MISSION

License and regulate the Nation’s civilian use of radioactive 

materials to protect public health and safety, promote 

the common defense and security, and protect the environment.

Public Protection Notificatio

The NRC may not conduct or sponsor, and a person is not required to respond to, a request for information or an information 

collection requirement unless the requesting document displays a currently valid OMB control number.

NUREG-1542, Vol. 21, Supp. 1, has been reproduced from the best available copy.
Table of Contents

h t t p : / / www.nrc.gov i n Protecting People and the Environment

A MESSAGE FROM THE CHAIRMAN. 

INTRODUCTION. 

ABOUT THE NRC. 

THE NUCLEAR INDUSTRY. 

FY 2015 PERFORMANCE RESULTS. 

FUTURE CHALLENGES. .

THE INSPECTOR GENERAL’S ASSESSMENT OF THE MOST SERIOUS MANAGEMENT

AND PERFORMANCE CHALLENGES FACING THE NRC. .

MESSAGE FROM THE CHIEF FINANCIAL OFFICER. .

FINANCIAL PERFORMANCE OVERVIEW. .

MANAGEMENT ASSURANCES, SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE. .

INSPECTOR GENERAL’S TRANSMITTAL LETTER. .

INDEPENDENT AUDITORS’ REPORT ON THE SUMMARY FINANCIAL STATEMENTS. .

SUMMARY FINANCIAL STATEMENTS. .

SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT ASSURANCES. .

BIBLIOGRAPHIC DATA SHEET. .

This report is a summary of the U.S. Nuclear Regulatory Commission’s (NRC’s) Fiscal Year (FY) 2015 Performance and 

Accountability Report (PAR), published on November 16, 2015. This report is in an easy-to-read format and is available 

on the NRC Web site at http://www.nrc.gov. In addition, a video message from the Chairman and a full copy of the PAR 

are available on the DVD located on the back inside cover.
ii

The U.S. Nuclear Regulatory Commission (NRC) Headquarters

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A Message from the Chairman

h t t p : / / www.nrc.gov n Protecting People and the Environment 1

I am pleased to present the U.S. Nuclear Regulatory Commission’s (NRC’s) Summary 

of Performance and Financial Information for Fiscal Year (FY) 2015. This summary 

presents the NRC’s continuing success in achieving our mission to license and 

regulate the use of radioactive materials to protect public health and safety, promote 

the common defense and security and protect the environment. The summary also 

provides key financial and performance information to Congress and the American 

people of how we used our resources during FY 2015. The summary is available at 

http://www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1542/. 

The NRC is an independent regulatory agency devoted to the effective and efficient 

oversight of the Nation’s 100 operating nuclear reactors, one of which began operation 

in early FY 2016, and 31 research and test reactors. The agency also maintains oversight 

of the five reactors currently being decommissioned. The NRC reviews all safety 

aspects of new reactor designs, environmental siting, combined license applications, and provides oversight for the 

four nuclear reactors currently under construction. Further, the agency focuses on the safe and secure use of nuclear 

materials in the energy, medical and industrial sectors through effective oversight of fuel facilities, uranium recovery 

sites, decommissioning sites, and nuclear material user licensees. The NRC met all of its strategic goals, objectives, and 

performance indicator targets in FY 2015.

The NRC is committed to good governance and the prudent management of resources entrusted to it by the American 

people. The agency will continue to evaluate, test, and strengthen its internal controls, including those related to 

financial reporting and financial management systems, as required by the Federal Managers’ Financial Integrity Act of 

1982 (FMFIA). Based on the FMFIA assessments, I have concluded that there is reasonable assurance that the agency 

is in substantial compliance with FMFIA, and the financial and performance data published in this report are complete, 

accurate, reliable, and timely, in accordance with the Reports Consolidation Act of 2000 and Office of Management and 

Budget Circular A-136 requirements. Additionally, I have determined that the agency is in substantial compliance with 

the Federal Financial Management Improvement Act of 1996 (FFMIA), based on the NRC’s application of the FFMIA risk 

model.

I continue to be impressed by the performance and dedication of NRC employees in achieving the agency’s safety and 

security goals and look forward to continuing the high-quality service the American people have come to expect from us. 

Stephen G. Burns

Chairman

1 February 2016
2

INTRODUCTION

The U.S. Nuclear Regulatory Commission (NRC) 

Summary of Performance and Financial Information 

presents an overview of the agency’s program and 

financial management performance during fiscal year 

(FY) 2015, which covers the period from October 1, 2014, 

to September 30, 2015. This summary report provides 

an opportunity for the American public to assess how 

effectively the NRC uses its funds to achieve results. 

When preparing this report, the NRC staff followed the 

guidance of the Office of Management and Budget (OMB) 

Circular A-136, “Financial Reporting Requirements.” 

The summarized financial statement data are based on 

the same underlying data as the financial statements 

presented in the FY 2015 Performance and Accountability 

Report (PAR).

ABOUT THE NRC

The U.S. Congress established the NRC on 

January 19, 1975, as an independent Federal agency 

regulating the commercial and institutional uses of 

nuclear materials. The Atomic Energy Act of 1954, as 

amended, and the Energy Reorganization Act of 1974, as 

amended, define the NRC’s purpose. These acts provide 

the foundation for the NRC’s mission to regulate the 

Nation’s civilian use of byproduct, source, and special 

nuclear materials to ensure adequate protection of public 

health and safety, to promote the common defense and 

security, and to protect the environment. The agency 

regulates civilian nuclear power plants and other nuclear 

facilities, as well as other uses of nuclear materials. These 

other uses include nuclear medicine programs at hospitals; 

academic activities at educational institutions; research 

work; industrial applications, such as gauges and testing 

equipment; and the transport, storage, and disposal of 

nuclear materials and wastes.

The NRC is headed by a Commission composed of five 

members, with one member designated by the President 

to serve as Chairman. With the advice and consent of 

the Senate, the President appoints each member to serve 

a 5-year term. The Chairman is the principal executive 

officer and official spokesperson for the Commission. 

The Executive Director for Operations carries out 

program policies and decisions made by the Commission.

The NRC’s Headquarters is located in Rockville, MD. 

The NRC has an Operations Center in the Headquarters 

building that coordinates communications with its 

licensees, State agencies, and other Federal agencies. This 

center is the focal point for assessing and responding to 

operating events in the industry. The NRC operations 

officers staff the Operations Center 24 hours a day, seven 

days a week.

The agency also has four regional offices located in King 

of Prussia, PA; Atlanta, GA; Lisle, IL; and Arlington, TX. 

The regional offices allow the agency to work closely with 

its licensees to ensure safety. The NRC also employs at 

least two resident inspectors at each of the Nation’s nuclear 

power reactor sites. 

The NRC’s budget for FY 2015 was $1,015.3 million, 

with a full-time equivalent staff ceiling of 3,778.5. The 

NRC is primarily supported by fees collected from 

its licensees. The agency collected $885.3 million 

(approximately 90 percent) of its budget for FY 2015 

from licensees, with the remaining funds provided by the 

U.S. Treasury (Treasury). 
3

transported to nuclear power plants, non-power research 

reactor facilities, and naval propulsion reactors for use 

as fuel (see Figure 1). The NRC licenses eight major fuel 

fabrication and production facilities and three enrichment 

facilities in the United States. Because they handle 

extremely hazardous material, these facilities take special 

precautions to prevent theft, diversion by terrorists, and 

dangerous exposures to workers and the public from this 

nuclear material. 

REACTORS 

To generate electricity, power plants change one form of 

energy into another. Electrical generating plants convert 

heat energy, the kinetic energy of wind or falling water, 

or solar energy, into electricity. Other types of heatconversion plants burn coal, oil, or gas to produce heat 

energy that is then used to produce electricity. Nuclear 

energy cannot be seen. Heat energy is not produced by 

burning of fuel in the usual sense. Rather, energy is given 

off by the nuclear fuel as certain types of atoms split in 

a process called nuclear fission. This energy is in the 

form of fast-moving particles and invisible radiation. As 

the particles and radiation move through the fuel and 

surrounding water, the energy is converted into heat, 

which generates electricity. The radiation energy can 

be hazardous, and facilities take special precautions 

at nuclear power plants to protect people and the 

environment from these hazards.

Because the fission reaction produces hazardous 

radioactive materials, nuclear power plants are equipped 

with safety systems to protect workers, the public, and 

the environment. Radioactive materials require careful 

use because they produce radiation, a form of energy that 

can damage human cells. Depending on the amount and 

duration of the exposure, radiation can cause cancer. In 

a nuclear reactor, most hazardous radioactive substances, 

called fission byproducts, are trapped in the fuel pellets 

or in the sealed metal tubes holding the fuel. However, 

small amounts of these radioactive fission byproducts, 

principally gases, become mixed with the water passing 

through the reactor. Other impurities in the water also 

become radioactive as they pass through the reactor. The 

facility processes and filters the water to remove these 

radioactive impurities and then returns the water to the 

reactor cooling system.

THE NUCLEAR INDUSTRY

The NRC is responsible for regulating all aspects of 

the civilian nuclear industry. The industry can best 

be described by examining the nuclear material cycle. 

The nuclear material cycle begins with the mining 

and production of nuclear fuel or the use of nuclear 

materials for medical, industrial, and other applications; 

continues with the use of nuclear fuel to power the 

Nation’s 100 nuclear power plants; and ends with the safe 

transportation and storage of spent nuclear fuel and other 

nuclear waste. The NRC’s regulatory programs ensure 

that radioactive materials are used safely and securely at 

every stage in the nuclear material cycle. To address safety 

and security issues, the NRC has developed regulatory 

practices, knowledge, and expertise specific to each 

activity in the nuclear material cycle.

Figure 1 – The Nuclear Fuel Cycle

Natural

Uranium

Enriched

Uranium

Depleted

Uranium

Deconversion of 

Depleted Uranium

Uranium-Plutonium 

Mixture

Spent

MOX

Fresh

MOX

Spent

UO2

Fresh

UO2

Fuel

Fabrication

MOX

UO2

Reactor

Storage

Pool Dry Cask

Disposal

Reprocessing

Facility

Reprocessed Milling Uranium

Conversion

Enrichment

Uranium Recovery

In Situ Mining Heap

Leach

Fuel

Fabrication

FUEL FACILITIES 

The production of nuclear fuel begins at uranium mines 

where milled uranium ore is used to produce a uranium 

concentrate called “yellow cake.” At a special facility, the 

yellow cake is converted into uranium hexafluoride gas 

and loaded into cylinders. The cylinders are sent to a 

gaseous diffusion plant, where uranium is enriched for use 

as reactor fuel. The enriched uranium is then converted 

into oxide powder, fabricated into fuel pellets (each about 

the size of a fingertip), loaded into metal fuel rods about 

3.5 meters long, and bundled into reactor fuel assemblies 

at a fuel fabrication facility. Assemblies are then 
4

MATERIALS USERS

The medical, academic, and industrial fields all use 

nuclear materials. For example, about one-third of all 

patients admitted to U.S. hospitals are diagnosed or 

treated using radioisotopes. Most major hospitals have 

specific departments dedicated to nuclear medicine. In 

all, about 112 million nuclear medicine or radiation 

therapy procedures are performed annually, with the vast 

majority used in diagnoses. Radioactive materials used 

as a diagnostic tool can identify the status of a disease 

and minimize the need for surgery. Radioisotopes give 

doctors the ability to look inside the body and observe 

soft tissues and organs, in a manner similar to the way 

X-rays provide images of bones. Radioisotopes carried in 

the blood also allow doctors to detect clogged arteries or 

check the functioning of the circulatory system. 

