appropriation and an increase of $1.2 million in reimbursable work, arbitration 

panel listing fees, and arbitrator dues

Amounts in Dollars FY2022 FY2021 $ %

Total Financing Sources 47,914,119 48,306,667 (392,548) -0.81%

 Less: Net Cost (46,706,738) (47,385,464) 678,726 -1.43%

Net Change of

Cumulative Results of 1,207,381 921,203 286,178 31.07%

Operations

Assets:

Fund Balance with Treasury 17,131,688 13,972,608 3,159,080 22.61%

Accounts Receivable 231,789 289,434 (57,645) -19.92%

Property, Plant, and Equipment 797,652 300,152 497,500 165.75%

Total Assets 18,161,129 14,562,194 3,598,935 24.71%

Liabilities:

Intragovernmental 628,495 626,998 1,497 0.24%

Accounts Payable 672,661 223,578 449,083 200.86%

Federal Employee and Veteran Benefits 3,889,359 4,378,563 (489,204) -11.17%

Other 1,541,413 1,464,453 76,960 5.26%

Total Liabilities 6,731,928 6,693,592 38,336 0.57%

Net Position (Assets-Liabilities) 11,429,201 7,868,602 3,560,599 45.25%

FEDERAL MEDIATION AND CONCILIATION SERVICE

TABLE OF KEY MEASURES

 Increase/Decrease
18

Accounts Receivable (AR) is primarily made up of amounts due from federal government 

departments and other agencies. The FMCS acquires services from other federal agencies 

through interagency agreements. Historical experience has indicated that the majority of

the receivables are collectible. There are no material uncollectible accounts as of 

September 30, 2022 and 2021. 

Property, Plant and Equipment (PPE), Net, consists of the net value of the FMCS’s 

furniture and equipment, computer software, construction in progress, and software in 

development. Property, Plant and Equipment, Net, had a balance of $798,000 as of 

September 30, 2022, an increase of $500,000 over FY 2021 figures. Capitalized assets 

account for $1.2 million of PPE at acquisition cost, and the asset lives are for 5 years.

The FMCS’s liabilities were $6.7 million as of September 30, 2022 and September 30, 

2021. The total liabilities remained relatively consistent from FY 2021 to FY 2022. 

Analysis of the Statement of Net Cost

The Statement of Net Cost (SNC) represents the FMCS’s gross costs less revenue earned. The 

FMCS's net cost of operations was $46.7 million for the fiscal year ended September 30, 2022, a 

decrease of nearly $700,000 from the prior year.

Analysis of the Statement of Changes in Net Position

The Statement of Changes in Net Position reports the change in net position during the reporting 

period. The difference between total assets and total liabilities is net position. Net position is 

affected by changes in its two components: Unexpended Appropriations and Cumulative Results 

of Operations (CRO).

The FMCS’s net position was $11.4 million as of September 30, 2022, representing an increase of 

$3.5 million from the prior year related to CRO and unexpended appropriations transactions. The 

CRO balance increased by $1.2 million. Additionally, there was a $2.3 million increase in 

unexpended appropriations resulting from an increase in FMCS's FY 2022 appropriation and the 

beginning balance brought forward from FY 2021. 

Analysis of the Statement of Budgetary Resources

The Statement of Budgetary Resources (SBR) shows the sources of budgetary resources available 

and the status of the budgetary resources at the end of the period. It represents the relationship 

between budget authority and budget outlays and reconciles total obligations with total outlays. 

This statement also includes unobligated balances from prior years’ budget authority.

For the fiscal year ended September 30, 2022, the FMCS had available budgetary resources of 

$63.3 million, comprised of the FY 2022 appropriation of $50 million, prior years’ unobligated 

balances of $8.8 million, and spending authority from offsetting collections of $4.5 million. 
19

The status of budgetary resources was $63.3 million, compared to $58.6 million 

the prior year. The $4.7 million increase is mainly attributable to the increase in 

the total new obligations and upward adjustments and the total unobligated 

balance at the end of the year. 

The net outlays totaled $45.5 million, which was comparable to the prior year. 
20

Systems, Controls, and Legal Compliance 

This section of the report provides information on the FMCS's compliance with the following:

• Federal Managers’ Financial Integrity Act of 1982 (FMFIA) (Pub. L. No. 97-255)

• OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management

(ERM) and Internal Control, Revised 2006

• Federal Financial Management Improvement Act of 1996 (FFMIA) (Pub. L. No. 104-208)

• Improper Payments Information Act of 2002 (IPIA) (Pub. L. No. 107-300)

• Prompt Payment Act of 1982 (PPA) (Pub. L. No. 97-177)

• Debt Collection Improvement Act of 1996 (Pub. L. No. 104-134)

• Digital Accountability and Transparency Act of 2014 (DATA Act) (Pub. L. No. 113-101)

• Federal Information Security Modernization Act of 2014 (FISMA 2014) (Pub. L. No. 113-

283)

Federal Managers’ Financial Integrity Act of 1982 (FMFIA) (Pub. L. No. 97-255)

The FMFIA mandates that agencies establish controls to reasonably assure that: (i) 

obligations and costs comply with applicable laws; (ii) assets are safeguarded against waste, loss, 

unauthorized use, or misappropriation; and (iii) revenues and expenditures are properly recorded 

and accounted for. The Act encompasses program, operational, and administrative areas, as well 

as accounting and financial management. The FMFIA requires the Director to provide an annual 

assurance statement on the adequacy of management controls and conformance of financial 

systems with government-wide standards.

Based on its annual assessment of the adequacy of its internal controls, FMCS is able to

provide an unmodified statement of assurance that its internal controls and financial management 

systems met the objectives of FMFIA as of September 30, 2022.

In making this statement, FMCS relies upon independent and self-assessments of its 

internal controls. Independent assessments in support of this statement include the results of the 

annual Federal Employee Viewpoint Survey (FEVS) and the annual Agency financial statement 

audit. FMCS also generates a summary assessment of its internal management controls through 

an annual manager/supervisor questionnaire. Finally, the efforts of the Agency Chief Operating 

Officer (COO), Chief Information Officer (CIO), Chief Human Capitol Officer (CHCO), General 

Counsel, and Head of Contracting Activity (HCA), and others, similarly provide specific 

assurances in areas that lie outside the scope of the FEVS, annual audit, or annual management 

questionnaire.

