NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

2005 Performance and Accountability Report

**Table of Contents**

**Part 1 Management's Discussion and Analysis**

A Message from the Archivist of the United States 1

Introduction 4

*How to Use This Report* 4

About NARA 4

*Our Vision* 5

*Our Mission* 5

*Our Strategic Goals* 5

*Our Organizational Structure* 6

> NARA's Challenges and Management's Actions to\
> Address These Challenges 8

Performance Highlights 14

*Spotlight on Education* 14

*Spotlight on Partnerships* 19

*Performance Overview* 25

Financial Highlights 33

*Sources of Funds* 33

*Uses of Funds by Function* 34

*Audit Results* 35

*Financial Statement Highlights* 35

*Debt Management* 38

*Erroneous Payments Management* 38

Systems, Controls, and Legal Compliance 39

*Financial Managers' Financial Integrity Act* 39

*Federal Information Security Management Act* 40

*Federal Financial Management Improvement Act* 40

*Prompt Payment Act* 41

*Inspector General Act* 41

Facilities 42

Copies of This Report 44

Other Web Pages of Interest 44

**Part 2 Performance Section**

Measuring and Reporting Our Performance 45

FY 2005 Performance by Strategic Goal 46

*Strategic Goal 1: Records Management* 46

*Strategic Goal 2: Electronic Records* 53

*Strategic Goal 3: Access* 62

*Strategic Goal 4: Space and Preservation* 75

*Strategic Goal 5: Infrastructure* 80

FY 2005 Program Evaluations 87

*Strategic Goal 1: Records Management* 87

*Strategic Goal 2: Electronic Records* 87

*Strategic Goal 3: Access* 87

*Strategic Goal 4: Space and Preservation* 88

*Strategic Goal 5: Infrastructure* 89

*Multi-Goal Evaluations* 90

Status of NARA Records Management Initiatives 92

Federal Records Management Evaluations 96

*Office of the Secretary of Defense* 96

*Department of Treasury, Office of the CIO* 96

*Internal Revenue Service* 97

> *Department of Agriculture Forest Service, Department of the*
>
> *Interior, Bureau of Indian Affairs / Bureau of Land Management /*
>
> *U.S. Fish and Wildlife Service / National Park Service* 97
>
> *Federal Bureau of Investigation* 97

Performance Assessment Rating Tool (PART) Summary 98

*Records Services Program* 98

*Electronic Records Services Program* 99

Definitions 100

**Part 3 Financial Section**

A Message from the Chief Financial Officer 103

Auditor's Reports 105

*Inspector General's Summary* 105

*Independent Auditor's Report* 106

*Management Response to Auditor's Reports* 126

Financial Statements and Additional Information 129

*Limitations of the Financial Statements* 129

*Principal Statements* 130

*Required Supplementary Stewardship Information* 155

*Required Supplementary Information* 157

**Appendixes**

A Inspector General's Assessment of Management Challenges\
Facing NARA 165

B Federal Managers' Financial Integrity Act Report 171

C Progress on 2004 Audit Recommendations 180

# [Part 1]{.smallcaps} MANAGEMENT'S DISCUSSION AND ANALYSIS {#part-1-managements-discussion-and-analysis .AR-Part-Title}

# A Message from the Archivist of the United States {#a-message-from-the-archivist-of-the-united-states .AR-2004-Head-1-Char-Char}

![](media/image1.jpeg){width="1.270138888888889in"
height="1.6243055555555554in"}

The National Archives and Records Administration (NARA) is our nation's
record keeper. Our daily work is that of preserving and providing access
to the records of our Government, whether those records are the
Declaration of Independence, service records of military veterans, or
documentation on homeland security issues that will make our country
safer.

Throughout the history of our democracy, these records have been
first-hand witnesses to the events that have shaped our country. They
have documented the rights and entitlements of our citizens, and they
have held our Government officials accountable to the people.

NARA's mission is vital to continuity of Government, homeland security,
public trust, and national morale.

-   We provide legal authority to many of the actions of the President
    and executive agencies through publication in the *Federal
    Register*, regardless of weather, terrorist attacks, or other
    emergency that may close other Federal operations.

-   We are leading the Federal Government in developing the new
    technology that will enable the Government to share electronic
    information across space and time, reducing the risk that critical
    intelligence will be lost in obsolete hardware and software.

-   We act as First Preservers in times of emergency, assisting Federal,
    state, and local governments in saving their critical records,
    especially those that docu­ment the rights and entitlements of
    citizens.

-   We serve a broad base of customers through a series of education,
    outreach, and partnership initiatives, contributing to civic
    literacy in America.

-   We protect the plans, drawings, maps, and photographs of Federal
    facilities worldwide.

-   We preserve and provide access to the military service records of 56
    million veterans of our armed forces, ensuring that they and their
    families receive the benefits they have earned by defending our
    country.

-   We protect and display the founding documents of our country---the
    Declaration of Independence, the Constitution, and the Bill of
    Rights---which more than a million people a year come to see because
    these Charters of Freedom are the heart of the democracy we cherish.

Never before has NARA played a more essential role in our Government,
and we recognize that the stakes are higher for our success.

That is why I am pleased to present the National Archives and Records
Administration's Performance and Accountability Report for FY 2005.
Thanks to support from our stakeholders and partners and the efforts of
our exceptional staff, we made significant progress on each of the goals
of our Strategic Plan and our two preexisting material weaknesses. Our
Strategic Plan focuses us on five goals---improving records manage­ment,
meeting electronic records challenges, expanding opportunities for
access, meeting storage and preservation needs of growing quantities of
records, and strategi­cally managing our resources. Our progress in these
areas is detailed throughout this report, but I must highlight one
special achievement here.

On September 8, 2005, NARA announced the award of the development
contract for the revolu­tion­ary system that will preserve and provide
access to electronic records across space and time, the Electronic
Records Archives. The goal of this system is to make Federal Government
electronic records available virtually anytime, anywhere, to anyone with
Internet access.

