# Q
I® | U.S. ENVIRONMENTAL PROTECTION AGENCY
%%PR0^ OFFICE OF INSPECTOR GENERAL
U.S. Chemical Safety Board
Audit of the U.S. Chemical Safety
and Hazard Investigation Board's
Fiscal Years 2017 and 2016
Financial Statements
Report No. 18-F-0040
November 15, 2017

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• B \
U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
18-F-0040
November 15, 2017
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 Allmond & Company, LLC,
to perform the audit of the
CSB's fiscal years 2017 and
2016 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 2017 and 2016
Financial Statements
What Allmond & Company Found
Allmond & Company rendered an unmodified opinion on
the CSB's financial statements for fiscal years 2017 and
2016, meaning that the statements were fairly presented
and free of material misstatements.
The CSB received
an unmodified
opinion on its
fiscal years 2017
and 2016 financial
statements.
In planning and performing its audit, Allmond & Company
considered the CSB's internal control over financial
reporting. Allmond & Company noted no matters involving the internal control and
the CSB operation that it considered to be a material weakness or a significant
deficiency.
As part of obtaining reasonable assurance about whether the CSB's financial
statements are free of material misstatement, Allmond & 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. Allmond
& Company's fiscal years 2017 and 2016 audit disclosed no instances of
noncompliance or other matters that are required to be reported.
Allmond & Company is responsible for the enclosed 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.
Allmond & Company made no recommendations to CSB.
Send all inquiries to our public
affairs office at (202) 566-2391
or visit www.epa.gov/oiq.
Listing of OIG reports.

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WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
November 15, 2017
The Honorable Vanessa Allen Sutherland
Chairperson and Member
U.S. Chemical Safety and Hazard Investigation Board
1750 Pennsylvania Avenue NW, Suite 910
Washington, D.C. 20006
RE: Report No. 18-F-0040, Audit of the U.S. Chemical Safety and Hazard Investigation Board's
Fiscal Years 2017 and 2016 Financial Statements
Dear Ms. Sutherland:
This letter transmits the audit report on the U.S. Chemical Safety and Hazard Investigation Board's
(CSB's) fiscal years 2017 and 2016 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 Allmond & Company, LLC, performed the audit of the CSB
financial statements as of and for the fiscal years ended September 30, 2017 and 2016. The audit was
required to be done in accordance with Government Auditing Standards, issued by the Comptroller
General of the United States; and Office of Management and Budget Bulletin No. 17-03,
Audit Requirements for Federal Financial Statements.
Allmond & Company is responsible for the enclosed auditor's report dated November 14, 2017, 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.
Action Required
Because this report contains no recommendations, you are not required to respond to this report.
However, if you submit a response, it will be posted on the OIG's public website, along with our
memorandum commenting on your response. Your response will be posted on the Office of Inspector
General's public website, along with our letter commenting on your response. Your response should be
provided as an Adobe PDF file that complies with the accessibility requirements of Section 508 of the
Rehabilitation Act of 1973, as amended. The final response should not contain data that you do not want
to be released to the public; if your response contains such data, you should identify the data for
redaction or removal along with corresponding justification.

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We will post this report to our website at www.epa.gov/oig.
Sincerely,
Paul C. Curtis
Director, Financial Statement Audits
Enclosure

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CSB - 2017 Financial Statement Audit
Contract: GS23F0111L/EPG16H00321
Chemical Safety and Hazard Investigation Board (CSB)
Fiscal Year 2017 Financial Statement Audit
Final Independent Auditors' Report
Submitted for review and acceptance to:
Robert L. Smith
Contracting Officer's Representative (COR)
Chemical Safety and Hazard Investigation Board
William Jefferson Clinton West Building
Washington, DC 20004
Submitted by:
Jason L. Allmond CPA, CGFM, CISA, CISM
Member
Allmond & Company, LLC
8181 Professional Place, Suite 250
Landover, MD 20785
301-918-8200
jallmond@allmondcpa.com
Final Independent Auditors' Report
Prepared under contract to the Environmental Protection Agency (EPA) Office of Inspectors General (OIG) to
provide financial auditing services

