FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

SEPTEMBER 30, 2007 AND 2006

FOR THE YEARS ENDED 

PERFORMANCE AND ACCOUNTABILITY REPORT
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

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 

Federal Mine Safety and Health Review Commission 

Washington, D.C. 

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

Commission (FMSHRC) as of September 30, 2007 and 2006, 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 audits 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 Requirement 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 audits provide 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, 2007 and 2006, 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 9, 2007 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” is presented for the purpose of 

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

Requirements. We have applied certain limited procedures, which consisted principally of inquiries 

of management regarding the methods of measurement and presentation of the supplementary 

information. However, we did not audit the information and, accordingly, express no opinion on it. 

Largo, Maryland 

 November 9, 2007

1 
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL 

Federal Mine Safety and Health Review Commission 

Washington, D.C. 

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, 2007 and have issued

our report thereon dated November 9, 2007. 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 internal 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 

2
control and its operation that we considered to be significant deficiencies or material

weaknesses as defined above. 

In addition, with respect to internal control objective related to the performance measures 

included in the “Management’s Discussion & Analysis,” we obtained an understanding of the 

design of internal controls relating to the existence and completeness assertions, and 

determined whether they have been placed in operation as required by OMB Bulletin No. 07-

04. Our procedures were not designed to provide opinion on internal control over reported 

performance measures, and, accordingly, we do not express an opinion on such controls. 

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 9, 2007

3
INDEPENDENT AUDITOR'S REPORT ON 

COMPLIANCE WITH LAWS AND REGULATIONS 

Federal Mine Safety and Health Review Commission 

Washington, D.C. 

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, 2007, and have issued our 

report thereon dated November 9, 2007. 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 9, 2007

4
2007 2006

Assets:

Intragovernmental:

Fund Balance with Treasury (Note 2) 4,699,725 $ 4,694,223 $ 

Total Intragovernmental 4,699,725 4,694,223 

General Property, Plant and Equipment, Net (Note 3) 57,723 77,643 

Total Assets 4,757,448 $ 4,771,866 $ 

Liabilities:

Intragovernmental:

Payroll Taxes Payable 27,498 $ 28,843 $ 

Total Intragovernmental 27,498 28,843 

Accounts Payable 94,082 91,895 

Unfunded Leave (Note 4) 264,775 338,042 

Accrued Funded Payroll 147,028 174,694 

Payroll Taxes Payable 3,567 3,705 

Total Liabilities 536,950 $ 637,179 $ 

Net Position:

Unexpended Appropriations - Other Funds 4,427,549 $ 4,395,086 $ 

Cumulative Results of Operations - Other Funds (207,051) (260,399) 

Total Net Position 4,220,498 $ 4,134,687 $ 

Total Liabilities and Net Position 4,757,448 $ 4,771,866 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

BALANCE SHEET

As of September 30, 2007 and 2006

(in dollars)

 The accompanying notes are an integral part of these statements.

5
2007 2006

Program Costs:

Commission Review

Gross Costs 3,998,486 $ 4,465,955 $ 

Net Program Costs 3,998,486 4,465,955 

Administrative Law Judge Determinations

Gross Costs 3,324,910 3,182,730 

Net Program Costs 3,324,910 3,182,730 

Net Cost of Operations 7,323,396 $ 7,648,685 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

For the years ended September 30, 2007 and 2006

(in dollars)

 The accompanying notes are an integral part of these statements.

6
2007 2006

Cumulative Results of Operations:

Beginning Balances (260,399) $ (210,640) $ 

Budgetary Financing Sources:

Appropriations Used 6,989,418 7,234,242 

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 387,326 364,684 

Total Financing Sources 7,376,744 $ 7,598,926 $ 

Net Cost of Operations 7,323,396 7,648,685 

Net Changes 53,348 (49,759) 

Cumulative Results of Operations $ (260,399) (207,051) $ 

Unexpended Appropriations:

Beginning Balances 4,395,086 $ 3,953,243 $ 

Budgetary Financing Sources:

Appropriations Received 7,777,652 7,809,000 

Other Adjustments (755,771) (132,915) 

Appropriations Used (6,989,418) (7,234,242) 

Total Budgetary Financing Sources 32,463 $ 441,843 $ 

Total Unexpended Appropriations 4,427,549 $ 4,395,086 $ 

Net Position 4,220,498 $ 4,134,687 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

For the years ended September 30, 2007 and 2006

(in dollars)

 The accompanying notes are an integral part of these statements.