The same property that makes radiation hazardous 

can also make it useful in treating certain diseases like 

cancer. When living tissue is exposed to high levels of 

radiation, cells can be destroyed or damaged. Doctors can 

selectively expose cancerous cells (cells that are dividing 

uncontrollably) to radiation to either destroy or damage 

these cells.

WASTE DISPOSAL

During normal operations, a nuclear power plant generates 

both high-level radioactive waste, which consists of spent 

fuel, and low-level radioactive waste, which includes 

contaminated equipment, filters, maintenance materials, 

and resins used in purifying water for the reactor cooling 

system. Other users of radioactive materials also generate 

low-level waste.

Nuclear power plants handle each type of radioactive 

waste differently. They must use special procedures in the 

handling of the spent fuel because it contains the highly 

radioactive fission byproducts created while the reactor 

was operating. Typically, the spent fuel from nuclear 

power plants is stored in water-filled pools at each reactor 

site or at a storage facility in Illinois. The water in the 

spent fuel storage pool provides cooling and adequately 

shields and protects workers from the radiation. Several 

nuclear power plants have also begun using dry casks to 

store spent fuel. These heavy metal or concrete casks rest 

on concrete pads adjacent to the reactor facility. The thick 

layers of concrete and steel in these casks shield workers 

and the public from radiation. 

FY 2015 PERFORMANCE RESULTS

The NRC’s FY 2014 – 2018 Strategic Plan describes the 

agency’s mission, goals, and strategies. The Strategic 

Plan can be found on the NRC Web site at http://www.

nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1614/

v6/. The agency’s two strategic goals are focused on Safety 

and Security. The Safety goal is to Ensure the safe use of 

radioactive materials. The Security goal is to Ensure the 

secure use of radioactive materials. 

With the implementation of the Strategic Plan, the agency 

developed new performance indicators that are more in 

line with the Plan. Because the nature of the agency’s 

Safety and Security strategic objectives is to prevent or 

minimize undesirable outcomes, the desired trends for 

all of its performance indicators are to maintain these 

outcomes at either zero or at very low levels.

Ensure the safe use of 1 radioactive materials.

strategic goal

STRATEGIC OBJECTIVE

Strategic objectives express more specifically the results 

that are needed to achieve a strategic goal. The strategic 

objective for Goal 1 is: 

Prevent and mitigate accidents and ensure radiation 

safety.

Minimizing the likelihood of accidents and reducing 

the consequences of an accident (should one occur) 

are the key elements for achieving the NRC’s Safety 

goal. Such accidents, particularly for large complex 

facilities like nuclear power plants, have the potential 

to release significant amounts of radioactive material 

to the environment and expose facility workers and the 

public to high levels of radiation. Even in the absence 

of accidents, radiological hazards exist during routine 

operations, and the NRC ensures that measures are in 

place to minimize exposure for workers and the public 

and prevent unintended releases of radioactive materials 

to the environment. 

FY 2015 RESULTS

In FY 2015, the NRC achieved its Safety goal strategic 

objective. The NRC uses six performance indicators 

to determine whether it has met its Safety goal. The 
5

agency met all six performance indicator targets in 

FY 2015. Table 1 (see page 7) shows the outcomes from 

FY 2010 – FY 2014.

The cost of achieving the agency’s Safety goal in FY 2015 

was $1,025.5 million.

PERFORMANCE INDICATORS: FY 2015

The purpose behind the NRC’s performance indicators is 

to track the effectiveness, of agency programs to prevent 

or minimize undesirable outcomes. Therefore, the trends 

indicating the agency’s success in accomplishing its 

mission would be at or near zero.

The following performance indicators were developed 

in conjunction with the development of the agency’s 

FY 2014–2018 Strategic Plan. More information on the 

abnormal occurrence (AO) criteria is found in the Data 

Sources, Data Quality, and Data Security section of this 

chapter.

Safety Objective 1: Prevent and mitigate accidents and ensure radiation safety.

Performance Goal 1: Prevent radiation exposures that 

significantly exceed regulatory limits.

Performance Indicator: Number of radiation exposures 

that meet or exceed AO Criteria I.A.1 (unintended 

radiation exposure to an adult), I.A.2 (unintended 

radiation exposure to a minor), or I.A.31 (radiation 

exposure that has resulted in unintended permanent 

functional damage to an organ or physiological system)

Timeframe: Annual

Business Line FY 2015

Operating Reactors Target: 0 Actual: 0

New Reactors Target: 0 Actual: 0

Fuel Facilities Target: 0 Actual: 0

Decommissioning and Low-Level 

Waste Target: 0 Actual: 0

Spent Fuel Storage and 

Transportation Target: 0 Actual: 0

Nuclear Materials Users Target: ≤3 Actual: 2

1

All references to the AO criteria in this section refer to the definitions in 

Appendix A of the “Report to Congress on Abnormal Occurrences: Fiscal 

Year 2014,” NUREG‐0090, Volume 37, published May 2015.

Discussion: This indicator tracks the effectiveness of 

the NRC’s nuclear safety regulatory programs, in part 

through the number of radiation exposures to the public 

and occupational workers that exceed AO criteria. This 

indicator tracks both nuclear reactors and other nuclear 

materials users, such as hospitals and industrial users. 

Two such exposures took place during FY 2015. Incidents 

of this nature would be included in the NRC’s annual 

report to Congress, the latest version of which is available 

online through the NRC’s Agencywide Documents Access 

and Management System (ADAMS) at Accession No.  

ML15140A285. 

Performance Goal 2: Prevent releases of radioactive 

materials that significantly exceed regulatory limits.

Performance Indicator: Number of releases of 

radioactive materials that meet or exceed AO Criterion 

I.B (discharge or dispersal of radioactive material from its 

intended place of confinement that results in releases of 

radioactive material)

Timeframe: Annual

Business Line FY 2015

Operating Reactors Target: 0 Actual: 0

New Reactors Target: 0 Actual: 0

Fuel Facilities Target: 0 Actual: 0

Decommissioning and Low-Level 

Waste Target: 0 Actual: 0

Spent Fuel Storage and 

Transportation Target: 0 Actual: 0

Nuclear Materials Users Target: 0 Actual: 0

Discussion: This indicator tracks the effectiveness of the 

NRC’s nuclear material regulatory programs. Exceeding 

the applicable regulatory limits is defined as a release 

of radioactive material that causes a total effective 

radiation dose equivalent to individual members of the 

public greater than 0.1 rem in a year, exclusive of dose 

contributions from background radiation. In FY 2015, 

there were no releases of this nature.

Performance Goal 3: Prevent the occurrence of any 

inadvertent criticality events.

Performance Indicator: Number of instances 

of unintended nuclear chain reactions involving 

NRC-licensed radioactive materials
6

Timeframe: Annual

Business Line FY 2015

Operating Reactors Target: 0 Actual: 0

Fuel Facilities Target: 0 Actual: 0

Decommissioning and Low-Level 

Waste Target: 0 Actual: 0

Discussion: This indicator tracks the effectiveness of the 

NRC’s criticality regulatory programs through the number 

of unintended self-sustaining nuclear reactions occurring 

within a fiscal year. Intended criticality events include 

the startup of a nuclear power reactor.

Performance Goal 4: Prevent accident precursors and 

reductions of safety margins at commercial nuclear power 

plants (operating or under construction) that are of high 

safety significance.

Performance Indicator: Number of malfunctions, 

deficiencies, events, or conditions at commercial nuclear 

power plants (operating or under construction) that meet 

or exceed AO Criteria II.A-II.D (events at commercial 

nuclear power plant licensees)

Timeframe: Annual

Business Line FY 2015

Operating Reactors Target: ≤3 Actual: 0

New Reactors Target: ≤3 Actual: 0

Discussion: The NRC’s Reactor Oversight Process (ROP)

monitors nuclear power plant performance in three areas: 

(1) reactor safety, (2) radiation safety, and (3) security. 

Analysis of individual plant performance is based on both 

licensee-submitted performance indicators and NRC 

inspection findings, which are independent assessments 

of licensee performance by the NRC as the regulatory 

authority. Each issue is evaluated and assigned one of 

four categories in order of increasing significance: green, 

white, yellow, or red. Greater oversight by the NRC results 

as the severity of the findings increase. A red finding or 

performance indicator signals a significant reduction in 

the safety margin in the measured area. No red findings 

were issued in FY 2015.

Performance Goal 5: Prevent accident precursors and 

reductions of safety margins at nonreactor facilities or 

during transportation of nuclear materials that are of high 

safety significance.

Performance Indicator: Number of malfunctions, 

deficiencies, events, or conditions at nonreactor facilities 

or during transportation of nuclear materials that meet or 

exceed AO Criteria III.A or III.B (events at facilities other 

than nuclear power plants and all transportation events)

Timeframe: Annual

Business Line FY 2015

Fuel Facilities Target: 0 Actual: 0

Decommissioning and Low-Level 

Waste Target: 0 Actual: 0

Spent Fuel Storage and 

Transportation Target: 0 Actual: 0

Discussion: This indicator tracks the effectiveness of the 

NRC’s safety programs for nonreactor facilities or during 

transportation of nuclear materials through the number of 

instances in which safety margins at nonreactor facilities 

are at unacceptable levels.

Performance Goal 6: Prevent medical events involving 

radioactive materials that result in death or have a 

significant unintended impact on patient health.

Performance Indicator: Number of medical events that 

meet or exceed a revised version of AO Criterion III.C.3 

(events involving the medical use of radioactive materials 

in patients or human research subjects) to be developed 

in 2016

Timeframe: Annual

Business Line FY 2015

Nuclear Materials Users Target: N/A* Actual: 

* This indicator has been discontinued because the Commission approved 

alternate metrics in FY 2015 and did not approve the addition of Criterion 

III.C.3.

Discussion: This indicator tracks the effectiveness of the 

NRC’s regulatory safety program for the medical use of 

nuclear material through the number of medical events 

meeting or exceeding Criterion III.C.3.
7

Table 1 – FY 2010-2014 Safety Performance Indicators

1. Number of New Conditions Evaluated as Red by the NRC’s Reactor Oversight Process*

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target ≤ 3 ≤ 3 ≤ 3 ≤ 3 ≤ 3 Replaced by Safety 

Performance Goal 4

Actual 0 1 1 0 0

* This measure is the number of new red inspection findings and the number of new red performance indicators during the fiscal year. Programmatic issues at 

multiunit sites that result in red findings for each individual unit are considered separate conditions for purposes of reporting for this measure. A red performance 

indicator and a red inspection finding that are caused by an issue with the same underlying causes also are considered separate conditions for purposes of reporting 

for this measure. Red inspection findings are included in the fiscal year in which the final significance determination was made. Red performance indicators are 

included in the fiscal year in which the ROP external Web page was updated to show the red indicator. 

2. Number of Significant Accident Sequence Precursors (ASPs) * of a Nuclear Reactor Accident

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target ≤ 0 ≤ 0 ≤ 0 ≤ 0 ≤ 0 Replaced by Safety 

Performance Goal 4

Actual 0 0 0 0 0

*Significant ASP events have a conditional core damage probability (CCDP) or ΔCDP of greater than 1×10−3. Such events have a 1/1000 (1×10−3) or greater 

probability of leading to a reactor accident involving core damage. An identical condition affecting more than one plant is counted as a single ASP event if a single 

accident initiator would have resulted in a single reactor accident.

