FEDERAL MINE SAFETY AND 

HEALTH REVIEW COMMISSION 

FINANCIAL STATEMENTS 

AND 

INDEPENDENT AUDITOR'S REPORT 

FOR THE FISCAL YEARS ENDED 

SEPTEMBER 30, 2008 AND 2007 

BY 

BROWN & COMPANY CPAs, PLLC 

NOVEMBER 7,2008 

~~~~~~= BROWN & COMPANY CPAS, PLLC =~~~~~~~ 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

FOR THE FISCAL YEARS ENDED 

SEPTEMBER 30, 2008 AND 2007 

TABLE OF CONTENTS 

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

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL ........ .......... ................. 2 

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND 

REGULATIONS ... .. ....... ....... ............................. ... ...... .... .................................... ............................ 4 

BALANCE SHEET .. ..... ......... .. ....... .. ...... .... ................ ......... .................... .. .. ..... .... ... ...... ... ........... .... 5 

STATEMENT OF NET COST . .... .. .. .. ...... ......... ................ ... .... ... .................................. ............ .. .. 6 

STATEMENT OF CHANGES IN NET POSITION .. .................. ......... .. ........................... .. ...... . 7 

STATEMENT OF BUDGETARY RESOURCES.. ........... .... ................... .. .. ................ .. .............. 8 

NOTES TO THE FINANCIAL STATEMENTS ........................... .... ................ .. .. .. ........ ... ......... 9 

MANAGEMENT DISCUSSION AND ANALYSIS .. ........ .................... ................ .. .. .................... 20 

E ============= BROWN & COMPANY CPAS, PLLC =======.~ 
~~~ ~========= BROWN & COMPANY CPAs, PLLC ======~ CERl'IFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 

Federal Mine Safety and Health Review Commission 

Washington, DC 

We have audited the accompanying balance sheet of the Federal Mine Safety and Health Review 

Commission (FMSHRC) as of September 30, 2008 and 2007, and the related statements of net cost, 

changes in net position, and budgetary resources, for the years then ended (collectively referred to as the 

financial statements). These financial statements are the responsibility of FMSHRC's management. Our 

responsibility is to express an opinion on these financial statements based on our audit. 

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

America and the standards applicable to financial audits contained in U.S. Government Auditing 

Standards, issued by the Comptroller General ofthe United States; and Office of Management and Budget 

(OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 07-04 require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. An audit includes examining, on a test 

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 

assessing the accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audit provides a reasonable 

basis for our opinion . 

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

financial position of the FMSHRC as of September 30, 2008 and 2007 and its net costs, changes in net 

position, and budgetary resources for the years then ended in conformity with accounting principles 

generally accepted in the United States of America. 

In accordance with U.S. Government Auditing Standards and OMB Bulletin No. 07-04, we have also 

issued a report dated November 7, 2008 on our consideration of the FMSHRC internal control over 

financial reporting and its compliance with provisions of laws and regulations. Those reports are an 

integral part of an audit performed in accordance with U.S. Government Auditing Standards and should 

be read in conjunction with this report in considering the results of our audit. 

The information in "Management's Discussion & Analysis" (MD&A) is presented for the purpose of 

additional analysis and is required by OMB Circular No. A-136, revised Financial Reporting 

Requirements. The FMSHRC's MD&A contains a wide range of information, some of which is not 

directly related to the financial statements. We do not express an opinion on this information. However, 

we compared this information for consistency with the financial statements and discussed the methods of 

measurement and presentation with FMSHRC officials. Based on this limited work, we found no 

material inconsistencies with the financial statements, U.S. generally accepted accounting principles, or 

OMB guidance. 

This report is intended solely for the information and use of the management of the FMSHRC, OMB and 

Congress, and is not intended to be and should not be used by anyone other than these specific parties. 

Largo

~~~ , Maryland 

November 7,2008 

LARGO 

9200 BASIL COURT, SUITE 400 

LARGO, MD 20774 

(240) 492-1400 . FAX: (301) 636-6013 

mail @brownco-cpas.com 

RICHMOND 

1504 SANTA ROSA ROAD, SUITE 107 

RICHMOND, VA 23229 

(804) 288-2006 . FAX: (804) 288-2233 

tdavis@brownco-cpas.com 
"\4111\ 

~~~~==== • BROWN & COMPANY CPAs, PLLC ====== . 

CERI'IFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL 

Federal Mine Safety and Health Review Commission 

Washington, DC 

We have audited the financial statements of the Federal Mine Safety and Health Review Commission 

(FMSHRC) as of and for the year ended September 30, 2008 and have issued our report thereon dated 

November 7, 2008. We conducted our audit in accordance with auditing standards generally accepted in 

the United States of America; and the standards applicable to financial audits contained in U.S 

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

Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial 

Statements. 

In planning and performing our audit, we considered the FMSHRC's internal control over financial 

reporting by obtaining an understanding of the FMSHRC's internal control, determined whether internal 

controls had been placed in operation, assessed control risk, and performed tests of controls in order to 

determine our auditing procedures for the purpose of expressing our opinion on the financial statements. 

We limited our internal control testing to those controls necessary to achieve the objectives described in 

OMB Bulletin No. 07-04. We did not test all internal controls relevant to operating objectives as broadly 

defined by the Federal Managers' Financial Integrity Act of 1982, such as those controls relevant to 

ensuring efficient operations. The objective of our audit was not to provide an opinion on internal control 

and therefore, we do not express an opinion on internal control. 

