3I EXPERIMENTTEXAS A&M ENGINEERINGSTATION NUCLEAR SCIENCE CENTER February 3, 2014 2014-0002 Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 Subject: Response to USNRC Requests for Additional Information RAI 1-4, Chapter 15- Financial Qualifications, from the Texas A&M University System, Texas Engineering Experiment Station, Nuclear Science Center Reactor (NSCR, License No. R-83, Docket 50-128) To Whom It May Concern: The Texas A&M University System, Texas Engineering Experiment Station (TEES), Nuclear Science Center (NSC, License No. R-83) operates a LEU, 1MW, TRIGA reactor under timely renewal. In December, 2003 the NSC submitted a Safety Analysis Report (SAR) as part of the license renewal process. In December, 2005 a conversion SAR (Chapter 18) was submitted resulting in an order to convert from the USNRC. In July 2009, the NSC submitted an updated SAR, dated June 2009, to the Nuclear Regulatory Commission (USNRC). This updated 2009 version of our SAR incorporated the information from the conversion SAR and the startup of the new LEU reactor core. On November 13, 2009 the USNRC submitted a Request for Additional Information (RAI) as a part of the review process. This request included four questions related to Chapter 15 - Financial Qualifications, of the NSC's SAR submittal. On August 30 and December 9, 2010 the NSC submitted responses to these four financial questions. On December 5, 2013 the USNRC submitted a RAI asking that the information in the answers to the four financial questions be updated. Attached is our reply to these four financial questions. If you have any questions, please contact Jerry Newhouse at 979-845-7551. I declare under penalty of perjuy that the foregoing is true and correct. Executed on February 3, 2014. Jerry Newhouse NSC, Assistant Director Xc: 2.1 I/Central File Duane Hardesy, USNRC Project Manager TEL. 979.845.7551 I FAX 979.862.2667 nsc.tamu.edu 1095 Nuclear Science Rd. I 3575 TAMU I College Station, TX 77843-3575 Texas A&M University System Texas Engineering Experiment Station Nuclear Science Center License No. R-83 Docket No. 50-128 Responses to Request for Additional Information Chapter 15 - Financial Qualifications As required by Title 10 of the Code of FederalRegulations (10 CFR) Section 40.33 (f)(2), "[aipplicantsto renew or extend the term of an operatinglicense for a nonpower reactor shall include the financial information that is required in an applicationfor an 'initiallicense. " To comply with this requirement,please provide an update to the supplemental information provided by your letters dated August 30 and December 9,2010.for the proposed renewal of the facility operation license for the Texas EngineeringExperiment Station/ Texas A&M University System (TEES/TAMUS), Nuclear Science Center (NSC), TRIGA-type research reactor (NSCR). In some cases, the responsesprovided in the August 30, and December 9, 2010, letters may not have changed (e.g.. RAIs 4. (b), 4. (c) and 4. (d)). In that case, please indicationin your response "no change, no additionalinformation is necessary, "and the NRC staff will consider your response provided in the August 30, and December 9, 2010, submittals to remain current. 