FEDERAL MINE SAFETY 

AND HEALTH 

REVIEW COMMISSION 

PERFORMANCE AND 

ACCOUNTABILITY REPORT 

FISCAL YEAR 2018 

NOVEMBER 14, 2018 
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Table of Contents

Message from the Acting Chairman ................................................................... 1 

Management Discussion and Analysis .............................................................. 3 

Mission and Organizational Structure ........................................................ 3 

Performance Goals ..................................................................................... 5 

Key Challenges ........................................................................................... 5 

Analysis of Financial Statements ............................................................... 7 

Management Assurances ............................................................................ 9 

Fraud Reduction Report ............................................................................... 10 

Performance Section ........................................................................................... 12 

Performance Goals and Results ............................................................... 12 

Administrative Law Judges Function ......................................................... 12 

Commission Review Function ..................................................................... 14 

Office of Executive Director Function .......................................................... 16 

Enclosure 1: Federal Mine Safety and Health Review Commission Independent 

Auditor’s Report and Financial Statements for the Years Ended 

September 30, 2018 and 2017 
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1 

Message from the Acting Chairman

November 14, 2018 

As Acting Chairman of the Federal Mine Safety and Health Review Commission 

(FMSHRC), I am pleased to submit the Performance and Accountability Report for Fiscal 

Year 2018. This report provides performance information in keeping with the 

requirements of the Government Performance and Results Modernization Act of 2010 

and includes audited financial statements and accompanying documentation as 

mandated by the Accountability of Tax Dollars Act of 2002. 

FMSHRC is an independent adjudicatory agency that provides administrative trial and 

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

of 1977 (Mine Act), as amended. 

FMSHRC carries out its responsibilities through trial-level adjudication by administrative 

law judges and appellate review of judges’ decisions by a five-member Commission 

appointed by the President and confirmed by the Senate. Most cases involve civil 

penalties assessed against mine operators by the Department of Labor and address 

whether or not the alleged safety and health violations occurred and if so, the degree of 

gravity and negligence involved, so that appropriate sanctions may be imposed. 

FMSHRC has set forth the following strategic goals: 

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

Strategic Goal 2: Manage FMSHRC’s human resources, operations, facilities, and 

information technology systems to ensure a continually improving, 

effective, and efficient organization 

In Fiscal Year 2018, FMSHRC met the performance targets for all three trial level goals 

in the Office of the Administrative Law Judges. Of particular note, the Office of 

Administrative Law Judges outperformed its 2018 pendency goal (290 days) with a final 

average pendency of 257 days. The number of cases on hand also has been reduced 

significantly over the past several years, with 1,730 remaining at the end of FY 2018. 

At the appellate level, all of the FY 2018 goals were met. The Commission was able to 

resolve all but 6 cases on hand (down from a high of 69 cases pending at the end of FY 

2013). 

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Management Discussion and Analysis

MISSION AND ORGANIZATIONAL STRUCTURE 

The Federal Mine Safety and Health Review Commission (FMSHRC) an independent 

adjudicatory agency charged with resolving disputes arising from the enforcement of 

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). FMSHRC’s mission is to provide just, speedy, and legally sound 

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 scope of FMSHRC’s mission was expanded by the passage of the Mine 

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

That statute amended the Mine Act and vested FMSHRC 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 

imposed tight deadlines on FMSHRC and its judges with respect to these proceedings 

and FMSHRC has adopted procedural rules to implement those deadlines. 

FMSHRC consists of four organizational elements: 

 Office of the Chairman and Commissioners 

 Office of the General Counsel 

 Office of the Administrative Law Judges (OALJ) 

 Office of the Executive Director 

The majority of FMSHRC employees are stationed in Washington, DC. The OALJ has 

satellite offices in Pittsburgh, PA, and Denver, CO. 

FMSHRC carries out its responsibilities through trial-level adjudication by judges and 

appellate review of judges’ decisions by a five-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 or not the alleged safety and 

health violations occurred and if so, the penalty that should be assessed. 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. 
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Once a case is filed with FMSHRC, it is referred to the Chief Administrative Law Judge 

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

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

rule on certain motions and, where appropriate, issue orders of settlement, dismissal, or 

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

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

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

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

FMSHRC unless it is accepted for review by FMSHRC’s five-member Commission. 

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

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

initiative, direct cases for review. A grant of review in either case requires an affirmative 

vote of at least two Commissioners. The Commission’s decisions are precedential, and 

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

appeal. 

The Office of the Executive Director supports the above functions by providing budget 

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

resources and information technology, procurement and contracting, and facilities 

management. 
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PERFORMANCE GOALS 

FMSHRC has two strategic goals: 

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

Strategic Goal 2: Manage FMSHRC’s human resources, operations, facilities, and 

information technology systems to ensure a continually improving, 

effective, and efficient organization 

KEY CHALLENGES

FMSHRC’s overall management priority continues to be the expeditious, fair, and legally 

sound adjudication of cases at the trial and appellate levels. 

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

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

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

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

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

contesting those penalties. 

 Most of the cases accepted for review are generated from petitions filed by 

parties adversely affected by a judge’s decision. In addition, the Commission, on 

its own initiative, may decide to review a case. 

