Capital Planning and Investment Control Processes and Budget Reporting Circular A-11, Sections 31, 52, 53, 100 and 300 Off...
Agenda <ul><li>Associate Director for IT and e-Gov, Mr. Mark Forman </li></ul><ul><li>Information Policy and Technology Br...
Legislative and Policy Framework <ul><li>Budget Enforcement Act of 1990 </li></ul><ul><li>Chief Financial Officers Act of ...
And in plain   English? <ul><li>WE -- </li></ul><ul><li>have a finite amount of money  (BEA, BBA) </li></ul><ul><li>must f...
What is Capital Planning and Investment Control? <ul><li>A disciplined process that -- </li></ul><ul><ul><li>Links   plann...
IT and OMB Circular A-11 <ul><li>Section 31 “Compliance with Administration Policies and Other General Requirements”, addr...
Security  <ul><li>Security is an integral part of an agency’s business operations  </li></ul><ul><ul><li>Security must ena...
Security <ul><li>Section 31.8, Performance indicators, goals, and management improvement </li></ul><ul><ul><li>Estimates s...
Security -- Section 31.8 <ul><ul><ul><li>Demonstrate that controls are commensurate with risk and magnitude of harm. </li>...
Security   <ul><li>Exhibit 53s </li></ul><ul><ul><li>Must report security costs per system. </li></ul></ul><ul><ul><li>0 =...
Security -- Section 53 <ul><ul><ul><li>2.  Products, procedures, personnel, etc. that have as an integral component a quan...
Security <ul><li>Capital Asset Plans - FY03 Changes </li></ul><ul><ul><li>Incorporated the Gov’t Info Security Reform Act ...
Security -- Section 300 <ul><li>Section E.  Security and Privacy </li></ul><ul><ul><li>OMB M 00-07, “Incorporating and Fun...
Security -- Section 300 <ul><ul><ul><li>Identify additional controls for systems that promote public access and interconne...
Security <ul><li>Government Information Security Reform Act </li></ul><ul><ul><li>Agency executive summaries and supportin...
Security -- Gov’t Info Security Reform Act <ul><ul><li>Identify agency’s total security funding in the FY02 budget request...
E-Government and GPEA Budget <ul><li>Citizen-Centered </li></ul><ul><li>Results-Oriented </li></ul><ul><li>Market-Based </...
E-Government and GPEA Legislation <ul><li>Provide customer service in a fundamentally better way </li></ul><ul><li>Re-engi...
E-Government and GPEA  The Act (GPEA)  P.L. 105-277 (Title VII) <ul><li>Agencies to automate interactions with outside par...
E-Government and GPEA   Section 31.8 Performance <ul><li>See OMB guidance M-00-10, “OMB Procedures and Guidance on Impleme...
E-Government and GPEA Section 300 <ul><li>Describe linkages to agency GPEA plan : </li></ul><ul><ul><li>Weigh the magnitud...
E-Government and GPEA Exhibit 53 <ul><li>Ensure that spending on IT prioritizes and manages e-Government projects effectiv...
Enterprise Architecture <ul><li>A strategic information asset base, which defines the  mission , the  business processes  ...
Enterprise Architecture <ul><li>CCA requires agency to have an EA that includes current and to be </li></ul><ul><ul><li>Te...
Performance Management <ul><li>IT Investments identified, tied to strategic goals and missions, tied to the processes it e...
Privacy <ul><li>Section 31.8  </li></ul><ul><li>Section 53 </li></ul><ul><li>Section 300 </li></ul><ul><ul><li>Privacy Imp...
Budget Implementation <ul><li>OMB Circular A-11, Preparation and Submission of Budget Estimates </li></ul><ul><ul><li>Part...
Capital Planning in the Budget <ul><li>Agency Capital Plan (includes all Major Assets) </li></ul><ul><ul><li>Agency IT Inv...
Capital Asset Plan (300)   <ul><li>Part I:  Summary of Spending For Project Stages </li></ul><ul><li>Part II: Justificatio...