Let me share an example of how critical this system will be. The
personnel files for Americans serving in our armed forces in Iraq,
Afghanistan, and around the world are in digital formats. Our service
members depend on these records not only for their careers in the
military, but subsequently to obtain veteran's benefits, jobs, and
insurance. But today no one can guarantee to Americans serving in our
armed forces that these electronic records can be preserved for as long
as needed. The Electronic Records Archives will enable the U.S.
Government to honor its commitment to veterans; it will enable us to
maintain their digital military personnel files intact and authentic.

I encourage you to read the rest of this report to discover other
strides we have made in helping Federal agencies address records
management problems, making it easier for our customers to find and
order copies of records, preserving at-risk records for future
generations, streamlining the Government's rulemaking process, and much
more.

We also have made strides in ensuring that our resources are well
managed with the proper oversight. It is my informed judgment that there
is reasonable assurance that NARA\'s management controls are achieving
their intended objectives and that the program and financial data
contained in this report are valid and reliable. This assessment is
based on management control evaluations and other written evaluations
conducted in NARA's offices and staff organizations and senior
management\'s knowledge gained from the daily operations of NARA
programs and systems. I also have relied upon the advice of NARA's
Office of the Inspector General concerning this statement of assurance.

Pursuant to Section 4 of the Integrity Act, the financial subsystems of
NARA generally conform to the objectives detailed in OMB Circular A-127,
revised. Although three systems (Order Fulfillment Accounting System;
Trust Fund--Gift Fund Financial Review, Analysis, and Reporting System;
and Records Center Revolving Fund financial management systems) are not
in complete conformance because they fail to meet the financial
management system requirements, the nonconformances are not deemed
material.

NARA, through its management control evaluation process, identified two
material weaknesses in previous fiscal years---computer security in FY
2000 and collections security in FY 2001. We were able to eliminate the
material weakness for computer security this year and make substantial
progress on the collections security weakness, although work continues
in that area. A new material weakness in preservation of records points
to our recognition that we must continuously improve the processes we
have in place to identify and preserve our at-risk records while at the
same time look for new and creative solutions to address the chronic
problem. The actions we will take to address this problem are outlined
later in this report.

There is much more yet to be done, but I believe that our stakeholders
and the public can be proud of their National Archives and Records
Administration, which every day is protecting, preserving, and making
available the essential documentation of our Government.

![](media/image2.jpeg){width="1.6770833333333333in"
height="0.43680555555555556in"}

Allen Weinstein

Archivist of the United States

November 15, 2005

# Introduction {#introduction .AR-2004-Head-1-Char-Char}

This Performance and Accountability Report represents the culmination of
the National Archives and Records Administration's (NARA) program and
financial management processes, which began with strategic and program
planning, continued through the formulation and justification of NARA's
budget to the President and Congress and through budget execution, and
ended with this report on our program performance and use of the
resources entrusted to us. This report was prepared pursuant to the
require­ments of the Chief Financial Officers Act, as amended by the
Reports Consolida­tion Act of 2000, and covers activities from October 1,
2004, through September 30, 2005.

## How to Use This Report {#how-to-use-this-report .AR-2004-Head-2-Char-Char}

This report describes NARA's performance measures, results, and
accountability processes for FY 2005. In assessing our progress, we are
comparing actual results against targets and goals set in our annual
performance plan, which we developed to help us carry out our Strategic
Plan. Our complete set of strategic planning and performance reports is
available on our web site at
*www.archives.gov/about/plans-reports/strategic-plan/*.

This report has four major parts:

-   **Management's Discussion and Analysis**

    Look here for our agency-wide performance and use of resources in
    FY 2005. You also will find information on the strategies we use to
    achieve our goals and the management challenges and external factors
    that affected our performance.

-   **Performance Section**

    Look here for details on our performance by strategic goal and
    long-range performance target in FY 2005. This section covers our
    targets, how and why we met or did not meet them, and explanations
    of how we assess our performance and ensure its reliability.

-   **Financial Section**

    Look here for details on our finances in FY 2005, our consolidated
    financial state­ments and notes, required supplementary information,
    and the reports from our external auditor and our Inspector General.
    Also included is infor­mation on our internal controls and an
    explanation of what kind of information each of our financial
    statements conveys.

-   **Appendixes**

    Look here for our Inspector General's assessment of our agency's
    management challenges, our FMFIA report, and an update on last
    year's audit recommenda­tions made by Clifton Gunderson, LLP.

#  {#section .AR-2004-Head-1-Char-Char}

# About NARA {#about-nara .AR-2004-Head-1-Char-Char}

The National Archives and Records Administration is our national record
keeper. An independent agency created by statute in 1934, NARA
safeguards the records of all three branches of the Federal Government.
Our job is to ensure ready access to essential evidence, and in doing so
we serve a broad spectrum of American society. Genealogists and family
historians; veterans and their authorized representatives; academics,
scholars, historians, business and occupational researchers; publication
and broadcast journalists; Congress, the Courts, the White House, and
other public officials; Federal Government agencies and the individuals
they serve; state and local government personnel; professional
organizations and their members; students and teachers; and the general
public---all seek answers from the records we preserve.

## Our Vision {#our-vision .AR-2004-Head-2-Char-Char}

The National Archives is a public trust on which our democracy depends.
It enables people to inspect for themselves the record of what
Government has done. It enables officials and agencies to review their
actions and help citizens holds them accountable. It ensures continuing
access to essential evidence that documents

-   ![](media/image3.jpeg){width="2.769291338582677in"
    height="2.730708661417323in"}the rights of American citizens,

-   the actions of Federal officials, and

-   the national experience.

