National Nuclear Regulator (NNR) Annual Report 2014 For the protection of persons, property and the...

National Nuclear Regulator (NNR)Annual Report 2014

For the protection of persons, property and the environment against nuclear damage

Presentation to Parliamentary Portfolio Committee

VISIONTo be an independent world-class regulatory authority on nuclear safety.

MISSIONTo provide and maintain an effective and efficient national regulatory framework for the protection of persons, property and the environment against nuclear damage.

The Pillars

CORPORATE VALUES

PROFESSIONALISMWe hold ourselves accountable to the highest standards of professionalism in everything that we do.

INTEGRITYWe demonstrate integrity and ethical conduct in all that we do.

VALUING PEOPLEWe demonstrate that we value our people in all that we do.

EXCELLENCEWe strive for excellence in all that we do.

The Values

Key Functions

1. Grant or amend nuclear authorisations;

2. Employ assets and deploy resources (hire, purchase, acquire);

3. Collaborate with other institutions for the collection and dissemination of scientific and technical information regarding nuclear energy;

4. Collaborate with other institutions regarding provision of instruction for or training of persons required by the NNR;

5. Provide financial and other assistance for the training of people to enable the NNR to perform its functions;

6 Insure itself against loss, damage, risk or liability;

7. Advise the Minister on:

a. Conditions that may cause nuclear damage

b. Items the Minister has referred to the NNR

c. What the NNR thinks necessary;

8. Act as national competent Authority in connection with International Atomic Energy Agency’s Regulations;

9. Conclude contracts to enhance the value of the services rendered by the NNR;

10. Prepare & submit annual report on the health & safety of workers, the public and environment associated with all sites.

ANNUAL PERFORMANCE SUMMARY

2013/14 PERFORMANCE

Overview of the Annual Report – Key Highlights

Compliance Assurance @ NNR•The NNR can provide an assurance of compliance with conditions of authorisations

•All scheduled inspections were completed

•Audits and environmental samples collection were done as scheduled

•In cases of non-compliance, the organisation took appropriate enforcement measures.

•The nuclear facility operators have operated within the applicable limits for radiation exposure of members of the public and occupationally exposed workers. i.e. well below the regulatory criteria of 0.25 mSv per annum and 4mSv per annum for members of the public and occupationally exposed workers, respectively.

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Overview of the Annual Report – Key

HighlightsCompliance Assurance for the Transport of Radioactive Material

•Conducted Peer Review Missions to Ghana, Kenya, Botswana and Mauritius. To assert the NNR’s expertise in the regulation of transport of radioactive materials, the NNR’s Transport Safety expert, Mr Paul Hinrichsen was appointed as Chairman of the International Atomic Energy Agency’s Transport Safety Standards Committee for the term 2014 to 2017

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Compliance Assurance

•The NNR can provide an assurance of compliance with conditions of authorisations •All scheduled inspections were completed•Audits and environmental samples collection were done as scheduled•In cases of non-compliance, the organisation took appropriate enforcement measures.•The nuclear facility operators have operated within the applicable limits for radiation exposure of members of the public and occupationally exposed workers. i.e. well below the regulatory criteria of 0.25 mSv per annum and 4mSv per annum for members of the public and occupationally exposed workers, respectively.

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3rd revision of the post-Fukushima Koeberg Nuclear Power Station (KNPS):

•It is a safety reassessment report including the findings from the completed seismic margin assessment, and a progress report on procurement of portable emergency equipment and short term plant modifications submitted by Eskom.Special case mines•As a result of the measures instituted by the NNR, in this reporting period these facilities have not exceeded the regulatory limits.

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SAFARI-1 Research Reactor:

•Is expected to have an operational life that extends till 2030, the NNR has requested NECSA to develop and implement an ageing management programme for SAFARI-1 in accordance with guidance provided in IAEA safety guide SSG-10.

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Engagement with bilateral and multilateral partners:

•Successfully hosted three IAEA Regional Technical Workshops in South Africa•Implemented nuclear safety bilateral cooperation programmes with ASN (France), CNSC (Canada),•Rostechnadzor (Russia) and NRC (USA).•Participated at the Multi-national Design Evaluation Programme (MDEP) Steering Technical Committee in Helsinki, Finland.•Continued our participation in the working groups and technical safety standards committee meetings of the IAEA •Hosted a workshop presented by the United States Nuclear Regulatory Commission (USNRC)

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the NNR’s Radioactivity Analysis Laboratory Refurbishment project

•Completed during the review period. The ARC laboratory will have the capacity to perform gamma, beta, and alpha as well as gross alpha/beta analyses. The NMISA laboratory will process the Koeberg power station samples and will perform gamma and beta analysis. Operation of both is scheduled to commence in the next financial year.

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Nuclear Safety Compliance Index

•Although minor occurrences were reported during the period under review, it must be noted that there were no nuclear occurrences that can be classified under the category of a nuclear accident or nuclear incident as defined in the NNR Act during the review period.

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Human Capital @ the NNR:•Extensive review of all human resources policies and procedures e.g.– Individual Performance

Management,– Occupational Health and Safety

and Management of– Poor Work Performance. The

review process will continue into the next financial year.

•Research international best practices of comparative nuclear regulators and to develop a customised job evaluation system for the NNR.