Capital Asset Plan (300) <ul><li>Part III: Cost, Schedule, and Performance Goals </li></ul><ul><ul><li>A.  Description of ...
What Do You Report?   <ul><li>For  New  Projects </li></ul><ul><ul><li>Part I </li></ul></ul><ul><ul><li>Part II-- Section...
IT Exhibits <ul><li>Exhibits are Question and Answer Format </li></ul><ul><li>All Electronic Submissions </li></ul><ul><li...
Capital Asset Plans (IT Specific) <ul><li>Unique Project ID  </li></ul><ul><li>Financial Management Criteria </li></ul><ul...
Agency IT Investment Portfolio (Exhibit 53) <ul><li>53.1 Why must I Report? </li></ul><ul><li>53.2 What special Terms must...
Section 52 “Information on Financial Management” <ul><li>52.1 What are the general reporting requirements? </li></ul><ul><...
Section 52 Continued... <ul><li>52.6 What are the line descriptions and coding for exhibit 52? </li></ul><ul><li>52.7 How ...
OMB Circulars A-11 and A-130 Pulling it all together. . . <ul><li>IRM Strategic Plan  (Paperwork Reduction Act) </li></ul>...
Questions or Comments? <ul><li>OFPP -  Yvette Garner ygarner @ omb . eop . gov </li></ul><ul><li>OIRA - William McVay  [em...
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Capital Planning and Investment Control Processes and Budget ...

  1. 1. Capital Planning and Investment Control Processes and Budget Reporting Circular A-11, Sections 31, 52, 53, 100 and 300 Office of Management & Budget’s Office of Information and Regulatory Affairs (OIRA), Office of Federal Financial Management (OFFM), and Office of Federal Procurement Policy
  2. 2. Agenda <ul><li>Associate Director for IT and e-Gov, Mr. Mark Forman </li></ul><ul><li>Information Policy and Technology Branch Staff </li></ul><ul><li>Office of Federal Procurement Policy Staff </li></ul><ul><li>Office of Federal Financial Management Staff </li></ul>
  3. 3. Legislative and Policy Framework <ul><li>Budget Enforcement Act of 1990 </li></ul><ul><li>Chief Financial Officers Act of 1990 </li></ul><ul><li>Government Performance & Results Act of 1993 </li></ul><ul><li>Federal Acquisition Streamlining Act of 1994 (Title V) </li></ul><ul><li>Paperwork Reduction Act of 1995 </li></ul><ul><li>Federal Financial Management Improvement Act of 1996 </li></ul><ul><li>Clinger-Cohen Act of 1996 (ITMRA & FARA) </li></ul><ul><li>Balanced Budget Act of 1997 </li></ul><ul><li>Government Paperwork Elimination Act of 1998 </li></ul><ul><li>Circular A-11, Preparation and Submission of Budget Estimates </li></ul><ul><li>Circular A-123, Management Accountability and Control </li></ul><ul><li>Circular A-127, Financial Management Systems </li></ul><ul><li>Circular A-130, Management of Federal Information Resources </li></ul><ul><li>OMB memorandum M-97-02 dated October 25, 1996, Funding Information Systems Investments </li></ul><ul><li>OMB memorandum M-00-07 dated February 28, 2000, Incorporating and Funding Security in Information Systems Investments </li></ul>
  4. 4. And in plain English? <ul><li>WE -- </li></ul><ul><li>have a finite amount of money (BEA, BBA) </li></ul><ul><li>must focus on agency mission, strategic goals, performance & outcomes (GPRA and CCA) </li></ul><ul><li>make strategic decisions about fiscal investments (PRA) </li></ul><ul><li>to get the biggest “bang for the buck” (CCA) </li></ul><ul><li>then deliver on our commitment (FASA V) </li></ul>
  5. 5. What is Capital Planning and Investment Control? <ul><li>A disciplined process that -- </li></ul><ul><ul><li>Links planning to budgeting to procurement to operations, maintenance and management-in-use (full life-cycle) </li></ul></ul><ul><ul><li>Is results-oriented and performance-based </li></ul></ul><ul><ul><li>Is synonymous with “capital programming” </li></ul></ul>
  6. 6. IT and OMB Circular A-11 <ul><li>Section 31 “Compliance with Administration Policies and Other General Requirements”, addresses CPIC, IT Security and Privacy and GPEA. </li></ul><ul><li>Section 100 </li></ul><ul><li>Section 52, 53, and 300 </li></ul>
  7. 7. Security <ul><li>Security is an integral part of an agency’s business operations </li></ul><ul><ul><li>Security must enable and not inhibit these operations. </li></ul></ul><ul><li>Plans to fund and manage security must be built into life-cycle budgets for information systems </li></ul>
  8. 8. Security <ul><li>Section 31.8, Performance indicators, goals, and management improvement </li></ul><ul><ul><li>Estimates should reflect OMB security policies, NIST guidance, including the Security Act. </li></ul></ul><ul><ul><ul><li>Demonstrate costs are incorporated throughout the life-cycle phases of the system. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate that risks are continually assessed. </li></ul></ul></ul>
  9. 9. Security -- Section 31.8 <ul><ul><ul><li>Demonstrate that controls are commensurate with risk and magnitude of harm. </li></ul></ul></ul><ul><ul><ul><li>Identify additional controls for systems that promote public access and interconnected systems. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate the use of controls and authentication tools to protect privacy for systems that promote/permit public access. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate that the handling of personal information is consistent with gov’t-wide and agency policies. </li></ul></ul></ul>
  10. 10. Security <ul><li>Exhibit 53s </li></ul><ul><ul><li>Must report security costs per system. </li></ul></ul><ul><ul><li>0 = no security controls </li></ul></ul><ul><ul><li>What are security costs? </li></ul></ul><ul><ul><ul><li>1. Products, procedures, personnel, etc. that are primarily dedicated to or used for provision of security controls: </li></ul></ul></ul><ul><ul><ul><ul><li>employee training, security inspections and audits, vulnerability and penetration testing. </li></ul></ul></ul></ul>
  11. 11. Security -- Section 53 <ul><ul><ul><li>2. Products, procedures, personnel, etc. that have as an integral component a quantifiable benefit to security: </li></ul></ul></ul><ul><ul><ul><ul><li>privacy training, system/program evaluations. </li></ul></ul></ul></ul>
  12. 12. Security <ul><li>Capital Asset Plans - FY03 Changes </li></ul><ul><ul><li>Incorporated the Gov’t Info Security Reform Act </li></ul></ul><ul><ul><ul><li>Can you confirm that the security of this system meets the requirements of the Security Act? </li></ul></ul></ul><ul><ul><ul><li>Were any weaknesses identified for this project? </li></ul></ul></ul>
  13. 13. Security -- Section 300 <ul><li>Section E. Security and Privacy </li></ul><ul><ul><li>OMB M 00-07, “Incorporating and Funding Security in Information Systems Investments” </li></ul></ul><ul><ul><ul><li>Demonstrate costs are incorporated throughout the life-cycle phases of the system. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate that risks are continually assessed. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate that controls are commensurate with risk and magnitude of harm. </li></ul></ul></ul>
  14. 14. Security -- Section 300 <ul><ul><ul><li>Identify additional controls for systems that promote public access and interconnected systems. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate the use of controls and authentication tools to protect privacy for systems that promote/permit public access. </li></ul></ul></ul><ul><ul><ul><li>Demonstrate that the handling of personal information is consistent with gov’t-wide and agency policies. </li></ul></ul></ul>
