FEDERAL MINE SAFETY AND HEALTH

REVIEW COMMISSION

PERFORMANCE AND ACCOUNTABILITY REPORT (PAR)

FISCAL YEAR 2022

November 15, 2022
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Federal Mine Safety and Health Review Commission 2022 PAR

Table of Contents

Message from the Chair..................................................................................... 1

Management Discussion and Analysis ............................................................ 2

Mission and Organizational Structure........................................................ 2

Key Personnel Organization Chart..........................................................4

Performance Goals.................................................................................... 4

Key Challenges ......................................................................................... 4

Analysis of Financial Statements............................................................... 5

Management Assurances.......................................................................... 7

Fraud Reduction Report ............................................................................ 7

Performance Section ..........................................................................................9

Performance Goals and Results.................................................................9

Administrative Law Judges Function ..........................................................9

Commission Review Function .................................................................. 11

Office of Executive Director Function ....................................................... 12

Enclosure 1: Federal Mine Safety and Health Review Commission Independent 

Auditor’s Report and Financial Statements for the Years Ended 

September 30, 2022, and 2021
Federal Mine Safety and Health Review Commission 2022 PAR

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Federal Mine Safety and Health Review Commission 2022 PAR

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Message from the Chair

November 15, 2022

I am pleased to submit the Performance and Accountability Report for Fiscal Year 2022. 

This report provides performance information in keeping with the requirements of the 

Government Performance and Results Modernization Act of 2010 and includes audited 

financial statements and accompanying documentation as mandated by the 

Accountability of Tax Dollars Act of 2002.

In response to the COVID pandemic FMSHRC implemented a fulltime teleworking plan 

for all personnel and transitioned to exclusively electronic filings and issuances. 

Beginning on January 3, 2022, FMSHRC resumed in-person hearings within the 

discretion of the presiding Chief Administrative Law Judge. In April 2022, FMSHRC 

implemented a plan for employees to resume in-person work in FMSHRC office spaces 

while also maintaining partial telework schedules. In July 2022, FMSHRC resumed inperson oral arguments and decisional meetings consistent with its COVID-19 Workplace 

Safety Plan.

In Fiscal Year 2022, FMSHRC met or substantially met the performance targets for all 

four trial level goals in the Office of the Chief Administrative Law Judge. The number of 

trial level cases on hand also has been reduced significantly over the past several years, 

with 1,127 remaining at the end of FY 2022. At the appellate level, FMSHRC met its

case targets for four of its five goals.

We are pleased to report the independent auditor’s opinion that the financial statements 

present fairly, in all material aspects, FMSHRC’s financial position. No matters involving 

internal control were noted and no material internal control weaknesses were identified. It

is my assessment that the financial and performance data in this report are reliable and 

complete.

Mary Lu Jordan

Chair
Federal Mine Safety and Health Review Commission 2022 PAR

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Management Discussion and Analysis

MISSION AND ORGANIZATIONAL STRUCTURE

The Federal Mine Safety and Health Review Commission (FMSHRC, or the 

Commission) is an independent adjudicatory agency that provides administrative trial 

and appellate review of legal disputes arising under the Federal Mine Safety and Health 

Act of 1977 (Mine Act), as amended. The Commission is entirely independent and is not 

a component of the Department of Labor (DOL) or Mine Safety and Health 

Administration (MSHA).

Section 113 of the Mine Act establishes FMSHRC and sets forth its responsibilities. The Mine 

Improvement and New Emergency Response Act of 2006, P.L. 109-236 (MINER Act) added an 

additional responsibility to FMSHRC, resolving disputes between the Secretary of Labor and 

underground coal operators with respect to the contents of emergency response plans or the 

Secretary’s refusal to approve such plans.

The mission of FMSHRC is to provide just, speedy, and legally sound adjudication of 

proceedings authorized under the Mine Act in a manner that deters noncompliance with 

the Act and ensures that a penalty once proposed and contested before the Commission 

is not compromised out of view of the public or without justification.

FMSHRC currently consists of four organizational elements:

• Office of the Chair and Commissioners (OCC);

• Office of the General Counsel (OGC);

• Office of the Chief Administrative Law Judge (OCALJ); and

• Office of the Executive Director (OED).

The Commission is headquartered in Washington, DC with satellite offices located in 

Denver, CO and Pittsburgh, PA.

The Commission carries out its responsibilities through trial-level adjudication by 

administrative law judges and appellate review of the judges’ decisions by a fivemember Commission. The Commissioners are appointed by the President and 

confirmed by the Senate.

Most cases involve the contest of civil penalties proposed by MSHA to mine operators 

for alleged violations of mandatory health and safety standards, and address whether 

the alleged safety and health violations occurred as well as the assessment of 

appropriate civil penalties sufficient to deter operator noncompliance. The Commission 

is required by the Mine Act to review proposed penalty settlements between operators 

and MSHA to ensure that a penalty once proposed and contested before the 
Federal Mine Safety and Health Review Commission 2022 PAR

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Commission is not compromised out of the view of the public and without justification. 

Other types of cases include contests of MSHA orders to close a mine for health or 

safety reasons, miners' requests for compensation after being idled by such orders, 

review of MSHA’s approval or disapproval of operators’ emergency response and other 

mine safety plans, miners’ complaints that they suffered discrimination because they 

exercised protected safety rights, and miners’ allegations of interference with the 

exercise of such rights. Disputes involving the temporary reinstatement of a miner, or an 

emergency response plan must be decided on an expedited basis. 