Our consideration of the intertlal control over financial reporting would not necessarily disclose all 

matters in the internal control over financial reporting that might be significant deficiencies. Under 

standards issued by the American Institute of Certified Public Accountants and OMB Bulletin No. 07-04, 

a significant deficiency is a deficiency in internal control, or a combination of deficiencies, that adversely 

affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in 

accordance with generally accepted accounting principles such that there is more than a remote likelihood 

that a misstatement of the entity's financial statements that is more than inconsequential will not be 

prevented or detected. Our consideration of the internal control over financial reporting would not 

necessarily disclose all matters in the internal control over financial reporting that might be a material 

weakness. A material weakness is a significant deficiency, or combination of significant deficiencies, 

that result in a more than remote likelihood that a material misstatement of the financial statements will 

not be prevented or detected. Because of inherent limitations in internal controls, misstatements, losses, 

or non-compliance may nevertheless occur and not be detected. However, we noted no matters involving 

the internal control and its operation that we considered to be significant deficiencies or material 

weaknesses as defined above. 

LARGO 

9200 BASIL COURT, SUITE 400 

LARGO, MD 20774 

(240) 492-1400 . FAX: (301) 636-6013 

mail @brownco-cpas.com 

2 

RICHMOND 

1504 SANTA ROSA ROAD, SUITE 107 

RICHMOND, VA 23229 

(804) 288-2006 . FAX: (804) 288-2233 

tdavis@brownco-cpas.com 
This report is intended solely for the information and use of the management of the FMSHRC, OMB and 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

Largo, 

~~

Maryland 

~ 

November 7, 2008 

~~~~~~= BROWN & COMPANY CPAS, PLLC ======= •• 

3 
~=:li~===BROWN & COMPANY CPAs, PLLC =============~ 

CERI'IFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS 

INDEPENDENT AUDITOR'S REPORT ON 

COMPLIANCE WITH LAWS AND REGULATIONS 

Federal Mine Safety and Health Review Commission 

Washington, DC 

We have audited the financial statements of the Federal Mine Safety and Health Review Commission 

(FMSHRC) as of and for the year ended September 30, 2008, and have issued our report thereon dated 

November 7, 2008. We conducted our audit in accordance with auditing standards generally accepted in 

the United States of America, and the standards applicable to financial audits contained in U.S. 

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

Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial 

Statements. 

The management of the FMSHRC is responsible for complying with laws and regulations applicable to 

the FMSHRC. As part of obtaining reasonable assurance about whether the FMSHRC's financial 

statements are free of material misstatement, we performed tests of its compliance with certain provisions 

of laws and regulations, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts, and certain other laws and regulations specified in OMB 

Bulletin No. 07-04. We limited our tests of compliance to these provisions and we did not test compliance 

with all laws and regulations applicable to the FMSHRC. 

The results of our tests of compliance disclosed no reportable instances of noncompliance with other laws 

and regulations discussed in the preceding paragraph that are required to be reported under U.S. 

Government Auditing Standards or OMB Bulletin No. 07-04. 

Providing an opinion on compliance with certain provisions of laws and regulations was not an objective 

of our audit, and, accordingly, we do not express such an opinion. However, we noted no noncompliance 

with laws and regulations, which could have a direct and material effect on the determination of financial 

statement amounts. 

This report is intended solely for the information and use of the management of the FMSHRC, OMB and 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

Largo, Maryland 

~~~ 

November 7, 2008 

LARGO 

9200 BASIL COURT, SUITE 400 

LARGO, MD 20774 

(240) 492-1400 . FAX: (301) 636-6013 

mail @brownco-cpas.com 

4 

RICHMOND 

1504 SANTA ROSA ROAD, SUITE 107 

RICHMOND, VA 23229 

(804) 288-2006 · FAX: (804) 288-2233 

tdavis@brownco-cpas.com 
The accompanying notes are an integral part of these statements. 

5 

 

2008 2007

Assets:

Intragovernmental:

Fund Balance With Treasury (Note 2) 3,798,259 $ 4,699,725 $ 

Total Intragovernmental 3,798,259 4,699,725

General Property, Plant and Equipment, Net (Note 3) 57,723 81,357 

Total Assets $ 4,757,448 3,879,616 $ 

Liabilities:

Intragovernmental:

Accounts Payable 2,094 $ - $ 

Other (Note 5) 27,498 39,607 

Total Intragovernmental 41,701 27,498

Accounts Payable 150,755 94,082

Other (Note 5) 415,370 513,377 

Total liabilities 705,833 $ 536,950 $ 

Net Position:

Unexpended Appropriations - Other Funds 3,392,425 $ $ 4,427,549

Cumulative Results of Operations - Other Funds (218,642) (207,051) 

Total Net Position 3,173,783 $ 4,220,498 $ 

Total Liabilities and Net Position $ 4,757,448 3,879,616 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2008 AND 2007

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

6 

 

2008 2007

Program Costs:

Commission Review

Gross Costs (Note 7) $ 3,998,486 4,313,028 $ 

Net Program Costs 4,313,028 $ 3,998,486 $ 

Administrative Law Judge Determinations

Gross Costs (Note 7) $ 3,324,910 4,040,188 $ 

Net Program Costs 4,040,188 $ 3,324,910 $ 

Net Cost of Operations $ 7,323,396 8,353,216 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

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

7 

 

 

2008 2007

Cumulative Results of Operations:

Beginning Balances $ (207,051) (260,399) $ 

Beginning Balances, as Adjusted (207,051) $ (260,399) $ 

Budgetary Financing Sources:

Appropriations Used $ 7,936,929 $ 6,989,418

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 387,326 404,696 

Total Financing Sources $ 7,376,744 8,341,625 $ 

Net Cost of Operations $ 7,323,396 8,353,216 $ 

Net Change $ (11,591) 53,348 $ 

Cumulative Results of Operations $ (218,642) (207,051) $ 

Unexpended Appropriations:

Beginning Balances $ 4,395,086 4,427,549 $ 

Beginning Balances, as Adjusted $ 4,395,086 4,427,549 $ 

Budgetary Financing Sources:

Appropriations Received $ 8,096,000 $ 7,777,652

Other Adjustments (1,194,195) (755,771)

Appropriations Used (7,936,929) (6,989,418) 

Total Budgetary Financing Sources $ (1,035,124) 32,463 $ 

Total Unexpended Appropriations $ 4,427,549 3,392,425 $ 

Net Position $ 4,220,498 3,173,783 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