3. Number of Operating Reactors with Integrated Performance That Entered the Multiple/Repetitive Degraded 

Cornerstone Column or the Unacceptable Performance Column of the Reactor Oversight Process Action Matrix, or the 

Inspection Manual Chapter 0350 Process is ≤ 3 with No Performance Leading to the Initiation of an Accident Review 

Group*

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target ≤ 3 ≤ 3 ≤ 3 ≤ 3 ≤ 3 Replaced by Safety 

Performance Goal 4

Actual 0 2 1 0 0

*This measure is the number of plants that have entered the process in Inspection Manual Chapter (IMC) 0350, “Oversight of Reactor Facilities in a Shutdown 

Condition due to Significant Performance and/or Operational Concerns,” dated December 15, 2006; the multiple/repetitive degraded cornerstone column; or the 

unacceptable performance column during the fiscal year (but, were not in these columns or process the previous fiscal year). Data for this measure are obtained 

from the NRC’s external Web Action Matrix Summary page, which provides a matrix of the five columns with the plants listed within their applicable column and 

notes the plants in the IMC 0350 process. For reporting purposes, plants that are the subject of an approved deviation from the Action Matrix are included in the 

column or process in which they appear on the Web page. The target value is set based on the expected addition of several indicators and a change in the long‐term 

trending methodology (which will no longer be influenced by the earlier data and will be more sensitive to changes in current performance).

4. Number of Significant Adverse Trends in Industry Safety Performance is ≤ 1*

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015**

Target ≤ 1 ≤ 1 ≤ 1 ≤ 1 ≤ 1 ≤ 1**

Actual 0 0 0 0 0 0**

*Considering all indicators qualified for use in reporting 

**Indicator discontinued with the adoption of the indicators for the FY2014-2018 Strategic Pla
8

5. Number of Events with Radiation Exposures to the Public or Occupational Workers That Exceed Abnormal Occurrence 

(AO) Criterion I.A.3*

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Reactors Target 0 0 0 0 0

Replaced by Safety 

Performance Goal 1

Reactors Actual 0 0 0 0 0

Materials Target ≤ 2 ≤ 2 ≤ 2 ≤ 2 ≤ 2

Materials Actual 0 0 0 0 0

Waste Target 0 0 0 0 0

Waste Actual 0 0 0 0 0

*Releases for which a 30‐day report under Title 10 of the Code of Federal Regulations (10 CFR) 20.2203(a)(3) is required.

6. Number of Radiological Releases to the Environment That Exceed Applicable Regulatory Limits*

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Reactors Target 0 0 0 0 0

Replaced by Safety 

Performance Goal 2

Reactors Actual 0 0 0 0 0

Materials Target ≤ 2 ≤ 2 ≤ 2 ≤ 2 ≤ 2

Materials Actual 0 0 0 0 0

Waste Target 0 0 0 0 0

Waste Actual 0 0 0 0 0

*With no event exceeding AO Criterion I.B

SAFETY GOAL STRATEGIES

The agency used the following safety strategies from its 

Strategic Plan to guide its activities and to achieve its 

Safety goal in FY 2015: 

Safety Strategy 1: Enhance the NRC’s regulatory 

programs, as appropriate, using lessons learned from 

domestic and international operating experience and 

other sources. 

Safety Strategy 2: Enhance the risk-informed and 

performance-based regulatory framework in response to 

advances in science and technology, policy decisions, and 

other factors.

Safety Strategy 3: Ensure the effectiveness and efficiency 

of licensing and certification activities to maintain both 

quality and timeliness of licensing and certification 

reviews.

Safety Strategy 4: Maintain effective and consistent 

oversight of licensee performance to drive continued 

licensee compliance with NRC safety requirements and 

license conditions.

Safety Strategy 5: Ensure the NRC’s readiness to respond 

to incidents and emergencies involving NRC-licensed 

facilities and radioactive materials and other events of 

domestic and international interest.

Safety Strategy 6: Ensure that nuclear facilities are 

constructed in accordance with approved designs and 

that there is an effective transition from oversight of 

construction to oversight of operation.

Safety Strategy 7: Ensure that the environmental and site 

safety regulatory infrastructure is adequate to support the 

issuance of new nuclear licenses.

FUKUSHIMA REGULATORY REVIEW

The NRC’s efforts to implement the lessons learned 

from the Fukushima Dai-ichi accident in March 2011 

continued during FY 2015. Nuclear power plants in the 

United States have made great progress in implementing 

the near-term actions to address natural disasters that may 

challenge the design bases of these plants. The agency 

oversaw implementation of new requirements to address 

hazards such as earthquakes and flooding. The NRC has 

Table 1 – FY 2010-2014 Safety Performance Indicators (continued)
9

also been using the insights from Fukushima to inform 

its licensing and oversight activities. The agency has been 

conducting technical studies and regulatory analyses for 

ensuring the safe operation of existing reactors and to be 

applied to new reactors. A more complete discussion of 

the review and the subsequent actions taken by the NRC 

can be found in Chapter 2 under “Operating Reactors” in 

the FY 2015 Performance and Accountability Report. 

Additional information can be found on the agency 

Web site http://www.nrc.gov/reactors/operating/opsexperience/japan-info.html

Ensure the secure use of 2 radioactive materials.

strategic goal

STRATEGIC OBJECTIVES

Strategic objectives more specifically express the results 

that are needed to achieve a strategic goal. The strategic 

objectives for Goal 2 are: 

Ensure protection of nuclear facilities and 

radioactive materials.

Protecting nuclear facilities and radioactive materials 

are key factors for achieving the NRC’s Security goal. 

Nuclear facilities and materials are protected against 

hostile intent by two primary means: (1) control of access 

to facilities and materials; and (2) accountability controls 

for radioactive materials. These controls are intended to 

prevent those with hostile intent from either damaging 

a nuclear facility in such a way that a significant release 

of radioactive materials to the environment occurs, or 

obtaining enough radioactive material for malevolent use. 

Ensure protection of classified and Safeguards 

Information 

Protecting classified and Safeguards Information is 

another key contributor to achieving the agency’s Security 

goal. This is accomplished primarily by controlling access 

to this information to ensure that potential adversaries 

cannot use it for malevolent purposes, such as sabotage, 

theft, or diversion of radioactive materials. 

The strategic objectives specify the conditions that 

must be met for the agency to ensure the secure use of 

radioactive materials. 

FY 2015 RESULTS

In FY 2015, the NRC achieved its Security goal strategic 

objectives. The NRC also uses three Security goal 

performance indicators to determine whether the agency 

has met its Security goal. The agency met all three 

performance indicator targets in FY 2015. Outcomes 

from FY 2010 – FY 2014 are in Table 2 (see page 11). 

The cost of achieving the agency’s Security goal was 

$58.0 million in FY 2015.

SECURITY PERFORMANCE INDICATORS: FY 2015

Security Objective 1: Ensure protection of nuclear facilities and radioactive materials.

Performance Goal 1: Prevent sabotage, theft, diversion, or 

loss of risk-significant quantities of radioactive material.

Performance Indicator: Number of instances of sabotage, 

theft, diversion, or loss of risk-significant quantities of 

radioactive material that meet or exceed AO Criteria I.C.1 

(unrecovered lost, stolen, or abandoned sources), I.C.2 

(substantiated case of actual theft or diversion), and the 

portion of Criterion I.C.3 (substantiated loss of a formula 

quantity) concerning theft or diversion of special nuclear 

material.

Timeframe: Annual

Business Line FY 2015

All Business Lines Target: 0 Actual: 0 

Discussion: This indicator tracks the agency’s 

effectiveness at preventing sabotage, theft, diversion, or 

loss of risk-significant quantities of radioative material 

through tracking any loss or theft of radioactive nuclear 

sources that the NRC has determined to be of significant 

risk. The indicator tracks the agency’s performance in 

ensuring the proper accounting for radioactive sources of 

significant risk that could be used for malicious purposes. 

It also tracks whether NRC-licensed facilities maintain 

adequate protective capabilities to prevent theft or 
10

diversion of nuclear material or sabotage that could result 

in substantial harm to the public health and safety, tracks 

whether special nuclear material is accounted for, and 

verifies that formula-quantity losses of this material do 

not occur. The indicator also tracks whether the systems 

in place at NRC-licensed facilities maintain accurate 

inventories of the special nuclear material (SNM) that the 

facilities process, use, or store. No such incidents took 

place during FY 2015.

Performance Goal 2: Prevent substantial breakdowns of 

physical security, cyber security, or material control and 

accountability.

Performance Indicator: Number of substantial 

breakdowns of physical security, cyber security, or 

material control and accountability that meet or exceed 

a revised version of AO Criterion I.C.4 (substantial 

breakdown in physical security or materials control) that 

will include breakdowns of cyber security and the portion 

of AO Criterion I.C.3 concerning breakdowns of the 

accountability system for special nuclear material.

Timeframe: Annual

Business Line FY 2015

All Business Lines Target: ≤ 1 Actual: 0 

Discussion: This indicator tracks the agency’s effectiveness 

in maintaining security by tracking any breakdowns in 

access control, containment, or accountability systems 

that significantly weakened the protection against 

theft, diversion, or sabotage for nuclear materials that 

the agency has determined to be of significant risk. In 

FY 2015, there were no incidents of this nature.

Security Objective 2: Ensure protection of classified and Safeguards information.

Performance Goal 3: Prevent significant unauthorized 

disclosures of classified or SGI.

Performance Indicator: Number of significant 

unauthorized disclosures of classified or Safeguards 

Information by licensees as defined by AO Criterion 

I.C.5 and by NRC employees or contractors as defined by 

analogous NRC internal criteria.

Timeframe: Annual

Business Line FY 2015

All Business Lines Target: 0 Actual: 0 

Discussion: This indicator includes significant 

unauthorized disclosures of classified information or 

Safeguards Information (SGI) that cause damage to 

national security or public safety. SGI is a special category 

of sensitive unclassified information concerning the 

physical protection of operating power reactors, spent 

fuel shipments, strategic special nuclear material, or 

other radioactive material. This indicator tracks whether 

information that can harm national security (classified 

information) or cause damage to the public health and 

safety (SGI) has been stored and used in ways as to 

prevent its disclosure to the public, terrorist organizations, 

other nations, or personnel without a need to know. No 

significant unauthorized disclosures occurred in FY 2015.
11

Table 2 – FY 2010-2014 Security Performance Indicators

1.Unrecovered Losses of Risk‐Significant* Radioactive Sources

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target 0 0 0 0 0 Replaced by Security 

Performance Goal 1

Actual 0 1** 0 0 0

*“Risk-significant” is defined as any unrecovered, lost, or abandoned sources that exceed the values listed in Appendix P, “Category 1 and 2 Radioactive Material,”

to 10 CFR Part 110, “Export and Import of Nuclear Equipment and Material.” Excluded from reporting under this criterion are those events involving sources 

that are lost or abandoned under the following conditions: (1) sources abandoned in accordance with the requirements in 10 CFR 39.77(c), (2) recovered sources 

with sufficient indication that doses in excess of the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 did not occur during the time that the source 

was missing, (3) unrecoverable sources lost under such conditions that doses in excess of the reporting thresholds specified in AO Criteria I.A.1 and I.A.2 were not 

known to have occurred, (4) other sources that are lost or abandoned and declared unrecoverable , (5) a source for which the agency has made a determination 

that its risk significance is low based on its location (e.g., water depth) or its physical characteristics (e.g., half‐life and housing) and its surroundings, (6) cases 

in which all reasonable efforts have been made to recover the source, and (7) the determination was made that the source is not recoverable and will not be 

considered a realistic safety or security risk under this measure. (This includes licenses under the Agreement States.)

