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U.S. ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF INSPECTOR GENERAL
L/.S. Chemical Safety Board
Audit of the U.S. Chemical Safety
and Hazard Investigation Board's
Fiscal Years 2014 and 2013
Financial Statements
Report No. 15-1-0022
November 17, 2014

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^tosr^ U.S. Environmental Protection Agency	15 1 0022
^ Office of Inspector General	November 17,2014
At a Glance
Why We Did This Review
We performed this audit in
accordance with the
Accountability of Tax Dollars
Act of 2002, which requires the
U.S. Chemical Safety and
Hazard Investigation Board
(CSB) to prepare, and the
Office of Inspector General
(OIG) to audit, the Board's
financial statements each year.
The U.S. Environmental
Protection Agency's OIG, which
also serves as the Inspector
General for CSB, contracted
with Brown and Company
CPAs, PLLC, to perform the
audit of the CSB's fiscal years
2014 and 2013 financial
statements.
This report addresses the
following CSB goal:
• Preserve the public trust
by maintaining and
improving organizational
excellence.
Audit of the U.S. Chemical Safety and Hazard
Investigation Board's Fiscal Years 2014 and 2013
Financial Statements
What Brown and Company Found
Brown and Company rendered an unmodified
opinion on the CSB's financial statements for fiscal
years 2014 and 2013, meaning that the statements
were fairly presented and free of material
misstatements.
The CSB received an
unmodified opinion
for its fiscal years
2014 and 2013
financial statements.
In planning and performing its audit, Brown and Company considered the CSB's
internal control over financial reporting. Brown and Company noted no matters
involving the internal control and the CSB operation that it considered to be a
material weakness. 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 in internal control, 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.
As part of obtaining reasonable assurance about whether the CSB's financial
statements are free of material misstatement, Brown and Company performed
tests of the CSB's compliance with certain provisions of laws and regulations,
contracts, and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. Brown
and Company's fiscal year 2014 audit disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing
Standards or Office of Management and Budget Bulletin No. 14-02.
Brown and Company is responsible for the attached auditor's report and the
conclusions expressed in the report. We do not express any opinion or
conclusions on the CSB's financial statements, internal control or compliance
with laws and regulations.
CSB's Comments
Send all inquiries to our public	The CSB agreed with Brown and Company's report,
affairs office at (202) 566-2391
or visit www.epa.gov/oia.
The full report is at:
www.epa.gov/oig/reports/2014/
20141117-15-1-0022.pdf

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^£DSX
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PRO**4,
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF
INSPECTOR GENERAL
November 17, 2014
The Honorable Rafael Moure-Eraso, Ph.D.
Chairperson and Chief Executive Officer
U.S. Chemical Safety and Hazard Investigation Board
2175 K Street, NW, Suite 400
Washington, DC 20037-1809
Subject: Report No. 15-1-0022, Audit of the U.S. Chemical Safety and Hazard Investigation Board's
Fiscal Years 2014 and 2013 Financial Statements
Dear Dr. Moure-Eraso:
This letter transmits the audit report on the U.S. Chemical Safety and Hazard Investigation Board's
(CSB's) fiscal years 2014 and 2013 financial statements. The audit is required by Public Law 107-289,
the Accountability of Tax Dollars Act of 2002.
The independent public accounting firm of Brown and Company CPAs, PLLC, performed the audit
of the CSB financial statements as of and for the fiscal years ended September 30, 2014 and 2013.
The audit was required to be done in accordance with Government Auditing Standards, issued by the
Comptroller General of the United States; Office of Management and Budget Bulletin No. 14-02,
Audit Requirements for Federal Financial Statements; and the Financial Audit Manual of the
Government Accountability Office/President's Council on Integrity and Efficiency.
Brown and Company CPAs, PLLC, is responsible for the enclosed auditor's report dated November 14,
2014, and the opinions and conclusions expressed in the report. We do not express any opinion or
conclusions on the CSB's financial statements, internal control or compliance with laws and regulations.
This report will be available at http://www.epa.gov/oig.
Sincerely,
Paul C. Curtis
Director, Financial Statement Audits
Enclosure

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cc: Daniel Horowitz, Ph.D., Managing Director, CSB
Elizabeth A. Robinson, Finance Director, CSB
Anna Brown, Director of Administration and Audit Coordinator, CSB
Richard Loeb, General Counsel, CSB
Kimberly Penn, Audit Manager, Brown and Company CPAs, PLLC
Gail Jenifer, Managing Partner, Brown and Company CPAs, PLLC