Once a case is filed with the Commission, it is referred to the Chief Administrative Law 

Judge (Chief Judge). Thereafter, litigants in the case must submit additional filings 

before the case is assigned to a judge. To expedite the decisional process, the Chief 

Judge may rule on certain motions and, where appropriate, issue orders of settlement, 

dismissal, or default. Otherwise, once a case is assigned to an individual judge, that 

judge is responsible for the case and rules upon motions and settlement proposals. If a 

hearing is necessary, the judge schedules and presides over the hearing, and issues a 

decision based upon the record. A judge’s decision becomes a final, non-precedential 

order of the Commission unless it is accepted for review by the Commission. The 

Commission provides administrative appellate review. It may, in its discretion, review 

decisions issued by judges when requested by a litigant, or it may, on its own initiative, 

direct cases for review. The Commission’s decisions are precedential and appeals from 

the Commission’s decisions are heard in the federal courts of appeals.

The Chair of the Commission is responsible for the administrative operations of the 

Commission. The Chief Operating Officer (COO) oversees the Commission’s daily 

operations and provides management guidance to the Chair to ensure Commission 

compliance with federal regulations and improve the Commission’s overall efficiency 

and effectiveness. The Office of the Executive Director (OED) function provides budget 

and financial management, and administrative and technical services -- including human 

resources and procurement and contracting. During FY 2022, the information 

technology and facilities management functions were transitioned out of OED and 

placed directly under the COO.
Federal Mine Safety and Health Review Commission 2022 PAR

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KEY PERSONNEL ORGANIZATION CHART

 

PERFORMANCE GOALS

For Fiscal Year 2022, FMSHRC set forth the following strategic goals:

Strategic Goal 1: Ensure expeditious, fair, and legally sound adjudication of 

cases.

Strategic Goal 2: Increase the Commission’s overall operational efficiency and 

effectiveness.

Strategic Goal 3: Achieve organizational excellence through workforce 

development.

KEY CHALLENGES

FMSHRC’s major challenge is the unpredictability of the workload. The number of 

contests filed by operators or appellate petitions brought to FMSHRC at both the trial 

and appellate levels is not subject to FMSHRC’s control.

• Most trial level cases that come before FMSHRC involve civil penalties proposed 

by MSHA against mine operators. These cases are the result of mine operators 

contesting those penalties.

• Most of the cases accepted for review are generated from petitions filed by parties adversely

affected by a judge’s decision. In addition, the Commission, on its own initiative, may decide to 

review a case.

• The Commission at the appellate level also considers requests to reopen cases 

in which a mine operator is in default for failing to timely respond to the 

Secretary’s proposed penalty or to a judge’s order (“default cases”).

Our average time from receipt to disposition (i.e. pendency) of trial level cases 

decreased from 196 days in 2021 to 183 days in 2022. This is due to the processing of 

a large number of default cases in FY 2021, many of which were a year or more old. By 

FY 2022 many of these cases had been resolved and were no longer having such a 

Marco M. 

Rajkovich Jr.

Commissioner

William I. 

Althen

Commissioner

Mary Lu 

Jordan

Chair

TJ Baker

Commissioner

Vacant

Commissioner

Michael McCord

General Counsel

Glynn F. Voisin

Chief Administrative 

Law Judge

Leslie C. Bayless

Chief Operating 

Officer

Tammy Russell

Executive Director

(Acting)
Federal Mine Safety and Health Review Commission 2022 PAR

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significant impact on pendency. FMSHRC’s appellate case inventory of substantive 

cases was also reduced during 2022. FMSHRC continues to improve its capacity to

handle cases and consistently works to ensure systems, procedures, and staffing are 

able to resolve any future caseload spikes. 

ANALYSIS OF FINANCIAL STATEMENTS

The Accountability of Tax Dollars Act of 2002 requires that FMSHRC’s financial 

statements be audited annually. In accordance with the Accountability of Tax Dollars 

Act of 2002, FMSHRC began annual audits in FY 2003. FMSHRC has received an 

“unmodified” opinion for each annual review conducted by an independent auditor.

FMSHRC has contracted with the Department of the Treasury, Bureau of the Fiscal 

Service, Administrative Resource Center, for accounting services since 1998. The 

Administrative Resource Center prepared FMSHRC’s FY 2022 financial statements, 

which include comparative data for FY 2021. The principal financial statements include 

the Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, and 

Statement of Budgetary Resources.

Analysis of the Balance Sheet

FMSHRC’s assets in fiscal year 2022 were $9,885,421 as of September 30, 2022. The 

Fund Balance with Treasury of $9,869,417 represents FMSHRC’s largest asset as of

September 30, 2022. This is an increase of approximately 9 percent from fiscal year 

2021 and represents approximately 99 percent of the agency’s total assets. Property, 

Equipment, and Software accounts for approximately less than 1 percent of FMSHRC's 

total assets as of September 30, 2022. The net fixed asset value of $177 equals the cost 

less accumulated depreciation and represents the current book value of those assets.

FMSHRC’s liabilities in fiscal year 2022 totaled $3,589,828 as of September 30, 2022. 

This is an increase of $841,579 from the fiscal year 2021 balance of $2,748,249.

Accounts payable balance at September 30, 2022, was $2,181,298 an increase of

$829,981 from September 30, 2021. Accrued payroll liabilities and payroll taxes 

increased $92,021. Unemployment insurance increased $382 in 2022. Unfunded 

annual leave increased $49,168 in 2022 from 2021. Unfunded annual leave represents 

approximately 22 percent of total agency liabilities.