It is worth noting that FMCS does not have an Inspector General. In mid-2020 FMCS 

inaugurated an Ombuds office. Instead, FMCS relies upon its Ombuds, General Counsel, Budget 
21

Director, and Finance Director to assist with oversight and enforcement activities. Given the small 

size of the Agency and the strength of its internal controls, the FMCS believes that this 

arrangement is more than reasonable and adequate for meeting the Agency’s obligations under 

FMFIA.

Responsibilities under OMB Circular A-123 (Revised 2006)

As detailed in OMB Circular A-123, FMCS is responsible for establishing and maintaining 

internal control to achieve the objectives of effective and efficient operations, reliable financial 

reporting, and compliance with applicable laws and regulations. FMCS must consistently apply 

the internal control standards to meet each of the internal control objectives and to assess internal 

control effectiveness. Annually, management must provide assurances on internal control in its 

Performance and Accountability Report, including a separate assurance on internal control over 

financial reporting, along with a report on identified material weaknesses and corrective actions.

Circular A-123 also requires agencies and individual Federal managers to take systematic 

and proactive measures to (i) develop and implement appropriate, cost-effective internal control 

for results-oriented management; (ii) assess the adequacy of internal control in Federal programs 

and operations; (iii) separately assess and document internal control over financial reporting; (iv) 

identify needed improvements; (v) take corresponding corrective action; and (vi) report annually 

on internal control through management assurance statements.

Summary of 2022 Internal Control Review

The FMCS internal controls system is a continuous built-in component of operations, effected by 

people, that provides reasonable assurance, that the agency’s objectives will be achieved, ensures 

that FMCS conducts activities efficiently and effectively, reports reliable information about 

operations, and complies with applicable laws and regulations. Additionally, the FMCS’s internal 

control system provides reasonable assurance that:

• Employees have access to the information they need in order to make sound decisions;

• Obligations and costs are in compliance with applicable laws;

• Assets are safeguarded against waste, loss, and unauthorized use of appropriations;

• Revenues and expenditures applicable to Agency operations are properly recorded and

accounted for, permitting accurate accounts, reliable financial reports, and full

accountability for assets; and,

• Programs are efficiently and effectively carried out in accordance with applicable laws and

management policy.

During FY 2022, the FMCS used a managers’ questionnaire to review the effectiveness of its 

internal control systems in accordance with FMFIA and GAO requirements, OMB guidance, and 

general best practices. The FMCS substantially revised its questionnaire in 2017 to include ERMrelated elements and issues and to create a consistent and simplified analysis framework.
22

The 2022 FMFIA management questionnaire contained 28 questions in a “Yes”-”No” format 

or on a scale of “Not at all Effective”, “Slightly Effective”, “Moderately Effective”, “Very 

Effective” or “Extremely Effective.”

In all, 21 FMCS managers and supervisors (100 percent of managers/supervisors determined 

eligible by the General Counsel’s office) responded to the questionnaire. Questionnaire results are 

tabulated below. For questions of effectiveness, a higher average score indicates that respondents 

felt the FMCS was more effective in the area of concern. Yes/No question results are expressed 

as a percentage which indicates the percentage of “Yes” answers.

While the overall result of the questionnaire indicates that the FMCS is very to extremely 

effective in most areas, responses to several questions suggest room for improvement. One 

comment concerning written standard operating procedures indicated that they are being rewritten 

for certain subject areas. The response concerning financial resources to support goals may be 

indicative of possible limited availability of federal funding.

The FMCS questionnaire also provided respondents with an opportunity to expand upon 

provided answers or to address other areas of concern. Nine respondents provided additional 

comments. One respondent commented that the FMCS needs to provide more information 

regarding emergency contingency planning. A repeated concern was for better practices in 

preventing workplace discrimination and ethics violations.
23

Results of FMFIA Manager Questionnaire, 2022

FMCS evaluated its management control systems for operations for the fiscal year ended 

September 30, 2022. The result is that the FMCS can provide reasonable assurance that internal 

controls over operations were operating effectively as of September 30, 2022.

Federal Financial Management Improvement Act of 1996 (FFMIA) (Pub. L. No. 104-208)

The FFMIA requires federal agencies to implement and maintain systems that substantially 

comply with: (i) federal financial management system requirements; (ii) applicable federal 

accounting standards; and (iii) the U.S. Government Standard General Ledger at the transaction 

Mission and Employee Performance 2022

Organizational Clarity Maintained 100%

Performance Goals Written 100%

Supervisor Reviews Performance Goals 100%

Subordinates Review Performance Goals 100%

Goals Support FMCS Mission 5.0

Operational Issues

Business Processes Written 90%

Subordinates Review Business Processes 90%

Business Processes Support Operations 4.2

Subordinates Follow Business Processes 4.5

Standard Operating Procedures Written 71%

Subordinates Follow SOPs 4.2

Operations Sustainable During Extended Absence 3.7

Position Description Matched to Job Duties 4.1

Subordinates Perform Duties 4.6

Subordinates Effectuate Improvements 4.1

Financial Resources Support Goals 3.9

Material Resources Support Goals 4.2

Compliance Issues

Procedures Protect Against Fraud & Abuse 4.2

Capital Assets Safeguarded 4.4

Improper Travel Reimbursements Prevented 4.4

Improper Procurement Card Puchases Prevented 4.5

Accurate Time & Attendance Ensured 4.3

Practices Prevent Workplace Discrimination 3.5

Prevent Ethics Violations 3.8

Communication Systems Help Meet Goals 4.2

Computer Access Rules Protect Agency Data 4.2

Emergency Plans Documented 3.7

Emergency Plans Communicated 3.4
24

level. The FFMIA requires the Director to determine the agency's financial management system 

compliance with the FFMIA and to develop CAPs for noncompliant financial systems, as needed.

