FEDERAL MINE SAFETY

AND HEALTH

REVIEW COMMISSION

PERFORMANCE AND 

ACCOUNTABILITY REPORT

FISCAL YEAR 2017

NOVEMBER 15, 2017
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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 ............................................................... 6

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

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

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

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

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

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

Financial Section .................................................................................................16

Independent Auditors’ Report ......................................................................17

Financial Statements and Notes .................................................................23
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Message from the Acting Chairman

November 15, 2017

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

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

Fiscal Year 2017. 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.

The Commission is an independent adjudicatory agency that provides administrative trial 

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

Act of 1977 (Mine Act), as amended. 

The Commission 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. 

The Commission has set forth the following strategic goals: 

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

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

information technology systems to ensure a continually improving, 

effective, and efficient organization

In Fiscal Year 2017, the Commission met or substantially met the performance targets 

for all four trial level goals in the Office of the Administrative Law Judges. It is significant 

that the goal for pendency of penalty cases again was met. The number of cases on 

hand has been reduced significantly over the past several years. In addition, this was the 

seventh year that the number of pending trial level cases was reduced from the previous

year. At the appellate level, four out of five targets were not met. However, it is 

significant that, although the goal was not reached for pendency of cases, the pendency 

was reduced by 32% from FY 2016. The number of cases on hand at year end was 

reduced from a high in FY 2013 of 69 to 21 this year.
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We are pleased to report the independent auditor’s opinion that the financial statements 

present fairly, in all material aspects, the financial position of the Commission, and that 

no matters involving internal control were noted and that no material internal control 

weaknesses were identified. It is my assessment that the financial and performance data 

in this report is reliable and complete. 

The Commission’s mission is to provide the 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. We remain 

committed to that mission. 

William I. Althen

Acting Chairman
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Management Discussion and Analysis

MISSION AND ORGANIZATIONAL STRUCTURE

The Federal Mine Safety and Health Review Commission 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). The Commission’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 the Commission’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 the Commission with the responsibility 

for resolving disputes over the contents of mine emergency plans adopted by 

underground coal mine operators and submitted to MSHA for review and approval. The 

MINER Act imposed tight deadlines on the Commission and its judges with respect to 

these proceedings and the Commission has adopted procedural rules to implement 

those deadlines.

The Commission 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 the Commission employees are stationed in Washington, DC. The OALJ 

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

The Commission 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 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 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. 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.

Organizational Chart
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PERFORMANCE GOALS

The Commission has two strategic goals:

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

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

information technology systems to ensure a continually improving, 

effective, and efficient organization

KEY CHALLENGES

The Commission’s overall management priority continues to be the expeditious, fair, and 

legally sound adjudication of cases at the trial and appellate levels. 

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

of new cases at both the trial and appellate levels is not subject to the control of the 

Commission. 

• Most trial level cases that come before the Commission 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.

The Commission faced significant challenges when the new cases received increased 

significantly 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 

reduction in new cases received, the Commission has been able to reduce the cases on 

hand. 

The Commission has now added a 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.
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ANALYSIS OF FINANCIAL STATEMENTS

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

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

Act of 2002, the Commission began annual audits in FY 2003. The Commission has 

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

auditor. 

The Commission 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 the Commission’s FY 2017 financial 

statements, which include comparative data for FY 2016. 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 

The Commission’s assets in fiscal year 2017 were $7,850,774 as of September 30, 

2017. The Fund Balance with Treasury of $7,598,963 represents the Commission’s 

largest asset as of September 30, 2017. This is an increase of approximately 6 percent 

from fiscal year 2016 and represents approximately 97 percent of the agency’s total 

assets. Property, Equipment, and Software accounts for approximately 3 percent of the 

Commission's total assets as of September 30, 2017. The net fixed asset value of 

$229,619 equals the cost less accumulated depreciation and represents the current 

book value of those assets. 

