ML20044B668
| ML20044B668 | |
| Person / Time | |
|---|---|
| Issue date: | 12/07/1992 |
| From: | Michael Scott NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | Goldberg T LABOR, DEPT. OF |
| Shared Package | |
| ML20044B669 | List: |
| References | |
| CON-NRC-09-92-201, CON-NRC-9-92-201 NUDOCS 9303010151 | |
| Download: ML20044B668 (7) | |
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US Department of Labor Attn:
Theodore Goldberg, Contracting Officer 0%.
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Office of Inspector General 200 Constitution Avenue NW, Room S-5508 Washington, DC 20210
Dear Mr. Goldberg:
Subject:
Modification No.1 to 1steragency Agreement No. t'RC-09-92-201 Entitled " Financial Review ar.d Assessment" This modification provides additional funding to Interagency Agreement No.
NRC-09-92-201 dated January 31, 1992, extends the perioc' of performance for said agreement and revises the Memorandum of Understanding between the Department of Labor, Office of Inspector General and the U.S. Nuclear Regulatory Commission.
Pursuant to the Economy Act of 1932, as amended, the Nuclear Regulatory Commission (NRC) desires to enter into an agreement with the Department of Labor (DOL), Office of. Inspector General, whereby DOL will make available the services of Foxx and Company to the NRC.
Foxx and Company is a certified public accounting firm under contract to DOL.
Foxx and Company will perform a detailed financial review and assessment of the NRC's accounting system to identify accounting data, accounting processes, and accounting system weaknesses in accordance with the Statement of Work attached hereto.
peri _od of Performance The period of performance is changed from November 30, 1992 through September 30, 1993.
Estimated Cost and Ooli ation 3
The NRC will advance $350,000 to DOL who will reimburse Foxx and Company for the services to be provided hereunder.
$110,000 covers the period of performance from October 1, 1992 through November 30,1992; $240,000 covers the period of performance from December 1,1992 through September 30 i
1993.
Requests for payment must cite the following funding data:
FIN No:
L1965 BOC2541 B&R No:
370-19-609-301 APPN No: 31X0200.370 The amount obligated by the NRC under this Modification No. I for this Interagency Agreement is $350.000.
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Method of Payment
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Advance payment to DOL shall be made by Standard form 1081, " Voucher for Transfers Between Appropriations and/or runds."
{jh) 9303010151 921207 PDR CONTR
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NRC-09-92-201 PDR i
3 Interagency Agreement No. NRC-09-92-201-Modification No. 1 Page 2 i
Administrative Expense I
DOL shall receive a 2% handling charge for services provided in the:
administration of the contract with'Foxx and Company.
This handling charge j
shall be deducted from, and not in addition to, the funds obligated under.
l this interagency agreement.
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Summary of Obligations i
A summary of obligations for this interagency agreement from award date i
through the date of this action is given below.
Total FY 92 obligation amount $200,000.00 Total FY 93 obligation amount $350,000.00 Cumulative total of NRC obligations: $550,000.00 This modification obligates FY 93 funds in the amount of $350,000.00.
l Points of Contact The DOL point of contact is:
Theodore Goldberg i
Phone:
(202) 523-6747 i
The NRC points of contact are:
Technical: John R. Walker Phone: (301) 492-5018 I
Contractual: Joanna Lilley, Contract Administrator-Phone: (301) 492-8292.
If this agreement is acceptable to you, please so indicate by signing in the space provided below and returning three fully executed copies to me.
The fourth copy is for your records.
Should you have any questions regarding this agreement please call Joanna Lilley on (301) 492-8292.
Attachments:
1.
Statement of Work 2.
Memorandum of Understanding between the NRC and DOL l
3.
Tast Order ACCEPTED:
ACCEPTED:
US Department of Labor /
US Nuclear Regulatory Commission Office of nspector Go bral Office of Administration By:
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/72d 1/t Mary Lynn Scott 1
Title:
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I li le: ContractinJ Officer Date:
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STATEMENT OF WORK l
l The following presents the scope of a detailed financial review which will be conducted to identify accounting data, accounting processes, and i
accounting system weaknesses at the U.S. Nuclear Regulatory Commission (NRC).
1.
SCOPE OF FINANCIAL REVIEW AND ASSESSMENT The Office of the Controller and the Office of Inspector General (OIG) will i
select a non-Federal audit organization (contractor) to perform a review of NRC's financial systems. The objective of the review is to identify problem areas and corrective actions to ensure that NRC can produce a financial statement, as required by the Chief Financial Officers Act of 1990, which ~
meets Generally Accepted Government Auditing Standards (GAGAS).
a.
The contractor will determine the extent to which:
1
- 1) The principal statements and notes to the principal statements i
of the NRC present fairly its financial position and the results of its t
operations in accordance with the accounting policies used by the NRC.
While a formal audit opinion will not be required, the contractor shall provide a statement assessing all areas which need improvement in order for the NRC to receive an opinion if audited in the future.
The areas for improvement should be marked.
i a) The principal statements consist of the following Department of the Treasury Standard Forms (SF):
(1) SF 220, Report on Financial Position (2) SF 221, Report on Operations i
(3) SF 222, Report on Cash Flows (4) SF 223, Report on Reconciliation
- 2) The NRC's internal control structure ensures resources use is-i i
consistent with laws, regulations, and policies; - resources are safeguarded against waste, loss and misuse; reliable data are obtained, maintained, and fairly disclosed in reports.
