Results of the Audit of the United States Nuclear Regulatory Commission's Financial Statements for Fiscal Year 2021
NRC management should enhance their controls processes over the compilation and
preparation of the Agency’s quarter-end and year-end financial statements to prevent
or timely detect errors to their financial statements and the related note disclosures.
Thorough and robust review of the financial statements and related note disclosures
should be completed considering the latest requirements of OMB A-136.
a. NRC management should update the instructions for the Accounts Payable Accrual Estimation Reconciliation to more clearly indicate that the validated amounts should be used rather than the previously estimated accrual amounts.
b. NRC management should review the accounts payable reconciliation in sufficient detail to detect errors in the application of the estimation methodology.
a. NRC management should update the instructions for the Computation of Allowances for Losses portion of the Unbilled Revenue Accrual and Reconciliation Checklist to include more detailed descriptions of the parameters needed when generating reports used in the calculation process.
b. NRC management should conduct its review of the calculation of Accounts Receivable – Non-Federal – Allowance for Uncollectable Accounts in sufficient detail to detect errors in the calculation.
c. NRC management should implement stronger controls over the Unbilled Accounts Receivable calculation process and related reviews.
NRC management should develop the ability to generate a complete and accurate
listing of ULOs in a format which allows for appropriate oversight and review. The
report should contain all ULOs at the individual obligation level and be reconciled to
the GL with any reconciling items supported by appropriate documentation.
a. NRC management should implement controls to prevent postings in FAIMIS resulting in a negative obligation.
b. NRC management should increase management review and scrutiny over correcting entries before entries are posted.
c. NRC management should review the financial statements in sufficient detail to detect similar errors in future periods.