FEDERAL MINE SAFETY 

AND HEALTH 

REVIEW COMMISSION

PERFORMANCE AND ACCOUNTABILITY 

REPORT

FISCAL YEAR 2021

November 15, 2021
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Table of Contents

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

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

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

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

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

Analysis of Financial Statements .............................................................. 6

Management Assurances ......................................................................... 8

Fraud Reduction Report.................................................................9

Performance Section........................................................................................11

Performance Goals and Results ............................................................11

Administrative Law Judges Function .....................................................11

Commission Review Function .................................................................13

Office of Executive Director Function ......................................................15

Enclosure 1: Federal Mine Safety and Health Review Commission Independent 

Auditor’s Report and Financial Statements for the Years Ended 

September 30, 2021 and 2020
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Message from the Chair

November 15, 2021 

I am pleased to submit the Performance and Accountability Report for Fiscal Year 2021. 

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’s mission is to provide just, speedy, and 

legally sound adjudication of proceedings authorized under the Mine Act in a manner 

that deters noncompliance with the Act and ensures that a penalty once proposed and 

contested before the Commission is not compromised out of view of the public or without 

justification.

FMSHRC 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 MSHA, and address whether or not the 

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

civil penalties sufficient to deter operator noncompliance. The Commission is required by 

the Mine Act to review proposed penalty settlements between operators and the 

government to ensure that a penalty once proposed and contested before the 

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

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

reasons, miners’ requests for compensation after being idled by such orders, review of 

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

safety plans, miners’ complaints they suffered discrimination because they 

exercise protected safety rights, and allegations of interference with the exercise of such 

rights. Disputes involving the temporary reinstatement of a miner or an emergency 

response plan must be decided on an expedited basis. 

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

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

FMSHRC suspended in-person hearings, oral arguments, and public meetings and

continued conducting such proceedings via videoconference. These measures remained 

in place through 2021. Despite these significant challenges, FMSHRC continues to 

substantially meet trial and appellate case pendency times. FMSHRC developed and 

implemented a COVID-19 Agency Safety Plan in response to the executive order on 
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Protecting the Federal Workforce and Requiring Mask-Wearing and continues to prepare 

for a safe return of staff to agency offices and resumption of safe in-person proceedings. 

FMSHRC has taken proactive steps to become a more diverse and inclusive work 

environment. For example, in 2020 the Commission began an agency-wide Work

Environment Committee to enlist agency employees in these efforts. Additionally, over 

the past year, the agency has adopted new hiring and recruitment policies. We now 

recruit from law schools across the country, including Historically Black Colleges and 

Universities, as well as programs that promote applicants with disabilities. This ensures 

that recruitment includes a diverse group of candidates from which to hire. Additionally, 

FMSHRC is working to develop a more robust professional development program and a 

student loan repayment program designed to incentivize retention. Finally, we partnered 

with an outside consultant to both perform an audit of internal policies and recommend 

best-practices to achieve greater diversity, equity, inclusion and accessibility within our 

workplace.

For Fiscal Year 2021, FMSHRC 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 2021, FMSHRC met or substantially met the performance targets for all 

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

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

with 1001 remaining at the end of FY 2021. At the appellate level, FMSHRC met or 

substantially met its case targets for all five of its five goals. We are pleased to report the 

independent auditor’s opinion that the financial statements present fairly, in all material

aspects, FMSHRC’s financial position. No matters involving internal control were noted 

and no material internal control weaknesses were identified. It is my assessment that the

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

Arthur R. Traynor, III

Chair
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Management Discussion and Analysis 

MISSION AND ORGANIZATIONAL STRUCTURE 

The Federal Mine Safety and Health Review Commission (FMSHRC) is 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) and, with respect to Section 105(c)(3), to miners themselves.. 

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

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

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

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

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 meet these deadlines. 

FMSHRC consists of four organizational elements:

• Office of the Chair and Commissioners;

• Office of the General Counsel;

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

• Office of the Executive Director.

