Audit of the U.S. Nuclear Regulatory Commission’s Security Oversight of Category 1 and Category 2 Quantities of Radioactive Material

Agency Response Dated April 17, 2025: NMSS staff completed the review of the informal guidance (i.e., the memo “Retirement of the Materials Security Issues Forum Process,” issued January 5, 2018, Agencywide Documents and Management System (ADAMS) Accession No. ML17318A056 (non-public)) to determine if revisions are needed to capture current enforcement actions. The informal guidance has been incorporated into the draft Section 6.12, “Materials Security,” of the Enforcement Policy. The informal guidance remains an effective tool to support identifying the security significance of violations of Part 37 requirements and has not required updating since the memo was issued. This recommendation will remain open until the OE (Office of Enforcement) updates and provides for public comment the draft Section 6.12, “Materials Security,” of the Enforcement Policy. Incorporating the informal guidance in the Enforcement Policy ensures a routine evaluation is provided for enforcement examples. Target Completion Date: FY 2025, Q4<br />
OIG Analysis: The agency’s response continues to meet the intent of the recommendation. This recommendation will be closed when the OIG reviews the finalized Section 6.12, “Materials Security,” in the updated Enforcement Policy.<br />
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Agency Response Dated October 22, 2024: NMSS staff continues to review the informal guidance (i.e., memo issued January 5, 2018, Agencywide Documents and Management System (ADAMS) Accession No. ML17318A056 [non-public] to determine if revisions are needed to capture current enforcement actions. The informal guidance remains an effective tool to support identifying the security significance of violations of Part 37 requirements and has not required updating since the memo was issued. This recommendation will remain open until the OE (Office of Enforcement) updates and provides for public comment the draft Section 6.12, “Materials Security,” of the Enforcement Policy.<br />
Target Completion Date: March 24, 2025 <br />
OIG Analysis: The agency’s proposed actions meet the recommendation’s intent. The OIG will close this recommendation when it verifies updates were made to the Enforcement Policy.<br />
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Agency Response NMSS staff will update the informal guidance (i.e., NMSS Dated April 24, 2024: memo issued January 5, 2018, Agencywide Documents Access and Management System (ADAMS) Accession No. ML17318A056 (non-public), as needed to capture current enforcement actions. The informal guidance has been an effective tool to support identifying the security significance of violations of 10 CFR Part 37 requirements and has not required updating since the memo was issued. This recommendation will remain open until the Office of<br />
Enforcement (OE) updates and provides for public comment the draft Section 6.12, “Materials Security,” of the Enforcement Policy.<br />
Target Completion Date: March 24, 2025<br />
OIG Analysis: The OIG reviewed the agency’s proposed actions, and they meet the intent of the recommendation. The OIG will close this recommendation when it verifies the updates to the Enforcement Policy.<br />
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Agency Response Pending the update of the Enforcement Policy and Dated April 24, 2024: Enforcement Manual, ensure the periodically updated NMSS supplemental guidance is readily accessible and is available to all staff responsible for Part 37 enforcement activities. NRC staff uses the informal guidance in the nonpublic NMSS memo issued January 5, 2018, to support determining the severity level of Part 37 violations. A link to the memo has been placed in the Material Security Toolbox to ensure it is readily accessible and available to NRC staff responsible for Part 37 inspection and enforcement activities. NMSS/Division of Materials Safety, Security, State, and Tribal Programs (MSST) staff provides access to the protected, non-public information in the Material Security Toolbox. The NMSS memo was also placed in the Repository of Communication with Regions hosted in the MSST/Materials Safety Licensing Branch SharePoint site.<br />
Target Completion Date: The NRC staff recommends closure of this item.<br />
OIG Analysis: The OIG reviewed the memo’s location on the NMSS SharePoint site and the Materials Security Toolbox. We understand that this is a temporary measure to make Part 37 information more available to relevant staff until to the Enforcement Policy and Enforcement Manual revisions are completed. This recommendation is now closed.<br />