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BROWN & COMPANY CPAs, PLLC	==+¦
CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS
INDEPENDENT AUDITOR'S REPORT
Office of Inspector General
Chairman and CEO
U.S. Chemical Safety and Hazard Investigation Board
Washington, D.C.
Report on the Financial Statements
We have audited the accompanying balance sheets of the U.S. Chemical Safety and Hazard Investigation
Board (CSB) as of September 30, 2014 and 2013, and the related statements of net cost, changes in net
position, and budgetary resources, for the years then ended (collectively referred to as the financial
statements), and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
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
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the Office of Management and Budget
(OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements. Those standards and
OMB Bulletin No. 14-02, require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the 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 also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
1101 MERCANTILE LANE, SUITE 122 LARGO, MD 20774
PHONE: (240) 770-4900 FAX: (301) 773-2090 mail@brownco-cpas.com • www.browiico-cpas.com

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Opinion on the Financial Statements
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of CSB as of September 30, 2014 and 2013, and its net costs, changes in net position,
and budgetary resources for the years then ended, in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Accounting principles generally accepted in the United States of America require that the information in
the Management's Discussion and Analysis (MD&A) and Required Supplementary Information (RSI)
sections be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Federal Accounting Standards Advisory Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered CSB's internal control
over financial reporting (internal control) to design audit procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of CSB's internal control. Accordingly, we do not
express an opinion on the effectiveness of CSB's internal control.
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.
Our consideration of the internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be deficiencies,
significant deficiencies or material weaknesses. Given these limitations, during the audit we did not
identify any deficiencies in internal control that we consider to be a material weakness. However,
material weaknesses may exist that have not been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether CSB's financial statements are free from
material misstatement, we performed tests of its compliance with applicable provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
	 BROWN & COMPANY CPAS, PLLC ' """"""	>
2

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such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards or OMB Bulletin No. 14-02.
Management's Responsibility for Internal Control and Compliance
CSB's management is responsible for (1) evaluating effectiveness of internal control based on criteria
established under the Federal Managers Financial Integrity Act (FMFIA), (2) providing a statement of
assurance on the overall effectiveness of internal control, (3) ensuring CSB's financial management
systems are in substantial compliance with FFMIA requirements, and (4) ensuring compliance with other
applicable laws and regulations.
Auditor's Responsibilities
We are responsible for: (1) obtaining a sufficient understanding of internal controls to plan the audit, (2)
testing compliance with certain provisions of laws and regulations that have a direct and material effect
on the financial statements and applicable laws for which OMB Bulletin No. 14-02 requires testing, and
(3) applying certain limited procedures with respect to the MD&A and other RSI.
We did not evaluate all internal controls relevant to operating objectives as broadly established by the
FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations.
We limited our internal control testing to testing controls over financial reporting. Because of inherent
limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may
nevertheless occur and not be detected. We also caution that projecting our audit results to future periods
is subject to risk that controls may become inadequate because of changes in conditions or that the degree
of compliance with controls may deteriorate. In addition, we caution that our internal control testing may
not be sufficient for other purposes.
We did not test compliance with all laws and regulations applicable to CSB. We limited our tests of
compliance to certain provisions of laws and regulations that have a direct and material effect on the
financial statements and those required by OMB Bulletin No. 14-02 that we deemed applicable to CSB's
financial statements for the fiscal year ended September 30, 2014. We caution that noncompliance with
laws and regulations may occur and not be detected by these tests and that such testing may not be
sufficient for other purposes.
Purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance
and Other Matters
The purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance
and Other Matters sections of this report is solely to describe the scope of our testing of internal control
and compliance and the result of that testing, and not to provide an opinion on the effectiveness of CSB's
internal control or on compliance. These reports are an integral part of an audit performed in accordance
with Government Auditing Standards in considering CSB's internal control and compliance.
Accordingly, these reports are not suitable for any other purpose.
This report is intended solely for the information and use of the Office of Inspector General, the
management of CSB, OMB, and Congress, and is not intended to be and should not be used by anyone
other than these specified parties.
Largo, Maryland
November 14, 2014
BROWN & COMPANY CPAS, PLLC

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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
BALANCE SHEET
AS OF SEPTEMBER 30, 2014 AND 2013
(In Dollars)

2014
2013
Assets:


Intragovernmental


Fund Balance With Treasury (Note 2)
$ 4,019,604 $
1 4,563,364
T otal Intragovernmental
4,019,604
4,563,364
Accounts Receivable, Net (Note 3)
59,133
59,007
Property, Equipment, and Software, Net (Note 4)
21,095
43,094
Total Assets
r$ 4,099,832 $
1 4,665,465
Liabilities:


Intragovernmental


Accounts Payable
$ 78,721 $
1 41,959
Other (Note 6)
52,970
28,429
Total Intragovernmental
131,691
70,388
Accounts Payable
350,201
272,775
Other (Note 6)
671,679
747,869
Total Liabilities (Note 5)
$ 1,153,571 $
1 1,091,032
Net Position:


Unexpended Appropriations - Other Funds
$ 3,365,173 $
1 4,050,887
Cumulative Results of Operations - Other Funds
(418,912)
(476,454)
Total Net Position
$ 2,946,261 $
1 3,574,433
Total Liabilities and Net Position
$ 4,099,832 $
1 4,665,465
4

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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF NET COST
FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013
(In Dollars)

2014
2013 1
Program Costs:


Salaries and Expenses:


Gross Costs (Note 8)
$ 10,936,110 3
5 10,776,185
Net Cost of Operations
$ 10,936,110 3
5 10,776,185
5

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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF CHANGES IN NET POSITION
FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013
(In Dollars)

2014
2013
Cumulative Results of Operations:


Beginning Balances
$ (476,454) $
; (427,198)
Budgetary Financing Sources:


Appropriations Used
10,617,782
10,367,936
Other Financing Sources (Non-Exchange):


Imputed Financing Sources (Note 9)
375,870
358,993
Total Financing Sources
10,993,652
10,726,929
Net Cost of Operations (Note 8)
(10,936,110)
(10,776,185)
Net Change
57,542
(49,256)
Cumulative Results of Operations
$ (418,912) $
; (476,454)
Unexpended Appropriations:


Beginning Balances
$ 4,050,887 $
; 4,406,532
Budgetary Financing Sources:


Appropriations Received
11,000,000
11,129,165
Other Adjustments
(1,067,932)
(1,116,874)
Appropriations Used
(10,617,782)
(10,367,936)
Total Budgetary Financing Sources
(685,714)
(355,645)
Total Unexpended Appropriations
$ 3,365,173 $
; 4,050,887
Net Position
$ 2,946,261 $
; 3,574,433
6

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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF BUDGETARY RESOURCES
FOR THE YEARS ENDING SEPTEMBER 30, 2014 AND 2013
(In Dollars)

2014
2013
Budgetary Resources:


Unobligated Balance Brought Forward, October 1
$ 2,732,717 $
3,005,148
Recoveries of Prior Year Unpaid Obligations
185,059
243,948
Other changes in unobligated balance
(1,067,931)
(534,755)
Unobligated balance from prior year budget authority, net
1,849,845
2,714,341
Appropriations
11,000,000
10,547,043
Spending authority from offsetting collections
4,247
-
Total Budgetary Resources
$ 12,854,092 $
13,261,384
Status of Budgetary Resources:


Obligations Incurred (Note 11)
$ 10,963,009 $
10,528,667
Unobligated balance, end of year:


Apportioned
905,161
884,996
Unapportioned
985,922
1,847,721
Total unobligated balance, end ofyear
1,891,083
2,732,717
Total Budgetary Resources
$ 12,854,092 $
13,261,384
Change in Obligated Balance


Unpaid Obligations:


Unpaid Obligations, Brought Forward, October 1
$ 1,828,535 $
1,847,053
Obligations Incurred (Note 11)
10,963,009
10,528,667
Outlays (gross)
(10,477,964)
(10,303,237)
Recoveries of Prior Year Unpaid Obligations
(185,059)
(243,948)
Unpaid Obligations, End of Year (Gross)
2,128,521
1,828,535
Obligated Balance, End of Year
$ 2,128,521 $
1,828,535
Budget Authority and Outlays, Net:


Budget authority, gross
$ 11,004,247 $
10,547,043
Actual offsetting collections
(4,247)
-
Budget Authority, net, (total)
$ 11,000,000 $
10,547,043
Outlays, gross
$ 10,477,964 $
10,303,238
Actual offsetting collections
(4,247)
-
Agency outlays, net
$ 10,473,717 $
10,303,238
7