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

8 

2008 2007

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 3,386,498 $ 3,243,153

Recoveries of Prior Year Unpaid Obligations 420,365 706,954

Budget Authority

Appropriation 8,096,000 7,777,652

Permanently Not Available (1,194,195) (755,771) 

Total Budgetary Resources $ 10,971,988 10,708,668 $ 

Status of Budgetary Resources:

Obligations Incurred

Direct $ 7,787,182 $ 7,585,490

Unobligated Balance

Apportioned 358,031 394,618

Unobligated Balance Not Available 2,991,880 2,563,455 

Total Status of Budgetary Resources $ 10,971,988 10,708,668 $ 

Change in Obligated Balance:

Obligated Balance, Net

Unpaid Obligations, Brought Forward, October 1 $ 1,451,071 1,313,227 $ 

Total Unpaid Obligated Balance, Net 1,313,227 1,451,071

Obligations Incurred Net 7,787,182 7,585,490

Less: Gross Outlays 7,803,270 7,016,380

Less: Recoveries of Prior Year Unpaid

Obligations, Actual 706,954 420,365 

Obligated Balance, Net, End of Period

Unpaid Obligations 876,773 $ 1,313,227 $ 

Total, Unpaid Obligated Balance, Net, End of Period $ 1,313,227 876,773 $ 

Net Outlays:

Net Outlays:

Gross Outlays $ 7,016,380 7,803,270 $ 

Net Outlays $ 7,016,380 7,803,270 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

(In Dollars)
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

9 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Basis of Presentation 

The financial statements have been prepared to report the financial position, net cost of operations, 

changes in net position, and status and availability of budgetary resources of Federal Mine Safety and 

Health Review Commission (MSC). 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 MSC in 

accordance with the hierarchy of accounting principles generally accepted in the United States of 

America, standards approved by the principals of the Federal Accounting Standards Advisory Board 

(FASAB), OMB Circular A-136, Financial Reporting Requirements and MSC 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 MSC’s use of budgetary resources. 

The statements consist of the Balance Sheet, Statement of Net Cost, Statement of Changes in Net 

Position, and the Statement of Budgetary Resources. In accordance with OMB Circular A-136, the 

financial statements and associated notes are presented on a comparative basis. Unless specified 

otherwise, all amounts are presented in dollars. 

B. Reporting Entity 

MSC 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. 

MSC has rights and ownership of all assets reported in these financial statements and does not possess 

any non-entity assets. 

C. Budgets and Budgetary Accounting 

Congress enacts appropriations to permit MSC to incur obligations for specified purposes. In fiscal years 

2008 and 2007, MSC was accountable for General Fund appropriations. MSC recognizes budgetary 

resources as assets when cash (funds held by the U.S. Treasury) is made available through the Department 

of Treasury General Fund warrants. 

D. 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 disbursement of cash. Budgetary accounting facilitates compliance with legal 

requirements on the use of federal funds. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

10 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

E. Revenues & Other Financing Sources 

Congress enacts annual appropriations to be used, within statutory limits, for operating and capital 

expenditures. 

Appropriations are recognized as a financing source when expended. Appropriations expensed for 

capitalized property and equipment are recognized as expenses when an asset is consumed in operations. 

MSC recognizes as an imputed financing source the amount of accrued pension and post-retirement 

benefit expenses for current employees paid on our behalf by the Office of Personnel Management 

(OPM). 

F. Taxes 

MSC, as a Federal entity, is not subject to Federal, State, or local income taxes, and, accordingly, no 

provision for income taxes has been recorded in the accompanying financial statements. 

G. Fund Balance with Treasury 

The U.S. Treasury processes cash receipts and disbursements. Funds held at the Treasury are available to 

pay agency liabilities. MSC does not maintain cash in commercial bank accounts or foreign currency 

balances. 

H. Accounts Receivable, Net 

Accounts receivable consists of amounts owed to MSC by other federal agencies and the 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 either (1) 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, or (2) an account for which no allowance has been established is submitted to the 

Department of the Treasury for collection, which takes place when it becomes 180 days delinquent. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

11 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

I. Property, Plant and Equipment, Net 

MSC’s property, plant and equipment is recorded at original acquisition cost and is depreciated using the 

straight-line method over the estimated useful life of the asset. Major alterations and renovations are 

capitalized, while maintenance and repair costs are charged to expense as incurred. MSC’s capitalization 

threshold is $50,000 for individual purchases and $500,000 for bulk purchases. Applicable standard 

governmental guidelines regulate the disposal and convertibility of agency property, plant and equipment. 

The useful life classifications for capitalized assets are as follows: 

Description Useful Life (years)

Office Equipment 5 

Leasehold Improvements Period of Lease 

J. 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. 

K. Liabilities

Liabilities covered by budgetary or other resources are those liabilities for which Congress has 

appropriated funds or funding is otherwise available to pay amounts due. 

Liabilities not covered by budgetary or other resources represent amounts owed in excess of available 

Congressionally appropriated funds or other amounts. The liquidation of liabilities not covered by 

budgetary or other resources is dependent on future Congressional appropriations or other funding. 

Intragovernmental liabilities are claims against MSC by other Federal agencies. Liabilities not covered 

by budgetary resources on the Balance Sheet are equivalent to amounts reported as Components requiring 

or generating resources on the Reconciliation of Net Cost to Budget. Additionally, the Government, 

acting in its sovereign capacity, can abrogate liabilities. 

L. Accounts Payable 

Accounts payable consists of amounts owed to other Federal agencies and the public. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

12 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

M. 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 upon the retirement of that individual. 

No credit is given for sick leave balances upon the retirement of Federal Employee’s Retirement System 

(FERS)-covered employees. 

N. Retirement Plans 

MSC employees participate in either the CSRS or the FERS. FERS was established by the enactment of 

Public Law 99-335. Pursuant to this law, FERS and Social Security automatically cover most employees 

hired after December 31, 1983. Employees hired before January 1, 1984 elected to join either FERS and 

Social Security or remain in CSRS. 