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Agency Response Dated April 17, 2025: NMSS (Nuclear Materials Safety and Safeguards) staff is collaborating with OE to update the Enforcement Policy and Enforcement Manual to specifically reference Part 37 requirements. OE has coordinated with the cognizant Offices (NMSS, Office of Nuclear Reactor Regulation, Regions, and Office of the General Counsel) to develop an update to Section 6.12, “Materials Security,” of the Enforcement Policy and incorporated severity level examples specific to Part 37 violations for Commission approval. Agency review and concurrence of this draft version of the policy is currently underway. If necessary, NMSS staff will update the informal guidance and link the latest revision to the Material Security Toolbox and Repository of Communication with Regions hosted in the NMSS Division of Materials, Safety, Security, State, and Tribal Programs/Materials Safety Licensing Branch SharePoint site. This will ensure the latest revision of the informal guidance is readily accessible and available to NRC staff responsible for Part 37 inspection and enforcement activities for their consideration when determining the severity level of violations. This recommendation will remain open until OE updates and provides to the OEDO (Office of the Executive Director) for approval the draft Section 6.12, “Materials Security,” of the Enforcement Policy. Target Completion Date: FY 2025, Q4<br />
OIG Analysis: The agency’s actions continue to meet the intent of the recommendation. This recommendation will be closed when the OIG reviews the finalized Section 6.12, “Materials Security,” of the Enforcement Policy. <br />
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ADAMS Accession No: ML24319A048 Agency Response Dated October 22, 2024: NMSS staff is collaborating with OE to update the Enforcement Policy and Enforcement Manual to specifically reference Part 37 requirements. OE is coordinating with the cognizant Offices (NMSS, Office of Nuclear Reactor Regulation, Regions, and Office of the General Counsel) to develop an update to Section 6.12, “Materials Security,” of the Enforcement Policy to incorporate severity level examples specific to Part 37 violations for Commission approval. If necessary, NMSS staff will update the informal<br />
guidance and link the latest revision to the Material Security Toolbox and Repository of Communication with Regions<br />
hosted in the NMSS Division of Materials, Safety, Security, State, and Tribal Programs/Materials Safety Licensing<br />
Branch SharePoint site. This will ensure the latest revision of the informal guidance is readily accessible and available to<br />
NRC staff responsible for Part 37 inspection and enforcement activities for their consideration when determining the<br />
severity level of violations. This recommendation will remain open until OE updates and provides to the OEDO (Office of the Executive Director) for approval the draft Section 6.12, “Materials Security,” of the Enforcement Policy.<br />
Target Completion Date: FY 2025, Q4 <br />
OIG Analysis: The agency’s proposed actions meet the recommendation’s intent. This recommendation will be closed upon review of the agency’s proposed updates to the Enforcement Policy and Manual, to include OE’s updates to Section 6.12 in the Policy.<br />
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Agency Response Update the Enforcement Policy and Enforcement Manual to Dated April 24, 2024: specifically reference Title 10 C.F.R. Part 37 requirements; include in these updated documents any necessary references to the newly updated informal guidance; and disseminate the updated documents for staff consideration when determining the severity level of Part 37 violations. OE will coordinate with the cognizant Offices (NMSS, Regions, Office of the General Counsel) to develop an update to Section 6.12, “Materials Security,” of the Enforcement Policy to incorporate severity level examples specific to 10 CFR Part 37 violations for Commission approval. This recommendation will remain open until OE updates and provides to the OEDO for approval the draft Section 6.12, “Materials Security,” of the Enforcement Policy. Since Enforcement Policy revisions involve considerable internal deliberation as well as external stakeholder input (e.g., public comment period, Commission paper, and Federal Register Notice), the target completion date takes into account all necessary steps in this process.<br />
Target Completion Date: FY 2025, Q4<br />
OIG Analysis: The OIG has reviewed the proposed actions, and they meet the intent of the recommendation. This recommendation will be closed upon review of the agency’s proposed updates to the Enforcement Policy and Manual, to include OE’s updates to Section 6.12 in the Policy. This recommendation is open and resolved.<br />
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