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CHEMICAL SAFETY AND HAZARD INVESTIGATION BOARD
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
A.	Reporting Entity
The United States Chemical Safety and Hazard
Investigation Board (CSB) is an independent
Federal agency with the mission of ensuring
the safety of workers and the public by
promoting chemical safety and accident
prevention. The CSB was established by the
Clean Air Act Amendments of 1990 and is
responsible for advising the President and
Congress on key issues related to chemical
safety and evaluating the effectiveness of other
Government agencies on safety requirements.
The CSB receives all of its funding through
appropriations. The CSB 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. The
CSB manages Operations and Facilities,
Engineering and Development General Fund
accounts.
General 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 CSB has rights and ownership of all assets
reported in these financial statements. The
CSB 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 CSB. 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 CSB 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
CSB 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 CSB s use of
budgetary resources. The financial statements
and associated notes are presented on a
comparative basis. Unless specified otherwise,
all amounts are presented in dollars.
C. Basis of Accounting
Transactions are recorded on both an accrual
accounting basis and a budgetary basis. Under
the accrual method, revenues are recognized
when earned, and expenses are recognized
when a liability is incurred, without regard to
receipt or payment of cash. Budgetary
accounting facilitates compliance with legal
requirements on the use of federal funds.
8

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D.	Fund Balance with Treasury
Fund Balance with Treasury is the aggregate
amount of the CSB's funds with Treasury in
expenditure, receipt, and deposit fund
accounts. Appropriated funds recorded in
expenditure accounts are available to pay
current liabilities and finance authorized
purchases.
The CSB does not maintain bank accounts of
its own, has no disbursing authority, and does
not maintain cash held outside of Treasury.
Treasury disburses funds for the agency on
demand. Foreign currency payments are made
either by Treasury or the Department of State
and are reported by the CSB in the U.S. dollar
equivalents.
E.	Accounts Receivable
Accounts receivable can consist of amounts
owed to the CSB 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 and a security deposit prior to 2003
which was reclassified to a receivable. 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 CSB's
capitalization threshold is $10,000 for
individual purchases and $50,000 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	Lease Term
Office Furniture	7
Office Equipment	5
Computer Equipment	3
Software	3
G. Liabilities
Liabilities represent the amount of funds likely
to be paid by the CSB as a result of
transactions or events that have already
occurred.
The CSB 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.
9

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These liabilities consist of accrued annual
leave and the amounts due to Treasury for
collection and accounts receivable of civil
penalties and Freedom of Information Act
(FOIA) request fees.
H.	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.
Non-vested 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 50%
beginning FY 2010 and 100% in 2014.
I.	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 CSB 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 CSB 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.
J. Retirement Plans
The CSB employees participate in either the
CSRS or the FERS. The employees who
participate in CSRS are beneficiaries of the
CSB 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 CSB matches any employee
contribution up to an additional four percent of
pay. For FERS participants, the CSB 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 CSB remits
the employer's share of the required
contribution.
The CSB 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 CSB for
current period expense reporting. OPM also
provides information regarding the full cost of
health and life insurance benefits. The CSB
recognized the offsetting revenue as imputed
financing sources to the extent these expenses
will be paid by OPM.
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The CSB 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.
K. Other Post-Employment Benefits
The CSB 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
CSB with certain cost factors that estimate the
true cost of providing the post-retirement
benefit to current employees. The CSB
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
CSB through the recognition of an imputed
financing source.
L. Use of Estimates
assumptions that affect the reported amounts
of assets, liabilities, revenues, and expenses.
Actual results could differ from those
estimates.
M. Imputed Costs/Financing Sources
Federal Government entities often receive
goods and services from other Federal
Government entities without reimbursing the
providing entity for all the related costs. In
addition, Federal Government entities also
incur costs that are paid in total or in part by
other entities. An imputed financing source is
recognized by the receiving entity for costs
that are paid by other entities. The CSB
recognized imputed costs and financing
sources in fiscal years 2014 and 2013 to the
extent directed by accounting standards.
N. Reclassification
Certain fiscal year 2013 balances have been
reclassified, retitled, or combined with other
financial statement line items for consistency
with the current year presentation.
The preparation of the accompanying financial
statements in accordance with generally
accepted accounting principles requires
management to make certain estimates and
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NOTE 2. FUND BALANCE WITH TREASURY
Fund balance with Treasury account balances as of September 30, 2014 and 2013 were as follows:


2014

2013 1
Fund Balances:
Appropriated Funds
Other Fund Types
$
4,019,604
$
4,561,252
2,112
Total
$
4,019,604
$
4,563,364
Status of Fund Balance with Treasury:
Unobligated Balance
Available
Unavailable
Obligated Balance Not Yet Disbursed
Non-Budgetary FBWT
$
905,161
985,922
2,128,521
$
884,996
1,847,721
1,828,535
2,112
Total
$
4,019,604
$
4,563,364
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 Note 12).
NOTE 3. ACCOUNTS RECEIVABLE
Accounts receivable balances as of September 30, 2014 and 2013 were as follows:


2014

2013 1
With the Public




Accounts Receivable
$
59,133
$
59,007
Total Accounts Receivable
$
59,133
$
59,007
The accounts receivable is primarily made up of a security deposit of $59,000 made prior to 2003, which
was reclassified to a receivable. The remaining accounts receivable balance is reimburse-ments due from
employees.
Historical experience has indicated that the majority of the receivables are collectible. There are no
material uncollectible accounts as of September 30, 2014 and 2013.
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NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE
Schedule of Property, Equipment, and Software as of September 30, 2014:



Ac cumulate d



Acquisition
Amo rtization/


Major Class

Cost
De pre ciation
Net Book Value
Leasehold Improvements
$
711,505
$
711,505
$
-
Furniture & Equipment

1,649,613

1,649,613

-
Software

131,270

117,499

13,771
C onstruction-in-Progre s s

7,324

N/A

7,324
Total
r
2,499,712
$
2,478,617
$
21,095|
Schedule of Property, Equipment, and Software as of September 30, 2013:



Accumulate d



Acquisition
Amortization/


Major Class

Cost
De pre ciation
Net Book Value
Leasehold Improvements
$
711,505
$
711,505
$
-
Furniture & Equipment

1,649,613

1,645,073

4,540
Software

131,271

92,717

38,554
Total
$
2,492,389
$
2,449,295
$
43,094
NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES
The liabilities for the CSB as of September 30, 2014 and 2013 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.


2014

2013 1
Unfunded Leave
$
440,141
$
519,551
Total Liabilities Not Covered by Budgetary Resources
Total Liabilities Covered by Budgetary Resources
$
440,141
713,430
$
519,551
571,481
Total Liabilities
~
1,153,571
$
1,091,0321
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.
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NOTE 6. OTHER LIABILITIES
Other liabilities account balances as of September 30, 2014 were as follows:

Current
Non Current
Total 1
Intragovernmeiital
Payroll Taxes Payable !
S 52,970
$
$ 52,970
Total Intragovernmeiital Other Liabilities !
S 52,970
$
$ 52,970
With the Public
Payroll Taxes Pay able !
Accrued Funded Payroll and Leave
Unfunded Leave
Custodial Liability
S 5,105
167,433
440,141
59,000
$
$ 5,105
167,433
440,141
59,000
Total Public Other Liabilities !
S 671,679
$
$ 671,679
Other liabilities account balances as of September 30, 2013 were as follows:

Current
Non Current
Total 1
Intr ago vernment al
Payroll Taxes Payable
$ 28,429
$
$ 28,429
Total Intragovernmeiital Other Liabilities
$ 28,429
$
$ 28,429|
With the Public
Payroll Taxes Payable
Accrued Funded Payroll and Leave
Unfunded Leave
Custodial Liability
$ 52,530
114,676
519,551
2,112
$
59,000
$ 52,530
114,676
519,551
61,112
Total Public Other Liabilities
$ 688,869
$ 59,000
$ 747,869|
NOTE 7. LEASES
Operating Leases
The CSB occupies offices in Washington, DC and Denver, CO under lease agreements. The total
operating lease expenses for the twelve months ended September 30, 2014 and 2013 were $1,064,570 and
$988,875, respectively. The CSB began sub4easing a portion of the DC office space in October 2012 for
$8,333 per month, ending in August 2014. Therefore, these collections have reduced their rent expense
by $91,667 and $100,000 as of September 30, 2014 and 2013, respectively.
The lease agreement for office space in Washington, DC is accounted for as an operating lease. In FY
2010, the CSB executed a supplemental lease agreement that amended the lease to renew it for a five-year
term commencing on October 1, 2010 and ending on September 30, 2015. 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.
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The CSB has plans to relocate its DC offices to a new location when the current lease expires. The
commencement date of this lease, along with any applicable termination and renewal rights, shall be more
specifically set forth in a lease amendment upon substantial completion and acceptance of the space by
the government.
Washington, DC
1 Fiscal Year