FMCS uses a financial system provided by a Shared Services Provider (SSP), operated by 

the Department of Treasury’s Administrative Resources Center (ARC), for processing financial 

data. Based on reviews conducted by its independent auditors, FMCS found that the agency’s 

financial management systems were in substantial compliance with the federal financial 

management system requirements, applicable federal accounting standards, and the U.S. 

Government Standard General Ledger at the transaction level.

Improper Payments Information Act (IPIA) of 2002 (Pub. L. No. 107-300)

IPIA was enacted to reduce the number and value of improper payments made by federal 

agencies. The Act requires that federal agencies estimate improper payments and report on actions 

to reduce them.

Approximately 85 percent of FMCS’s 2022 appropriations were dedicated to employee 

pay and benefits, rent, and reimbursement for employee travel. The remainder of agency expenses 

consists of vendor payments for goods and services provided to the agency. Thus, FMCS is not 

susceptible to and has not identified any significant problems with improper payments. The 

Agency is nonetheless committed to continuous improvement in the overall accuracy of its 

accounts payable process.

Prompt Payment Act of 1982 (PPA) (Pub. L. No. 97-177)

The PPA requires federal agencies to make timely payments to vendors for supplies and 

services, to pay interest penalties when payments are made after the due date, and to take cash 

discounts when they are economically justified. As of September 30, 2022, 99.7 percent of the

FMCS’s payments that were subject to the PPA were made on time. In FY 2022, the FMCS

incurred $29 in interest penalties and made almost 100 percent of its vendor payments 

electronically.

Debt Collection Improvement Act of 1996 (Pub. L. No. 104-134) 

The Debt Collection Improvement Act of 1996 was enacted to enhance the ability of the 

federal government to service and collect debts. As of September 30, 2022, delinquent debt was 

$154. FMCS pursues the collection of delinquent debt and refers all eligible delinquent debt more 

than 120 days delinquent to the U.S. Treasury for collection.

Digital Accountability and Transparency Act of 2014 (DATA Act) (Pub. L. No. 113-101)

The DATA Act requires agencies to establish common standards for financial data 

provided by all government agencies and to expand the amount of data that agencies must provide 
25

to the government website, USASpending.gov. The FMCS met the government-wide DATA Act 

reporting requirements in FY 2022. 

Federal Information Security Modernization Act of 2014 (FISMA 2014) (Pub. L. No. 113-

283)

As mandated by FISMA, the FMCS continues to maintain an information security program 

to support the confidentiality, integrity, and availability of agency information and information 

systems. FMCS worked diligently throughout FY 2022 to protect agency information and systems. 

The agency performed routine IT security operations, as well as implemented programmatic and 

technological improvements to reduce agency cybersecurity risks.

FMCS IT accomplishments for FY 2022 related to FISMA include the following: a 

successful launch of the CDM Defend F dashboard using Qualys agents aligned with DHS CISA’s 

distributed and automated CDM initiatives, 100 percent implementation for the FMCS’s privileged 

account holders to require PIV for computer login, successful pilot launch for MFA access to all 

Office 365 applications and services, 90 percent setup of network migration from physical on 

premises network to MS Azure cloud based infrastructure, greatly increasing our flexibility and 

COOP capabilities, successful launch of a web based notice submission and service request portal 

to eliminate paper forms (F-7, IAA, Requests for Mediation Services) and reduce repetitive and 

error prone data input by private, public, and other federal customers.
26

Financial Information
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Member of the American Institute of Certified Public Accountants’ Government Audit Quality 

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Independent Auditor’s Report

The Director

Federal Mediation and Conciliation Service

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of the Federal Mediation and Conciliation 

Service (FMCS), which comprise the balance sheet as of September 30, 2022, and the related

statements of net cost, changes in net position, and budgetary resources (hereinafter referred to as 

“financial statement”), for the year then ended, and the related notes to the financial statements.

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

material respects, the financial position of the FMCS as of September 30, 2022, and its net costs, 

changes in net position, and budgetary resources for the year then ended, in accordance with 

accounting principles generally accepted in the United States of America.

Basis for Opinion

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

States of America (GAAS) and the standards applicable to financial audits contained in 

Government Auditing Standards issued by the Comptroller General of the United States, and the 

Office of Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for the Federal 

Financial Statements. Our responsibilities under those standards are further described in the 

Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are 

required to be independent of the FMCS and to meet our other ethical responsibilities, in 

accordance with the relevant ethical requirements relating to our audit. We believe that the audit 

evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other Matter

The financial statements of the prior period were audited by a predecessor auditor. The opinion 

expressed by the predecessor auditor was an unmodified opinion as of and for the years ended 

September 30, 2021, and 2020. The predecessor auditor report was dated November 12, 2021.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America, and for 

the design, implementation, and maintenance of internal control relevant to the preparation and 
1005 N. Glebe Road, Suite 610

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Phone: (571) 429-6600

www.rmafed.com

Member of the American Institute of Certified Public Accountants’ Government Audit Quality 

Center 

28

fair presentation of financial statements that are free from material misstatement, whether due to 

fraud or error.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 

that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute 

assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and 

Government Auditing Standards will always detect a material misstatement when it exists. The 

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or 

the override of internal control. Misstatements are considered material if there is a substantial 

likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• exercise professional judgment and maintain professional skepticism throughout the audit.

• identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, and design and perform audit procedures responsive to those risks. Such

procedures include examining, on a test basis, evidence regarding the amounts and disclosures

in the financial statements.

• obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of FMCS’ internal control. Accordingly, no such opinion is

expressed.

• evaluate the appropriateness of accounting policies used and the reasonableness of significant

accounting estimates made by management, as well as evaluate the overall presentation of the

financial statements.

We are required to communicate with those charged with governance regarding, among other 

matters, the planned scope and timing of the audit, significant audit findings, and certain internal 

control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require management’s 

discussion and analysis be presented to supplement the basic financial statements. Such 

information is the responsibility of management and, although not a part of the basic financial 

statements, is required by the Federal Accounting Standards Advisory Board, who considers it to 
1005 N. Glebe Road, Suite 610

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Member of the American Institute of Certified Public Accountants’ Government Audit Quality 

Center 

29

be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. 