To be effective, we at NARA must deter­mine what evidence is essential
for such doc­u­men­­ta­tion, ensure that Govern­ment creates such evi­dence,
and make it easy for users to ac­cess that evidence regardless of where
it is, or where they are, for as long as needed. We also must find
technologies, techniques, and part­ners worldwide that can help improve
service and hold down costs, and we must help staff mem­bers continuously
expand their capability to make the changes neces­sary to realize the
vision.

## Our Mission {#our-mission .AR-2004-Head-2-Char-Char}

NARA ensures, for the Citizen and the Public Servant, for the President
and the Congress and the Courts, ready access to essential evidence.

## Our Strategic Goals {#our-strategic-goals .AR-2004-Head-2-Char-Char}

NARA's strategic goals are set forth in our Strategic Plan, which we
revised in 2003. This revision acknowledged recent achievements,
especially in the e-Government arena; assessed new conditions facing us;
and committed us to measure our value to the taxpayer by setting
aggressive outcome-oriented performance targets.

Our five strategic goals are:

-   Essential evidence is created, identified, appropriately scheduled,
    and managed for as long as needed.

-   Electronic records are controlled, preserved, and made accessible
    for as long as needed.

-   Essential evidence is easy to access regardless of where it is or
    where users are for as long as needed.

-   All records are preserved in an appropriate environment for use as
    long as needed.

-   ![](media/image4.jpeg){width="5.507086614173228in"
    height="1.5515748031496064in"}NARA strategically manages and aligns
    staff, technology, and processes to achieve our mission.

## Our Organizational Structure {#our-organizational-structure .AR-2004-Head-2-Char-Char}

We carry out our mission through a national network of archives and
records services facilities stretching from Washington, DC, to the West
Coast, and from Atlanta to Anchor­age, including Presidential libraries
documenting administrations back to Herbert Hoover. Additionally, we
publish the *Federal Register,* administer the Information Secu­rity
Oversight Office (ISOO), and make grants for historical documentation
through the National Historical Publications and Records Commission
(NHPRC). We preserve and make available, in response to hundreds of
thousands of requests, the records on which the entitlements of
citizens, the credibility of Government, and the accuracy of history
depend. More and more people are using our services and gaining access
to our records through the Internet, whether by requesting copies of
records through our Inquire form at *Archives.gov*, commenting on
regulations at the Government-wide site *Regulations.gov*, searching
online databases of records and information, or engaging in a host of
other activities through *Archives.gov*. We continue to encourage this
trend, by adding online services and contributing to several of the
President's e-Government initiatives, so that citizens everywhere have
access to our vast holdings. The organiza­tional chart in figure 1
provides an overview of NARA's structure.

# NARA's Challenges and Management's Actions to Address These Challenges {#naras-challenges-and-managements-actions-to-address-these-challenges .AR-2004-Head-1-Char-Char}

We at the National Archives and Records Administration (NARA) take our
job of serving the public seriously. And never before have we played
such an indispensable role in our Government. We are doing this work in
the face of multiple challenges that affect the entire Government and
beyond:

-   The post--September 11 environment has forever changed our
    Government. We must deal with new and evolving concerns about
    security, continuity of opera­tions, and emergency preparedness.

-   The dramatic emergence of an electronic Government has brought to
    the fore new records management issues that have implications far
    beyond our Govern­ment. Inspired by the challenges of electronic
    records, NARA is transforming itself from an agency that manages
    predominantly paper to a leader in electronic records management.

-   Deterioration of both the holdings that NARA must keep for posterity
    and the facilities in which they are housed is a fact of life. We
    must address with a steady hand the never-ending challenge of
    maintaining and preserving our holdings---both paper and
    electronic---and our infrastructure---both physical facilities and
    information technology.

Our mission is to ensure that Government officials and the American
public have ready access to essential evidence, and this mission puts us
at the very heart of inter­gov­ern­men­tal electronic communication
challenges. After providing the 9/11 Commission with thousands of
documents crucial to their work, we now maintain the Commission's web
site and are processing all of the Commission's records for use by
Government officials and eventually the public. In response to requests
for documents related to Supreme Court Justice nominee John Roberts, we
provided both public and congressional access to tens of thousands of
documents from our holdings. By digitizing these documents and making
them available online, we ensured the broadest possible access to these
materials.

Whether publishing the emer­gency *Federal Register*, protecting the
vital records assets of Federal agencies nationwide, serving America's
veterans, meeting the challenges of electronic records, or displaying
our nation's Charters of Freedom---the Declaration of Independence, the
Constitution, and the Bill of Rights---to inspire the American public,
NARA plays a critical role in keeping America safe, secure, and focused
on our democratic ideals.

Following are just a few examples of the ways in which the Government
and the public are relying on NARA to meet vital needs.

-   The *Federal Register* must be published each business day,
    regardless of weather, terrorist attacks, or other emergencies that
    may close other Federal operations. Publication, even during
    emergencies, is critical because many of the actions that Executive
    departments and the President need to take require the legal
    authority that comes from publication in the *Federal Register*.

-   NARA responds to more than 1 million requests a year for information
    from or copies of Official Military Personnel Files (OMPFs). Many of
    these requests come from veterans, their families, or organizations
    working on behalf of veterans to verify their military service,
    apply for benefits, or research medical conditions. A veteran's
    ability to obtain a job, housing, or medical care often depends on
    our ability to meet their information needs quickly.

-   NARA protects the essential records of hundreds of Federal agencies
    and courts as well as the records of the Congress, the Supreme
    Court, and 13 Presidential administrations in 36 facilities
    nationwide. These records include everything from highly classified
    National Security Council policy memorandums to con­gres­sional
    committee records to architectural drawings of Federal facilities to
    satellite photographs of major cities to the tax returns of
    individual Ameri­cans. All of this information and more is saved for
    as long as needed because it is essential for the effective
    operations of our government, protecting the rights and entitle­ments
    of our citizens, understanding past decisions and informing future
    policy choices, holding appropriate officials accountable for their
    actions, and ensuring the safety and security of our country.

