Section III - Supplementary Information
The Canadian Nuclear Safety Commission - Operating
Context
The CNSC Strategic Framework
The CNSC Strategic Framework uses this logic model for
planning, for focusing activities and programs, for evaluating the contribution
of initiatives to the CNSC outcomes and for illustrating the role of the CNSC as
an agency committed to achieving results for Canadians.
Click on image to enlarge
Governance at the CNSC
The Commission is an independent, quasi-judicial administrative tribunal and
court of record, and is separate from CNSC staff. Both the staff organization
and the Commission operate in a transparent manner. The CNSC is known as one of
the most open and transparent nuclear regulators in the world.
The CNSC’s governance includes a clear vision with articulated outcomes, a
focused mission and mandate, strong leadership as well as strong and
professional corporate services providing information and internal controls that
enable good stewardship of resources.
Integrated planning and performance management is an important aspect of the
CNSC’s governance. It promotes vigorous and responsible management of
resources with an emphasis on results. The CNSC defines desired results,
delivers regulatory programs and activities, evaluates performance and makes
necessary adjustments. The CNSC conducts mid-year and year-end corporate reviews
of results achieved against plans and reallocates resources to the highest
priorities. In addition, regulatory activities are reviewed and monitored
quarterly.
Performance agreements that are specific, results-based, and clearly identify
accountability continued to be in place in 2004-2005 for the top two levels of
management. The next level of management will prepare 2005-2006 performance
contracts. Performance agreements include Modern Management, Workforce
Sustainability as well as commitments under the business planning and budgeting
process.
A high level of oversight and scrutiny is provided by an independent internal
audit program, complemented by regular audits by the Office of the Auditor
General (financial and performance) and other officers of Parliament including
the Canadian Human Rights Commission (employer obligations under the Employment
Equity Act ) and the Privacy Commissioner of Canada ( Privacy Act ).
The CNSC also abides by a “Conflict of Interest and Post-Employment Code for
the CNSC”, modeled on the Values and Ethics Code for the Public Service.
Organizational Information
The CNSC operates as two separate organizations as follows:
- a Commission of up to seven members; and
- a staff organization of approximately 530 people.
i. Commission
The Nuclear Safety and Control Act (NSCA) provides for the
appointment of up to seven Commission members by the Governor in Council.
Members serve for a term not exceeding five years. One member of the Commission
is designated as the President of the Commission. This position is held by Linda
J. Keen.
Supported by the Secretariat, the Commission functions as an independent,
quasi-judicial administrative tribunal and court of record. It sets regulatory
policy direction on matters relating to health, safety, security and
environmental issues affecting the Canadian nuclear industry. It makes
independent decisions on the licensing of nuclear-related activities in Canada,
and establishes legally-binding regulations. The Commission takes into account
the views, concerns and opinions of interested parties and intervenors. The
Commission delegates to Designated Officers the authority to render licensing
decisions for certain categories of nuclear facilities and activities in
accordance with the requirements of the NSCA and its associated regulations. The
Commission retains for its own consideration licensing matters related to major
nuclear facilities, for which it holds public hearings, in accordance with the
CNSC Rules of Procedure .
ii. CNSC Staff
CNSC staff are located at a headquarters in Ottawa, site offices at each of
the five nuclear power plants in Canada, and five regional offices. CNSC staff
are located at each nuclear power plant in Canada to assess performance against
regulations and specific conditions of operating licences. Regional offices
conduct compliance activities for nuclear substances, transportation, radiation
devices and equipment containing nuclear substances. They also respond to
unusual events involving nuclear substances.
CNSC staff support the Commission by:
- developing regulatory frameworks;
- carrying out licensing, certification, compliance inspections and
enforcement actions;
- coordinating the CNSC’s international undertakings;
- developing CNSC-wide programs in support of regulatory effectiveness;
- maintaining relations with stakeholders; and
- providing administrative support.
In addition, staff prepare recommendations on licensing decisions, present
them to the Commission for consideration during public hearings and subsequently
administer the Commission’s decisions. Where so designated, staff also render
licensing decisions.