Building 1
2015
$
1,118,027
Total Future Payments
$
1,118,027 |
The two lease agreements for office space in Denver, CO are accounted for as operating leases. The first
lease term began on February 1, 2013 and the last will expire on September 30, 2019. In FY 2013 CSB
identified the need for a larger space to house all of the CSB's Denver employees contiguously, so a
move to a different building was planned for January 2014 but has been postponed to mid-November at
this point. At that time a new lease will be in effect that will extend five years.
Lease payments are increased annually based on the adjustments for operating cost. The CSB may
relinquish space upon four (4) months" notice. Thus, at any future time, the CSB's financial obligation can
be reduced to four (4) months of rent, plus the unamortized balance of any tenant improvements financed
through Public Buildings Service (PBS) plus any rent concessions not yet earned. Below is a schedule of
future payments for the Denver lease.
Denver. CO
Fiscal Year
2015
2016
2017
2018
2019
Building
86,878
88,845
96,693
97,684
98.696
Total Future Payments
468.796
NOTE 8. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE
Intragovernmental costs and revenue represent exchange transactions between the CSB and other federal
government entities, and are in contrast to those with non-federal entities (the public). Such costs and
revenue are summarized as follows:


2014

2013 1
Intragovernmental Costs
$
2,139,620
$
2,074,944
Public Costs

8,796,490

8,701,241
Net Program Costs
$
10,936,110
$
10,776,1851
NOTE 9. IMPUTED FINANCING SOURCES
The CSB recognizes as imputed financing the amount of accrued pension and post-retirement benefit
expenses for current employees. The assets and liabilities associated with such benefits are the
responsibility of the administering agency, OPM. For the fiscal years ended September 30, 2014 and
2013, respectively, imputed financing was as follows:
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2014
2013 1
Office of Personnel Management
$ 375,870
$ 358,993
Total Imputed Financing Sources
$ 375,870
$ 358,993
NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE UNITED
STATES GOVERNMENT
The President's Budget that will include fiscal year 2014 actual budgetary execution information has not
yet been published. The President's Budget is scheduled for publication in February 2015 and can be
found at the OMB Web site: htty://www.whitehouse.gov/omb/. The 2015 Budget of the United States
Government, with the "Actual" column completed for 2013, has been reconciled to the Statement of
Budgetary Resources and there were no material differences.
NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED
Obligations incurred and reported in the Statement of Budgetary Resources for 2014 and 2013 consisted
of the following:

2014
2013 1
Direct Obligations, Category B
$ 10,963,009
$ 10,528,667
Total Obligations Incurred
$ 10,963,009
$ 10,528,6671
Category B apportionments typically distribute budgetary resources by activities, projects, objects or a
combination of these categories.
NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD
For the fiscal years ended September 30, 2014 and 2013, budgetary resources obligated for undelivered
orders amounted to $1,474,089 and $1,318,167, respectively.
NOTE 13. CUSTODIAL ACTIVITY
The CSB's custodial collection primarily consists of Freedom of Information Act requests. While these
collections are considered custodial, they are neither primary to the mission of the CSB nor material to the
overall financial statements. The CSB's total custodial collections are $1,556 and $2,112 for the fiscal
years ended September 30, 2014, and 2013, respectively.
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NOTE 14. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET
The CSB has reconciled its budgetary obligations and non-budgetary resources available to its net cost of
operations.

2014
2013 1
Resources Used to Finance Activities:


Budgetary Resources Obligated


Obligations Incurred
$ 10,963,009
$ 10,528,667
Spending Authority From Offsetting Collections and Recoveries
(189,306)
(243,948)
Net Obligations
10,773,703
10,284,719
Other Resources


Imputed Financing From Costs Absorbed By Others
375,870
358,993
Net Other Resources Used to Finance Activities
375,870
358,993
Total Resources Used to Finance Activities
11,149,573
10,643,712
Resources Used to Finance Items Not Part of the Net Cost of


Operations
(242,659)
58,781
Total Resources Used to Finance the Net Cost of Operations
10,906,914
10,702,493
Components of the Net Cost of Operations That Will Not Require or


Generate Resources in the Current Period:
29,196
73,692
Net Cost of Operations
$10,936,110
$10,776,185
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