**There were no losses and one theft of radioactive nuclear material that the NRC considered to be risk significant during FY 2011. 

2.Number of Substantiated* Cases of Actual Theft or Diversion of Licensed, Risk‐Significant Radioactive Sources, or 

Formula Quantities** of Special Nuclear Material or Attacks That Result in Radiological Sabotage***

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target 0 0 0 0 0 Replaced by Security 

Performance Goal 1

Actual 0 0 0 0 0

*“Substantiated” means a situation in which an indication of loss, theft, or unlawful diversion, such as an allegation of diversion, report of lost or stolen material, 

statistical processing difference, or other indication of loss of material control or accountability cannot be refuted following an investigation and requires further 

action on the part of the agency or other proper authorities. 

**A formula quantity of special nuclear material is defined in 10 CFR 70.4, “Definitions.”

***“Radiological sabotage” is defined in 10 CFR 73.2, “Definitions.” 

3.Number of Substantiated Losses of Formula Quantities of Special Nuclear Material or Substantiated Inventory 

Discrepancies of Formula Quantities of Special Nuclear Material That Are Judged To Be Caused by Theft or Diversion or 

by Substantial Breakdown of the Accountability System

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target 0 0 0 0 0 Replaced by Security 

Performance Goal 1

Actual 0 0 0 0 0

4.Number of Substantial Breakdowns* of Physical Security or Material Control (i.e., Access Control, Containment, or 

Accountability Systems) That Significantly Weakened the Protection against Theft, Diversion, or Sabotage

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target ≤ 1 ≤ 1 ≤ 1 ≤ 1 ≤ 1 Replaced by Security 

Performance Goal 2

Actual 0 0 0 0 0

*A “substantial breakdown” is defined as a red finding in the security cornerstone of the ROP or any plant or facility that is determined either to have overall 

unacceptable performance or be in a shutdown condition (inimical to the effective functioning of the Nation’s critical infrastructure) as a result of significant 

performance problems or operational events.

5.Number of Significant Unauthorized Disclosures* of Classified and/or Safeguards Information

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Target 0 0 0 0 0 Replaced by Security 

Performance Goal 3

Actual 0 0 0 0 0

*“Significant unauthorized disclosure” is defined as a disclosure that harms national security or public health or safety.
12

SECURITY GOAL STRATEGIES

The agency used the following security strategies from 

its Strategic Plan to guide its activities and achieve its 

Security goal in FY 2015:

Security Strategy 1: Ensure the effectiveness and 

efficiency of the regulatory framework using information 

gained from operating experience and external and 

internal assessments and in response to technology 

advances and changes in the threat environment.

Security Strategy 2: Maintain effective and consistent 

oversight of licensee performance to drive continued 

licensee compliance with NRC security requirements and 

license conditions.

Security Strategy 3: Support U.S. national security 

interests and nuclear nonproliferation policy objectives 

within NRC’s statutory mandate through cooperation 

with domestic and international partners.

Security Strategy 4: Ensure material control and 

accounting for special nuclear materials

Security Strategy 5: Protect critical digital assets.

Security Strategy 6: Ensure timely distribution of security 

information to stakeholders and international partners.

Security Strategy 7: Ensure that programs for the 

handling and control of classified and Safeguards 

Information are effectively implemented at the NRC and 

at licensee facilities.

FUTURE CHALLENGES

The nuclear industry has maintained an excellent safety 

record at nuclear power plants over the past two decades 

as both the nuclear industry and the NRC have gained 

substantial experience in the operation and maintenance 

of nuclear power facilities. However, maintaining this 

excellent safety record of the industry requires that the 

agency take a proactive approach to accomplishing its 

mission. The key challenges that the agency faces as the 

regulator of nuclear materials are to ensure the safe and 

secure use of radioactive materials in areas where the 

NRC regulates. 

Figure 2 – U.S. Commercial Nuclear Power 

Reactors – Years of Operation by the End of 2015

MARKET PRESSURES ON OPERATING 

PLANTS AND LICENSE APPLICATIONS 

Market forces result in pressures to reduce operating costs. 

As a result, the NRC needs to be prepared to address 

potential shutdowns of facilities before license expiration 

and to continue to ensure that oversight programs identify 

degrading facility safety and security performance (see 

Figure 2). Several entities are seeking to submit license 

applications for small modular reactors in the next several 

years. The Department of Energy (DOE) is funding 

a program “to design, certify and help commercialize 

innovative small modular reactors (SMRs) in the United 

States.” The NRC is developing a licensing framework for 

these as well as other advanced reactors. 

SIGNIFICANT OPERATING INCIDENT AT 

A NON- U.S. NUCLEAR FACILITY 

A significant incident at a nuclear facility outside the 

United States could cause the agency to reassess its safety 

and security requirements, which could change the 

agency’s focus on some initiatives related to its objectives 

until the situation stabilizes. 

SIGNIFICANT OPERATING INCIDENT AT 

A DOMESTIC NUCLEAR FACILITY 

A significant incident at a U.S. nuclear facility could cause 

the agency to reassess its safety and security requirements, 

which could change the agency’s focus on some initiatives 

related to its objectives until the situation stabilizes. 
13

Because the NRC’s stakeholders are highly sensitive to 

many issues regarding the use of radioactive materials, 

even events of relatively minor safety significance could 

potentially require a response that consumes considerable 

agency resources. 

INTERNATIONAL NUCLEAR STANDARDS 

DEVELOPMENTS 

International organizations, such as the International 

Atomic Energy Agency (IAEA), will continue to develop 

and issue standards and guidance affecting global 

commitments to nuclear safety and security. To ensure 

that the best results are achieved both domestically and 

internationally, the NRC needs to proactively engage in 

these international initiatives and to provide leadership in 

a cooperative and collegial manner. 

INTERNATIONAL TREATIES AND 

CONVENTIONS 

As part of the international response to lessons learned 

from the Fukushima Dai-ichi nuclear accident in Japan, 

the international nuclear regulatory community is 

reviewing the Convention on Nuclear Safety. As one 

of the contracting parties to the Convention, the NRC 

is a member of the working group that is reviewing the 

Convention. Likewise, the NRC participates in the Joint 

Convention on the Safety of Spent Fuel Management and 

on the Safety of Radioactive Waste Management. 

The ratification by the United States of international 

instruments related to the security of nuclear facilities 

or radioactive materials could potentially impose 

binding provisions on the Nation and the corresponding 

governmental agencies, such as the NRC and the DOE. 

GLOBALIZATION OF THE NUCLEAR 

TECHNOLOGY AND THE NUCLEAR 

SUPPLY CHAIN 

Components for nuclear facilities are increasingly 

manufactured overseas, resulting in challenges of 

providing effective oversight to ensure that these 

components are in compliance with NRC requirements. 

In addition, the continuing globalization of nuclear 

technology is driving the need for increasing international 

engagement on the safe and secure use of radioactive 

material.

SIGNIFICANT TERRORIST INCIDENT 

A sector-specific credible threat or actual significant 

terrorist incident anywhere in the United States would 

result in the Department of Homeland Security (DHS) 

raising the threat level under the National Terrorism 

Advisory System (NTAS). In turn, the NRC would 

similarly elevate the oversight and response stance for 

NRC-regulated facilities and licensees. Potentially, new 

or revised security requirements or other policy decisions 

might affect the NRC, its partners, and the regulated 

community. In a similar fashion, a significant terrorist 

incident at a nuclear facility or activity anywhere in 

the world would need to be assessed domestically and 

potentially lead to a modification of existing security 

requirements for NRC-regulated facilities and licensees 

(see Figure 3).

Figure 3 – Security Components

LEGISLATIVE AND EXECUTIVE BRANCH 

INITIATIVES 

Congressional and Executive Branch initiatives 

concerning cyber security may potentially impact the 

NRC’s regulatory framework for nuclear security. If the 

NRC were to become concerned about an aspect of a bill 

or policy initiative that had been introduced, the staff 

would consult the Commission to develop a strategy for 

making such concerns known. 
14

The Inspector General’s Assessment of the Most Serious 

Management and Performance Challenges Facing the NRC

NRC is an independent Federal agency established to license and regulate the Nation’s civilian use of 

radioactive materials to ensure adequate protection of public health and safety, promote the common 

defense and security, and protect the environment.

NRC’s principal regulatory functions are to establish regulatory requirements and conduct confirmatory 

research to support requirements; issue licenses to facility operators and owners, possessors, and users of 

nuclear materials; oversee these licensees to ensure they are in compliance with NRC requirements and 

operate safely and securely; and respond to emergencies involving regulated activities. Based on NRC’s 

mission and objectives, the Office of the Inspector General (OIG) annually identifies what it considers to be 

the most serious management and performance challenges facing NRC. Our goal is to focus attention on 

these issues to enhance the effectiveness of NRC programs and operations.

The six management and performance challenges OIG identified for FY 2016 are directly related to NRC’s 

mission areas (commercial nuclear reactors and nuclear materials), security, information technology and 

information management, financial programs, and administrative functions. These challenges represent 

what OIG considers to be inherent and continuing program challenges relative to maintaining effective and 

efficient oversight and internal controls. While program improvements are needed, NRC is continually 

making progress to improve the efficiency and effectiveness of its programs. Challenges do not necessarily 

equate to problems. 

1. Regulation of nuclear reactor safety programs. NRC is responsible for maintaining an established 

regulatory framework for the safe and secure use of civilian nuclear reactors, including commercial 

nuclear power plants as well as research, test, and training reactors. Key reactor safety challenges include

•	 Ensuring an adequate and efficient reactor and operator licensing process, accounting for safety

impacts of major changes to plant configuration, and sufficiently evaluating older plants for license 

extensions.

•	 Providing an adequate number of trained inspectors for sufficient oversight, and ensuring inspection

procedures are adequate and are being followed.

2. Regulation of nuclear materials and radioactive waste programs. NRC is responsible for maintaining 

an established regulatory framework for the safe and secure use of nuclear materials; medical, industrial, 

and academic applications; uranium recovery, conversion and enrichment activities; fuel fabrication and 

development; and, high-level and low-level radioactive waste. Key nuclear materials and radioactive 

waste oversight challenges include 

•	 Ensuring that licensing activities are conducted consistent with NRC requirements.

•	 Providing effective oversight of licensees’ radioactive materials programs to preclude loss or theft.

UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL
15

The Inspector General’s Assessment of the Most Serious 

Management and Performance Challenges Facing the NRC

3. Management of security over internal infrastructure (personnel, physical, and cyber security) and 

nuclear security. NRC must remain vigilant with regard to the security of its infrastructure and that of 

nuclear facilities and nuclear materials. Key security challenges include

•	 Ensuring that cyber security protective measures keep pace with the growing threat.

•	 Continuing to pursue the need for new regulations focused on unique requirements of

decommissioned nuclear power plants.

4. Management of information technology and information management. Technology advances rapidly. 

The challenge is deciding which of these new technologies will work to the best interest of NRC now. Key 

information technology and information management challenges include

•	 Ensuring that information is protected and meets user requirements.

•	 Implementing The Federal Information Technology Acquisition Reform Act of 2014, which enhances

the Chief Information Officers authorities. 

5. Management of financial programs. NRC is required by the Omnibus Budget Reconciliation Act of 

1990 to collect fees totaling approximately 90 percent of its annual budget authority. In recent years, 

multiple external stakeholders have questioned NRC’s budget and fees structure. Key financial programs 

challenges include

•	 Maintaining a fee structure in accordance with laws and regulations and that is fair to agency licensees.

•	 Maintaining effective controls over financial reporting, contracts, and grants.

