UNITED STATES NUCLEAR REGULATORY COMMISSION

ii NRC Summary of Performance And Financial Information Fiscal Year 2009

MISSION

License and regulate the Nation’s civilian use of 

byproduct, source, and special nuclear materials 

to ensure adequate protection of public health 

and safety, promote the common defense and 

security, and protect the environment.

Paperwork Reduction Act Statement

Th is NUREG does not contain any information collection requirements and therefore is not subject to the 

Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

Public Protection Notifi cation

Th e 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.

Cover photo courtesy of NRC Photo Library
www.nrc.gov Protecting People and the Environment iii

Table of Contents

A Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

About the NRC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Program Performance Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Program Performance Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Future Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

A Message from the Chief Financial Offi cer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Financial Performance Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Condensed Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Summary of Financial Statement Audit and Management Assurances . . . . . . . . . . . . . . . . . . . 14 

Systems, Controls, and Legal Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Inspector General’s Transmittal Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Independent Auditor’s Report on the Condensed Financial Statements . . . . . . . . . . . . . . . . . . 24

Th is report is a summary of the U.S. Nuclear Regulatory Commission’s Fiscal Year (FY) 

2009 Performance and Accountability Report (PAR), published on November 14, 2009. 

Th is report is an easy to read format and contains hyperlinks to the PAR online. In 

addition, a full copy of the PAR is available on the disk located on the back inside cover.
UNITED STATES NUCLEAR REGULATORY COMMISSION

iv NRC Summary of Performance And Financial Information Fiscal Year 2009

Photo Courtesy of NRC Photo Library

Th e U.S. Nuclear Regulatory Commission (NRC) headquarters in Rockville, MD.
www.nrc.gov Protecting People and the Environment 1

A Message from the Chairman

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

Summary of Performance and Accountability Information for fi scal year 

(FY) 2009. Th e report provides key fi nancial and performance information 

to Congress and the American people. Continuing our trend of excellence 

in reporting, the NRC received an eighth Certifi cate of Excellence in 

Accountability Reporting from the Association of Government Accountants 

(AGA) for our FY 2008 Performance and Accountability Report. 

Our mission of protecting public health and safety, promoting common 

defense and security, and protecting the environment is critical both to the 

licensees we regulate and to the public we serve. Th is report highlights our 

achievements in meeting our mission through the agency’s two strategic 

goals of safety and security, while adhering to the principles of good 

regulation—independence, openness, effi ciency, clarity, and reliability.  

In FY 2009, while the NRC maintained eff ective and effi cient oversight of 104 nuclear power plants through 

emphasis on strengthening the interrelationship among safety, security, and emergency preparedness, the 

agency concurrently continued to review the critical safety aspects of new reactor designs, environmental 

siting, and licensing of new nuclear power plants. Th e NRC also continued to focus on the safe and 

secure use of nuclear materials through eff ective oversight of fuel facilities, uranium recovery sites, 

decommissioning sites, and nuclear material user licensees. In addition, the agency reviewed new 

applications, including those for uranium enrichment facilities and uranium recovery, to assure that public 

health and safety and the environment would be protected.

Commensurate with the NRC’s programmatic achievements is a commitment to prudently manage the 

resources entrusted to it by the American public. Th e NRC continues to evaluate its internal controls and 

to implement internal control improvements, including those related to fi nancial reporting and fi nancial 

management systems, as required by the Federal Managers’ Financial Integrity Act (FMFIA) and Federal 

Information Security Management Act (FISMA). Based on the FMFIA assessments, I have concluded that 

there is reasonable assurance that the NRC is in substantial compliance with the FMFIA and FISMA. Th e 

NRC is pleased to have obtained an unqualifi ed opinion on the agency’s fi nancial statements for the sixth 

consecutive year. Th is report demonstrates that the agency’s fi nancial and performance data are reliable and 

complete.

Th e NRC is proud of this year’s performance in achieving the agency’s safety and security goals and looks 

forward to continuing its high-quality service to the American public in FY 2010 and beyond.

Gregory B. Jaczko

Chairman

November 13, 2009
UNITED STATES NUCLEAR REGULATORY COMMISSION

2 NRC Summary of Performance And Financial Information Fiscal Year 2009

Introduction

Th e U.S. Nuclear Regulatory Commission (NRC) Summary of Performance and Financial 

Information presents an overview of the agency’s program performance and fi nancial management 

information during fi scal year (FY) 2009. Th e summary report provides an opportunity for the public 

to assess how eff ectively the NRC uses its funds to achieve results. 

When preparing this report, the NRC staff followed the requirements of the Chief Financial Offi cers 

Act, as amended by the Reports Consolidation Act, the Government Management Reform Act of 

1994, and the Government Performance and Results Act of 1993. Th is report covers activities from 

October 1, 2008, to September 30, 2009. 

Th e NRC emphasizes keeping the public informed of its activities. Enclosed in the back of this report 

is a CD of the full version of the NRC’s FY 2009 PAR. Visit our Web site at http://www.nrc.gov to 

access this report and to learn more about who we are and what we do to serve the American public. 

About the NRC

Th e U.S. Congress established the NRC on January 19, 1975, as an independent Federal agency 

regulating the commercial and institutional uses of nuclear materials. Th e Atomic Energy Act, as 

amended, and the Energy Reorganization Act, as amended, defi nes the NRC’s purpose. Th ese 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. Th e agency regulates 

civilian nuclear power plants and other nuclear facilities, as well as other uses of nuclear materials. 

Th ese 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. 

To fulfi ll its responsibility to protect public health and safety, the NRC performs the following three 

principal regulatory functions:

1. establishes standards and regulations 

2. issues licenses for nuclear facilities and users of nuclear materials

3. inspects facilities and users of nuclear materials to ensure compliance with regulatory 

requirements 

Organization

Th e NRC is headed by a Commission composed of fi ve members, with one member designated by 

the President to serve as Chairman. With the advice and consent of the U.S. Senate, the President 

appoints each member to serve a 5-year term. Th e Chairman is the principal executive offi cer and 

offi cial spokesman for the Commission. Th e Executive Director for Operations carries out the 

Commission’s program policies and decisions. 

Th e NRC’s headquarters is located in Rockville, MD. Four regional offi ces are located in King of 

Prussia, PA; Atlanta, GA; Lisle, IL; and Arlington, TX. Th e NRC’s technical training center is located 

in Chattanooga, TN. Th e NRC also employs at least two resident inspectors at each of the Nation’s 
www.nrc.gov Protecting People and the Environment 3

Figure 1

NRC BUDGETARY AUTHORITY, 

FY 2004–2009

nuclear power reactor sites. Th e NRC’s Operations Center, located at the headquarters building in 

Rockville, MD, is the focal point for the agency’s communications with its licensees, State agencies, 

and other Federal agencies concerning operating events in the commercial nuclear sector. NRC 

operations offi cers staff the Operations Center 24 hours a day. 

Th e NRC’s budget for FY 2009 was $1,045.5 million (see Figure 1) with 3,869 full-time equivalent staff 

(see Figure 2). Th e NRC recovers approximately 90 percent of its appropriations from fees paid by 

NRC licensees.

The Nuclear Industry

Th e NRC regulates the commercial use of radioactive materials. Th e nuclear material cycle begins 

with the mining and production of nuclear fuel, continues with the use of nuclear fuel to power the 

Nation’s 104 nuclear power plants, and ends with the safe transportation and storage of spent nuclear 

fuel and other nuclear waste. Th e NRC’s regulatory programs ensure that radioactive materials are 

used safely and securely at every stage in the nuclear material cycle. Under the NRC’s Agreement 

State program, 37 States have assumed primary regulatory responsibility over the industrial, medical, 

and other users of nuclear materials in their States. Th e NRC works closely with these States to ensure 

that the States maintain public safety. To address safety and security issues, the NRC has developed 

regulatory practices, knowledge, and expertise specifi c to each activity in the nuclear material cycle. 

Approximately 20 percent of the Nation’s electricity is generated by the 104 NRC-licensed commercial 

nuclear reactors operating in 31 States (see Figure 3). Th e NRC oversees 2,970 licenses for medical, 

academic, industrial, and general uses of nuclear materials (see Figure 4). Th e agency conducts 

approximately 1,200 health and safety inspections of its nuclear materials licensees annually. In 

addition, the 37 Agreement States oversee 19,530 licensees. Th e NRC, Agreement States, and their 

licensees share a common responsibility to protect public health and safety. $ IN MILLIONS

2004

$625.6 $669.3

$741.5

$824.9 $926.1

$1,045.5

2005 2007 2009 2006 2008

$

200 2006 200 2008

Figure 2

NRC PERSONNEL CEILING, 

FY 2004–2009 STAFF

2004

3,040

3,108

3,270

3,434

3,707

3,869

2005 2007 2009 2006 2008 2007

,

Source: NRC Performance Budget Fiscal Year 2010 Source: NRC Performance Budget Fiscal Year 2010
UNITED STATES NUCLEAR REGULATORY COMMISSION

4 NRC Summary of Performance And Financial Information Fiscal Year 2009

0-9

10-19

20-29

30-39

40 plus

0

6

48

48

2

Number of

Reactors

Note: Ages have been rounded up to the end of the year.

Source: U.S. Nuclear Regulatory Commission

Years of Commercial

Operation

Figure 3

U.S. COMMERCIAL NUCLEAR 

POWER REACTORS

Fuel Facilities

Th e 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 hexafl uoride gas and loaded into cylinders. Th e cylinders are sent to a gaseous diff usion 

plant, where uranium is enriched for use as reactor fuel. Th e enriched uranium is then converted 

into oxide powder, fabricated into fuel pellets (each about the size of a fi ngertip), loaded into metal 

fuel rods about 3.5 meters long, and bundled into reactor fuel assemblies at a fuel fabrication facility. 

Assemblies are then transported to nuclear power plants, nonpower research reactor facilities, 

and naval propulsion reactors for use as fuel. Th e 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

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. A nuclear power 

plant converts heat energy into electricity. Other types of heat-conversion plants burn coal, oil, or gas 

to produce heat energy that is then used to produce electricity. Nuclear energy cannot be seen. Th ere 

is no 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 fi ssion. Th is 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. Th e radiation energy can be hazardous, and facilities take special 

precautions to protect people and the environment from these hazards. 

Because the fi ssion reaction produces potentially 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 

potentially cause cancer. In a nuclear reactor, most hazardous radioactive substances, called fi ssion 

Figure 4

U.S. MATERIALS LICENSEES

2004

NRC Agreement States

21,601

4,492

17,109

21,809

4,511

17,298

22,132

4,528

17,604

22,176

4,369

17,807

22,438 22,500

3,738 2,970

18,700 19,530

2005 2007 2009 2006 2008
www.nrc.gov Protecting People and the Environment 5

byproducts, are trapped in the fuel pellets or in the sealed metal tubes holding the fuel. However, 

small amounts of these radioactive fi ssion 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. Th e facility processes and fi lters the water to remove these radioactive impurities 

and then returns the water to the reactor cooling system.

Materials Users

Th e medical, academic, and industrial fi elds 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 specifi c 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.

Figure 5

SCHEMATIC OF THE NUCLEAR FUEL CYCLE
Protecting People and the Environment

UNITED STATES NUCLEAR REGULATORY COMMISSION

6 NRC Summary of Performance And Financial Information Fiscal Year 2009

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 these cells or damage them so they can no longer reproduce. 

Many of today’s industrial processes also use nuclear materials. High-tech methods that ensure the 

quality of manufactured products often rely on radiation generated by radioisotopes. To determine 

whether a well drilled deep into the ground has the potential for producing oil, geologists use nuclear 

well-logging, a technique that employs radiation from a radioisotope inside the well to detect the 

presence of different materials. Radioisotopes are also used to sterilize instruments, find flaws in 

critical steel parts and welds that go into automobiles and modern buildings, authenticate valuable 

works of art, and solve crimes by spotting trace elements of poison. Radioisotopes can also eliminate 

dust from film and compact discs and reduce static electricity (which may create a fire hazard) from 

can labels. In manufacturing, radiation can change the characteristics of materials, often giving them 

features that are highly desirable. For example, wood and plastic composites treated with gamma 

radiation resist abrasion and require low maintenance. As a result, they are often used for flooring in 

high-traffic areas of department stores, airports, hotels, and churches.

Waste Disposal

During normal operations, a nuclear power plant generates the following two types of radioactive 

waste: high-level waste, which consists of used fuel (usually called spent fuel), and low-level 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. 

Currently most spent fuel in the United States remains stored at individual plants. Permanent 

disposal of spent fuel from nuclear power plants requires a disposal facility that can 

provide reasonable assurance that the waste will remain isolated for thousands of years. 

Licensees often store low‐level waste onsite until its radioactivity has decayed, and the waste can be 

disposed of as ordinary trash, or until amounts are large enough for shipment to a low‐level waste 

disposal site in containers approved by the U.S. Department of Transportation. 
www.nrc.gov Protecting People and the Environment 7

Program Performance Overview

Th e NRC’s FY 2008–2013 Strategic Plan determines the agency’s long-term goals and strategic 

direction. Th e agency has two strategic goals: safety and security. To achieve its goals, the agency is 

organized into two major programs: the Nuclear Reactor Safety Program and the Nuclear Materials 

and Waste Safety Program. 

Nuclear Reactor Safety Program

Th e Nuclear Reactor Safety Program encompasses all NRC eff orts to ensure that civilian nuclear power 

reactor facilities and research and test reactors are licensed and operated in a manner that adequately 

protects the public health and safety, preserves the environment, and protects against radiological 

sabotage and theft or diversion of special nuclear material.

Nuclear Materials and Waste Safety Program

Th e Nuclear Materials and Waste Safety Program focuses on the safe and secure use of remaining 

radioactive materials. Th e Nuclear Materials and Waste Safety Program regulates fuel facilities, 

medical and industrial nuclear materials users, the disposal of both high-level and low-level waste, 

the decommissioning of power plants, and the storage and transportation of spent nuclear fuel.

Program Performance Results

Strategic Goal 1: Safety

Ensure Adequate Protection of Public Health and Safety and the Environment

Safety is the primary goal of the NRC. Th e agency achieves this goal by ensuring that the performance of licensees is at or above acceptable safety levels. NRC safety programs work in conjunction 

with our licensees in a partnership. Th e NRC licensees are responsible for designing, constructing, 

and operating nuclear facilities safely. Th e NRC is responsible for regulatory oversight of the licensees. 

Th e NRC designed its safety goal activities to achieve the following strategic outcomes:

Strategic Outcomes

■ Prevent the occurrence of any nuclear reactor accidents. 

■ Prevent the occurrence of any inadvertent criticality events. 

■ Prevent the occurrence of any acute radiation exposures resulting in fatalities. 

■ Prevent the occurrence of any releases of radioactive materials that result in signifi cant 

radiation exposures. 

■ Prevent the occurrence of any releases of radioactive materials that cause signifi cant 

adverse environmental impacts. 

FY 2009 Results

In FY 2009, the NRC achieved all fi ve of its safety goal strategic outcomes. Th e NRC also uses 

six performance measures to determine whether it has met its safety goal. Th e agency met all 

six performance measure targets in FY 2009. Th ree of the performance measures focus on 

performance at individual nuclear power plants.
UNITED STATES NUCLEAR REGULATORY COMMISSION

8 NRC Summary of Performance And Financial Information Fiscal Year 2009

Inspection results show that all of the nuclear power plants are operating safely. Th e fourth measure 

tracks the trends of several key indicators of nuclear power plant safety. Th is measure is the broadest 

measure of the safety of nuclear power plants, incorporating the performance results from all plants 

to determine industry average results. Th e measure results show that there were no statistically 

signifi cant adverse trends in any of the indicators in FY 2009. Th e last two safety performance 

measures track harmful radiation exposures to the public and occupational workers and radiation 

exposures that harm the environment. None of these measures exceeded their targets in FY 2009.

Strategic Goal 2: Security

Ensure Adequate Protection in the Secure Use and Management of Radioactive Materials 

Th e NRC must remain vigilant in ensuring the security of nuclear facilities and materials in an 

elevated threat environment. Th e agency achieves its common defense and security goal using 

licensing and oversight programs similar to those employed in achieving its safety goal. Th e NRC has 

designed its strategic goal activities to achieve the following strategic outcome:

Strategic Outcome

■ Prevent any instances in which licensed radioactive materials are used domestically in a manner 

hostile to the security of the United States. 

FY 2009 Results

In FY 2009, the NRC achieved its security goal strategic outcome. Th e NRC also uses fi ve security 

goal performance measures to determine whether the agency has met its security goal. Th e agency 

met all fi ve performance measure targets in FY 2009. Th e fi rst performance measure tracks 

unrecovered losses or theft s of risk-signifi cant radioactive sources. Th e measure ensures that those 

radioactive sources that the agency has determined to be risk-signifi cant to the public health and 

safety are accounted for at all times. Th e second, third, and fourth performance measures evaluate 

the number of signifi cant security events and incidents that occur at NRC-licensed facilities. Th ese 

measures determine whether nuclear facilities maintain adequate protective forces to prevent theft 

or diversion of nuclear material or sabotage; whether systems in place at licensee plants accurately 

account for the type and amount of materials processed, utilized, or stored; and whether the facilities 

account for special nuclear material at all times with no losses of this material. No events met the 

conditions for this measure in FY 2009. Th e last security measure tracks signifi cant unauthorized 

disclosures of classifi ed or safeguards information that may cause damage to national security or 

public safety. Th is measure focuses on whether classifi ed information or safeguards information is 

stored and utilized in such a way as to prevent its disclosure to the public, terrorist organizations, 

other Nations, or personnel without a need to know. No documented disclosures of this type of 

information occurred during FY 2009. 

Data Completeness and Reliability

Th e NRC considers the data contained in this report to be complete, reliable, and relevant. Th e 

data are complete because the agency reports actual performance data for every performance goal 

and indicator in the report. Th e agency also considers the data in this report reliable and relevant 

because the data have been validated and verifi ed. “Verifi cation and Validation of NRC’s Performance 

Measures,” contains the processes the agency uses to collect, validate, and verify performance data in 

this report. Please visit http://www.nrc.gov/about-nrc/fy2009-par-verifi cation.pdf to view this report 

in its entirety. 
www.nrc.gov Protecting People and the Environment 9

Future Challenges

The NRC ensures that the health and safety of the American public and the environment are 

adequately protected from any harmful effects of using nuclear materials. The industry has 

experienced a substantial improvement in safety at nuclear power plants over the past 20 years as 

both the nuclear industry and the NRC have gained substantial experience in the operation and 

maintenance of nuclear power facilities. However, despite the excellent safety and security record of 

the industry, the agency cannot rest on its achievements. The primary challenges the agency faces are 

the large number of new nuclear plants that have applied for licenses, the safe disposal of high‐level 

nuclear waste, and the need to ensure security at nuclear facilities.

New Nuclear Power Plants

With increased concerns about the continued availability and cost of oil, as well as concerns over the 

environmental damage caused by coal‐burning electrical plants, the amount of electricity supplied 

by nuclear power is likely to increase substantially in the future. The NRC last issued a nuclear power 

plant construction permit in 1977. The agency’s primary challenge is to license new reactors to ensure 

that they will operate safely as they provide electricity required by the Nation for economic growth. 

To date, the agency has docketed a total of 18 combined operating license (COL) applications for 

sites across the country. However, before licensing any new nuclear reactor, the agency requires a 

detailed analysis of new reactor designs. This analysis includes a study of the reactor’s vulnerability 

to accidents and security compromises. It also includes the development of inspection procedures, 

tests, analyses, and acceptable criteria for construction. The NRC is also evaluating commercial gas 

centrifuge facilities that utilize new methods of enriching nuclear fuel for reactors. 

Safe Disposal of High-Level Waste

Safely disposing of the waste from nuclear power plants is vital to protecting public health and the 

environment. In FY 2008, DOE filed a license application to establish the Nation’s first repository for 

high‐level radioactive waste at Yucca Mountain, NV. In FY2009, The agency evaluated a wide range 

of technical and scientific issues and attempted to resolve regulatory concerns. Most nuclear waste 

is now safely and securely stored at reactor sites. In addition to the storage of nuclear waste, safely 

transporting spent nuclear fuel is a significant issue for the public and the agency. More than 1,300 

spent fuel shipments regulated by the NRC have been safely transported in the United States in the 

past 25 years. Therefore, the agency must be able to assure the public that all movements of nuclear 

waste, including those to some storage site, will be safe and secure.

Security at Nuclear Facilities

In addition to safety, the security of nuclear materials is of paramount importance to the Nation. 

Nuclear facilities are among the most secure facilities in the Nation. The NRC, in concert with other 

Federal agencies, constantly monitors intelligence to determine the level of threat faced by nuclear 

facilities. The agency continues to improve the regulatory requirements to better ensure the security 

of nuclear materials and facilities. The threat faced by the Nation from those seeking to steal classified 

information has become more urgent in recent years. Nuclear facilities have implemented increased 

security measures, including “force-on-force” training exercises, to help ensure protection of this vital 

national infrastructure.
UNITED STATES NUCLEAR REGULATORY COMMISSION

10 NRC Summary of Performance And Financial Information Fiscal Year 2009

A Message from the Chief Financial Offi cer

I am pleased to present the fi nancial statements for the U.S. Nuclear Regulatory Commission 

(NRC) Fiscal Year (FY) 2009 Summary of Performance and Accountability Information. For 

the sixth consecutive year, an independent auditor has rendered an unqualifi ed opinion on the 

NRC fi nancial statements. During FY 2009, the NRC successfully enhanced its procedures for 

estimating accrued accounts payable and eliminated the remaining signifi cant defi ciency from 

our prior year audits. Additionally, for the fourth consecutive year, no material weaknesses 

were identifi ed during NRC testing to meet the requirements of Offi ce of Management and 

Budget Circular A-123, Appendix A, “Internal Controls Over Financial Reporting.” 

Th is past year, the NRC increased its focus on modernizing fi nancial systems, improving internal controls, and 

enhancing fi nancial planning and performance. Examples of our FY 2009 accomplishments include the following:

• Implementing a new structure for the FY 2011 budget to better align it with the agency mission, improve the 

transparency of budget requests, and facilitate improved costing of regulatory products and support services.

• Enhancing agency budget execution to improve FY 2009 funds utilization and recover $28 million of unused prior 

year funds from completed contracts.

• Modernizing our fi nancial systems by implementing a new eTravel system and upgrading our Web-based budget 

formulation system to increase its capabilities and reliability.

• Completing the Federal Information Security Management Act Certifi cation and Accreditation for the License 

Fee Billing System which brought the NRC into substantial compliance with the Federal Financial Management 

Improvement Act of 1996.

• Redesigning the agencywide risk assessment process to support the NRC internal control program and 

implementing an online internal control training module.

• Creating an agencywide integrated project team, selecting a vendor, and documenting system requirements to 

prepare for the transition to a new core fi nancial system at the start of FY 2011.

Our progress in FY 2009 puts the NRC in a good position to address FY 2010 challenges as we continue to improve 

our fi nancial systems and processes. Th e NRC will transition fi ve stand-alone legacy fi nancial system functions into 

a new core fi nancial system that will interface with nine remaining fi nancial and program management systems. Th e 

NRC Time and Labor Reporting System will also be updated to a Web-based version to support the core fi nancial 

system transition. Th e NRC is also preparing to meet the anticipated challenges of supporting ongoing fi nancial 

operations while simultaneously supporting the testing and startup of the new core fi nancial system. Th e new core 

fi nancial system will play an integral role in meeting our goal of making the NRC a more transparent, effi cient, and 

eff ective organization.

Th e NRC is committed to ensuring the safety and security of the Nation’s civilian use of nuclear materials in the most 

eff ective and effi cient manner. Over the past few years, the NRC has experienced unprecedented growth in its budget 

to regulate the Nation’s expanding nuclear industry. Our continued excellent fi nancial performance during this period 

of signifi cant budget growth is a tribute to the careful stewardship of taxpayer resources by the NRC staff . I am proud 

of the progress we have made in the past year to promote sound business practices in the conduct of our regulatory 

mission and am confi dent that the NRC will continue to make future improvements. 

J.E. Dyer

Chief Financial Offi cer

November 13, 2009
www.nrc.gov Protecting People and the Environment 11

Financial Performance Overview

As of September 30, 2009, the fi nancial condition of the NRC was sound with respect to having 

suffi cient funds to meet program needs and adequate control of these funds in place to ensure 

obligations did not exceed budget authority. Th e NRC prepared its fi nancial statements in accordance 

with the accounting standards codifi ed in the Statements of Federal Financial Accounting Standards 

(SFFAS) and the Offi ce of Management and Budget (OMB) Circular A-136, “Financial Reporting 

Requirements.” 

Sources of Funds

Th e NRC has two appropriations, Salaries and 

Expenses and Offi ce of the Inspector General. 

Funds for both appropriations are available 

until expended. Th e NRC’s total new FY 

2009 budget authority was $1,045.5 million 

(see Figure 6). Of this amount, $1,034.6 

million was for the Salaries and Expenses 

appropriation and $10.9 million was for the 

Offi ce of the Inspector General appropriation. 

Th is represents an increase in new budget 

authority of $119.4 million over FY 2008 

($117.3 million for the Salaries and Expenses 

appropriation and $2.1 million for the Offi ce 

of the Inspector General appropriation). In 

addition, $100.0 million from prior-year 

appropriations, $7.4 million from prior-year 

reimbursable work, and $12.3 million for new 

reimbursable work to be performed for others was available to obligate in FY 2009. Th e sum of all funds 

available to obligate for FY 2009 was $1,165.2 million, which was a $136.4 million increase over the FY 

2008 amount of $1,028.8 million.

Th e Omnibus Budget Reconciliation Act of 1990 (OBRA-90), as amended, required the NRC to collect 

fees to off set approximately 90 percent of its new budget authority, less the amount appropriated to the 

NRC from the Nuclear Waste Fund and amounts appropriated for waste incidental to reprocessing and 

generic homeland security for FY 2009. Th e NRC collected $857.8 million in reactor and material fees 

in FY 2009. Th is is 98.5 percent of the fee recovery requirement. IN MILLIONS

Reactor

Fees

Material

Fees

Nuclear

Waste Fund

General

Fund

Other

Fees

$817.6

FY 2008 FY 2009

$133.5 $125.9

$4.0 $13.3 $49.0 $49.0 $29.0

R M t

$

th

$4.0

N

$29.0

t

$

t i l

$

l

0

$67.2

G

$

Ot

$ $

l th

$ 5.9

$683.1

Figure 6

SOURCES OF FUNDS
UNITED STATES NUCLEAR REGULATORY COMMISSION

12 NRC Summary of Performance And Financial Information Fiscal Year 2009

Uses of Funds by Function

Th e NRC incurred obligations of $1,084.1 million in FY 2009, which was an increase of $134.3 million 

over FY 2008 (see Figure 7). Approximately 53 percent of obligations were used for salaries and benefi ts. 

Th e remaining 47 percent was used to obtain 

technical assistance for the NRC’s principal 

regulatory programs, to conduct confi rmatory 

safety research, to cover operating expenses 

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

security services, supplies, offi ce automation, 

training), staff travel, and reimbursable work. 

Th e unobligated budget authority available 

at the end of FY 2009 was $81.1 million, an 

increase compared to the FY 2008 amount 

of $79.0 million. Of this $81.1 million, 

$9.3 million was for reimbursable work and 

$71.8 million was available to fund critical 

NRC needs in FY 2009.

Audit Results

Th e NRC received an unqualifi ed audit 

opinion on its FY 2009 fi nancial statements. 

In FY 2008, the auditors identifi ed a signifi cant defi ciency related to the method by which the NRC 

estimated the accounts payable balance which represented costs for billed and unbilled goods and 

services received (prior to year end) that were unpaid. Prior to the last quarter of FY 2008, the NRC 

used an algorithm that recognized accounts payable as a specifi c percentage of NRC’s total expenses to 

date. Once this percentage was calculated, it was applied to an annualized expense fi gure. In the fourth 

quarter of FY 2008, the NRC implemented a revised methodology to calculate the accounts payable 

estimate. Th e new methodology involves analyzing the actual activity for the largest obligations to 

include in the estimate. For the remaining smaller obligations, the agency analyzed actual activity of 

a percentage of the obligations and developed an algorithm to estimate the total amount to include in 

the accounts payable balance. Th roughout FY 2009, the NRC continued to refi ne this methodology and 

validated the estimate each quarter. In FY 2009, the auditors closed this signifi cant defi ciency due to the 

accuracy of this new estimation methodology. 

In FY 2007 and FY 2008, the auditors also identifi ed the Fee Billing System as a substantial 

noncompliance with the Federal Financial Management Improvement Act (Improvement Act) because 

of a lack of current certifi cation and accreditation. In FY 2009, the auditors closed the substantial 

noncompliance because the NRC completed the certifi cation and accreditation of the Fee Billing System.

A summary of the Financial Statement Audit results is included on page 14 of this report. 

Figure 7

USE OF FUNDS BY FUNCTION IN MILLIONS

Salaries

and Benefi ts

Travel Reimbursable

Work

Contract

Support

$575.9

$519.1 FY 2008 FY 2009

$397.8

$471.9

$25.0 $26.0 $7.9 $10.3
www.nrc.gov Protecting People and the Environment 13

Condensed Financial Statements

CONDENSED BALANCE SHEET* (In Thousands)

As of September 30, 2009 2008

Assets

Fund balance with Treasury $ 448,632 $ 393,478 

Accounts receivable, net 128,124 121,376 

Property and equipment, net 31,624 35,475 

Other 3,372 4,149 

Total Assets $ 611,752 $ 554,478 

Liabilities

Accounts payable $ 51,000 $ 54,123 

Federal employee benefi ts 7,628 7,059 

Other 86,128 75,792 

Total Liabilities 144,756 136,974 

Net Position

Unexpended appropriations 338,637 289,269 

Cumulative results of operations 128,359 128,235 

Total Net Position 466,996 417,504 

Total Liabilities and Net Position $ 611,752 $ 554,478

STATEMENT OF NET COST* (In Thousands) 

For the years ended September 30, 2009 2008

Nuclear Reactor Safety and Security

Gross costs $ 796,898 $ 705,832 

Less: Earned revenue (794,007) (725,840)

Total Net Cost of Nuclear Reactor Safety and Security 2,891 (20,008)

Nuclear Materials and Waste Safety and Security

Gross costs 245,961 238,219 

Less: Earned revenue (78,460) (71,740)

Total Net Cost of Nuclear Materials and Waste Safety and Security 167,501 166,479 

Net Cost of Operations $ 170,392 $ 146,471

* For a complete set of fi nancial statements and notes, see Chapter 3, “Financial Statements and 

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

accessed at http://www.nrc.gov.
UNITED STATES NUCLEAR REGULATORY COMMISSION

14 NRC Summary of Performance And Financial Information Fiscal Year 2009

* For a complete set of fi nancial statements and notes, see Chapter 3, “Financial Statements and 

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

accessed at http://www.nrc.gov.

For the complete Summary of Financial Statement Audit and Management Assurances see page 167 of the Fiscal 

Year 2009 Performance and Accountability Report. Th is report can be accessed at http://www.nrc.gov.

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

For the years ended September 30, 2009 2008

Cumulative Results of Operations

Beginning Balance $ 128,235 $ 27,164 

Budgetary Financing Sources 138,309 127,197

Other Financing Sources 32,207 120,345

Net Cost of Operations (170,392) (146,471)

Net Change 124 101,071 

Cumulative Results of Operations $ 128,359 $ 128,235 

Unexpended Appropriations 

Beginning Balance $ 289,269 $ 254,027 

Budgetary Financing Sources 49,368 35,242

Total Unexpended Appropriations 338,637 289,269 

Net Position $ 466,996 $ 417,504

Summary of Financial Statement Audit and Management 

Assurances

SUMMARY OF FINANCIAL STATEMENT AUDIT

Audit Opinion—Unqualifi ed Restatement—No Material Weaknesses—No

SUMMARY OF MANAGEMENT ASSURANCES

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

Statement of Assurance—Unqualifi ed Material Weaknesses—No

Conformance with Financial Management System Requirements (FMFIA § 4) 

Statement of Assurance—Systems Conform to Requirements Nonconformance—No

Compliance with Federal Financial Management Improvement Act (FFMIA)

Overall Substantial Compliance Agency – Yes Auditor – Yes
www.nrc.gov Protecting People and the Environment 15

Limitations of the Financial Statements

Th e principal statements have been prepared to report the fi nancial 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 fi nancial reports used to monitor and control budgetary resources, which are prepared 

from the same books and records. Th e statements should be read with the realization that they are for 

a component of the U.S. Government, a sovereign entity.

Financial Statement Highlights

Th e NRC’s fi nancial statements summarize the fi nancial activity and fi nancial position of the agency. 

Analysis of the Balance Sheet

Th e NRC’s assets (see Figure 8) were 

$611.8 million as of September 30, 2009, 

an increase of $57.3 million from the end 

of FY 2008. Th e increase is due to the 

Fund Balance with the U.S. Department 

of the Treasury (Treasury) increasing by 

$55.1 million as a result of an increase in 

appropriated funds received which were 

obligated but not yet disbursed. Th e assets 

reported in the NRC’s Balance Sheet are 

summarized in the Condensed Balance Sheet 

on page 13.

Th e Fund Balance with Treasury was 

$448.6 million at September 30, 2009, 

accounting for 73 percent of total assets. 

Th is account represents appropriated funds, 

collected license fees, and other funds 

maintained at Treasury to pay current liabilities 

and to fi nance authorized purchase commitments. Th e $55.1 million increase in the balance primarily 

refl ects an increase of $119.4 million in new budget authority (including an increase of $20.0 million 

for the Nuclear Waste Fund transfer), a $37.1 million beginning balance increase over the prior year 

beginning balance, and an increase of $107.4 million in fee collections, less expenditure increases of 

$60.1 million in salaries and benefi ts, $46.6 million in general disbursements, $8.5 million in grant 

disbursements, and an increase in fee collection transfers to Treasury of $94.2 million. Th e diff erence 

between the increase in fee collections and fee collections transferred to Treasury resulted from an over 

collection of $13.3 million in fees during FY 2007, which were included in the FY 2008 fee transfer to 

Treasury. 

Figure 8

ASSET SUMMARY (In Millions)

Other,

$3.4

1%

Property and

Equipment,

Net, $31.6

5%

Fund Balance

with Treasury, $448.6

73%

Accounts

Receivable, Net,

$128.2

21%
UNITED STATES NUCLEAR REGULATORY COMMISSION

16 NRC Summary of Performance And Financial Information Fiscal Year 2009

Accounts receivable consists of amounts owed 

to the NRC by other Federal agencies and 

the public. Accounts Receivable, Net as of 

September 30, 2009, was $128.2 million, which 

includes an off setting allowance for doubtful 

accounts of $3.1 million. Th is 6 percent 

increase from the FY 2008 year-end Accounts 

Receivable, Net balance of $121.4 million 

is primarily the result of an increase of 

$11.4 million in licensing and inspection 

activities due to an increase in hours invoiced 

and in the hourly rate for the NRC’s services, 

off set by a decrease of $5.4 million in accruals 

for materials and facilities open inspections.

Total liabilities (see Figure 9) were 

$144.8 million as of September 30, 2009, an 

increase of $7.8 million from the FY 2008 

year-end balance of $137.0 million. Th e 

increase resulted from an increase in Other Liabilities of $10.4 million, which primarily includes 

increases of $3.6 million in accrued annual leave, $3.5 million in accrued funded salaries and benefi ts, 

and $2.4 million in grants payable.

Of the agency’s liabilities, $56.6 million was not covered by budgetary resources, an 8 percent increase 

over the balance of $52.5 million as of September 30, 2008. Th e increase of $4.1 million was primarily 

due to an increase in unfunded accrued annual leave of $3.6 million resulting from an increase in 

the number of full-time employee equivalents and salary increases. Th e liabilities not covered by 

budgetary resources in FY 2009 include $47.3 million in unfunded accrued annual leave included in 

Other Liabilities for the amount of leave earned but not yet taken and $7.6 million in future workers’ 

compensation included in Federal Employee Benefi ts.

Net Position, the diff erence between Total Assets and Total Liabilities, was $467.0 million as of 

September 30, 2009, an increase of $49.5 million from the FY 2008 year-end balance. Net Position is 

comprised of two components: Unexpended Appropriations and Cumulative Results of Operations. 

Unexpended Appropriations is the amount of spending authority granted by Congress that remains 

unused by the agency. Th e increase in FY 2009 for Unexpended Appropriations is $49.3 million. 

Cumulative Results of Operations, which represents the cumulative excess of fi nancing sources over 

expenses, remained relatively constant.

Analysis of the Statement of Net Cost

Net costs are gross costs off set by earned revenue. Th e Statement of Net Cost presents the net cost 

of NRC’s two programs. Th e purpose of this statement is to link program performance to the cost 

of programs. Th e NRC’s Net Cost of Operations for the year ended September 30, 2009, was $170.4 

million, which is an increase of $23.9 million over the FY 2008 net cost of $146.5 million. Net costs by 

program are shown in the Statement of Net Cost on page 13.

Federal

Employee

Benefits,

$7.6

5%

Other 

$86.2

60%

Accounts

Payable,

$51.0

35%

Figure 9

LIABILITIES SUMMARY (In Millions)
www.nrc.gov Protecting People and the Environment 17

Th e NRC’s total gross costs (see Figure 10) 

increased $98.8 million. Th e Nuclear 

Reactor Safety and Security program gross 

costs increased $91.1 million primarily 

because of increases of $51.2 million in 

salaries and benefi ts, $24.3 million in 

contractor support, and $7.8 million in 

grants for nuclear education. Th ese increases 

are primarily in the areas of new reactor 

activities, and existing licensing and 

oversight activities. Th e Nuclear Materials 

and Waste Safety and Security program 

gross costs increased $7.7 million primarily 

in the areas of nuclear materials licenses, 

fuel facilities, and decommissioning 

activities.

Total earned revenue (see Figure 11) 

increased $74.9 million from $797.6 million 

for the year ended September 30, 2008, 

to $872.5 million at September 30, 2009. 

Earned revenue increased for the Nuclear 

Reactor Safety and Security program by 

$68.2 million and for the Nuclear Materials 

and Waste Safety and Security program 

by $6.7 million. Th e increases primarily 

result from increases in fees collected due 

to the increase in appropriations for NRC 

activities, of which the NRC is required to 

collect approximately 90 percent through 

fee billing. Fees for reactor and materials 

licensing and inspections are collected 

in accordance with Title 10 of the Code 

of Federal Regulations (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 Certifi cates of Compliance, Registrations, and Quality Assurance Program Approvals and 

Government Agencies Licensed by the NRC.”

Analysis of the Statement of Changes in Net Position

Th e Statement of Changes in Net Position reports the change in net position during the reporting 

period. Net position is aff ected by changes in its two components—Cumulative Results of Operations 

and Unexpended Appropriations. Th e increase in Net Position of $49.5 million from FY 2008 to 

Nuclear Reactor

Safety and Security, 

$796.9

76%

Nuclear Materials and 

Waste Safety

and Security,

$246.0

24%

Figure 10

GROSS COSTS (In Millions)

Nuclear Materials 

and Waste Safety

and Security,

$78.5

9%

Nuclear Reactor

Safety and Security, 

$794.0

91%

Figure 11

EARNED REVENUE (In Millions)
UNITED STATES NUCLEAR REGULATORY COMMISSION

18 NRC Summary of Performance And Financial Information Fiscal Year 2009

U.S. NUCLEAR REGULATORY COMMISSION

FEDERAL MANAGERS’ FINANCIAL INTEGRITY ACT

STATEMENT FOR FY 2009

The U.S. Nuclear Regulatory Commission’s (NRC) management is responsible for 

establishing and maintaining effective internal control and fi nancial management 

systems that meet the objectives of the Federal Managers’ Financial Integrity 

Act (Integrity Act). The NRC conducted its assessment of internal control over the 

effectiveness and effi ciency of operations and compliance with applicable laws 

and regulations, and in accordance with OMB Circular A-123, “Management’s 

Responsibility for Internal Control.” Based on the results of this evaluation, the NRC 

can provide reasonable assurance that its internal control over the effectiveness and 

effi ciency of operations and compliance with applicable laws and regulations as 

of September 30, 2009, was operating effectively and no material weaknesses were 

found in the design or operation of internal control. 

NRC can also provide reasonable assurance that its fi nancial systems substantially 

conform to the Integrity Act and comply with the component requirements of the 

Federal Financial Management Improvement Act.

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

over fi nancial reporting, which includes safeguarding of assets and compliance with 

applicable laws and regulations, in accordance with the requirements of Appendix 

A of OMB Circular A-123. Based on the results of the evaluation, the NRC can provide 

reasonable assurance that NRC’s internal control over fi nancial reporting as of June 

30, 2009, was operating effectively, and no material weaknesses were found in the 

design or operation of the internal control over fi nancial reporting.

Gregory B. Jaczko

Chairman

U.S. Nuclear Regulatory Commission

November 13, 2009

FY 2009 was the result of an increase in Unexpended Appropriations. A change in unexpended 

appropriations results from appropriations received being more, or less, than appropriations used 

during the fi scal year. In FY 2009, appropriations received of $138.7 million consisted of NRC’s total 

appropriation of $1,045.5 million, reduced by $857.8 million in fee collections returned to Treasury 

and the Nuclear Waste Fund transfer of $49.0 million. Appropriations used in FY 2009 totaled 

$89.3 million and consisted of funds used of $993.9 million reduced by collection from fees assessed 

of $857.8 million and Nuclear Waste Fund expenses of $46.8 million. Th e Statement of Changes in 

Net Position is presented on page 14.

Systems, Controls, and Legal Compliance 
www.nrc.gov Protecting People and the Environment 19

Management Assurances

Th is section provides information on the NRC’s compliance with the Federal Managers’ Financial 

Integrity Act, the OMB Circular A-123, “Management’s Responsibility for Internal Control,” and the 

Federal Financial Management Improvement Act. Th e “Summary of Financial Statement Audit and 

Management Assurances” on page 14 is a summary of these assurances. 

Federal Managers’ Financial Integrity Act

Th e Integrity Act mandates that agencies establish controls to reasonably ensure that the agency 

(1) complies with applicable laws concerning obligations and costs; (2) safeguards assets against waste, 

loss, unauthorized use, or misappropriation; and (3) properly accounts for and records revenues 

and expenditures. Th e Integrity Act encompasses program, operational, and administrative areas, as 

well as accounting and fi nancial management. It also requires the Chairman to provide an assurance 

statement on the adequacy of internal controls and on the conformance of fi nancial systems with 

Governmentwide standards.

Management Control Review Program

Managers throughout the NRC are responsible for implementing eff ective controls in their areas 

of responsibility. Each offi ce director and regional administrator prepares an annual assurance 

certifi cation that identifi es any control weaknesses requiring the attention of the NRC’s Executive 

Committee on Internal Control (ECIC). Th ese statements are based on various sources, including 

management knowledge gained from the daily operation of agency programs, management reviews, 

program evaluations, audits of fi nancial statements, reviews of fi nancial systems, annual performance 

plans, Inspector General and U.S. Government Accountability Offi ce reports, and reports and other 

information provided by the congressional committees of jurisdiction. 

Th e NRC’s ECIC includes senior executives from the Offi ce of the Chief Financial Offi cer and the 

Offi ce of the Executive Director for Operations. A staff member from the Offi ce of the General 

Counsel participates as an advisor. 

Th e ECIC met and reviewed the assurance certifi cations provided by the offi ces and regions. Th e ECIC 

then informed the Chairman as to whether the NRC had any internal control defi ciencies serious 

enough to require reporting as a material weakness or noncompliance. 

Th e NRC’s ongoing internal control program requires, among other things, that reports on internal 

control defi ciencies be integrated into the offi ces’ and regions’ annual operating plans. Th e operating 

plan process provides for periodic updates and ensures that key issues receive senior management 

attention. Combined with the individual assurance statements discussed previously, the internal 

control information in these plans provides the framework for monitoring and improving the agency’s 

internal controls on an ongoing basis.
UNITED STATES NUCLEAR REGULATORY COMMISSION

20 NRC Summary of Performance And Financial Information Fiscal Year 2009

FY 2009 Integrity Act Results

Th e NRC evaluated its internal control systems for the fi scal year ending September 30, 2009. Based 

on this evaluation, the NRC is able to provide a statement of assurance that the internal controls 

and fi nancial management systems meet the objectives of the Integrity Act. Th e NRC has reasonable 

assurance that its internal controls are eff ective and that its fi nancial management systems conform to 

Governmentwide standards.

Offi ce of Management and Budget Circular A-123, “Management’s Responsibility for 

Internal Control,” including Appendix A, “Internal Control over Financial Reporting”

In FY 2006, the NRC implemented the requirements of the OMB revised Circular A-123, which 

defi ned and strengthened management’s responsibility for internal control in Federal agencies. Th e 

revised circular included updated internal control standards. A new section, Appendix A, required 

Federal agencies to assess the eff ectiveness of internal controls over their fi nancial reporting and to 

prepare a separate annual statement of assurance as of June 30, 2009. 

In FY 2007, the agency adopted a 3-year rotational testing plan. Th e NRC determined that three of the 

original nine key processes were signifi cant enough to include in the testing each year of the 3-year 

cycle. Th e remaining six key processes were to be tested once in the 3-year cycle, two each year. In 

FY 2008 and 2009, the NRC continued its assessment of internal control over fi nancial reporting. Th e 

agency reevaluated its scope of fi nancial reports, materiality values, risk assessments, key processes, 

and key controls. Based on the results of this evaluation, the NRC can provide reasonable assurance 

that its internal control over fi nancial reporting was operating eff ectively as of June 30, 2009, and that 

the evaluation found no material weaknesses in the design or operation of the internal controls over 

fi nancial reporting.

Federal Financial Management Improvement Act

Th e Federal Financial Management Improvement Act (Improvement Act) requires each agency to 

implement and maintain systems that comply substantially with (1) Federal fi nancial management 

system requirements, (2) applicable Federal accounting standards, and (3) the standard general ledger 

at the transaction level. Th e Improvement Act requires the Chairman to determine whether the 

agency’s fi nancial management systems comply with the Improvement Act and to develop remediation 

plans for systems that do not comply.

FY 2009 Improvement Act Results

As of September 30, 2009, the NRC evaluated its fi nancial systems to determine if they complied with 

applicable Federal requirements and accounting standards required by the Improvement Act. Th e 

NRC evaluated the following eight systems: the Federal Financial System, Federal Personnel Payroll 

System, Human Resources Management System, Cost Accounting System, Advice of Allotments/

Financial Plan System, Capitalized Property System, Fee Billing System, and Controller Resource 
www.nrc.gov Protecting People and the Environment 21

Database System. As of September 30, 2009, the agency’s fi nancial management systems were in 

compliance with the Improvement Act. In making this determination, the NRC considered all the 

information available, including the report from the ECIC on the eff ectiveness of internal controls, 

the Offi ce of the Inspector General audit reports, and the results of the agency’s fi nancial management 

system reviews. Th e agency also relied on the Department of the Interior National Business Center 

(DOI-NBC) annual reasonable assurance statement, which concluded that, for FY 2009, the 

cross-serviced fi nancial systems were in substantial compliance with Federal fi nancial management 

system requirements.

In FY 2008, the fi nancial management systems were in compliance with the Improvement Act, except 

for the Licensee Fee Billing System (Fee System) which was operating without its accreditation and 

Authority to Operate (ATO). Th e ATO was granted June 2009, therefore, the Inspector General closed 

the fi nding (see Audit Results on page 12).

Prompt Payment

Th e Prompt Payment Act requires Federal 

agencies to make timely payments to vendors 

for supplies and services, to pay interest 

penalties when payments are made aft er the 

due date, and to take cash discounts when 

they are economically justifi ed. In FY 2009, 

the NRC paid 96 percent of the 12,903 

invoices subject to the Prompt Payment Act 

on time (see Figure 12). Th e NRC incurred 

$19,825 in interest penalties during FY 2009. 

Improper Payments

Th e NRC remains at low risk of making 

improper payments. At the present 

time, the NRC’s payments consist of 

commercial vendor, interagency, and travel 

reimbursements. Th e NRC monitors and 

reports improper payments within its programs and continues to evaluate internal controls guarding 

against improper payments. Th e NRC continues to perform annual risk assessments for each of 

these areas. Based on the FY 2009 risk assessments, the number and amount of improper payments 

fall below the external reporting requirement established by OMB guidance on what is considered 

a signifi cant risk. Th e NRC awards less than $500 million in annual contracts and, therefore, is not 

subject to annual reporting under the Recovery Auditing Act. Th e DOI-NBC’s Federal Personnel/

Payroll System, as the system of record for payroll disbursements, is responsible for monitoring and 

reporting on any improper payroll-related payments. PERCENTAGE

2004

94% 96% 95% 95% 93% 96%

2005 2007 2009 2006 2008

Figure 12

PROMPT PAYMENT
UNITED STATES NUCLEAR REGULATORY COMMISSION

22 NRC Summary of Performance And Financial Information Fiscal Year 2009

Debt Collection

Th e Debt Collection Improvement 

Act enhances the ability of the Federal 

Government to service and collect debts. 

Th e 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. Th e NRC continues to meet this 

goal and, at the end of FY 2009, delinquent 

debt was $2.1 million (see Figure 13). Th e 

NRC continues to pursue the collection of 

delinquent debt and refers all eligible debt 

over 180 days delinquent to the Treasury for 

collection.

Biennial Review of User Fees

Th e Chief Financial Offi cers Act 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. Each year, the NRC revises 

the hourly rates for license and inspection fees and adjusts the annual fees to meet the fee collection 

requirements of OBRA-90, as amended. Th e Federal Register (74 FR 27641, June 10, 2009) describes the 

most recent changes to the license, inspection, and annual fees. In FY 2009, the NRC revised the fees for 

public use of the auditorium to more appropriately recover the actual costs. Th e agency concluded that 

other types of fees did not warrant revisions at this time.

Inspector General Act

Th e NRC has established and continues to maintain an excellent record in resolving and implementing 

Offi ce of the Inspector General open audit recommendations. Th e Th e NRC’s Fiscal Year 2009 

Performance and Accountability Report includes this information. IN MILLIONS

2004

$0.45 $0.5

$0.9

$1.4

$2.0 $2.1

2005 2007 2009 2006 2008

Figure 13

DELINQUENT DEBT
www.nrc.gov Protecting People and the Environment 23

Inspector General’s Transmittal Letter

UNITED STATES 

NUCLEAR REGULATORY COMMISSION 

WASHINGTON, D.C. 20555-0001 

OFFICE OF THE 

INSPECTOR GENERAL 

 January 14, 2010

MEMORANDUM TO: Chairman Jaczko

FROM: Hubert T. Bell /RA/

 Inspector General

SUBJECT: TRANSMITTAL OF THE INDEPENDENT AUDITOR’S REPORT ON 

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

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

Revised, June 10, 2009, strongly encourages all entities producing a Performance and 

Accountability Report (PAR) to prepare a Summary Report which summarizes performance 

and accountability results for the fi scal year. The Summary Report should include the most 

important performance and fi nancial information contained in the PAR in a brief, user-friendly 

format that is easily understood by a reader with little technical background in these areas. 

The purpose of this memorandum is to transmit Urbach Kahn & Werlin, LLP (UKW) Auditor’s 

Report on the Condensed Financial Statements included in the Summary Report. 

UKW is responsible for the attached unqualifi ed auditor’s opinion, dated November 6, 2009. 

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

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

of UKW’s work, as diff erentiated from an audit in conformance with Government Auditing 

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

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

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

applicable auditing standards. 

We appreciate the cooperation provided by NRC staff .

Attachment: As stated

cc: Commissioner Klein

 Commissioner Svinicki

 N. Mamish, OEDO

 J. Andersen, OEDO
UNITED STATES NUCLEAR REGULATORY COMMISSION

24 NRC Summary of Performance And Financial Information Fiscal Year 2009

Independent Auditor’s Report on the Condensed 

Financial Statements

INDEPENDENT AUDITOR’S REPORT ON THE CONDENSED

FINANCIAL STATEMENTS

Hubert T. Bell

Inspector General 

United States Nuclear Regulatory Commission

The Honorable Gregory B. Jaczko

Chairman 

United States Nuclear Regulatory Commission

We have audited the balance sheets of the United States Nuclear Regulatory Commission (NRC) as 

of September 30, 2009 and 2008, and the related statements of net cost, changes in net position, 

and budgetary resources (Principal Statements) for the fi scal years then ended. Our audit was 

performed in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to fi nancial audits contained in Government Auditing Standards,

issued by the Comptroller General of the United States; and OMB Bulletin No. 07-04, Audit 

Requirements for Federal Financial Statements, as amended. In our report dated November 6, 2009, 

we expressed an unqualifi ed opinion on those Principal Statements. 

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

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

which it has been derived.

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

to above includes an opinion on the effectiveness of internal control over fi nancial reporting and a 

report on compliance with laws and regulations for the fi scal years ended September 30, 2009 and 

2008. Those reports are integral parts of a fi nancial statement audit performed in accordance with 

Government Auditing Standards and should be considered in assessing the results of our audit. 

Arlington, Virginia

November 6, 2009 
www.nrc.gov Protecting People and the Environment 25

BIBLIOGRAPHIC DATA SHEET

(See instructions on the reverse)

NRC FORM 335

(9-2004)

NRCMD 3.7

U.S. NUCLEAR REGULATORY COMMISSION 1. REPORT NUMBER

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

 and Addendum Numbers, if any.)

NUREG-1542, Vol. 15, Supp. 1

3. DATE REPORT PUBLISHED

MONTH

February

YEAR

2010

4. FIN OR GRANT NUMBER

n/a

2. TITLE AND SUBTITLE

NRC Summary of Performance and Financial Information 

Fiscal Year 2009

5. AUTHOR(S)

Basia Sall, et. al

6. TYPE OF REPORT

Annual

7. PERIOD COVERED (Inclusive Dates)

FY 2009

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

Resource Management and Support Staff

9. SPONSORING ORGANIZATION - NAME AND ADDRESS (If NRC, type "Same as above"; if contractor, provide NRC Division, Office or Region, U.S. Nuclear Regulatory Commission, 

provide name and mailing address.)

and mailing address.)

10. SUPPLEMENTARY NOTES

11. ABSTRACT (200 words or less)

NRC Summary of Performance and Financial Information Fiscal Year 2009 provides performance results and audited financial

statements that enable Congress, the President, and the public to assess the performance of the agency in achieving its mission

and stewardship of its resources.

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

Performance and Accountability Report

FY 2009

PAR

14. SECURITY CLASSIFICATION

13. AVAILABILITY STATEMENT

unlimited

(This Page)

unclassified

(This Report)

unclassified

15. NUMBER OF PAGES

16. PRICE

NRC FORM 335 (9-2004) PRINTED ON RECYCLED PAPER

Office of the Chief Financial Officer

U.S. Nuclear Regulatory Commission

Washington, DC 20555-0001

Same as 8, above
UNITED STATES NUCLEAR REGULATORY COMMISSION

26 NRC Summary of Performance And Financial Information Fiscal Year 2009

AVAILABILITY OF REFERENCE MATERIALS

IN NRC PUBLICATIONS

NRC Reference Material

As of November 1999, you may electronically access

NUREG-series publications and other NRC records at

NRC’s Public Electronic Reading Room at

http://www.nrc.gov/reading-rm.html.

Publicly released records include, to name a few,

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NRC publications in the NUREG series, NRC

regulations, and Title 10, Energy, in the Code of

Federal Regulations may also be purchased from one

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 Washington, DC 20402–0001

 Internet: bookstore.gpo.gov

 Telephone: 202-512-1800

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2. The National Technical Information Service

 Springfield, VA 22161–0002

 www.ntis.gov 

 1–800–553–6847 or, locally, 703–605–6000

A single copy of each NRC draft report for comment is

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Address: Office of Administration,

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E-mail: DISTRIBUTION@nrc.gov 

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Some publications in the NUREG series that are 

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Non-NRC Reference Material

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Copies of industry codes and standards used in a

substantive manner in the NRC regulatory process are

maintained at—

The NRC Technical Library 

Two White Flint North

11545 Rockville Pike

Rockville, MD 20852–2738

These standards are available in the library for

reference use by the public. Codes and standards are

usually copyrighted and may be purchased from the

originating organization or, if they are American

National Standards, from—

American National Standards Institute

11 West 42nd Street

New York, NY 10036–8002

www.ansi.org 

212–642–4900

Legally binding regulatory requirements are stated

only in laws; NRC regulations; licenses, including

technical specifications; or orders, not in 

NUREG-series publications. The views expressed

in contractor-prepared publications in this series are

not necessarily those of the NRC.

The NUREG series comprises (1) technical and

administrative reports and books prepared by the

staff (NUREG–XXXX) or agency contractors

(NUREG/CR–XXXX), (2) proceedings of

conferences (NUREG/CP–XXXX), (3) reports

resulting from international agreements

(NUREG/IA–XXXX), (4) brochures

(NUREG/BR–XXXX), and (5) compilations of legal

decisions and orders of the Commission and Atomic

and Safety Licensing Boards and of Directors’

decisions under Section 2.206 of NRC’s regulations

(NUREG–0750).
www.nrc.gov Protecting People and the Environment 27

CD ENVELOPE 

&

CD HERE
U. S. Nuclear Regulatory Commission

Washington, DC 20555-0001

www.nrc.gov

NUREG-1542, Vol. 15, Supp. 1

February 2010