ML20197B409
| ML20197B409 | |
| Person / Time | |
|---|---|
| Issue date: | 02/09/1998 |
| From: | Bell H NRC OFFICE OF THE INSPECTOR GENERAL (OIG) |
| To: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| Shared Package | |
| ML20197B415 | List: |
| References | |
| NUDOCS 9803110090 | |
| Download: ML20197B409 (2) | |
Text
<,o(At%'o UNITED STATES P'- /n NUCLEAR REGULATORY COMMISSION h : $ WASHINGTON. o.C. 20$55-0001
\ ***** / February 9,1998 OFFICE OF THE INSPECTOR GENERAL MEMORANDUM TO: Chairman Jackson FROM: Hubert T. Bell / d.
Inspector General
SUBJECT:
REVIEh OF NRC'S IMPLEMENTATION OF THE FEDERAL MANAGERS' FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 1997 The Federal Managers' Financial Integrity Act (FMFIA) requires Federal managers to establish a continuous process for evaluating, improving, and reporting on the internal control and accounting systems for which they are responsible. The FMFIA requires that by December 31 of each year, the head of each executive agency subject to the Act shall submit a report to the President and Congress on the status of management controls and financial systems that protect the integrity of agency programs and administrative activities. As part of an Office of Management and Budget (OMB) sponsored pilot program to streamline financial reporting, the Nuclear Regulatory Commission (NRC) issues its FMFIA report as part of its annual " Accountability Report."
OMB Circular A-123, Reviseo, " Management Acccuntability and Control," is the implementing guidance for FMFIA. The term " internal controls," as envisioned by the FMFIA, is synonymous with
" management controls" and encompasses program and administrative areas, as well as the accounting and financial management areas.
NRC redesigned and streamlined its management control program in accordance with the National Performance Review recommendations and OMB's 1995 revision to OMB Circular A-123. The redes!gned program required offices designated as highest risk (with respect to programmatic and administrative activities) to submit management control plans and reasonable assurance letters to NRC's Executive Committes for Management Controls. The Executive Director for Operations is the Chairman of the Executive Ccmmittee.
We found that NRC has complied with the requirements of the FMFIA during Fiscal Year (FY) 1997. Although our work did not identify any material weaknesses in FY 1997, we believe NRC needs to be especially attentive to a funding issue for the agency's High-Level Waste (HLW) repository program. This has been an issue in the Office of Nuclear Material Safety and Safeguards' (NMSS) reasonable assurance letter for the past two years. NMSS reported that fum FY 1996 through FY 1998 the HLW program received appropriations which were $16 million ". m; of requests. NMSS believes that such reductions affect NRC's ability to meet the sched:(
(1) de.icloping the necessary regulatory framework, (2) reviewing the Department of Energy's site characterization program and, (3) resolving key technicalissues at the stafflevel.
NRC has determined that this issue is not a material weakness. Although funding for the HLW program increased from $15 million in FY 1998 to $18.5 in FY 1999, it was still short of the $20.15 9803110090 980209 PDR ORO NRCIO PDR
2- ,
million requested. We believe that NRC needs to carefully monitor its ability to fulfillits regulatory.
responsibilities in light of recent budget shortfalls. We plan to monitor NRC's actions on this issue.
FY 1997 was the third year of NRC's revised management control program. Our review of the first year (FY 1995), not only examined management control plans and reasonable assurance letters, but also evaluated the implementation of NRC's process. Over the next two years, we focused on -
issues raised by OlG and the offices in their control plans and reasonab'.e assurance letters. Now that the process has reached maturity, we plan to assess the effectiveness End completeness of the overall process in FY 1998.
Attachment:
As stated cc: Commissioner Dieus Commissioner McGaffigan Commissioner Diaz L. Callan, EDO J. Blaha, AO/OEDO P. Norry, DEDM/OEDO H. Thompson, DEDR/OEDO A. Thadani, 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, 01 P. Bird, OP