Internal control.
Internal control. The licensee shall:
(1) Establish procedures for shipping and receiving SSNM that provide for:
(1) Establish procedures for shipping and receiving SSNM that provide for:
(i) Accurate identification and measurement of the quantities shipped and received;
(ii) Review and evaluation of shipper/receiver differences on an individual container or lot basis, as appropriate, on a shipment basis, and on a batch basis when required by part 75 of this Chapter;
(iii) Investigation and corrective action when shipper/receiver differences exceed twice the estimated standard deviation of the difference estimator and the larger of 0.5 percent of the amount of SSNM in the container, lot, or shipment, as appropriate, or 50 grams of SSNM; and
(iv) Documentation of shipper/receiver difference evaluations, investigations, and corrective actions.
(2) Establish a scrap control program that assures that:
(i) Internally generated scrap and scrap from other licensees or contractors is segregated until accountability is established; and
(ii) Any scrap measured with a standard deviation greater than five percent of the measured amount is recovered so that the results are segregated by inventory period and recovered within six months of the end of the inventory period in which the scrap was generated except where it can be demonstrated that the scrap measurement uncertainty will not cause noncompliance with § 74.59(e)(5).
(3) Incorporate checks and balances in the MC&A system sufficient to control the rate of human errors in material control and accounting information.
(4) Perform independent assessments at least every 12 months that assess the performance of the MC&A system, review its effectiveness, and document management's action on prior assessment recommendations. Assessments must include an evaluation of the measurement control program of any outside contractor laboratory performing MC&A measurements for a licensee, unless the contractor is also subject to the requirements of § 74.59(e).
(5) Assign custodial responsibility in a manner that ensures that such responsibility can be effectively executed for all SSNM possessed under license.