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

position for fiscal year 2022 increased by $3,991 from fiscal year 2021.

Analysis of Statement of Net Cost

The Statement of Net Cost shows the net cost of operations for the agency, and it is 

broken out between FMSHRC’s two major functions, Administrative Law Judges and 

Review Commission. The total net cost of operations in 2022 was $17,268,446, which is 

an increase of $929,216 from the 2021 net cost of operations of $16,339,230, a change

of approximately less than 6 percent.
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Analysis of the Statement of Changes in Net Position

The Statement of Changes in Net Position reports the change in the agency’s net 

position during the reporting period. The net position consists of two components, the 

unexpended appropriations, and the cumulative results of operations. The Net Position 

increased $3,991 in 2022 from 2021, a change of approximately .1 percent.

Analysis of the Statement of Budgetary Resources

The Statement of Budgetary Resources presents how the budgetary resources were 

made available and the status of the budgetary resources at the end of the reporting 

period. The total budgetary resources must always equal the total status of budgetary 

resources. For fiscal year 2022, FMSHRC had total budgetary resources of

$21,250,619, which is $143,633 less than in 2021. 

Statement of Financial Impact due to COVID-19

The COVID-19 pandemic did not have a significant financial impact on the agency’s 

financial statements during FY 2022. Therefore, no additional budgetary resources were 

required from the Office of Management and Budget (OMB).

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

Table of Key Measures

Dollarsin Thousands Increase (Decrease)

FY 2022 FY 2021 $ %

COSTS

Total Financing Sources $17,316 $16,377 $939 5.7%

Less: Net Cost $17,269 $16,339 $930 5.7%

Net Change of Cumulative Results of Operations $47 $38 $9 23.7%

NET POSITION

Assets:

Fund Balance with Treasury $9,869 $9,009 $860 9.5%

Accounts Receivable - Intragovernmental $12 $0 $12 100%

Accounts Receivable - Other than Intragovernmental $4 $5 ($1) (20%)

Property, Equipment, and Software $0 $26 ($26) (100%)

Total Assets: $9,885 $9,040 $845 9.3%

Liabilities:

Accounts Payable - Intragovernmental $888 $265 $623 235%

Other Liabilities - Intragovernmental $164 $273 ($109) (39.9%)

Accounts Payable - Other than Intragovernmental $1,294 $1,086 $208 19.2%

Federal Employees Benefits Payable $805 $751 $54 7.2%

Other Liabilities - Other than Intragovernmental $439 $373 $66 17.7%

Total Liabilities: $3,590 $2,748 $842 30.6%

Net Position (Assets minus Liabilities) $6,295 $6,292 $3 .05%
Federal Mine Safety and Health Review Commission 2022 PAR

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MANAGEMENT ASSURANCES

Analysis of Systems, Controls, and Legal Compliance

FMSHRC is responsible for establishing and maintaining effective internal control over 

financial reporting, which includes safeguarding assets and complying with applicable 

laws and regulations. As a small independent Federal agency, it is more efficient for 

FMSHRC to leverage servicing agencies for key functions than to build an organic 

capability. Consequently, FMSHRC must rely heavily on the systems and controls

provided by servicing agencies to meet OMB’s guidelines and the requirements of law 

with respect to financial management, accounting systems, and financial reporting.

All financial data reported was obtained from the FY 2022 accounting reports prepared 

by the Department of the Treasury, Bureau of the Fiscal Service, Administrative 

Resource Center, FMSHRC’s accounting servicing provider. The performance data on 

case intake and dispositions has been verified by Commission managers. There are no 

known material inadequacies or non-conformance in either the completeness or reliability

of the data reported.

The Administrative Resource Center has provided assurance that their financial 

management systems comply with Federal financial management system requirements, 

applicable Federal accounting standards, and the USSGL at the transaction level.

FMSHRC is in compliance with the Federal Managers Financial Integrity Act by 

maintaining effective internal controls to support reliable financial reporting and 

compliance with laws and regulations applicable to FMSHRC.

There have been no significant deficiencies or material weaknesses in the design or 

operation of internal controls over financial reporting during FY 2022. During the audit of 

the financial statements the independent auditor did not identify any significant 

deficiencies or material weaknesses. The independent auditor has provided an 

unmodified opinion on the financial statements.

Limitations of the Financial Statements

The principal financial statements are prepared to report the financial position and 

results of operations of the Federal Mine Safety and Health Review Commission, 

pursuant to the requirements of 31 U.S.C. § 3515(b). The statements are prepared from 

FMSHRC’s books and records in accordance with Federal GAAP and the formats 

prescribed by OMB. Reports used to monitor and control budgetary resources are 

prepared from the same books and records. The statements should be read with the 

realization that they are for a component of the U.S. Government.

FRAUD REDUCTION REPORT

Pursuant to the Fraud Reduction and Data Analytics Act of 2015 (Public Law 114-186, 
Federal Mine Safety and Health Review Commission 2022 PAR

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32 U.S. Code 3321), FMSHRC is reporting on its fraud reduction efforts for FY 2022 and 

the final quarter of FY 2021 in three key areas:

1. Implementation of financial and administrative controls

As a small agency, FMSHRC outsources financial, travel, human resources, and 

procurement services to a shared services provider through an interagency agreement. 

Additionally, FMSHRC’s payroll services are managed by another government agency 

through a shared services interagency agreement. This creates a built-in separation of 

functions for agency business, with several checks and balances. Internally, financial 

and administrative controls are under currently review by management to establish 

adequate standard processes and procedures. For FY 2022, management focused on 

corrective action related to segregation of duties and independent checks for 

procurement and contracting.