  15. 15. Security <ul><li>Government Information Security Reform Act </li></ul><ul><ul><li>Agency executive summaries and supporting documentation are due to OMB on Sept. 10th. </li></ul></ul><ul><ul><li>OMB will use the information provided by agencies to assist with budget decisions. </li></ul></ul><ul><ul><li>Information reported in the executive summary should match information in budget submissions. </li></ul></ul>
  16. 16. Security -- Gov’t Info Security Reform Act <ul><ul><li>Identify agency’s total security funding in the FY02 budget request. </li></ul></ul><ul><ul><li>This should include a breakdown of security costs by each major operating division or bureau and include critical infrastructure protection costs that apply to the protection of government operations and assets. </li></ul></ul>
  17. 17. E-Government and GPEA Budget <ul><li>Citizen-Centered </li></ul><ul><li>Results-Oriented </li></ul><ul><li>Market-Based </li></ul>The Administration’s FY 2002 budget calls on agencies to create an electronic government that is: OMB Logo
  18. 18. E-Government and GPEA Legislation <ul><li>Provide customer service in a fundamentally better way </li></ul><ul><li>Re-engineer business process around technology and customers. </li></ul>GPEA GPRA PRA CUSTOMER SERVICE <ul><li>LESS TIME TO ACCESS </li></ul><ul><li>EASIER TO FILL </li></ul><ul><li>FASTER TO SUBMIT </li></ul><ul><li>QUICKER RESPONSE AND INERNAL PROCESSING </li></ul>Clinger -Cohen When we combine these laws we get: Arrow Left Chart With Levels of Service GPRA< PRA, Clinger-Cohen, GPEA
  19. 19. E-Government and GPEA The Act (GPEA) P.L. 105-277 (Title VII) <ul><li>Agencies to automate interactions with outside partners/customers by October 2003 to the extent practicable. </li></ul><ul><li>Electronic signatures should not be denied legal effect because electronic. </li></ul><ul><li>Encourages electronic filing, electronic record keeping, and electronic signatures. </li></ul>
  20. 20. E-Government and GPEA Section 31.8 Performance <ul><li>See OMB guidance M-00-10, “OMB Procedures and Guidance on Implementing the Government Paperwork Elimination Act” http://www.cio.gov/Documents/implementation_gpea.html </li></ul><ul><li>Performance of E-gov is ONLY performance of the program </li></ul><ul><ul><li>reduce cost, decrease time, raise productivity </li></ul></ul>
  21. 21. E-Government and GPEA Section 300 <ul><li>Describe linkages to agency GPEA plan : </li></ul><ul><ul><li>Weigh the magnitude of the risk and select an appropriate combination of technology and practice to cost-effectively minimize risk and maximize benefits to agency and to customers. </li></ul></ul><ul><ul><li>Prioritize projects by net benefit </li></ul></ul><ul><ul><li>Re-design existing business process around these new technologies and needs of users. </li></ul></ul><ul><li>Include any OMB Control numbers from PRA </li></ul>
  22. 22. E-Government and GPEA Exhibit 53 <ul><li>Ensure that spending on IT prioritizes and manages e-Government projects effectively through your agency's capital planning process and enterprise architecture. </li></ul><ul><li>Ensure that initiatives create a citizen centered electronic presence </li></ul><ul><li>Advance an e-Government strategy that includes specific outcomes to be achieved. </li></ul>
  23. 23. Enterprise Architecture <ul><li>A strategic information asset base, which defines the mission , the business processes necessary to perform the mission, the data required to perform the processes, the applications required to manage the data, the technologies required to manage the applications, and transitional processes for modernizing. </li></ul>
