Ionization of the Ni 3s core level in NiO has been studied using ab initio wavefunctions for an NiO6 cluster model. Three important final state effects are studied: (I ) ligand to Ni 3d charge transfer; (2) exchange coupling of the ionized core level within the open 3d shell; and (3) atomic correlation effects among the metal 3s, 3p, and 3d shells. Analysis of the cluster wave-functions shows that these mechanisms are strongly coupled and must be treated on an equal footing. The ligand to metal charge transfer is often fractional, i.e. intermediate between 0 and 1.