2. The fraud risk principle in the Standards for Internal Control in the 

Government (the GAO Green Book)

Annually, FMSHRC completes the independent financial statement auditor’s 

comprehensive Fraud, Waste and Abuse questionnaire. The questionnaire is completed 

and signed by management. Assertions are made that managers are not aware of

allegations of fraud or suspected fraud, and that they understand risks specific to 

FMSHRC.

For FY 2022, management noted insufficient internal controls to prevent, detect, and deter 

fraud. Additionally, management noted suspected management involvement in alleged 

incidents of fraud, currently pending external investigation. Consequently, management is 

reviewing internal controls and need for corrective action in the areas of misappropriation 

of assets, waste of government resources, and abuse of authority.

FMSHRC maintains low risk of fraudulent financial reporting. Financial reporting is 

provided by an authorized shared services financial provider. FMSHRC’s financial 

statements have been audited annually since 2003. 

3. OMB Circular A-123 with respect to leading practices for managing fraud 

risk

Given the FY 2022 identification of insufficient internal controls related to managing fraud 

risk, FMSHRC management is committed to reassessing the agency’s Enterprise Risk 

Management and Internal Control profile and establishing proper policies and standard 

processes and procedures for implementation.
Federal Mine Safety and Health Review Commission 2022 PAR

9

Performance Section

PERFORMANCE GOALS AND RESULTS

For Fiscal Year 2022, FMSHRC set forth the following strategic goals:

Strategic Goal 1: Ensure expeditious, fair, and legally sound adjudication of 

cases.

Strategic Goal 2: Increase the Commission’s overall operational efficiency and 

effectiveness.

Strategic Goal 3: Achieve organizational excellence through workforce 

development.

The first strategic goal is accomplished through the Administrative Law Judges function 

at the trial level, and the Commission Review function at the appellate level. The second

and third strategic goals are accomplished through the Office of the Executive Director

function and the Chief Operating Officer.

ADMINISTRATIVE LAW JUDGES FUNCTION

FMSHRC employs administrative law judges to hear and decide contested cases at the 

trial level. Judges travel to hearing sites located at or near the mine involved to afford 

mine operators, miners, and their representatives a full opportunity to participate in the 

hearing process or provide virtual hearings where appropriate. FMSHRC judges are

also responsible for evaluating and approving or denying settlement agreements 

proposed by the parties under the Mine Act.

FMSHRC received 2,107 new case filings in FY 2022. The number of new cases was a 

seven percent increase from the 1,974 received in FY 2021.

There were 1,001 trial level cases pending at the start of FY 2022. In FY 2022 there were 

1,968 dispositions.

The FY 2022 end-of-year inventory was 1,127 undecided cases.

FMSHRC met or substantially met all four performance targets for the Administrative 

Law Judges function, as shown in the Performance Measurement Matrix.
Federal Mine Safety and Health Review Commission 2022 PAR

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ADMINISTRATIVE LAW JUDGES FUNCTION 

PERFORMANCE MEASUREMENT MATRIX

Performance Metrics - Office of the Chief Administrative Law Judges Function

Performance Goal FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Average time from receipt to Target 290 260 240 180 180

disposition of all cases Result 257 188 161 1961 183

(measured in days) Status M M M SM SM

Average time from receipt to 

disposition of penalty cases

(measured in days)

Target 280 250 235 180 180

Result 257 175 153 184 171

Status M M M SM SM

Percent of all cases on hand Target 20% 20% 20% 20% 20%

over 365 days in age Result 4% 4% 1% 11% 6

%

Status M M M M M

Number of cases pending at 

year end

Anticipated -- 2,429 1,723 1,730 886 938

Result 1,730 1,212 886 1,001 1,127

Status -- M M M M M

Status:

M - Target met or exceeded

SM - Target substantially met - within 10% of target 

NM - Target not met
Federal Mine Safety and Health Review Commission 2022 PAR

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COMMISSION REVIEW FUNCTION

FMSHRC decides two principal types of cases: (1) substantive cases, which are cases 

in which a judge has issued a final or interlocutory decision on the merits and the 

Commission has granted a petition for review filed by either party, or at least two 

Commissioners have decided to grant review on their own initiative; and (2) default 

cases, which are cases where an operator has failed to timely contest a proposed 

penalty or to timely respond to a judge’s order and the operator has filed a motion to 

reopen the final order.

In FY 2022, 16 petitions were filed, and 12 were granted. The targets for substantive 

cases were met for all four of the substantive case categories, as show on the following

matrix.

The pendency of all substantive cases was 13 months in FY 2022 versus a goal of 13 

months. Thus, the goal was met.

The average time from briefing completion to decision issuance was 9 months in FY 

2022, which met the goal of 13 months.

In FY 2021, 48 default cases remained on hand at the end of that fiscal year. Of these 

48 cases, 22 cases had been on hand for more than 6 months. This was 46 percent of 

the total number of cases. Thus, the goal of 40 percent was not met.