 In addition, the Commission at the appellate level considers requests to reopen 

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

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

FMSHRC faced significant challenges when the number of new cases received 

increased dramatically in recent years: the trial level cases increased by 170% from FY 

2007 to FY 2010. This backlog was the result of the increased contest rate since 2006. 

Then the appellate level cases increased by 380% from FY 2009 to FY 2011. This 

increase in new cases led to substantial backlogs in cases on hand. 

Through a combination of reengineered business processes, increased staffing, and a 

decline in the number of new contests filed, FMSHRC has been able to reduce the 

cases on hand. By the end of FY 2018, FMSHRC had essentially eliminated its trial 

case backlog, and was able to begin working to resolve each case as soon as a 

complete set of filings were received from all parties. 
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Per FMSHRC’s strategic plan goals, we continue to work to resolve cases as 

expeditiously as possible. FMSHRC has now sharpened its focus on the pendency of 

case dispositions. Pendency is defined as the time from receipt to disposition of cases. 

Pendency goals have been adopted for trial and appellate levels to ensure we continue 

to reduce the time each case remains with FMSHRC. 

 
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ANALYSIS OF FINANCIAL STATEMENTS 

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

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

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

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

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

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

Administrative Resource Center prepared FMSHRC’s FY 2018 financial statements, 

which include comparative data for FY 2017. The principal financial statements include 

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

Statement of Budgetary Resources. 

Analysis of the Balance Sheet 

FMSHRC’s assets in fiscal year 2018 were $7,070,525 as of September 30, 2018. The 

Fund Balance with Treasury of $6,906,613 represents FMSHRC’s largest asset as of 

September 30, 2018. This is a decrease of approximately 10 percent from fiscal year 

2017 and represents approximately 97 percent of the agency’s total assets. Property, 

Equipment, and Software accounts for approximately 2 percent of FMSHRC's total 

assets as of September 30, 2018. The net fixed asset value of $146,455 equals the cost 

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

FMSHRC’s liabilities in fiscal year 2018 totaled $2,721,622 as of September 30, 2018. 

This is an increase of $679,014 from the fiscal year 2017 balance of $2,042,608. 

Accounts payable balance at September 30, 2018, was $1,319,978, an increase of 

$917,990 from September 30, 2017. Accrued payroll liabilities, payroll taxes payable, 

and unemployment insurance decreased $7,758 in 2018. Unfunded annual leave 

decreased $98,053 in 2018 from 2017. Unfunded annual leave represents approximately 

18 percent of total agency liabilities. 

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

position for fiscal year 2018 decreased by $1,459,263 from fiscal year 2017. 

Analysis of Statement of Net Cost 

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

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

Review Commission. The total net cost of operations in 2018 was $17,149,270, which is 

an increase of $437,006 over the 2017 net cost of operations of $16,712,264, a change 

of approximately 3 percent. 
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Analysis of the Statement of Changes in Net Position 

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

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

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

decreased $1,459,263 in 2018 from 2017, 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 fiscal year 2018, FMSHRC had total budgetary resources of 

$21,060,984, which is $1,495,892 less than in 2017. 

Dollars in Thousands

FY 2018 FY 2017 $ %

Total Financing Sources $17,293 $16,504 $789 5%

Less: Net Cost $17,149 $16,712 $437 3%

Net Change of Cumulative Results of Operations $144 ‐$208 $352 169%

Assets:

Fund Balance With Treasury $6,907 $7,600 ($693) ‐9%

Accounts Receivable $17 $22 ($5) ‐23%

Property, Equipment, and Software $146 $230 ($84) ‐37%

Total Assets $7,070 $7,852 ($782) ‐10%

Liabilities

Accounts Payable ‐ Intergovernmental $71 $57 $14 25%

Other $1,402 $1,641 ($239) ‐15%

Accounts Payable $1,249 $345 $904 262%

Total Liabilities $2,722 $2,043 $679 33%

Net Position (Assets minus Liabilities) $4,348 $5,809 ($1,461) ‐25%

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

Table of Key Measures

COSTS

NET POSITION

Increase / (Decrease)
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MANAGEMENT ASSURANCES 

Analysis of Systems, Controls, and Legal Compliance 

FMSHRC is responsible for establishing and maintaining effective internal control over 

financial reporting, which includes safeguarding assets and complying with applicable 

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

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

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

provided by servicing agencies to meet 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 FMSHRC 

sufficient to assure that the performance and financial data included in this audit report 

are complete and reliable. 

All financial data reported were obtained from the FY 2018 accounting reports prepared 

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

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

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

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

data reported. 

The Administrative Resource Center has provided assurance that their financial 

management systems comply with Federal financial management system requirements, 

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

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

maintaining effective internal controls to support reliable financial reporting and 

compliance with applicable laws and regulations applicable to FMSHRC. 

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

operation of internal controls over financial reporting during FY 2018. During the audit of 

the financial statements the independent auditor did not identify any significant 

deficiencies or material weaknesses. The independent auditor has provided an 

unmodified opinion on the financial statements. 

