ML20085A043
| ML20085A043 | |
| Person / Time | |
|---|---|
| Issue date: | 06/14/1995 |
| From: | NRC OFFICE OF THE INSPECTOR GENERAL (OIG) |
| To: | |
| References | |
| NUREG-BR-0146, NUREG-BR-0146-R01, NUREG-BR-146, NUREG-BR-146-R1, NUDOCS 9506140038 | |
| Download: ML20085A043 (25) | |
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bREWORD:
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A This pamphlet provides information concerning the L
organization, policies and procedures of the U.S. Nuclear Regulatory Commission's (NRC's) Office of the Inspector
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General (OlG).
The subject areas in this publication mirror the statutory responsibilities and authority of the NRC's OIG under the i
Inspector General Act of1978, as amended,5 U.S.C.
app. 3 5 2 et. seq. The Act authorizes the OlG to establish positions: conduct investigations, audits, and regulatory reviews: prevent fraud, waste, and abuse; and requires a Semiannu;i report to Congress on OlG activites.
This pamphlet also describes the structure and responsibilities of the investigative, audit, support, and legal staffs. It discusses policies and procedures for initiating and processing audits, investigations, and regulatory commentaries. It defines the purpose and substance of the products from the OlG's various components along with anticipated agency responses to those products.
In addition to describing the OlG, I have used this opportunity to discuss the NRC employee's role in furthering the mission of the OIG within the agency. To i
further that goal, details of your individual rights and j
responsibilities as an agency employee are included.
t The OIG is committed to using audits, investigations, and l
other reviews to enhance mission integrity and ni
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recommending improved systenas to prevent fraud, waste, i
^2 and abuse at the NRC. I trust this pamphlet will enhance x
your understanding of this commitment so that, within our Arge differing roles. we can effect a spirit of cooperation based on our shared objective of regulatory excellence.
1 OIG h!ISSION AND ORGANIZATION 1
1.1 hiission........................
I 1.2 Organization....................
2 David C. Williams 2
OIG INVESTIGATIONS.............
'5 Inspector General 2.1 What Is an OIG Investigation?.....
5 2 2 What Does the OIG Investigate?...
5 23 Ilow Is an OIG Investigation Initiated?......................
6 2.4 The Investigative Process.........
8 2.5 OIG Access to Documents........
9 2.6 OIG Access to Individuals.........
9 2.7 Employee Rights and Warnings....
10 2.8 The Investigative Products........
12 2.8.1 Investigative Document Distribution...............
13 2.9 What Is the Role of the NRC Employee in OlG Investigations?...
14 3
OIG AU DITS.......................
17 3.1 What Is an OIG Audit?...........
17 3.2 What Types of Audits Are There?..
17 33 What Does the OIG Audit?.......
18 3.4 The Audit Process...............
19 3.5 Audit Products..................
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3.5.1 Audit Report Distribution....
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REGULATORY COhth1ENTARY.....
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4.1 What Is a Regulatory Commentary?
23 1.1 M.ission 4.2 Ilow Does the OIG Prepare a l
Regulatory Commentary?.........
23 Statutory Basis 4.2.1 g
,ti in 24 The Nuclear Regulatory Commission's (NRC's) Office of Inspector General (OIG) was established as a 5
TiiE SEh11 ANNUAL REPORT TO statu.ory entity on April 15,1989, in accordance with.
CONG R ESS........................
25 the 1988 amendments to the Inspector General Act of 5.1 What Is the Semiannual Report?...
25 1978. Under the statute, NRC's Inspector General 5.2 Semiannual Report Distribution....
26 rCP r S n S Un r Im E nc SUPeMsion of tlm NRC Chairman, but operates with independent AP P E N DIX............................
27 Personnel, contracting and budget authority.
Responsibilities The statutory language of the Inspector General Act states that the purpose ofindependent offices of Inspectors General is to provide independent and objective units to conduct and supervise audits and
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investigations relating to agency programs and operations. Under the statute, the OIG is also directed to provide leadership and coordination and to l
recommend policies to prevent and detect fraud and l
abuse in agency programs and operations.
I To accomplish these objectives, the OIG establishes policy for audits and investigations relating to all NRC programs and operations and conducts, supervises, and -
4 coordinates these audits and investigations. Further,L the OIG reviews existing and proposed regulations to 4
evaluate their impact on economy and efficiency in the i
n l
Ilotline Number 1-800-233-3497 1
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The IG at the NRC The IG at the NRC agency and on the prevention of fraud and abuse, and reviews of existing and proposed legislation and recommends changes as appropriate.
regulations for their potential to prevent and detect The inspector General (IG) informs the Chairman and establishing and implementing policies to conduct, the Congress of fraud or any serious problems with the administration of NRC programs and operations supenise, and coordinate activities that promote discovered during these audits, investigations, and economy and efficiency and that prevent or detect reviews. The OlG iccommends corrective action and fraud, waste, and abuse; and reports on progress made in tlye implementation of designating an Assistant Inspector General for actions. The OlG refers crimmal matters to th investigations and an Assistant inspector General Department of Justice (DOJ) for prosecution and.
for Audits.
coordinates referrals to managers for admmistrative action by the agency.
The Assistant Inspector General for Investigations-Supenises the performance of investigative 1.2 Organization activities and inquiries relating to NRC programs The Inspector General nd per tions; and advises and assists the IG on all investigations and The statute states that the head of each OIG shall be inquiries conducted by the OlG.
an IG appointed by the President with the advice and consent of the Senate. IG's are selected on the basis The Assistant inspector General for Audits-of their backgrounds in investigations or auditing, or Supenises the performance of auditing activities from related backgrounds, such as law or pubhe relating to NRC programs and operations; and administration.
advises and assists the IG on all audits and To ensure the independence of the office, the IG may evaluations conducted by the OlG.
be removed only by the President, who must communicate the reasons for a removal to the The Director for Resource Management and Congress. The IG is selected without regard for Operational Support Staff-political affiliation.