-   Our greatest challenge is to ensure that valuable electronic
    records---from electronic OMPFs to geographic information systems to
    State Department cable files to transportation security
    databases---are managed and preserved *over time* so that key
    information is not lost in obsolescent hardware and software. To
    meet this challenge, NARA is developing the Electronic Records
    Archives (ERA), a revolutionary system that will capture electronic
    information, regardless of its format, save it permanently, and make
    it accessible on whatever hardware or software is currently in use.

Let us turn to the specific challenges NARA faces:

***Security***. We store more than 27 mil­lion cubic feet of Federal
rec­ords in 36 facilities nationwide, and we have the vital
responsi­bil­ity to pro­tect these records, the staff who care for them,
and the public who visits our facili­ties to use them. To do this, we
must be able to face multiple types of threats and have to plan for a
variety of emer­gencies that may leave our facil­ities vulnerable or
require us to pro­vide shelter for staff and the public.

Currently, NARA has a material weakness in collections security. We are
responsible for the security of billions of records, and we do not have
item-level control over our holdings---nor can we ever expect to.
Because these records belong to the American people, however, they
cannot simply be locked away in bombproof vaults. We have three primary
challenges in this area:

-   We must provide quality service to our customers while instituting
    reasonable internal controls to prevent theft. We must also maintain
    documentation to support the recovery of alienated holdings and
    subsequent prosecution of those who would steal records that belong
    to all Americans.

-   We must take every reasonable measure possible to limit access to
    sensitive records and act expeditiously in coordinating efforts with
    appropriate law enforcement entities as warranted.

-   We must protect and safeguard our facilities, the staff who work in
    our facilities, and the people who visit our facilities to mitigate
    the potential for damage and destruction through both natural and
    deliberately precipitated acts.

-   Having an effective security posture requires that we take a big
    picture, holistic view of all our facilities and holdings. We are
    moving forward on the compre­hen­sive plan to address our security
    weaknesses that we discussed in our Per­for­mance and Accounta­bility
    Report last year.

***Facilities.*** Our 36 facilities are our first line of defense for
records preservation. Providing appropriate physical and environmental
storage conditions is the most cost-effective means to ensure records
preservation. We face an ongoing challenge, however, to ensure that all
of our facilities meet necessary standards for the storage of Federal,
and particularly archival, records. We also must ensure that other
entities that store Federal records comply with existing facility
standards. Our Strategic Plan includes several strategies for meeting
our goal to preserve all records in an appropriate environment for use
as long as needed. Our ability to meet our storage and preservation
challenges will be a key factor in the future course of our agency.

***Information Technology***. An important key to serving our Government
and public customers is having a reliable, expandable, high-capacity,
cost-efficient information technology and communi­cations infrastructure.
For us to be able to use auto­mation to streamline operations and achieve
cost-efficiencies, to develop Internet-based applica­tions for agency and
public access to information, and to provide direct online access to
electronic records and digital images, we must have a sound technical
infrastructure. In fact, if our applications perform poorly, we may
impede the work of other Federal agen­cies or the efforts of the public
to document their rights and entitlements.

The rapid pace of technological change and innovation in today's
environment does offer wide-ranging opportunities for improved
information management. Information tech­nol­ogy---particularly the World
Wide Web---has become integral to providing govern­ment services and
moving the Federal Government's immense stores of informa­tion and
services out of the "back office," onto the Internet, and into the home
and business sectors. As NARA moves to fully embrace e-Government and
seize new technological oppor­tu­nities, we must be able to quickly adapt
to new technologies and leverage tech­nical exper­tise to meet
expecta­tions for quality service.

***Human Resources.*** The proli­fer­ation of technology has forever
changed the nature of Federal record­keeping. Most Federal records are
now created elec­tron­ically, and users increas­ing­ly expect imme­diate
elec­tronic access to them. Traditional paper documents are being
over­taken by data­bases, digital images, digital sound, e-mail with
attach­ments, geographic informa­tion systems, web sites, and other
elec­tronic record formats. The challenges asso­ciated with ac­quiring,
preserv­ing, and making available these myriad elec­tronic records are
immense and can only be met through creativity, leadership,
entre­preneurship, and a willingness to think beyond the conventional.
The Federal Govern­ment is looking to NARA, as the nation's record
keeper, to deliver these creative, entrepre­neurial solutions.

We must respond to this call for leadership if we want to actively
deliver value and innovation rather than simply react to the changes
taking place around us. To do this, we must ensure that our staff has
the skills and competencies needed to provide leadership in records
services in the 21st century, and we must ensure that the systems and
pro­cesses we use to acquire and manage our staff are efficient,
streamlined, flexible, and appro­pri­ate for today's modern workforce.

![](media/image5.jpeg){width="3.235433070866142in"
height="2.677165354330709in"}Our Strategic Plan commits us to hiring,
developing, sustaining, and retaining staff according to the
competencies needed to achieve our strategic goals. In addition, the
President's Management Agenda and Human Capital Assessment and
Accountability Framework instruct agencies to engage in serious
consideration of the skills and compe­tencies needed to per­form the work
of the Govern­ment in the 21st century, to align human resources to
support mission-critical activities, and to streamline and en­hance
delivery of essential human resources services by lev­erag­ing technology
and other process flexibilities.

Our future success as the Government's leader for records services will
depend in large part on the staff that we hire today. We must ensure
that we have the right people in the right positions at the right time
to move the agency forward at this extraordinary time in our history.