7
2007 2006

Budgetary Resources:

Unobligated Balance Brought Forward, October 1: 3,243,153 $ 2,939,327 $ 

Recoveries of Prior Year Unpaid Obligations 706,954 141,299 

Budget Authority

Appropriation 7,777, 7, 652 809,000

Permanently Not Available 755,771 132,915 

Total Budgetary Resources 10,971,988 $ 10,756,711 $ 

Status of Budgetary Resources:

Obligations Incurred

Direct 7,585,490 $ 7,513,558 $ 

Unobligated Balance

Apportioned 394,618 348,841 

Unobligated Balance Not Available 2,991,880 2,894,312 

Total Status of Budgetary Resources 10,971,988 $ 10,756,711 $ 

Change in Obligated Balance:

Obligated Balance, Net

Unpaid Obligations, Brought Forward, October 1 1,451,071 $ 1,250,159 $ 

Obligations Incurred Net 7,585,490 7,513,558 

Less: Gross Outlays 7,016,380 7,171,349 

Less: Recoveries of Prior Year Unpaid

Obligations, Actual 706,954 141,298 

Obligated Balance, Net, End of Period

Unpaid Obligations 1,313,227 $ 1,451,070 $ 

Total, Unpaid Obligated Balance, Net, End of Period 1,313,227 $ 1,451,070 $ 

Net Outlays:

Net Outlays:

Gross Outlays 7,016,380 $ 7,171,349 $ 

Net Outlays 7,016,380 $ 7,171,349 $ 

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

For the years ended September 30, 2007 and 2006

(in dollars)

 The accompanying notes are an integral part of these statements.

8
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

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, the

Accountability of Tax Dollars Act of 2002 and the Office of Management and Budget (OMB) 

Bulletin 07-04, Audit Requirements for Federal Financial Statements. 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 2007 and 2006, 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. 

9
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

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. 

MSC recognizes as an imputed financing source the amount of accrued pension and postretirement 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. Foreign currency payments are made either by Treasury or the

Department of State and are reported by MSC in the U.S. dollar equivalents. 

H. Accounts Receivable 

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. 

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 

10
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

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. 

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. 

11
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

N. Retirement Plans 

MSC employees participate in either the Civil Service Retirement System (CSRS) or the Federal

Employees’ Retirement System (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.

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 2007 and 2006 to the extent

directed by OMB. 

12
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

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 2006 balances have been reclassified, retitled, or combined with other 

financial statement line items for consistency with current year presentation. Under SFFAS 7,

OMB has reclassified the Statement of Financing to be presented in a note as Reconciliation of 

Net Cost of Operations to Budget. 

13
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2007 and 2006 were: 

Fund Balances: 

2007 2006 

Appropriated Funds $ 4,699,725 $ 4,694,223

Status of Fund Balance with Treasury:

2007 2006

Unobligated Balance 

 Available $ 394,618 $ 348,841

 Unavailable 2,991,880 2,894,312

Obligated Balance not yet Disbursed 1,313,227 1,451,070

Total $ 4,699,725 $ 4,694,223

NOTE 3. GENERAL PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment account balances as of September 30, 2007 and 2006 were as 

follows: 

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 

Schedule of Property, Plant and Equipment as of September 30, 2006

Acquisition Accumulated Net

Cost Depreciation Book Value

Description

Office Equipment $ 99,597 $ 21,954 $ 77,643 

14
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 4. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities on MSC’s Balance Sheet as of September 30, 2007 and 2006, 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 $264,775 and $338,042 as of September 30, 2007

and 2006, respectively.