Organizational Chart
Click on image to enlarge
Financial Summary Overview
The following summary tables represent an overview of the CNSC’s financial
performance for 2004-2005. Financial information presented in most tables
includes four figures:
- “Main Estimates” represent the reference level in CNSC’s 2005-2006
Main Estimates
- “Planned Spending” represent the CNSC’s appropriations on April 1,
2004 plus any anticipated funding adjustment;
- “Total Authorities” includes planned spending plus additional spending
approved by Parliament during the fiscal year; and
- “Actual Spending” represents the actual expenditures incurred by the
CNSC for the fiscal year and publish in the Public Accounts of Canada for
2004-2005.
In 2004-2005, the CNSC’s planned spending of $70.6 million consisted of an
operating budget of $70.0 million (includes statutory employee benefits of $8.4
million) and a transfer payment budget (Grants and Contributions) of $0.6
million. The transfer payments budget consisted of a $0.6 million contribution
to the IAEA for the Canadian Safeguards Support Program and several smaller
grants and contributions to other international and non-profit organizations.
In addition to the $70.6 million planned spending, the CNSC received
additional supplementary funding of $5.0 million, for a total authority of $75.6
million. The supplementary funding includes the Generator ($2.0 million); the
Operating Budget Carry Forward ($2.6 million); Cost Recovery Phase-In and other
adjustments ($0.4 million).
In 2004-2005, the CNSC recovered $48.8 million in non-respendable revenues,
which represents approximately 60% of the $80.8 million of full cost of
expenditures. Full cost includes services without charge, and all other
expenditures as shown within the Statement of
Operations of the Audited Financial Statements.
CNSC Tables
Table 1: Comparison of Planned Spending and Actual
(incl. FTE)
Table 2: Use of Resources by Business Lines (or Program
Activities)
Table 3: Voted and Statutory Items
Table 4: Net Cost of Department
Table 5: Contingent Liabilities
Table 6: Sources of Non-Respendable and Respendable Revenue
Table 7-A: 2004-05 User Fee Reporting Template – User
Fees Act
Table 7-B: 2004–05 User Fee Reporting Template –
Policy on Service Standards for External Fees
Table 8: Major Regulatory Initiatives
Table 9: Financial Statements of Departmental Corporations
and Agents of Parliament
Table 10: Response to Parliamentary Committees, Audits and
Evaluations for FY2004–2005
Table 11: Travel Policies
Table 1: Comparison of Planned Spending and Actual
(incl. FTE)
Program Activity
($ millions) |
2002-03 Actual |
2003-04 Actual |
2004-2005 |
Main Esti-
mates |
Planned Spending |
Total Author-
ities |
Actual Spending |
Nuclear Regulation |
63.8 |
67.6 |
65.4 |
70.6 |
75.6 |
73.2 |
Total |
63.8 |
67.6 |
65.4 |
70.6 |
75.6 |
73.2 |
|
Total |
63.8 |
67.6 |
65.4 |
70.6 |
75.6 |
73.2 |
Less:
Non-Respendable revenue |
(38.2) |
(42.1) |
- |
(50.2) |
- |
(48.8) |
Plus: Cost of services received without charge |
7.0 |
7.8 |
- |
7.4 |
- |
8.1 |
Net cost of Department |
32.6 |
33.3 |
- |
27.8 |
- |
32.5 |
|
Full Time Equivalents |
- |
508.3 |
504.2 |
530.2 |
530.2 |
516.8 |
Table 2: Use of Resources by Business Lines (or
Program Activities)
2004-2005 |
Program Activity
($ millions) |
Budgetary |
Plus:
Non-
Budget-
ary |
Total |
Opera-
ting
(inc. EBP) |
Capital |
Grants
and Contri-butions |
Total:
Gross Budget-
ary Expendi-
tures |
Less: Respend-
able Revenue |
Total:
Non-Budgetary Expendi-
tures |
Loans, invest-
ments
and Ad-
vances |
Nuclear Regulation |
|
|
|
|
|
|
|
|
Main Estimates |
64.8 |
- |
0.6 |
65.4 |
- |
65.4 |
- |
65.4 |
Planned Spending |
70.0 |
- |
0.6 |
70.6 |
- |
70.6 |
- |
70.6 |
Total Authorities |
75.0 |
- |
0.6 |
75.6 |
- |
75.6 |
- |
75.6 |
Actual Spending |
73.0 |
- |
0.2 |
73.2 |
- |
73.2 |
- |
73.2 |
Table 3: Voted and Statutory Items
Vote or Statutory Item
($ millions) |
Truncated Vote or Statutory Wording |
2004-2005 |
Main Estimates |
Planned Spending |
Total Authorities |
Actual Spending |
20 |
Operating expenditures |
56.8 |
61.5 |
67.4 |
65.4 |
|
Grants and Contributions |
0.6 |
0.6 |
0.6 |
0.2 |
(S) |
Contributions to employee benefit plans |
8.0 |