**Personnel on Board**

  --------------------- --------------- --------- ----------- ------------- --------- ----------- -------------- --------- -----------
  All funds as of       **Washington,                         **Field                             **Nationwide             
  September 30, 2005    DC, Area**                            Locations**                         Total**                  

  Programs              Full-Time Perm  Other     Total       Full-Time     Other     Total       Full-Time Perm Other     Total
                                                              Perm                                                         

  Records Services      867             126       993         0             0         0           867            126       993

  Regional Records      88              9         97          1,056         277       1,333       1,144          286       1,430
  Services                                                                                                                 

  Presidential          139             8         147         281           74        355         420            82        502
  Libraries                                                                                                                

  Information Security  29              0         29          0             0         0           29             0         29
  Oversight Office                                                                                                         

  Federal Register      73              1         74          0             0         0           73             1         74

  National Historical   13              0         13          0             0         0           13             0         13
  Publications and                                                                                                         
  Records Commission                                                                                                       

  **TOTAL**             **1,209**       **144**   **1,353**   **1,337**     **351**   **1,688**   **2,546**      **495**   **3,041**
  --------------------- --------------- --------- ----------- ------------- --------- ----------- -------------- --------- -----------

***Records Access***. The Federal Government protects hundreds of
millions of classified documents at great expense. In this year's
assessment of declassification in the Executive branch, the Information
Security Oversight Office (ISOO) noted that the Federal Govern­ment's
classification system "cannot be depended upon to protect today\'s
sensitive national security information unless there is an ongoing
process to purge it of yesterday\'s secrets that no longer require
protection." This means undertaking automatic and sys­tem­atic
declassification, as well as mandatory declassification reviews, in
accordance with Executive Order 12958, as amended. Nevertheless,
declassification activity across the Government has been declining for
the past several years.

In its most recent report to the President, ISOO noted an increase in
both original classification and derivative classification decisions
made by the Federal Government. The rise in classification can be
attributed to a combination of factors, including a dramatic increase in
the number of national security operations in recent years, the
exponential increase in the Government's ability to produce information
(both classified and unclassified) through the use of information
technology, and likely over­classi­fi­ca­tion. Government faces the
perpetual challenge of balancing security concerns with the need to
share information. Too much classification unnecessarily impedes
effective information sharing. Too little classification subjects our
nation to potential harm. Pro­active oversight by an agency of its
security classification program is not a luxury. Allowing information
that will not cause damage to national security to remain in the
classification system, or to enter the system in the first instance,
places all classified information at needless increased risk.

Federal agencies have a deadline of December 31, 2009, to review and
resolve (by declas­sifying or exempting) their equities in
security-classified documents more than 25 years old that have been
referred to them by other agencies. We estimate that there are
approx­imately 80 million pages in NARA's holdings that must be acted on
by the agen­cies before the 2009 deadline. Many of these documents must
be reviewed by two or more agencies. We need to make these documents
available to the agencies in a system­atic fashion to enable them to
accomplish their missions, protect permanently valuable Federal records,
and prevent unauthorized releases of still sensitive infor­ma­tion.
Failure to establish a systematic process for handling referrals poses a
significant risk for inad­ver­tent release of still sensitive information.
If agencies resolve referrals in an ad hoc manner, the Government loses
control of the process. We will not be sure that all referred documents
had been acted on because we will have no way of tracking agency
actions. With no standard way of recording agency determinations, it is
likely that we will make mistakes in interpreting agency decisions when
records are processed for release. Without an organized referral
process, it will be impossible to meet the deadline.

Therefore, in cooperation with other agencies, NARA has established an
interagency referral center to provide a systematic approach to the
referral process for Federal records. In our first year of operation we
indexed approximately 1.5 million pages for referral, but the volume of
work remaining is too great to be accomplished by the 2009 deadline
without contract support.

Finally, classified records in our Presidential libraries pose a huge
challenge for us be­cause they are often extremely sensitive, filled with
multiple equities, and highly sought after by Government officials and
the public. The Reagan Library holds the next Presi­den­tial collec­tion to
which the Executive order must be applied and has classified hold­ings of
approx­i­mately 8 million pages. This represents more classified pages
than all of the previ­ous librar­ies combined. Previously, we have
implemented the Remote Archives Capture (RAC) Proj­ect, a collaborative
program among NARA, CIA, and other classifying agencies through which
classified Presidential materials at field locations are electron­ical­ly
scanned and sent to Washington for review by equity-holding agencies. So
far this project has scanned more than 2 million pages from the
Eisenhower, Kennedy, Johnson, Ford, and Car­ter Libraries, but the
dramatic increase in volume of classified records from the Reagan
administration presents significant challenges to our ability to comply
with the Executive order.

***Electronic Records Management***. In this world of exponentially
increasing volumes and formats of electronic records, having the ability
to find, manage, use, share, and dispose of records---which is the
essence of records management---is vital for the efficient and effective
functioning of the Federal Government. Records management is an
essential com­po­nent of knowledge management, and yet records and
information are rarely man­aged as agency business assets and records
management remains marginalized in many agencies. This undermines the
authenticity, reliability, integrity, and usability of Federal records
and information essential for Government business, particularly
electronic Govern­ment and public use.

This Government-wide challenge requires collaborative, creative
solutions with benefits that are obvious to Federal agencies. That is
why we are undertaking a multipronged approach to improving electronic
records management that relies on a suite of strategies, policies,
standards, and tools that facilitate the effective and efficient
management of Federal records. Ultimately, records management should
become so seamlessly inte­grated into agencies' business processes thatit
becomes "second nature"; what they would notice instead is that they can
easily find the information they need, when they need it, in a form they
can use to conduct their business. Getting to this outcome requires that
we both transform our own records management program and transform
records manage­ment across the Government. Given the urgent need to
improve delivery of Government services, enable the sharing of
information across agencies, and manage records and transactions more
effectively, we could not wait to undertake these trans­formations
sequentially. Therefore, we are leading collaborative projects in the
following areas to address both of these transformations simultaneously.

-   Records Management Initiatives---a series of coordinated NARA
    initiatives to transform NARA's approach to Federal records
    management for all records.

-   E-Government Initiatives---these include the ongoing Electronic
    Records Management E-Government Initiative and initiatives to
    implement the Interagency Committee on Government Information (ICGI)
    recommendations for section 207(e) of the E-Government Act of 2002.