Limitations of the Financial Statements 

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

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

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

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

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

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

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

 

Pursuant to the Fraud Reduction and Data Analytics Act of 2015 (Public Law 114-186, 

32 U.S. Code 3321), FMSHRC is reporting on its fraud reduction efforts for FY 2018 and 

the final quarter of FY 2018 in three key areas: 

1. Implementation of financial and administrative controls 

FMSHRC contracts with a shared service provider for financial, travel, human resources, 

and procurement services through an interagency agreement. FMSHRC’s payroll 

services are managed by another government agency through a shared services 

interagency agreement. This creates a built-in separation of functions for agency 

business, with several checks and balances. Internally, most financial transactions 

involve at least three support staff. 

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

Government (the GAO Green Book) 

Annually, FMSHRC completes the independent financial statement auditor’s 

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

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

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

FMSHRC. 

FMSHRC has a low risk of fraud in these areas: 

 Fraudulent financial reporting risk: Financial reporting is provided by an 

authorized shared financial provider. All financial reporting, including financial 

statements and necessary journal entries, is reviewed and approved by 

FMSHRC’s Executive Director, who serves as FMSHRC’s CFO, prior to 

submission to OMB. FMSHRC’s financial statements have been audited annually 

since 2003. 

 Misappropriation of assets: All assets are recorded in the general ledger, 

inventoried and tracked in automated software managed by FMSHRC. Proper 

sign out procedures are incorporated for all equipment and property being 

removed from the property. 
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 Waste of government resources and abuse of authority or position: The nature of 

the FMSHRC mission means most of the commission expenditures are on salary 

and benefits, and related variable expenses (facilities, IT services, etc.). The 

opportunities for fraud or waste are limited, as the commission has very few 

contracts, minimal travel expenses, and doesn’t otherwise expend federal funds 

through grants. FMSHRC has also ensured leadership and staff have required 

whistleblower training, including an understanding of how to report suspected 

wrongdoing to an independent party outside of FMSHRC. 

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

risk

FMSHRC utilizes automated time and attendance, procurement, contract payments, and 

travel and purchase card systems located within other agencies. FMSHRC has agency 

points of contact for purchase and travel cards, as does the financial service provider. 

The assigned FMSHRC staff reviews all travel receipts for reimbursement before 

approving travel vouchers, generally entered into the travel system by FMSHRC’s 

travelers and support staff. Travel service provider accountants reconcile FMSHRC’s 

Central Billing Account each month. 

Agency-specified types of vendors allowed for use are established under the 

procurement card program via the use of the Master Contract Codes. All other vendors 

will result in a card decline until the type of procurement is reviewed and access is given 

temporarily for the purchase. 

   
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Performance Section

PERFORMANCE GOALS AND RESULTS 

FMSHRC has set forth the following strategic goals: 

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

Strategic Goal 2: Manage FMSHRC’s human resources, operations, facilities, and 

information technology systems to ensure a continually improving, 

effective, and efficient organization 

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

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

strategic goal is accomplished through the Office of the Executive Director function. 

ADMINISTRATIVE LAW JUDGES FUNCTION 

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

trial level. The judges travel to hearing sites located at or near the mine involved in order 

to afford mine operators, miners, and their representatives a full opportunity to 

participate in the hearing process. FMSHRC judges are also responsible for evaluating 

and approving or denying settlement agreements proposed by the parties under the 

Mine Act. 

FMSHRC received 3,510 new case filings in FY 2018. The number of new cases was a 

six percent decrease from the 3,761 received in FY 2017. 

There were 2,834 cases pending at the start of FY 2018. In FY 2018 there were 4,614 

dispositions. 

The FY 2017 end-of-year inventory was 1,730 undecided cases. This was the eighth 

consecutive year that the number of pending cases was reduced by the end of the year. 

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

Law Judges function, as shown in the Performance Measurement Matrix. 
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ADMINISTRATIVE LAW JUDGES FUNCTION 

PERFORMANCE MEASUREMENT MATRIX 

Performance Metrics ‐ Office of the Administrative Law Judges Function   

Performance Goal

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

Average time from receipt to

disposition of all cases

(measured in days)

Target 458 401 300 300 290

Result 459 425 348 328 257

Status SM SM NM SM M

Average time from receipt to

disposition of penalty cases

(measured in days)

Target 425 401 330 330 280

Result 429 387 309 307 257

Status SM M M M M

Percent of all cases on hand

over 365 days in age

Target 40% 30% 20% 20% 15%

Result 28% 25% 21% 19%

Status M M SM M M

Number of cases pending at

year end Anticipated  ‐‐   ‐‐     4,200  

   

3,300  

  

2,429

Result   

6,278

  

4,452

   

3,058  

   

2,592  

  

1,730

Status    ‐‐   ‐‐  M   M   M

                    

Status:                  

M ‐ Target met or exceeded                  

SM ‐ Target substantially met ‐ within 10% of target               

NM ‐ Target not met         

        
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COMMISSION REVIEW FUNCTION 

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

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

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

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

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

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

reopen the final order. 

In recent years, FMSHRC’s appellate review function has seen a significant increase in 

the number of filings of both substantive and default cases. As a frame of reference, in 

FY 2008 (ten years ago), 8 petitions for review of judges’ decisions were filed, and 4 

petitions were granted. In FY 2018, 23 petitions were filed, and 15 were granted. 

