ML20248J270
| ML20248J270 | |
| Person / Time | |
|---|---|
| Issue date: | 05/29/1998 |
| From: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| To: | Domenici P, Mcdade J HOUSE OF REP., APPROPRIATIONS, SENATE, APPROPRIATIONS |
| Shared Package | |
| ML20248J272 | List: |
| References | |
| NUDOCS 9806090060 | |
| Download: ML20248J270 (4) | |
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UNITED STATES NUCLEAR REGULATORY COMMISSION 4- g WASHINGTON, D.C. 20006-0001
...., May 29, 1998 cHAMMAN The Honorable Pete V. Domenici, Chairman Subcommittee on Energy and Water Development Committee on Appropriations United States Senate.
Washington, D.C. 20510
Dear Mr. Chairman:
l Recently you received an April 30,1998, letter from the General Accounting Office (GAO)
- l. regarding Nuctaar RennlaMrv Commi==hn: Information on Potential Budoetary Reductions for Fiscal Year 1999 (GAO/RCED-98-157R). I am writing to express the Commission's concem with the GAO finding which suggests that, "...up to $57 million may potentially be available at the end of fiscal year 1998 to reduce NRC's fiscal year 1999 budget request." This finding is based on flawed methods and assumptions and a misconception that could affect NRC's ability to mtet its mission of ensuring adequate protection of public health and safety in the use of nuclear materials.
In an April 27,1998, letter to GAO the NRC's Chief Financial Officer (CFO) indicated that the GAO's method used to project fiscal year (FY) 1998 costs and the assumptions used to project the "potentially available" balances were flawed. As you can see from the enclosed letter, the CFO provided a sound financial basis for estimating FY 1998 costs. Additionally, the CFO concluded that no funds are expected to be available at the end of FY 1998 to reduce our FY 1999 budget request.
The NRC's estimated FY 1998 carryover funds are consistent with financial management goals included in our FY 1999 Performance Plan, which has been reviewed by the Office of Management and Budget and Congress. These goals recognize the requirement to have sufficient resources to pay for FY 1998 services that are not billed and paid until FY 1999 and the need to provide for continuity of funding so that important contracts are not unduly interrupted as we transition from FY 1998 to FY 1999. Furthermore, we do not agree with GAO's comment that "...NRC's own analyses show that up to about $17 million may potentially be available to reduce NRC's fiscal year 1999 budget request." These unobligated funds represent approximately 3 percent of the agency's appropriation. We have found from
. experience that this small amount of carryover in unobligated funds is essential in responding to
. unanticipated events during the coming year, j l
- The NRC takes its financial management responsibilities very seriously. The NRC has significantly reduced its carryover funding, achieving a reduction of approximately $100 million -
over the past four years. GAO acknowledged this substantial effort in their April 30,1998,
.!stter. The NRC expects to continue this trend with a further reduction of approximately 20 percent from FY 1997 to FY 1998.
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-CORRESPONDENCE,PDR
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. 2 I appreciate the opportunity to present the Commission's concems on this important matter. I am available to discuss this further at your convenience.
Sincerely, l & -A-_u Shirley Ann Jackson
Enclosure:
As stated cc: Senator Harry Reid 1
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- % UNITED STATES f
e* t NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20656-0001 i
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- May 29, 1998 CHAIRMAN l
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The Honorable Joseph M. McDade, Chairman Subcommittee on Energy and Water Development ,
Committee on Appropriations )
United States House of Representatives !
Washington, D.C. 20515 i
Dear Mr. Chairman:
Recently you received an April 30,1998, letter from the General Accounting Office (GAO) regarding Nuclear Reoulatory Commission: Information on Potential Budoetary Reductions for Fiscal Year 1999 (GAO/RCED-98-157R). I am writing to exoress the Commission's concem with the GAO finding which suggests that, "...up to $57 million may potentially be available at the end of fiscal year 1998 to reduce NRC's fiscal year 1999 budget request." This finding is i based on flawed methods and assumptions and a misconception that could affect NRC's ability I to meet its mission of ensuring adequate protection of public health and safety in the use of nuclear materials.
In an April 27,1998, letter to GAO the NRC's Chief Financial Officer (CFO) indicated that the GAO's method used to project fiscal year (FY) 1998 costs and the assumptions used to project the 'potentially available" balances were flawed. As you can see from the enclosed letter, the CFO provided a sound financial basis for estimating FY 1998 costs. Additionally, the CFO concluded that no funds are expected to be available at the and of FY 1998 to reduce our FY 1999 budget request.
The NRC's estimated FY 1998 carryover fundr consistent with financial management goals included in our FY 1999 Performance Plan,' . has been reviewed by the Office of Management and Budget and Congress. ' , goals recognize the requirement to have sufficient resources to pay for FY 1998 services that are not billed and paid until FY 19C3 and the need to provide for continuity of funding so that important contracts are not unduly interrupted as we transition from FY 1998 to FY 1999. Furthermore, we do not agree with GAO's comment that "...NRC's own analyses show that up to about $17 million may potentially be available to reduce NRC's fiscal year 1999 budget request." These unobligated funds represent approximately 3 percent of the agency's appropriation. We have found from experience that this small amount of carryover in unobligated funds is essential in responding to unanticipated events during the coming year.
The NRC takes its financial management responsibilities very seriously. The NRC has
( significantly reduced its carryover funding, achieving a reduction of approximately $100 million over the past four years. GAO acknowledged this substantial effort in their April 30,1998, letter. The NRC expects to continue this trend with a further reduction of approximately 20 percent from FY 1997 to FY 1998.
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. 2 1 appreciate the opportunity to present the Commission's concems on this important matter. I am evailable to discuss this further at your convenience. .
Sincerely, G
% r_1 Shirley Ann Jackson
Enclosure:
As stated I cc: Representative Vic Fazio i