-   Electronic Records Archives---the key tool that will allow NARA and
    Federal agencies to manage, preserve, and have access to electronic
    records over space and time.

We are also committed to working with our Inspector General (IG) to
identify and address significant challenges. The Inspector General's Top
Ten Management Challenges, which are highlighted in the IG's semiannual
reports to Congress and include the audits, investigations, and reviews
they have undertaken to identify and address them, are included in
appendix A.

**Performance Highlights**

## Spotlight on Education  {#spotlight-on-education .AR-2004-Head-2-Char-Char}

**Hands-On History Lets Learners Touch the Past**

***Tell me, I forget.***

***Show me, I remember.***

***Involve me, I understand.***

It is August 1948. President Harry S. Truman and the United States face
a serious international crisis: In an act of high-stakes brinksmanship,
the Soviet Union has sealed off the western sectors of Berlin. Winter is
approaching, and more than 2 million Germans are cut off from the basic
necessities of life. You are one of the President's closest advisers.
What advice do you offer him?

Fast forward to 2005. Midwestern students relive this and other
historical crises in the White House Decision Center (WHDC) at the
Truman Library and Museum in Indepen­dence, MO. Since the center's
opening in 2001, more than 18,000 youngsters from rural, suburban, and
urban schools have participated in its unique program of experiential
learning.

The center resembles the West Wing of the White House, com­plete with
brief­ing rooms, a press room, Presidential por­traits, and even
wain­scoting. In this realistic envi­ron­ment, parti­ci­pants assume the
roles of President Truman and his advisers, including the Secre­tary of
State, the Secretary of Defense, the Director of Central Intelli­gence,
and the press secre­tary. They read copies of actual historical
docu­ments---many once marked "top secret." They work together in
advisory teams; analyze options; and supply the President with facts,
recommendations, and assessments. Students also lead and participate in
a press briefing, and one student, portraying the President, announces a
course of action and fields penetrating questions from the media.
![](media/image6.jpeg){width="3.2715277777777776in"
height="2.248611111111111in"}

Along the way, students learn about history, government, and the
Presidency. They develop and apply skills in document analysis, problem
solving, cooperation, commu­nication, and leadership. And perhaps most
important, they come to see history as vivid, compelling, and
engaging---not just a matter of memorizing facts from a textbook.

"The WHDC provided my students with 'hands-on' history," observed one
Missouri teacher. "The past became the present---an interactive drama as
my freshmen lived the push and pull of conflicting opinions within the
halls of power, wrestled with the burden of the Presidency, and dealt
with the power of the press."

Students tend to put it more succinctly. As one high-school senior said,
"It just takes learning out of the books and puts it in your face---and
I love it."

Historical documents and other primary sources have an uncanny power to
capture the attention of even the most reluctant learner. Primary
sources are materials that were created by those who participated in or
witnessed the events of the past, and they bring the past to life with
an immediacy that textbooks cannot match. Studies have shown that when
students work with primary sources, they learn more and their critical
thinking skills improve. It's no wonder that primary sources are
specifically identified in a num­ber of places in the National Standards
for History.

NARA's enormous holdings of primary source materials constitute the
greatest single resource for transforming the study of history and
civics into a first-person experience. At its facilities across the
country, through publications, workshops, and a variety of other
programs, NARA puts primary sources into the hands of students and
teachers, and it trains teachers in the skills they need to incorporate
these materials into their lessons.

Early in his tenure as ninth Archivist of the United States, Allen
Weinstein asked staff to prepare a report outlining the education and
outreach efforts of the National Archives. The result was a 22-page,
single-spaced document listing programs and activities in the
Presidential libraries, regional archives, and Washington, DC--area
facilities. "I was amazed at how much we were doing," observed
Weinstein. "And that report wasn't even comprehensive."

These efforts go back many years. In 1977 NARA began publishing its
"Teaching With Documents" feature in *Social Education,* the journal of
the National Council for the Social Studies, the nation's largest
professional association for social studies teachers. Each "Teaching
With Documents" article examines a historical record from the National
Archives and guides teachers in using the record in the classroom. More
than 140 such articles have now been published, exploring the use of
letters, reports, forms, photo­graphs, patent drawings, and other records
as teaching tools.![](media/image7.jpeg){width="3.3229166666666665in"
height="2.729861111111111in"}

Also for many years, NARA has conducted the Primarily Teaching summer
institute for educators. The workshop brings teachers from around the
country and from many types of communities and schools to NARA's
Washing­ton, DC, headquarters. Under the guidance of NARA education
experts, each participant selects a specific topic, researches the topic
in the records of the National Archives, and develops a teaching unit to
take back to the classroom. The institute turns the teachers into
learners, exposing them to the excite­ment of hands-on investi­ga­tion,
analysis, and discovery---an experience they will then be able to
provide to their own students.

One teacher explained that the Primarily Teaching program had "opened up
a new vista" for him. "I remember on the first day of the course being
handed a copy of Richard Nixon\'s resignation letter," he said. "History
jumped out at me from that page, and I knew that if I had access to
materials such as this, it would prove to be a gold mine in the
classroom."

This gold mine is about to go on the road. In response to the success of
and enthusiasm for Primarily Teaching, NARA has started planning to make
the institute available in other parts of the country. In 2006, pilot
programs will take place at NARA's regional archives in Laguna Niguel,
CA, and at the Eisenhower Library and Museum, in Abilene, KS.

Each of NARA's regional archives, Presidential libraries, and
Washington-area facilities is its own gold mine of materials, and, from
coast to coast, NARA units make these materials available to students
and teachers. They develop printed and electronic publi­ca­tions that
highlight the records held in their facilities, provide copies of the
records, train teachers in methods for incorporating the records into
their lessons, and demon­strate how the lessons relate to specific state
and national standards.