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U.S. CHEMCIAL SAFETY AND HAZARD INVESTIGATION BOARD
AUDIT REPORT
SEPTEMBER 30, 2017

s-nTafr
ALLMOND & COMPANY, LLC
Certified Public Accountants
8181 Professional Place, Suite 250
Landover, Maryland 20785
(301) 918-8200

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Independent Auditors' Report
Chairman and CEO U.S. Chemical Safety and Hazard Investigation Board
Inspector General, Environmental Protection Agency:
Report on the Financial Statements
We have audited the accompanying financial statements of the Chemical Safety and Hazard Investigation
Board (CSB), which comprise the balance sheet as of September 30, 2017 and 2016, the related statement
of net cost, statement of changes in net position, and combined statement of budgetary resources for the
year ended, and the related notes to the financial statements (hereinafter referred to as 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 U.S. generally accepted accounting principles; this includes the design, implementation,
and maintenance of internal control relevant to the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on the fiscal year 2017 and 2016 financial statements of CSB
based on our audits. We conducted our audits in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and OMB Bulletin No. 17-03,
Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin No. 17-03
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risk 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.
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Independent Auditors' Report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Chemical Safety and Hazard Investigation Board as of September 30, 2017 and
2016, and its net costs, changes in net position, and budgetary resources for the year then ended, in
conformity with generally accepted accounting principles in the United States of America.
Other Information
The information in the Message from the Chairperson and Management and Discussion Analysis section
of this report is not a required part of the basic financial statements, but is supplementary information
required by U.S. generally accepted accounting principles. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and
presentation of this information. However we did not audit this information and, accordingly, we express
no opinion on it.
Other Reporting Required by Government Auditing Standards
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements as of and for the year ended September
30, 2017, we considered CSB's internal control over financial reporting by obtaining an understanding of
CSB's internal control, determining whether internal control had been placed in operation, assessing
control risk, and performing tests of control to determine auditing procedures for the purpose of
expressing our opinion on the financial statements, but not to provide an opinion on the effectiveness of
CSB's internal control over financial reporting. Accordingly, we do not express an opinion on CSB's
internal controls over financial reporting. We limited internal control testing to those necessary to achieve
the objectives described in OMB Bulletin No. 17-03. We did not test all internal control relevant to
operating objectives as broadly defined by the Federal Managers' Financial Integrity Act of 1982.
Our consideration of internal control over financial reporting was for the limited purpose as described in
the paragraph above and was not designed to identify all deficiencies in internal control over financial
reporting that might be a control deficiency, significant deficiency, or material weakness.
A control 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 misstatement on a timely basis. A significant deficiency is a control deficiency or a
combination of control deficiencies, that adversely affects CSB's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the CSB's financial statements that is
more than inconsequential will not be prevented or detected. A material weakness is a significant
deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a
material misstatement of the financial statements will not be prevented or detected.
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Independent Auditors' Report
In our fiscal year 2017 audit, we did not identify any deficiencies in internal control over financial
reporting that we considered to be a material weakness or significant deficiency, as defined above.
However, we noted two additional matters that we will report to CSB management in a separate letter.
Exhibit I presents the status of prior year findings and recommendations.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether CSB's fiscal year 2017 financial statements are
free of material misstatements, we performed tests of CSB's compliance with certain provisions of laws
and regulations, contracts and grant agreements which noncompliance with could have a direct and
material effect on the determination of the consolidated financial statement amounts, and certain
provisions of other laws specified in OMB Bulletin No. 17-03. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion.
The results of our tests of compliance as described in the preceding paragraph, disclosed no instances of
noncompliance or other matters that are required to be reported herein under Government Auditing
Standards or OMB Bulletin No. 17-03.
Purpose of the Other Reporting Required by Government Auditing Standards
The purpose of the communication described in the Other Reporting Required by Government Auditing
Standards section 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. This communication is an integral part of an audit performed in accordance with U.S.
generally accepted government auditing standards in considering in internal controls and compliance with
laws and regulations which could have a material effect on CSB's financial statements. Accordingly, this
communication is not suitable for any other purpose.
November 12, 2017
Landover, MD
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Independent Auditors' Report
Exhibit I
Status of Prior Year Findings
The following table provides the fiscal year (FY) 2017 status of all recommendations included in the
Independent Auditors' Report on the Chemical Safety and Hazard Investigation Board's FY 2016
Financial Statements (November 14, 2016).
FY 2016
Finding