Anticipating the potential loss of a quorum of Commissioners due to expiring terms, the 

Commission redoubled its efforts to resolve as many substantive and default cases as 

possible by August 30, 2018. The targets for substantive cases were met with regard to 

all five goals, as shown on the following performance measurement matrix. 

The pendency of all substantive cases (date granted to issuance of decision) was 12 

months in FY 2018, versus a goal of 15 months. 

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

2018, vice a goal of 9 months. 

In FY 2018, the Commission essentially eliminated the backlog of default cases, with 

only 28 remaining on hand at the end of the fiscal year. By the end of the fiscal year, all 

cases default cases on hand were less than six months old. 

The Commission disposed of 26 substantive cases and in FY 2018, ending the year with 

9 substantive cases on hand. The Commission resolved 83 default cases in FY 2018, 

ending the year with 28 on hand. 
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COMMISSION REVIEW FUNCTION 

PERFORMANCE MEASUREMENT MATRIX 

Performance Metrics ‐ Commission Review Function

Performance Goal

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

Average time from date granted to

issuance of decision for appellate

cases (measured in months)

Target 28 31 31 12 15

Result 27 26 22 15   12

Status M M M   NM M

Average time from briefing

completion to issuance of decision

for appellate cases (measured in

months)

Target 24 27 27 9 9

Result 24 24 19 13 9

Status M M M

NM M

Percent of appellate cases on hand

over 18 months in age

Target 40% 40% 40% 30% 20%

Result 49% 49% 11% 14% 11%

Status NM NM M M M

Percent of default cases on hand

over 6 months in age

Target 13% 12% 12% 30% 30%

Result 54% 59% 57% 56% 0%

Status NM NM NM NM M

Number of appellate cases pending

at year end

Anticipated ‐‐ ‐‐  19 18 16

Result 57 39 18 21 9

Status  ‐‐   ‐‐  M   NM M

        

Status:         

M ‐ Target met or exceeded         

SM ‐ Target substantially met ‐ within 10% of target      

NM ‐ Target not met         
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OFFICE OF THE EXECUTIVE DIRECTOR FUNCTION 

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

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

financial management, human resources, procurement and contracting, information 

technology, facilities management, and general administrative service support. 

The financial management services function includes the areas of budget and 

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

reporting, and vendor payments. 

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

and pay administration, performance management and incentive awards, employee 

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

and wellness and employee assistance programs. 

Procurement and contracting services cover maintaining a simplified acquisition program 

for supplies and services, contract implementation and oversight, and coordination of 

services and supplies. 

Information technology entails help-desk functions, network administration, policy 

formulation, and telecommunication. 

Facilities management services cover property and space management, organization 

management, and physical security. 

Other general administrative services provided by OED include the administration of 

employee travel authorizations and reimbursements and the Metro subsidy program. 
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2018 AND 2017

Prepared By

Brown & Company CPAs and Management Consultants, PLLC

November 13, 2018
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2018 AND 2017

TABLE OF CONTENTS

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

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

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

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

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

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

INDEPENDENT AUDITOR’S REPORT 

Federal Mine Safety Health and Review Commission

Washington, D.C.

In our audits of the fiscal years 2018 and 2017 financial statements of the Federal Mine Safety Health and 

Review Commission (“Commission”), we found

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

2018, and 2017, are presented fairly, in all material respects, in accordance with U.S. generally

accepted accounting principles;

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

procedures we performed; and

 no reportable noncompliance for fiscal year 2018 with provisions of applicable laws,

regulations, contracts, and grant agreements we tested.

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

requiredsupplementary information(RSI) andotherinformation included withthefinancialstatements;

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

regulations, contracts, and grant agreements.

Report on the Financial Statements

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

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

statements comprise the balance sheets as of September 30, 2018, and 2017; the related statements of

net cost, changes in net position, and budgetary resourcesfor the fiscal yearsthen ended; andthe related

notestothefinancialstatements.

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

believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit

opinions.

Management’sResponsibility

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

statements inaccordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and

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

presenting other information included in documents containing the audited financial statements and

auditor’s report, and ensuring the consistency of that information with the audited financial statements and

the RSI; and (4) maintaining effective internal control over financial reporting, including the design,

implementation, and maintenance of internal control relevant to the preparation and fair presentation of

financial statements that are free from material misstatement, whether due to fraud or error.
2

Auditor’s Responsibility

Our responsibility isto express an opinion on these financial statements based on our audits. U.S. generally

accepted government auditing standards require that we plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement. We are also

responsible for applying certain limited procedures to RSI and other information includedwith the financial

statements.

An audit offinancial statements involves performing proceduresto obtain audit evidence about the amounts

and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,

including the auditor’s assessment ofthe risks of material misstatement ofthe financial statements, whether

due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to

the entity’s preparation and fair presentation of the financial statements in order to design audit procedures

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

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit offinancial

statements also involves evaluating the appropriateness of the accounting policies used and the

reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall 

presentation of the financial statements. Our audits also included performing such other procedures as we

considered necessary in the circumstances.