The Commission’s liabilities in fiscal year 2017 totaled $2,042,608 as of September 30, 

2017. This is a decrease of $168,578 from the fiscal year 2016 balance of $2,211,186. 

Accounts payable balance at September 30, 2017, was $401,988, a decrease of 

$61,829 from September 30, 2016. Accrued payroll liabilities, payroll taxes payable, and 

unemployment insurance increased $5,762 in 2017. Unfunded annual leave increased 

$22,681 in 2017 from 2016. Unfunded annual leave represents approximately 29

percent of total agency liabilities. 

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

position for fiscal year 2017 increased by $251,856 from fiscal year 2016. 

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 the Commission’s two major functions, Administrative Law Judges 

and Review Commission. The total net cost of operations in 2017 was $16,712,264

which is an increase of $586,152 over the 2016 net cost of operations of $16,126,112, a 

change of approximately 4 percent. 
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Analysis of the Statement of Changes in Net Position 

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

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

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

increased $251,856 in 2017 from 2016, a change of approximately 5 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 2017, the Commission had total budgetary resources of 

$22,556,876, which is $948,822 more than in 2016.

Dollars in Thousands

FY 2017 FY 2016 $ %

Total Financing Sources $16,504 $16,104 $400 2%

Less: Net Cost $16,712 $16,126 $586 4%

Net Change of Cumulative Results of Operations -$208 -$22 -$186 -845%

Assets:

Fund Balance With Treasury $7,599 $7,195 $404 6%

Accounts Receivable $22 $72 ($50) -69%

Property, Equipment, and Software $230 $501 ($271) -54%

Total Assets $7,851 $7,768 $83 1%

Liabilities

Accounts Payable - Intergovernmental $57 $54 $3 6%

Other $1,641 $1,747 ($106) -6%

Accounts Payable $345 $410 ($65) -16%

Total Liabilities $2,043 $2,211 ($168) -8%

Net Position (Assets minus Liabilities) $5,808 $5,557 $251 5%

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

The Commission is responsible for establishing and maintaining effective internal control 

over financial reporting, which includes safeguarding assets and complying with 

applicable laws and regulations. As a micro independent agency, the Commission must 

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

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

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

internal control procedures within the Commission sufficient to assure that the 

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

All financial data reported were obtained from the FY 2017 accounting reports prepared 

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

Resource Center, the Commission’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. 

The Commission 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 the Commission. 

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

operation of internal controls over financial reporting during FY 2017. 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 books and records of the Commission 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), the Commission is reporting on its fraud reduction efforts for FY 

2017 and the final quarter of FY 2016 in three key areas:

1. Implementation of financial and administrative controls

The Commission has built- in separation of duties with a contractual financial, travel, 

human resources, and procurement services provider at another agency through an 

interagency agreement, and a second federal agency for payroll processing. 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, the Commission 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 the 

Commission. 

The Commission 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 the 

Commission’s Executive Director, who serves as the Commission’s CFO, prior to 

submission to OMB. The Commission’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 the Commission.

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: Staff has 

been provided information in regards to Whistleblower training, so they know how 

to protect themselves from repercussions related to reporting wrongdoing.

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

risk

The Commission utilizes automated time and attendance, procurement, contract 

payments, and travel and purchase card systems located within other agencies. The 

Commission has agency points of contact for purchase and travel cards, as does the 
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financial service provider. The assigned Commission staff reviews all travel receipts for 

reimbursement before approving travel vouchers, generally entered into the travel 

system by the Commission’s travelers and support staff. Travel service provider 

accountants reconcile the Commission’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

The Commission has set forth the following strategic goals:

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

Strategic Goal 2: Manage the Commission’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

The Commission 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. Commission judges are also responsible for 

evaluating and approving or denying settlement agreements proposed by the parties 

under the Mine Act.

The Commission received 3,761 new case filings in FY 2017. The number of new cases 

was a five percent decrease from FY 2016. 

There were 3,058 cases pending at the start of FY 2017. In FY 2017 there were 4,227

dispositions.