The Commission disposed of 4 substantive cases in FY 2022, ending the year with 13

substantive cases on hand.
Federal Mine Safety and Health Review Commission 2022 PAR

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COMMISSION REVIEW FUNCTION 

PERFORMANCE MEASUREMENT MATRIX

Performance Metrics - Commission Review Function

Performance Goal FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Average time from date granted to 

issuance of decision for substantive 

cases (measured in months)

Target 15 15 15 13 13

Result 12 17 18 13 12

Status M NM NM M M

Average time from briefing 

completion to issuance of decision 

forsubstantive cases (measured in

months)

Target 9 9 12 9 9

Result 9 12 12 10 9

Status M NM M SM M 

Percent ofsubstantive cases on 

hand over 18 months in age

Target 20% 20% 20% 20% 20%

Result 11% 7% 12% 20% 16%

Status M M M M M

Percent of default cases on hand 

over 6 months in age

Target 30% 25% 25% 40% 40%

Result 0% 23% 40% 36% 46%

Status M M NM M NM

Number ofsubstantive cases 

pending at year end

Anticipated 16 16 16 16 16

Result 9 14 8 5 13

Status M M M M M

Status:

M - Target met or exceeded

SM - Target substantially met - within 10% of target 

NM - Target not met
13

OFFICE OF THE EXECUTIVE DIRECTOR FUNCTION

The Office of the Executive Director (OED) provides administrative services to support 

FMSHRC’s accomplishment of its mission and strategic goals. The primary functions are 

financial management, human resources, procurement and contracting, and general 

administrative service support.

The financial management services function includes the areas of budget and 

accounting, such as budget formulation, budget execution, funds control, financial 

reporting, and vendor payments.

Human resources services cover the areas of recruitment and placement, classification 

and pay administration, performance management and incentive awards, employee 

benefits and retirement, personnel security, coordination of employee training programs, 

and wellness and employee assistance programs.

Procurement and contracting services include maintaining a simplified acquisition 

program for supplies and services, contract implementation and oversight, and 

coordination of services and supplies.

Other general administrative services provided by OED include the administration of 

employee travel authorizations and reimbursements and the Metro subsidy program.

During FY 2022, the following functions were transitioned out of OED and placed directly 

under the Chief Operating Officer (COO): information technology and facilities 

management.

Information technology entails help-desk functions, network administration, 

cybersecurity, policy formulation, and telecommunications.

Facilities management services cover property and space management, organization 

management, and physical security.

In FY 2022 and prior years, there were no performance measurements for administrative 

operations. However, steps are being taken to introduce performance measures for 

Strategic Goals 2 and 3 over FY 2023.
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

INDEPENDENT AUDITOR’S REPORT 

AND 

FINANCIAL STATEMENTS 

FOR THE YEARS ENDED 

SEPTEMBER 30, 2022 AND 2021 

 

Prepared By 

Brown & Company CPAs and Management Consultants, PLLC 

November 15, 2022 
i 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

INDEPENDENT AUDITOR’S REPORT 

AND

FINANCIAL STATEMENTS 

FOR THE YEARS ENDED 

SEPTEMBER 30, 2022 AND 2021 

TABLE OF CONTENTS 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS ........... 1 

BALANCE SHEET ............................................................................................................... 6 

STATEMENT OF NET COST ............................................................................................. 7 

STATEMENT OF CHANGES IN NET POSITION ............................................................. 8 

STATEMENT OF BUDGETARY RESOURCES ................................................................ 9 

NOTES TO THE FINANCIAL STATEMENTS ................................................................ 10 
1 

INDEPENDENT AUDITOR’S REPORT 

Mary Lu Jordan, Chairman 

Tammy Russell, Executive Director 

Federal Mine Safety Health and Review Commission 

Washington, D.C. 

In our audits of the fiscal years 2022 and 2021 financial statements of the Federal Mine Safety Health and 

Review Commission (the Commission), we found: 

 the Commission’s financial statements as of and for the fiscal years ended September 30, 2022, 

and 2021, are presented fairly, in all material respects, in accordance with United States of 

America (U.S.) generally accepted accounting principles; 

 no material weaknesses in internal control over financial reporting based on the limited 

procedures we performed; and 

 no reportable noncompliance with provisions of applicable laws, regulations, contracts, and 

grant agreements for fiscal year 2022. 

The following sections discuss in more detail (1) our report on the financial statements, which includes 

required supplementary information (RSI)1 and other information included with the financial statements2

; 

(2) our report on internal control over financial reporting; (3) our report on compliance with laws, 

regulations, contracts, and grant agreements. 

Report on the Financial Statements 

Opinion 

In accordance with the provisions of the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No. 

107-289), we have audited The Commission’s financial statements. The Commission’s financial 

statements comprise the balance sheets as of September 30, 2022, and 2021; the related statements of 

net cost, changes in net position, and budgetary resources for the fiscal years then ended; and the related 

notes to the financial statements. In our opinion, the Commission’s financial statements present fairly, 

in all material respects, the Commission’s financial position as of September 30, 2022, and 2021, and 

its net costs of operations, changes in net position, and budgetary resources for the fiscal years then 

ended in accordance with U.S. generally accepted accounting principles. 

Basis for Opinion 

We conducted our audits in accordance with U.S. generally accepted government auditing standards. Our 

responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit 

1 The RSI consists of Management’s Discussion and Analysis and the Statement of Budgetary Resources, which are 

included with the financial statements. 

2

 Other information consists of information included with the financial statements, other than the RSI, Financial 

section, and the auditor’s report. 
2 

of the Financial Statements section of our report. We are required to be independent of the Commission 

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. 

Responsibility of Management for the Financial Statements 

The Commission’s management is responsible for (1) the preparation and fair presentation of these 

financial statements in accordance with U.S. generally accepted accounting principles; (2) preparing, 

measuring, and presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) 

preparing and presenting other information included in the Commission’s financial statements, and 

ensuring the consistency of that information with the audited financial statements and the RSI; and (4) 

designing, implementing, and maintaining effective internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or error. 

