National Security Technologies, LLC (NSTec), the management and operating contractor of the
Nevada Test Site (Test Site), assumed its management responsibilities on July 1,2006, under
Department of Energy (Department) contract DE-AC52-06NA25946. We performed an audit of
costs claimed under the contract for Fiscal Year (FY) 2007 (October 1,2006 to September 30,
2007). For FY 2007, NSTec's Statement of Costs Incurred and Claimed (SCIC) reported total
costs claimed of $358,876,930. The audit was performed from April 2008 to January 2009 at the
NSTec offices in North Las Vegas, Nevada and was limited to costs claimed for FY 2007, which
will determine the basis for signing the SCIC