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

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

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 MSHA, and 

address whether the alleged safety and health violations occurred as well as the 

assessment of appropriate civil penalties sufficient to deter operator noncompliance. 
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The Commission is required by the Mine Act to review proposed penalty settlements 

between operators and the government to ensure that a penalty once proposed and 

contested before the Commission is not compromised out of view of the public or without 

justification. Other types of cases include contests of MSHA orders to close a mine for 

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

orders, review of MSHA’s approval or disapproval of operators’ emergency response 

and other mine safety plans, miners’ complaints they suffered discrimination because 

they exercised protected safety rights, and allegations of interference with the exercise 

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

emergency response plan must be decided on an expedited basis. 

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

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

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

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

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

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

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

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

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

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

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

initiative, direct cases for review. A grant of review 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 courts of appeals.

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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KEY PERSONNEL

ORGANIZATION CHART

PERFORMANCE GOALS

FMSHRC set two strategic goals for Fiscal Year 2021: 

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

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 and legally 

sound adjudication of proceedings authorized under the Mine Act in a manner that 

deters noncompliance with the Act and ensures that a penalty once proposed and 

contested before the Commission is not compromised out of view of the public or without 

justification.. 

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

its own initiative, may decide to review a case. 

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

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

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

Historically, FMSHRC faced a significant challenge when the number of new trial level 

cases filed increased by 170% from FY 2007 to FY 2010. FMSHRC also saw a related 

increase in appellate cases filed, with an increase of 380% from FY 2009 to FY 2011. 

These increases led to substantial trial and appellate level case backlogs. 

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. Our average time from receipt to 

disposition (i.e. pendency) of trial level cases increased from 161 days in 2020 to 196 

days in 2021. This is due to the processing of a large number of default cases in FY 

2021, many of which were a year or more old. FMSHRC also significantly reduced its 

appellate case inventory of substantive cases. FMSHRC is working to ensure systems, 

procedures, and staffing are able to resolve any future caseload spikes. 

The Commission continues to improve its capacity to handle cases, and retains flexibility 

to supplement staff as necessary at its Washington D.C. headquarters and satellite 

offices in Denver, CO and Pittsburgh, PA. 

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 2021 financial statements, 

which include comparative data for FY 2020. 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 2021 were $9,039,851 as of September 30, 2021. The 

Fund Balance with Treasury of $9,009,482 represents FMSHRC’s largest asset as of 
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September 30, 2021. This is an increase of approximately 2 percent from fiscal year 

2020 and represents approximately 99 percent of the agency’s total assets. Property, 

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

total assets as of September 30, 2021. The net fixed asset value of $25,901 equals the 

cost less accumulated depreciation and represents the current book value of those 

assets. 

FMSHRC’s liabilities in fiscal year 2021 totaled $2,748,249 as of September 30, 2021. 

This is an increase of $240,018 from the fiscal year 2020 balance of $2,508,231. 

Accounts payable balance at September 30, 2021, was $11,474,789 an increase of 

$153,571 from September 30, 2020 . Accrued payroll liabilities and payroll taxes 

increased $23,141. Unemployment insurance decreased $1,252 in 2021. Unfunded 

annual leave increased $66,242 in 2021 from 2020. Unfunded annual leave represents 

approximately 27 percent of total agency liabilities. 

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

position for fiscal year 2021 increased by $100,345 from fiscal year 2020. 

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 2021 was $16,339,230, which is 

a decrease of $33,531 from the 2020 net cost of operations of $16,372,761, a change of 

approximately less than 1 percent. 

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 $100,345 in 2021 from 2020, a change of approximately 2 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 2021, FMSHRC had total budgetary resources of 

$21,394,252, which is $1,107,465 less than in 2020.