Auditor’s Responsibility 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 

opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not 

a guarantee that an audit of the financial statements conducted in accordance with U.S. generally accepted 

government auditing standards will always detect a material misstatement or a material weakness 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, including omissions, are considered to be 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 U.S. generally accepted 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 in order to obtain audit evidence that is sufficient and appropriate to provide a basis for 

our opinion. 

 Obtain an understanding of internal control relevant to our audit of the financial statements in order 

to design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of the Commission’s internal control over financial 

reporting. 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. 

 Perform other procedures we consider necessary in the circumstances. 

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 financial statement audit. 
3 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements. Such information is the 

responsibility of management and, although not a part of the financial statements, is required by FASAB, 

which considers it to be an essential part of financial reporting for placing the financial statements in 

appropriate operational, economic, or historical context. We have applied certain limited procedures to the 

RSI in accordance with U.S. generally accepted government auditing standards, which consisted of 

inquiries of management about the methods of preparing the RSI and comparing the information for 

consistency with management’s responses to the auditor’s inquiries, the financial statements, and other 

knowledge we obtained during the audit of the financial statements, in order to report omissions or material 

departures from FASAB guidelines, if any, identified by these limited procedures. We did not audit and we 

do not express an opinion or provide any assurance on the RSI because the limited procedures we applied 

do not provide sufficient evidence to express an opinion or provide any assurance. 

Other Information 

The Commission’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional analysis and is 

not a required part of the financial statements or the RSI. Management is responsible for the other 

information included in the Commission’s financial statements. The other information comprises the 

information included in the annual report but does not include the financial statements and our auditor’s 

report thereon. Our opinion on the 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 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. 

Report on Internal Control over Financial Reporting 

In connection with our audits of the Commission’s financial statements, we considered the Commission’s 

internal control over financial reporting, consistent with our auditor’s responsibilities discussed below. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described below, and was not designed to 

identify all deficiencies in internal control that might be material weaknesses or significant deficiencies3

 or 

to express an opinion on the effectiveness of the Commission’s internal control over financial reporting. 

Given these limitations, during our audit, we did not identify any deficiencies in internal control over 

3 Other information consists of information included with the financial statements, other than the RSI, Financial 

section, and the auditor’s report. 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 combination of deficiencies, in 

internal control over financial reporting, 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 deficiencies, in internal control over financial reporting that is less 

severe than a material weakness, yet important enough to merit attention by those charged with governance. 
4 

financial reporting that we consider to be material weaknesses. However, material weaknesses or significant 

deficiencies may exist that have not been identified. 

During our 2022 audit, we identified deficiencies in MSC’s internal control over financial reporting that 

we do not consider to be material weaknesses or significant deficiencies. 

Nonetheless, these deficiencies warrant MSC management’s attention. We have communicated these 

matters to MSC management and, where appropriate, will report on them separately. 

Basis for Results of Our Consideration of Internal Control over Financial Reporting 

We performed our procedures related to the Commission’s internal control over financial reporting in 

accordance with U.S. generally accepted government auditing standards. 

Responsibilities of Management for Internal Control over Financial Reporting 

Commission management is responsible for designing, implementing, and maintaining effective internal 

control over financial reporting relevant to the preparation and fair presentation of financial statements that 

are free from material misstatement, whether due to fraud or error. 

Auditor’s Responsibilities for Internal Control over Financial Reporting 

In planning and performing our audit of the Commission’s financial statements as of and for the fiscal year 

ended September 30, 2022, in accordance with U.S. generally accepted government auditing standards, we 

considered the Commission’s internal control relevant to the financial statement 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 the Commission’s internal control over financial reporting. Accordingly, we do not 

express an opinion on the Commission’s internal control over financial reporting. We are required to report 

all deficiencies that are considered to be significant deficiencies or material weaknesses. We did not 

consider all internal controls relevant to operating objectives, such as those controls relevant to preparing 

performance information and ensuring efficient operations. 

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with governance, 

management, and other personnel, the objectives of which are to provide reasonable assurance that (1) 

transactions are properly recorded, processed, and summarized to permit the preparation of financial 

statements in accordance with U.S. generally accepted accounting principles, and assets are safeguarded 

against loss from unauthorized acquisition, use, or disposition, and (2) transactions are executed in 

accordance with provisions of applicable laws, including those governing the use of budget authority, 

regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the 

financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and 

correct, misstatements due to fraud or error. 

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of the Commission’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion on the 

effectiveness of the Commission’s internal control over financial reporting. This report is an integral part 
5 

of an audit performed in accordance with U.S. generally accepted government auditing standards in 

considering internal control over financial reporting. Accordingly, this report on internal control over 

financial reporting is not suitable for any other purpose.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

In connection with our audits of the Commission’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibilities discussed below. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2022 that would be reportable under 

U.S. generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to the 

Commission. Accordingly, we do not express such an opinion. 

Basis for Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

We performed our tests of compliance in accordance with U.S. generally accepted government auditing 

standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities 

for Tests of Compliance section below. 

Responsibilities of Management for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Commission management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to the Commission. 

Auditor’s Responsibilities for Tests of Compliance with Laws, Regulations, Contracts, and Grant 

Agreements 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, 

and grant agreements applicable to the Commission that have a direct effect on the determination of material 

amounts and disclosures in the Commission’s financial statements, and to perform certain other limited 

procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, and grant 

agreements applicable to the Commission. We caution that noncompliance may occur and not be detected 

by these tests. 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing, 

and not to provide an opinion on compliance. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering compliance. 