6. Management of administrative functions. NRC should continue exploring ways to reduce 

administrative inefficiencies while maintaining the appropriate corporate support to carry out agency 

operations. Key administrative functions challenges include

•	 Reducing related costs while continuing to provide essential administrative functions that help the

agency carry out its mission.

•	 Providing current staff with the training and tools to maintain and/or improve the skills needed to

effectively perform their jobs.

The full report is available at: http://pbadupws.nrc.gov/docs/ML1527/ML15274A142.pdf 
16

A Message from the Chief Financial Officer

I am pleased to present the summary financial statements for the U.S. Nuclear Regulatory 

Commission (NRC) Fiscal Year (FY) 2015 Summary of Performance and Financial Information. 

An independent auditor has rendered an unmodified opinion on the NRC financial statements 

for the twelfth consecutive year. The auditor has also rendered an unqualified opinion on our 

internal control over financial reporting, and noted no reportable instances of noncompliance 

with tested provisions of laws, regulations contracts or grants.

During FY 2015, the agency began implementation of its Project Aim initiative to improve 

efficiency, effectiveness, and agility for responding to a range of possible futures while fulfilling 

the NRC’s mission in the present and well into the future. NRC staff has been identifying 

opportunities to improve by examining what work the agency has been doing and what work 

should be continued and/or discontinued. Additionally, the Office of the Chief Financial Officer has been supporting 

this initiative through transformation of Cost Activity Codes to enhance information on labor and contract costs.

The agency made progress in systems modernization in FY 2015. The agency’s accounting and financial management 

systems included a system upgrade for its core general ledger system, the Financial Accounting and Integrated 

Management Information System, allowing the required functionality to incorporate the U.S. Treasury Governmentwide Treasury Accounting Symbol reporting mandate. The NRC also launched a pilot program for the NRC’s Budget 

Formulation System for interactive reporting to enhance and centralize the agency’s financial management planning and 

forecasting business process. The NRC migrated to the E-Gov Travel Service 2 in May 2015 and completed a planned 

upgrade and migration of the Human Resource Management System to address legislative requirements, add new 

capabilities, and strengthen controls. 

The NRC performed a fee revenue comparative analysis study in FY 2015 to determine best practices among fee setting 

Federal agencies requirements in an effort to streamline Fee Policy activities and shorten the Fee Rule development 

window. To enhance transparency, the agency held a public outreach meeting on the FY 2015 Proposed Fee Rule to 

discuss the rule in detail and solicit comments from stakeholders. The NRC improved the clarity of the FY 2015 Fee Rule 

work papers and posted them on-line for public access.

The agency also continued to streamline and improve its Programmatic Internal Control Framework to align with 

Government Accountability Office’s (GAO’s) updated Standards for Internal Control in the Federal Government. 

These efforts improved operating processes, reduced administrative burden on technical staff, increased management 

accountability, and provided a more interdependent approach to ensure the effectiveness and efficiency of agency 

operations. 

Ensuring the safety and security of the Nation’s civilian use of radioactive materials in the most effective and efficient 

manner remains the focus of the NRC’s mission. The regulation of the Nation’s nuclear industries during times of 

fiscal and regulatory challenges requires careful stewardship of agency resources and demands superior financial 

performance. I am pleased that our use of sound business practices and the dedication and expertise of our staff support 

accomplishment of our regulatory mission and am confident that we will continue such improvements in the future.

Maureen E. Wylie

Chief Financial Officer

February 12, 2016
17

FINANCIAL PERFORMANCE 

OVERVIEW

The NRC prepared its principal financial statements 

in accordance with the accounting standards codified 

in the Statements of Federal Financial Accounting 

Standards (SFFAS) and the Office of Management and 

Budget (OMB) Circular A-136, “Financial Reporting 

Requirements.”

As of September 30, 2015, the financial condition of the 

NRC was sound with respect to having sufficient funds 

to meet program needs and adequate control of these 

funds in place to ensure obligations did not exceed budget 

authority.

SOURCES OF FUNDS 

Total Budget Authority (In Millions)

For the fiscal years ended 

September 30, 2015 2014

Appropriations

Salaries and Expenses $ 1,003.2 $ 1,043.9

Office of the Inspector General 12.1 12.0

Total Appropriations 1,015.3 1,055.9

Other Budget Authority

Prior-years Appropriations 40.4 22.8

Prior-years Funding for 

Reimbursable Work 8.3 9.0

Prior-years Funding from DOE* 4.8 11.0

Spending Authority from 

Offsetting Collections 8.0 9.8

Recoveries of Prior-year Unpaid 

Obligations 5.0 10.6

Total Other Budget Authority 66.5 63.2

Total NRC Budget Authority $ 1,081.8 $ 1,119.1

*DOE funding for the NRC activities associated with the Nuclear Waste Policy 

Act of 1982, as amended.

Appropriations. The NRC received two appropriations: 

(1) for Salaries and Expenses and (2) for the Office of the 

Inspector General (OIG). The FY 2015 appropriations 

were $1,015.3 million, which included $1,003.2 million for 

the Salaries and Expenses appropriation and $12.1 million 

for the OIG. 

The NRC’s appropriation decreased $40.6 million 

compared to the prior year, primarily due to a decrease of 

$40.7 million for the Salaries and Expenses appropriation. 

The appropriation for the OIG stayed basically at the same 

level with a $0.1 million increase. 

The Salaries and Expenses appropriation is available until 

expended. This includes a provision that not more than 

$7.5 million may be made available for the Office of the 

Commission as a 2-year (FY 2015/2016) appropriation 

that is available for obligation by the NRC through 

September 30, 2016. After September 30, 2016, the 

remaining funds which have not been obligated for the 

Office of the Commission will be available until expended 

as part of the Salaries and Expenses appropriation. The 

OIG appropriation is available to obligate for 2 years 

(FY 2015/2016) by the OIG through September 30, 2016. 

This 2-year funding includes $0.85 million for Inspector 

General (IG) services to be provided to the Defense 

Nuclear Facilities Safety Board.

The Omnibus Budget Reconciliation Act of 1990

(OBRA-90), as amended, requires the NRC to collect 

fees to offset approximately 90 percent of its new budget 

authority, less the amount appropriated to the NRC 

from the Nuclear Waste Fund (NWF) and amounts 

appropriated for Waste Incidental to Reprocessing (WIR) 

and generic homeland security. The NRC returns the fees 

it collects to the Treasury during the FY, which offset the 

NRC’s two appropriations.

Figure 4 – Sources of Funds for 

Appropriations

In Million

900

800

700

600

500

400

300

200

100

0

Reactor

Fees

Materials

Fees

Nuclear

Waste

Fund

Treasury

General

Fund

$158.5

$81.4

$816.0

$0.0

$130.0 $87.5

$797.8

$0.0

FY 2015 FY 2014
18

The projected amount to be recovered from fees in 

FY 2015 was $895.5 million, which included $888.7 million 

from FY 2015 reactor and materials fees and $6.8 million 

from other fees (unpaid current-year invoices and 

terminated reactors’ FY 2015 annual fee collections, offset 

by payments of prior-year invoices in FY 2015.) The NRC 

collected and transferred $885.3 million to the Treasury 

(see Figure 4 on page 17), which represents 98.9 percent 

of the approximately $895.5 million projected to be 

recovered in FY 2015. The fees collected for FY 2014 and 

transferred to the Treasury totaled $897.4 million and 

included $871.2 million transferred during FY 2014 and 

$26.2 million transferred in early FY 2015. The decrease 

of $12.1 million in fees collected and transferred to the 

Treasury was mainly due to the decrease in appropriations 

in FY 2015.

Total Budget Authority. The total budget authority 

available for the NRC to obligate in FY 2015 was 

$1,081.8 million, which includes $1,015.3 million for 

appropriations, $40.4 million of prior-year appropriations, 

$8.3 million from prior-year funding for reimbursable 

work, $5.0 million of recoveries of prior-year unpaid 

obligations, $8.0 million from FY 2015 spending 

authority from offsetting collections (reimbursable work 

performed for other Federal agencies and commercial 

customers, and prior-year refunds), and $4.8 million 

of prior-year funding for resources received from the 

DOE to fund the NRC activities associated with the 

Nuclear Waste Policy Act of 1982. Funds available 

to obligate in FY 2015 decreased from the FY 2014 

amount of $1,119.1 million primarily due to decreases 

of $40.6 million in appropriations, $5.6 million in 

actual recoveries of prior-year unpaid obligations 

and $1.8 million spending authority from offsetting 

collections; offset by an increase in the beginning 

unobligated balances brought forward of $10.7 million.

USES OF FUNDS 

Funds are used when the NRC incurs obligations 

against budget authority. Obligations are legally binding 

agreements that will result in an outlay of funds.

The NRC incurred obligations of $1,053.8 million in 

FY 2015, which represented a decrease of $11.8 million 

from FY 2014 (see Figure 5). Approximately 58 percent 

of obligations in FY 2015 were for salaries and benefits. 

The remaining 42 percent were used to obtain technical 

assistance for the NRC’s principal regulatory programs, to 

conduct confirmatory safety research, to cover operating 

expenses (e.g., building rentals, transportation, printing, 

security services, supplies, office automation, and 

training), and to pay for staff travel. 

Figure 5 – Uses of Funds (Obligations)

In Million

700

600

500

400

300

200

100

0

Salaries 

and 

Benefits

Travel Grants Reimbursable 

Work

Contract 

Support

$5.1 $24.6

$596.5

$28.9

$410.4

$5.2 $27.7

$608.2

$19.8

$393.0

The unobligated budget authority available at the end 

of FY 2015 was $28.0 million which was a $25.5 million 

decrease from the FY 2014 amount of $53.5 million. 

Of the $28.0 million unobligated balance at the end 

of FY 2015, $7.9 million was for reimbursable work, 

$2.8 million was for the NWF, $4.2 million was for special 

purpose funds, and $13.1 million was available to fund 

critical needs of the NRC in FY 2016. The $53.5 million 

unobligated balance at the end of FY 2014 included 

$8.3 million for reimbursable work, $4.8 million for 

the NWF, $6.2 million for special purpose funds, and 

$34.2 million to fund critical needs of the NRC in FY 2015.

FY 2015 FY 2014
19

AUDIT RESULTS 

The NRC received an unmodified audit opinion on its 

FY 2015 financial statements and an unqualified audit 

opinion on internal controls. The auditors found no 

reportable instances of noncompliance with laws and 

regulations during the FY 2015 audit.

The Summary of Financial Statement Audit and 

Management Assurances is included on page 32 of this 

report.

LIMITATIONS ON THE FINANCIAL 

STATEMENTS

The principal financial statements have been prepared 

to report the financial position and results of 

operations of the NRC, pursuant to the requirements 

of 31 U.S.C. 3515 (b). While the statements have been 

prepared from the books and records of the NRC in 

accordance with generally accepted accounting principles 

(GAAP) for Federal entities and the formats prescribed by 

the OMB, the statements are in addition to the financial 

reports used to monitor and control budgetary resources, 

which are prepared from the same books and records. 

The statements should be read with the realization that 

they are for a component of the U.S. Government, a 

sovereign entity. The summary financial statements 

presented in this report (see pages 30 and 31) are drawn 

from the financial statements presented in the FY 2015 

Performance and Accountability Report. 

FINANCIAL STATEMENT HIGHLIGHTS 

The NRC’s summary financial statements condense the 

financial activity and the financial position of the agency.

ANALYSIS OF THE SUMMARY BALANCE 

SHEET 

The Balance Sheet, which shows the NRC’s assets, 

liabilities, and net position, is condensed in the Summary 

Balance Sheet on page 30.

