UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

February 4, 2011

MEMORANDUM TO: Chairman Jaczko

FROM: Hubert T. Bell /RA/

Inspector General

SUBJECT: TRANSMITTAL OF THE INDEPENDENT AUDITOR’S REPORT 

ON THE CONDENSED FINANCIAL STATEMENTS 

(OIG-11-A-06) 

Office of Management and Budget Circular No. A-136, Financial Reporting Requirements, 

Revised, September 29, 2010, requires all entities covered under The Chief Financial Officer’s 

Act of 1990 to prepare a Summary of Performance and Financial Information which summarizes 

performance and accountability results for the fiscal year. The Summary Report should include 

the most important performance and financial information contained in the Performance and 

Accountability Report in a brief, user-friendly format that is easily understood by a reader with 

little technical background in these areas. The purpose of this memorandum is to transmit 

Urbach Kahn & Werlin, LLP (UKW) Auditor’s Report on the Condensed Financial Statements 

included in the Summary Report. 

UKW is responsible for the attached unqualified auditor’s opinion, dated November 7, 2010. 

The Office of the Inspector General (OIG) is responsible for technical and administrative 

oversight regarding the firm’s performance under the terms of the contract. Our oversight of 

UKW’s work, as differentiated from an audit in conformance with Government Auditing 

Standards, was not intended to enable us to express, and accordingly we do not express, an 

opinion on the condensed financial statements included in the Summary Report. However, 

OIG’s oversight of UKW’s work disclosed no instances where UKW did not comply with 

applicable auditing standards. 

We appreciate the cooperation provided by NRC staff.

Attachment: As stated

cc: Commissioner Svinicki

Commissioner Apostolakis

Commissioner Magwood

Commissioner Ostendorff

M. Muessle, OEDO

J. Andersen, OEDO
INDEPENDENT AUDITOR’S REPORT ON THE CONDENSED

FINANCIAL STATEMENTS

Hubert T. Bell

Inspector General 

United States Nuclear Regulatory Commission

The Honorable Gregory B. Jaczko

Chairman 

United States Nuclear Regulatory Commission

We have audited the balance sheets of the United States Nuclear Regulatory Commission 

(NRC) as of September 30, 2010 and 2009, and the related statements of net cost, changes in 

net position, and budgetary resources (Principal Statements) for the fiscal years then ended. 

Our audits were performed in accordance with auditing standards generally accepted in the 

United States of America; the standards applicable to financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and OMB Bulletin 

No. 07-04, Audit Requirements for Federal Financial Statements, as amended. In our report 

dated November 7, 2010, we expressed an unqualified opinion on those Principal Statements. 

In our opinion, the information set forth in the accompanying condensed financial statements is 

fairly stated in all material respects in relation to the Principal Statements referred to above from 

which it has been derived.

In accordance with Government Auditing Standards, our report on the Principal Statements 

referred to above includes an opinion on the effectiveness of internal control over financial 

reporting and a report on compliance with laws and regulations for the fiscal years ended 

September 30, 2010 and 2009. Those reports are integral parts of a financial statement audit 

performed in accordance with Government Auditing Standards and should be considered in 

assessing the results of our audit. 

Arlington, Virginia

November 7, 2010