1. The US. Nuclear Regulatory Commission (NRC) staff will analyze the financialstatements for the currentyear, which are requiredunder 10 CFR 50.71(b), to determine if the appliiant is financially qualified to operate the NSCR. Since TEES/TA MU's financial statements are now out of date, please provide a copy of the latestfinancial statements. Attached are three documents that we believe satisfies this information request. They are titled: "State of Texas CAFR - 2012", "TAMU.AFR - FY2012" and "TEES - FY2012". UNAUDITED TEXAS A&M ENGINEERU4GEXPERIMENT STATION UNAUDITED THIS PAGE LEFT BLANK INTENTIONALLY FINANCIAL REPORT OF TEXAS A&M ENGINEERING EXPERIMENT STATION FOR THE YEAR ENDED AUGUST 31, 2012 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED AUGUST 31.2011 DR.M. KATHERINEBANKS, DIRECTOR. VICECHANCELLOR AND DEANOF ENGINEERING CAROLHUFF. CPA, ASSOCIATE AGENCY Dl•ECTOR AND CHIEF FINANCIAL OFFICER ANDYB. HINTON,CPA, CONTROLLER COLLEGE STATION, TEXAS 712-i UNAUDITED EXHIBIT III UNAUDITED TEXAS A&M ENGINEERING EXPERIMENT STATION BALANCE SHEET FOR THE YEAR ENDED AUGUST 31,2012 TEXAS A&M ENGINEERING EXPERIMENT STATION CURRENT PRIOR INDEX YEAR YEAR TOTAL TOTAL AMU andDeferren OutfSos CannotAsasola: aets(chdleTm PACE Cash & Cash Equisests (SshedtleThen] (16.712,495.14) (13,119.264.68) SecuritinsLending Colattaena II BolnoenShee 712-1-1 lenaitine ltotnsonits NndgingDi•'tivlve Insil~sno WtnansdGutlow of Rneamonn Reosiclwt: IV Stmarta of Revenues.ERpasns. and Changesin Net Assets 712-2-1 Cash & Cash Equiaismts[Schednle Timre] 20,338,282.19 12.617,511.85 Investrents Logitotis~eIssiatiseeaAwomfiatotit 2,601,4 60 1,607,319.78 FenIvals, Nit IV. I Scheduleof NACUBOFondcton to Natural Classification Matrix 712-3-1 Fewnrad 7,977,310.42 7.015.929.26 [n~n~Dividends Gifts,Pledges .0 Donations Sd f-lostnseHealth and Dentsl V StatineiantofCshFlows 712-4-1 lsonvsses'aTrades Accounts 3,137,399.50 50:335.06 14,568,818.80 DueFtos OtherAgettil s 75,t617.99 1,557.032.19 I~•Fn-Oth.•M-bo-t 619,76T.00 1702.I81.21 SDnFroi Othe Fands I - A Scheduleof Exapndituresof Fderal Awards 712-8-1 Oloonoohinlo~nmesatn Macandlsc [Isnvtor..a DSfaeidCharges Loans,ad Contracts I- B Scheduleof State (leantPass ThrnaghasIronnTo StateAgencies 712-9-I hstonimdREcnisatt© 1.210.00 1,21000 Tool CurrentM S 28.6.432.51 S 25,950,745.41 THREE Schedule oftCash& Cash Eqi•iients 712-16.1 Non-Cuant MnetAand DnfnedOtalows: Rest•cted: Cash& CashEqaleno [SaheiuieThnen] S S N4-2 Note 2 -Capital Assas 712-17-1 A. res ed By Sylm OM ~es 5,014,879.16 4,971.093.21 hern, CoUcsadOh p eC.R.W..dbth. AsMnsHBld By SystemOffices 105,932,799.67 94,289,564.81 Derivav,Cssin sardtes Hedg8Drvte Ins ta• InasrsadDued Outflow Casscolsaf Resoun •3¢ [No[. 2) CapitalAssts.NoasadHd Ba nrG lpans 1337,462.54 1337,462.54 ConstructionIn Pmg=.•" 3,193,334,61 4,257,80434 Land01h. UseTawgible Rights Capital Asset 76,279.00 76,279.00 Other Instable Capitl Asse CapitalAasUts. D n ahble[Note2] Buildingsand! Building Ilarpovencits 9,166,350.61 9,166,350.61 Fadfi adand Other ImPsmnts FCrio tireos EqILapoal 104,795.40 104,795.40 veaiceIs Boats,Ld Aircraft 79,091,23337 74,655,726.05 OlherCapital As n 9215.58551 805,194.93 CntangitbleCMpial Assets, Amotsied [2ola 21 269.151.10 269.151.10 ClasPnLandUse Rights soft.