1. 1 2004 OMB Exhibit 53 Changes Briefing Presented by the Office of the Chief Information Officer June 5, 2002

2. 2 AGENDA Background Changes to Exhibit 53 Updating I-TIPS DOE Resources Next Steps

3. 3 BACKGROUND Reporting requirements changing for 2004 –OMB distributed draft A-11, Section 53 in late May Section 53 describes IT portfolio data reporting requirements and focuses on how such investments should be linked to President’s Management Agenda (PMA), E-government Changes to Exhibit 53 requirements impact Exhibit 300 reporting requirements Changes also affect use of I-TIPS

4. 4 SUMMARY OF CHANGES FROM LAST YEAR Elimination of “significant” project category “Major” and “small/other” target percentages Definition of “major” IT systems expanded to include all investments that support PMA/E-Gov Inclusion of additional criteria for identifying IT Security costs; identification of security and financial percentages for “small/other” investments Requirement to identify “major” investment Funding Source(s) Other minor changes

5. 5 CHANGES IN EXHIBIT 53 REQUIREMENTS Project Category Designations – “Significant” project category is eliminated. Projects must be identified as “major” or grouped into a “small/other” total. This may affect how many Exhibit 300s you submit. For each “small/other” investment, Financial and IT Security Percentages are required. Performance Goals for IT Investment Portfolio Percentages (Section 53.7) – “Major” projects should account for 60+ percent of DOE IT investment portfolio (entire Exhibit 53). In each mission area, “the greater percent of your IT expenditures should be … within the major category,” i.e., each mission area should report 50+% as “major”.

6. 6 CHANGES IN EXHIBIT 53 REQUIREMENTS (cont. )  Expanded Definition of “major” Investments (Section 53.3) – “Major IT system or project means a system that requires special management attention because of its importance to an agency mission... Large infrastructure investments (e.g., major purchases of personal computers or local area network improvements) should be evaluated against [“major” IT system or project] criteria… Additionally, if the project or initiative directly supports the President's Management Agenda Items, then the project meets the criteria of "high executive visibility". Projects that are E-Government in nature or use e-business technologies must be identified as major projects regardless of the costs.”

7. 7 CHANGES IN EXHIBIT 53 REQUIREMENTS (cont. ) risk assessment security planning/policy certification & accreditation specific management, operational, and technical security controls authentication or cryptographic apps. education, awareness, training system reviews/evaluations oversight/compliance inspections development and maintenance of agency OMB reports contingency planning/testing physical & environmental controls for hw/sw auditing/monitoring compusec investigations & forensics contractor reviews, inspections, audits & other evaluations IT Security Costs Percent Identification (Section 53.7) – Percentage must be reported for ALL investments. Explicit criteria to consider now must include costs of “products, procedures, and personnel primarily dedicated to or used for provision of IT security for the specific IT investment”, such as:

8. 8 CHANGES IN EXHIBIT 53 REQUIREMENTS (cont. ) Funding Source Identification (Section 53.7) – Funding sources must be identified for all “major” investments. On-Going Project (Section 53.3) – New definition: A project that has been through a complete budget cycle with OMB and represents budget decisions consistent with the President's Budget for the prior year (BY-1).

9. 9 CHANGES IN EXHIBIT 53 REQUIREMENTS (cont. ) Linking “major” Investments to the President’s Management Agenda (Section 53.2) – For help preparing Exhibit 300s, additional guidance has been provided in linking “major” investments to the President’s Management Agenda, guiding principles, e-Government strategies, and portfolio outcomes. For each such “major” investment an Exhibit 300 report must be prepared and should address elements discussed in section 53.2.

10. 10 HOW I-TIPS IS AFFECTED Update I-TIPS to ensure that all on-going and new investments designated “major” or “small/other” –Use the OMB Project Type field at bottom of General Descriptive Information screen –For on-going investments, “moves” require footnoting –For new investments, final two digits: 00 Populate IT Security and IT Financial % fields for “small/others” in Life Cycle Cost Info. Folder –IT Security: > 0; IT Financial >= 0 For “majors,” use I-TIPS Funding Source Name drop down list in Life Cycle Budget and Financing Info. Folder to identify codes –To add codes, notify Help Desk, 3-2408

11. 11 Edit Investment

12. 12 Indicate OMB 300 Project Type

13. 13 Indicate IT Security/Financial %

14. 14 Indicate Funding Source

15. 15 HOW I-TIPS IS AFFECTED (Cont.) Footnoting All FY ‘03 baseline investment “Moves,” “Combinations” and “Deletions” must be footnoted, including projects formerly designated as “significant” that must be moved to “major” or “small/other” –Please follow existing instructions for Moves, Combinations & Deletions found within Attachment #5 of DOE I-TIPS User Guide for IT OMB Exhibit 53 Reports

16. 16 USEFUL REFERENCE MATERIALS The following are available at http://cio.doe.gov/implan/Calls/Exhibit53/2004.htm and/or in the I-TIPS Global Resource Library –Revised OCIO “Instructions for OMB Exhibit 53 Submissions” –May 2002 Draft of OMB Circular A-11, Section 53 –OCIO List of Exhibit 53 Changes –DOE “I-TIPS User Guide for IT OMB Exhibit 53 Reports,” including an updated Attachment #5 on Footnoting

17. 17 POINTS OF CONTACT For Exhibit 53 OMB Numbers: –Doug Todak, 6-2233 For Exhibit 53 data questions: –Joe Martin, 6-5020 –Helen McBride, 6-7549 For I-TIPS system questions –Help Desk, 3-2408 –David Glassman, 6-7151 –Jim King, 3-2053

18. 18 NEXT STEPS Update and finalize Exhibit 53 data and portfolios in I-TIPS by 6/24 Notify Jim King in OCIO at x3-2053 once I-TIPS update is complete Questions?