  24. 24. Enterprise Architecture <ul><li>CCA requires agency to have an EA that includes current and to be </li></ul><ul><ul><li>Technical Reference Model </li></ul></ul><ul><ul><li>Standards Profile </li></ul></ul><ul><ul><li>Sequencing plan using CPIC </li></ul></ul><ul><ul><li>A-130 and the EA </li></ul></ul><ul><ul><ul><li>How EA is used with the CPIC </li></ul></ul></ul>
  25. 25. Performance Management <ul><li>IT Investments identified, tied to strategic goals and missions, tied to the processes it enables, identifies the data collection and information collection requirements, and provides planned cost, schedule, and performance goals that are monitored and reported. </li></ul>
  26. 26. Privacy <ul><li>Section 31.8 </li></ul><ul><li>Section 53 </li></ul><ul><li>Section 300 </li></ul><ul><ul><li>Privacy Impact Assessment </li></ul></ul><ul><ul><li>Security and Privacy under part II. </li></ul></ul>
  27. 27. Budget Implementation <ul><li>OMB Circular A-11, Preparation and Submission of Budget Estimates </li></ul><ul><ul><li>Part 1 -- Budget Requests </li></ul></ul><ul><ul><ul><li>Budget Exhibit 52 , Report on Resources for Financial Management Activities </li></ul></ul></ul><ul><ul><ul><li>Budget Exhibit 53 , Agency IT Investment Portfolio </li></ul></ul></ul><ul><ul><li>Part 2 -- Strategic Plans & Annual Performance Plans </li></ul></ul><ul><ul><li>Part 3 -- Planning, Budgeting & Acquisition of Capital Assets </li></ul></ul><ul><ul><ul><li>Budget Exhibit 300 , Capital Asset Plan & Justification </li></ul></ul></ul><ul><ul><ul><li>Capital Programming Guide </li></ul></ul></ul>
  28. 28. Capital Planning in the Budget <ul><li>Agency Capital Plan (includes all Major Assets) </li></ul><ul><ul><li>Agency IT Investment Portfolio (Exhibit 53) </li></ul></ul><ul><ul><ul><li>Major IT Projects </li></ul></ul></ul><ul><ul><ul><ul><li>Financial Management System (Exhibit 300) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Human Resources System (Exhibit 300) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Mission Area Major Projects (Exhibit 300) </li></ul></ul></ul></ul><ul><ul><li>Report on Resources for Financial Management </li></ul></ul><ul><ul><li>Activities (Exhibit 52) </li></ul></ul>Arrow Join On Two Topics
  29. 29. Capital Asset Plan (300) <ul><li>Part I: Summary of Spending For Project Stages </li></ul><ul><li>Part II: Justification and Other Information </li></ul><ul><ul><li>A. Justification </li></ul></ul><ul><ul><li>B. Program Management </li></ul></ul><ul><ul><li>C. Acquisition Strategy </li></ul></ul><ul><ul><li>D. Alternatives Analysis and Risk Management </li></ul></ul><ul><ul><li>E. Enterprise Architecture (IT Projects Only) </li></ul></ul><ul><ul><li>F. IT Security (IT Projects Only) </li></ul></ul><ul><ul><li>G. Government Paperwork Elimination Act (GPEA) (IT Projects Only) </li></ul></ul>
  30. 30. Capital Asset Plan (300) <ul><li>Part III: Cost, Schedule, and Performance Goals </li></ul><ul><ul><li>A. Description of performance-based management system </li></ul></ul><ul><ul><li>B. Original baseline (OMB-approved at project outset) </li></ul></ul><ul><ul><li>C. Current baseline (applicable only if OMB approved the changes) </li></ul></ul><ul><ul><li>D. Actual Performance and Variance from OMB-approved baseline (Original or Current) </li></ul></ul><ul><ul><li>E. Corrective Actions </li></ul></ul>
