ML20044B670
| ML20044B670 | |
| Person / Time | |
|---|---|
| Issue date: | 12/10/1992 |
| From: | Michael Scott NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | |
| Shared Package | |
| ML20044B669 | List: |
| References | |
| CON-NRC-09-92-201, CON-NRC-9-92-201 NUDOCS 9303010163 | |
| Download: ML20044B670 (9) | |
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i MEMORANDUM OF UNDERSTANDING BETWEEN THE DEPARTMENT OF LABOR 0FFICE OF INSPECTOR GENERAL AND-l THE U.S. NUCLEAR REGULATORY COMMISSION I.
PURPOSE This memorandum establishes the basis for accounting / technical i
assistance services to be provided by a certified public accounting firm under contract to the Department of Labor, Office of Inspector i
General (DOL) to the U.S. Nuclear Regulatory Commission (NRC).
Provision of these services under this Memorandum of Understanding is i
in the best interest of the United States Government, and these services cannot be provided as conveniently or as economically in any other way.
l II.
AUTHORITY The accounting / technical assistance services will be provided under the authority of the Economy Act of 1932, as amended (31 U.S.C. 1535).
i III.
00L RESPONSIBILITIES Upon receipt of Office of Management and Budget (OMB) authorization of l
DOL's request to allow the Department to exceed the limitation on the transfer of funds, and upon notification that the funds have been received from the NRC, DOL will.
- a. Provide the NRC with a firm that is highly experienced in auditing Government Financial Statements, for which such knowledge will enable the contractor to provide the accounting and technical i
assistance services needed.
- b. Provide the NRC, Contract Administration Branch, Division of Contracts and Property Management, a copy of DOL's contract with the firm that will be performing the accounting and technical assistance services.
- c. Review the scope of work for clarity and ensure that the duties to be performed under the task order are explicit in accordance with the statement of work.
- d. Ensure that the labor categories are consistent with the type of work being requested.
- e. Monitor contractor performance as necessary.
- f. Process the. task order and any modifications expeditiously and notify the Division of Contracts and Property Management as soon as i
the documents are signed.
i 9303010163 921207 PDR CONTR NRC-02-92-201 pyg J
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- g. Submit invoices through the Division of Contracts and Property-Management for concurrence before processing.
- h. Address matters of a contractual nature to-the Contract l
Administrator.
'l IV.
NRC RESPONSIBILITIES Upon notification of OMB and DOL approval, the' NRC will:
- a. Transfer funds to DOL in accordance with Part V below.
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- b. Approve the language in the task order describing the work to be-performed.
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- c. Assign a task monitor to provide technical guidance to the l
contractor as necessary.
- d. Review and concur in contractor's invoices for acceptability prior to DOL processing.
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- f. Provide DOL with an evaluation of the contractor's performance upon completion of the assignment.
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V.
TRANSFER OF FUNDS i
Funds will be transferred to DOL using Standard Form (SF) 1081.
It is expected that funds will be disbursed evenly throughout-the term of the r
contract.
I VI.
DURATI0i10F THE MEMORANDUM OF UNDERSTANDING I
This Memorandum of Understanding will take effect upon' signature of' both parties, and will remain in effect until terminated.
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VII. PROJECT OFFICERS O
NRC H. Lee Hiller
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Title Director, Division of. Accounting and Finance.
i Organization U.S. Nuclear Regulatory Commission Address MNBB 1104 Washington, D.C.
20555 s
Phone (301) 492-7535
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i 00L-0IG David Langford Title Director, Division of Audit Management Services'
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Organization Office of Audit - OIG i
Address 200 Constitution Ave, N.W., Room S-5030 l
Washington, D.C.
20210
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(?02) 219-8385 VIII.' SIGNATURES I
This agreement will be executed within two (2) weeks of OM8 and Departmental approval.
i US NUCLEAR REGULATORY COMMISSION DEPARTMENT OF LABOR
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Mary Lynn $cott, Contracting Officer TheodoreGoldberg/ Contracting OfficerContract Administr: tion Branch No. 1 Office of Inspector General
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Division of Contracts and i
Property Management j
Office of Administration i
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TASK ORDER Task Order No. J-9-G-2-0004 AIRS No.
Financial Review and Assessment i
i This is to initiate Task Order No.
pursuant to DOL Contract No.
J-9-G-2-0004 with Foxx and Company 700 Goodall Complex, 324 West 9th Street, Cincinnati, Ohio 45202-1908.
t II. STATEMENT a.
Project Objective 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 within the Office of the Controller,.U.S.
Nuclear Regulatory Commission (NRC). 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).
b.
Task Order Objectives 3
1.
SCOPE OF FINANCIAL REVIEW and ASSESSMENT:
The auditor will determine the extent to which a) The principal statements and notes to the principal statements of the NRC present fairly-its financial position and the results of its 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.
- 1) The principal statements consist of the following Department of the Treasury Standard Forms (SF):
k (a) SF 220, Report on Financial Position (b) SF 221, Report on Operations (c) SF 222, Report on Cash Flows (d) SF 223, Report on Reconciliation
- 2) The NRC's internal control structure ensures resources use is. 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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4 3)- The NRC has complied with laws-and regulations that could have a material effect on the financial statement.
See Attachment for general laws.
2.