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not 

suitable for any other purpose. 

Greenbelt, Maryland 

November 15, 2022 
The accompanying notes are an integral part of these financial statements. 

6 

2022 2021

Assets:

Intragovernmental:

Fund Balance with Treasury (Note 2) 9,869,417 $ 9,009,482 $ 

Accounts Receivable, Net (Note 3) 12,131 - 

Total Intragovernmental 9,881,548 9,009,482 

Other than Intragovernmental:

Accounts Receivable, Net (Note 3) 3,696 4,468 

General Property, Plant, and Equipment, Net (Note 4) 177 25,901 

Total Other than Intragovernmental 3,873 30,369 

Total Assets $ 9,039,851 9,885,421 $ 

Liabilities: (Note 5)

Intragovernmental:

Accounts Payable $ 265,127 887,605 $ 

Other Liabilities (Note 6) 163,918 272,793 

Total Intragovernmental 1,051,523 537,920 

Other than Intragovernmental:

Accounts Payable 1,086,190 1,293,693 

Federal Employee Benefits Payable 805,057 751,466 

Other Liabilities (Note 6) 439,555 372,673 

Total Other than Intragovernmental 2,538,305 2,210,329 

Total Liabilities $ 2,748,249 3,589,828 $ 

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections 7,070,537 $ 7,113,962 $ 

Total Unexpended Appropriations (Consolidated) 7,070,537 7,113,962 

Cumulative Results of Operations - Funds from Other than Dedicated Collections (774,944) (822,360) 

Total Cumulative Results of Operations (Consolidated) (774,944) (822,360) 

Total Net Position 6,291,602 6,295,593 

Total Liabilities and Net Position 9,885,421 $ 9,039,851 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2022 AND 2021

(In Dollars)
The accompanying notes are an integral part of these financial statements. 

7 

2022 2021

Gross Program Costs:

Commission Review:

Gross Costs 7,672,376 $ 6,976,547 $ 

Less: Earned Revenue (274) (39) 

Net Program Costs 7,672,102 $ 6,976,508 $ 

Administrative Law Judge:

Gross Costs 9,666,369 $ 9,372,793 $ 

Less: Earned Revenue (70,025) (10,071) 

Net Program Costs 9,596,344 $ 9,362,722 $ 

Net Cost of Operations 17,268,446 $ 16,339,230 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT 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. 

8 

2022 2021

Unexpended Appropriations:

Beginning Balance 7,113,962 $ 7,252,099 $ 

Appropriations Received 17, 17,184,000 539,000 

Other Adjustments (1,026,036) (1,636,921) 

Appropriations Used (16,556,389) (15,685,216) 

Net Change in Unexpended Appropriations (43,425) (138,137) 

Total Unexpended Appropriations 7,070,537 $ 7,113,962 $ 

Cumulative Results of Operations:

Beginning Balance (822,360) $ (860,152) $ 

Appropriations Used 16,556,389 15,685,216 

Imputed Financing (Note 9) 760,093 691,896 

Other (90) (620) 

Net Cost of Operations (17,268,446) (16,339,230) 

Net Change in Cumulative Results of Operations 47,416 37,792 

Total Cumulative Results of Operations (774,944) $ (822,360) $ 

Net Position 6,295,593 $ 6,291,602 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT 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. 

9 

2022 2021

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net (Note 10) 3,641,940 $ 4,200,233 $ 

Appropriations 17,184,000 17,539,000 

Spending Authority from Offsetting Collections 69,679 10,019 

Total Budgetary Resources 21,250,619 $ 21,394,252 $ 

Status of Budgetary Resources:

New Obligations and Upward Adjustments (total) 15,810,391 $ 17,095,614 $ 

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 2,431,064 1,077,198 

Expired Unobligated Balance, End of Year 3,009,164 3,221,440 

Unobligated Balance, End of Year (total) 5,440,228 4,298,638 

Total Budgetary Resources 21,250,619 $ 21,394,252 $ 

Outlays, Net and Disbursements, Net:

Outlays, Net (total) $ 15,375,491 15,653,029 $ 

Distributed Offsetting Receipts (620) (136) 

Agency Outlays, Net $ 15,375,355 15,652,409 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

(In Dollars)
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

10 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Reporting Entity 

The Federal Mine Safety and Health Review Commission (“the Commission”) is an independent 

federal agency with the mission of providing administrative trial and appellate review of legal 

disputes arising under the Federal Mine Safety and Health Amendments Act of 1977, Public Law 

91-173, amended by Public Law 95-164. The Commission 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. 

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

Commission 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 Commission. 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 Commission 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 Commission accounting policies which are summarized in this note. These 

statements, with the 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 Commission’s 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. 
11 

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 federal 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 Commission’s funds with Treasury in expenditure and receipt fund 

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

liabilities and finance authorized purchases. 

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

not maintain cash held outside of Treasury. When the reporting entity seeks to use FBWT to 

liquidate budgetary obligations, Treasury will finance the disbursements in the same way it finances 

all other disbursements, which is to borrow from the public if there is a budget deficit (and to use 

current receipts if there is a budget surplus). Funds are disbursed for the agency on demand. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed to the Commission 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 Commission’s capitalization threshold is $50,000 for individual purchases and 

$500,000 for bulk purchases. 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. The useful 

life classifications for capitalized assets are as follows: 

 Description Useful Life (years) 

 Leasehold Improvements Period of Lease 

 Office Equipment 5 

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 
12 

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 Commission as a result of 

transactions or events that have already occurred. 