The FY 2017 end-of-year inventory was 2,592 undecided cases. This was the seventh

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

The Commission 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

CASE WORKLOAD

ADMINISTRATIVE LAW JUDGES FUNCTION

PERFORMANCE MEASUREMENT MATRIX

Performance Goal FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Target -- 458 401 300 300

Result 463 459 425 348 328

Status -- M SM NM SM

Target 525 425 401 330 330

Result 433 429 387 309 307

Status Met M M M M

Target 45% 40% 30% 20% 20%

Result 43% 28% 25% 21% 19%

Status M M M SM M

Target -- -- -- 4,200 3,300 

Result 7,612 6,278 4,452 3,058 2,592 

Status -- -- -- M M

Status:

M - Target met or exceeded

NM - Target not met

Performance Metrics - Office of the Administrative Law Judges Function

Average time from receipt to disposition of all 

cases (measured in days)

Average time from receipt to disposition of 

penalty cases (measured in days)

Percent of all cases on hand over 365 days in 

age

SM - Target substantially met - within 10% of target

Number of cases pending at year end
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COMMISSION REVIEW FUNCTION

The Commission 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, the Commission’s appellate review function has seen a significant 

increase in the number of filings of both substantive and default cases. The trend of this 

higher number of petitions being filed for substantive review is likely to continue for the 

foreseeable future. In FY 2008, 8 petitions for review of judges’ decisions were filed, and 

4 petitions were granted. In FY 2017, 35 petitions were filed, and 17 were granted.

The increase in petitions filed by parties and granted by the Commission has had a 

significant impact on the Office of General Counsel, which is responsible for conducting 

the initial research in substantive cases and preparing draft opinions for the 

Commissioners.

The targets for substantive cases were met with regard to one 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 15 

months in FY 2017, not meeting the ambitious goal of 12 months. However, this does 

show significant progress, in that the goal had been reduced from 31 months in FY 

2016, and the actual pendency was a 32% reduction from FY 2016.

The average time from briefing completion to decisions issuance was not met, with an 

actual of 13 months versus a target of 9 months. This performance was also a significant 

improvement from FY 2016. The goal for FY 2017 was nine months, versus the FY 2016 

goal of 27 months. In addition, the average time also was reduced 32% from FY 2016. 

The percent of default cases on hand remained at a high level in FY 2017. The default 

case process was redesigned at the end of FY 2017, and it is expected that this new 

process will enable the Commission to reach the target level in FY 2018. 

The Commission disposed of 31 substantive cases in FY 2017, ending the year with 21

cases on hand.
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COMMISSION REVIEW FUNCTION

CASE WORKLOAD - SUBSTANTIVE CASES

COMMISSION REVIEW FUNCTION

PERFORMANCE MEASUREMENT MATRIX

Performance Goal FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Target -- 28 31 31 12

Result 24 27 26 22 15

Status -- M M M NM

Target -- 24 27 27 9

Result 21 24 24 19 13

Status -- M M M NM

Target -- 40% 40% 40% 30%

Result 43% 49% 49% 11% 14%

Status -- NM NM M M

Target 15% 13% 12% 12% 30%

Result 13% 54% 59% 57% 56%

Status M NM NM NM NM

Target -- -- -- 19 18

Result 69 57 39 18 21

Status -- -- -- M NM 

Status:

M - Target met or exceeded

NM - Target not met

SM - Target substantially met - within 10% of target

Average time from date granted to issuance of 

decision for appellate cases (measured in 

months)

Average time from briefing completion to 

issuance of decision for appellate cases 

(measured in months)

Percent of appellate cases on hand over 18 

months in age

Percent of default cases on hand over 6 

months in age

Number of appellate cases pending at year end

Performance Metrics - Commission Review Function
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OFFICE OF THE EXECUTIVE DIRECTOR FUNCTION

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

the Commission in fulfilling 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.
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FINANCIAL SECTION
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