We have applied certain limited procedures to the required supplementary information in 

accordance with GAAS, which consisted of inquiries of management about the methods of 

preparing the information and comparing the information for consistency with management’s 

responses to our inquiries, the basic financial statements, and other knowledge we obtained during 

our audit of the basic financial statements. We do not express an opinion or provide any assurance 

on the information because the limited procedures do not provide us with sufficient evidence to 

express an opinion or provide any assurance.

Other Information

Management is responsible for the other information presented in the Performance and 

Accountability Report. The Message from the Director and other information are for purposes of 

additional analysis and are not a required part of the basic financial statements. Our opinion on the 

basic financial statements does not cover the other information, and we do not express an opinion 

or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other 

information and consider whether a material inconsistency exists between the other information 

and the financial statements, or the other information otherwise appears to be materially misstated. 

If, based on the work performed, we conclude that an uncorrected material misstatement of the 

other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the FMCS’ 

internal control over financial reporting (internal control) as a basis for designing audit procedures 

that are appropriate in the circumstances for the purpose of expressing our opinions on the financial 

statements, but not for the purpose of expressing an opinion on the effectiveness of the FMCS’ 

internal control. Accordingly, we do not express an opinion on the effectiveness of the FMCS’ 

internal control.

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

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

or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies, in internal control, such that there is a reasonable possibility that a 

material misstatement of the entity’s financial statements will not be prevented, or detected and 

corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of 
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Phone: (571) 429-6600

www.rmafed.com

Member of the American Institute of Certified Public Accountants’ Government Audit Quality 

Center 

30

deficiencies, in internal control that is less severe than a material weakness, yet important enough 

to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph 

of this section and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies. Given these limitations, during our audit we did

not identify any deficiencies in internal control that we consider to be material weaknesses. 

However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the FMCS’ financial statements are free 

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

regulations, contracts, and grant agreements, noncompliance with which could have a direct and 

material effect on the financial statements. However, providing an opinion on compliance with 

those provisions was not an objective of our audit, and accordingly, we do not express such an 

opinion. The results of our tests disclosed no instances of non-compliance or other matters that are 

required to be reported under Government Auditing Standards or OMB Bulletin No. 22-01.

The Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government 

Auditing Standards section of this report is solely to describe the scope of our testing of internal 

control and compliance and the results of that testing, and not to provide an opinion on the 

effectiveness of the FMCS’ internal control or compliance. This section is an integral part of an 

audit performed in accordance with Government Auditing Standards in considering the FMCS’

internal control and compliance. Accordingly, this communication is not suitable for any other 

purpose.

Arlington, VA

November 15, 2022
FEDERAL MEDIATION AND CONCILIATION SERVICE

SEPTEMBER 30, 2022 AND 2021

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

31
TABLE OF CONTENTS

BALANCE SHEETS................................................................................................... 1

STATEMENTS OF NET COST....................................................................................... 2

STATEMENTS OF CHANGES IN NET POSITION............................................................... 3

STATEMENTS OF BUDGETARY RESOURCES.................................................................. 4

NOTES TO THE FINANCIAL STATEMENTS..................................................................... 5-15

FEDERAL MEDIATION AND CONCILIATION SERVICE

FINANCIAL STATEMENTS

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

32
2022 2021

Assets:

Intragovernmental:

Fund Balance with Treasury (Note 2) $ 17,131,689 $ 13,972,608

Accounts Receivable, net (Note 3) 228,935 283,965 

Total Intragovernmental 17,360,624 14,256,573

Other than Intragovernmental:

Accounts Receivable, net (Note 3) 2,854 5,469 

General Property, Plant, and Equipment, net (Note 4) 797,652 300,152 

Total Other than Intragovernmental 800,506 305,621 

Total Assets $ 18,161,130 $ 14,562,194

Liabilities (Note 5):

Intragovernmental:

Other Liabilities (Note 7) $ 628,496 $ 626,998

Total Intragovernmental 628,496 626,998 

Other than Intragovernmental:

Accounts Payable 672,661 223,578 

Federal Employee Benefits Payable 3,889,359 4,378,563

Other Liabilities (Note 7) 1,541,413 1,464,453

Total Other than Intragovernmental 6,103,433 6,066,594

Total Liabilities $ 6,731,929 $ 6,693,592

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 10,637,575 $ 8,284,357

Cumulative Results of Operations - Funds from Other than Dedicated Collections 791,626 (415,755)

Total Net Position 11,429,201 7,868,602

Total Liabilities and Net Position $ 18,161,130 $ 14,562,194

FEDERAL MEDIATION AND CONCILIATION SERVICE

BALANCE SHEETS

AS OF SEPTEMBER 30, 2022 AND 2021

(In dollars)

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

33
2022 2021

Gross Program Costs:

Gross Costs $ 48,964,484 $ 49,562,728

Less: Earned Revenue (2,257,746) (2,177,264)

Net Cost of Operations $ 46,706,738 $ 47,385,464

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENTS OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In dollars)

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

34
2022 2021

Unexpended Appropriations:

Beginning Balance $ 8,284,357 $ 7,368,885

Appropriations Received 50,058,000 48,600,000

Other Adjustments (1,404,174) (1,025,094)

Appropriations Used (46,300,608) (46,659,434)

Net Change in Unexpended Appropriations 2,353,218 915,472

Total Unexpended Appropriations $ 10,637,575 $ 8,284,357

Cumulative Results of Operations:

Beginning Balance $ (415,755) $ (1,336,958)

Appropriations Used 46,300,608 46,659,434

Imputed Financing (Note 10) 1,613,511 1,647,233

Net Cost of Operations (46,706,738) (47,385,464)

Net Change in Cumulative Results of Operations 1,207,381 921,203

Total Cumulative Results of Operations $ 791,626 $ (415,755)

Net Position $ 11,429,201 $ 7,868,602

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENTS OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In dollars)

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

35
2022 2021

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net (Note 11) $ 8,766,313 $ 6,740,113

