Cumulative Results of Operations

Beginning Balance $ 128,235 | $ 27,164
Budgetary Financing Sources 138,309 127,197
Other Financing Sources 32,207 120,345
Net Cost of Operations (170,392) (146,471)
Net Change 7 1 24 101,071
Cumulative Results of Operations $ 128,359 128,235
Unexpended Appropriations

Beginning Balance $ 289,269 | $ = 254,027
Budgetary Financing Sources 49,368 35,242
‘Total Unexpended Appropriations 338,637 289,269
Net Position $ 466,996 | S$ 417,504

* For a complete set of financial statements and notes, see Chapter 3, “Financial Statements and
Auditors’ Report,” in the Fiscal Year 2009 Performance and Accountability Report. This report can be

accessed at ht g

Audit Opinion—Unqualified

Restatement—No

Material Weaknesses No

_Effectiveness of Internal Control over Financial Reporting and Operations (FMFIA § 2)

Statement of Assurance—Unqualified

Material Weaknesses -No

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance—Systems Conform to Requirements _

Nonconformance No

Compliance with Federal Financial Management Improvement Act (FFMIA)

Overall Substantial Compliance

Agency ~ Yes

Auditor ~ Yes

For the complete Summary of Financial Statement Audit and Management Assurances see page 167
of the Fiscal Year 2009 Performance and Accountability Report. This report can be accessed at

www.nrc.gov |

17


aa UNITED STATES
NUCLEAR REGULATORY COMMISSION

US WASHINGTON, D.C. 20555-0001

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OFFICE OF THE
INSPECTOR GENERAL

January 14, 2010

MEMORANDUM TO: Chairman Jaczko

FROM: Hubert T. Bell
Inspector General
SUBJECT: TRANSMITTAL OF THE INDEPENDENT AUDITOR'S

REPORT ON THE CONDENSED FINANCIAL
STATEMENTS (OIG-10-A-07)

Office of Management and Budget Circular No. A-136, Financial Reporting
Requirements, Revised, June 10, 2009, strongly encourages all entities producing a
Performance and Accountability Report (PAR) to prepare a Summary Report 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 PAR 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 6,
2009. 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 Klein

Commissioner Svinicki

N. Mamish, OEDO
J. Andersen, OEDO


UK
Q

WwW

Urbach Kahn & Werlin Lie

CERTIFIED PUBLIC ACCOUNTANTS

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, 2009 and 2008, and the related statements of net cost, changes in
net position, and budgetary resources (Principal Statements) for the fiscal years then ended.
Our audit was 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 6, 2009, 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, 2009 and 2008. 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.

Unbock Kobm tWerkin LLP

Arlington, Virginia
November 6, 2009



Assets

Fund balance with ‘Treasury $ 448,632 | S$
Accounts receivable, net 128,124
Property and equipment, net 31,624
Other 33372
| Total Assets $611,752 | $
Liabilities
Accounts payable $ 51,000 | $ 54,123
Federal employee benefits 7,628 7,059
Other 86,128 75,792
Total Liabilities 144,756 136,974
Net Position
Unexpended appropriations 338,637 289,269
Cumulative results of operations 128,359 128,235
__Total Net Position 466,996
Total Liabilities and Net Position $ 611,752 | S$ A78
Nuclear Reactor Safety and Security
Gross costs $ 796,898 | $ 705,832
arned revenue (794,007) (725,840)
2,891 | (20,008)
245,961 238,219
a (78,460) (71,740)
| Total Net Cost of Nuclear Materials and Waste Safety and Security 167,501 166,479
Net Cost of Operations $ 170,392 | $ 146,471

* For a complete set of financial statements and notes, see Chapter 3, “

inancial Statements and

Auditors’ Report,” in the Fiscal Year 2009 Performance and Accountability Report. This report can be

accessed at

16