Prepares the OlG Semiannual Report for Congress:
and By statute, the IG oversees and is responsible for-provides all administrative and operational support audits and investigations; for OlG programs, including responsibility for 2
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preparing and administering the budget, and 3fOlG m-operating an independent personnel program.
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The Legal Counsel-provides independent legal counsel and 2.1 Mat Is an OIG Investigadon?
representation for the IG and OIG; An OIG investigation is a planned, systematic search for relevant, objective evidence derived from -
advises and assists the IG on all legal issues and individuals, documents, tangible objects, and data.
serves as legal advisor to the OIG staff; and In addition to documentation of evidence discovered.
coordinates and drafts regulatory commentary.
an investigation typically includes identifying the basis for the original complaint, the issues involved, and citation of relevant statutes.
i 2.2 What Does the OlG Investigate?
I The jurisdiction of the OIG cxtends to all matters relating to fraud, waste, and abuse by NRC employees, contractors, and other recipients of funds under or relating to NRC programs and operations. OlG investigations focus on violations of law or misconduct by NRC employees and contractors as well as allegations of irregularities or abuse in NRC programs and operations.
These investigations may involve one or more of the following siolations of laws or regulations:
theft, conversion, misappropriation, embezzlement, or misuse of Government funds or property; i
false claims or statements;
- *I forgery, falsification or unauthorized destruction of -
Government records; 4
flotline Number 1-800-233-3497 flotline Numbec l-800-233-3497 5
Ihe IG at the NRC The IG at the NRC conspiracy to defraud the United States; anticipated results or the impact of a successful investigation.
bribery, extortion, or blackmail, or attempted bribery or blackmail of, or by, an NRC employee;
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The OlG considers the following factors in evaluating a complaint for investigation; conflict of interest knowingly engaged in by an indications and plausibility of allegations that a NRC employee:
siolation of a statute or regulation under OlG violation of employee standards of conduct; and jurisdiction has been committed:
the presence of indications that the matter may mismanagement, fraud, waste of Government funds, or abuse of authority relating to NRC's significantly affect public health and safety; programs and operations.
the effect of the alleged illegal or improper actisity 2.3 Ilow Is an OIG Investigation initiated?
whether the matter is of interest to senior NRC The first step in the course of an investigation is managers, one or more Congressional committees, receipt of a complamt of wrongdoing or an allegation.
the nuclear industry, or a public interest group:
Allegations are received primarily from NRC the level of the position of individuals against employees and licensees. Ilowever, Congress, other agencies, citizens, and public interest groups also refer whom the allegations are made (wrongdoing by matters to the OlG for investigation.
high-ranking agency officials are more damaging):
and A major conduit for complaints is the OlG llotline.
I the deterrent effect knowledge of the investigation Allegations of suspected wrongdoing are also received may have on others who may consider committing by NRC managers and the OIG audit program; similar illegal or improper acts.
referrals by NRC managers and the audit program are other sources for ti e receipt of allegations.
If an OlG investigation is not initiated in response to a mP aint that requires additional action, other options l
C Once r. allenatUn is received, an analysis is conducted to determine whether further action is warranted and, j
available include referral of the complaint to an NRC operatmg dmsion or referral to another law if so, what type of action is needed.
enforcement agency. In addition, allegations not Guidelines used in this analysis are intended to ensure susceptible to immediate action may be retained for an effective evaluation of available resources and the use as the basis for broad programmatic inquiries or commitment of those resources weighed against audits.
4 Hotline Number: 1-800-233-3497 7
6 Hotline Number: 1-800-233-3497
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2.4 The Investigative Process When circumstances meet the following guidelines, the 3
OIG may send a " clearance letter" to the manager and 3
Decause the goal of an investigation is to determine a copy to the employec: No wrongdoing is found the truth or the falsity of matters alleged, the against the particular employce; the OIG closes the procedures employed in the investigative process focus case without issuing a report; and the employee or on obtaining relevant facts so as to address all aspects manager was aware of the allegation being of an allegation.
investigated.
An investigative plan outlines the pertinent facts of an i
2.5 OIG Access to Documents allegation and how to best obtam evidence that will y
either prove or disprove matters essential to the j
Section 6 of the Inspector General Act provides offense alleged.
i specific authority for the OIG to obtain the following documents from the agency: all records, reports, Investigative activities include examination of audits, reviews, recommendations; and other materials documents, for example, files, contracts, vouchers, that relate to NRC programs and operations.
reports, and memoranda. Investigators also obtain 5f information by interviewing witnesses, technical This section of the statute also authorizes the OlO to experts, and the subjects of investigations.
issue subpoenas to obtain documents from outside the Federal Government. Access to financial records is Information obtained is documented in records of authorized under the provisions of the Right to interviews, by affidavits sworn under oath and in i
Financial Privacy Act.
depositions, that is, with questions and answers given i
under oath, and transcribed by a court reporter.
l 2.6 OIG Access to Individuals i
After all relevant information is gathered, an i
Government employees, including NRC personnel, investigative report is prepared. When there is j
mainly participate in OIG investigations by providing evidence of criminal wrongdoing, the report is 1
information to investigators in interviews.
presented to the DOJ to consider for prosecution in Federal Court. If the evidence presented shows an The vast majority of employees voluntarily consent to administrative offense, the report will be sent to NRC interviews and fully cooperate by supplying information managers for action.
and documents within their control. Employees who do not may be ordered by a~ supervisor to appear for-Clearance Letters - If an investigation clears an an interview with an OlG investigator. Employees who disobey such an order are subject to disciplinary employee of wrongdoing, the employee's manager is responsible for informing the subject employee.
action. Of course, false statements made in the course 8
flotline Number: 1-800-233-3497 Ilotline Number 1-800-233-3497 9
The IG at the NRC The IG at the NRC k
of an investigation would be subject to both criminal usually by a declination to prosecute by the and administrative penalties.
DOJ, and that the employee is required to answer questions relating to the performance 2.7 Employee Rights and Warnings of their official duties or be subject to disciplinary action.
01G inteniews are conducted m. compliance with Constitutional rights. Before beginning an interview, 3.
Weingarten warnings resulted from case law OlG investigators identify themselves, present their that was later incorporated as statutory credentials and state the nature and purpose of the procedural requirements directed by the Civil mterview.
Service Reform Act of 1979. These mquimments establish that a bargaining unit When applicable, a statement of the individual's
- P IC*, who is the subject of an I
alternatives with regaid to remaining silent and investigation, is entitled to union obtaining legal counsel or union representation is mpresentadon Mng inteniews that may stated directly and personally at each inteniew. These result !n d,sciplinary action against them.
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statements of rights are referred to as " warnings.
The three primary types of warnings, Miranda,
{t is OIG policy to allow an interviewed employee, who -
is the subject of an investigation, to have an attorney Kalkines. and Weingarten, are identified by the major pmsent.
Court case on the issue encompassed in the warning statement:
Subject employees requesting legal or union representation are entitled to a reasonable amount of 1.
Miranda warnings are given when an time to arrange this representation. Legal or other individual is being interviewed concerning his representation is at the expense of the m, dividual or her own potentially criminal misconduct employee.
and is taken into custody or deprived of freedom in a significant way. This warning The role of the legal or union representative is to advises, under the Fifth and Sixth provide counsel or advice, not to answer questions on Amendments to the Constitution, that the behalf of the employee. Representatives are not individual is entitled to remain silent or permitted to question the OIG investigator or otherwise not incriminate him or herself and otherwise dominate or disrupt the inteniew or the to the assistance of an attorney.
investigation.
2.
Kalkines warnings advise that the possibility of criminal prosecution has been removed, 10 llotline Number: 1-800-233-3497 Ifortine Number: l-800-233-3497 Ii
The IG at the NHC The IG at the NRC 2.8 The Investigative Products systemic problems is needed. The agency is expected to report managedal acdons tahn in response to me -
Investigative Report problems identified to the OIG within 90 days.
The investigative report relates pertinent facts of a Event Inquiry case and describes available evidence to concisely address all relevant aspects of any allegation against j
The Event Inquiry is an investigative product individuals, including aspects of an allegation not documenting examination of events or agency actions substantiated. Investigative reports do not recommend that do not focus specifically on individual misconduct.
disciplinary action against individual employees.
These reports identify institutional weaknesses that led to or allowed a problem to occur. The agency is s
Investigative reports are given to officials and requested to advise the OIG of managerial initiatives t
managers who have a need to know m order t?
i taken to cure any institutional weaknesses identified in properly determine whether admmistrative action is these reports.
warranted. If an admmistrative action is deemed i
appropriate, managers consult with the Office of Management Implications Report (MIR)
Personnel and the Office of the General Counsel This product was developed at the request of senior before initiating discipline. The agency is expected to NRC officials to provide managers with a " Root i
advise the OlG within 90 days of receiving the investigative report as to what disciplinary or other Cause" analysis as to how a particular problem action has been taken in response to investigative developed. The objective of an MIR is to give report findings.
m n gers sufficient informatign to facilitate correction of the problem and to avoid similar issues m the I
Cover Letter future.
A cover letter is used with some investigative reports 2.8.1 Investigative Document Distribution as more than a mere transmittal vehicle. When the OlG observes that an issue identified in the Investigative Reports are sensitive documents and their transmitted report is a recurring or systemic problem, distribution is restricted by the Privacy Act and is -
or one reported in other OIG products, the cover subject to Freedom of Information Act exemptions.
Distribution is limited to those with a "nced to know" letter is used to identify the problem to managers in this broader context.
I T OIIIcial purposes. Unless the report mvolves a Commission level employee, a copy is not routinely Because OlG investigative reports do not contain sent to the Chairman's office. In instances of.
recommendations, a cover letter is also used if exceptional congressional or public interest, the OIG significant findings indicate that a specific response to may distribute a report to members of Congress.
I2 flotline Number 1-800-233-3497 flotline Number:1-800-233-3497 13 t
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The IG at the NRC TheIG at the NRC Event inquiries are generally released to the public allegations of wrongdoing they receive are promptly upon request.
l reported to the OlG.
Management Implications Reports are intended for the WIIAT TO REPORT-The information you provide to use of agency managers but are published for agency the OIG should be sufficient for an investigator to use without limitations on distribution.
evaluate or act on it. You should try to provide the following information if possible:
2.9 What Is the Role of the NRC Employee in OIG a brief, accurate statement of facts believed to provide i
Investigations?
evidence of wrongdoing; The success of the OIG mission to combat fraud, l
names, addresses, and office locations of pertinent waste, and abuse depends on the cooperation of all l
individuals and organizations; NRC employees.
dates when the suspected wrongdoing took place or is WIIY REPORT WRONGDOING?-Statistics i
expected to occur; demonstrate that the majority of allegations of wrongdoing reported to the OIG come from NRC l
how you became aware of the information; employees. There are two clear bases for this statistic.
I contracts. invoice numbers, or other related First, NRC employees are m, the best position t documents; and observe wrongdomg and have the techm, cal expertise to assess wrongful actions. Second, under federal law names, addresses, office locations, and telephone and executive order, all government employees are numbers of others (including licensees) who may have required to report violations oflaw and regulations.
information about the suspected wrongdoing.
1 IlOW TO REPORT WRONGDOING-You should i
Employacs should not engage in any independent report any indications of fraud, waste, abuse of inquiry or investigation and should not discuss the authori:y, mismanagement, or other wrongdoing matter with the persons suspected of wrongdoing.
directly to the OlG or through your supervisor. You Employees should provide the OIG with any new or may contact the OIG directly, by telephone at additional information pertinent to the allegation.
301-415-5930, by writing to the Inspector General, Mail Stop T5D28, U.S. Nuclear Regulatory IIOW YOU ARE PROTECTED-You may make an Commission Washington, D.C. 20555, or by using the allegation anonymously. The OlG phones do not have the caller ID feature. If you choose to identify OIG IIOTLINE: 1-800-233-3497. Agency managers and supenisors are responsible for ensuring that yourself, under the Inspector General Act, your name i
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14 Hotline Number: 1-800-233-3497 Hotline Numbec 1-800-233-3497 15 i
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will not be revealed unless the IG determines that the 7
i3X' DIG UDITS i W'~ W-D" disclosure is unavoidable. Reprisal and retaliation for
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regulations and no action may be taken against you for j
having complained or disclosed information to the OlG. Ilowever, individuals may be subject to 3.1 What Is an OIG Audit?
disciplinary or criminal action for knowingly making a An audit is an independent, systematic assessment of a false complaint or providing false information.
government organization, program, function, or actisity.
3.2 What Types of Audits are There?
FINANCIAL-These audits include financial statement audits, as required by the Chief Financial 4
Officers Act, and any other audits relating to NRC's financial operations. The first type audit prosides reasonable assurance about whether financial statements of an audited entity present fairly the financial position, results of operation, and cash flows in conformity with generally accepted accounting principles. The second type determines whether (1) fit.ancial information is presented in accordance with established or stated criteria,(2) the entity has adhered to specific financial compliance requirements, or (3) the entity's internal control structure over financial reporting or safeguarding assets is suitably designed and implemented to achieve objectives.
i At NRC, these include audits under the Chief Financial Officers Act as well as audits of internal controls and contracts.
PERFORMANCE-These include both economy and efficiency audits and program audits. Economy and 16 1lotline Number 1-600-233-3497 Ilotline Number 1-800-233-3497 I7
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Ihe IG at the NRC The IG et the NRC :
t efficiency audits determine (1) whether the entity is problem areas, as a result certain activities. are acquiring, protecting, and using its resources (such as examined with greater frequency than others.
personnel, property and space) economically and OlG auditors typically examine I
efficiently, (2) the causes of any inefficiencies or l
uneconomical practices, and (3) whether the entity has i
potential program vulnerabilities to fraud, waste,L complied with laws and regulation on matters of I.
and abuse; economy and efficiency. Program audits determine (1) management planning processes; the extent to which desired results or benefits established by the legislation or other authorizing body cost effectiveness of programs and functions; are bemg achieved, (2) the effectiveness of organization, programs, activities or functions, and (3) the ability of the agency to protect and safeguard L i
whether the entity has complied with significant laws its resources; and and regulations applicable to the program.
g These audits are conducted on selected NRC activities, including contracting.
administrative and program operations to evaluate the effectiveness and efficiency with which managerial 3.4 The Audit Process responsibilities are carried out. They focus on whether Annual Audit Plan management controls, practices, processes, and procedures are adequate and effective. Performance The annual audit plan is a formal document outlining audits also include reviews of selected programs and the audit workload and audit resources for the fiscal activities to evaluate their overall effectiveness in year. The plan reflects interests of NRC's senior achieving anticipated results.
managers, including the Commissioners, and interests i
of the nuclear industry, the Congress, and others. He 3.3 Mhat Does the OlG Audit?
audit plan covers long-range (2-3 years) as well as current-year plans. The long-range section discusses In addition to audits resulting from statutory l
major program areas of the agency that OIG plans to requirements; for example, the Federal Managers g
focus on. As these long-term strategies become more 1
Financial Integrity Act. 31 U.S.C. 9 3512, the defined, they evolve into individual audits included in I
Government Performance and Results Act of 1993, the section covering planned audits for the coming Public 12w 103-62, and the Chief Financial Officers year. The annual plan is not a static document, but is Act,31 U.S.C. f 5 501 - 506 and 901 - 903, OIG a dynamic plan that is periodically reevaluated to conducts systematic reviews throughout the
- ensure that OIG responds effectively to the needs of organization. These focus on agency priorities and the Congress, the Commission, and the public.
i 18 flotline Number: 1-800-233-3497 HotlineNumber 1-800-233-3497 19
')
ne IG at the NRC The IG at the NRC Issue Arca Monitors Audit Notification: A formal written notice is given to an office manager informing the manager of OIG's l.o enhance oversight and understanding of the NRC's intent to begin an audit.
operations. Issue Area Monitors (IAMs), have been i
designated to cover the agency's major cost centers.
Entrance Conference: Through this discussion, the IAM assignment areas are: the Reactor Program, OlG advises agency officials of the purpose, objectives, 1
Nuclear Materials Program. Nuclear Waste Programs, and scope of the audit, and the general methodology Resource Administration (except the Comptroller).
OIG will follow.
Comptroller Office (including CFO audits), Policy and Direction Programs, and Special Technical programs.
Survey: A survey consists of the exploratory work, Under the IAM program, senior audit staff are conducted before the detailed examination, to gather responsibic for ongoing cognizance over their assigned data for identifying audit objectives, documenting areas. Parallelling the agency's basic mission areas, the internal control systems, becoming familiar with the IAM concept establishes "in-house" expertise and activities to be audited, and identifying areas of enables the OlG to be more fully informed and concern to management.
responsive to its statutory responsibilities.
Review: The OiG comprehensively examines and Ilow an Audit Is Conducted analyzes selected areas of a program, activity, or function, using an audit program developed speciiically An audit involves several steps, ranging from to answer the audit objectives.
notification of the office to be audited to audit Exit Conference: The OIG meets with the agency's followup. The underlying goal of the audit process is to maintain an open channel of communication princip 1 m n gets to present and discuss the results of between the auditors and the managers to ensure that the audit. This meetmg provides agency managers an audit findings are accurately and fairly presented in the opp rtunity to confirm mformation, ask questions, and audit report.
provide any necessary clarifying data.
Draft Report: The OlG gives the official draft The key elements in the process are defined as follows:
document to the agency to obtain its written comments on the audit findings and recommendations: the agency Annual Audit Plan: As desen. bed previously, an annual normally has 30 days to respond to the draft.
audit plan is developed and distributed to mterested parties. It contains a listing of audits to be initiated Final Audit Report: The OIG sends the agency the during the year and the general objectives of each final report that contains the agency's official written audit.
response to the draft.
20 flotline Numben 1-E00-233-3497 flotline Number 1-800-233-3497 21
4 The IG at the NRC The IG at the NRC Audit Followup and Closure: This process ensures that i
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agency managers act on the OlG recommendations.
l MREGULATORXCOMMENTARY9 i
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v 3.5 Audit Products Audit Report 4.1 What Is a Regulatory Commentary?
i Regulatory Commentary is the review of existing and An audit report is the documentation of the objectives, proposed legislation, regulations, and policies so as to i
survey, review, recommendations, and findings assist the agency in preventing and detecting fraud, resulting from the objective assessment of a program, waste, and abuse in programs and operations.
l function, or activity.
Regulatory Commentaries document OIG's objective Audits have a well-delineated process that allows for analysis of vulnerabilities created within agency agency review of draft audit reports and required programs and operations by proposed or existing responses to recommendations. Along with this review statutes, regulations, or policies. Commentaries cite.
and response is a formal audit follow-up and reporting the IG Act as authority for the review, state the of audit results in the OIG's " Semiannual Report to specific law, regulation or policy examined, pertinent the Congress.
background information considered and identify OIG concerns, observations, and objections.
Special Evaluation Report A special evaluation report documents the results of 4.2 Ilow Does the OIG Prepare a Regulatory short-term, limited assessments. An evaluation is a Commentary?
mechanism the OlG uses to provide an initial, quick OIG reviews proposed legislation, regulations, response to a question or issue and to work directives, and policy initiatives that affect NRC's collaboratively with agency managers to determine programs and offices. Significant concerns are whether an in-depth independent audit should be documented in a regulatory commentary and provided planned.
to the agency for consideration. The statutory intent.
of the regulatory commentary is to prospectively 3.5.1 Audit Report Distribution identify and assist in preventing problems, therefore, formal replies are not always requested by the OIG.
OlG issues its final audit reports and special IIowever, significant observations regarding action or evaluations to the Commission and to the Congress.
inaction by the agency are reported in the OlG These final reports are public documents.
Semiannual Report to Congress.
22 flotline Number: 1400-233-3497 flotline Number 1400-233-3497 23
The IG at the NRC The IG at the NRC 4.2.1 Regulatory Commentary Distribution 5 TIIE SEMIANNUA'L NEPORT TO CONGRESS; Regulatory Commentaries are normally sent to the agency without limitations on distribution or release to the public.
5.1 What Is the Semiannual Report?
In accordance with requirements of the Inspector General Act. the semiannual report is a document prepared by each IG that summarizes the activitics of that OlG during the six-month periods ending March 31 and September 30. The report is submitted to the head of the agency, the Chairman in the case of the NRC, no later than April 30 and October 31 of each year. The agency may comment on the report, but may not change it. Within 30 days of receipt, the Chairman submits agency remarks together with the IG's report to Congress.
Reporting Requirements for the Semiarinual Report The reporting requirements for the IG's Semiannual Report are contained in Section 5 of the IG Act.
Additional guidance on the content of the report has been provided by the President's Council on Integrity and Efficiency and the Office of Management and Budget. Items normally included in the report:
- 1. Description of significant problems, abuses. and l
deficiencies relating to the administration of the NRC's programs and operation.
- 2. Audit recommendations for corrective action.
- 3. Significant audit recommendations described in previous reports for which the agency has not completed corrective action.
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24 flotline Numben i-800-233-3497
The IG at the NRC The IG at the NRC
- 4. Matters referred to prosecutive authorities and the r y, w'.m
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7-e OAPPENDIX1 results of those prosecutions.
"n-w a.
- 5. Selected Regulatory Commentary summaries and Execrpts from the agency response.
l INSPECTOR GENERAL ACF OF 1978 (Public Law 95-452. October 12. 1978)
- 6. Statistical tables demonstrating the dollar results of l
As amended by the the OIG's internal program audits and contract INSPECrOR GENERAL ACT AMENDMEffrS OF 1988 audits performed during the reporting period.
(Public bw 100-504, October 18.1988)
The report may also include special feature articles concerning relevant topics.
5 2. Purpose and establishment of Offices of Inspector General; departments and agencies involved 5.2 Semiannual Report Distribution in order to create independent and objective units-The Semiannual Report is widely distributed (1) to conduct and supervise audits and investigations titroughout government and to the public, relating to the programs and operations of the establishments listed in section 11(2);
(2) to provide leadership and coordination and recommend policies for activities designed (A) to promote economy, cfficiency, and effectiveners in the administration of, and (B) to prevent and detect fraud and abuse in, such programs and operations; and (3) to provide a means for keeping the head of the -
establishment and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action; there is hereby established in cach of such establishments an office of Inspector General.
5 3. Appointment ofInspector General; supervision; removal; political activities; appointment of Assistant inspector General for Auditing and Assistant Inspector General for Investigations (a) Here shall be at the head of each Office an Inspector General who shall be appointed by the President. by and with the 26 Ilotline Number: 1-800-233-3497 flotline Number-1-800-233-3497 27
The IG at the NHC The IG er the NRC -
advice and consent of the Senate, without regard to political (1) to provide policy direction for and to conduct, affiliation and solely on the basis of integrity and demonstrated supenise, and coordinate audits and investigations relating to ability in accounting, auditing, financial analysis, law, management the programs and operations of such establishment; analysis, public administration, or investigations. Each Inspector General shall report to and be under the general supervision of (2) to review existing and propoced legislation and the head of the establishment involved or, to the extent such regulations relating to programs and operations of such authority is delegated, the officer next in rank below such head, establishment and to make recommendations in the but shall not report to, or be subject to supervision by, any other semiannual reports required by section 5(a) concerning the officer of such establishment. Neither the head of the impact of such legislation or regulations on the economy and establishment nor the officer next in rank below such head shall efficiency in themdministration of programs and operations prevent or prohibit the Inspector General from initiating, carrying administered or financed by such establishment or the out, or completing any audit or investigation or from issuing any prevention and detection of fraud and abuse in such programs subpoena during the course of any audit or investigation.
and operations; (b), An Inspector General may be removed from office by (3) to recommend policies for, and to conduct, the President. 'Ihe President shall communicate the reasons for supervise, or coordinate other activitics carried out or any such removal to both llouscs of Congress.
I nanced by such establishment for the purpose of promoting economy and efficiency in the administration of, or (c) For the purposes of section 7324 of Title 5. United preventing and detecting fraud and abuse, in its programs and States Code, no inspector General shall be considered to be an "PC'"'I""S; emphiyce who determines policies to be pursued by the United States in the nationwide administration of Federal laws.
(4) to recommend poh..cies for, and to conduct, (d) Each Inspector General shall, in accordance with supervise, or coordinate relationships between such applicable laws and regulations governing the civil service-establishment and other Federal agencies, State and local, governmental agencies, and non-governmental entitics with (1) appoint an Assistant inspector General for respact to (A) all matters relating to the promotion of Auditing who shall have the responsibility for supervising the ccommy and efficiency in the administration of, or the performance of auditing activitics relating to programs and prevr.ntion and detection of fraud and abuse in, programs and operations of the establishment, and C7 rations administered or financed by such establishment, or (B) the identification and prosecution of participants in such (2) appoint an Assistant inspector General for fraud or abuse; and Investigations who shall have the responsibility for supervising (5) to keep the head of such establishment and the the performance of investigative activitics relating to such programs and operations.
I Congress fully and currently informed, by means of the reports required by section 5 and otherwise, concerning fraud and other serious prob! cms, abuses, and deficiencies relating 9 4. Duties and Responsibilitiest report of criminal violations to Attorney General to the administration of programs and operations administered or financed by such establishment, to (a) It shall be the duty and responsibility of cach inspector recommend corrective action concerning such problems, General, with respect to the establishment within which his Office abuses, and deficiencies, and to report on the progress made is established-in implementing such corrective action.
28 flotline Number: 1-800-233-3497 flotline Number: 1-800-233-3497 29
The IG at the NRC The IG at the NRC.
(bXI) In carrying out the responsibilitics specified in (As amended Pub.L 100-504 ~litic I, i 109, Oct,18,1988,102 subsection (a)(1), cach Inspector General shall-Stat. 2529.)
(A) comply with standards established by the Comptroller General of the United States for
$ S. Semiannual reports; transmittal to Congress: availability to audits of Federal establishments, organizations, Public;immediate report on serious or flagrant problems programs, activitics, and functions:
(a) Each Inspector General shall, not later than April 30 (11) establish guidelines for determining and October 31 of each year, prepare semiannual reports when it shall be appropriate to use non#Fedcral summarizing the activitics of the Office during the immediateiy auditors; and preceding six# month periods ending March 31 and September 30.
(C) take appropriate steps to assure that any work performed by non-Federal auditors complies (1) a description of significant problems, abuses, and with the standards established by the Comptroller deficiencies relating to the administration of programs and General as describcd in paragraph (1) operations of such establishment disclosed by such activitics (2) For purposes of determining compliance with paragraph (t)(A) with respect to whether internal quality (2) a description of the recommendations for controls are in place and operating and whether established corrective action made by the Office during the reporting audit standards, policies, and procedures are being followed period w;th respect to significant problems, abuses, or by Offices of Inspector General of establishments defined deficiencies identified pursuant to paragraph (1);
under section 11(2) Offices of Inspector General of designated Federal cntitics defined under section SE(aX2),
(3) an identification of cach significant and any audit office established within a Federal entity recommendation described in previous semiannual reports on defined under section SE(aXI), reviews shall be performed which corrective action has not been completed; cxclusively by an audit entity in the Federal Government, including the General Accounting Office or the Office of (4) a summary of matters referred to prosecutive Inspector General of each establishment defined under authorities and the prosecutions and convictions which have section 11(2), or the Office of Inspector General of cach resulted; designated Federal entity defined under section 8E(a)(2).
(5) a summary of each report made to the head of the (c) In carrying out the duties and resp (msibilitics established e;tablishment under section 6(b)(2) during the reporting under this Act, each Inspector General shall give particular regard period; to the activitics of the ComptroIIcr General of the United States with a view toward avoiding duplicaticn aad insuring effective (6) a listing, subdivided according to subject matter, of coordination and cooperation.
each audit report issued by the Office during the reporting period and for each audit report, where applicable, the total (d) In carrying out the dutics and responsibilitics established dollar value of questioned costs (including a separate category under this Act, each Inspector General shall report expeditioust/
for the dollar value of unsupported costs) and the dollar to the Attorney Gencral whenever the Inspector General has value of recommendations that funds be put to better use; reasonabic grounds to believe there has been a violation of Federal criminal law.
(7) a summary of each particularly significant report; 30 Hotline Number 1-800-233-3497 Hotline Number 1-800-233-3497 31
The IG at slw NRC The IG at the NRC-I, (8) statistical tables showing the total number of audit (D) for wh'ch no management decision has i
reports and the total dollar value of questioned costs been made by the end of the reporting period; (including a separate category for the dollar value of unsupported costs), for audit reports-(10) a summary of each audit report issued before the commencement of the reporting period for which no (A) for which no management decision had management decision has been made by the end of the -
been made by the commencement of the reporting reporting period (including the date and title of each such period; report), an explanation of the reasons such management decision has not been made, and a statement concerning the.
(II) which were issued during the reporting period; desired timetable for achieving a management decision on cach such report; (C) for which a management decision was made during the reporting period, including-(11) a description and explanation of the reasons for any significant revised management decision made during the l
(i) the dollar value of disallowed costs; reporting period; and and (12) information concerning any significant (ii) the dollar value of costs not management decision with which the Inspector General is in
]
disallowed; and disagreement.
i (D) for which no management decision has (b) Semiannual reports of each inspector General shall be been made by the end of the reporting period; furnished to the head of the establishrnent involved not later than i
April 30 and October 31 of each year and shall be transmitted by -
)
(9) statistical tabics showing the total number of audit such head to the appropriate committecs or subcom:nittees of the reports and the dollar value of recommendations that funds Congress within thirty days after receipt of the repcrt, together be put to bctter use by management, for audit reports-with a report by the head of the establishment containing-(A) for which no management decision had (1) any comments such head determines appropriate; been made by the commencement of the reporting period; (2) statistical tabics showing the total number of audit reports and the dollar value of disallowed costs, for audit (11) which were issued during the reporting reports-period; (C) for which a management decision had
'l (A) for which final action had not been taken by the commencement of the reporting.
was made during the reporting period, including-period; (i) the dollarvalue of recommendations (B) on which management decisions were that were agreed to by management; and made during the reporting period; (ii) the dollar value of recommendations (C) for which final action was taken during that were not agreed to by management; and the reporting period, including-32 Hotline Number: 1-800-233-3497 Hotline Number 1-800-233-3497 33
The IG at the NRC The IG et the NRC ^
(i) the dollar value of disallowed costs that (A) a list of such audit reports and the date were recovered by management through each such report was issued; collection, offset, property in lieu of cash, or otherwise; and (II) the dollar value of disallowed costs for :
.i cach report; (ii) the dollar value of disallowed costs that (C) the dollar value of recommendations were written off by management; and that funds be put to better use agreed to by (D) for which no final action has been taken management for each report; and by the end of the reporting period; and (D) an explanation of the teamm final action has not been taken with respect to cach such (3) statistical tabics showing the total number of audit audit report, except that such statement may reports and the doliar value of recommendations that funds exclude such audit reports that are under formal be put to better use by management agreed to in a administrative or judicial appeal or upm which management decision, for audit reports-management of an establishment has agreed to pursue a legislative solution, but shall identify the (A) for which final action had not been number of reports in cach category so excluded.-
taken by the commencement of the reporting period; (c) Within 60 days of the transmission of the semiannual reports of cach Inspector General to the Congress. the head of (II) on which management decisions were cach establishment shall make copics of such report available to made during the reporting period; the public upon request and at a reasonable cost. Within 60 days after the transmission of the semiannual report of each (C) for which final action was taken during -
establishment head to the Congress, the head of cach the reporting period, including-establishment shall make copics of such report availabic to the (i) the dollar value of recommendations that were actually completed; and (d) Each Inspector General shall report immediately to the head of the establishment involved whenever the Inspector (ii) the dollar value of recommendations
[
General becomes aware of particularly serious or flagrant that management has subsequently concluded i
problems, abuses, or deficiencies relating to the administration of -
should not or could not be implemented or programs and operations of such establishment. *Ihe head of the completed; and establishment shall transmit any such report to the appropriate committecs or subcommittees of Congress within seven calendar (D) for which no final action has been taken days, together with a report by the head of the establishment by the end of the reporting period; and containing any comments such head deems appropriate.
(4) a statement with respect to audit reports on which (c)(1) Nothing in this section shall be construed to authorize management decisions have been made but final action has the public disclosure of information which is-l not been taken, other than audit reports on which a l
management decision was made within the preceding year, l
(A) specifically prohibited from disclosure by containing-any other provision of law; l
34 Hotline Number-1-800-233-3497 i
Hotline Number: 1-800-233-3497 35 i
I
. -. - -. -. -... -.. ~. -.. - -. - - - - -... - - - -. -.,
The IG at the NRC 1he IG et the NRC
+
(11) specifically required by Executive order (3) the term " disallowed cost" means a questioned to be protected from disclosure in the interest of cost that management,in a management decision, has national defense of national security or in the sustained or agreed should not be charged to the conduct of foreign affairs or Government; (C) a part of.,n ongoing criminal (4) the term " recommendation that funds be put to investigation.
better use" means a recommendation by the Office that funds 3
could be used more efficiently if management of an (2) Notwithstanding paragraph (1)(C), any report establishment took actions to implement and complete the under this section may be disclosed to the public in a form recommendation, including-which includes information with respect to a part of an ongoing criminal investigation if such information has been (A) reduction in outlays; included in a public record.
(B) deobligation of funds from programs or (3) Except to the extent and in the manner provided operations; under section 6103(f) of the Internal Itevenue Ctx!c of 1986
[26 U.S.C.A. 9 6103(f)). nothing in this section or in any other (C) withdrawal of interest subsidy costs on provision of this Act shall be construed to authorize or permit loans or loan guarantees insurance, or lxmds; the withholding of information from the Congress, or from any committee or subcommittee thereof.
(D) costs not incurred by implemenung recommended improvements related to the (I) As used in this section-operations of the establishment, a contractor or grantee; (1) the term " questioned cost" means a cost that is questioned by the Office because of-
'(E) avoidance of unnecessary expenditures noted in preaward reviews of contract or grant (A) an al!cged violation of a provision of a agreements; or law, regulation, contract, grant, cooperative agreement, or other agreement or document (F) any other savings which are specifically governing the expenditure of funds; identified; (II) a finding that, at the time of the audit.
(5) the term " management decision" means the such cost is not supported by adequate evaluation by the management of an establishment of the documentation; or findings and recommendations included in an audit report and the issuance of a final decision by management (C) a finding that the expenditure of funds concerning its response to such findings and for the intended purpose is unnecessary or recommendations, including actions concluded to be unreasonabic; necersary; and (2) the term " unsupported cost" means a cost that is (6) the term " final action" means-questioned by the Office because the Office found that, at the time of the audit, such cost is not supported by adequate (A) the completion of all actions that the documentation; management of an establishment has concluded, in 36
. Isotline Number-1-800-233-3497 Ilotline Number 1-800-233-3497 37
Ihe IG at the NRC The IG at the NRC its management decision, are necessary with respect shall be enforceable by order of any appropriate United to the findings and recommendations included in an States district court: Provided.1 hat procedures other than audit report; and subpoinas shall be used by the Inspector General to obtain (II) in the event that the management of an establishment concludes no action is necessary, (5) to administer to or take from any person an oath, final action occurs when a management decision affirmation, or affidavit, whenever necessary in the has been made.
performance of the functions assigned by this Act, which oath, affirmation, or affidavit when administered or taken by (As amended Pub.L 97-252,11tle XI,51117(c), Sept. 8,1982, % Stat.
or before an employee of an Office of Inspector General 752; Pub.L 100-50LI, litle I, il 102(g),106 Oct.18,1988,102 Stat.
designated by the Inspector General shall have the same 2521, 2525.)
force and effect as if administered or taken by or before an officer having a scal; i 6. Authority ofInspector General;information and assistance from Federal agencies; unreasonable refusal; office space and (6) to have direct and prompt access to the head of equipment; Senior Executive Senice positions the establishment involved when necessary for any purpose pertaining to the performance of functions and (a) In addition to the authority otherwise proved by this Act, responsibilitics under this Act; each Inspector General, in carrying out the provisions of this Act, is authorized-(7) to select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, (1) to have access to all records, reports, audits, powers, and duties of the Office subject to the provisions of reviews, documents, papers, recommendations, or other litle 5, United States Code, governing appointments in the material availabic to the applicable establishment which competitive service, and the provisions of chapter 51 and relate to programs and operations with respect to which that subchapter III of chapter 53 of such title relating to inspector General has responsibilities under this Act; classification and General Schedule pay rates:
(2) to make such investigations and reports relating to (8) to obtain services as authorized by section 3109 of the administration of the programs and operations of the Title 5. United States Code, at daily rates not to exceed the applicabic establishment as are,in the. judgment of the equivalent rate prescribed for grade GS-18 of the General Inspector General, necessary or desirable; Schedule by section 5332 of litle 5, United States Code; and (3) to request such information or assistance as may (9) to the extent and in such amounts as may be be necessary for carrying out the duties and responsibilities provided in advance by appropriations Acts, to enter into provided by this Act from any Federal, State, or local contracts and other arrangements for audits, studies, analyses, i
governmental agency or unit thereof; and other services with public agencies and with private persons, and to make such payments as may be necessary to (4) to require by subpoena the production of all carry out the provisions of this Act.
information, documents, reports, answers, records, accounts, papers, and other data and documentary evidence necessary (b)(1) Upon request of an Inspector General for information in the performance of the functions assigned by this Act, or assistance under subsection (a)(3), the head of any Federal which subpoena, in the case of contumacy or refusal to obey, agency involved shall, insofar as is practicable and not in 38 flotline Number: 1-800-233-3497 florime Number: 1-800-233-3497 39
The IG at the NRC 77te IG at the NRC contravention of any existing statutory restriction or regulation of of the employee without the consent of the employec, unicss the the Federal agency from which the information is requested, inspector General determines such disclosure is unavoidable furnish to such inspector General, or to an authorized designec, during the course of the investigation.
such information or assistance.
(c) Any employee who has authority to take, direct others to (2) Whenever information or assistance requested under take, recommend, or approve any personnel action, shall not, with subsection (a)(1) or (a)(3) is, in the judgment of an Inspector respect to such authority, take or threaten to take any action General, unreasonably refused or not provided, the inspector against any employee as a reprisal for making a complaint or General shall report the circumstances to the head of the disclosing information to an Inspector General, unless the establishment involved without delay.
complaint was made or the information disclosed with the knowledge that it was false or with willful disregard for its truth or (c) Each head of an establishment shall provide the Office
- falsity, within such establishment with appropriate and adequate office space at central and field office locations of such establishment, together with such equipment, office supplics, and 5 8B. Special prosis.ons concernmg the Nuclear Regulatory communications facilitics and services as may be necessary for the operation of such offices, and shall provide necessary maintenance (a) The Chairman of the Commission may delegate the services for such offices and the equipment and facilitics located therem.
authority specified it. the second sentence of section 3(a) to another member of the Nuc! car Regulatory Commission, but shall (d) For purposes of the provisions of *Iltic 5. United States not delegate such authority to any other officer or employee of the Code, governing the Senior Executive Service, any reference m Commission.
such provisions to the # appointing authority" for a member of the Senior Executive Service or for a Senior Executive Service position (b) Notwithstanding sections 6(a)(7) and (S), the Inspector shall, if such member of position is or would be within the Office General of the Nuclear Regulatory Commission is authorized to of an Inspector General, be deemed to be a reference to such select, appoint, and employ such officers and employces as may bc l
Inspector General.
necessary for carrying out the functions, powers and dutics of the Office of Inspector General and to obtain the temporary or (As amended Pub.L 100-504,'litic I,55107,110(a), Oct.18,1988,102 intermittent services of experts or consultants or an organization Stat. 2528, 2529.)
thereof, subject to the applicable laws and regulations that govern such selections, appointments and employment, and the obtaining of such services, within the Nuclear Regulatory Commission.
s 7, Complaints by employees; disclosure ofidentity; reprisals I
(Added Pub.L 100-504, Title I,$l 102(f), Oct.18,1988,102 Stat.
(a) The Inspector General may receive and investigate 4
complaints or information from an employee of the establishment E
g*)
concerning the possible existence of an activity constituting a violation of law, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority or a substantial and specific I
danger to the public health and safety.
(b) 'Ihc inspector General shall not, after receipt of a complaint or information from an employce, disclose the identity 40 Hotline Number 1-800-233-3497 Hotline Number 1-800-233-3497 41
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