Appropriations 50,058,000 48,600,000

Spending Authority from Offsetting Collections 4,517,160 3,231,407

Total Budgetary Resources $ 63,341,473 $ 58,571,520

Status of Budgetary Resources:

New Obligations and Upward Adjustments (total) (Note 12) $ 49,457,817 $ 48,502,747

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 8,443,508 2,729,910

 Unapportioned, Unexpired Accounts 1,837,997 4,353,546

Unexpired Unobligated Balance, End of Year 10,281,505 7,083,456

Expired Unobligated Balance, End of Year 3,602,151 2,985,317

Unobligated Balance, End of Year (total) 13,883,656 10,068,773

Total Budgetary Resources $ 63,341,473 $ 58,571,520

Outlays, Net and Disbursements, Net:

Outlays, Net (total) $ 45,494,745 $ 46,293,144

Agency Outlays, Net $ 45,494,745 $ 46,293,144

FEDERAL MEDIATION AND CONCILIATION SERVICE

STATEMENTS OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)

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

36
FEDERAL MEDIATION AND CONCILIATION SERVICE 

NOTES TO THE FINANCIAL STATEMENTS

37

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The Federal Mediation and Conciliation Service (the FMCS) is an independent Federal agency 

whose primary mission is to prevent or minimize labor-management disputes affecting interstate 

commerce by providing mediation, conciliation, and voluntary arbitration. These activities are 

performed in both the private and public sectors, except for the railroad and airline industries, which 

are covered by the Railway Labor Act and the National Mediation Board, respectively. As of 

September 30, 2022, the FMCS consisted of a national office, 8 district offices, and 9 field offices.

The FMCS reporting entity is comprised of General Funds and General Miscellaneous Receipts.

General Funds are accounts used to record financial transactions arising under congressional 

appropriations or other authorizations to spend general revenues. The FMCS manages Operations 

and Facilities, Engineering and Development General Fund accounts. 

General Fund Miscellaneous Receipts are accounts established for receipts of non-recurring 

activity, such as fines, penalties, fees and other miscellaneous receipts for services and benefits.

The FMCS has rights and ownership of all assets reported in these financial statements. The 

reporting entity is a component of the U.S Government. For this reason, some of the assets and 

liabilities reported by the entity may be eliminated for Government-wide reporting because they 

are offset by assets and liabilities of another U.S. Government entity. These financial statements 

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

sovereign entity. The FMCS does not possess any non-entity assets.

B. Basis of Presentation

The financial statements have been prepared to report the financial position and results of 

operations of the FMCS. The Balance Sheet presents the financial position of the agency. The 

Statement of Net Cost presents the agency’s operating results; the Statement of Changes in Net 

Position displays the changes in the agency’s equity accounts. The Statement of Budgetary 

Resources presents the sources, status, and uses of the agency’s resources and follows the rules for 

the Budget of the United States Government.

The statements are a requirement of the Chief Financial Officers Act of 1990, the Government 

Management Reform Act of 1994 and the Accountability of Tax Dollars Act of 2002. They have 

been prepared from, and are fully supported by, the books and records of the FMCS in accordance 

with the hierarchy of accounting principles generally accepted in the United States of America, 

standards issued by the Federal Accounting Standards Advisory Board (FASAB), Office of 

Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, as amended,

and the FMCS’ accounting policies which are summarized in this note. These statements, with the 
38

exception of the Statement of Budgetary Resources, are different from financial management 

reports, which are also prepared pursuant to OMB directives that are used to monitor and control

the FMCS’ use of budgetary resources. The financial statements and associated notes are presented 

on a comparative basis. Unless specified otherwise, all amounts are presented in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual accounting basis and a budgetary basis. Under the 

accrual method, revenues are recognized when earned, and expenses are recognized when a liability 

is incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates the 

control and monitoring of federal funds as well as the compliance with legal requirements on the 

use of those funds. 

D. Fund Balance with Treasury

Fund Balance with Treasury is an asset of a reporting entity and a liability of the General Fund. It is 

the aggregate amount of the FMCS’ funds with Treasury in expenditure, receipt, and deposit fund 

accounts. Appropriated funds recorded in expenditure accounts are available to pay current 

liabilities and finance authorized purchases. 

The FMCS does not maintain bank accounts of its own, has no disbursing authority, and does not 

maintain cash held outside of Treasury. Funds are disbursed for the agency on demand. Foreign 

currency payments are made either by Treasury or the Department of State and are reported by the 

FMCS in the U.S. dollar equivalents. 

E. Accounts Receivable

Accounts receivable consists of amounts owed to the FMCS by other federal agencies and the 

general public. Amounts due from federal agencies are considered fully collectible. Accounts 

receivable from the public include reimbursements from employees. An allowance for 

uncollectible accounts receivable from the public is established when, based upon a review of 

outstanding accounts and the failure of all collection efforts, management determines that collection 

is unlikely to occur considering the debtor’s ability to pay.

F. Property, Equipment, and Software

Property, equipment and software represent furniture, fixtures, equipment, and information 

technology hardware and software which are recorded at original acquisition cost and are 

depreciated or amortized using the straight-line method over their estimated useful lives. Major 

alterations and renovations are capitalized, while maintenance and repair costs are expensed as 

incurred. The FMCS’ capitalization threshold is $5,000 for individual purchases and a total useful 

life exceeding one year. Depreciation is recorded using the straight-line method. Property, 

equipment, and software acquisitions that do not meet the capitalization criteria are expensed upon 

receipt. Applicable standard governmental guidelines regulate the disposal and convertibility of 

agency property, equipment, and software. 

Description Useful Life (years)

Leasehold Improvements Lease term

Equipment 5

Software 5
39

G. Advances and Prepaid Charges

Advance payments are generally prohibited by law. There are some exceptions, such as 

reimbursable agreements, subscriptions and payments to contractors and employees. Payments 

made in advance of the receipt of goods and services are recorded as advances or prepaid charges 

at the time of prepayment and recognized as expenses when the related goods and services are 

received.

