National Nuclear Regulator (NNR) Annual Report 2014

1. National Nuclear Regulator (NNR)Annual Report 2014 Presentation to Parliamentary Portfolio Committee For the protection of persons, property and the environment against nuclear damage

2. The Pillars VISION To be an independent world-class regulatory authority on nuclear safety. MISSION To provide and maintain an effective and efficient national regulatory framework for the protection of persons, property and the environment against nuclear damage.

3. 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.

4. Key Functions

5. Annual perfoRmance summary

6. 2013/14 PERFORMANCE

7. 2013/14 PERFORMANCE

8. 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.

9. 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

10. 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.

11. Overview of the Annual Report – Key Highlights 3rdrevision of the post-Fukushima KoebergNuclear Power Station (KNPS): • It is a safetyreassessment 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.

12. Overview of the Annual Report – Key Highlights SAFARI-1 Research Reactor: • Is expectedto 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.

13. Overview of the Annual Report – Key Highlights 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)

14. 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.

15. 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.

16. 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.

17. TECHNICAL PERFORMANCE

18. Nuclear authorisations active for period under review

19. Occupational exposure to radiation at KNPS

20. Special case mines

21. Update on Key Capital projects

22. Human resourcesreport

23. 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. 

24. Updated figures: Equity Status

25. Annual financial statements

26. Statement of Financial Position

27. Statement of Financial Position analytical review

28. Statement of Financial Position analytical review

29. Statement of Financial Position analytical review

30. Statement of Financial Position analytical review

31. 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.

32. Statement on Financial Performance

33. Statement of Financial Performance analytical review - Income

34. Statement of Financial Performance analytical review - Expenses

35. 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.

36. Audit committee report

37. 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 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. NNR Annual Report 2014

38. Audit Committee Activities Map

39. 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.

40. NNR INTERNAL CONTROL Governance Arrangements Legislation Policies Charters Procedures Organisational Objectives Enterprise wide Risk Assessment Processes Systems People Performance Financial Operational Compliance Environmental Assurance Management Internal audit External Audit

41. Audited outcomes of key controls

42. Status of drivers of key controls as audited

43. Audit outcome for 2013/14 • The NNR obtained a clean audit report for the reporting period.

44. 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 NNR Annual Report 2014

45. 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 NNR Annual Report 2014

46. Thank you NNR Annual Report 2014