CORPORATE GOVERNANCE

The Audit and Risk Committee supports FANR’s Board of Management by providing advice on matters relating to the organisation’s governance.

The committee includes four members and convened four times in 2020. The committee provided recommendations and took decisions on various concerns raised by FANR’s senior management. During the review period, the Audit and Risk Committee made six recommendations to the Board of Management; took one decision in relation to the Internal Audit Department at FANR; and assigned six actions to the Internal Audit Department and FANR’s management to implement so as to enhance and improve various facets of the organisation.

Several initiatives were implemented during the year to improve governance at FANR. These included:

• Reviewing progress on the revision of the Human Resources Policy and Manual.

• Providing significant guidance in matters dealing with Abu Dhabi and Federal courts.

• Recommending that comparative research be carried out with relevant entities to determine the adequacy and appropriateness of the inspector’s per diem allowances.

• Reviewing the Internal Audit Department’s progress on establishing the Anti-Fraud Framework at FANR in line with Cabinet Resolution No 4/11 of 2018.

• Reviewing FANR management’s progress in implementing corrective actions in response to the findings of the State Audit Institution such as improvements in governance and strengthening controls in areas of contracting, compensation, recruitment and so on.

• Reviewing and providing valuable input on FANR management’s initiatives around the effective implementation of the Cabinet Resolution No. 27 of 2015 Concerning Administrative Penalties for Violating the Conditions of the licences issued by FANR and other matters relating to payroll and accounts payables.

• Reviewing enterprise risk management components developed and or updated by the Internal Audit Department and encouraging management to implement activities as per the defined roadmap to reach the target maturity state.

In 2020 the Audit and Risk Committee supported the FANR Internal Audit Department by reviewing the 2020 entity-wide FANR ‘Risk Refresh’ results and approving the 2020 Risk-Based Internal Audit Plan.

As the primary point of contact for liaison with the State Audit Institution, the Audit and Risk Committee reviewed the State Audit Institution’s report on FANR for the year 2019 and Mid-Year Report for the year 2020; and responded to the observations identified within the report.

The Audit and Risk Committee also provided guidance, oversight and direction to FANR’s management and its external auditors in support of the closure and issuance of formal financial statements for the year ending 31 December 2019. In addition, the Audit and Risk Committee evaluated the performance of its external auditors as well as the Internal Audit Department and provided constructive feedback.

FANR Internal Audit was established to add value to and improve FANR's operations by bringing a systematic, disciplined approach to the organisation’s risk management, control and governance processes.

The following were carried out by the Internal Audit Department in 2020:

• Initiated an Anti-Fraud Framework Implementation Project at FANR in line with Cabinet Resolution No 4/11 of 2018.

• Conducted an entity-wide ‘risk refresh’ exercise, which included developing a consolidated enterprise risk register (linked to FANR’s Operational Plan initiatives and the IMS processes and procedures) and developing a five-year, risk-based internal audit plan to ensure coverage of the identified high risks through audits over a five-year period.

• Completed and reported the results of ten activities including an entity-wide annual ‘risk refresh’ exercise, internal audits including data analytics (continuous audit and continuous monitoring engagement), follow-up audits, special assignments, advisory assignments, and the ARC’s ad hoc requests in 2020 based on the approved annual risk-based internal audit plan.

• Supported FANR management in an advisory capacity to ensure the organisation’s Preparedness and Readiness for the Covid-19 Pandemic.

• Conducted an Advisory Assignment to develop an Enterprise Risk Management Framework in line with ISO 31000:2018 for FANR management to implement so as to have a consistent, integrated and structured process to identify, analyse, evaluate, treat, monitor and report risks that threaten the achievement of FANR’s objectives

• Conducted an annual follow-up review on agreed management action plans for high-rated Internal Audit observations as well as a semi-annual follow-up for all State Audit Observations to enhance internal controls across FANR.

• Conducted awareness sessions and training to improve employees’ understanding of risks and the risk management function.

• Initiated Bilateral Collaboration project with the Canadian Nuclear Safety Commission on conducting technical (operational) audits.

• Facilitated four benchmarking requests from national entities (federal and local governments) to benchmark their Internal Audit practice with FANR.

The Radiation Protection Committee was established in 2011 by a decision of the FANR Board of Management on the basis of Article (67) of Federal Law by Decree No (6) of 2009 Concerning the Peaceful Uses of Nuclear Energy. The committee is headed by the FANR Director General and its members are made up of representatives from the FANR Radiation Safety Department, the Armed Forces, the Ministry of Interior, the Ministry of Health and Prevention, the Ministry of Climate Change and Environment, Emirates Nuclear Energy Corporation, Federal Customs Authority, Khalifa University, the Department of Health - Abu Dhabi, Dubai Health Authority, Abu Dhabi Environment Agency, National Emergency Crisis and Disasters Management Authority, General Authority for Security of Ports, Borders and Free Zones, Abu Dhabi National Oil Company (ADNOC), and Abu Dhabi Centre for Public Health.

The Radiation Protection Committee provides a mechanism to promote collaboration between various bodies and gives advice and recommendations on how to improve the radiation protection infrastructure in the UAE, how to develop a unified national guide on radiation protection related matters as well as an emergency plan to respond to radiological disasters, and how to promote awareness of radiation protection.

The committee also provides an environment for inter-agency cooperation on matters important for radiation protection so as to ensure appropriate radiation protection resources and infrastructure in the UAE in the event of planned, emergency, and existing exposure situations. This includes the capability to perform analytical measurements, evaluate measurement results for making coordinated regulatory decisions, and implement associated actions to protect people and environment, and ensure the availability of radiation protection professionals in the UAE.

The Radiation Protection Committee implements action plans by establishing workgroups and task forces that operate according to respective terms of reference.

The Radiation Protection Committee working groups currently include:

• The Medical Applications Work Group

• The Orphan Sources Strategy Work Group

• The National Strategy for Education, Training and Qualification in Radiation Protection Work Group

• The National Environmental Radiation Measurements Work Group

In 2020, the Radiation Protection Committee did the following:

• Approved the action plan for the 4th Radiation Protection Committee cycle (2020-2023) including 66 actions. This action plan outlines time bound actions and associated objectives for projects implemented by the working groups and task forces, and identifies leading entities for the period 2020-2023. It comes into effective on an annual basis using the Radiation Protection Committee review based on the reports and feedback from the working groups and task forces as mandated in the terms of references.

• Restructuring the Medical Applications Work Group and creating a sub-working group to establish the first UAE National Referral Guidelines

• Publishing the first Temporary List of UAE Qualified Experts in Radiation Protection (where a ‘Qualified Expert’ is a recognised radiation protection professional able to provide authoritative advice to employers on matters relating to compliance with applicable legal requirements and technical standards in respect of public and occupational exposure to ionising radiation).

• Publishing the procedures on how to carry out radiological measurements during a nuclear emergency for different emergency phases.