All employees are eligible to contribute to the Thrift Savings Plan (TSP). For those employees 

participating in the FERS, a TSP account is automatically established and MSC makes a mandatory 1 

percent contribution to this account. In addition, MSC makes matching contributions, ranging from 1 to 4 

percent, for FERS eligible employees who contribute to their TSP accounts. Matching contributions are 

not made to the TSP accounts established by CSRS employees. 

MSC 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 communicates these factors to MSC for current period 

expense reporting. OPM also provides information regarding the full cost of health and life insurance 

benefits. MSC recognized the offsetting revenue as imputed financing sources to the extent these 

expenses will be paid by OPM. 

MSC 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. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

13 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

O. Use of Estimates 

Management has made certain estimates and assumptions when reporting assets, liabilities, revenue, 

expenses, and in the note disclosures. The preparation of financial statements in conformity with 

generally accepted accounting principles required management to make assumptions that affect the 

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of 

the financial statements and the reported amounts of revenues and expenses during the reporting period. 

Actual results could differ from these estimates. 

P. Imputed Costs/Financing Sources 

Federal Government entities often receive goods and services from other Federal Government entities 

without reimbursing the providing entity for all the related costs. In addition, Federal Government 

entities also incur costs that are paid in total or in part by other entities. An imputed financing source is 

recognized by the receiving entity for costs that are paid by other entities. MSC recognized imputed costs 

and financing sources in fiscal years 2008 and 2007 to the extent directed by OMB. 

Q. Contingencies 

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

certainty pending the outcome of future events. MSC recognizes contingent liabilities, in the 

accompanying balance sheet and statement of net cost, when it is both probable and can be reasonably 

estimated. MSC 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. In some cases, once losses are certain, payments may be made from the Judgment Fund 

maintained by the U.S. Treasury rather than from the amounts appropriated to MSC for agency 

operations. Payments from the Judgment Fund are recorded as an “Other Financing Source” when made. 

There are no contingencies that require disclosure. 

R. Expired Accounts and Cancelled Authority 

Unless otherwise specified by law, annual authority expires for incurring new obligations at the beginning 

of the subsequent fiscal year. The account in which the annual authority is placed is called the expired 

account. For five fiscal years, the expired account is available for expenditure to liquidate valid 

obligations incurred during the unexpired period. Adjustments are allowed to increase or decrease valid 

obligations incurred during the unexpired period but not previously reported. At the end of the fifth 

expired year, the expired account is cancelled. 

S. Reclassification 

Certain fiscal year 2007 balances have been reclassified, retitled, or combined with other financial 

statement line items for consistency with current year presentation.
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

14 

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2008 and 2007 were: 

Fund Balances: 

2008 2007 

Appropriated Funds $ 3,798,259 $ 4,699,725

Total Fund Balance $ 3,798,259 $ 4,699,725

Status of Fund Balance with Treasury:

 2008 2007 

Unobligated Balance 

 Available $ 358,031 $ 394,618

 Unavailable 2,563,455 2,991,880

Obligated Balance not yet Disbursed 876,773 1,313,227

Total $ 3,798,259 $ 4,699,725

Restricted 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. 

NOTE 3. GENERAL PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment account balances as of September 30, 2008 and 2007 were as follows: 

Schedule of Property, Plant and Equipment as of September 30, 2008

 Acquisition Accumulated Net 

Cost Depreciation Book Value 

Description 

Office Equipment $ 99,597 $ (61,793) $ 37,804 

Leasehold Improvement 54,441 $ (10,888) 43,553

Total $ 154,038 $ (72,681) $ 81,357 

 

Schedule of Property, Plant and Equipment as of September 30, 2007

 Acquisition Accumulated Net 

Cost Depreciation Book Value 

Description 

Office Equipment $ 99,597 $ (41,874) $ 57,723 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

15 

NOTE 4. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities on MSC’s Balance Sheet as of September 30, 2008 and 2007, include liabilities not 

covered by budgetary resources, which are liabilities for which 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. Other 

liabilities not covered by budgetary resources consist entirely of unfunded leave liabilities. Unfunded 

leave balances are $299,998 and $264,775 as of September 30, 2008 and 2007, respectively. 

NOTE 5. OTHER LIABILITIES

The accrued liabilities for MSC are comprised of program expense accruals, payroll accruals, and 

unfunded annual leave earned by employees. Program expense accruals represent expenses that were 

incurred prior to year-end but were not paid. Similarly, payroll accruals represent payroll expenses that 

were incurred prior to year-end but were not paid. 

 2008 2007 

Intragovernmental 

Payroll Taxes Payable $ 39,607 $ 27,498

Total Intragovernmental $ 39,607 $ 27,498

 

 Unfunded Leave 299,998 264,775

 Accrued Funded Payroll 206,706 147,028

 Payroll Taxes Payable 6,673 3,567

Total Nongovernmental $ 513,377 $ 415,370

Total Other Liabilities $ 552,984 $ 442,868

All liabilities are current liabilities. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

16 

NOTE 6. LEASES 

MSC occupies office space under a lease agreement that is accounted for as an operating lease. The lease 

term began on October 1, 2002 and expires on October 1, 2012. Lease payments are increased annually 

based on the adjustments for operating cost and real estate tax escalations. 

Schedule of Future Minimum Lease Payments

2009 $ 1,286,027 

2010 1,311,542 

2011 1,337,542 

2012 1,364,040

Total Future Payments $ 5,299,151

The operating lease amount does not include estimated payments for leases with annual renewal options. 