The Commission 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, unemployment insurance, and deferred rent. Deferred rent is the difference at year-end 

between the sum of monthly cash disbursements paid to date for rent and the sum of the average 

monthly rent calculated based on the term of the lease. 

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

Commission 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 the unreimbursed cost paid by DOL for compensation to recipients under the 

FECA. 
13 

K. Retirement Plans 

The Commission employees participate in either the CSRS or the FERS. The employees who 

participate in CSRS are beneficiaries of the Commission 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 Commission matches any employee contribution up to an additional four percent of 

pay. For FERS participants, the Commission 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 Commission remits the employer’s share 

of the required contribution. 

The Commission 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 

Commission for current period expense reporting. OPM also provides information regarding the 

full cost of health and life insurance benefits. The Commission recognized the offsetting revenue 

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

The Commission 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 Commission 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 Commission with 

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

employees. The Commission 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 Commission 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 

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

those estimates. 

N. 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. 
14 

O. 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. 

P. Contingencies 

In accordance with SFFAS No. 5, Accounting for Liabilities of the Federal Government, we 

recognize material contingent liabilities meeting the following criteria: 

 A past event or exchange transaction has occurred; 

 A future cash outflow is probable; and 

 A future cash outflow is measurable. 

The estimated liability we record is either a specific amount or within a range of amounts. If some 

amount within the range is a better estimate than any other amount within the range, that amount 

is recognized. If no amount within the range is a better estimate than any other amount, we 

recognize the minimum amount in the range, and we disclose the range and a description of the 

nature of the contingency. 

If one or more, but not all, of the above criteria for recognition are met, and there is a reasonable 

possibility of loss, we will disclose, if material, the nature of the contingent liability, along with a 

range of possible loss, if estimable, and a description of the nature of the contingency.

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 11). 
15 

NOTE 3. ACCOUNTS RECEIVABLE, NET 

Accounts receivable balances as of September 30, 2022 and 2021, were as follows: 

The accounts receivable is made up of amounts owed by other federal agencies and employee 

receivables. 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: 

 
16 

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for the Commission 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. 

FECA and the Unemployment Insurance liabilities represent the unfunded liability for actual 

workers compensation claims and unemployment benefits paid on the Commission’s behalf and 

payable to the DOL. 

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. 

The deferred lease liability amount represents the difference at year end between the sum of 

monthly cash disbursements paid to date for base rent and the sum of the average monthly rent 

calculated based on the term of the lease. This was due to a lease agreement entered into at 1331 

Pennsylvania Avenue that had rent abatement provisions. 

NOTE 6. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2022 were as follows: 

 

 
17 

Other liabilities account balances as of September 30, 2021 were as follows: 

NOTE 7. LEASES 

Operating Leases 

The Commission occupies office space in three locations, of which all three of the lease agreements 

are required to be accounted for as operating leases. The total operating lease expense for the years 

ended September 30, 2022 and 2021, were $1,858,507 and $1,801,822, respectively. 

The Commission occupies office space at 721 19th St, Denver, CO under a lease agreement that is 

accounted for as an operating lease. The lease term began on June 1, 2019 and expires on May 31, 

2029. Below is an estimated schedule of future payments, including estimated real estate taxes and 

operating expenses which are subject to annual adjustments. 

The Commission occupies office space at 875 Greentree Rd, Pittsburgh, PA under a lease 

agreement that is accounted for as an operating lease. The lease term began September 13, 2010 

and expires on September 30, 2023. Below is a schedule of future payments for the term of the 

lease, including estimated real estate taxes and operating expenses which are subject to annual 

adjustments. 

The Commission occupies office space at 1331 Pennsylvania Avenue, Washington, DC under a 

lease agreement that is accounted for as an operating lease. The lease term began on August 23, 

2022 and expires on August 22, 2032. This lease includes a negotiated period of free rent which 

covers the first eight months of the contract. Below is a schedule of future payments for the term 
18 

of the lease, including estimated real estate taxes and operating expenses which are subject to 

annual adjustments. 

The operating lease amounts do not include estimated payments for leases with annual renewal 

options. 

NOTE 8. CONTINGENCIES 

The agency recognizes and discloses contingencies in accordance with SSFAS No. 5, as amended 

by SFFAS No. 12. In FY 2022, the agency incurred a liability for $100,000 for a legal case where 

the risk of loss was probable and the claim was settled. There are two additional cases where the 

estimate of the possible liability or range of possible liability cannot be determined as of September 

30, 2022. 

NOTE 9. INTER-ENTITY COSTS 

The Commission 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 Commission recognizes as inter-entity costs the amount of 

accrued 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: 

 
19 

New Obligations

Budgetary & Upward Net

Resources Adjustments Outlays

Combined Statement of Budgetary Resources 21 $ 15 $ 15 $ 

Unobligated Balance Not Available (4) - - 

Difference - Due to Rounding - 2 - 

Budget of the U.S. Government 17 $ 17 $ 15 $ 

NOTE 10. 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 11. 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: 

NOTE 12. 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 
20 

NOTE 13. CUSTODIAL ACTIVITY 

The Commission’s custodial activity primarily consists of collection of fines, penalties, proprietary 

interest and miscellaneous income. While these collections are considered custodial, they are 

neither primary to the mission of the Commission nor material to the overall financial statements. 

The Commission’s total custodial collections are $0 and $61 for the years ended September 30, 

2022, and 2021, respectively. 

NOTE 14. 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: 

 
21 

Reconciliation of Net Cost to Net Outlays as of September 30, 2021: