ML20154K815
| ML20154K815 | |
| Person / Time | |
|---|---|
| Issue date: | 06/17/1998 |
| From: | Callan L NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Diaz N, Dicus G, Shirley Ann Jackson, Mcgaffigan E, The Chairman NRC COMMISSION (OCM) |
| Shared Package | |
| ML20154K820 | List: |
| References | |
| NUDOCS 9810190033 | |
| Download: ML20154K815 (3) | |
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WASHINGTON, D.C. 2055M001 June 17, 1998
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MEMORANDUM TO:
Chairman Jackson Commissioner Dicus Commissioner Diaz Commissioner McGaffigan' FROM:
L. Joseph Callan Executive Director fo perations r
SUBJECT:
REVISION TO MANAGEMENT DIRECTIVE (MD) 6.1 -
RESOLUTION AND FOLLOWUP OF AUDIT RECOMMENDATIONS This memorandum provides a revision to MD 6.1 and requests Commission approval to issue it.
In its audit report on " Review of NRC's MD 6.1" dated September 5,1997, the Office of the Inspector Oeneral (OlG) recommended that MD 6.1 be revised to reflect organizational changes made oy the Commission that became effective on January 5,1997. Specifically, organizational responsibilities and delegations of authority needed clarification to identify the NRC officials responsible for reviewing and responding to OlG draft audit reports and resolving disagreements on audit recommendations that arise between OlG and agency officials. The OlG audit is included as attachment 1. The MD has been revised to reflect these organizational changes and is included as attachment 2.
While most of the revisions reflect organizational changes, there is one significant change from the current MD dated January 13,1993. On February 5,1998, the OlG provided comments on a draft revision of MD 6.1. OlG recommended changes to pages 4 and 5, Resolution of Audit Recommendations, of the Handbook, Part I, to reflect the fact that the OlG ".. reports to, and refers issues to the Chairman, and it is the Chairman that responds to OlG. Further, the Chairman (instead of Commission) should be identified as the responeible party for resolving O!G recommendations." OlG based this recommendation on a momorandum from Chairman Jackson to the other NRC Commissioners dated August 20,1997, inejuded as attachment 3.
OGC's March 30,1998 memorandum (attachment 4) advises in part.. "However, to the extent g that any of OlG's recommendations on pages 4 and 5 of the Handbook would vest in the Chairman unilateral authority to resolve matters relating to policy formulation, certain types of rulemaking or orders, and adjudications, these are areas within the Commission's authority l
under the Reorganization Plan." Consequently, the MD has been revised to account for this limitation on the Chairman's authority. These changes are reflected ori page 2 of the Directive and pages 4 and 5 of the Handbook, Part 1.
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Contact:
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James L. Blaha, OEDO
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9810190033 980617 PDR COMMS NRCC CORRESPONDENCE PDR 97&/906 M y
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2 The Offices of the Chief Financial Officer, the Chief Information Officer, and the Inspector General have concurred in this memorandum and the MD. The OGC has no legal objection.
Unless directed otherwise by the Commission, the staff intends to issue the revised MD 6.1 within 10 days from the date of this memorandum.
SECY, please track.
Attachments:
~1. OlG Audit 9/5/97
- 2. Revised MD 6.1
- 3. Chairman Jackson Memo 8/20/97 i
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i ATTACHMENT 1
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UNITED STATES f
k NUCLEAR REGULATORY COMMISSION g
j WASHINGTON, D.C. 20555-0001
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OFFICE OF THE INSPECTOR GENERAL September 5,1997 t
MEMORANDUM FOR:
L, Joseph Callan Executive Director for Operations Jesse L. Funches Chief FinancialOfficer Anthony J. Galante Chief information Officer M
.R d FROM:
Thomas J.
archi Assistant inspector General for Audits
SUBJECT:
REVIEW OF NRC'S MANAGEMENT DIRECTIVE 6.1 Attached is the Office of the inspector General's audit report entitled, " Review of NRC's Management Directive 6.1."
On August 29,1997, the Executive Director for Operations responded to our draft report. He agreed with our recommendations and stated corrective actions will be complete by March 2,1998.
Please contact me on 415-5915 if we can assist you further in this matter.
Attachment:
As stated l.
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cc-L. Callan EDO J. Blaha, AO/OEDO P. Norry, DEDM/OEDO H. Thompson, DEDR/OEDO E. Jordan, DEDO /OEDO A.- Galante, CIO J. Funches, CFO J. Cordes, Acting OCAA D. Rathbun, OCA K. Cyr, OGC C. Stoiber, OlP W. Beecher, OPA
, J. Hoyle, SECY.
' E. Halman, ADM T. Martin, AEOD A. Levin, Acting IRM
. G. Caputo, Of P. Bird, HR I. Little, SBCR.
R. Bangart, OSP C. Paperiello, NMSS S. Collins, NRR A. Thadnat, RES
" T. Taylor, ACMUI P. Pomeroy, ACNW R. Seale, ACRS-P. Cotter, Jr., ASLBP H. Miller, RI L. Reyes, Ril A. Beach, Rlll J. Dyer, Acting Regional Administrator, RIV OPA-R1 OPA-Ril CPA-Rill l-OPA-RIV l
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Review of NRC's Management Directive 6.1 REPORT SYNOPSIS Office of Management and Budget Circular A-50, " Audit Fo!!ow-up," requires each agency to establish systems to assure the prompt and proper resolution and implementation of audit recommendations. These systems shall provide for a complete record of actions taken on all recommendations.
In Sght of NRC's recent organizational changes and establishment of an Executive Couacil, we reviewed the adequacy of the agency's current directive for responding to Oft'ce of the Inspector General (OlG) audit reports and for reaching resolution on recon mendations.
While the agency maintains a centralized tracking system, we found that Management Directive 6.1/ Handbook needs to be updated to reflect organizational changes made by the Commission that became effective in January 1997.
Specifically, OlG recommended that NRC clarify who is responsible for:
(1) reviewing and responding to OlG draft audit reports and (2) resolving disagreements on audit recommendations that arise between the OlG and agency officials.
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l OlGI97A-20 Pagei
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Review of NRC's Management Directive 6.1 TABLE OF CONTENTS REPORT SYNOPSI S......................................... i I NTRO D U CTI O N............................................ 1 BACKGROUND..................
.....1 FI N D I N G S..................................
....2 CONCLUSION...................
....3 RECOMMENDATION.............
..3 i
AGENCY COMMENTS.................
3 APPENDICES l
Objectives, Scope, And Methodology II Agency Comments ill Major Contributors To This Report IV Glossary: Office of the Inspector General Products OlG/97A-20
e Review of NRC's Management Directive
6.1 INTRODUCTION
4 Audit follow-up is an integral part of good management and is a shared responsibility of agency management officials and auditors. Corrective action by management on agreed upon findings and recommendations is essential to improving the effectiveness and efficiency of agency operations.
In light of NRC's recent organizational changes, we reviewed the agency's directive for responding to Office of the inspector General (OlG) audit reports and for reaching resolution on recommendations to determine if the directive needed revision.
BACKGROUND Office of Management and Budget (OMB) Circular A-50, " Audit Follow-up," requires each agency to establish systems to assure the prompt and proper resolution and implementation of audit recommendations. These systems shall provide for a complete record of actions taken on all recommendations.
OMB Circular A-50 also requires that agency heads designate a top management official to oversee audit follow-up, including resolution and corrective action. The agency's audit follow-up official (AFO) has the responsibility for ensuring that systems of audit follow-up, resolution, and corrective action are documented and in place.
NRC's Management Directive 6.1/ Handbook, " Resolution and Follow-up of Audit Recommendations," outlines specific responsibilities for senior management personnel and requires the documentation of management actions and decisions related to follow-up activity. The current Directive designates the Executive Director for Operations (EDO) to serve as the AFO. To achieve the purpose of both the OMB Circular and Management Directive 6.1/Han.dbook, NRC's AFO uses a centralized tracking system called the Work Item Tracking System.
i In January 1997, the NRC Ch' airman realigned the EDO's responsibility and established a three-person Executive Council. The Executive Council is made up of the Executive Director for Operations, the Chief Information Officer (CIO), and the Chief Financial Officer. All three report directly to the Chairman.
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Review of NRC's Management Directive 6.1 FINDINGS We found that the agency's guidance for handling and. resolving OlG audit recommendations is outdated and needs to be revised to reflect the current organizational structure and establishment of an Executive Council.
Management Directive 6.1/ Handbook provides intemal guidance to NRC personnel forimplementing OMB Circular A-50. Moreover, existing guidance assigns the EDO as the AFO. As such, the EDO is currently responsible for resolving disagreements between the Deputy Executive Directors for Operations (DEDOs) and the inspector General regarding internal audit findings and recommendations. Additionally, DEDOs are responsible for reviewing and responding to draft internal audit reports for their respective areas of responsibility. However, the EDO and DEDO's authority was documented in 1993 - prior to the agency's January 1997 major organizational realignment.
We believe NRC's Management Directive 6.1/ Handbook needs to be revised to reflect this organizational change. Specifically, organizational responsibilities and delegations of authority need to be clarified to establish who is responsible for:
(1) reviewing and responding to OlG draft audit reports and (2) resolving i
disagreements on audit recommendations that arise between OlG and agency officials.
In our discussions with the Secretary of the Executive Council, he agreed Management Directive 6.1/ Handbook needs revision to reflect current responsibilities for reviewing OlG draft reports and resolving disagreements on recommendations. He also advised us that OlG draft reports should continue to be sent to the deputy official primarily responsible for the program under audit as required by current guidance. He added, however, because a deputy position for information management (CIO organization) does not currently exist, draft reports in this area should be sent directly to the CIO for review and response. Further, the NRC Chairman should resolve disagreements on audit recommendations that arise between OlG and the CIO.
olG/97A-20 Page 2
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Review of NRC's Management Directive
6.1 CONCLUSION
Management Directive 6.1/ Handbook needs to be revised to reflect current organizational changes that took effect January 5,1997. Specifically, organizational responsibilities and delegations of authority need to be clarified to establish who is responsibile for. (1) reviewing and responding to OlG draft audit reports and (2) resolving disagreements on audit recommendations that arise between OlG and agency officials.
RECOMMENDATION The EDO should revise Management Directive 6.1/ Handbook to identify the NRC officials responsible for:
1.
Reviewing and responding to OlG draft audit reports.
2.
Resolving disagreements on audit recommendations that arise between OlG and agency officials.
i AGENCY COMMENTS l
l On August 29,1997, the Executive Director for Operations responded to our draft report. He agreed with our recommendations and stated corrective actions will be l
complete by March 2,1998.
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I OlG/97A-20 Page 3 i
l Appendix I Review of NRC's Management Directive 6.1 l
OBJECTIVES, SCOPE, AND METHODOLOGY.
i The objective of the Office of the inspector General's review, in light of NRC's recent organizational changes, wa's to review the adequacy of the agency's current directive for responding to audit reports and for reaching resolution on recommendations.
To accomplish this objective, we reviewed NRC's policies and procedures regarding audit follow-up and the authorities and responsibilities delegated to NRC managers.
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We interviewed the Secretary of the Executive Council as well as other persons assigned follow-up responsibility on behalf of the audit follow-up official. We did not test the completeness or accuracy of the agency's centralized tracking system for audit recommendations.
Our review was performed at NRC Headquarters during the period July through i
August 1997 in accordance with generally accepted Government auditing standards.
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