More Straight Talk Brig. Gen. John J. Kelly, Jr., USAF (Ret.) Deputy Under Secretary for Oceans and Atmosphere December 1, 2005

2 More Straight Talk Overview Organizational Assessment FY06 Secretary Priorities Funding Trends FY05 Audit Acquisitions and Grants Recapitalization Personnel Matters

3 More Straight Talk Organizational Assessment President’s Management Agenda HUMAN CAPITAL Status Progress Needs to demonstrate results in implementing a comprehensive Human Capital Plan. Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06 COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule. FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings. E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05. BUDGET & PERFORMANCE Status Progress R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating. HUMAN CAPITAL Status Progress Needs to demonstrate results in implementing a comprehensive Human Capital Plan. Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06 COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule. FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings. E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05. BUDGET & PERFORMANCE Status Progress R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating. HUMAN CAPITAL Status Progress Needs to demonstrate results in implementing a comprehensive Human Capital Plan. Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06 COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule. FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings. E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05. BUDGET & PERFORMANCE Status Progress R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

4 More Straight Talk Organizational Assessment Secretarial FY 2005 Priorities Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management Provide Global Leadership in Earth Observations Obtaining the Best Science through the Climate Change Science Program and NOAA Climate Program Ensuring the Public Safety and Economic Security through Improved Weather and Water Information Advancing the President’s Management Agenda

5 More Straight Talk Organizational Assessment ProgramYearScoreRating Ecosystem Research200567Adequate Weather & related services200576Moderately Effective NOAA Protected Areas200468Adequate Climate Research200478Moderately Effective Coastal Zone Management Act200346Results Not Demonstrated Navigation Service200383Moderately Effective Small Business Innovative Research (NOAA/NIST) Results Not Demonstrated National Weather Service200289Effective Pacific Coastal Salmon Recovery Fund Results Not Demonstrated National Marine Fisheries Service200255Adequate Performance Measures PART Summary

6 More Straight Talk Organizational Assessment Funding Summary ($ thousands) Total Funding 4,082,476 Estimated Spent 3,933,127 +/- Total 149,349 % of Total Spent 96.3 NOAA estimates 96.3% of total funding was spent in FY 2005.

7 More Straight Talk Secretarial FY2006 Priorities Execute NOAA Elements of the Integrated Earth Observations System Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management Complete the Planned 2006 US Climate Change Science Program Actions Ensure Public Safety and Economic Security through Improved Weather and Water Information Advance Navigation and Transportation Continue Implementation of President’s Management Agenda

8 More Straight Talk NOAA Funding Trends (Constant Dollars in Billions) Data Source: DOC Summary of enacted BA

9 More Straight Talk Fiscal Year 2005 Audit Findings and Recommendations (NFRs) Major Conclusions: Unqualified audit opinion last seven years. Improvement in the number of NFRs. Personal property, Construction Work In Progress, reimbursable agreements and grants recurring issues.

10 More Straight Talk Fiscal Year 2005 Audit Information Technology Security OIG Evaluation: Good: Security Plans and Risk Assessments Not so Good: Testing FY06 Activities More Rigorous Testing Authorizing Official review all IT Security Plans

11 More Straight Talk FY2005 Acquisitions and Grants Acquisitions Completed Total = 18,827 Completed Acquisitions in FY05

12 More Straight Talk FY2005 Acquisitions and Grants Grants Workload

13 More Straight Talk Personnel Matters Performance Appraisals SES Ratings 2005 * Outstanding 49% 51%85%86% Commendable 43% 35%13%12% Fully Successful 8% 14%2% ST/SL Ratings 2005 * Outstanding 70% 72%65%69% Commendable 15% 7%21%15% Eligible (DEMO) 15% 14% 15% Not Eligible (DEMO) 0% Fully Successful 0% 7%0% * Proposed

14 More Straight Talk Personnel Matters Executive Pay Rules Agency Appraisal System Not CertifiedCertified Cap on base pay$149,200$162,100 Cap on pay, bonuses & awards$180,100$208,100 Cap Impact Number within NOAA at or above Executive Level III * # of employees4060 * Proposed

15 More Straight Talk Personnel Matters Five Level Performance Management System Component of the PMA— Human Capital Component Many DOC Organizations using the system. Exceptions are NOAA, Census, EDA and Office of IG DOC-wide Oct. 1, 2006 Timetable for Implementation: 11/05 – 03/06: union briefings, negotiations 04/06 – 08/06: training 09/30/06: closeout of two-level system Challenges Employee Acceptance Impact and Implementation Negotiations Training Development of Measures Consistency