' INTERNAL CONTROL EVALUATION:
In order to provide assurance that NRC's internal control structure is operating properly, the auditor shall obtain an understanding of the internal control policies and procedures and assess the level of control risk for all significant cycles, classes of transactions and account balances.
The auditor shall:
a) Test and evaluate the effectiveness of the policies and i
procedures 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 not been properly designed or placed in operation.
b) Document and flowchart NRC's internal control processes.
c) Prepare a written report of its understanding of. the-internal control structure and its assessment of internal controls consistent with the requirements of generally accepted government auditing standards and FMFIA.
3.
AUDIT REPORT: The auditor shall develop and apply audit procedures to validate the financial statement data. The auditor shall provide the Office of the Controller and OIG with a monthly progress report.
The auditor shall perform the following:
a) Develop a profile of NRC's financial management organization, systems and operations.
b) Prepare a basic audit requiremer+.s determination report.
c) Develop' initial transaction flow reviews and validate data.
d) Test the process for year-end adjustments and closing.
e) Evaluate the process for reporting FMFIA weaknesses.
f) Test the consolidation and processing of financial statements.
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g) Validate closing balances.
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 i
the provisions of OMB Bulletin 93-02 titled " Guidance on Form and Content of Financial Statements on FY 1993 Financial Activity." The audit report shall include the following:
a) An assessment of NRC's principal' statements and notes to the principal statements. The assessment shall state whether the statements are presented in accordance with NRC's policies for financial accounting and reporting.
b) The audit report shall identify weaknesses and make specific recommendations to improvements which will result in auditable statements in the future.
c) A report on internal controls which conforms with GAGAS and the provisions of OMB Bulletin 91-14 titled " Audit Requirements for Federal Financial Statements."
III. PERIOD OF PERFORPLANCE Work under this Task Order is effective December 1, 1992. The authorization of the task monitor and the COTR is required prior to work exceeding 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br /> per week or during holidays or weekends.
This task order must be completed not later than September 30, 1993.
IV. MONITOR / CONTRACTING OFFICER TECHNICAL REPRESENTATIVE David Langford, Director, Division of Audit Management Services, will monitor the work under this Task Drder. Questions pertaining to the scope of work should be directed to him. Work on weekends, holidays, or work i
exceeding 8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br /> per day must have prior approval.
These approvals must be obtcined from the Task Monitor and the Contracting Officer's Technical Representative for the basic contract.
Mr. Langford's authority for this task order is limited to technical direction within the scope of work.
j Only the Contracting Officer may change any term of this task order.
j V.
AUT110RIZATION i
Pursuant to the provisions of the Department of Labor Contract No.
J-9-G-2-00u4, Office of Inspector General, 'this document constitutes a i
fully executed Task Order issued under the Statement of Work therein and as i
therein specified and defined.
Under the conditions therein, this Task j
Order is ready for implementation.
Office of Inspector General P
Date Telephone No.
Foxx and Company 1
Date Telephone No.
1 0FFICE OF INSPECTOR GENERAL r
Technical Representative Date Telephone No.
t U.S. DEPARTMENT OF LABOR 9
Contracting Officer Date Telephone No.
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- GENERAL LAWS Budget and Accounting Procedures Act of 1950, ch. 946, 64. Stat..
r 832 (codified as amended in scattered sections of 31_U.S.C.)
L Antideficiency Act, ch. 510 3, 34 Stat; 49 (codified amended' in 31 U.S.C. SS1341, 1342, 1349-1351, 1511-1519 (1988',6 u.
No.
Federal Managers' Financial Integrity Act of 1982 PL 97,255, 96 Stat. 814, 31 U.S.C. 551105, 1113,3512 (1988)
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Single Audit Act of 1984, Pub. L. No.98-502, 98 Stat. 2327, 31 U.S.C. 557501-7507 (1988)
Fair Labor Standards Act of 1938, ch. 676, 52 Stat. 1060 (codified as amended in 29 U.S.C. S5201-219 (1988))
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Civil Service Retirement Act of 1930, ch. 3 4 1-18, 46 Stat. 468, as renumbered July 31, 1956, Ch. 804, title IV, S401, 70 Stat.
743 (codified as amended in 5 U.S.C. SS1308, 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.
S$3901-3906 (1988)
Debt Collection Act of 1982, Pub. L. No. 97-3 65, 96 Stat. 1749 (codified in scattered sections of 5 U.S.C.,
18 U.S.C.,
26 U.S.C.,
28 U.S.C.,
31 U.S.C.)
Federal Employees' Compensation Act, ch. 458, 39 Stat. 742 (codified as amended in scattered sections of 5 U.S.C.)
Federal Employees' Group Life Insurance Act of 1980., Pub.
L. No.
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f 96-427, 94 Stat. 1831 (codified in scattered sections of 5 U.S.C.)
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'These are the general laws and regulations that, if not observed, could have a material effect on the organization's financial statements.
Each auditor should consider these laws in their audits if they could have a material effect on the reporting entity's financial statements.
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- ene$itI Act of l'95[, [ubl 'L'/ Nk 86-'
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- 382 73 's
. U.S C.)
-(docified-as amended in scattered sections of 5 i
Chief Financial Officers ~A'ct'of 1990 Pub. L.
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No.-101-576 104'
- t. 2838-(codified-in scattered sections.of 5 U.S.C.'
.C.,-38 U.S.C., 42 U.S.C.)
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