OIG Audit Report--OIG 99A-11-March 3, 1999

REVIEW OF NRC'S IMPLEMENTATION OF THE FEDERAL MANAGERS' FINANCIAL INTEGRITY ACTFOR FISCAL YEAR 1998OIG/99A-11 March 3, 1999 March 3, 1999MEMORANDUM TO: Chairman JacksonFROM: Hubert T. Bell Inspector GeneralSUBJECT: REVIEW OF NRC'S IMPLEMENTATION OF THE FEDERAL MANAGERS' FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 1998The Federal Managers' Financial Integrity Act (FMFIA) requires Federal managers to establish acontinuous process for evaluating, improving, and reporting on the internal control and accountingsystems for which they are responsible. The FMFIA requires that each year, the head of eachexecutive agency subject to the Act shall submit a report to the President and Congress on thestatus of management controls and financial systems that protect the integrity of agency programsand administrative activities. As part of an Office of Management and Budget (OMB) sponsoredpilot program to streamline financial reporting, the Nuclear Regulatory Commission (NRC) issuesits FMFIA report as part of its annual "Accountability Report." OMB Circular A-123, Revised, "Management Accountability and Control," is the implementingguidance for FMFIA. The term "internal controls," as envisioned by the FMFIA, is synonymous with"management controls" and encompasses program and administrative areas, as well as theaccounting and financial management areas. NRC redesigned and streamlined its management control program in accordance with the NationalPerformance ...