ML20212F630
| ML20212F630 | |
| Person / Time | |
|---|---|
| Issue date: | 12/30/1986 |
| From: | Zech L NRC COMMISSION (OCM) |
| To: | PRESIDENT OF U.S. & EXECUTIVE OFFICES |
| Shared Package | |
| ML20212F633 | List: |
| References | |
| SECY-86-237, NUDOCS 8701120089 | |
| Download: ML20212F630 (2) | |
Text
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UNITED STATES NUCLEAR REGULATORY COMMISSION o
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December 30, 1986 CHAIRMAN The President The White House Washington, D. C. 20500
Dear Mr. President:
An evaluation of the system of internal accounting and administrative control of the U. S. Nuclear Regulatory Commission in effect during the year ending December 31, 1986 was performed in accordance with Guidelines for the Evaluation and Improvement of and Reporting on Internal Control Systems in the Federal Government, issued by the Director of the Office of Management and Budget, in consultation with the Comptroller General, as required by the Federal Managers' Financial Integrity Act of 1982. Other guidance is contained in the OMB memoranda of August 20,1986 and November 13, 1986.
The evaluation included an analysis of whether the system of internal accounting and administrative control of the Nuclear Regulatory Comission was in compliance with the standards prescribed by the Comptroller General.
The objectives of the system are to provide reasonable assurance that:
Obligations and costs are in compliance with applicable law; Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and Revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over the assets.
The concepts of reasonable assurance recognizes that the cost of internal control should not exceed the benefits expected to be derived therefrom, and that the benefits consist of reductions in the risks of failing to achieve the stated objectives.
Estimates and judgments are required to assess the expected benefits and related costs of control procedures.
Furthermore, errors or irregularities may occur and not be detected because of inherent limitations in any system of internal accounting and administrative control, including those limitations resulting from resource constraints, Congressional restrictions, and other factors.
Finally, projection of any evaluation of the system to future periods is subject to the risk that procedures may be inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate.
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e-o The Honorable George H. W. Bush The results of the evaluation described in the first paragraph, assurances given by appropriate Nuclear Regulatory Comission of ficials, plans for correcting weaknesses found, and other information provided indicate that the system of internal accounting and administrative control of the Nuclear Regulatory Commission in effect during the year ending December 31, 1986, complies with the requirement to provide reasonable assurance that the above-mentioned objectives were achieved within the limits described in the preceding paragraph.
Enclosure A contains a statistical summary of NRC accomplishments under the Federal Managers' Financial Integrity Act of 1982. Sections 2 and 4.
Enclosure B describes the NRC evaluation process, highlighting progress in making it part of general management. Enclosure C lists the accounting systems subject to Section 4 of the Federal Managers' Financial Integrity Act.
Respectfully, W.
, Jr. f Lando W. Ze
Enclosures:
As stated cc w/ enclosures:
The Honorable James C. Miller, III Director, Office of Management and Budget