H. Liabilities

Liabilities represent the amount of funds likely to be paid by the FMCS as a result of transactions

or events that have already occurred.

The FMCS reports its liabilities under two categories, Intragovernmental and Other than 

Intragovernmental. Intragovernmental liabilities represent funds owed to another government 

agency. Liabilities other than intragovernmental 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. 

Liabilities covered by budgetary resources are liabilities funded by a current appropriation or other 

funding source. These consist of accounts payable and accrued payroll and benefits. Accounts 

payable represent amounts owed to another entity for goods ordered and received and for services 

rendered except for employees. Accrued payroll and benefits represent payroll costs earned by 

employees during the fiscal year which are not paid until the next fiscal year.

Liabilities not covered by budgetary resources are liabilities that are not funded by any current 

appropriation or other funding source. These liabilities consist of accrued annual leave, actuarial 

FECA, and the amounts due to Treasury for collection and accounts receivable of civil penalties 

and FOIA request fees. 

I. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the accrual is reduced as leave is taken. The balance in 

the accrued leave account is adjusted to reflect current pay rates. Liabilities associated with other 

types of vested leave, including compensatory, restored leave, and sick leave in certain 

circumstances, are accrued at year-end, based on latest pay rates and unused hours of leave. 

Funding will be obtained from future financing sources to the extent that current or prior year 

appropriations are not available to fund annual and other types of vested leave earned but not taken. 

Nonvested leave is expensed when used. Any liability for sick leave that is accrued but not taken 

by a Civil Service Retirement System (CSRS)-covered employee is transferred to the Office of 

Personnel Management (OPM) upon the retirement of that individual. Credit is given for sick leave 

balances in the computation of annuities upon the retirement of Federal Employees Retirement 

System (FERS)-covered employees. 

J. Accrued and Actuarial Workers’ Compensation

The Federal Employees' Compensation Act (FECA) administered by the U.S. Department of Labor 

(DOL) addresses all claims brought by the FMCS’ employees for on-the-job injuries. The DOL 

bills each agency annually as its claims are paid, but payment of these bills is deferred for two years 
40

to allow for funding through the budget process. Similarly, employees that the FMCS terminates 

without cause may receive unemployment compensation benefits under the unemployment 

insurance program also administered by the DOL, which bills each agency quarterly for paid 

claims. Future appropriations will be used for the reimbursement to DOL. The liability consists of 

(1) the net present value of estimated future payments calculated by the DOL and (2) the

unreimbursed cost paid by DOL for compensation to recipients under the FECA.

K. Retirement Plans

The FMCS’ employees participate in either the CSRS or the FERS. The employees who participate 

in CSRS are beneficiaries of the FMCS’ matching contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil Service Retirement and Disability Fund. 

Prior to December 31, 1983, all employees were covered under the CSRS program. From January 

1, 1984 through December 31, 1986, employees had the option of remaining under CSRS or joining 

FERS and Social Security. Employees hired as of January 1, 1987 are automatically covered by 

the FERS program. Both CSRS and FERS employees may participate in the federal Thrift Savings 

Plan (TSP). FERS employees receive an automatic agency contribution equal to one percent of 

pay and the FMCS matches any employee contribution up to an additional four percent of pay. For 

FERS participants, the FMCS also contributes the employer’s matching share of Social Security.

FERS employees and certain CSRS reinstatement employees are eligible to participate in the Social 

Security program after retirement. In these instances, the FMCS remits the employer’s share of the 

required contribution. 

The FMCS recognizes the imputed cost of pension and other retirement benefits during the 

employees’ active years of service. OPM actuaries determine pension cost factors by calculating 

the value of pension benefits expected to be paid in the future and communicate these factors to the 

FMCS for current period expense reporting. OPM also provides information regarding the full cost 

of health and life insurance benefits. The FMCS recognized the offsetting revenue as imputed 

financing sources to the extent these expenses will be paid by OPM. 

The FMCS does not report on its financial statements information pertaining to the retirement plans 

covering its employees. Reporting amounts such as plan assets, accumulated plan benefits, and 

related unfunded liabilities, if any, is the responsibility of the OPM, as the administrator. 

L. Other Post-Employment Benefits

The FMCS employees eligible to participate in the Federal Employees' Health Benefits Plan 

(FEHBP) and the Federal Employees' Group Life Insurance Program (FEGLIP) may continue to 

participate in these programs after their retirement. The OPM has provided the FMCS with certain 

cost factors that estimate the true cost of providing the post-retirement benefit to current employees. 

The FMCS recognizes a current cost for these and Other Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB expense is financed by OPM and offset by the FMCS

through the recognition of an imputed financing source. 

M. Use of Estimates

The preparation of the accompanying financial statements in accordance with generally accepted 

accounting principles requires management to make certain estimates and assumptions that affect 
41

the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from 

those estimates.

N. Contingencies

Liabilities are deemed contingent when the existence or amount of the liability cannot be 

determined with certainty pending the outcome of future events. The FMCS recognizes contingent 

liabilities in the accompanying balance sheet and statement of net cost, when it is both probable 

and can be reasonably estimated. The FMCS discloses contingent liabilities in the notes to the 

financial statements when the conditions for liability recognition are not met or when a loss from 

the outcome of future events is more than remote. 

O. Reclassification

Certain fiscal year 2021 balances have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 

P. Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards allow 

certain presentations and disclosures to be modified, if needed, to prevent the disclosure of 

classified information. 

NOTE 2. FUND BALANCE WITH TREASURY

Fund Balance with Treasury account balances as of September 30, 2022 and 2021, were as follows: 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances 

in the Treasury accounts.

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. At the start of the next fiscal year, this amount will become part of the 

unavailable balance as described in the following paragraph. 

The unavailable unobligated fund balances represent the amount of appropriations for which the 

period of availability for obligation has expired. These balances are available for upward 

adjustments of obligations incurred only during the period for which the appropriation was 

available for obligation or for paying claims attributable to the appropriations.

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand (see also Note 12).