NOTE 7. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

 

Intragovernmental costs and intragovernmental exchanges revenue represent goods and services exchange 

transactions made between two reporting entities within the Federal government, and are in contrast to 

those with non-federal entities (the public). Such costs and revenue are summarized as follows: 

 2008 2007 

Commission Review 

 Intragovernmental Costs $ 1,580,222 $ 1,497,832

 Public Costs 2,732,806 2,500,654

 Total Program Costs $ 4,313,028 $ 3,998,486

 

Administrative Law Judge Determinations 

 Intragovernmental Costs $ 1,508,721 $ 1,318,076

 Public Costs 2,531,467 2,006,834

 Total Program Costs $ 4,040,188 $ 3,324,910

 

Total Intragovernmental Costs $ 3,088,943 $ 2,815,908

Total Public Costs 5,264,273 4,507,488

 Total Net Cost $ 8,353,216 $ 7,323,396
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

17 

NOTE 8. OPERATING/PROGRAM COSTS 

Costs by major budgetary object classification as of September 30, 2008 and 2007 are as follows: 

Budgetary Object Classifications 2008 2007 

 

Personnel & Benefits $ 5,661,831 $ 5,039,721 

Benefits to former employees (3,970) 10,432

Travel and Transportation 71,954 62,520 

Rents, Communication & Utilities 1,413,630 1,362,910 

Printing 15,158 12,435

Other Services 1,027,521 642,640

Supplies and Materials 90,670 82,822 

Equipment, Land & Structures 76,422 109,916 

Total $ 8,353,216 $ 7,323,396 

NOTE 9. IMPUTED FINANCING SOURCES 

MSC recognizes as imputed financing 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, the Office of Personnel Management (OPM). For the fiscal 

years ended September 30, 2008 and 2007, respectively, imputed financing was $404,696 and $387,326, 

respectively. 

NOTE 10. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF 

BUDGETARY RESOURCES AND THE BUDGET OF THE UNITED STATES GOVERNMENT 

Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other 

Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, calls for 

explanations of material differences between amounts reported in the Statement of Budgetary Resources 

and the actual balances published in the Budget of the United States Government (President’s Budget). 

However, the President’s Budget that will include fiscal year 2008 actual budgetary execution 

information has not yet been published. The President’s Budget is scheduled for publication in February 

2009 and can be found at the OMB web site: http://www.whitehouse.gov/omb. The 2009 Budget of the 

United States Government, with the Actual Column completed for 2007, has been reconciled to the 

Statement of Budgetary Resources and there were no material differences. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

18 

NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other 

Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, states that the 

amount of budgetary resources obligated for undelivered orders at the end of the period should be 

disclosed. MSC’s budgetary resources obligated for undelivered orders are $470,938 and $1,041,052 for 

the years ended September 30, 2008 and 2007, respectively. 

NOTE 12. CUSTODIAL ACTIVITY 

MSC’s custodial collection primarily consists of Freedom of Information Act requests. While these 

collections are considered custodial, they are not primary to the mission of MSC nor material to the 

overall financial statements. MSC’s total custodial collections are $21 and $59 for the years ended 

September 30, 2008, and 2007, respectively. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2008 AND 2007

19 

NOTE 13. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

MSC has reconciled its budgetary obligations and non-budgetary resources available to its net cost of 

operations. 

2008 2007

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations incurred $ 7,787,182 $ 7,585,490

Less: Spending Authority From Offsetting Collections and Recoveries 706,954 420,365 

Obligations Net of Offsetting Collections and Recoveries 6,878,536 7,366,817 

Net Obligations 6,878,536 7,366,817 

Other Resources

Imputed Financing From Costs Absorbed By Others 404,696 387,326 

Net Other Resources Used to Finance Activities 387,326 404,696 

Total Resources Used to Finance Activities 7,771,513 $ 7,265,862 $ 

Resources Used to Finance Items Not Part of the Net Cost of Operations

Change In Budgetary Resources Obligated For Goods,

Services and Benefits Ordered But Not Yet Provided (570,113) $ $ (110,882)

Resources That Fund Expenses Recognized In Prior Periods - 73,267

Resources That Finance the Acquisition of Assets - 54,441 

Total Resources Used to Finance Items Not Part of Net Cost of Operations (37,615) (515,672) 

Total Resources Used to Finance the Net Cost of Operations 8,287,185 $ 7,303,477 $ 

Components of the Net Cost of Operations That Will Not Require or

Generate Resources in the Current Period

Components Requiring or Generating Resources in Future Periods

Increase In Annual Leave Liability 35,223 $ - $ 

Total Components of Net Cost of Operations That Will Require or

Generate Resources In Future Periods - 35,223 

Components Not Requiring or Generating Resources:

Depreciation and Amortization 19,919 30,808 

Total Components of Net Cost of Operations That Will Not Require or

Generate Resources 19,919 30,808 

Total Components of Net Cost of Operations That Will Not Require or

Generate Resources In The Current Period $ 19,919 66,031 $ 

Net Cost of Operations $ 7,323,396 8,353,216 $ 
20 

Federal Mine Safety and Health Review Commission 

FY 2008 Performance Accountability Report 

Management Discussion and Analysis 

Overview 

The Federal Mine Safety and Health Review Commission ("Commission") is an 

independent adjudicatory agency charged with resolving disputes ariSing from the 

enforcement of occupational safety and health standards in the nation's mines. Under 

its enabling statute, the Federal Mine Safety and Health Act of 1977 ("Mine Act"), as 

amended, the Commission does not regulate the mining industry, nor does it enforce 

the Mine Act; those functions are delegated to the Secretary of Labor acting through the 

Mine Safety and Health Administration (MSHA). 

Mission and Organization Structure 

The Commission's mission is to provide just, speedy, and articulate adjudication of 

proceedings authorized under the Mine Act, thereby enhancing compliance with the Act 

and contributing to the improved health and safety of the nation's miners. 

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

Commission's Office of Administrative Law Judges (ALJs) and appellate review of ALJ 

decisions by a 5-member Commission appointed by the President and confirmed by the 

Senate. Most cases involve civil penalties assessed against mine operators by MSHA 

and address whether the alleged safety and health violations occurred, and, if so, the 

appropriate sanctions to be imposed. Other types of cases involve mine operators' 

contests of mine closure orders, miners' complaints of safety or health related 

discrimination, miners' applications for compensation after a mine is idled by a closure 

order, and review of disputes between MSHA and underground coal mine operators 

relating to those operators' mine emergency plans. 

