ML20102B755

Disputes Billing Amounts in NRC 850122 Summary Statement of Costs.Errors & Lack of Documentation Do Not Allow Acceptance of Billing Solely on Basis of NRC Internal Controls.Meeting Re Questioned Items & Extension of Due Date Requested

ML20102B755
Person / Time
Site:	Marble Hill
Issue date:	02/25/1985
From:	Shields S PSI ENERGY, INC. A/K/A PUBLIC SERVICE CO. OF INDIANA
To:	Miller W NRC OFFICE OF ADMINISTRATION (ADM)
References
NUDOCS 8503040347
Download: ML20102B755 (2)

Text

l PUBLIC SERVICE INDIANA February 25, 1985 S. W. Shields Seruor Vce President -

Corporate Services Mr. William O. Miller, Chief License Fee Management Branch Office of Administration U.S. Nuclear Regulatory Comission Washington, D.C. 20555

Dear Mr. Miller:

Pursuant to 10CFR Section 15.31, Public Service Company of India-na, Inc. (PSI) hereby disputes the billing amounts contained in the sumary statement of costs mailed to us with your letter dated January 22, 1985, received by us January 26, 1985. Pursuant to the recomendation contained in your letter, PSI did send representatives to Bcthesda to review the records supporting staff effort and contractual costs included in the dis-puted billing. Our audit staff found that the records supplied do not allow a conprehensive review in acx:ordance with generally accepted auditing standards. No supporting documentation existed for any contractual costs incurred prior to October 1983. Original source documents (i.e. time reewds) to support staff effort have been destroyed. The lack of such significantly limits the audit tests generally considered appropriate in this type of billing arrangement. Furthermore, in the areas which did have support several errors were found. These errors included, but were not limited to, billings for work performed outside of the billing period, amounts billed for review of a section of the Marble Hill FSAR which was conpletely replicate (4.2), and amounts charged to Marble Hill which, by NRC admission should have been charged to other projects (TMI, Beaver Val-ley, Limerick) .

While PSI does not expect an unreasonable anount of documenta-tion, necessary audit tests are determined by the extent reliance can be placed upon the internal controls utilized in the preparation of the bill-ing. The number of errors or questionable items found in the limited amount of material available does not allow us to accept the remaining billing solely on the basis of NRC internal controls.

8503040347 850225 ADOCK 05000546 PDR A PDR fi[0g A4 1000 East Main Street, Plainfield, Indiana 46168 317. 838.7208

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i We are hopeful that these issues can be resolved pronptly. We would suggest a meeting between the NRC and our staff to further pursue some of the questioned items and a method of resolving the remaining bill-ing in accordance with generally accepted auditing standards. We also expect that the due date of the NBC's proposed bill will be extended for a reasonable time to allow these issues to be resolved in accordance with Section 15.31(b) .

Please direct all correspondence or questions with respect to l this issue to my attention. If you have any questions, please feel free t.o

. call.

Sincerely,

/ / L$

S. W. Shields sw oc: J. U. Bott J. W. Leonard L. A. Nicodemus i J. R. Pope l

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