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TECHNICAL PERFORMANCE

Nuclear authorisations active for period under

review Type Number

Nuclear Vehicle

License

2

Nuclear

Installation

License

42

Certificates of

Registration

147 Mining/mineral

processing/scrap

processor/small

user/ service

provider

Certificates of

Exemption

5 Various conditions

Occupational exposure to radiation at KNPS

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Special case mines

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Update on Key Capital projects

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Optimisation of the Legal and Regulatory Framework

SAT Action Plan

Well advanced , submitted proposal for the amendment of the NNR Act and safety regulations

INIR Action Plan Not begun. NNR awaiting report

Emergency Control Centre Slow start but now underway

Refurbishment of the Cape Town site Office

Inception stages

NNR Radio-Analytical Laboratory Centurion – completeCape town – nearing completion

SGR Recruitment of key skills has begun

Centralised Interim Spent Fuel Storage Facility and the Transient Interim Storage Facility

Delayed

Nuclear Expansion Programme-9.6GW

In progress

HUMAN RESOURCESREPORT

Reported figures: Equity Status

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Note: It should be noted the high number of people reported at a Senior Management level is due to the incorrect categorisation of employees on our internal systems based on occupational categories as opposed to occupational levels. This has since been addressed and the NNR has embarked on an extensive job evaluation process in order to further properly categorise employees based on the relative ranking and value of jobs within the organisation.

Updated figures: Equity Status

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AM CM IM WM AF CF IF WF FM FF

TO

TAL

Top

Managemen

t (Paterson

F)

0 0 0 0 0 0 0 0 0 0 0

Senior

Managemen

t (Paterson

E)

1 1 0 0 1 0 0 0 0 0 3

Professional

Qualified

(Paterson D)

24 6 4 11 17 0 2 2 3 2 71

Skilled

(Paterson C)10 0 0 0 17 1 0 5 0 0 33

Semi-Skilled

(Paterson B)1 0 0 0 2 0 0 0 0 0 3

Unskilled

(Paterson A) 0 0 0 0 0 0 0 0 0 0 0

Total 36 7 4 11 37 1 2 7 3 2 110

ANNUAL FINANCIAL STATEMENTS

Statement of Financial Position

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27

Statement of Financial Position analytical review

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29


30


31


• Cash and cash equivalent increased by 32% to R84 million attributable to special capex (R31 million) and invoices issued at the last quarter of the year due to late approval of authorisation fees (14 million).

• Non current assets increased by 7% to R128 million mainly because of acquisition of equipment for Radio Activity Analysis Laboratory during the year.

• Payables from exchange transactions increased 128% (R3,4 million) and this is attributed to LSC and Detectors delivered and partially paid by the end of the financial year

• Provisions increase by 27% (R2,4 million) for both performance and leave inclusive of staff growth and salary increase.

• Other financial liabilities decreased by 5% which is mainly related to bond repayment iro HQ building

• Employee benefit obligation ( medical) increased by 8% as per actuarial valuation.

• Unspent conditional grant increased by 5% to R31 million net of disbursements during the financial year. The increase is attributed to additional R17 million received during the year for RECC and CT office accommodation.

Statement on Financial Performance

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33

Statement of Financial Performance analytical review - Income

34

Statement of Financial Performance analytical review - Expenses

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Statement of Financial Performance analytical review

• Authorisation fees increased by 16% to R115 million inclusive of annual increase

• and net of movements on client base. • Application fees continued to decrease by 20% to

R358 K during the period• Decrease of 46% on other income is attributed to

positive adjustment of provision• for bad debts.• Deferred income increased by over 3000% as the

special Capex funds was utilised• Interest income increased by 34% to R3,6 million in

line with the increase on cash on• hand in respect of special Capex committed but

not disbursed.• Compensation of employees increased by 17 %

inclusive of cost of living adjustment• and increase on staff complement.• The increase of 33% on interest paid is attributed

to finance cost on bond as a full year• was paid as opposed to 9 months in the prior year.• Goods and services increased by 17% attribute to

increase in adverts both for tenders • and vacant positions, travelling both foreign and

local and lastly repairs and maintenance• relating to office partitioning done during the year.

AUDIT COMMITTEE REPORT

• The Audit and Risk Management Committee (Committee) operates in terms of its charter approved by the board.

• It is a board committee and consists five non-executive directors.

• The Chairperson of the Committee, is a Chartered Accountant and Certified Internal Auditor and he is an independent non-executive director.

• The Committee members consist of members of the Board.

• The committee was constituted to include experts in ICT Assurance, Risk Management, Finance, Audit, Environmental and Nuclear Science.

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BACKGROUND

Audit Committee Activities Map

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RESPONSIBILITIES

• Committee Terms of Reference (TOR), include oversight on:

• financial and sustainability reporting; • internal financial controls; • external audit process; • internal audit process; • risk management; • information technology ; and • Performance management.• The Committee recommends

to the Board for approval matters that were considered in terms of its TOR.

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NNR INTERNAL CONTROL

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Legislation

Policies

Charters

Procedures

Governance Arrangements

Organisational Objectives

Enterprise wide Risk Assessment

Processes Systems People

Performance

FinancialOperation

alComplian

ceEnvironm

ental

Assurance

Management Internal audit External Audit

Audited outcomes of key controls

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Status of drivers of key controls as

audited

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Status of drivers of key controls

LeadershipFinancial and performance management

Governance

Effective leadershipOversight

responsibility

HRmanagementPolicies and procedures

Action plans

ITgovernance

Properrecord keepingProcessing and

reconciling controls

Reporting

Compliance

IT system controls

Risk management

Internal audit

Audit committee

Good Concerning Intervention required

Audit outcome for 2013/14

• The NNR obtained a clean audit report for the reporting period.

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Challenges• Delays in completion of capital

projects owing to– Limited industry suppliers

(locally)– Limited funding mainly due to

Rand volatility– Overstretched project

management capacity • Lack of certainty in government

timeline regarding new nuclear build• Inadequate funding model for the

Regulator - given its expanding responsibilities from Government


Challenges

• Ineffective regulation of radioactive sources (category 3 & 4) still with the department of health• Low staff capacity to regulate aging installations • Ineffective cooperative agreements with other state organs


THANK YOU


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