Once a case is filed with the Commission, it is given a docket number and referred to 

the Chief Administrative Law Judge (Chief ALJ). Thereafter, litigants in the case must 

submit additional filings before the case is assigned to an ALJ. To expedite the 

decisional process, the Chief ALJ 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, schedules the case for hearing, holds the hearing, and issues a 

decision based upon the record. An ALJ's decision that is not reviewed becomes a 

final, non-precedential order of the Commission. 

The 5-member Commission provides administrative appellate review based on the 

record. It may, in its discretion, review decisions issued by ALJs when requested by a 

litigant, or it may, on its own initiative, direct cases for review. The Commission's 
21 

decisions are precedential and appeals from the Commission's decisions are to the 

federal circuit courts of appeals. 

Key Challenges 

As an adjudicatory agency, the Commission's fulfillment of its mission is in large part 

influenced by the prerogatives of the parties that practice before it. This circumstance 

arises from the unique procedurai structures created by the Mine Act itself. For 

example, the Mine Act provides that a mine operator may challenge an enforcement 

action, e.g., a citation or closure order, within 30 days of receipt thereof. At that juncture, 

however, the Mine Safety and Health Administration (MSHA) will not have had time to 

propose an appropriate civil penalty as a sanction for the citation or order. That process 

may take weeks or months following the initial enforcement action. Consequently, the 

Mine Act also allows the mine operator to defer challenging the citation or order until it 

has been assigned a proposed penalty assessment by MSHA. At this point, the case 

can then proceed on the issue of whether the alleged violation occurred and, if so, the 

appropriate civil penalty to be assessed for that violation. 

Nevertheless, operators often file the initial contest even though they intend to wait until 

the proposed civil penalty is issued. At that point, the two proceedings are consolidated 

and the matter proceeds to settlement or trial. The operator's initial contest, however, 

has historically been carried on the Commission's docket as a pending unresolved 

case. That practice obviously leads to confusion regarding the Commission's 

productivity with respect to the disposition of cases at the ALJ level. For this reason, 

the Commission has determined that, unless the operator seeks to proceed with the 

litigation before a proposed penalty is issued, the Chief ALJ should defer the 

assignment of an operator contest to an ALJ until such time as MSHA arrives at a 

proposed civil penalty, the operator notifies MSHA that it intends to contest the penalty, 

and MSHA in turn notifies the Commission of that fact. This change in the 

Commission's docket record keeping more accurately represents the status of pending 

cases and allows the Commission's ALJs to focus their efforts on those matters wherein 

all relevant issues have been fully joined. 

The scope of the Commission's mission has been significantly expanded by the 

passage of the Mine Improvement and New Emergency Response Act of (MINER Act) 

2006, P.L. 109-236 in June of 2006. That statute amends the Mine Act and vests the 

Commission with the responsibility for resolving disputes over the contents of mine 

emergency plans adopted by underground coal mine operators and submitted to MSHA 

for review and approval. The MINER Act imposes tight deadlines on the Commission 

and its judges with respect to these proceedings, and the Commission has expeditiously 

adopted procedural rules for carrying out Congressional intent. Nevertheless, this new 

jurisdiction will tax the resources of the Commission's Office of ALJs. Moreover, given 

the structure of the MINER Act, the Commission's responsibilities in this area will not 

necessarily dissipate once the initial round of emergency plans are developed, 

reviewed, and, if necessary, litigated. The statute calls for the periodic updating, review, 

and approval of mine emergency plans and the adoption of new technologies in 

2 
22 

underground communications and disaster response. As this process evolves, the 

Commission anticipates that its role as arbiter in the plan adoption and approval 

process will be a significant and ongoing responsibility. 

The MINER Act also establishes new and stronger civil sanctions for violations of the 

Mine Act, including minimum penalties for an operator's unwarrantable failure to comply 

with the statute or the mandatory safety and health standards, and a new penalty for 

conduct deemed "flagrant." In response to the MINER Act, MSHA has revised its civil 

penalty regulations, which will result in significant increases in the amount of civil 

penalties proposed by the agency. MSHA has also indicated that it will increase the 

exercise of its authority to issue closure orders at mines that have demonstrated a 

"pattern" of "significant and substantial" violations of the Act and the mandatory safety 

and health standards. These statutory and regulatory initiatives are expected to 

increase the number of operator contests filed with the Commission and may affect the 

number of cases that go to hearing rather than to settlement. 

As a result of these legislative and regulatory changes, the Commission has 

experienced a dramatic rise in the number of contest cases filed by mine operators. 

At the appellate level, the Commission's workload is determined predominately by the 

number of appeals filed by the parties. Although acceptance of an appeal is 

discretionary, the percentage of cases denied review has not varied significantly. In 

addition, while the number of appeals may vary, the Commission has not been able to 

discern a clear relationship between the trial case load and the number of petitions for 

appellate review it receives. It should be noted that recent Mine Act jurisprudence 

adopted by the D.C. Circuit Court of Appeals that circumscribes the Commission's 

scope of review of MSHA policy may also affect the Commission's review docket. 

Nevertheless, the Commission expects that its workload will increase significantly from 

prior years, thus making it more challenging to attain the Commission's goal of timely 

adjudication at the trial and appellate levels. 

Finally, the tragic events of September 11, 2001, and recent natural disasters 

underscore the need for a government agency to assure that its records are secure and 

replicable in the event that physical files are destroyed or become otherwise 

inaccessible. The Commission must therefore establish an electronic data system that 

stores all key documents away from the Commission's offices in such a way as to allow 

Commission personnel to access those documents in order to carry out the 

Commission's mission. 

To meet these anticipated challenges, the Commission must streamline its case 

handling procedures, redirect its financial and human resources, and encourage 

efficiency and timeliness among the parties who practice before it. Accordingly, the 

Commission has adopted a set of goals for the next five years that, if achieved, will 

ensure that the Commission continues to carry out its mission in a just, efficient, open, 

and credible manner. 