2022 2021

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 8,443,510 $ 2,729,909 

 Unavailable 5,475,278 7,373,994 

Obligated Balance Not Yet Disbursed 3,212,901 3,868,705 

Total $ 17,131,689 $ 13,972,608 
42

NOTE 3. ACCOUNTS RECEIVABLE, NET

Accounts receivable balances as of September 30, 2022 and 2021, were as follows:

The accounts receivable is primarily made up of amounts due from federal government departments 

and other agencies.

Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2022 and 2021. 

NOTE 4. GENERAL PROPERTY, PLANT AND EQUIPMENT, NET

Schedule of General Property, Plant and Equipment, Net as of September 30, 2022: 

Schedule of General Property, Plant and Equipment, Net as of September 30, 2021: 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the FMCS as of September 30, 2022 and 2021, include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be provided. 

Although future appropriations to fund these liabilities are likely and anticipated, it is not certain 

that appropriations will be enacted to fund these liabilities. 

2022 2021

Intragovernmental

Accounts Receivable $ 228,935 $ 283,965

Total Intragovernmental Accounts Receivable $ 228,935 $ 283,965

Other than Intergovernmental

Accounts Receivable $ 2,854 $ 5,469

Total Other than Intragovernmental Accounts Receivable $ 2,854 $ 5,469

Total Accounts Receivable $ 231,789 $ 289,434

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 522,656 $ 454,547 $ 68,109

Software 141,617 30,451 111,166

Construction-in-Progress 82,887 N/A 82,887

Software-in-Development 535,490 N/A 535,490

Total $ 1,282,650 $ 484,998 $ 797,652

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Furniture & Equipment $ 931,530 $ 817,019 $ 114,511

Software 77,918 2,128 75,790

Construction-in-Progress 82,887 N/A 82,887

Software-in-Development 26,964 N/A 26,964

Total $ 1,119,299 $ 819,147 $ 300,152
43

FECA and the Unemployment Insurance liabilities represent the unfunded liability for actual 

workers compensation claims and unemployment benefits paid on the FMCS’ behalf and payable 

to the DOL. The FMCS also records an actuarial liability for future workers compensation claims 

based on the liability to benefits paid (LBP) ratio provided by DOL and multiplied by the average 

of benefits paid over three years. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The 

balance in the accrued annual leave account is reviewed quarterly and adjusted as needed to 

accurately reflect the liability at current pay rates and leave balances. Accrued annual leave is paid 

from future funding sources and, accordingly, is reflected as a liability not covered by budgetary 

resources. Sick and other leave is expensed as taken. 

NOTE 6. ACTUARIAL FECA LIABILITY

FECA provides income and medical cost protection to covered federal civilian employees harmed 

on the job or who have contracted an occupational disease, and beneficiaries of employees whose 

death is attributable to a job-related injury or occupational disease. Claims incurred for benefits 

under FECA for the FMCS employees are administered by the DOL and ultimately paid by the

FMCS when funding becomes available. 

The FMCS bases its estimate for FECA actuarial liability on the DOL's FECA model. The DOL 

method of determining the liability uses historical benefits payment patterns for a specific incurred 

period to predict the ultimate payments for the period. Based on the information provided by the 

DOL, the FMCS’ liability as of September 30, 2022 and 2021, was $0.8 million and $1.3 million, 

respectively.

NOTE 7. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2022, were as follows:

2022 2021

Intragovernmental – FECA $ 129,756 $ 150,007

Unfunded Leave 2,934,352 3,005,271

Actuarial FECA 881,498 1,304,840

Total Liabilities Not Covered by Budgetary Resources $ 3,945,606 $ 4,460,118

Total Liabilities Covered by Budgetary Resources 2,786,323 2,233,474

Total Liabilities $ 6,731,929 $ 6,693,592

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 122,370 $ - $ 122,370

Employer Contributions and Payroll Taxes Payable 376,370 - 376,370

Unfunded FECA Liability 129,756 - 129,756

Total Intragovernmental Other Liabilities $ 628,496 $ - $ 628,496

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 1,540,913 $ - $ 1,540,913

Other Liabilities w/Related Budgetary Obligations 500 - 500

Total Other than Intragovernmental Other Liabilities $ 1,541,413 $ - $ 1,541,413

Total Other Liabilities $ 2,169,909 $ - $ 2,169,909
44

Other liabilities account balances as of September 30, 2021, were as follows:

NOTE 8. LEASES

Operating Leases

The FMCS leases office space for headquarters operations in Washington, D.C. and for district and 

field operations. The lease agreements expire at various dates, the latest being 2042. Assets held 

under these leases consist of offices. All office space occupied by the FMCS is leased by the 

General Services Administration. The total operating lease expense for fiscal years 2022 and 2021 

were $3,388,296 and $2,829,399 respectively. 

Below is a schedule of future payments for the term of the lease: 

The operating lease amount does not include estimated payments for leases with annual renewal 

options. 

NOTE 9. COMMITMENTS AND CONTINGENCIES

The FMCS did not have any material contingent liabilities that met disclosure requirements as of 

September 30, 2022 and 2021. 

NOTE 10. INTER-ENTITY COSTS

The FMCS recognizes certain inter-entity costs for goods and services that are received from other 

federal entities at no cost or at a cost less than the full cost. Certain costs of the providing entity 

that are not fully reimbursed are recognized as imputed cost and are offset by imputed revenue. 

Such imputed costs and revenues relate to employee benefits and claims to be settled by the 

Treasury Judgement Fund. The FMCS recognizes as inter-entity costs the amount of accrued 

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 137,747 $ - $ 137,747

Employer Contributions and Payroll Taxes Payable 339,244 - 339,244

Unfunded FECA Liability 150,007 - 150,007

Total Intragovernmental Other Liabilities $ 626,998 $ - $ 626,998

Other than Intragovernmental

Accrued Funded Payroll and Leave $ 1,464,050 $ - $ 1,464,050

Other Liabilities w/Related Budgetary Obligations 403 - 403

Total Other than Intragovernmental Other Liabilities $ 1,464,453 $ - $ 1,464,453

Total Other Liabilities $ 2,091,451 $ - $ 2,091,451

Fiscal Year Office Space

2023 $ 3,388,296 

2024 3,363,109 

2025 3,112,302 

2026 2,866,063 

2027 2,761,300 

2028 thru 2042 41,419,500 

Total Future Lease Payments $ 56,910,570 
45

pension and post-retirement benefit expenses for current employees. The assets and liabilities 

associated with such benefits are the responsibility of the administering agency, OPM. For the 

periods ended September 30, 2022 and 2021, respectively, inter-entity costs were as follows:

NOTE 11. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT 

FORWARD, OCTOBER 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for 

recoveries of prior year paid and unpaid obligations and other changes such as canceled authority. 

