National Nuclear Regulator (NNR)
Annual Report 2014
Presentation to Parliamentary
Portfolio Committee
For the protection of persons, property
and the environment against nuclear
damage
The Pillars
VISION
To be an independent
authority on nuclear safety.
world-class
regulatory
MISSION
To provide and maintain an effective and efficient
national regulatory framework for the protection of
persons, property and the environment against
nuclear damage.
The Values
CORPORATE VALUES
PROFESSIONALISM
We hold ourselves accountable to the highest
standards of professionalism in everything that we do.
INTEGRITY
We demonstrate integrity and ethical conduct in all
that we do.
VALUING PEOPLE
We demonstrate that we value our people in all that
we do.
EXCELLENCE
We strive for excellence in all that we do.
Key Functions
1.
Grant or amend nuclear authorisations;
2.
Employ assets and deploy resources (hire, purchase,
acquire);
Collaborate with other institutions for the collection and
dissemination of scientific and technical information
regarding nuclear energy;
Collaborate with other institutions regarding provision of
instruction for or training of persons required by the NNR;
3.
4.
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.
9.
Act as national competent Authority in connection with
International Atomic Energy Agency’s Regulations;
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
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
8
workers, respectively.
Overview of the Annual
Report – Key Highlights
Compliance 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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9
Overview of the Annual
Report – Key Highlights
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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10
Overview of the Annual
Report – Key Highlights
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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11
Overview of the Annual
Report – Key Highlights
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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12
Overview of the Annual
Report – Key Highlights
Engagement with bilateral
partners:
and multilateral
• 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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13
Overview of the Annual
Report – Key Highlights
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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14
Overview of the Annual
Report – Key Highlights
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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15
Overview of the Annual
Report – Key Highlights
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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16
TECHNICAL
PERFORMANCE
Nuclear authorisations active
for period under review
Type
Nuclear Vehicle
Number
2
License
Nuclear
42
Installation
License
Certificates of
147
Registration
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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19
Special case mines
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20
Update on Key
Capital projects
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.
awaiting report
Emergency Control Centre
Slow start but now
underway
Refurbishment of the Cape Town
site Office
Inception stages
NNR Radio-Analytical Laboratory
Centurion – complete
Cape 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 Programme9.6GW
In progress
2016-03-23
NNR
21
HUMAN RESOURCES
REPORT
Reported figures:
Equity Status
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.
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23
Updated figures:
Equity Status
AM CM
IM
WM
AF
CF
IF
WF
FM
FF
TOT
AL
Top
Management
0
0
0
0
0
0
0
0
0
0
0
1
1
0
0
1
0
0
0
0
0
3
24
6
4
11
17
0
2
2
3
2
71
10
0
0
0
17
1
0
5
0
0
33
1
0
0
0
2
0
0
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
36
7
4
11
37
1
2
7
3
2
110
(Paterson F)
Senior
Management
(Paterson E)
Professional
Qualified
(Paterson D)
Skilled
(Paterson C)
Semi-Skilled
(Paterson B)
Unskilled
(Paterson A)
Total
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24
ANNUAL FINANCIAL
STATEMENTS
Statement of Financial
Position
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26
Statement of Financial
Position analytical review
Non Current Assets
140,000,000
128,102,060
119,996,876
120,000,000
Amount in Rands
100,000,000
80,000,000
Property, plant and equipment
Intangible assets
60,000,000
40,000,000
20,831,914
20,000,000
2,298,400
2012
1,986,254
2013
1,977,360
2014
Year
27
Statement of Financial Position analytical
review
Current Assets
90,000,000
83,757,032
80,000,000
70,000,000
63,244,266
Amount in Rands
60,000,000
50,000,000
Receivables from
exchange transaction
40,000,000
36,615,133
Cash and Cash
Equivalents
30,369,503
30,000,000
20,000,000
10,000,000
9,551,679
9,121,750
2012
2013
2014
Year
28
Statement of Financial Position analytical
review
Non Current Liabilities
80,000,000
72,410,711
70,000,000
65,129,770
60,000,000
Amount in Rands
50,000,000
Other financial liability
40,000,000
Operating lease liability
Employee benefit obligation
30,000,000
31,057,374
29,557,320
Unspent conditional grants
20,000,000
18,000,000
13,055,654
12,204,845
11,265,549
10,000,000
-
2012
2013
2,111
2014
Year
29
Statement of Financial Position analytical
review
Current Liabilities
12,000,000
11,236,275
10,000,000
8,839,448
Amount in Rands
8,000,000
6,989,505
6,630,793
6,083,629
6,000,000
Other current liabilities
Payables from exchange
transaction
Provision
5,025,440
Provision
4,000,000
2,664,556
2,000,000
-
2012
2013
2014
Year
30
Statement of Financial Position analytical
review
• 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.
31
Statement on Financial
Performance
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32
Statement of Financial Performance
analytical review - Income
140,000,000
120,000,000
115,411,261
100,000,000
99,067,659
Amount in Rands
88,479,789
80,000,000
Authorisation Fee
Government grant
60,000,000
40,000,000
35,430,000
31,012,000
30,912,000
20,000,000
2012
2013
2014
Year
33
Statement of Financial Performance
analytical review - Expenses
100,000,000
90,000,000
87,788,216
82,267,765
80,000,000
75,106,423
Amount in Rands
70,000,000
60,000,000
Compensation of employees
50,000,000
Depreciation and amortisation
Goods and services
40,000,000
38,696,681
36,301,576
31,095,578
30,000,000
20,000,000
10,000,000
9,899,674
9,153,676
5,046,235
2012
2013
2014
Year
34
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.
35
AUDIT COMMITTEE
REPORT
BACKGROUND
• 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 nonexecutive directors.
• The Chairperson of the Committee, is a
Chartered Accountant and Certified Internal
Auditor and he is an independent nonexecutive 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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NNR Annual Report 2014
37
Audit Committee Activities
Map
• External Audit
• Internal Audit
• Special Audits
• Finance
• Sustainability
• Performance
/IT
2016-03-23
• Compliance
Program
• Identification
• Reporting
Assurance
Complianc
e
Performance
Risk
• Planning
• Identification
• Response
38
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
Governance
Arrangements
Organisational Objectives
Legislation
Policies
Charters
Enterprise wide Risk Assessment
Processes
Systems
Procedures
People
Performance
Financial
Operation
al
Management
Complian
ce
Internal audit
Environm
ental
External Audit
Assurance
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Audited outcomes of
key controls
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Status of drivers of key
controls as audited
Status of drivers of key controls
Leadership
Effective
leadership
Oversight
responsibility
HR
management
Policies and
procedures
Action
plans
IT
governance
Good
2016-03-23
Financial and
performance
management
Proper
record keeping
Processing and
reconciling controls
Reporting
Governance
Risk
management
Internal audit
Audit committee
Compliance
IT
system controls
Concerning
Intervention required
42
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
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NNR Annual Report 2014
44
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
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45
THANK YOU
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NNR Annual Report 2014
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