Statement of Financial Impact due to COVID-19

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

financial statements during FY 2021. Therefore, no additional budgetary resources were 

required from the Office of Management and Budget (OMB). 
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FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

Table of Key Measures

Dollars in Thousands Increase (Decrease)

FY 2021 FY 2020 $ %

COSTS

Total Financing Sources $16,377 $16,329 $48 0.3%

 Less: Net Cost $16,339 $16,373 ($34) -0.2%

Net Change of Cumulative Results of Operations $38 ($44) $14 -32%

NET POSITION

Assets:

Fund Balance With Treasury $9,009 $8,838 $171 2%

Accounts Receivable $5 $2 $3 150%

Property, Equipment, and Software $26 $60 ($34) -57%

Total Assets: $9,040 $8,900 $140 2%

Liabilities:

Accounts Payable - Intergovernmental $389 $498 ($109) -22%

Other Liabilities - Intragovernmental $149 $142 $7 5%

Accounts Payable - With the Public $1,086 $823 $263 32%

Federal Employees Benefits Payable $751 $685 $66 10%

Other Liabilities - With the Public $373 $360 $13 4%

Total Liabilities: $2,748 $2,508 $240 10%

Net Position (Assets minus Liabilities) $6,292 $6,392 ($100) -2%

MANAGEMENT ASSURANCES

Analysis of Systems, Controls, and Legal Compliance

FMSHRC is responsible for establishing and maintaining effective internal control over 

financial reporting, which includes safeguarding assets and complying with applicable 

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

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

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

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

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

These services are supplemented by internal control procedures within FMSHRC

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

are complete and reliable.

All financial data reported were obtained from the FY 2021 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. 
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The Administrative Resource Center has provided assurance that their financial 

management systems comply with Federal financial management system requirements, 

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

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

maintaining effective internal controls to support reliable financial reporting and 

compliance with laws and regulations applicable to FMSHRC. 

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

operation of internal controls over financial reporting during FY 2021. During the audit of 

the financial statements the independent auditor did not identify any significant 

deficiencies or material weaknesses. The independent auditor has provided an 

unmodified opinion on the financial statements.

Limitations of the Financial Statements

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

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

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

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

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

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

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

FRAUD REDUCTION REPORT

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

32 U.S. Code 3321), FMSHRC is reporting on its fraud reduction efforts for FY 2021 and 

the final quarter of FY 2021 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 
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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. 

• 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, cybersecurity 

mandates, 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 approval is 

given temporarily for the purchase. 
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Performance Section

PERFORMANCE GOALS AND RESULTS

FMSHRC set forth the following strategic goals for Fiscal Year 2021:

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. 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, or provide virtual hearings where appropriate. FMSHRC judges 

are also responsible for evaluating and approving or denying settlement agreements 

proposed by the parties under the Mine Act.

FMSHRC received 1,813 new case filings in FY 2021. The number of new cases was an

eighteen percent decrease from the 2,213 received in FY 2020. 

There were 886 trial level cases pending at the start of FY 2021. In FY 2021 there were 

1,839 dispositions.

The FY 2021 end-of-year inventory was 1001 undecided cases.

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

1 Pendency in FY 2021 was 196, which is an increase from the FY 2020 pendency of 161. FY 2021 

pendency increased in part because of the Commission's processing of backlogged default cases, 

several of which were a year or more old. Without including the defaults, FY 2021 pendency 

would have been 171 days for all cases.

Performance Metrics - Office of the Chief Administrative Law Judges Function

Performance Goal FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Average time from receipt to 

disposition of all cases 

(measured in days)

Target 300 290 260 240 180

Result 3428 257 188 161 1961

Status SM M M M SM

Average time from receipt to 

disposition of penalty cases 

(measured in days)

Target 330 280 250 235 180

Result 307 257 175 153 184

Status M M M M SM

Percent of all cases on hand 

over 365 days in age

Target 20% 20% 20% 20% 20%

Result 19% 4% 4% 1% 11%

Status M M M M M

Number of cases pending at 

year end

Anticipated -- 3,300 2,429 1,723 1,730 886

Result 4,452 2,592 1,730 1,212 886 1,001

Status -- M M M M M

Status:

M - Target met or exceeded

SM - Target substantially met - within 10% of target

NM - Target not met
Federal Mine Safety and Health Review Commission 2021 PAR

COMMISSION REVIEW FUNCTION

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

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

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

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

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

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

reopen the final order. 