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- 3) The NRC has complied with laws and regulations that could have i
a material effect on the financial statement.
See Attachment for general laws.
I 2.
INTERNAL CONTROL EVALUATION In order to provide assurance that NRC's internal control structure is operating properly, the contractor shall obtain an understanding of the.
internal control policies and procedures and assess the level of control.
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s risk forfall-significant cycles, classes of transactions and account i
balances.
The contractor shall:
Test and evaluate the effectiveness of the policies and procedures' a.
in preventing and detecting material noncompliance.
- 1) Describe the tasks for the tests used at the critical points in the internal control process.
- 2) Identify internal control policies and procedures'that have J
not been properly designed or placed in operation.
l b.
Document and flowchart NRC's internal control processes.
I Prepare a written report of its understanding of the internal' l
c.
control structure and its assessment of internal controls consistent with the requirements of generally accepted government auditing standards and FMFIA.
3.
AUDIT PROCEDURES The contractor shall develop and apply audit procedures to validate the financial statement data.
The contractor shall provide the Office of the i
Controller and OIG with a monthly progress report.
The contractor shall perform the following:
Develop a profile of NRC's financial management organization, l
a.
systems and operations.
b.
prepare a basic audit requirements determination report.
c.
Develop initial transaction flow reviews and validate data.
3 d.
Test the process for year-end adjustments and closing.
Evaluate the process.for reporting FMFIA weaknesses.
e.
f.
Test the consolidation and processing of financial statements.
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Validate closing balances.
i 4.
AUDIT REPORT For the purpose of this contract the report shall be referred to as an
" audit report", although a formal opinion. is not required. This is in keeping with the intent of this procurement, which is to provide recommendations for improvements to the NRC accounting process which assures auditable financial statements in the future.
The audit report shall state that the review was made in accordance with GAGAS and tho i
provisions of OMB Bulletin 93-02 titled " Guidance on Form and Content of_
i Financial Statements on FY 1993 Financial Activity."
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The audit report shall include the.following:
An assessment of NRC's principal statements and notes to.the a,
principal. statements.
The assessment shall state whether the statements are presented in accordance with NRC's policies for financial accounting and reporting.
4 b.
- The audit report shall identify weaknesses and make specific recommendations to improvements which will result in auditable statements in the future.
A report on internal controls which conforms with GAGAS and the' c.
provisions of OMB Bulletin 91-14 titled " Audit Requirements for Federal Financial Statements."
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' GENERAL LAWS Budget and Accounting Procedures Act of 1950, ch. 946, 64 Stat.
832 (codified as amended in scattered sections of 31 U.S.C.)
Antideficiency Act, ch. 510 3.,. 34 Stat. 49 (codified as amended in 31 U.S.C. SS1341, 1342, 1349-1351, 1511-1519 (1988))
Federal Managers' Financial Integrity Act of 1982 Pub. L. No.
97,255, 96 Stat. 814, 31 U.S.C.
S51105, 1113,3512 (1988)
Single Audit Act of 1984, ~Eub. L. No.98-502, 98 Stat. 2327, 31 U.S.C. SS7501-7507 (1988)
Fair Labor Standards Act of 1938, ch. 676, 52 Stat. 1060 (codified as amended in 29 U.S.C. 5S201-219 (1988))
Civil Service Retirement Act of 1930, ch. 34 1-18, 46 Stat. 468, as renumbered July 31, 1956, Ch. 804, title IV, 5401, 70 Stat.
743 (codified as amended in 5 U.S.C.
5S1308, 3323, 8331-8348 (1988))
Civil Service Reform Actof 1978, Pub. L. No.95-454, 92 Stat.
1111 (codified in scattered sections of 5 U.S.C.,
10 U.S.C.,
15 U.S.C.,
28 U.S.C.,
38 U.S.C.,
39 U.S.C., 42 U.S.C.)
Prompt Payment Act, Pub. L. No.97-177, 96 Stat. 85, 31 U.S.C.
SS3901-3906 (1988)
Debt Collection Act of 1982, Pub. L. No.97-365, 96 Stat. 1749 (codified in scattered sections of 5 U.S.C., 18 U.S.C.,
26 l
U.S.C.,
28 U.S.C., 31 U.S.C.)
Federal Employees' Compensation Act, ch. 458, 39 Stat. 742 (codified as amended in scattered sections of 5 U.S.C.)
Federal Employees' Group Life Insurance Act of 1980, Pub.
L. No.96-427, 94 Stat. 1831 (codified in scattered sections of 5 U.S.C.)
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i These are the general laws and regulations that, if not 8
observed, could have a material effect on the organization's financial statements.
Each auditor should consider these laws in their audits if they could have a material effect on the reporting entity's financial statements.
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t Federal Employe6s Healtih'5eneEits' Act of l'959, Pub. f.# No. 86-'
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382, 73 Stat. 708 (docified' as amended in. scattered sections of 5
- U.S.C.)
Chief Financial Officers Act of 1990 Pub.
L.- No. 101-576, 104 Stat. 2838 (codified in scattered sections of 5 U.S.C., 31 U.S.C.,
38 U.S.C.,'42 U.S.C.)
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-i 21/22/93 PROCUREMENTS AWARDED SINCE SEPTEMBER 1, 1992 PAGE 272-NEH AHARDS ARE SHDHH AS NOD 00 CONTRACT NUMBER MOD NUMDER TITLE EXECUTED 09-92-201-000 01 FINANCIAL REVIEH AND ASSESSMENT 12/10/92
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