  31. 31. What Do You Report? <ul><li>For New Projects </li></ul><ul><ul><li>Part I </li></ul></ul><ul><ul><li>Part II-- Sections A - D (and, if IT, Sections E - G) </li></ul></ul><ul><ul><li>Part III-- Sections A & B </li></ul></ul><ul><li>For On-Going Projects (conversations with OMB from 02) Processes and Reviews) </li></ul><ul><ul><li>Part I </li></ul></ul><ul><ul><li>Part II-- Section B (1) (and, if IT, Sections E - G) </li></ul></ul><ul><ul><li>Part III-- Sections A, B, & D (and Sections C & E, if applicable) </li></ul></ul><ul><ul><li>NOTE: Section A should be updated if changed circumstances affect justification for project. </li></ul></ul>
  32. 32. IT Exhibits <ul><li>Exhibits are Question and Answer Format </li></ul><ul><li>All Electronic Submissions </li></ul><ul><li>Automated for agencies using I-TIPS (52, 53, and 300) </li></ul><ul><li>Spreadsheets will be provided on cio.gov </li></ul><ul><li>A-11 includes CCA requirements </li></ul><ul><li>OMB Meeting with Agencies on CPIC </li></ul><ul><ul><li>Areas to Improve and specifics for FY2003 Budget Submission </li></ul></ul>
  33. 33. Capital Asset Plans (IT Specific) <ul><li>Unique Project ID </li></ul><ul><li>Financial Management Criteria </li></ul><ul><li>GISRA Requirements </li></ul><ul><li>300-A and 300-B combined </li></ul><ul><li>Triumverate (CIO, CFO, PE) </li></ul><ul><li>Enterprise Architecture </li></ul><ul><li>IT Security and Privacy </li></ul><ul><li>GPEA </li></ul>
  34. 34. Agency IT Investment Portfolio (Exhibit 53) <ul><li>53.1 Why must I Report? </li></ul><ul><li>53.2 What special Terms must I know? </li></ul><ul><li>53.3 How do I determine whether I must report? </li></ul><ul><li>53.4 How do I submit the Exhibit 53 and when is it due? </li></ul><ul><li>53.5 If I submitted the Exhibit last year, how do I revise it this year? </li></ul><ul><li>53.6 How is the Exhibit organized? </li></ul><ul><li>53.7 How is the Exhibit Coded? </li></ul><ul><li>53.8 What are the steps to complete the Exhibit? </li></ul>
  35. 35. Section 52 “Information on Financial Management” <ul><li>52.1 What are the general reporting requirements? </li></ul><ul><li>52.2 What other reporting requirements does this fulfill? </li></ul><ul><li>52.3 Who must report financial management information and when is it due? </li></ul><ul><li>52.4 What materials are required in the budget justification and why? </li></ul><ul><li>52.5 What is the report on resources for financial management activities (exhibit 52) and why must I submit it? </li></ul>
  36. 36. Section 52 Continued... <ul><li>52.6 What are the line descriptions and coding for exhibit 52? </li></ul><ul><li>52.7 How do I check my exhibit 52 data for consistency? </li></ul><ul><li>52.8 How do I submit exhibit 52 and when is it due? </li></ul><ul><li>Additional Changes or concerns </li></ul><ul><li>Minor changes in the format for Exhibit 52 since last year </li></ul><ul><li>Exhibits 52 must be provided electronically to Exhibit52@omb.eop.gov. </li></ul>
  37. 37. OMB Circulars A-11 and A-130 Pulling it all together. . . <ul><li>IRM Strategic Plan (Paperwork Reduction Act) </li></ul><ul><li>Enterprise Architecture (Clinger-Cohen Act) </li></ul><ul><li>Documented CPIC Process (Clinger-Cohen Act) </li></ul><ul><li>Agency Capital Plan (Circulars A-11 and A-130) </li></ul><ul><ul><li>CAPs, Agency IT Portfolio, Report of Financial Management Activities and attendant documents, Transforming the Agency discussion, and CPIC Control (all IT Investments). </li></ul></ul><ul><ul><li>All Section 52, 53, and 300 documents updated to reflect President’s Decisions and resubmitted. </li></ul></ul>
  38. 38. Questions or Comments? <ul><li>OFPP - Yvette Garner ygarner @ omb . eop . gov </li></ul><ul><li>OIRA - William McVay [email_address] </li></ul><ul><li>OFFM - Jean Holcombe jholcomb@omb.eop.gov </li></ul><ul><li>To send Exhibits to OMB: </li></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul>

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