Opinion on Financial Statements

In our opinion, t h e Commission’s financial statements present fairly, in all material respects, the 

Commission’s financial position as of September 30, 2018, and 2017, and its net cost of operations,

changes in net position, and budgetary resources for the fiscal years then ended in accordance with U.S.

generally accepted accounting principles.

Other Matters

RequiredSupplementary Information

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

Advisory Board (FASAB) require that the RSI be presented to supplement the financial

statements. Although the RSI is not a part of the financial statements, FASAB considers this

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

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

procedures to the RSI in accordance with U.S. generally accepted government auditing

standards, which consisted of inquiries of management about the methods of preparing the RSI

and comparing the information for consistency with management’s responses to the auditor's

inquiries, the financial statements, and other knowledge we obtained during the audit of the

financial statements, in order to report omissions or material departures from FASAB

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

express an opinion or provide any assurance on the RSI because the limited procedures we

applied do not provide sufficient evidence to express an opinion or provide any assurance.
3

Other Information

The Commission’s other information contains a wide range of information, some of which is

not directly related to the financial statements. This information is presented for purposes of

additional analysis and is not a required part of the financial statements or the RSI. We read the

other information included with the financial statements in order to identify material

inconsistencies, if any, with the audited financial statements. Our audit was conducted for the

purpose of forming an opinion on the Commission’s financial statements. We did not audit and

do not express an opinion or provide any assurance on the other information.

Report on Internal Control over Financial Reporting

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

Commission’s internal control over financial reporting, consistent with our auditor's responsibility

discussed below. We performed our procedures related to the Commission’s internal control over

financial reporting in accordance with U.S. generally accepted government auditing standards.

Management’s Responsibility

The Commission’s management isresponsible for maintaining effective internal control over financial

reporting, including the design, implementation, and maintenance of internal control relevant to the

preparation and fair presentation of financial statements that are free from material misstatement,

whether due to fraud or error.

Auditor’s Responsibility

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

ended September 30, 2018, in accordance with U.S. generally accepted government auditing standards,

we considered the Commission’s internal control over financial reporting as a basisfor designing audit

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the

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

Commission’s internal control over financial reporting. Accordingly, we do not express an opinion on

the Commission’s internal control over financial reporting. We are required to report all deficiencies

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

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

performance information and ensuring efficient operations.

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

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s 

financial statements will not be prevented, or detected and corrected on a timely basis. A significant 

deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a 

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

Definition and Inherent Limitations of Internal Control over Financial Reporting

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

governance, management, and other personnel, the objectives of which are to provide reasonable

assurance that (1) transactions are properly recorded, processed, and summarized to permit the

preparation of financial statements in accordance with U.S. generally accepted accounting principles,

and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2)

transactions are executed in accordance with provisions of applicable laws, including those governing

the use of budget authority, regulations, contracts, and grant agreements, noncompliance with which

could have a material effect on the financial statements.

Because of itsinherent limitations, internal control over financial reporting may not prevent, or detect

and correct, misstatements due to fraud or error.

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described above, and was not

designed to identify all deficiencies in internal control that might be material weaknesses and

significant deficiencies or to express an opinion on the effectiveness of the Commission’s internal 

control over financial reporting. Given these limitations, during our audit, we did not identify any

deficiencies in internal control over financial reporting that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

Intended Purpose of Report on Internal Control over Financial Reporting

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

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

opinion on the effectiveness of the Commission’s internal control over financial reporting. This report

is an integral part of an audit performed in accordance with U.S. generally accepted government

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

internal control over financial reporting is notsuitable for any other purpose.

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

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

selected provisions of applicable laws, regulations, contracts, and grant agreements consistent with

our auditor’s responsibility discussed below. We caution that noncompliance may occur and not be

detected by these tests. We performed our tests of compliance in accordance with U.S. generally

accepted government auditing standards.

Management’s Responsibility

The Commission’s management is responsible for complying with laws, regulations, contracts, and

grant agreements applicable to the Commission.
5

Auditor’s Responsibility

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

contracts, and grant agreements applicable to the Commission that have a direct effect on the

determination of material amounts and disclosures in the Commission’s financial statements, and 

perform certain other limited procedures. Accordingly, we did not test compliance with all laws,

regulations, contracts, and grant agreements applicable to the Commission.

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

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

agreements disclosed no instances of noncompliance for fiscal year 2018 that would be reportable

under U.S. generally accepted government auditing standards. However, the objective of our tests was

not to provide an opinion on compliance with laws, regulations, contracts, and grant agreements 

applicable to the Commission. Accordingly, we do not express such an opinion.

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

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

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

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

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

compliance. Accordingly, this report on compliance with laws, regulations, contracts, and grant

agreements is notsuitable for any other purpose.

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

and the U.S. Congress, and is not intended to be, and should not be, used by anyone other than these 

specified parties.

Largo, Maryland

November 13, 2018
The accompanying notes are an integral part of these financial statements.