Assets. The NRC’s total assets (see Figure 6) were 

$540.2 million as of September 30, 2015, representing 

a decrease of $47.1 million from the same period 

of FY 2014. Changes in major categories include 

decreases of $23.6 million in the Fund Balance with 

Treasury, $15.6 million in Accounts Receivable, Net, and 

$11.2 million in Property and Equipment, Net, offset by 

an increase of $3.3 million in Other Assets.

Figure 6 – Asset Summary (In Millions)

Other, $11.3

2%

Property and 

Equipment,

Net, $79.1

15%

Fund Balance

with Treasury, 

$353.8

65%

Accounts

Receivable, 

Net, $96.0

18%

The Fund Balance with Treasury was $353.8 million as 

of September 30, 2015, which accounts for 65 percent of 

total assets. This account represents appropriated funds, 

license fee collections, and other funds maintained at 

the Treasury to pay for current liabilities and to finance 

authorized purchase commitments. The $23.6 million 

decrease in the fund balance is primarily the result of 

an increase in the beginning balance of $59.1 million, 

offset by a decrease in appropriations of $40.6 million 

and an increase in net disbursements (cash outlays) of 

$41.4 million, which primarily consists of increases in 

salaries and benefits of $11.2 million, contract services 

of $20.0 million, equipment and software of $6.9 million, 

and travel of $3.3 million.

Accounts receivable consists of amounts that other 

Federal agencies and the public owe to the NRC for license 

fees. Accounts Receivable, Net, as of September 30, 2015, 

was $96.0 million, which included an offsetting allowance 

for doubtful accounts of $2.2 million. For FY 2014, 

the year-end Accounts Receivable, Net, balance was 

$111.6 million, including an offsetting allowance for 

doubtful accounts of $4.4 million. The net decrease in 

accounts receivable from the prior year of $15.6 million 

is primarily due to outstanding receivables at the end of 

FY 2014, whereby collections were received during the 

first week of FY 2015.
20

Property and Equipment consists primarily of typical 

office furnishings, leasehold improvements, nuclear 

reactor simulators, and computer hardware and 

software. (The NRC has no real property. The land and 

buildings in which the NRC operates are leased from the 

U.S. General Services Administration.) At the end of 

FY 2015, net property and equipment was $79.1 million, 

a decrease of $11.2 million from the FY 2014 amount of 

$90.3 million. The decrease is primarily due to a decrease 

of $13.9 million in leasehold improvements (mainly for 

the writeoff for the initial buildout of the Three White 

Flint North office building resulting from a change in 

the lease agreement associated with the NRC vacating 

the space) and a decrease of $6.9 million in the book 

value of completed capitalized software and leasehold 

improvement projects, net of amortization expense; 

offset by increases of $4.2 million for capitalized software 

development-in-progress and $3.0 million for leasehold 

improvements-in-progress on the Headquarters office 

buildings in Rockville, MD.

Liabilities. Total liabilities were $127.9 million as 

of September 30, 2015, representing an increase of 

$3.6 million from the FY 2014 year-end balance of 

$124.3 million. Accounts Payable, Federal Employee 

Benefits, and Other Liabilities remained approximately 

the same as the prior year. For FY 2015, Other Liabilities 

represents 66 percent of the Total Liabilities and includes 

$46.5 million in accrued annual leave, $18.3 million 

in accrued funded salaries and benefits, $12.1 million 

in grants payable, $5.5 million in advances received by 

the NRC for services that will be provided, $1.6 million 

in accrued workers’ compensation, and $0.9 million 

in contract holdbacks, capital lease liability, and 

miscellaneous liabilities.

Figure 7 – Liabilities Summary (In Millions)

Federal

Employee

Benefits,

$6.0

5%

 Other* 

$84.9

66%

Accounts

Payable,

$37.0

29%

*Other Liabilities: $46.5 Accrued Annual Leave, $18.3 Accrued Funded 

Salaries and Benefits, $12.1 Grants Payable, $8.0 Other

Total Liabilities include liabilities not covered by 

budgetary resources, which represent expenses recognized 

in the financial statements that will be paid from future 

appropriations. The liabilities not covered by budgetary 

resources were $54.1 million for FY 2015, compared to 

$55.2 million for FY 2014, a $1.1 million decrease. For 

FY 2015, the liabilities not covered by budgetary resources 

represent 42 percent of Total Liabilities and include 

$46.5 million in unfunded accrued annual leave that has 

been earned but not yet taken, $1.6 million in accrued 

workers’ compensation included in Other Liabilities, and 

$6.0 million as an actuarial estimate of accrued future 

workers’ compensation expenses included in Federal 

Employee Benefits.

Net Position. The difference between Total Assets and 

Total Liabilities, Net Position, was $412.3 million as of 

September 30, 2015, a decrease of $50.7 million from the 

FY 2014 year-end balance. Net Position is comprised 

of two components: Unexpended Appropriations, the 

amount of spending authority that remains unused at the 

end of the year, and Cumulative Results of Operations, 

the cumulative excess of financing sources over expenses. 
21

Unexpended Appropriations were $283.2 million at the 

end of FY 2015, a decrease of $23.0 million from the 

prior fiscal year-end. Cumulative Results of Operations 

decreased by $27.7 million from $156.8 million in 

FY 2014 to $129.1 million in FY 2015. 

ANALYSIS OF THE SUMMARY 

STATEMENT OF NET COST 

The Summary Statement of Net Cost, which links the 

NRC’s program performance to the cost of programs, is 

shown on page 30.

The Statement of Net Cost presents the gross cost of 

the NRC’s two major programs (Nuclear Reactor Safety 

and Nuclear Materials and Waste Safety) as identified 

in the NRC Annual Performance Plan, offset by earned 

revenue. The purpose of this statement is to link program 

performance to the cost of programs. The NRC’s net cost 

of operations for the year-ended September 30, 2015, was 

$182.6 million, representing an increase of $22.6 million 

compared to the FY 2014 net cost of $160.0 million. This 

includes an increase of $26.9 million in gross costs and an 

increase in earned revenues of $4.3 million, which offset 

gross costs. 

Figure 8 – Gross Costs by Program 

(In Millions)

Nuclear Reactor Safety 

$838.7

77%

Nuclear Materials and 

Waste Safety,

$244.8

23%

Gross Costs. The NRC’s total gross costs were 

$1,083.5 million for FY 2015, an increase of $26.9 million 

from the prior-year amount of $1,056.6 million. The 

Nuclear Reactor Safety program gross costs for FY 2015 

were $838.7 million compared to FY 2014 gross costs of 

$817.3 million, an increase of $21.4 million, primarily 

due to increases of $12.0 million in contract services 

and $9.4 million in salaries and benefits. The Nuclear 

Materials and Waste Safety program gross costs for 

FY 2015 were $244.8 million compared to FY 2014 gross 

costs of $239.3 million, an increase of $5.5 million (see 

Figure 8).

The cost of achieving the agency’s Safety and Security 

goals for the agency’s programs for FY 2015 is the gross 

cost presented in the Statement of Net Cost. The total cost 

for achieving the agency’s Safety goal was $1,025.5 million 

and the cost of achieving the agency’s Security goal was 

$58.0 million (see Figure 9).

Figure 9 – Gross Costs by Strategic goals

In Million

900

800

700

600

500

400

300

200

100

0

Goal: Safety Goal: Security

$230.0

$14.8

Nuclear Reactor Safety

Nuclear Materials and Waste Safety

$43.2

$795.5

Earned Revenue. Total earned revenue (see Figure 10 

on page 22) for FY 2015 was $900.8 million, an increase 

of $4.3 million from the FY 2014 earned revenue of 

$896.5 million. Revenue from the Nuclear Reactor Safety 

program in FY 2015 was $814.3 million compared to 

$815.1 million in FY 2014, a decrease of $0.8 million. 

Revenue from the Nuclear Materials and Waste Safety 

program in FY 2015 was $86.6 million compared to 

$81.5 million in FY 2014, an increase of $5.1 million. 
22

Figure 10 – Earned Revenue by Program 

(In Millions)

Nuclear Materials 

and Waste Safety,

$86.6

10%

Nuclear Reactor Safety 

$814.3

90%

Fees collected (earned primarily in FY 2015) and offset 

against the NRC appropriations were $911.5 million 

compared to $871.2 million in FY 2014. The increase of 

$40.3 million in license fee collections was the result of 

an increase of $14.1 million in current-year license fee 

collections, and $26.2 million for prior-year license fee 

collections which were applied to FY 2014 appropriations 

(see Figure 4 on page 17). The NRC is required to collect 

approximately 90 percent of its appropriation through 

license fee billing. Fees for reactor and materials licensing 

and inspections are collected in accordance with 10 CFR 

Part 170, “Fees for Facilities, Materials, Import and Export 

Licenses, and Other Regulatory Services under the Atomic 

Energy Act of 1954, as amended,” and 10 CFR Part 171, 

“Annual Fees for Reactor Licenses and Fuel Cycle Licenses 

and Materials Licenses, Including Holders of Certificates 

of Compliance, Registrations, and Quality Assurance 

Program Approvals and Government Agencies Licensed 

by the NRC.” 

ANALYSIS OF THE SUMMARY 

STATEMENT OF CHANGES IN NET 

POSITION 

The Statement of Changes in Net Position, which reports 

NRC’s change in net position for the reporting period, is 

condensed in the Summary Statement of Changes in Net 

Position on page 31.

Net position is affected by changes in its two components: 

Cumulative Results of Operations and Unexpended 

Appropriations. In FY 2015, the NRC had a decrease in 

Net Position of $50.8 million resulting from a decrease of 

$27.7 million in Cumulative Results of Operations and a 

decrease of $23.1 million in Unexpended Appropriations.

The decrease in Cumulative Results of Operations of 

$27.7 million was primarily comprised of a decrease in 

the beginning balance, brought forward October 1, of 

$3.8 million, an increase in the net cost of operations 

of $22.6 million, and a decrease in financing sources 

other than the NRC licensing fees of $1.3 million. The 

increase in net cost of operations was due to an increase 

of $26.9 million in gross costs, offset by an increase of 

$4.3 million in earned revenue. The decrease in financing 

sources was due to $7.1 million of imputed financing 

from costs absorbed by others; offset by an increase of 

$5.8 million in appropriations used to finance operations.

The change in unexpended appropriations results from 

appropriations received, net of license fee collections, 

being more or less than appropriations used to fund the 

NRC operations. The decrease in FY 2015 unexpended 

appropriations of $23.1 million is due to an increase in 

the beginning balance, brought forward October 1, of 

$63.6 million; offset by an $80.9 million decrease in 

appropriations received, net of licensee fees collected, and 

an increase of $5.8 million in appropriations used to fund 

the NRC operations. The decrease of $80.9 million in 

appropriations received, net of license fees collected, is due 

to appropriations received for FY 2015 of $1,015.3 million, 

reduced by current-year license fee collections of 

$885.3 million and prior-year license fee collections of 

$26.2 million; compared to appropriations received in 

FY 2014 of $1,055.9 million, reduced by FY 2014 license 

fee collections of $871.2 million.

