NCI, INC. (NASDAQ:NCIT) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Item4.02. Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.

(a) On January22, 2017, the board of directors (the
Board) of NCI, Inc. (the
Company) concluded that, as a result of
the preliminary information obtained to date in connection with
an ongoing internal investigation, (i)the unaudited interim
financial statements included in the Companys Quarterly Report on
Form 10-Q for the three-months ending March31, 2016, filed on
April29, 2016; (ii)the unaudited interim financial statements
included in the Companys Quarterly Report on Form 10-Q for the
three- and six-months ending June30, 2016, filed on August1,
2016; and (iii)the unaudited interim financial statements
included in the Companys Quarterly Report on Form 10-Q for the
three- and nine-months ending September30, 2016, filed on
November7, 2016, should no longer be relied upon. On the same
date, the Board also determined that investors, analysts and
other persons should not rely upon managements report on internal
controls over financial reporting or the Companys independent
registered public accounting firms report on the effectiveness of
the Companys internal controls over financial reporting filed
with the Companys Annual Report on Form 10-K for the fiscal year
ended December31, 2015.

The Boards determination was a result of the Companys preliminary
findings in an ongoing internal investigation, after the Company
discovered that its controller embezzled approximately $18
million from the Company over the last six years, with
approximately $5 million taken during 2016. The Companys
preliminary findings indicate that these funds were reflected as
expenses in the Companys financial statements and that those
expenses were treated as allowable indirect costs on the Companys
government contracts but should have been classified as
unallowable costs. The Company has concluded that the unaudited
interim financial statements for the nine-month period ending
September30, 2016 contain material errors related to the theft
and the Company will provide amended financial results for that
nine-month period as part of the completion of its financial
reporting process for the fiscal year 2016.

The Audit Committee and the Companys executive management have
discussed the matters described herein with the Companys
independent registered public accounting firm.

A copy of the press release announcing these events is attached
hereto as Exhibit99.1 and incorporated herein by reference.

Item9.01. Financial Statements and Exhibits.

About NCI, INC. (NASDAQ:NCIT)

NCI, Inc. is a provider of enterprise services and solutions to defense, intelligence, healthcare and civilian government agencies. The Company provides information technology (IT), and professional services and solutions by leveraging its core service offerings, which include cloud computing and IT infrastructure optimization; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; modeling, simulation, and training, and agile development and integration. The Company helps its clients to navigate the range of cloud, Everything-as-a-Service (EaaS), capacity services and virtualization options available. The Company provides its customers the full lifecycle of cybersecurity services, including policy and planning, compliance, identity and access management, training, education, awareness and enterprise security operations.

NCI, INC. (NASDAQ:NCIT) Recent Trading Information

NCI, INC. (NASDAQ:NCIT) closed its last trading session down -0.10 at 12.65 with 24,068 shares trading hands.