FY 2016 Recommendation
FY 2017
Status
Internal
Controls over
Financial
Reporting
Recommendation:
Improve its internal controls over financial reporting and compliance.
Specifically, we recommend that management:


1.
Update Note 9 Budgetary Resource Comparisons to the Budget of
the United States Government to include a schedule and
explanation of the material difference of $ 1 million for Net Outlays
between the SBR and President's Budget.
Closed

2.
Design and implement policy or procedure to review the note
disclosures prepared by the service organization to validate the
completeness and accuracy of information presented in the
financial statements.
Closed

3.
Design and implement a policy or procedure to review the
computed imputed costs to validate the completeness and accuracy
of the amount recorded in the general ledger.
Closed

4.
Enhance current policies and procedures over the review of the
accruals recorded, by including in their review a comparison
between disbursements made in the subsequent fiscal year and the
accruals recorded by the service organization. If a significant
difference exists, notify the service provider to conduct research to
determine the appropriate corrective action.
Closed
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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
BALANCE SHEET
AS OF SEPTEMBER 30,2017 AND 2016
(In Dollars)

2017
2016
Assets:
Intragovernmental
Fund Balance With Treasury (Note 2)
$ 4,021,980
$ 3,932,331
Total Intragovernmental
4,021,980
3,932,331
Accounts Receivable, Net (Note 3)
Property, Equipment, and Software, Net (Note 4)
4,098
423,370
513,638
Total Assets
$ 4,449,448
$ 4,445,969
Liabilities:
Intragovernmental
Accounts Payable
Other (Note 6)
$ 36,045
56,699
$ 37,469
57,789
Total Intragovernmental
92,744
95,258
Accounts Payable
Federal Employee and Veterans' Benefits (Note 5)
Other (Note 6)
426,122
4,146
750,032
281,578
3,908
660,796
Total Liabilities
$ 1,273,044
$ 1,041,540
Net Position:
Unexpended Appropriations - Other Funds
Cumulative Results of Operations - Other Funds
$ 3,250,368
(73,964)
$ 3,281,832
122,597
Total Net Position
$ 3,176,404
$ 3,404,429
Total Liabilities and Net Position
$ 4,449,448
$ 4,445,969
The accompanying notes are an integral part of these statements.
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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF NET COST
FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016
(In Dollars)

2017
2016 1
Program Costs:


Gross Costs (Note 8)
$ 11,232,345
$ 10,234,456
Net Cost of Operations
$ 11,232,345
$ 10,234,456
The accompanying notes are an integral part of these statements.
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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF CHANGES IN NET POSITION
FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016
(In Dollars)

2017
2016
Cumulative Results of Operations:
Beginning Balances
$ 122,597
$ (23,110)
Budgetary Financing Sources:
Appropriations Used
10,803,864
10,088,628
Other Financing Sources (Non-Exchange):
Imputed Financing Sources
231,920
291,535
Total Financing Sources
Net Cost of Operations (Note 8)
11,035,784
(11,232,345)
10,380,163
(10,234,456)
Net Change
(196,561)
145,707
Cumulative Results of Operations
$ (73,964)
$ 122,597
Unexpended Appropriations:
Beginning Balances
$ 3,281,832
$ 2,571,752
Budgetary Financing Sources:
Appropriations Received
Other Adjustments
Appropriations Used
11,000,000
(227,600)
(10,803,864)
11,000,000
(201,292)
(10,088,628)
Total Budgetary Financing Sources
(31,464)
710,080
Total Unexpended Appropriations
$ 3,250,368
$ 3,281,832
Net Position
$ 3,176,404
$ 3,404,429
The accompanying notes are an integral part of these statements.
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U.S. CHEMICAL SAFETY & HAZARD INVESTIGATION BOARD
STATEMENT OF BUDGETARY RESOURCES
FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016
(In Dollars)