6

2018 2017

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 6,906,613 $ 7,598,963

Total Intragovernmental 6,906,613 7,598,963

Accounts Receivable, Net (Note 3) 17,457 22,192

Property, Equipment, and Software, Net (Note 4) 146,455 229,619

Total Assets $ 7,070,525 $ 7,850,774

Liabilities:

Intragovernmental

Accounts Payable $ 70,955 $ 57,375

Other (Note 6) 617,363 745,839

Total Intragovernmental 688,318 803,214

Accounts Payable 1,249,023 344,613

Other (Note 6) 784,281 894,781

Total Liabilities (Note 5) $ 2,721,622 $ 2,042,608

Net Position:

Unexpended Appropriations - Other Funds $ 5,205,942 $ 6,808,524

Cumulative Results of Operations - Other Funds (857,039) (1,000,358)

Total Net Position $ 4,348,903 $ 5,808,166

Total Liabilities and Net Position $ 7,070,525 $ 7,850,774

BALANCE SHEET

AS OF SEPTEMBER 30, 2018 AND 2017

(In Dollars)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION
The accompanying notes are an integral part of these financial statements.

7

2018 2017

Program Costs:

Commission Review:

Gross Costs $ 7,659,628 $ 7,017,480

Net Program Costs $ 7,659,628 $ 7,017,480

Adminsitrative Law Judge:

Gross Costs $ 9,489,642 $ 9,694,784

Net Program Costs $ 9,489,642 $ 9,694,784

Net Cost of Operations $ 17,149,270 $ 16,712,264

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

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

8

2018 2017

Unexpended Appropriations:

Beginning Balances $ 6,808,524 $ 6,348,179

Budgetary Financing Sources:

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

Other Adjustments (2,255,255) (796,524)

Appropriations Used (16,531,327) (15,927,131)

Total Budgetary Financing Sources (1,602,582) 460,345

Total Unexpended Appropriations $ 5,205,942 $ 6,808,524

Cumulative Results of Operations:

Beginning Balances $ (1,000,358) $ (791,869)

Budgetary Financing Sources:

Appropriations Used 16,531,327 15,927,131

Other Financing Sources (Non-Exchange):

Imputed Financing Sources (Note 8) 761,262 576,644

Total Financing Sources 17,292,589 16,503,775

Net Cost of Operations (17,149,270) (16,712,264)

Net Change 143,319 (208,489)

Cumulative Results of Operations $ (857,039) $ (1,000,358)

Net Position $ 4,348,903 $ 5,808,166

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

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

9

2018 2017

Budgetary Resources:

Unobligated balance from prior year budget authority, net $ 3,876,984 $ 5,372,876

Appropriations 17,184,000 17,184,000

Total Budgetary Resources $ 21,060,984 $ 22,556,876

Memorandum (non-add) Entries:

Net adjustments to unobligated balance brought forward, Oct. 1 $ (2,935,860) $ (1,191,661)

Status of Budgetary Resources:

New obligations and upward adjustments (total) (Note 10) $ 16,397,882 $ 16,553,852

Unobligated balance, end of year:

 Apportioned, unexpired account (Note 2) 812,119 754,246

Expired unobligated balance, end of year (Note 2) 3,850,983 5,248,778

Unobligated balance, end of year (total) 4,663,102 6,003,024

Total Budgetary Resources $ 21,060,984 $ 22,556,876

Outlays, net:

Outlays, net, (total) $ 15,621,094 $ 15,983,200

Distributed Offsetting Receipts (959) (299)

Agency outlays, net $ 15,620,135 $ 15,982,901

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

(In Dollars)
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS

10

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES

A. Reporting Entity

The Federal Mine Safety and Health Review 

Commission (“the Commission”) is an 

independent Federal agency with the mission of 

providing administrative trial and appellate 

review of legal disputes arising under the 

Federal Mine Safety and Health Amendments 

Act of 1977, Public Law 91-173, amended by 

Public Law 95-164. The Commission reporting 

entity is comprised of General Funds and 

General Miscellaneous Receipts.

General Funds are accounts used to record 

financial transactions arising under 

congressional appropriations or other 

authorizations to spend general revenues. 

General Fund Miscellaneous Receipts are 

accounts established for receipts of nonrecurring activity, such as fines, penalties, fees 

and other miscellaneous receipts for services 

and benefits.

The Commission hasrights and ownership of all 

assets reported in these financial statements. 

The Commission does not possess any nonentity assets.

B. Basis of Presentation

The financial statements have been prepared to 

report the financial position and results of 

operations of the Commission. The Balance 

Sheet presents the financial position of the 

agency. The Statement of Net Cost presents the 

agency’s operating results; the Statement of 

Changes in Net Position displays the changes in 

the agency’s equity accounts. The Statement of 

Budgetary Resources presents the sources, 

status, and uses of the agency’s resources and 

follows the rules for the Budget of the United 

States Government.

The statements are a requirement of the Chief 

Financial Officers Act of 1990 and the 

Government Management Reform Act of 1994.

