ML18121A087

OIG-16-A-20-Status of Recommendations: Audit of the U.S. Nuclear Regulatory Commission'S Implementation of Federal Manager'S Financial Integrity Act for Fy 2015, Dated May 1, 2018

ML18121A087
Person / Time
Issue date:	05/01/2018
From:	Baker B NRC/OIG/AIGA
To:	Mccree V, Maureen Wylie NRC/EDO, NRC/OCFO
References
OIG-16-A-20
Download: ML18121A087 (5)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 OFFICE OF THE INSPECTOR GENERAL May 1, 2018 MEMORANDUM TO: Maureen E. Wylie Chief Financial Officer Victor M. McCree Executive Director for Operations FROM: Dr. Brett M. Baker /RA/

Assistant Inspector General for Audits

SUBJECT:

STATUS OF RECOMMENDATIONS: AUDIT OF THE U.S.

NUCLEAR REGULATORY COMMISSIONS IMPLEMENTATION OF FEDERAL MANAGERS FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 2015 (OIG-16-A-20)

REFERENCE:

CHIEF FINANCIAL OFFICERS MEMORANDUM DATED MARCH 26, 2018 Attached is the Office of the Inspector Generals (OIG) analysis and status of recommendations as discussed in the agencys response dated March 26, 2018.

Based on these responses, recommendations 2 and 3 are closed. Recommendation 1 was previously closed. Therefore, all recommendations related to this report are now closed.

If you have questions or concerns, please call me at (301) 415-5915 or Eric Rivera, Team Leader, at (301) 415-7032.

Attachment:

As stated cc: R. Lewis, OEDO H. Rasouli, OEDO J. Jolicouer, OEDO J. Bowen, OEDO EDO_ACS Distribution Resource S. Hudson, OCFO RidsOcfoMailCenter Resource

Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS IMPLEMENTATION OF FEDERAL MANAGERS FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 2015 (OIG-16-A-20)

Recommendation 2: Update and align agency guidance and processes related to internal control over program operations, quarterly performance review, and strategic planning.

Agency Response Dated March 26, 2018:

Agree. The agency has revised Management Directive (MD) 4.4, Enterprise Risk Management and Internal Control, to align with the updated requirements in the OMB Circular A-123, Managements Responsibility for Enterprise Risk Management and internal Control, issued in July 2016.

The revised MD 4.4 establishes an Enterprise Risk Management (ERM) governance and communication structure that aligns agency guidance and processes related to internal control over program operations, Quarterly Performance Review (QPR), and strategic planning.

NRC developed and fully implemented an ERM Framework which included transforming the QPR process to an ERM analysis and discussion led by the Programmatic Senior Assessment Team (PSAT).

Milestones:

Establish the PSAT - Completed (Memo and Charter)

OMB Revised Circular A-123 (Issued by OMB, July 15, 2016)

Document the ERM Framework - Completed Update MD 4.4 and Handbook - Completed (Issued by NRC, December 14, 2017)

Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS IMPLEMENTATION OF FEDERAL MANAGERS FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 2015 (OIG-16-A-20)

Status of Recommendations Recommendation 2 (cont):

OIG Analysis: OIG reviewed the FY 2017 Q1 Quarterly Performance Review Meeting Summary, dated February 14, 2017, and determined that the PSAT group was established and met to discuss topics. OIG also received and reviewed documentation, identified by the agency, associated with updated agency guidance and processes related to internal control over program operations, including alignment with quarterly performance review and strategic planning processes. Therefore, this recommendation is closed.

Status: Closed.

Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS IMPLEMENTATION OF FEDERAL MANAGERS FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 2015 (OIG-16-A-20)

Status of Recommendations Recommendation 3: Develop and implement enhanced record retention requirements for documentation related to internal control and corrective action plans to conform to the guidance in MD 4.4,Section III.

Agency Response Dated March 26, 2018:

Agree. The agency has revised MD 4.4, effective December 14, 2017, to align with the updated requirements in the OMB Circular A-123. Prior to the revision, staff updated the Internal Control Plans (ICPs) for all business lines to better align with the requirements in the prior version of MD 4.4,Section III. The ICP template provides a summary of the agencys approach to programmatic internal control and corrective action plans. Business line managers review the ICP and elevate enterprise-wide risks for consideration by the PSAT.

The agency has enhanced the record retention for documentation related to ICPs. The ICP includes a section for closed actions; as control activities are completed throughout the fiscal year, the completed activities are moved to the closed section. Staff update the ICPs on a semi-annual basis. End-of-fiscal-year ICPs are stored on OCFOs shared drive. The Internal Control and Planning Team has created an Internal Control SharePoint site as the agencys one-stop-shop for links to internal control requirements, guidance, documentation, and communications.

Milestones:

Update the Business Line Internal Control Plans -

Completed (New Template)

Issue Interim Guidance for Programmatic Internal Control - Completed OMB Revised Circular A-123 (Issued by OMB, July 15, 2016)

Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS IMPLEMENTATION OF FEDERAL MANAGERS FINANCIAL INTEGRITY ACT FOR FISCAL YEAR 2015 (OIG-16-A-20)

Status of Recommendations Recommendation 3 (cont):

Establish an Internal Control SharePoint site as a one-stop-shop - Completed Update MD 4.4 and Handbook - Completed (Issued by NRC, December 14, 2017)

OIG Analysis: OIG received and reviewed documentation on agency efforts to develop and implement enhanced record retention requirements for documentation related to internal control and corrective action plans. These enhanced requirements conformed to the guidance in MD 4.4,Section III.

Therefore, this recommendation is closed.

Status: Closed.