2017
2016
Budgetary Resources:


Unobligated Balance Brought Forward, October 1
$ 1,691,099
$ 1,491,716
Recoveries of Prior Year Unpaid Obligations
227,355
300,095
Other changes in unobligated balance
(211,512)
(196,568)
Unobligated balance from prior year budget authority, net
1,706,942
1,595,243
Appropriations
11,000,000
11,000,000
Total Budgetary Resources
$ 12,706,942
$ 12,595,243
Status of Budgetary Resources:


New obligations and upward adjustments (total) (Note 10)
$ 10,976,069
$ 10,904,144
Unobligated balance, end of year:


Apportioned, unexpired account
876,985
940,987
Expired unobligated balance, end of year (Note 2)
853,888
750,112
Unobligated balance, end of year (total)
1,730,873
1,691,099
Total Budgetary Resources
$ 12,706,942
$ 12,595,243
Change in Obligated Balance


Unpaid Obligations:


Unpaid Obligations, Brought Forward, October 1
$ 2,241,232
$ 1,762,634
New obligations and upward adjustments (Note 10)
10,976,069
10,904,144
Outlays (gross)
(10,698,839)
(10,125,451)
Recoveries of Prior Year Unpaid Obligations
(227,355)
(300,095)
Unpaid Obligations, End of Year (Gross)
2,291,107
2,241,232
Budget Authority and Outlays, Net:


Budget authority, gross
$ 11,000,000
$ 11,000,000
Actual offsetting collections
(16,088)
(4,725)
Recoveries of prior year paid obligations
16,088
4,725
Budget Authority, net, (total)
$ 11,000,000
$ 11,000,000
Outlays, gross
$ 10,698,839
$ 10,125,451
Actual offsetting collections
(16,088)
(4,725)
Distributed Offsetting Receipts
480
61,560
Agency outlays, net
$ 10,683,231
$ 10,182,286
The accompanying notes are an integral part of these statements.
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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
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 and the Government
Management Reform Act of 1994. They have been prepared from, and are fully supported by, the books
and records of 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 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 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.
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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 CSB in the U.S.
dollar equivalents.
E.	Accounts Receivable
Accounts receivable consists of amounts owed to 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. 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. 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:
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.
Description
Leasehold Improvements
Office Furniture
Office Equipment
Computer Equipment
Software
Useful Life (years)
Lease Term
7
5
3
3
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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
actuarial FECA, and the amounts due to Treasury for collection and accounts receivable of civil penalties
and 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 100%.
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 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 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.
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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.
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
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.
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 2017 and 2016 to the extent directed by accounting standards.
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NOTE 2. FUND BALANCE WITH TREASURY
Fund balance with Treasury account balances as of September 30, 2017 and 2016, were as follows:


2017

2016 1
Fund Balances:
Appropriated Funds

4,021,980

3,932,331
Total
$
4,021,980
	$_
3,932,331
Status of Fund Balance with Treasury:
Unobligated Balance
Available
Expired Unavailable
Obligated Balance Not Yet Disbursed
$
876,985
853,888
2,291,107
$
940,987
750,112
2,241,232
Total
$
4,021,980
$
3,932,331
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 expired unavailable
balance as described in the following paragraph.
The unavailable unobligated fund balances represent the amount of appropriations for which the period of
availability for obligation has expired. These balances are available for upward adjustments of
obligations incurred only during the period for which the appropriation was available for obligation or for
paying claims attributable to the appropriations.
The obligated balance not yet disbursed includes accounts payable, accrued expenses, and undelivered
orders that have reduced unexpended appropriations but have not yet decreased the fund balance on hand
(see also Note 11).
NOTE 3. ACCOUNTS RECEIVABLE
Accounts receivable balances as of September 30, 2017 and 2016, were as follows:

2017
2016 1
With the Public


Accounts Receivable
$ 4,098
$
Total Accounts Receivable
$ 4,098
$
The accounts receivable was made up of reimbursements 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, 2017 and 2016.
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NOTE 4. PROPERTY, EQUIPMENT, AND SOFTWARE
Schedule of Property, Equipment, and Software as of September 30, 2017:


Accumulated


Acquisition
Amortization/
Net Book
Major Class
Cost
Depreciation
Value
Leasehold Improvements
$ 983,356
$ 865,554
$ 117,802
Furniture & Equipment
1,083,819
896,657
187,162
Software
313,694
195,288
118,406
Total
$ 2,380,869
$ 1,957,499
$ 423,370 |
Schedule of Property, Equipment, and Software as
of September 30, 2016:



Accumulated


Acquisition
Amortization/
Net Book
Major Class
Cost
Depreciation
Value
Leasehold Improvements
$ 983,356
$ 811,184
$ 172,172
Furniture & Equipment
1,096,282
867,200
229,082
Software
246,864
134,480
112,384
Total
$ 2,326,502
$ 1,812,864
$ 513,638 |
NOTE 5. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES
The liabilities for the CSB as of September 30, 2017 and 2016, 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.

2017
2016 1
Intragovernmental — FECA $
1,020
$ 1,020
Unfunded Leave
496,266
386,113
Actuarial FECA
4,146
3,908
Total Liabilities Not Covered by Budgetary Resources $
501,432
$ 391,041
Total Liabilities Covered by Budgetary Resources
771,612
650,499
Total Liabilities $
: 1,273,044
$ 1,041,540|
The CSB records an actuarial liability for future workers compensation claims based on the liability to
benefits paid (LBP) ratio provided by DOL and multiplied by the average of benefits paid over three
years.
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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.
NOTE 6. OTHER LIABILITIES
Other liabilities account balances as of September 30, 2017 were as follows:

Current Non Current
Total 1
Int rago vernment al
FECA Liability !
Payroll Taxes Pay able
£ 1,020 $
55,679
$ 1,020
55,679
T otal Int rago vernment al Other Liabilities !
£ 56,699 $
$ 56,699
With the Public
P ay roll T axes P ay able !
Accrued Funded Payroll and Leave
Unfunded Leave
£ 23,075 $
230,691
496,266
$ 23,075
230,691
496,266
Total Public Other Liabilities !
£ 750,032 $
$ 750,032
Other liabilities account balances as of September 30, 2016 were as follows:

Current Non Current
Total 1
Int rago vernment al
FECA Liability
Payroll T axes Pay able
$ 1,020 $
56,769
$ 1,020
56,769
Total Intragovernmental Other Liabilities
$ 57,789 $
$ 57,789
With the Public
Payroll Taxes Pay able
Accrued Funded Payroll and Leave
Unfunded Leave
$ 32,153 $
242,530
386,113
$ 32,153
242,530
386,113
Total Public Other Liabilities
$ 660,796 $
$ 660,796
NOTE 7. LEASES
Operating Leases
The CSB occupies offices in Washington, DC and Denver, CO under lease agreements, which are both
accounted for as operating leases.
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The Washington DC lease agreement has a ten-year term commencing on October 1, 2015 and ending on
September 30, 2025. The total operating lease expense for the years ended September 30, 2017 and 2016
were $656,868 and $587,742, respectively. According to Section 1.03 of this agreement, beginning in the
4th year of the lease and continuing through the 10th year of the lease, the first two (2) months of rent in
each year (totaling 14 months of free rent) shall be entirely abated. Below is a schedule of future
payments for the term of the lease, which except for FY 2018 excludes annual adjustments to real estate
taxes and operating expenses.
Washington, DC
Fiscal Year
2018
2019
2020
2021
2022
Thereafter
Building
677,615
545,997
545,997
545,997
545,997
1,637,993
Net Future Payments
4,499,596
The Denver, CO lease agreement is for a period of 60 months commencing on or about
December 1, 2014. The total operating lease expense for the years ended September 30, 2017 and 2016
were $95,433 and $86,659, respectively. 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
1 Fiscal Year
Building 1
2018
$ 97,729
2019
98,742
2020 (2 months)
16,511
Total Future Payments
$ 212,982|
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:

2017
2016 1
Intragovernmental Costs
$ 2,312,500
$ 2,347,903
Public Costs
8,919,845
7,886,553
Total Net Cost
$ 11,232,345
$ 10,234,4561
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NOTE 9. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE UNITED
STATES GOVERNMENT
The President's Budget that will include fiscal year 2017 actual budgetary execution information has not
yet been published. The President's Budget is scheduled for publication in February 2018 and can be
found at the OMB Web site: htty://www.whitehouse.gov/omb/. The Chemical Safety and Hazard
Investigation Board Budget Appendix can be found on the OMB website:
http://www.whitehouse.sov/omb/budset. The 2018 Budget of the United States Government, with the
"Actual" column completed for 2016, has been reconciled to the Statement of Budgetary Resources and
there were no material differences.
For the Fiscal Year Ended September 30, 2016 (In millions)



Distributed


Budgetary
Obligations
Offsetting
Net
FY2016
Resources
Incurred
Receipts
Outlays
Statement of Budgetary Resources
$13,000,000
$11,000,000
$
$10,000,000
Unobligated Balance Not Available
(1,000,000)



Budget of the U.S. Government
$12,000,000
$11,000,000
$
$10,000,000
NOTE 10. APPORTIONMENT CATEGORIES OF NEW OBLIGATIONS AND UPWARD
ADJUSTMENTS
New obligations and upward adjustments are reported in the Statement of Budgetary Resources in 2017
and 2016 consisted of the following:

2017
2016 1
Direct Obligations, Category B
$ 10,976,069
$ 10,904,144
Total Obligations Incurred
$ 10,976,069
$ 10,904,1441
Category B apportionments typically distribute budgetary resources by activities, projects, objects or a
combination of these categories.
NOTE 11. UNDELIVERED ORDERS AT THE END OF THE PERIOD
As of September 30, 2017 and 2016, budgetary resources obligated for undelivered orders amounted to
$1,519,494 and $1,590,733, respectively.
NOTE 12. CUSTODIAL ACTIVITY
The CSB's custodial collection primarily consists of Freedom of Information Act requests typically. For
2016, they collected a $59,000 rent deposit from a lease agreement prior to 2003. 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 $3,188 and $61,560 for the years ended
September 30, 2017, and 2016, respectively.
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NOTE 13. 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.

2017
2016 1
Resources Used to Finance Activities:


Budgetary Resources Obligated


New Obligations and Upward Adjustments 5
I 10,976,069
$ 10,904,144
Spending Authority From Offsetting Collections and Recoveries
(243,443)
(304,820)
Obligations Net of Offsetting Collections and Recoveries
10,732,626
10,599,324
Other Resources


Imputed Financing From Costs Absorbed By Others
231,920
291,535
Total Resources Used to Finance Activities
10,964,546
10,890,859
Total Resources Used to Finance Items Not Part of the Net Cost of Operations
4,409
(753,062)
Total Resources Used to Finance the Net Cost of Operations
10,968,955
10,137,797
Total Components of the Net Cost of Operations That Will Not Require or


Generate Resources in the Current Period:
263,390
96,659
Net Cost of Operations 5
I 11,232,345
$ 10,234,456
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