Across the country, NARA units also collaborate with other educational
institutions to make the excitement of primary sources available to
teachers and students. NARA's education office in Washington, its
regional archives, and its Presidential libraries all work extensively
with recipients of Teaching American History Grants. These grants,
spon­sored by the U.S. Department of Education and awarded to local
educational agencies, are in­tended to raise student achieve­ment by
improv­ing teachers' knowledge, understanding, and appreciation of
American history. Through on-site workshops and videoconferences, NARA
staff provide pro­fes­sional development opportu­nities for teachers,
training them in archival research techniques and in the use of primary
sources in the
classroom.![](media/image8.jpeg){width="2.1256944444444446in"
height="2.6333333333333333in"}

Staff across the country also are involved in National History Day, a
year-long educa­tional program that engages students in the discovery and
interpretation of history. Through this program, students conduct
research and create projects related to an annual theme; their projects
are judged at the local, state, and national levels. NARA staff provide
workshops for teachers, contribute lesson plans to an annual teachers'
guide, help students do archival research, serve as judges for local and
state contests, and even host contests. The Eisenhower Library has been
hosting the Kansas state finals for 23 years.

In 2005, thanks to the efforts of NARA's Mid Atlantic Region, the
National History Day program returned to Philadelphia after a lengthy
absence. Regional staff organized and led a collaborative effort of
local educational, cultural, and community organizations that
re-established the program in the city and provided teachers, students,
and parents with the resources and guidance necessary to participate. On
April 21, in the National Constitu­tion Center, National History Day
competition took place in Phila­delphia for the first time in almost two
decades.

A Philadelphia-area middle school principal was stunned by the impact
that the program had on his students---and in particular on one
youngster who had previously been unmotivated by his studies. "With this
young man," said the princi­pal, "the 'light bulb' clicked when he
participated in National History Day. I never saw him so en­gaged and
focused." The young man won a first-place ribbon for his National
History Day project---and has decided that he wants to go to college, a
goal to which he had not previously aspired. The principal has decided
to add more social studies teachers to his faculty. And NARA has started
working with other organizations to revitalize the National History Day
program in another major city: Washington, DC.

In a sense, education permeates everything that NARA does. NARA
preserves the records of America, enabling all citizens to learn about
their nation's history, their families' stories, and their own rights
and entitlements. Every time a NARA unit helps a researcher, holds a
genealogy workshop, offers a public lecture, or opens a new exhibit,
learning takes place. One of the most exciting learning opportunities of
the past year was provided by the opening of the Public Vaults, NARA's
new permanent interactive exhibit in the National Archives Building in
Washington, DC. The exhibit gives people of all ages the feeling of
going into the stacks and vaults of the National Archives to see the raw
material from which history is made. Several of the displays in the
Public Vaults are geared especially for young people. And virtually all
of the materials in the Public Vaults can bring history alive in the
classroom. ![](media/image9.jpeg){width="1.875in"
height="2.5520833333333335in"}

That's why, when NARA's Learning Center opens next year in the same
building, it will provide access to copies of each of the more than
1,000 records on display in the Public Vaults---and much more. The
center's ReSource Room will be the one-stop head­quarters for teachers
and parents seeking ways to bring history alive for their students and
children. Everything NARA's education specialists have written over the
decades about teaching with primary sources---whether based in
Washington, DC, or in the regional archives and Presidential
libraries---will be gathered here. Included will be background
materials, lesson plans, teachers guides, and, of course, copies of
his­torical documents and other records. The Learning Center will also
include the Learning Lab, which will provide a hands-on role-playing
experience in which students will take on the roles of researchers and
archivists.

Other experiential programs are in development across the agency. For
example, the Eisenhower Library is about to formally launch its
Five-Star Leaders program, in which students will take on the roles of
top Allied political and military leaders, analyze documents relating to
the Allied invasion of Hitler's Europe, and provide formal briefings,
with recommendations, to Supreme Headquarters, Allied Expeditionary
Forces. All of these programs will invite students to make direct,
immediate contact with events of the past.

Lee Ann Potter, head of NARA's education programs in Washington, likes
to tell of finding her own great-great grandfather's homestead
application among the billions of documents held by the National
Archives---and of her husband's response. She recalls, "His amazement at
the tri-folded, 8-page, yellowing document from 1872 prompted him to
say, 'I can't believe it was actually his. I can't believe it is here.
And I can't believe they are letting you touch it."

Those reactions encapsulate perhaps the three most important reasons for
teaching history with primary sources: They are a part of the past. They
are with us today. And touching them allows us, quite literally, to
touch the past and connect with it.

##  {#section-1 .AR-2004-Head-2-Char-Char .unnumbered}

## Spotlight on Partnerships {#spotlight-on-partnerships .AR-2004-Head-2-Char-Char}

Although the National Archives and Records Administration stands as the
sole Federal agency charged with preserving and making accessible the
Government's records, we are not alone in carrying out our mission.

In providing "ready access to essential evidence"---the records that
document the rights of our citizens, the decisions of our Government
officials, and our national experience---we draw assistance and support
from a wide variety of private institutions, other Government agencies,
and individuals:

-   At the National Archives Building in Washington, D.C., visitors who
    come to see the parchment documents that created America find much
    more. A privately supported, state-of-the-art exhibition called the
    Public Vaults traces the story of our nation through a unique
    display of 1,100 records from deep within NARA's stacks.

-   At major universities, private research firms, and other Federal
    agencies, NARA has been working with experts in information
    technology and computer science. They've been developing ways to
    preserve for all time the digital records of our government in the
    Electronic Records Archives.

-   In every section of the country, staff at our regional archives and
    Presidential libraries have nurtured strong and enduring
    relationships with local cultural, educational, and genealogical
    groups. Our partners enjoy access to the records of our rich
    history, and we find new audiences for discovering the nation's
    story through primary sources.

These collaborations---and the benefits they bring to all
Americans---are possible because of our strong and vibrant network of
public-private partnerships, collaborations, and joint ventures.