They have been prepared from, and are fully 

supported by, the books and records of the 

Commission in accordance with the hierarchy 

of accounting principles generally accepted in 

the United States of America, standards issued 

by the Federal Accounting Standards Advisory 

Board (FASAB), Office of Management and 

Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as amended, and the 

Commission accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control the Commission’s 

use of budgetary resources. The financial 

statements and associated notes are presented 

on a comparative basis. Unless specified 

otherwise, all amounts are presented in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual 

accounting basis and a budgetary basis. Under 

the accrual method, revenues are recognized 

when earned, and expenses are recognized 

when a liability is incurred, without regard to

receipt or payment of cash. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds.

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate 

amount of the Commission’s funds with 

Treasury in expenditure and receipt fund 

accounts. Appropriated funds recorded in 
11

expenditure accounts are available to pay 

current liabilities and finance authorized 

purchases. 

The Commission does not maintain bank 

accounts of its own, has no disbursing authority, 

and does not maintain cash held outside of 

Treasury. Treasury disburses funds for the 

agency on demand.

E. Accounts Receivable

Accounts receivable consists of amounts owed 

to The Commission by other Federal agencies 

and the general public. Amounts due from 

Federal agencies are considered fully 

collectible. Accounts receivable from the 

public include reimbursements from 

employees. An allowance for uncollectible 

accounts receivable from the public is 

established when, based upon a review of 

outstanding accounts and the failure of all 

collection efforts, management determines that 

collection is unlikely to occur considering the 

debtor’s ability to pay.

F. Property, Equipment, and Software

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. Major 

alterations and renovations are capitalized, 

while maintenance and repair costs are 

expensed as incurred. The Commission’s 

capitalization threshold is $50,000 for 

individual purchases and $500,000 for bulk 

purchases. Property, equipment, and software 

acquisitions that do not meet the capitalization 

criteria are expensed upon receipt. Applicable 

standard governmental guidelines regulate the 

disposal and convertibility of agency property, 

equipment, and software. The useful life 

classifications for capitalized assets are as 

follows:

Description Useful Life (years)

Leasehold Improvements Period of Lease

Office Equipment 5

G. Advances and Prepaid Charges

Advance payments are generally prohibited by 

law. There are some exceptions, such as 

reimbursable agreements, subscriptions and 

payments to contractors and employees. 

Payments made in advance of the receipt of 

goods and services are recorded as advances or 

prepaid charges at the time of prepayment and 

recognized as expenses when the related goods 

and services are received.

H. Liabilities

Liabilities represent the amount of funds likely 

to be paid by the Commission as a result of 

transactions or events that have already 

occurred.

The Commission reports its liabilities under two 

categories, Intragovernmental and With the 

Public. Intragovernmental liabilities represent 

funds owed to another government agency. 

Liabilities with the Public represent funds owed 

to any entity or person that is not a federal 

agency, including private sector firms and 

federal employees. Each of these categories 

may include liabilities that are covered by 

budgetary resources and liabilities not covered 

by budgetary resources.

Liabilities covered by budgetary resources are 

liabilities funded by a current appropriation or 

other funding source. These consist of accounts 

payable and accrued payroll and benefits. 

Accounts payable represent amounts owed to 

another entity for goods ordered and received 

and for services rendered except for employees. 

Accrued payroll and benefits represent payroll 

costs earned by employees during the fiscal year 

which are not paid until the next fiscal year.

Liabilities not covered by budgetary resources 

are liabilities that are not funded by any current 

appropriation or other funding source. These 

liabilities consist of accrued annual leave, 

deferred rent, and the amounts due to Treasury 

for collection and accounts receivable of civil 

penalties and FOIA request fees. Deferred rent 

is the difference at year-end between the sum of 
12

monthly cash disbursements paid to date for 

rent and the sum of the average monthly rent 

calculated based on the term of the lease.

I. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is adjusted 

to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and unused 

hours of leave. Funding will be obtained from 

future financing sources to the extent that 

current or prior year appropriations are not 

available to fund annual and other types of 

vested leave earned but not taken. Nonvested 

leave is expensed when used. Any liability for 

sick leave that is accrued but not taken by a 

Civil Service Retirement System (CSRS)-

covered employee is transferred to the Office of 

Personnel Management (OPM) upon the 

retirement of that individual. Credit is given for 

sick leave balances in the computation of 

annuities upon the retirement of Federal 

Employees Retirement System (FERS)-covered 

employees effective at 100%.

J. Accrued and Actuarial Workers’ 

Compensation

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought by 

the Commission employees for on-the-job 

injuries. The DOL bills each agency annually 

as its claims are paid, but payment of these bills 

is deferred for two years to allow for funding 

through the budget process. Similarly, 

employees that the Commission terminates 

without cause may receive unemployment 

compensation benefits under the unemployment 

insurance program also administered by the 

DOL, which bills each agency quarterly for paid 

claims. Future appropriations will be used for 

the reimbursement to DOL. The liability 

consists of the unreimbursed cost paid by DOL 

for compensation to recipients under the FECA.

K. Retirement Plans

The Commission employees participate in 

either the CSRS or the FERS. The employees 

who participate in CSRS are beneficiaries of the 

Commission matching contribution, equal to 

seven percent of pay, distributed to their annuity 

account in the Civil Service Retirement and 

Disability Fund.