8.5 |
7.6 |
7.6 |
|
Total |
65.4 |
70.6 |
75.6 |
73.2 |
Table 4: Net Cost of Department
($ millions) |
2004-2005 |
Total Actual Spending |
73.2 |
Plus: Services Received without Charge |
|
Accommodation provided by Public Works and Government Services
Canada (PWGSC) |
4.5 |
Contributions covering employers' share of employees' insurance
premiums and expenditures paid by TBS (excluding revolving funds) |
3.4 |
Services rendered by Justice Canada, Office of Auditor General of
Canada, and other |
0.2 |
Less: Non-respendable Revenue |
(48.8) |
2004-2005 Net cost of Department |
32.5 |
Table 5: Contingent Liabilities
Contingent Liabilities |
($ millions) |
March 31, 2004 |
March 31, 2005 |
Claims, Pending and Threatened Litigation |
55.2 |
55.2 |
Total |
55.2 |
55.2 |
Claims have been made against the CNSC in the normal course of operations.
Legal proceedings for claims totaling approximately $55,250,000 were still
pending at March 31, 2005. The final outcome is presently not determinable and,
accordingly, no provision has been recorded in the accounts for these contingent
liabilities. Settlements, if any, resulting from the resolution of these claims
will be accounted for in the year in which the liability is considered likely
and the cost can be reasonably estimated.
Table 6: Sources of Non-Respendable and Respendable
Revenue
Non-Respendable Revenue
Program Activity
($ millions) |
Actual 2002-03 |
Actual 2003-04 |
2004-2005 |
Main Estimates |
Planned Revenue |
Total Authorities |
Actual Spending |
Nuclear Regulation |
|
|
|
|
|
|
Licence Fees |
37.5 |
|
|
|
|
|
- Regulatory Plan Activity Fees |
|
34.7 |
- |
40.9 |
- |
40.6 |
- Formula Fees |
|
2.9 |
- |
4.1 |
- |
3.4 |
- Fixed Fees |
|
0.4 |
- |
0.1 |
- |
0.3 |
Special Projects |
0.7 |
4.1 |
- |
5.1 |
- |
4.5 |
Total Non-Respendable Revenue |
38.2 |
42.1 |
- |
50.2 |
- |
48.8 |
Respendable Revenue - Not applicable
Table 7-A: 2004-05 User Fee Reporting Template -
User Fees Act
Click on image to enlarge
Table 7-B: 2004-2005 User Fee Reporting Template -
Policy on Service Standards for External Fees
A. External Fee |
Service
Standard |
Performance
Result |
Stakeholder Consultation |
Regulatory Service Fee; Canadian Nuclear Safety
Commission Cost Recovery Fees Regulations , July 2003 |
It is very important to note that as an independent
regulator, it is inappropriate for the relationship between licensees and
the CNSC to be considered a service. The CNSC has developed performance
standards for its relationships with stakeholders, in place of service
standards. |
See Performance Standards
section
|
The CNSC has established the Cost Recovery Advisory Group
(CRAG), consisting of representatives from different industry sectors, as
a forum for ongoing communication and consultation with stakeholders or
licensees regarding CNSC’s regulatory activities and resulting fees.
There is at least one (1) CRAG meeting held annually. |
B. Other Information: None |
Table 8: Major Regulatory Initiatives
Regulations |
Expected Results |
Performance measurement criteria |
Results achieved |
Amendments to the Nuclear Security Regulations (NSR).
Amendments to the NSR will:
► enact on a permanent basis the increased security requirements
for certain nuclear facilities imposed in the Fall 2001 through CNSC Order
Number 01-01 and Designated Officer Order Number 01-D1;
and
► bring the CNSC nuclear security regulations in line with
international security practices.
|
► High levels of compliance with international
practices regarding the physical protection of nuclear facilities, as
specified in measures set out in amendments to the Nuclear Security
Regulations . |
► Frequency and importance of deficiencies and
instances of non-compliance with regulatory requirements regarding nuclear
security, as determined through audits and other inspections. |
Comments on the proposed amendments to the Nuclear
Security Regulations were reviewed in 2004-05, and significant
revisions made in response to those comments. Revised proposed amendments
will be published again for stakeholder comment in the Canada Gazette ,
Part 1 in 2005. |
Table 9: Financial Statements of Departmental
Corporations and Agents of Parliament
See Audited Financial Statements .