NOTE 5. 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. 

Below is a schedule of future payments for the term of the lease. 

Fiscal Year Building 

2008 $ 1,260,989

2009 1,286,027 

2010 1,311,542 

2011 1,337,542 

2012 1,364,040

Total Future Payments $ 6,560,140

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

options. 

15
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 6. 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: 

2007 2006

Commission Review 

 Intragovernmental Costs $ 1,497,832 $ 1,514,349

 Public Costs 2,500,654 2,951,606

 Total Program Costs $ 3,998,486 $ 4,465,955

Administrative Law Judge Determinations 

 Intragovernmental Costs $ 1,318,076 $ 1,359,386

 Public Costs 2,006,834 1,823,344

 Total Program Costs $ 3,324,910 $ 3,182,730

Total Intragovernmental Costs $ 2,815,908 $ 2,873,735

Total Public Costs 4,507,488 4,774,950

 Total Net Cost $ 7,323,396 $ 7,648,685

16
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 7. OPERATING/PROGRAM COSTS 

Costs by major budgetary object classification as of September 30, 2007 and 2006 are as follows: 

Budgetary Object Classifications 2007 2006

Personnel and Benefits $ 5,039,721 $ 5,418,061

Benefits to former employees 10,432 0

Travel and Transportation 62,520 55,452 

Rents, Communication & Utilities 1,362,910 1,382,208

Printing 12,435 35,718

Other Services 642,640 575,173 

Supplies and Materials 82,822 49,745 

Equipment 109,916 132,328

Total $ 7,323,396 $ 7,648,685

NOTE 8. 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, 2007 and 2006, respectively, imputed financing was $387,326 

and $364,684, respectively.

NOTE 9. 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 2007 actual

budgetary execution information has not yet been published. The President’s Budget is scheduled 

for publication in February 2008 and can be found at the OMB web site: 

http://www.whitehouse.gov/omb. The 2008 Budget of the United States Government, with the 

Actual Column completed for 2006, has been reconciled to the Statement of Budgetary Resources 

and there were no material differences. 

17
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 10. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Beginning with fiscal year 2006, the format of the Statement of Budgetary Resources has 

changed and the amount of undelivered orders at the end of the period is no longer required to be 

reported on the face of the statement. 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 $1,041,052 and $1,151,933 for the years ended September 

30, 2007 and 2006, respectively. 

NOTE 11. 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 $59 and $198 

for the years ended September 30, 2007, and 2006, respectively.

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FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS 

FOR THE YEARS ENDED SEPTEMBER 30, 2007 AND 2006

NOTE 12. 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. 

2007 2006 

Resources Used to Finance Activities:

Budgetary Resources Obligated 

Obligations Incurred $ 7,585,490 $ 7,513,558

Less: Spending Authority from Offsetting Collections and 

Recoveries 706,954 141,299 

Obligations Net of Offsetting Collections and Recoveries 6,878,536 7,372,259

Net Obligations 6,878,536 7,372,259

Other Resources 

Imputed Financing from Costs Absorbed by Others 387,326 364,684

Net Other Resources Used to Finance Activities 387,326 364,684

Total Resources Used to Finance Activities $ 7,265,862 $ 7,736,943

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 $ (110,882) $ 138,018

Resources that Fund Expenses Recognized in Prior Periods 73,267 -

Total Resources Used to Finance Items Not Part of the Net 

Cost of Operations (37,615) 138,018

Total Resources Used to Finance the Net Cost of Operations $ 7,303,477 $ 7,598,925

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 $ - $ 9,841

Total Components of Net Cost of Operations that will 

Require or Generate Resources in Future Periods - 29,841

Components Not Requiring or Generating Resources: 

Depreciation and Amortization 19,919 19,919

Total Components of Net Cost of Operations that will Not 

Require or Generate Resources 19,919 19,919

 

Total Components of Net Cost of Operations that will Not 

Require or Generate Resources in the Current Period 19,919 49,760

 

Net Cost of Operations $ 7,323,396 $ 7,648,685

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