OIG Audit Report--OIG 98A-09-March 1, 1999

INDEPENDENT AUDITORS REPORT AND PRINCIPAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1998OIG/98A-09 March 1, 1999March 1, 1999MEMORANDUM TO: Chairman JacksonFROM: Hubert T. BellInspector GeneralSUBJECT: RESULTS OF THE AUDIT OF U.S. NUCLEARREGULATORY COMMISSION'S FISCAL YEAR 1998FINANCIAL STATEMENTSAttached is the independent auditors’ report on the U.S. Nuclear Regulatory Commission's(NRC) Fiscal Year 1998 financial statements. The Chief Financial Officers Act requiresthe Office of the Inspector General (OIG) to annually audit NRC’s Principal FinancialStatements. The report contains (1) the principal statements and the auditors’ opinion onthose statements, (2) the auditors’ opinion on management’s assertion about theeffectiveness of internal controls, and (3) a report on NRC’s compliance with laws andregulations. Written comments were obtained from the Chief Financial Officer (CFO) andare included as an appendix to the independent auditors’ report.Audit Results The independent auditors issued an unqualified opinion on the Balance Sheet, theStatements of Changes in Net Position, Net Cost, Budgetary Resources, and Financing.In the opinion on management’s assertion about the effectiveness of internal controls, theauditors concluded that management’s assertion is not fairly stated. The auditors reachedthis conclusion because management did not identify the lack of managerial cost1accounting as a material weakness.The auditors identified ...