In FY 2021, 8 petitions were filed, and 4 were granted. The targets for substantive 

cases were met or substantially met with regard to all of the five goals, as shown on the 

following performance measurement matrix. 

The pendency of all substantive cases (date granted to issuance of decision) was 13

months in FY 2021, versus a goal of 13 months. Thus, the goal was met.

The average time from briefing completion to decision issuance was 10 months in FY

2021, which substantially met the goal of 9 months. 

In FY 2020, 144 default cases remained on hand at the end of that fiscal year. By the 

end of fiscal year 2021, the Commission had disposed of 148 default cases, including 

old and new cases. The Commission ended the year with 26 default cases on hand. This

reflected the agency’s commitment to reducing the backlog of default cases.

The Commission disposed of 12 substantive cases in FY 2021, ending the year with 5 

substantive cases on hand.

13
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COMMISSION REVIEW FUNCTION

PERFORMANCE MEASUREMENT MATRIX

Performance Metrics - Commission Review Function

Performance Goal FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Average time from date granted to 

issuance of decision for substantive 

cases (measured in months)

Target 12 15 15 15 13

Result 15 12 17 18 13

Status NM M NM NM M

Average time from briefing 

completion to issuance of decision 

for substantive cases (measured in 

months)

Target 9 9 9 12 9

Result 13 9 12 12 10

Status NM M NM M SM

Percent of substantive cases on 

hand over 18 months in age

Target 30% 20% 20% 20% 20%

Result 14% 11% 7% 12% 20%

Status M M M M M

Percent of default cases on hand 

over 6 months in age

Target 30% 30% 25% 25% 40%

Result 56% 0% 23% 40% 36%

Status NM M M NM M

Number of substantive cases 

pending at year end

Anticipated 18 16 16 16 16

Result 21 9 14 8 5

Status NM M 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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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 include 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, 

cybersecurity, 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, 2021 AND 2020

Prepared By

Brown & Company CPAs and Management Consultants, PLLC

November 12, 2021
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEARS ENDED

SEPTEMBER 30, 2021 AND 2020

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 2021 and 2020 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,

2021, and 2020, 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 2021 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) andotherinformationincluded 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 the Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No.

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

statements comprise the balance sheets as of September 30, 2021, and 2020; 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 and the 

provisions of OMB Bulletin No. 21-04, Audit Requirements for Federal Financial Statements. We believe

that the audit evidence we obtained issufficient and appropriate to provide a basisfor our audit opinions.

Management’sResponsibility

Commission 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, th e 

Commission’s financial position as of September 30, 2021, and 2020, 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 management is responsible 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, 2021, 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 ofthe 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 not suitable for any other purpose.

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

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

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

our auditor’s 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 management isresponsible 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 2021 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.

Greenbelt, Maryland

November 12, 2021
6

2021 2020

Assets:

Intragovernmental:

Fund Balance with Treasury (Note 2) $ 9,009,482 $ 8,837,894

Total Intragovernmental 9,009,482 8,837,894

With the Public:

Accounts Receivable, Net (Note 3) 4,468 1,952

General Property, Plant, and Equipment, Net (Note 4) 25,901 60,332

Total With the Public 30,369 62,284

Total Assets $ 9,039,851 $ 8,900,178

Liabilities (Note 5):

Intragovernmental:

Accounts Payable $ 388,599 $ 497,664

Other Liabilities (Note 6) 149,321 141,981

Total Intragovernmental 537,920 639,645

With the Public:

Accounts Payable 1,086,190 823,554

Federal Employee Benefits Payable 751,466 685,353

Other Liabilities (Note 6) 372,673 359,679

Total With the Public 2,210,329 1,868,586

Total Liabilities $ 2,748,249 $ 2,508,231

Net Position:

Unexpended Appropriations - Funds from Other than Dedicated Collections $ 7,113,962 $ 7,252,099

Total Unexpended Appropriations 7,113,962 7,252,099

Cumulative Results of Operations - Funds from Other than Dedicated Collections (822,360) (860,152)

Total Cumulative Results of Operations (822,360) (860,152)

Total Net Position 6,291,602 6,391,947

Total Liabilities and Net Position $ 9,039,851 $ 8,900,178

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2021 AND 2020

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

7

2021 2020

Gross Program Costs:

Commission Review:

Gross Costs $ 6,976,547 $ 6,862,515

Less: Earned Revenue (39) (63)

Net Program Costs $ 6,976,508 $ 6,862,452

Administrative Law Judge:

Gross Costs $ 9,372,793 $ 9,510,396

Less: Earned Revenue (10,071) (87)

Net Program Costs $ 9,362,722 $ 9,510,309

Net Cost of Operations $ 16,339,230 $ 16,372,761

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

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

8

2021 2020

Unexpended Appropriations:

Beginning Balances $ 7,252,099 $ 6,572,294

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

Other Adjustments (1,636,921) (809,591)

Appropriations Used (15,685,216) (15,694,604)

Net Change in Unexpended Appropriations (138,137) 679,805

Total Unexpended Appropriations - Ending $ 7,113,962 $ 7,252,099

Cumulative Results of Operations:

Beginning Balances $ (860,152) $ (815,976)

Appropriations Used 15,685,216 15,694,604

Imputed Financing (Note 8) 691,896 634,131

Other (90) (150)

Net Cost of Operations (16,339,230) (16,372,761)

Net Change in Cumulative Results of Operations 37,792 (44,176)

Cumulative Results of Operations - Ending $ (822,360) $ (860,152)

Net Position $ 6,291,602 $ 6,391,947

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

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

9

2021 2020

Budgetary Resources:

Unobligated balance from prior year budget authority, net (Note 9) $ 4,200,233 $ 5,317,717

Appropriations 17,184,000 17,184,000

Spending authority from offsetting collections 10,019 -

Total Budgetary Resources $ 21,394,252 $ 22,501,717

Status of Budgetary Resources:

New obligations and upward adjustments (total) $ 17,095,614 $ 16,793,703

Unobligated balance, end of year:

 Apportioned, unexpired accounts 1,077,198 1,366,257

Expired unobligated balance, end of year 3,221,440 4,341,757

Unobligated balance, end of year (total) 4,298,638 5,708,014

Total Budgetary Resources $ 21,394,252 $ 22,501,717

Outlays, Net and Disbursements, Net:

Outlays, net (total) $ 15,375,491 $ 15,781,842

Distributed Offsetting Receipts (136) (164)

Agency outlays, net $ 15,375,355 $ 15,781,678

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020

(In Dollars)
FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION 

NOTES TO THE FINANCIAL STATEMENTS

10

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

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

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

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

91-173, amended by Public Law 95-164. The Commission reporting entity is comprised of General 

Funds and General Miscellaneous Receipts. 

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

appropriations or other authorizations to spend general revenues. 

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

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

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

Commission does not possess any non-entity assets.

B. Basis of Presentation

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

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

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

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

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

the Budget of the United States Government.

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

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

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

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

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

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

amended, and the Commission accounting policies which are summarized in this note. These 

statements, with the exception of the Statement of Budgetary Resources, are different from 

financial management reports, which are also prepared pursuant to OMB directives that are used to 

monitor and control the Commission’s use of budgetary resources. The financial statements and 

associated notes are presented on a comparative basis. Unless specified otherwise, all amounts are 

presented in dollars.
11

C. Basis of Accounting

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

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

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

compliance with legal requirements on the use of federal funds.

