ML20005F097
| ML20005F097 | |
| Person / Time | |
|---|---|
| Issue date: | 12/22/1989 |
| From: | Carr K NRC COMMISSION (OCM) |
| To: | Foley T, Quayle D HOUSE OF REP., SPEAKER OF THE HOUSE, PRESIDENT OF U.S. & EXECUTIVE OFFICES, SENATE, PRESIDENT OF THE SENATE |
| References | |
| NUDOCS 9001120286 | |
| Download: ML20005F097 (12) | |
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UNITED STATES i
NUCLEAR REGULATORY COMMISSION g
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December 22, 1989 i
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The President i
t The White House Washington, D.C. 20500
Dear Mr. President:
The Nuclear Regulatory Commission (NRC) evaluated its system of internal accounting and administrative control in effect during _
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FY 1989 as re Act of 1982 (quired by the Feceral Managers' Financial Integrity
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FMFIA) and OMB Circular A-123. " Internal Control Systems." The evaluation was conducted in accordance with j
" Guidelines for the Evaluation _and Improvement of and Reporting on 3
Internal Control Systems in the Federal Government" issued by the Director of the Office of Mana with the Comptroller General. gement and Budget, in consultation The results indicate that NRC's internal control and financial management systems, taken as a whole, provide reasonable assurance that the objectives of the FMFIA have been achieved.
In 1989, program staff performed 16 detailed internal control reviews, with all the corrective actions tracked centrally.
Special emphasis was placed on technical program areas, including region-based inspections, review of reactor applications, safe-guards licensing and inspection, regulation of the transport of nuclear materials, severe accident policy implementation, and high-level waste research.
Detailed reviews also were conducted in administrative and support areas such as information resources t
l management, the small and disadvantaged business program, and the headquarters consolidation program.
Also, we are evaluating and i
enhancing agency-wide quality assurance measures in major program l
mission areas which will assist in strengthening internal controls throughout NRC.
In 1988, a more sophisticated trackin centrally track material weaknesses, g system was implemented to nonconformances, and correc-tive actions.
The tracking system was significantly modified in 1989 to provide improved planning, control and monitoring of interul control reviews and corrective actions, including alter-native reviews such as Inspector General and General Accounting Office audits.
9001120286 891222 l
PDR COMMS NRCC CORRESPONDENCE PNV
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L Our report contains two enclosures:
a statistical summary of l
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performance under the FMFIA (Enclosure A) and a description of the L
FMFIA review process and our internal control tracking system (Enclosure B).
Dur progress in strengthening internal controls and an agency-level commitment to this process will continue in j
the future.
r Sincerely, i
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i i 14 Menneth M. Carr L
Enclosures:
H A.
Statistical summary B.
Review Process cc w/ enclosures:
The Honorable Richard G. Darman i
Director, Office of Management i
and Budget i
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UNITE") STATES NUCLEAR REGULATORY COMMISSION WASHINGTON D. C. 20065
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t December 22, 1989 CHAIRMAN e
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I t-The Honorable J. Danforth Quayle
-President of the Senate Washington, D. C.
20510
Dear Mr. President:
f The Nuclear Regulatory Commission (NRC) evaluated its system of Internal accounting and administrative control in effect during
'FY 1989 as required by the Federal Managers' Financial Integrity Act of 1982 (FMFI A) and OMB Circular A-123, " Internal Control Systems." The evaluation was conducted in accordance with
" Guidelines for the Evaluation and Improvement of and Reporting on.
Internal Control Systems in the Federal Government" issued by the Director of the Office of Mana with the Comptroller General. gement and Budget, in consultation The results indicate that NRC's internal control and financial management systems,'taken as a whole. provide reasonable assurance that the objectives of the FMFIA have been achieved.
In 1989, program staff performed 16 detailed internal control reviews, with all the corrective actions tracked centrally.
Special emphasis was placed on technical program areas, including region-based inspections, review of reactor applications, safe--
guards licensing and inspection, regulation of the transport of nuclear materials, severe accident policy implementation, and thigh-level waste research.
Detaileo reviews also were conducted in administrative and support. areas such as information resources management, the small and disadvanta heacquarters consolidation program. ged business program, and the Also, we are evaluating and enhancing agency-wide quality assurance measures in major program u
mission areas which will assist in strengthening internal controls i
l-throughout NRC.