Table 10: Response to Parliamentary Committees,
Audits and Evaluations for FY 2004-2005
Response to Parliamentary Committees |
The CNSC was not asked to respond to parliamentary committees this
fiscal year. |
Response to the Auditor General |
February 2005 Report of the Office of the Auditor General
Chapter 6: Canadian Nuclear Safety Commission - Power Reactor
Regulation
The Auditor General’s Report reads, “The Canadian Nuclear Safety
Commission has responded to our observations and informs us that it is
continuing with the improvements it began in response to the December 2000
recommendations. Overall, the CNSC has made satisfactory progress in
response to our recommendations from our December 2000 audit of power
reactor regulation.”
Among the improvements noted by the OAG are:
- Progress in implementing a consistent approach to compliance and
enforcement
- The development of a new scale for rating the performance of power
reactor licensees and that the CNSC has committed to improving the
consistency of ratings, and communicating their basis more effectively
to licensees, along with measures by which licensees can improve their
ratings
- The issuance of key regulatory documents and the implementation of a
process for prioritizing the development of regulatory policies,
standards and guides
- Progress in addressing the human resources issues of capacity,
recruitment and retention of capable staff, and clarification of roles
and responsibilities
- Clarification of the roles of President and Chief Executive Officer
The OAG also notes that progress has been slower than planned in the
development of a formal, well-articulated risk-management approach to
power reactor regulation. However, it noted that such an approach has been
adopted for the regulation of nuclear substances and uranium mining and
processing. Progress in implementing a more systematic risk-informed
approach for the regulation of power reactors is ongoing and continues as
part of the Power Reactor Regulation Improvement Program, announced in
early 2004.
The CNSC recognizes that there is room for further improvement and
remains strongly committed to ongoing improvements in all areas of
regulation within the CNSC’s mandate. The CNSC’s plan is contained in
its Report on Plans and Priorities and is reported to Parliament in its
Annual Report, at http://www.nuclearsafety.gc.ca
.
|
External Audits or Evaluations |
None |
Internal Audits or Evaluations |
Evaluation of CBRN Training Program for First Responders
Evaluation of CNSC-IAEA Contribution Agreement in support of the
Canadian Safeguards Support Program |
Table 11: Travel Policies
Comparison to the TBS Special Travel Authorities |
CNSC Travel Policy (Chapter 12):
|
Authority: Nuclear Safety & Control Act
|
Coverage: Applies to staff at the Executive level
|
Principal difference(s) in Policy Provisions:
- Daily incidental allowance is $18.00 (TBS is $17.30)
- Private vehicle mileage - TBS low rate is applied more frequently
- Travel service provider is Global Travel, which is not TBS service
provider
|
Principal financial implications of the difference(s):
- Cost increase of $0.70 per travel day for daily incidental allowance
- Cost reduction of approximately $0.30 per kilometer for distances
traveled and reimbursed at low rate
- Cost neutral in respect of travel service provider
|
Comparison to the TBS Travel Directive, Rates and Allowances |
CNSC Travel Policy:
|
Authority: Nuclear Safety & Control Act
|
Coverage: Applies to the general employee population
|
Principal difference(s) in Policy Provisions:
- Class of air travel – business class only permitted if travel time
to destination is 18 hours or more. This is more stringent than TBS
policy
- Daily incidental allowance is $18.00 (TBS is $17.30)
- Private vehicle mileage – low rate is applied more frequently
- Travel service provider is Global Travel, which is not TBS service
provider
|
Principal financial implications of the difference(s)
- Significant cost reduction for business class travel as this class
is not permitted for majority of trips to Europe. (CNSC has a
substantial requirement to travel overseas)
- Cost increase of $0.70 per travel day for daily incidental allowance
- Cost reduction of approximately $0.30 per kilometer for distances
traveled and reimbursed at low rate
- Cost neutral in respect of travel service provider
|
|