MANAGEMENT ASSURANCES, 

SYSTEMS, CONTROLS, AND LEGAL 

COMPLIANCE

This section provides information on NRC’s compliance 

with the Federal Managers’ Financial Integrity Act of 1982 

(Public Law 97-255), OMB Circular A-123, “Management’s 

Responsibility for Internal Control,” and the Federal 

Financial Management Improvement Act of 1996.
23

FEDERAL MANAGERS’ FINANCIAL 

INTEGRITY ACT

The Federal Managers’ Financial Integrity Act of 1982

(FMFIA) mandates that agencies establish internal control 

to provide reasonable assurance that the agency complies 

with applicable laws and regulations; safeguards assets 

against waste, loss, unauthorized use, or misappropriation; 

and properly accounts for and records revenues and 

expenditures. The Integrity Act encompasses program, 

operational, and administrative areas, as well as 

accounting and financial management. It also requires 

the Chairman to provide an assurance statement on the 

adequacy of internal controls and on the conformance of 

financial systems with Government-wide standards.

PROGRAMMATIC INTERNAL CONTROL

Programmatic internal control consists of the 

organization, planning, policy, and procedures that 

help managers achieve intended results and safeguard 

the integrity of their programs. NRC managers are 

responsible for designing and implementing effective 

internal control in their areas of responsibility in 

accordance with the NRC’s FMFIA Governance 

Framework. Under this governance framework, each 

NRC business line lead prepares an annual assurance 

certification that identifies any control weaknesses 

requiring the attention of the NRC Executive Committee 

on Internal Control (ECIC). These certifications are 

based on internal control activities such as Probabilistic 

Risk Assessments, Management Control Reviews, 

Construction and Reactor Oversight, Force-on-Force 

Inspections, Security Core Inspections, Integrated 

Materials Performance Evaluation Program, Lessons 

Learned Oversight Board recommendations, financial 

statement audit, Inspector General and U.S. Government 

Accountability Office (GAO) audits and reports, and 

other information supplied by the agency’s Senior 

Assessment Team (SAT). The SAT provides detailed, 

centralized oversight and monitoring of financial 

systems and reporting. The business line leads 

provided substantial reasonable assurance justification 

documentation to support their respective certifications, 

as well as documented areas where internal controls 

can be strengthened. The ECIC assessed the agency’s 

programmatic operations, financial systems, and internal 

control over financial reporting and voted to recommend 

that the Chairman sign the agency’s Integrity Act 

Statement and reported to the Chairman that there were 

no internal control deficiencies serious enough to require 

reporting as a weakness or noncompliance.

The ECIC is comprised of senior executives from the 

Office of the Chief Financial Officer and the Office of the 

Executive Director for Operations. The agency’s General 

Counsel and Inspector General participate as advisors. 

In FY 2013, the agency updated its programmatic internal 

control framework. This effort required a paradigm shift 

in how the agency examines, documents, communicates, 

monitors, and reports on programmatic internal 

control. The agency’s programmatic internal control 

program now aligns with its lines of business, budget 

structure, Strategic Plan, and performance reporting. The 

updated framework addresses the five GAO Standards 

for Internal Control in the Federal Government, as 

well as GAO’s Risk Assessment Monitoring Tool, and 

the Committee of Sponsoring Organizations of the 

Treadway Commission, Internal Control – Integrated 

Framework. The updated framework streamlined the 

agency’s programmatic internal control and reasonable 

assurance processes, reduced administrative requirements 

on program and technical staff, better leveraged existing 

programmatic internal control activities across the 

agency’s lines of business, and eliminated silos and 

duplications of effort. The updated framework focused 

on shifting from an individual, office-based approach to 

assessing, documenting, monitoring, and reporting on 

programmatic internal control, to a business line-based 

approach, as supported by the Government Performance 

Results Act and Modernization Act of 2010. As a result, the 

NRC programmatic internal control program has become 

proactive in establishing the control environment that 

substantially complies with FMFIA.
24

OFFICE OF MANAGEMENT AND BUDGET 

CIRCULAR A-123, “MANAGEMENT’S 

RESPONSIBILITY FOR INTERNAL 

CONTROL” 

Internal Control Over Financial Reporting 

(Appendix A)

In FY 2006, the NRC implemented the requirements 

of the revised OMB Circular A-123, which defined and 

strengthened management’s responsibility for internal 

control in Federal agencies. The revised circular included 

updated internal control standards. Appendix A requires 

Federal agencies to assess the effectiveness of internal 

control over financial reporting and to prepare 

a separate annual statement of assurance as of 

June 30, 2015.

The NRC adopted a rotational testing plan 

to assess the effectiveness of its internal 

controls over financial reporting. In 

FY 2015, the NRC continued its assessment 

of internal controls over financial reporting 

and reevaluated the scope of its financial 

reports, materiality values, risk assessments, 

key processes, and key controls to update the 

test plan. It was determined that two of the 

eight key processes (financial reporting and 

information technology) were significant 

enough to include in the testing each year 

of the test plan cycle. The remaining six key 

processes (budget execution, disbursements, 

payroll, procurement, property, and revenue) 

were to be tested once in a 2-year cycle, three 

each year. Based on the results of the FY 2015 

evaluation, the NRC can provide reasonable 

assurance that its internal controls over 

financial reporting were operating effectively 

as of June 30, 2015, and that the evaluation 

found no material weaknesses in the design 

or operation of the internal controls over 

financial reporting. 

Requirements for Effective 

Measurement and Remediation of 

Improper Payments (Appendix C)

In FY 2011, the NRC completed an initial risk assessment 

to determine if any programs were susceptible to making 

significant improper payments in accordance with 

the Improper Payments Information Act of 2002 (IPIA) 

as amended by the Improper Payments Elimination 

and Reporting Act of 2010 (IPERA) and the Improper 

Payment Elimination and Recovery Improvement Act of 

2012 (IPERIA). The results of that assessment allowed 

the agency to conduct future risk assessments on a 

triennial basis. In its FY 2014 PAR, the NRC reported 

on the results of the improper payment risk assessment 

completed in that year.

U.S. NUCLEAR REGULATORY COMMISSION

FISCAL YEAR 2015

FEDERAL MANAGERS’ FINANCIAL INTEGRITY ACT STATEMENT

The U.S. Nuclear Regulatory Commission (NRC) managers are responsible for establishing 

and maintaining effective internal control and financial management systems that meet the 

objectives of the Federal Managers’ Financial Integrity Act of 1982 (Integrity Act). The NRC is 

able to provide an unqualified statement of assurance that the internal controls and financial 

management systems meet the objectives of the Integrity Act with no material weaknesses.

The NRC conducted its assessment of internal control over programmatic operations 

in accordance with Office of Management and Budget Circular A-123, Management’s 

Responsibility for Internal Control (A-123) guidelines. Based on the results of this evaluation, 

NRC can provide reasonable assurance that its internal control over programmatic 

operations is in substantial compliance with applicable laws and guidance, and no material 

weaknesses were found as of September 30, 2015.

In addition, the NRC conducted its assessment of the effectiveness of internal control over 

financial reporting, which includes safeguarding of assets and compliance with applicable 

laws and regulations, in accordance with the requirements of Appendix A of A-123. 

Based on the results of the evaluation, the NRC can provide reasonable assurance that its 

internal control over financial reporting as of June 30, 2015, was operating effectively, and 

no material weaknesses were found in the design or operation of the internal control over 

financial reporting.

The NRC can also provide reasonable assurance that its financial systems comply with 

applicable Federal accounting standards as required by the Federal Financial Management 

Improvement Act of 1996.

Stephen G. Burns

Chairman

U.S. Nuclear Regulatory Commission

November 9, 2015
25

The results of the FY 2014 risk assessment did not 

identify any programs that were susceptible to making 

significant improper payments. While the results of the 

FY 2014 risk assessment identified programs as low risk, 

the NRC continues to monitor its payment processes, in 

addition to conducting periodic reviews of key controls 

for IPIA programs identified by management. The NRC 

will continue to conduct a risk assessment every 3 years, 

in accordance with the IPIA, as amended by IPERA and 

IPERIA as well as OMB guidance. The next NRC IPIA 

risk assessment will take place in FY 2017. However, the 

NRC will conduct additional risk assessments, as needed, 

if there are material changes in the way programs operate 

or if the NRC establishes new programs. 

FEDERAL FINANCIAL MANAGEMENT 

IMPROVEMENT ACT 

The Federal Financial Management Improvement Act 

of 1996 (FFMIA) requires each agency to implement 

and maintain systems that comply substantially with 

(1) Federal financial system requirements, (2) applicable 

Federal accounting standards, and (3) the standard 

general ledger at the transaction level. FFMIA requires 

the Chairman to determine whether the agency’s financial 

management system complies with FFMIA and to develop 

remediation plans for systems that do not comply.

FY 2015 FFMIA RESULTS 

The Office of Chief Financial Officer (OCFO) successfully 

completed a system upgrade for its core general ledger 

system, the Financial Accounting and Integrated 

Management Information System (FAIMIS).  The upgrade 

provides the platform for the required functionality 

to incorporate the U.S. Treasury Government-wide 

Treasury Accounting Symbol (GTAS) reporting mandate 

for FY 2015.  The agency successfully migrated to the 

E-Gov Travel Service 2 system (ETS2) in May 2015.   The 

Human Resource Management System (HRMS), formerly 

known as Time and Labor Modernization (TLM), 

has completed the upgrade planning and has begun 

the migration to the new release to address legislative 

requirements and strengthen controls.  Finally, the Budget 

Formulation System (BFS) has launched a pilot program 

for interactive reporting to enhance and centralize the 

agency’s resource planning and forecasting business 

process.

In accordance with guidance established in A-123, 

Appendix D, the Chief Financial Officer reviewed audit 

reports and other sources of information, and as of 

September 30, 2015, can provide reasonable assurance 

that NRC’s financial systems substantially comply with the 

requirement of the FFMIA.    

FINANCIAL MANAGEMENT SYSTEMS 

STRATEGIES 

For a second consecutive fiscal year, the OCFO has 

completed significant financial system modernization 

projects in FY 2015.  The NRC plans to further upgrade 

FAIMIS to acquire the necessary required functionality 

for the FY 2018 OMB-mandated Internet Payment 

Platform (IPP) implementation.  The agency will continue 

to integrate and further automate FAIMIS with the 

newly implemented ETS2.  The BFS has introduced a 

pilot integrated reporting dashboard and completed 

a minor system upgrade to coincide with the agency’s 

infrastructure Internet browser upgrade project.  

PROMPT PAYMENT 

The Prompt Payment Act of 1982, as amended, requires 

Federal agencies to make timely payments to vendors 

for supplies and services, to pay interest penalties when 

payments are made after the due date, and to take cash 

discounts when they are economically justified.  In 

FY 2015, the NRC paid 98 percent of the 8,043 invoices 

subject to the Prompt Payment Act on time.

DEBT COLLECTION 

The Debt Collection Improvement Act of 1996 enhances 

the ability of the Federal Government to service and 

collect debts.  The agency’s goal is to maintain the level 

of delinquent debt owed to the NRC at year end to less 

than 1 percent of its annual billings.  The NRC met this 

goal.  At the end of FY 2015, delinquent debt was $4.6 

million or 0.5 percent of annual billings.  The NRC was 
26

able to refer 93.5 percent of all eligible debt over 180 days 

delinquent to the Treasury for collection. In addition, the 

NRC met the collections requirements of Omnibus Budget 

Reconciliation Act of 1990 (OBRA-90) which requires the 

agency to recover through fees approximately 90 percent 

of its budget authority in the current fiscal year.  

The Digital Accountability and Transparency Act of 2014

reduces the referral of delinquent invoices from 180 to 120 

days for FY 2016. To accomplish this new requirement, 

the NRC will request input from the program and regional 

offices earlier in the quarter and the amount of time given 

to respond to requests will be limited so that appropriate 

actions can be taken in a timely manner.