The Adjustments to Unobligated Balance Brought Forward, October 1, as of September 30, 2022, 

and 2021, consisted of the following:

NOTE 12. APPORTIONMENT CATEGORIES OF NEW OBLIGATIONS AND UPWARD 

ADJUSTMENTS

New obligations and upward adjustments incurred and reported in the Statement of Budgetary 

Resources in 2022 and 2021 consisted of the following: 

Category A apportionments distribute budgetary resources by fiscal quarters. 

NOTE 13. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2022, budgetary resources obligated for undelivered orders were as follows: 

As of September 30, 2021, budgetary resources obligated for undelivered orders were as follows: 

2022 2021

Office of Personnel Management $ 1,613,511 $ 1,647,233 

Total Imputed Financing Sources $ 1,613,511 $ 1,647,233 

2022 2021

Unobligated Balance Brought Forward From Prior Year, October 1 $ 10,068,773 $ 7,534,719 

Recoveries of Prior Year Obligations 101,715 230,488 

Other Changes in Unobligated Balances (1,404,175) (1,025,094)

Unobligated Balance From Prior Year Budget Authority, net (Discretionary and Mandatory) $ 8,766,313 $ 6,740,113 

2022 2021

Direct Obligations, Category A $ 47,652,028 $ 46,794,794

Reimbursable Obligations, Category A 1,805,789 1,707,953

Total New Obligations and Upward Adjustments $ 49,457,817 $ 48,502,747

Federal Non-Federal Total

Unpaid Undelivered Orders $ 695,550 $ 3,697,568 $ 4,393,118

Total Undelivered Orders $ 695,550 $ 3,697,568 $ 4,393,118

Federal Non-Federal Total

Unpaid Undelivered Orders $ 201,482 $ 3,197,202 $ 3,398,684

Total Undelivered Orders $ 201,482 $ 3,197,202 $ 3,398,684
46

NOTE 14. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE 

BUDGET OF THE U.S. GOVERNMENT

The President’s Budget that will include fiscal year 2022 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2023 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2023 Budget of 

the United States Government, with the "Actual" column completed for 2021, has been reconciled 

to the Statement of Budgetary Resources and there were no material differences. 

In Millions

NOTE 15. RECONCILIATION OF NET COST TO NET OUTLAYS

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an 

accrual basis, provides an explanation of the relationship between budgetary and financial 

accounting information. 

Reconciliation of Net Cost to Net Outlays as of September 30, 2022: 

New Obligations Distributed

Budgetary & Upward Offsetting Net

Resources Adjustments (Total) Receipts Outlays

Combined Statement of Budgetary Resources $ 59 $ 49 $ - $ 46

Unobligated Balance Not Available (3) - - - 

Budget of the U.S. Government $ 56 $ 49 $ - $ 46

 Intragovernmental 

 Other than 

Intragovernmental Total 

$ 14,410,412 $ 32,296,326 $ 46,706,738

Property, Plant, and Equipment Depreciation Expense - (74,467) (74,467)

Property, Plant, and Equipment Disposals & Revaluations - (258) (258)

Increase/(Decrease) in Assets:

Accounts Receivable, Net (55,030) (2,615) (57,645)

(Increase)/Decrease in Liabilities:

Accounts Payable - (449,083) (449,083)

Federal Employee [and Veteran] Benefits Payable - 489,204 489,204

Other Liabilities (1,498) (76,960) (78,458)

Financing Sources:

Imputed Cost (1,613,511) - (1,613,511)

$ (1,670,039) $ (114,179) $ (1,784,218)

Acquisition of Capital Assets - 572,225 572,225

$ - $ 572,225 $ 572,225

$ 12,740,373 $ 32,754,372 $ 45,494,745

Budgetary Agency Outlays, Net $ 45,494,745

RECONCILIATION OF NET COST TO NET OUTLAYS

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2022

(In Dollars)

Components of Net Cost Not Part of the Budgetary Outlays

Total Net Outlays (Calculated Total) 

Net Operating Cost (SNC)

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)
47

Reconciliation of Net Cost to Net Outlays as of September 30, 2021: 

 Intragovernmental 

 Other than 

Intragovernmental Total 

Net Operating Cost (SNC) $ 14,190,949 $ 33,194,515 $ 47,385,464

Property, Plant, and Equipment Depreciation Expense - (133,303) (133,303)

Property, Plant, and Equipment Disposals & Revaluations - (1,199) (1,199)

Increase/(Decrease) in Assets:

Accounts Receivable, Net 77,241 (5,157) 72,084

(Increase)/Decrease in Liabilities:

Accounts Payable - (19,239) (19,239)

Federal Employee [and Veteran] Benefits Payable - 396,111 396,111

Other Liabilities 37,111 95,126 132,237

Financing Sources:

Imputed Cost (1,647,233) - (1,647,233)

$ (1,532,881) $ 332,339 $ (1,200,542)

Acquisition of Capital Assets - 134,322 134,322

$ - $ 134,322 $ 134,322

$ 12,658,068 $ 33,661,176 $ 46,319,244

Budgetary Agency Outlays, Net $ 46,293,144

Components of Net Cost Not Part of the Budgetary Outlays

Total Components of Net Operating Cost Not Part of the Budgetary Outlays

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost

Budgetary Agency Outlays, Net (SBR 4210)

Total Net Outlays (Calculated Total) 

RECONCILIATION OF NET COST TO NET OUTLAYS

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEARS ENDED SEPTEMBER 30, 2021

(In Dollars)