D. Fund Balance with Treasury

FBWT is an asset of a reporting entity and a liability of the General Fund. It is the aggregate amount 

of the Commission’s funds with Treasury in expenditure and receipt fund accounts. Appropriated 

funds recorded in expenditure accounts are available to pay current liabilities and finance 

authorized purchases. 

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

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

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

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

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

E. Accounts Receivable

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

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

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

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

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

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

F. Property, Equipment, and Software

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

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

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

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

incurred. The Commission’s capitalization threshold is $50,000 for individual purchases and 

$500,000 for bulk purchases. Property, equipment, and software acquisitions that do not meet the 

capitalization criteria are expensed upon receipt. Applicable standard governmental guidelines 

regulate the disposal and convertibility of agency property, equipment, and software. The useful 

life classifications for capitalized assets are as follows:

Description Useful Life (years)

Leasehold Improvements Period of Lease

Office Equipment 5

G. Advances and Prepaid Charges

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

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

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

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

received.
12

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 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.
13

K. Retirement Plans

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

participate in CSRS are beneficiaries of the Commission matching contribution, equal to seven 

percent of pay, distributed to their annuity account in the Civil Service Retirement and Disability 

Fund.

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

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

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

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

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

pay and the Commission matches any employee contribution up to an additional four percent of 

pay. For FERS participants, the Commission also contributes the employer’s matching share of 

Social Security.

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

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

of the required contribution.

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

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

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

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

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

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

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

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

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

L. Other Post-Employment Benefits

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

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

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

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

employees. The Commission recognizes a current cost for these and Other Retirement Benefits 

(ORB) at the time the employee's services are rendered. The ORB expense is financed by OPM, 

and offset by the Commission through the recognition of an imputed financing source. 

M. Use of Estimates

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

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

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

those estimates.

N. Reclassification

Certain fiscal year 2020 balances have been reclassified, retitled, or combined with other financial 

statement line items for consistency with the current year presentation. 
14

O. Classified Activities

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

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

classified information.

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2021 and 2020, 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 10).

NOTE 3. ACCOUNTS RECEIVABLE, NET

Accounts receivable balances as of September 30, 2021 and 2020, were as follows:

The accounts receivable is 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, 2021 and 2020.

2021 2020

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 1,077,198 $ 1,366,257 

 Unavailable 3,221,440 4,341,757 

Obligated Balance Not Yet Disbursed 4,710,844 3,129,880 

Total $ 9,009,482 $ 8,837,894 

2021 2020

With the Public

Accounts Receivable $ 4,468 $ 1,952

Total Accounts Receivable $ 4,468 $ 1,952
15

NOTE 4. GENERAL PROPERTY, PLANT AND EQUIPMENT, NET

Schedule of General Property, Plant and Equipment, Net as of September 30, 2021:

Schedule of General Property, Plant and Equipment, Net as of September 30, 2020:

NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for the Commission as of September 30, 2021 and 2020, 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. 

The FECA liability represents the unfunded liability for actual workers compensation claims and 

unemployment benefits paid on the Commission’s behalf and payable to the DOL. 

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

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

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

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

resources. Sick and other leave is expensed as taken. 

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

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

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

Pennsylvania Avenue that had rent abatement provisions. 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 377,363 $ 351,462 $ 25,901

Furniture & Equipment 1,424,326 1,424,326 -

Total $ 1,801,689 $ 1,775,788 $ 25,901

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 377,363 $ 325,738 $ 51,625

Furniture & Equipment 1,424,326 1,415,619 8,707

Total $ 1,801,689 $ 1,741,357 $ 60,332

2021 2020

Intragovernmental – FECA $ 950 $ 950

Intragovernmental – Unemployment Insurance - 1,252

Unfunded Leave 728,307 662,065

Deferred Lease Liabilities 123,472 258,169

Total Liabilities Not Covered by Budgetary Resources $ 852,729 $ 922,436

Total Liabilities Covered by Budgetary Resources 1,895,520 1,585,795

Total Liabilities $ 2,748,249 $ 2,508,231
16

NOTE 6. OTHER LIABILITIES

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

Other liabilities account balances as of September 30, 2020 were as follows:

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 27,815 $ - $ 27,815

Employer Contributions and Payroll Taxes Payable 82,122 - 82,122

Other Post Employment Benefits Due and Payable 38,434 - 38,434

Unfunded FECA Liability 950 - 950

Total Intragovernmental Other Liabilities $ 149,321 $ - $ 149,321

With the Public

Accrued Funded Payroll and Leave $ 372,673 $ - $ 372,673

Total Public Other Liabilities $ 372,673 $ - $ 372,673

Total Other Liabilities $ 521,994 $ - $ 521,994

Current Non Current Total

Intragovernmental

Employer Contributions and Payroll Taxes Payable (without reciprocals) $ 24,619 $ - $ 24,619

Employer Contributions and Payroll Taxes Payable 75,660 - 75,660

Other Post Employment Benefits Due and Payable 39,500 - 39,500

Unfunded FECA Liability 950 - 950

Other Unfunded Employment Related Liability 1,252 - 1,252

Total Intragovernmental Other Liabilities $ 141,981 $ - $ 141,981

With the Public

Accrued Funded Payroll and Leave $ 359,190 $ - $ 359,190

Other Liabilities w/Related Budgetary Obligations 50 - 50

Withholdings Payable 439 - 439

Total Public Other Liabilities $ 359,679 $ - $ 359,679

Total Other Liabilities $ 501,660 $ - $ 501,660
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, 2019 and expires on May 31, 

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

operating expenses which are subject to annual adjustments.

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

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

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

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

adjustments. 

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

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

2012 and expires on August 22, 2022. This lease has deferred rent in the amount of $11,225 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.

Fiscal Year Building Equipment ADP Equipment Federal

2022 $ 147,667 $ - $ - $ 147,667 

2023 148,654 - - 148,654 

2024 149,661 - - 149,661 

2025 150,689 - - 150,689 

2026 151,739 - - 151,739 

Thereafter 409,868 - - 409,868 

Total Future Lease Payments $ 1,158,278 $ - $ - $ 1,158,278

Asset Category Totals

Fiscal Year Building Equipment ADP Equipment Federal

2022 $ 109,620 $ - $ - $ 109,620

2023 110,652 - - 110,652

Total Future Lease Payments $ 220,272 $ - $ - $ 220,272

Asset Category Totals

Fiscal Year Building Equipment ADP Equipment Federal

2022 $ 1,313,336 $ - $ - $ 1,313,336

Total Future Lease Payments $ 1,313,336 $ - $ - $ 1,313,336

Asset Category Totals
18

NOTE 8. INTER-ENTITY COSTS

The Commission recognizes certain inter-entity costs for goods and services that are received from 

other federal entities at no cost or at a cost less than the full cost. Certain costs of the providing 

entity that are not fully reimbursed are recognized as imputed cost and are offset by imputed 

revenue. Such imputed costs and revenues relate to employee benefits and claims to be settled by 

the Treasury Judgement Fund. The Commission recognizes as inter-entity costs the amount of 

accrued pension and post-retirement benefit expenses for current employees. The assets and 

liabilities associated with such benefits are the responsibility of the administering agency, OPM. 

For the periods ended September 30, 2021 and 2020, respectively, inter-entity costs were as 

follows: 

NOTE 9. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT 

FORWARD, OCTOBER 1

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for 

recoveries of prior year paid and unpaid obligations and other changes such as canceled authority. 