F L
i In 1988, a more sophisticated tracking system was implemented to centrally track material weaknesses, nonconformances, and correc-tive actions.
The tracking system was significantly modified in 1989 to provide improved planning, control and monitoring of internal control reviews and corrective actions, including alter-native reviews such as Inspector General and General Accounting Office audits.
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Our report contains two enclosures:
a statistical summary of performance under the FMFIA (Enclosure A) and a description of the FMFIA review process and our internal control tracking system (Enclosure B).
Our progress in strengthening internal controls and an agency-level commitment to this process will continue in the future.
Sincerely, p
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Kenneth M. Carr
Enclosures:
A.
Statistical summary B.
Review Process cc w/ enclosures:
The Honorable Richard G. Darman Director, Office of Management and Budget l
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NUCLEAR REGULATORY COMMISSION wAsmoTow,o.c. oses k
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December 22, 1989 CHAIRMAN The Honorable Thomas S. Foley Speaker of the United States House of Representatives Washington, D. C.
20515
Dear Mr. Speaker:
The Nuclear Regulatory Commission (NRC) evaluated its system of internal accounting and administrative control in effect during FY 1989 as required by the Federal Managers' Financial Integrity
'Act of 1982 (FMFIA) and OMB Circular A-123. " Internal Control Systems." The evaluation was conducted in accordance with
" Guidelines for the Evaluation and Improvement of and Reporting on Internal Control Systems in the Federal Government" issued by the Director of the Office of Management and Budget, in consultation.
with the Comptroller General.
The results indicate that NRC's internal control and financial management systems, taken as a whole, provide reasonable assurance that the objectives of the FMFIA have been achieved.
In 1989, program staff performed 16 detailed internal control reviews, with all the corrective actions tracked centrally.
Special emphasis was placed on technical program areas, including region-based inspections, review of reactor applications, safe-guards licensing and inspection, regulation of the transport of nuclear materials, severe accident policy implementation, and high-level waste research.
Detailed reviews also were conducted in administrative and support areas such as information resources
. management, the small and disadvanta headquarters consolidation program. ged business program, and the Also, we are evaluating and enhancing agency-wide quality assurance measures in major program mission areas which will assist in strengthening internal controls throughout NRC.
In 1988, a more sophisticated trackin centrally track material weaknesses, g system was implemented to nonconformances, and correc-tive actions.
The tracking system was significantly modified in 1989 to provide improved planning, control and monitoring of internal control reviews and corrective actions, including alter-native reviews such as inspector General and General Accounting Office audits, l
1
a l
i l
J i-Our report contains two enclosures:
a statistical summary of 1
performance under the FMFIA (Enclosure A) and a description of the FMFIA review process and our internal control tracking system (Enclosure B).
Our progress in strengthening internal controls and an agency-level commitment to this process will continue in the future.
Sincerely, i
it.
a_
Kenneth M. Carr 1
Enclosures:
O A.
Statistical-summary B.
Review Process cc w/ enclosures:
The Honorable Richard G. Darman 1
Director. Office of Management and Budget l
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I-Enclosure A
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STATISTICAL
SUMMARY
OF PERFORMANCE Section 2.
Internal Control Systems Overall compliance X Yes
_ No Year achieved:
NRC has been in compliance since the enactment of FMFIA.
Number of Material Weaknesses Period Reported Reported Corrected Pending Prior years 0
0 0
e 1987 report 1
0 0
1988 report 0
1 0
1989 report 0
0 0
Totals:
T T
T Pending Material Weaknesses None i
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2 i
t Section 4.
Financial Management Systems Overall compliance X Yes No Year achieved: NRC has been in compliance since the enactment of FNFIA.
Number of Section 4 Systems in Operation
'j Type of System 1988 1989 Core Financial System 2
1*
Subsidiary systems:
Budget planning / formulation 1
1 Payroll / personnel 1
1 Purchasing / grants Credit Management **
1 1
Cash Management Property / inventory 1
1 Travel /small purchases Other:
Budget execution 1
0*
l Manpower accounting 1
1 l
Technical assistance costs and grants 1
1 License fee management system **
1 1
Totals:
T 8
1 In 1989, the functions of one core financial management system and the budget execution system have been incorporated into the agency's single core financial management system.
In 1990, the credit management system will be incorporated in the license l
fee management system (see chart on p. 4).
