UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

October 27, 2016

MEMORANDUM TO: Victor M. McCree

Executive Director for Operations

FROM: Steven E. Zane /RA/

Acting Assistant Inspector General for Audits

SUBJECT: STATUS OF RECOMMENDATIONS: AUDIT OF NRC’S 

REACTOR OVERSIGHT PROCESS: REACTOR SAFETY 

BASELINE INSPECTION PROCEDURES (OIG-16-A-12)

REFERENCE: OFFICE OF NUCLEAR REACTOR REGULATION 

DIRECTOR, MEMORANDUM DATED OCTOBER 14, 2016

Attached is the Office of the Inspector General’s analysis and status of recommendations 

as discussed in the agency’s response dated October 14, 2016. Based on this response,

recommendations 1 and 2 remain resolved. Please provide a status update for the

resolved recommendations by January 27, 2017. 

If you have questions or concerns, please call me at (301) 415-5915 or Paul Rades, 

Team Leader, at (301) 415-6228.

Attachment: As stated

cc: R. Lewis, OEDO

H. Rasouli,OEDO

J. Jolicouer, OEDO

J. Bowen, OEDO

EDO_ACS_Distribution
Audit Report

AUDIT OF NRC’S REACTOR OVERSIGHT PROCESS: REACTOR SAFETY 

BASELINE INSPECTION PROCEDURES

OIG-16-A-12

Status of Recommendations

Recommendation 1: Develop and implement controls to ensure mandatory and 

discretionary language used in inspection procedures is 

clear and consistent. 

Agency Response 

Dated October 14, 2016: Reviews of the Reactor Oversight Process Baseline 

Inspection Procedures, conducted in accordance with IMC0307(b), have been completed. The procedure leads are 

revising associated procedures in response to the review 

recommendations and to ensure mandatory and 

discretionary language used is clear and consistent. To 

date, two procedures have been revised and issued to 

ensure clarified mandatory and discretionary language used 

is clear and consistent. The remaining procedures are in the 

process of revision and/or receiving regional review and 

comment. Recent regional and HQ resource reductions and 

redirection of staff effort to higher priority work precludes 

near term completion of the procedure revisions and 

warrants a change from December 31, 2016, to December 

31, 2017, for expected completion. The new completion 

date of December 31, 2017, is to coincide with the beginning 

of the next annual inspection cycle. Inspection Manual 

Chapter 0040, “Preparing, Revising and Issuing Documents 

for the NRC Inspection Manual,” has been reviewed and 

revisions have been drafted to strengthen relevant 

provisions and controls associated with establishing 

mandatory and discretionary inspection language in 

inspection documents. The revised draft IMC-0040 is 

currently in management review. The final revision of 

IMC-0040 is expected to be issued by December 31, 2016.

OIG Analysis: The actions proposed by the agency meet the intent of the 

recommendation. This recommendation will be closed after 

OIG reviews the developed and implemented controls to 
Audit Report

AUDIT OF NRC’S REACTOR OVERSIGHT PROCESS: REACTOR SAFETY 

BASELINE INSPECTION PROCEDURES

OIG-16-A-12

Status of Recommendations

Recommendation 1(cont.)

ensure mandatory and discretionary language used in 

inspection procedures is clear and consistent.

Status: Resolved. 
Audit Report

AUDIT OF NRC’S REACTOR OVERSIGHT PROCESS: REACTOR SAFETY 

BASELINE INSPECTION PROCEDURES

OIG-16-A-12

Status of Recommendations

Recommendation 2: Notify staff and managers of controls developed to ensure 

that mandatory and discretionary language used in 

inspection procedures is clear and consistent. 

Agency Response 

Dated October 14, 2016: The draft revision to IMC-0040 is currently in review. Once 

the IMC-0040 revision has been issued, staff notification of 

the revision will be promulgated via memorandum from the

Director, Division of Inspection and Regional Support, Office 

of Nuclear Reactor Regulation. Issuance of this memo is 

expected to be concurrent with the issuance of the revised 

IMC-0040, therefore this item is expected to be completed 

December 31, 2016.

OIG Analysis: The actions proposed by the agency meet the intent of the 

recommendation. This recommendation will be closed after 

OIG reviews efforts to notify staff and managers of controls 

developed to ensure mandatory and discretionary language 

used in inspection procedures is clear and consistent.

Status: Resolved.