UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

November 20, 2012

MEMORANDUM TO: R. W. Borchardt

Executive Director for Operations

FROM: Stephen D. Dingbaum /RA/

Assistant Inspector General for Audits

SUBJECT: AUDIT OF NRC’S MANAGEMENT OF THE BASELINE 

SECURITY INSPECTION PROGRAM (OIG-12-A-10)

REFERENCE: DIRECTOR, OFFICE OF NUCLEAR SECURITY AND 

INCIDENT RESPONSE, MEMORANDUM DATED

OCTOBER 24, 2012 

Attached is the Office of the Inspector General’s (OIG) analysis and status of the 

recommendations as discussed in the agency’s response dated October 24, 2012. 

Based on this response, recommendations 1, 2, 3, 4, and 5 are in resolved status. 

Please provide an updated status of the resolved recommendations by July 2, 2013. 

If you have any questions or concerns, please call me at 415-5915 or Beth Serepca, 

Team Leader, at 415-5911.

Attachment: As stated

cc: N. Mamish, OEDO

K. Brock, OEDO

J. Arildsen, OEDO

C. Jaegers, OEDO 
Audit Report

AUDIT OF NRC’S MANAGEMENT OF THE BASELINE SECURITY

INSPECTION PROGRAM

OIG-12-A-10

Status of Recommendations

Recommendation 1: Develop and maintain a centralized database of security 

findings data to be used for evaluating licensee performance 

trends, and communicating this information to NRC staff, 

industry, and appropriate public stakeholders.

Agency Response

Dated October 24, 2012: A centralized database of security findings data is currently 

being developed. Staff is working with the Office of 

Information Services to construct the database and is in the 

process of determining the data needs of the regional offices 

and other NRC headquarters program offices. 

On May 2, 2012, the Assistant Inspector General for Audits 

provided the audit report to the Executive Director for 

Operations. The Office of Nuclear Security and Incident 

Response (NSIR) is on schedule for full implementation of 

the centralized database by October 2013, as stated in the 

audit report. The NSIR point of contact is Shyrl Coker.

OIG Analysis: The proposed corrective action addresses the intent of OIG’s 

recommendation. OIG will close this recommendation when 

OIG staff have reviewed documentation of NSIR’s data 

collection and analysis procedures, and have verified that 

the centralized security database functions as intended in 

accordance with Recommendation 1. 

Status: Resolved.
Audit Report

AUDIT OF NRC’S MANAGEMENT OF THE BASELINE SECURITY

INSPECTION PROGRAM

OIG-12-A-10

Status of Recommendations

Recommendation 2: Formalize and implement a process for maintaining current 

and accurate data within a centralized database.

Agency Response

Dated October 24, 2012: The development of the NSIR office procedure for 

maintaining current and accurate security findings data 

within a centralized database will begin by the end of 

Calendar Year (CY) 2012.

On May 2, 2012, the Assistant Inspector General for Audits 

provided the audit report to the Executive Director for 

Operations. Due to other mission critical tasks of a higher 

priority, NSIR staff plans to extend the time line for issuance 

of the NSIR office procedure from the first quarter of CY 

2013, as stated in the audit report, until the second quarter 

of CY 2013. The NSIR point of contact is Shyrl Coker.

OIG Analysis: The proposed corrective action addresses the intent of OIG’s 

recommendation. OIG will close this recommendation after 

OIG staff have reviewed NSIR’s new office procedure for 

maintaining current and accurate security findings data in a 

centralized database and have verified implementation of

this new guidance.

Status: Resolved.
Audit Report

AUDIT OF NRC’S MANAGEMENT OF THE BASELINE SECURITY

INSPECTION PROGRAM

OIG-12-A-10

Status of Recommendations

Recommendation 3: Formalize and implement a process for ensuring Safeguards 

Information (SGI) findings data is current and accessible for 

use in trending security findings issues.

Agency Response

Dated October 24, 2012: The inclusion of formal instructions in an NSIR office 

procedure, to ensure Safeguards Information findings data is 

current and accessible for trending purposes, was to begin 

by the end of CY 2012. These formal instructions are still 

planned to be incorporated into the same NSIR office 

procedure as being developed and issued in the above 

status update for Recommendation 2.

On May 2, 2012, the Assistant Inspector General for Audits 

provided the audit report to the Executive Director for 

Operations. Due to other mission critical tasks of a higher 

priority, NSIR staff plans to extend the time line for issuance 

of the NSIR office procedure from the first quarter of CY 

2013, as stated in the audit report, until the second quarter 

of CY 2013. The NSIR point of contact is Shyrl Coker.

OIG Analysis: The proposed corrective action addresses the intent of OIG’s 

recommendation. OIG will close this recommendation after 

OIG staff have verified that the NSIR office procedure 

referenced under Recommendation 2 contains instructions 

specific to SGI findings data and have confirmed 

implementation of this new office procedure in accordance 

with Recommendation 2.

Status: Resolved.
Audit Report

AUDIT OF NRC’S MANAGEMENT OF THE BASELINE SECURITY

INSPECTION PROGRAM

OIG-12-A-10

Status of Recommendations

Recommendation 4: Formalize and implement procedures for testing draft 

Significance Determination Process (SDP) tools by staff to 

determine how draft tools would screen past violations 

and/or hypothetical security violations.

Agency Response

Dated October 24, 2012: The NSIR office procedure to implement the practice of 

testing draft SDP tools is being developed by staff. 

On May 2, 2012, the Assistant Inspector General for Audits 

provided the audit report to the Executive Director for 

Operations. NSIR staff is on schedule for issuance of this 

office procedure by the first quarter of CY 2013, as stated in 

the audit report. The NSIR point of contact is F. Paul 

Peduzzi.

OIG Analysis: The proposed corrective action addresses the intent of OIG’s 

recommendation. OIG will close this recommendation after 

OIG staff have reviewed NSIR’s office procedure for testing 

draft SDP tools and verified implementation of this new 

guidance.

Status: Resolved.
Audit Report

AUDIT OF NRC’S MANAGEMENT OF THE BASELINE SECURITY

INSPECTION PROGRAM

OIG-12-A-10

Status of Recommendations

Recommendation 5: Formalize and implement a process for performing periodic 

review of existing security SDP tools to check for 

consistency of application and results.

Agency Response

Dated October 24, 2012: Inspection Manual Chapter (IMC) 0609, Appendix E, 

“Significance Determination Process,” is currently under 

revision to incorporate language directing staff to perform an 

annual audit of the security SDP and associated tools in 

accordance with IMC 0307, Appendix A. 

On May 2, 2012, the Assistant Inspector General for Audits 

provided the audit report to the Executive Director for 

Operations. NSIR staff is on schedule to revise IMC 0609, 

Appendix E, by the end of CY 2012, as stated in the audit 

report. The NSIR point of contact is F. Paul Peduzzi.

OIG Analysis: The proposed corrective action addresses the intent of OIG’s 

recommendation. OIG will close this recommendation after 

OIG staff have reviewed the updated version of IMC 0609, 

Appendix E, to ensure that it aligns with IMC 0307, Appendix 

A, and have verified that a periodic review of security SDP 

tools are performed in accordance with this updated

guidance.

Status: Resolved.