There is no intention to incorporate payroll into the core financial system.
The remaining systems are small and play a relatively insignificant role in providing data to our fully integrated financial managment system (one of the few accounting systems that has fully implemented the Federal Government standard general ledger).
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Number of Material Non-confomances Period Reported Reported Corrected Pendino Prior years 0
0 0
1987 Report 0
0 0
1988 Report 0
0 0
1989 Report 0
0 0
Total T
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r Pendino Non-confomances None l
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Fin a n cial Systems Co nsolida tion and Compliance i
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Enclosure B PEVIEW PROCESS Description of Agency Section 2 Review Process The internal control process is described in NRC Manual Chapter 0801, " Internal Controls " which sets forth the manner in which NRC is to implement the require-ments of the Federal Managers' Financial Integrity Act of 1982" (FMFIA).
An Internal Control Comittee (ICC), composed of high-level managers from the major components of the agency, sets the policy for evaluating internal controls and reviews major actions. The Chaiman of the ICC, who is also NRC's Deputy Con-troller, aided by a senior staff member, organizes and monitors the internal control program and prepares the report to the President and the Congress.
f NRC structures its internal control program around a management control plan (MCP). The MCP is based on the programs and program elements in NRC's agency-i wide Five-Year Plan.
Internal control reviews are scheduled based on risk assessments of these programs and program elements, with the most vulnerable areas being reviewed first. The 16 internal control reviews performed in 1989 cover a cross-section of NRC's program mission areas.
In 1989, detailed internal control reviews were performed in all program mission areas except Nuclear Waste Regulation.
Detailed reviews were conducted in that mission area in 1988.
Programs selected for review are grouped according to like characteristics, and review teams are fomed from these groups.
Each program organization is repre-sented on the review team. The advantage of this approach is to bring reviewers with similar professional backgrounds together to work on familiar subjects.
Training on the internal control review process is provided to the team members and their program managers before initiating the reviews.
Reviews are conducted on a staggered schedule to pemit a level workload through-out the year, making it possible for the team members to work on several reviews.
The staggered schedule also permits any problems that might arise with the reviews to be resolved with little adverse effect on the schedule for preparing the year-end report.
1989 Statistical Data for Section 2 Review Assessable Units 89 L
Vulnerability Assessments Planned 0*
t Conducted 0
i Internal Control Reviews i
Planned 16 i
Conducted 16 Alternative Reviews Planned 0
Conducted 0
Conducted by Inspector General /
Government Accounting Office 13
- Vulnerability assessments of the agency's 89 programs were conducted in 1987.
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l Description of the Section 4 Review Process NRC Manual Chapter 1103 " Financial Management Systems " addresses the agency's requirement under Section 4 of the FMFIA and OMB Circular A-127 to submit an annual report to the President and Congress regarding the agency's accounting i
system. The ICC and the Chairman ICC have the same responsibilities with respect to the Section 4 review process, as they have in the Section 2 review process described earlier.
l Each year program managers are asked to perfom reviews of their financial systems.
In 1989 limited reviews were conducted in accordance with OMB's i
" Guidelines for Evaluating Financial Management / Accounting Systems," May 1985.
1989 Statistical Data for Section 4 Review Process Financial Management Systems 8
Annual Reviews Perfomed 6*
Detailed Cyclical Reviews Perfomed 0**
Principal Findings: No significant deficiencies were identified.
- The Inspector General is currently conducting an audit which will encompass the remaining systems.
Detailed cyclical reviews of all systems not reviewed by the Inspector General are planned for 1990.
r Internal Control Trackina System In 1988 a more sophisticated tracking system was implemented to centrally I
l track material weaknesses, nonconfomances, and corrective actions. The tracking system was substantially modified in 1989 to (1) provide improved controls over corrective actions and (2) include additional infomation such as internal control reviews completed and in progress, including alternative reviews by the Inspector General, General Accounting Office, and others.
Program managers are asked to provide periodic status reports on corrective I
actions that have not been implemented, including the estimated dates for completion.
Corrective actions are tracked until the program manager advises the Chaiman, ICC, that the items have been addressed and describes the actions that were taken.
Status reports are reviewed by the program manager's office director before they are submitted to the ICC Chairman.
Inspector General audit followup reports are reviewed and monitored by the ICC staff to identify any areas where the Inspector General believes the corrective action taken is not responsive to the internal control deficiency.
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