ML20246G128
| ML20246G128 | |
| Person / Time | |
|---|---|
| Issue date: | 08/18/1989 |
| From: | Carr K NRC COMMISSION (OCM) |
| To: | Hodsoll F OFFICE OF MANAGEMENT & BUDGET |
| References | |
| NUDOCS 8908310228 | |
| Download: ML20246G128 (4) | |
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UNITED STATES o-Ig(C E"
NUCLEAR REGULATORY COMMISSION
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WASHINGTON, D. C. 20555
.... f CHAIRMAN August 18, 1989 Mr. Frank Hodsoll Executive Associate Director Office of Management and Budget Washington, D.C. 20503
Dear Mr. Hodsoll:
In response to your. memorandum of August 1, 1989, the Acting Executive Director for Operations (EDO) reviewed the Nuclear Regulatory Commission's (NRC's) internal control process'and' audit follow-up system.
1le has found that reviews are being conducted that will identify major problem areas and that agency managers are working.to correct known problems.
I have enclosed a copy of the Acting ED0's report, which has been concurred.in by the Acting Inspector General.
Please let me know if you have any questions or wish additional information about NRC's internal control program and audit follow-up system.
Sincerely, unW.
Kenneth M. Carr
Enclosure:
NRC's Internal Control Process and Audit follow-up System Ok l
8908310228 89oS28
' I FDR COMMS NRCC CORRESPONDENCE' PDC L_- - _ -
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THE NUCLEAR REGULATORY COMMISSION'S (NRC's)
INTERNAL CONTROL PROCESS AND AUDIT FOLLOW-UP SYSTEM The Deputy Controller coordinates NRC's internal control program and chairs an laternal Control Committee of HRC senior managers.
In 1987, as pset of the effort to develop and implement the Five-Year Management Control Plan (MCP), the NRC performed detailed reviews of virtually all of NRC's financial systems, a major detailed review of the process for assessing fees from licensees, and a comprehensive set of vulnerability assessments of all NRC operations.
Following this MCP, beginning in 1988, internal control reviews were conducted of the most vulnerable programs in the agency.
In 1988, 13 reviews were performed, and 15 reviews are planned for completion in 1989.
These reviews cover programmatic as well as administrative areas, including operator licensing, high-level waste management, region-based inspections, review of reactor applications, security, information resources, and the program to consolidate NRC headquarters' offices in a single location.
Annual training on how to conduct internal control reviews is provided to managers responsible for certification of the adequacy of controls and to staff who conduct the reviews.
The Office of the Controller tracks internal control deficiencies identified in internal control reviews and internal and external audits and requests semiannual reports on the status of corrective action.
Our preliminary assessment shows that no material weaknesses have been identified in the internal control reviews conducted so far in 1989.
Corrective action has been taken in about 60 percent of the 94 internal control deficiencies identified in 1988.
A material weakness in the process for assessing fees from licensees was identified in 1987.
Corrective action on this matter is largely completed.
We are continuing to improve the automated license fee system with the ultimate goal of achieving a fully automated billings and collections system.
The Inspector General plans to initiate a review of the license fee management system in 1989 to provide an opinion on whether the actions taken by NRC have corrected the material weakness.
On December 15, 1988, the former Office of Inspector and Auditor (now the Inspector General) issued a report which concluded that NRC has complied in a reasonable and prudent manner with the requirements of the Federal Managers' Financial Integrity Act (FMFIA).
The Office of Inspector and Auditor also reported that they considered the four recommendations froid their 1987 review
.. of NRC's implementation of the FMFIA closed.
The recommendations I
related to assuring that A-127 (Financial Systems) reviews'were conducted in accordance with OMB guidelines, tracking the status of actions to correct deficiencies, and reporting of material i
weaknesses.
The follow-up review confirmed that guidelines on conducting A-127 reviews wero provided to the responsible program managers, that a system to track the status of actions to correct deficiencies had been established, and that a material weakness with respect to the license fee management system was reported to the President.
With respect to the audit follow-up system, a senior official in the Office of the Executive Director for Operations has been designated the NRC's audit follow-up official.
Recommendations for corrective actions identified in internal and external audit
-reports are tracked centrally in the Office of the Executive Director for Operations, and periodic follow-ups are conducted to
' ensure management action.
The Inspector General.will include a summary of the status of unresolved recommendations in its semiannual report to the Chairman and to the Congress.
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EXECUTIVE OFFICE OF THE PRESIDENT
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' MEMORANDUM FOR: HEADS OF INDEPENDENT AGENCIES
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FROM:
Frank Hodsoll Executive Associate Director /
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SUBJECT:
Government Management and Integrity Thank you'for meeting with me or sending your personal representative to our~ July 21st meeting.
At the meeting, I emphasized the need for you to become familiar with and personally involved in the internal control-process.and the audit followup system in your agency.
.As-Government managers, we are responsible for ensuring known
. problems are corrected and that reviews are being conducted which' will-identify major problem-areas.
~I'would like each of you or your deputy to personally assass your Federal Managers' Financial Integrity'Act program and your audit followup system.
As I mentioned, your senior managers, Inspectors General and Chief. Financial' Officers can assist you ir'
'this effort.
Please provide a report to me on your findings by August 18th.
We will review your~ reports at the Office of Management and Budget, and then. work with you to try and make sure that aty weaknesses are satisfactorily addressed.
Please do not. hesitate to give me a call (395-6190) if you have any questions.
Thank you for your cooperation.
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