BIENNIAL REVIEW OF USER FEES 

The Chief Financial Officers Act of 1990 requires agencies 

to conduct a biennial review of fees, royalties, rents, and 

other charges imposed by agencies, and to make revisions 

to cover program and administrative costs incurred.  

On June 30, 2015, the NRC issued a final rule in the 

Federal Register amending the licensing, inspection, and 

annual fees charged to its applicants and licensees.  The 

amendments are necessary to implement OBRA–90, as 

amended, which requires the NRC to recover through 

fees approximately 90 percent of its budget authority, not 

including amounts appropriated for Waste Incidental 

to Reprocessing (WIR) , Defense Nuclear Facilities 

Safety Board, and amounts appropriated for generic 

homeland security activities.  Based on the Consolidated 

and Further Continuing Appropriations Act of 2015, the 

NRC’s fee recovery amount for the FY 2015 budget was 

$895.5 million.  After accounting for billing adjustments, 

the total amount to be billed as fees to licensees was 

$888.7 million.  The NRC Fee Recovery Schedules for 

FY 2015 are located at http://www.gpo.gov/fdsys/pkg/

FR-2015-06-30/pdf/2015-15763.pdf.

INSPECTOR GENERAL ACT OF 1978

The NRC has established and continues to maintain 

an excellent record in resolving and implementing 

Office of the Inspector General (OIG) open audit 

recommendations. The status of these recommendations 

can be found at: http://pbadupws.nrc.gov/docs/ML1527/

ML15279A095.pdf
27

Inspector General’s Transmittal Letter

UNITED STATES 

NUCLEAR REGULATORY COMMISSION 

WASHINGTON, D.C. 20555-0001 

 

OFFICE OF THE 

INSPECTOR GENERAL 

 February 9, 2016 

MEMORANDUM TO: Chairman Burns 

FROM: Hubert T. Bell /RA/ 

 Inspector General 

SUBJECT: TRANSMITTAL OF THE INDEPENDENT AUDITORS’ 

REPORT ON THE SUMMARY FINANCIAL STATEMENTS 

(OIG-16-A-09) 

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

Revised, August 4, 2015, 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 NRC’s 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 

CliftonLarsonAllen LLP (CLA) Auditors’ Report on the Summary Financial Statements. NRC 

publishes this report and summary financial statements as part of the “Fiscal Year 2015 

Summary of Performance and Financial Information.” 

CLA is responsible for the attached auditors’ report. 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 CLA’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 summary financial statements included in 

the summary report. However, OIG’s oversight of CLA’s work disclosed no instances where 

CLA did not comply with applicable auditing standards. 

We appreciate the cooperation provided by NRC staff. 

Attachment: As stated 

cc: Commissioner Svinicki 

Commissioner Ostendorff 

Commissioner Baran 

M. E. Wylie, CFO 

 V. M. McCree, EDO
28

CliftonLarsonAllen LLP

www.cliftonlarsonallen.com

INDEPENDENT AUDITORS’ REPORT ON SUMMARY FINANCIAL STATEMENTS

Inspector General

United States Nuclear Regulatory Commission

Chairman

United States Nuclear Regulatory Commission

The accompanying summary financial statements, which comprise the summary balance sheets

as of September 30, 2015 and 2014, the summary statements of net cost and summary 

statements of changes in net position for the years then ended, and the related notes, are derived 

from the audited financial statements of the United States Nuclear Regulatory Commission (NRC) 

as of and for the years ended September 30, 2015 and 2014. We expressed an unmodified audit 

opinion on those audited financial statements in our report dated November 6, 2015. The audited 

financial statements, and the summary financial statements derived therefrom, do not reflect the 

effects of events, if any, that occurred subsequent to the date of our report on the audited financial 

statements.

The summary financial statements do not contain the statement of budgetary resources and all 

the disclosures required by accounting principles generally accepted in the United States of 

America. Reading the summary financial statements, therefore, is not a substitute for reading the 

audited financial statements of NRC.

Management's Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary financial statements on the basis 

described in Note 1.

Auditors’ Responsibility

Our responsibility is to express an opinion about whether the summary financial statements are 

consistent, in all material respects, with the audited financial statements based on our procedures, 

which were conducted in accordance with auditing standards generally accepted in the United 

Independent Auditors’ R ep ort on the Summary 

Financial Statements

28
h t t p : / / www.nrc.gov n Protecting People and the Environment 29

Independent Auditors’ R ep ort on the Summary 

Financial Statements

INDEPENDENT AUDITORS’ REPORT ON SUMMARY FINANCIAL STATEMENTS, 

CONTINUED

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

Auditing Standards, issued by the Comptroller General of the United States. The procedures 

consisted principally of comparing the summary financial statements with the related information 

in the audited financial statements from which the summary financial statements have been 

derived, and evaluating whether the summary financial statements are prepared in accordance 

with the basis described in Note 1. We did not perform any audit procedures regarding the audited 

financial statements after the date of our report on those financial statements. 

Opinion

In our opinion, the summary financial statements of the NRC as of and for the years ended 

September 30, 2015 and 2014 referred to above are consistent, in all material respects, with the 

audited financial statements from which they have been derived, on the basis described in Note 

1.

CliftonLarsonAllen LLP

Arlington, Virginia

February 9, 2016

h t t p : / / www.nrc.gov n Protecting People and the Environment 29
30

Summary Financial Statements

SUMMARY BALANCE SHEET* (In Thousands)

As of September 30, 2015 2014

Assets

Fund balance with Treasury $ 353,838 $ 377,391 

Accounts receivable, net 96,039 111,567 

Property and equipment, net 79,056 90,280 

Other 11,288 8,076

Total Assets $ 540,221 $ 587,314 

Liabilities

Accounts payable $ 37,011 $ 38,185 

Federal employee benefits 6,040 6,669 

Other 84,915 79,416 

Total Liabilities 127,966 124,270 

Net Position

Unexpended appropriations 283,151 306,226 

Cumulative results of operations 129,104 156,818

Total Net Position 412,255 463,044 

Total Liabilities and Net Position $ 540,221 $ 587,314 

SUMMARY STATEMENT OF NET COST* (In Thousands) 

For the years ended September 30, 2015 2014

Nuclear Reactor Safety

Gross costs $ 838,682 $ 817,279

Less: Earned revenue (814,280) (815,037) 

Total Net Cost of Nuclear Reactor Safety 24,402 2,242 

Nuclear Materials and Waste Safety

Gross costs 244,777 239,305 

Less: Earned revenue (86,554) (81,515) 

Total Net Cost of Nuclear Materials and Waste 158,223 157,790 

Net Cost of Operations $ 182,625 $ 160,032
31

Summary Financial Statements

SUMMARY STATEMENT OF CHANGES IN NET POSITION* (In Thousands)

For the years ended September 30, 2015 2014

Cumulative Results of Operations

Beginning Balance $ 156,818 $ 160,637

Budgetary Financing Sources 127,252 121,264

Other Financing Sources 27,659 34,949

Net Cost of Operations (182,625) (160,032)

Net Change (27,714) (3,819)

Cumulative Results of Operations $ 129,104 $ 156,818

Unexpended Appropriations 

Beginning Balance $ 306,226 $ 242,640 

Budgetary Financing Sources (23,075) 63,586

Total Unexpended Appropriations 283,151 306,226 

Net Position $ 412,255 $ 463,044 

NOTES TO THE SUMMARY FINANCIAL STATEMENTS

NOTE 1. BASIS OF PRESENTATION 

The NRC FY 2015 summary financial statements were prepared in accordance with applied criteria determined 

by management which is consistent with OMB A-136, Financial Reporting Requirements, Section III Summary 

of Performance and Financial Information. The NRC FY 2015 summary financial statements are consistent in all 

material respects with the NRC audited financial statements as of and for the periods ended September 30, 2015 and 

September 30, 2014, from which they have been derived. 

NOTE 2. ACCOUNTING POLICIES

The summary financial statements were prepared in accordance with policies described in the notes to the NRC 

audited financial statements as of and for the periods ended September 30, 2015 and September 30, 2014; however, 

they do not include all the information necessary for financial statements prepared in accordance with accounting 

principles generally accepted for Federal entities in the United States of America. The summary financial statements 

are sufficiently complete so that the summary financial statements contain the information necessary and are at an 

appropriate level of aggregation, so that they are not misleading in the circumstances.

* For a complete set of financial statements and notes, see Chapter 3, “Financial Statements and Auditors’ Report,” beginning on page 83 of the 

FY 2015 PAR. This report can be accessed on the NRC Web site at http://www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1542
32

Summary of Financial Statement Audit and 

Management Assurances

Summary of Financial Statement Audit for FY 2015

Audit Opinion Unmodified

Restatement No

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Ending 

Balance

None 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

Summary of Management Assurances for FY 2015

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

 Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Ending 

Balance

None 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

 Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance

New Resolved Consolidated Ending 

Balance

None 0 0 0 0 0

Total Material Weaknesses 0 0 0 0 0

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Systems conform to financial management system requirements

Nonconformances Beginning 

Balance

New Resolved Consolidated Ending 

Balance

None 0 0 0 0 0

Total Nonconformances 0 0 0 0 0

Compliance with Federal Financial Management Improvement Act (FFMIA)

Agency Auditor

1. Systems Requirements No Lack of Substantial 

Compliance Noted

No Lack of Substantial 

Compliance Noted

2. Accounting Standards No Lack of Substantial 

Compliance Noted

No Lack of Substantial 

Compliance Noted

3. U.S. Standard General Ledger at 

the Transaction Level

No Lack of Substantial 

Compliance Noted

No Lack of Substantial 

Compliance Noted
h t t p : / / www.nrc.gov n Protecting People and the Environment 33

Bibliographic Data Sheet

BIBLIOGRAPHIC DATA SHEET

(See instructions on the reverse)

NRC FORM 335

(12-2010)

NRCMD 3.7

U.S. NUCLEAR REGULATORY COMMISSION 1. REPORT NUMBER

(Assigned by NRC, Add Vol., Supp., Rev.,

 and Addendum Numbers, if any.)

3. DATE REPORT PUBLISHED

MONTH YEAR

4. FIN OR GRANT NUMBER

2. TITLE AND SUBTITLE

5. AUTHOR(S) 6. TYPE OF REPORT

7. PERIOD COVERED (Inclusive Dates)

8. PERFORMING ORGANIZATION - NAME AND ADDRESS (If NRC, provide Division, Office or Region, U. S. Nuclear Regulatory Commission, and mailing address; if 

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10. SUPPLEMENTARY NOTES

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12. KEY WORDS/DESCRIPTORS (List words or phrases that will assist researchers in locating the report.)

14. SECURITY CLASSIFICATION

13. AVAILABILITY STATEMENT

unlimited

(This Page)

unclassified

(This Report)

unclassified

15. NUMBER OF PAGES

16. PRICE

NRC FORM 335 (12-2010)

NUREG-1542, Vol. 21, Supp.1

U.S. Nuclear Regulatory Commission 

Fiscal Year 2015 

Summary of Performance and Financial Information February 2016

N/A

David Holley, James Coyle, et. al Annual

Fiscal Year 2015

Division of Planning and Budget 

Office of the Chief Financial Officer 

U.S. Nuclear Regulatory Commission 

Washington, DC 20555-0001

Same as above

The Fiscal Year 2015 NRC Summary of Performance and Financial Information provides performance and summary audited 

financial statements that enable the U.S. Congress, the President, and the public to assess the performance of the agency in achieving 

its mission and stewardship of its resources. 

Performance and Accountability Report (PAR) 

Fiscal Year (FY) 

2015 

Summary of Performance and Financial Information 

Fiscal Year (FY)

2015
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