- othir Inod= ils IsaitAssuts Acmuslaad Weqrianoantic A-1ii HeldIn Trust (55,185,371.50) (49.241,R40.08) OtherN.Cop AM•M TotalNootC•t Assets.andand HOutnso2 S 149,9260499.47$ 140,691.581.91 Total Assetoand Def nadO nfowsd S 175,694,931.9R $ 166,642,327.32 712-6i 712- I-I UNAUDrMD UNAUDIE EXHIBIT IV EXHIBIT TH TEXAS A&M ENGINEERING EXPERIMENT STATION TEXAS A&M ENGINEERING EXPERIMENT STATION CHANGES IN NET ASSETS BALANCE SHEET STATEMENT OF REVENUES, EXPENSES, AND FOR THE YEAR ENDED AUGUST 31,2012 FOR THE YEAR ENDED AUGUST 31, 2012 CURRENT PRIOR CURRENT PRIOR YEAR YEAR YEAR TOTAL TOTAL YEAR TOTAL TOTAL Liaeiities andDelfaend Inflows CoumtLiabilities: OperatingRenc Payabls: Salesof Good andSesni 1 $ 5,319,524.00 4230.177.02 Tuitionand Feca-Pledged Payrol 7,372,2A4.71 9.326.471.41 InnesnmentTrades Dis•a•Lnsand Allowances Saif-InsondHLealth and Dental NetTuold andFees- Non-Pledged 0dm- NetPinfesaional Pa, Iniet=fLndPssvbin NfrAuxiliary Enpnis. nAgesi 35,33326 70.16.47 D.eDunDon IntosnOthe GOan¢Other FuadsF. ,le NetOth= Saks uf G.odsand Setuces 1l1,954,712.311 13,061212.44 and Allwannro-Sales Dlo to fiber Membei 206987.34 547.653.33 Discounnts FundsHeld for Inavetmenn HedgingDmivativ• Instrmenls TnlalSal.s nfGondsand Siices S 11,954,782.38 S 13,0612312.44 DeferredInflow of lRestmsea Unearnld R2-n 14,662Z945.92 1.7T77.037.42 PetemomR.-nene 367.834.00 292.717.00 Empoyes' Consycinb LeanI lno etIRtvene C andlotsJudgmenta Nnmeand Loans Payable NetI-n[nas [ - Is. PalsValue BondsPayable FederalReveune - Opsattins 66,195,892.08 74,223203.87 CapilalLeaseOblitsionsm FederalPasS Tbmeugh Revenue 2,069,333.72 4,213,35337 Fu isPeHdclnmOther A Slan GSrnmRevenuoe 33,770.90 69,131.98 StainPass Through R-eene 1,203,792.24 884.577.75 Oblispdionn•u idenLendin g andCounmcits - Operating 41.364.009.35 31263534.00 Other CnrreetLiabilities 20,000.00 45,01M.00 OthesGiants Oli Opensbs R.e-ue 48.799.47 68,799.40 TotalCament LiAbilitim $ 27,984,9D9.13 I 26,317,942.65 TotalOperating Revsnuns S 122.890,380.14 I 123,783.912.31 Noe,-CiorntLiabilities end Defeied Infns IntlenrndPayable $ $ 3.7973200.00 3,732,981.S1 OperaensiFnpess Finp•fy-e' CosmpensableIann $ OtherPont Ev oynenetBe.neits Ins.trcion 1 128,432.240.13 125.674.078.93 Nnles andLoans payable flondsPayable PubicsS-ute Hospitalsand Clini Hedging -betavebsannmeun A.nd ienSuppno Deferrd InflownfRe-n.e AssenaHeld 1n Trost StodentSrvioes LiabilitiesPayalde From ResaniuedAssns InstitutionalSupport 7,993.933.61 Foar Heldf fo Others Operatio & Maininnne uf pias 4.832,136.09 CapitalL O•]igau•nIann Sflbhrisb. & Fellowhips O0h0"Nna-Cureal Linliltiw 766.076.42 679,957.12 Auxiliaiy 7.243,074.37 6.690.073.78 Total Nons-CournlLiabiides and Defem•el Inflows S 4.563.276.42 1 4,411.839.12 Dep•eslatonm/Arnoilonati ToenlLialbities andDeferred Inflows 1 32.148I185.55 I 30.729,780.77 TonllOperaning Rupenss [Schedule IV I] I 135.6753214.32 S 145,390,922.41 NeeAssets TntalOpensting IncsomejL-1n I (12,794.934.38) $ (21.607,009.60) InnelteaIn Ca& ual Assde. Netof Det S 3U.212744.22 S 40.752,066.77 ResaltendPus, Debt Scoice Nouopermtngnvenuen [Enp-ns) Capita Pmjea Legilafiw REneo £ 18,111,159.37 $ 17.041.402.83 Edunation 17,045,39430 l0.955,74827 FederalReveasfi NorOpennls Esal ot and PssnmnantFunds, FedmalPass Thouogh Nn-Ope g 2,909A682.78 N .