3 
23 

Performance Goals and Results 

In view of the recent and continuing upsurge in its caseload, the Commission must 

continually reassess its strategic goals in light of changing circumstances. Therefore, 

the Commission has established benchmarks as part of its overall strategic plan, but it 

will also revisit and evaluate those benchmarks as part of its annual performance and 

budget planning activity. 

The annual performance plan will clearly explain the role of each Commission activity as 

set forth in the Commission's budget. The plan's specific objectives, adjusted to reflect 

policy determinations and resource allocations in the annual budget process, will serve 

as intermediate steps in the Commission's overall efforts to successfully accomplish the 

goals of this strategic plan. 

Accordingly, in order to achieve its mission, the Commission has set forth the following 

strateoic ooals: 1) to ensure expeditious, fair and legally sound adjudication of cases at 

the trial and appeilate levels, an"d 2) manage the Comm"ission's human resources, 

operations, facilities, and systems to ensure a continually improving, effective and 

efficient organization. 

Commission Function 

The responsibility for the review of ALJ decisions is set forth in section 113(d)(1) of the 

Act. The Act states that an ALJ's decision shall become final 40 days after its issuance, 

unless within that period any two Commissioners direct that the decision be reviewed. 

Most cases come before the Commission when two or more Commissioners vote to 

grant a petition for discretionary review filed by a party adversely affected or aggrieved 

by the ALJ's decision. Petitioners may include miners, miners' representatives, mine 

operators or the Secretary of Labor. The Commission is also charged with the 

responsibility of reviewing disputes arising over the emergency response plans of 

underground coal operators pursuant to the Miner Act. 

Two or more Commissioners may also direct any case for review sua sponte (on the 

Commission's own motion, without the parties filing a petition). Sua sponte review is 

limited to ALJ decisions that are contrary to law or Commission policy, or that present a 

novel question of policy. By law, a quorum of three Commissioners is required to 

consider and decide cases appealed from the Commission's ALJs. Many of the 

Commission's cases present issues of first impression under the Mine Act. That is, the 

cases raise issues that have not been resolved by prior decisions of the Commission or 

the courts or the cases involve the interpretation of safety and health standards and 

regulations newly promulgated by MSHA. 

During FY2008, the number of default cases handled by the Commission created a 

major challenge, particularly for the Commission's Office of the General Council (OGC). 

Default cases typically involve situations where a mine operator has allegedly failed to 

4 
24 

challenge civil penalties proposed by the MSHA within the prescribed 30-day period for 

contesting such proposed penalties. Under the Mine Act, proposed penalties that are 

not timely contested automatically become final Commission orders. Operators may file 

written requests with the Commission seeking to establish "good cause" to re-open the 

final orders. 

The number of default cases received by the Commission increased dramatically from 

68 in FY2007 to 177 in FY2008 - a 2.5 fold increase. This increase in the number of 

default cases being filed was presumably due to statutory changes and changes in 

MSHA's enforcement policy that resulted in many more penalty proposals being issued 

and for much larger amounts. This situation created more opportunities for default 

orders and increased the incentives for operators to re-open default orders. The huge 

increase in default orders has greatly increased the demands on OGC's attorneys, who 

must analyze each case and prepare a draft order for the Commissioners. OGC's task 

was made even more difficult by the fact that for part of FY2008 the Commission lacked 

a quorum and was not able to rule on any re-opening requests, thereby creating a larger 

backlog. 

The following table provides the performance goals and results for this function for 

FY2008. 

COMMISSION REVIEW APPELLATE CASES 

FY 2008 FY 2008 Goals 

Estimate Actual Met Not Met 

Undecided cases beginning-of-year 12 16 .;' 

Cases decided 86 101 .;' 

Undecided cases end-of-vear 12 103 .;' 

Administrative Law Judge Function 

The Commission employs administrative law judges to hear and decide contested 

cases at the trial level, as initiated by the Secretary of Labor, mine operators, and 

miners or their representatives. The judges are also responsible for evaluating and 

approving or denying settlement agreements under the Mine Act. 

The ALJs travel to hearing sites located at or near the mine involved in order to afford 

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

hearing process. 

The Commission has established its law clerkship program to provide research and 

drafting assistance to its ALJs and assist in the efficient management of each judge's 

docket. The Commission hired four law clerks and increased the docket office staff by 

(1) FTE in order to assist with the processing of new cases received. 

5 
25 

The Office of Administrative Law Judges has faced several challenges due to the 

greater than 400% increase in caseload over historical levels in FY2008. Benchmarks 

were based upon a projected estimated backlog by the end of FY2008 of 7,000 cases. 

Actual cases received were 8,956 resulting in a backlog of 9,737. Cases decided 

during FY2008 were 3,316. An estimated total of 6,000 new cases were anticipated for 

2008. 

The following table provides the performance goals and results for this function for FYs 

2005 -2008. 

OFFICE OF ADMINISTRATIVE LAW JUDGES 

Ensure Timely Issuance of Decisions GOAL 

FY FY FY FY NOT 

PERFORMANCE GOALS 2005 2006 2007 2008 MET MET 

I~~IIO an nort"ont nf rfo,.i~inn~ within an rf!:ll\/~ nf • __ w""" v_ t'_.--.. 1110 -, -----,_ •• - ••• ,,', ••• -- --1--- 96% 88% 69% 60% ./ receipt of the post-hearing briefs. 

Issue 95 percent of settlement decisions within 30 90% 96% 80% 73% ./ 

days of receipt of settlement motions. 

Decide all cases within an average of 195 days 121 N/A 128 291 ./ from receipt by the Commission 

Decide 90 percent of cases within 270 days of 97% 98% 97% 79% ./ assignment. 

Undecided cases over 270 days of age. 18 5 71 687 ./ 

Office of the Executive Director Function 

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

the Commission in fulfilling its mission. 

