ML20137Z089

Forwards Results of Audit of NRC Commission Fiscal Year 1996 Financial Statements.Audit Performed to Form Opinion on Principal Financial Statements

ML20137Z089
Person / Time
Issue date:	03/06/1997
From:	Bell H NRC OFFICE OF THE INSPECTOR GENERAL (OIG)
To:	Diaz N, Dicus G, Shirley Ann Jackson, Mcgaffigan E, Rogers K, The Chairman NRC COMMISSION (OCM)
Shared Package
ML20137Z095	List: ML20137Z089 ML20137Z278
References
OIG-96-A-19, NUDOCS 9704230355
Download: ML20137Z089 (2)

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UNITED STATES 3

y NUCLEAR REGULATORY COMMISSION

. i. WASHINGTON. D.C. 20555-0001 I,,,

$~8 OFFICE OF THE March 6, 1997 INSPECTOR GENERAL MEMORANDUM TO: Chairman Jackson Commissioner Rogers Commissioner Dicus Commissioner McGaffigan Commissioner Diaz FROM:

Hubert T. Bell /

Inspector General ggg

SUBJECT:

RESULTS OF THE AUDIT OF U.S. NUCLEAR REGULATORY COMMISSION'S FISCAL YEAR 1996 FINANCIAL STATEMENTS Attached is the Office of the Inspector General's (OlG) audit report of the U.S. Nuclear Regulaury Commission's (NRC) Fiscal Year 1996 financial statements. The Chief Financial Officers (CF O)

Act requires OlG to annually audit the Principal Financial Statements of the NRC. The audit was performed to form an opinion on the Principal Financial Statements. The report contains the (1) principal statements, (2) our opinions on the principal statements and management's assertions about the effectiveness of internal controls, and (3) our report on NRC's compliance with laws and regulations. Written comments were obtained from the Acting CFO and are included as an appendix to our report.

Audit Results On NRC's Fiscal Year 1996 Principal Financial Statements, we issued an unqualified opinion on the Statement of Financial Position, and the Statements of Operations, Cash Flows, and Budget and Actual Expenses.

In our opinion on management's assertions about the effectiveness of internal controls, we identified one new reportable condition and one carried over from prior fiscal years. The new condition concerns NRC's procedures for identifying capitalized software. The prior-year condition concems NRC's lack of a system for reporting labor costs by program. Based on corrective actions taken in FY 1996, we closed two reportable conditions identified in our FY 1995 report. Those A conditions related to (1) internal controls for NRC's fee recovery system, and (2) lack of Department of Energy (DOE) audit assurance for NRC funds spent at DOE labs. We have, however, retained the DOE issue as a Matter of Emphasis in our report.

j Our report on NRC's compliance with laws and regulations states that with respect to the items tested, NRC was in compliance. Based on actions taken in FY 1996, we closed the compliance finding related to NRC's fee recovery system.

9704230355 970306 PDR ORG NRC10 PDR

I Under the Federal Manager's Financial Integrity Act, NRC must annually evaluate its internal  ;

j controls processes. As of the date of our report, NRC management had completed its evaluation of financial controls, but was still evaluating a programmatic controlissue.

On February 27,1997, the Acting CFO responded to our draft report dated February 19,1997. We appreciate NRC staffs cooperation and continued interest in improving financial management g 1

within NRC. g Attachments: As stated 4

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cc: L. Callan, EDO J. Blaha, AO/OEDO P. Norry, DEDM/OEDO H. Thomspon, DEDR/OEDO E. Jordan, DEDO /OEDO J. Hoyle, SECY K. Cyr, OGC D. Rathbun, OCA R. Scroggins, OC G. Cranford, IRM R. Bangart, OSP .

S. Collins, NRR D. Ross, Acting Director, AEOD D. Morrison, RES C. Paperiello, NMSS J. Funches, ICC W. Beecher, OPA l J. Cordes, OCAA T. Kress, ACRS P. Pomeroy, ACNW

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