The Adjustments to Unobligated Balance Brought Forward, October 1, as of September 30, 2021, 

and 2020, consisted of the following:

NOTE 10. UNDELIVERED ORDERS AT THE END OF THE PERIOD

As of September 30, 2021 budgetary resources obligated for undelivered orders were as follows:

As of September 30, 2020, budgetary resources obligated for undelivered orders were as follows:

2021 2020

Office of Personnel Management $ 691,896 $ 634,131 

Total Imputed Financing Sources $ 691,896 $ 634,131 

2021 2020

Unobligated Balance Brought Forward From Prior Year, October 1 $ 5,708,014 $ 6,100,661 

Recoveries of Prior Year Obligations 129,140 26,647 

Other Changes in Unobligated Balances (1,636,921) (809,591)

Unobligated Balance From Prior Year Budget Authority, Net $ 4,200,233 $ 5,317,717 

Federal Non-Federal Total

Unpaid Undelivered Orders $ 207,014 $ 2,608,308 $ 2,815,322

Total Undelivered Orders $ 207,014 $ 2,608,308 $ 2,815,322

Federal Non-Federal Total

Unpaid Undelivered Orders $ 107,944 $ 1,436,141 $ 1,544,085

Total Undelivered Orders $ 107,944 $ 1,436,141 $ 1,544,085
19

New Obligations

Budgetary & Upward Net

Resources Adjustments Outlays

Combined Statement of Budgetary Resources $ 21 $ 15 $ 15

Unobligated Balance Not Available (4) - -

Difference - Due to Rounding - 2 -

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

NOTE 11. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE 

BUDGET OF THE U.S. GOVERNMENT

The President’s Budget that will include fiscal year 2021 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2022

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2022 Budget of 

the United States Government, with the “Actual” column completed for 2020, has been reconciled 

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

In Millions

NOTE 12. CUSTODIAL ACTIVITY

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

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

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

The Commission’s total custodial collections are $61 and $92 for the years ended September 30, 

2021, and 2020, respectively. 

NOTE 13. RECONCILIATION OF NET COST TO NET OUTLAYS

The reconciliation of net outlays, presented on a budgetary basis, and the net cost, presented on an 

accrual basis, provides an explanation of the relationship between budgetary and financial 

accounting information.

New Obligations

Budgetary & Upward Net

Resources Adjustments (Total) Outlays

Combined Statement of Budgetary Resources $ 23 $ 17 $ 16

Unobligated Balance Not Available (4) - -

Difference - Due to Rounding (1) (1) -

Budget of the U.S. Government $ 18 $ 16 $ 16
20

Reconciliation of Net Cost to Net Outlays as of September 30, 2021:
21

Reconciliation of Net Cost to Net Outlays as of September 30, 2020:

Intragovernmental With the Public Total 

Net Operating Cost (SNC) $ 5,576,277 $ 10,796,484 $ 16,372,761

Property, Plant, and Equipment Depreciation Expense - (40,650) (40,650)

Increase/(Decrease) in Assets:

Accounts Receivable, Net - (13,942) (13,942)

(Increase)/Decrease in Liabilities:

Accounts Payable (27,130) 262,667 235,537

Federal Employee Benefits Payable - (76,990) (76,990)

Other Liabilities (25,426) (35,467) (60,893)

Financing Sources:

Imputed Cost (634,131) - (634,131)

$ (686,687) $ 95,618 $ (591,069)

Distributed Offsetting Receipts (SBR 4200) - - (164)

Custodial/Non-Exchange Revenue 92 (92) -

Non-Entity Activity 150 - 150

$ 242 $ (92) $ (14)

$ 4,889,832 $ 10,892,010 $ 15,781,678

Budgetary Agency Outlays, Net $ 15,781,678

Components of Net Cost Not Part of the Budgetary Outlays

Total Components of Net Operating Cost Not Part of the 

Budgetary Outlays

Budgetary Agency Outlays, Net (SBR 4210)

Misc Items

Total Other Reconciling Items

Total Net Outlays (Calculated Total)