OED provides strategic planning and operational management for the organization. 

OED also includes administrative services, financial, human resources, procurement, 

technology management, and computer and information security. The day-to-day tasks 

performed under the direction of the Executive Director include: 

• Supporting the development and implementation of the Commission's strategic 

goal; 

• Supporting the implementation and development of effective and efficient case 

management and administrative systems through information technology 

hardware and software; 

6 
26 

• Maintaining and enhancing a website to provide the public with user friendly 

access to Commission information; 

• Enhancing telecommunications and improving technology efficiency and 

effectiveness; 

• Providing support Commission-wide in the areas of human resources, 

procurement, budget, finance, equal opportunity, and general administrative 

services; 

• Providing personnel, payroll, benefits, hearing coordination, and travel 

coordination to Commission employees; and 

• Procuring goods and services, maintenance and needed repairs of equipment, 

training, reference materials, and supplies and office space. 

Analysis of Financial Statements 

In accordance with the Accountability of Tax Dollars Act of 2002, the Commission 

began annual audits in FY 2003. The Commission has received an "unqualified" 

opinion for each annual review conducted by an independent auditor. 

Since 1998, the Commission has contracted with the Bureau of Public Debt, Treasury 

Franchise Fund, Administrative Resource Center, for accounting services. The 

Administrative Resource Center prepared the Commission's FY 2008 financial 

statements, which include comparative data for FY 2007. The principal financial 

statements include the Balance Sheet, Statement of Net Cost, Statement of Net 

Position and Statement of Budgetary Resources. The Statement of Financing is now 

part of the Notes to the financial statements. 

The changes described in the analyses below generally indicate that the Commission 

has been more efficient in the obligation of the funds available. This is due to higher 

payroll cost and filing critical positions, as well as higher costs for goods and services to 

maintain operations and accomplish our mission. 

Analysis of the Balance Sheet 

The Commission's assets in FY2008 were $3,879,616 as of September 30,2008. This 

represents a decrease of $877,832 from FY2007. The Fund Balance with Treasury of 

$3,798,259 represents the Commission's largest asset as of September 30, 2008. This 

is a decrease of approximately 19 percent from FY2007 and represents approximately 

98 percent of the Commission's totai assets. Generai Property, Piant and Equipment 

accounts for approximately 2 percent of the Commission total assets as of September 

30,2008. The net fixed asset value of $81,357 equals the cost less accumulated 

depreciation and represents the current book value of those assets. 

The Commission's liabilities in FY2008 totaled $705,833 as of September 30,2008. 

This is an increase of $168,883 over the FY2007 balance of $536,950. Accounts 

payable balance at September 30,2008, was $152,849, an increase of $58,767 from 

September 30,2007. Accrued liabilities and payroll taxes payable increased slightly in 

7 
27 

2008. Unfunded annual leave increased $35,223 in 2008 from 2007. Unfunded annual 

leave represents approximately 43 percent of total Commission liabilities. 

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

position for FY2008 decreased by $1,046,715 from FY2007. 

Analysis of Statement of Net Cost 

The statement of Net Cost shows the net cost of operations for the Commission, and it 

is broken out between the Commissions two major programs, Administrative Law Judge 

and Commission. The total net cost of operations in 2008 was $8,353,216, an increase 

of $1 ,029,820, or 14 percent, over the 2007 net cost of operations of $7,323,396. 

Analysis of the Statement of Changes in Net Position 

The Statement of Changes in Net Position reports the change in the Commission'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 

decreased $1,046,715 in 2008 from 2007, a change of approximately 25 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 FY2008, the Commission had total budgetary resources of $10,708,668, 

which is $263,320 less than in 2007. 

Management Assurances 

Systems, Controls, and Legal Compliance 

The Commission's 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 micro independent agency, the Commission must 

rely heavily on the systems and controls provided by servicing agencies to meet the 

OMB's guidelines and the requirements of law with respect to financial management, 

accounting systems, and financial reporting. These services are supplemented by 

internal control procedures within the Commission sufficient to assure that the 

performance and financial data included in this audit report are complete and reliable. 

All financial data reported was obtained from the FY 2008 accounting reports prepared 

by the Bureau of Public Debt, the Commission's accounting servicing provider, and the 

performance data on case intake and dispositions has been verified by Commission 

program managers. There are no material inadequacies or non-conformance in either 

the completeness or reliability of the data reported. 

8 
28 

In addition, I am pleased to certify, with reasonable assurance, that the Commission's 

systems of internal controls and the systems of accounting used by the Bureau of Public 

Debt are in compliance with the Federal Managers Financial Integrity Act. 

Performance Data Verification 

The adjudicative and managerial goals and objectives set forth above can be achieved 

through an integrated set of strategies that build on current Commission programs and 

initiatives. The Commission now provides same day electronic recordings of oral 

arguments and decisional meetings on its web site. The Commission's Performance 

Data and Verification web site access is provided in real time. The Commission has 

implemented a new case management system so that all case files will be stored 

electronically. The system will ultimately allow parties to file all documents electronically 

as well. 

Working from the premise that fair and expeditious decision-making and efficient 

agency management go hand in hand, the Commission adopts the following strategies 

to implement the strategic goals and objectives: 1) prioritize the decisional process; 2) 

maintain and enhance an information technology program; 3) improve human resources 

management; and 4) promote employee accountability. 

The Commission will evaluate its progress towards accomplishing its strategic goals, 

through analysis of the results of its performance measures and through a continual 

reassessment of its workload and the needs of the parties that it serves. Program 

strengths and weakness will be assessed to determine alternative courses of action. 

The Commission will use the results of these evaluations to develop the annual 

performance goals and objectives which will focus the Commission's activities for the 

year. 

Limitations of the Financial Statements 

The principal financial statements have been 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 have been prepared from the books and records of the Commission in 

accordance with GAAP for Federal entities and the formats prescribed by OMB, the 

statements aie in addition to the financial ieports used to monitoi and contiOl budgetary 

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

9