An advanced system analysis tool is being developed for advanced reactor safety analysis. This paper describes the underlying physics and numerical models used in the code, including the governing equations, the stabilization schemes, the high-order spatial and temporal discretization schemes, and the Jacobian Free Newton Krylov solution method. The effects of the spatial and temporal discretization schemes are investigated. Additionally, a series of verification test problems are presented to confirm the high-order schemes. It is demonstrated that the developed system thermal-hydraulics model can be strictly verified, and that it performs very well for a wide range of flow problems with high accuracy, efficiency, and minimal numerical diffusions.