Prior to December 31, 1983, all employees were 

covered under the CSRS program. From 

January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of pay 

and the Commission matches any employee 

contribution up to an additional four percent of 

pay. For FERS participants, the Commission 

also contributes the employer’s matching share 

of Social Security.

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, the Commission 

remits the employer’s share of the required 

contribution.

The Commission recognizes the imputed cost of 

pension and other retirement benefits during the 

employees’ active years of service. OPM 

actuaries determine pension cost factors by 

calculating the value of pension benefits 

expected to be paid in the future and 

communicate these factors to the Commission 

for current period expense reporting. OPM also 

provides information regarding the full cost of 

health and life insurance benefits. The 

Commission recognized the offsetting revenue 

as imputed financing sources to the extent these 

expenses will be paid by OPM.

The Commission does not report on its financial 

statements information pertaining to the 

retirement plans covering its employees. 
13

Reporting amounts such as plan assets, 

accumulated plan benefits, and related 

unfunded liabilities, if any, is the responsibility 

of the OPM, as the administrator.

L. Other Post-Employment Benefits

The Commission employees eligible to 

participate in the Federal Employees' Health 

Benefits Plan (FEHBP) and the Federal 

Employees' Group Life Insurance Program 

(FEGLIP) may continue to participate in these 

programs after their retirement. The OPM has 

provided the Commission with certain cost 

factors that estimate the true cost of providing 

the post-retirement benefit to current 

employees. The Commission recognizes a 

current cost for these and Other Retirement 

Benefits (ORB) at the time the employee's 

services are rendered. The ORB expense is 

financed by OPM, and offset by the 

Commission through the recognition of an 

imputed financing source. 

M. Use of Estimates

The preparation of the accompanying financial 

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts of 

assets, liabilities, revenues, and expenses. 

Actual results could differ from those estimates. 

N. 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. Commission

recognized imputed costs and financing sources 

in fiscal years 2018 and 2017 to the extent 

directed by accounting standards.
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS

14

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2018 and 2017, were as follows:

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

in the Treasury accounts.

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

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

unavailable balance as described in the following paragraph.

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

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

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

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

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

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

fund balance on hand (see also Note 11).

NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2018 and 2017, were as follows:
15

The accounts receivable is primarily made up of employee receivables. Historical experience has 

indicated that the majority of the receivables are collectible. There are no material uncollectible 

accounts as of September 30, 2018 and 2017.

NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2018

Schedule of Property, Equipment, and Software as of September 30, 2017

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the commission as of September 30, 2018 and 2017, include liabilities not 

covered by budgetary resources. Congressional action is needed before budgetary resources can 

be provided. Although future appropriations to fund these liabilities are likely and anticipated, it 

is not certain that appropriations will be enacted to fund these liabilities. 

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

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

payable to the DOL. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The 

balance in the accrued annual leave account is reviewed quarterly and adjusted as needed to 
16

accurately reflect the liability at current pay rates and leave balances. Accrued annual leave is 

paid from future funding sources and, accordingly, is reflected as a liability not covered by 

budgetary resources. Sick and other leave is expensed as taken. 

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

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

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

Penn Ave that had rent abatement provisions. 

NOTE 6. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2018 were as follows:

Other liabilities account balances as of September 30, 2017 were as follows:
17

NOTE 7. LEASES

Operating Leases

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

is accounted for as an operating lease. The lease term began on June 1, 2009 and expires on May 

31, 2019. Below is an estimated schedule of future payments, including estimated real estate taxes 

and operating expenses which are subject to annual adjustments.

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

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

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

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

adjustments. 

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

agreement that is accounted for as an operating lease. The lease term began on August 23, 2012 

and expires on August 22, 2022. This lease has deferred rent in the amount of $57,655 per month. 

Below is a schedule of future payments for the term of the lease, including estimated real estate 

taxes and operating expenses which are subject to annual adjustments.

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

options.
18

NOTE 8. IMPUTED FINANCING SOURCES

The Commission recognizes as imputed financing the costs of future benefits which include health 

benefits, life insurance, pension and post-retirement benefit expenses for current employees. The 

assets and liabilities associated with such benefits are the responsibility of the administering 

agency, OPM. For the years ending September 30, 2018 and 2017 imputed financing was as 

follows:

NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT

The President’s Budget that will include fiscal year 2018 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2019

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2019 Budget of 

the United States Government, with the "Actual" column completed for 2017, has been reconciled

to the Statement of Budgetary Resources and there were no material differences. 

In Millions 

NOTE 10. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2018 and 2017

consisted of the following:

Category A apportionments distribute budgetary resources by fiscal quarters.
19

NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2018, budgetary resources obligated for undelivered orders were as follows:

As of September 30, 2017, budgetary resources obligated for undelivered orders were as follows:

NOTE 12. CUSTODIAL ACTIVITY

The Commission’s custodial collection primarily consists of Freedom of Information Act requests. 

While these collections are considered custodial, they are neither primary to the mission of the 

commission nor material to the overall financial statements. The Commission’s total custodial 

collections are $1,034 and $56 for the year ended September 30, 2018, and 2017, respectively. 

NOTE 13. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET

The Commission has reconciled its budgetary obligations and non-budgetary resources available 

to its net cost of operations.