![](media/image10.jpeg){width="3.9681102362204723in"
height="3.0070866141732284in"}Over the years, these arrangements---some
formal, some infor­mal---have become part of the fabric of NARA at all
levels. They have been developed by the agen­cy as a whole, var­i­ous units
within NARA, and individual staff mem­bers who have intro­duced the
National Archives to new audi­ences through profes­sional and personal
ties with community organ­i­za­tions, schools, and genealogy groups.

By partnering with others, our reach and our impact are much greater. In
Washington, we work closely with the Foundation for the National
Archives, created in 1992 to support and develop interest in our
programs and our vast resources.

As a result of the Foundation's work over the past several years, the
National Archives has received millions of dollars from private donors
to help finance all or part of ele­ments of the National Archives
Experience, a set of seven interconnected components that offer a
variety of ways to explore the nation's records and uncover the stories
they tell.

These components include the William G. McGowan Theater, the Lawrence F.
O'Brien Gallery, the Public Vaults, the Learning Center, and the
National Archives Experience portion of NARA's public web site,
*Archives.gov.* The Foundation also operates the popular Archives Shop
in the National Archives Building, which features a wide variety of
National Archives--branded merchandise.

The Foundation's partners and supporters have included the William G.
McGowan Charitable Fund, the family of Lawrence F. O'Brien, Dell Inc.,
Maryland philanthropists Willard Hacker­man and Alan Voorhees, and the
New York Life Foundation. The Foundation has also partnered on
individual projects with U.S. News & World Report and Smith Barney.

At the McGowan Theater, we have, along with the family of the late
Charles Guggen­heim, established the Charles Guggenheim Center for the
Documentary Film at the National Archives. An agreement with the Academy
of Motion Picture Arts and Sciences makes us the Mid-Atlantic venue for
the Academy's documentary film Oscar nominees and other special events.

One of the strategic challenges now facing the National Archives is how
to preserve and make acces­sible for years, decades, even centuries, the
electronic records of what we call e-Government.

The response to this challenge is the Electronic Records Archives (ERA).
It is fundamental to e-Government in that it will allow these records to
be managed and preserved over time and space. The stakes are high, and
failure is not an option.

To help us create ERA, we formed working partnerships with those
institutions on the frontier of research to learn how best to pre­serve
information in electronic format long after the hardware and software
that created it are out of use.

The collaborations on ERA have allowed us to tap the knowledge and
abilities of world-class re­search­ers in such prominent insti­tu­tions as
the Supercomputer Center at the University of Cali­for­nia at San Diego,
the Massachusetts Institute of Technology, the Na­tion­al Center for
Supercomputing Applications at the University of Illinois, the Georgia
Tech Research Institute, and the University of Maryland Institute for
Advanced Compu­ter Studies. We're also working with other Federal
agencies, such as the National Science Foundation, the Army Research
Laboratory, and the National Institute for Standards and Technology.
Other partners include industry groups and international organizations
that face similar challenges. These partnerships have allowed us to gain
far more tech­nical insights and information than we could have on our
own.

With the awarding of the contract for ERA to Lockheed Martin Corp. in
September 2005, we also appointed an advisory committee on the
Electronic Records Archives. It is made up of experts in computer
science, information technology, archival science, records man­age­­ment,
information science, law, history, genealogy, and education.

NARA has taken a leadership role in partnering with professional
organizations dealing with records and archives on a program called "New
Skills for Archivists," which seeks to identify the skills needed in the
new world of electronic records.

While the National Archives Experience and the Electronic Records
Archives involve two of our best-known partnerships, they represent only
a portion of our network of collabor­ations and partnerships. Throughout
the agency, at all levels, other partnerships serve to advance NARA
pro­grams and services and to bring NARA to new audiences, new
stake­holders, and new customers.

This is happening not only in Washington, DC, but in our regional
archives and Presi­dential libraries. At each of the libraries, a
nonprofit foundation supports a broad spec­trum of innovative and
insightful public, education, and information programs so that young and
old alike can learn about history from the documents and the artifacts
that were the backdrop of history as it was being made.

![](media/image11.jpeg){width="3.209055118110236in"
height="2.7818897637795277in"}For five years, NARA has part­nered with
Howard University in Washington, DC, to significantly enhance access to
one of the most valuable sources of African Ameri­can genealogical
infor­mation: the records of the Bureau of Refugees, Freedmen, and
Abandoned Lands. While NARA microfilms the rec­ords, Howard, with a grant
from the Peck Stacpoole Founda­tion, is preparing the indexes. The
project is to be completed in fiscal year 2006. Earlier, the University
of Florida assisted NARA in putting the Florida records on microfilm.

NARA and the Library of Congress collaborate on a number of projects
aimed at improv­ing the preservation and storage of documents and
artifacts. In FY 2005, the two agencies began discussions on expanding
their research relationship to create a Joint Preservation Research
Agenda, which will broaden their knowledge of methods to conserve and
pre­serve valuable records and artifacts.

In our role as "First Preserver," NARA has joined with professional
archival and records management organizations to provide assistance in
preserving and conserving damaged records in hurricane-battered Gulf
Coast states. On its own, NARA has partnered with the Federal Emergency
Management Agency on records recovery activities in New Orleans. We have
also partnered with the State of Mississippi to provide training for
individuals working on records recovery and with the Federal Bureau of
Investigation for training and technical guidance.

In late 2004, NARA partnered with U.S. News & World Report and Smith
Barney to sponsor the inaugural exhibit in the Lawrence F. O'Brien
Gallery. A collection of Presidential photographs, called "The American
Presidency: Photographic Treasures of the National Archives" featured
images of the private moments of America's most public person.

Our Southeast regional archives in Atlanta, along with the Carter and
Johnson Libraries and the Martin Luther King, Jr., National Historic
Site and others, co-sponsored a special exhibition in 2005 to
commemorate the 40th anniversary of the enactment of the Voting Rights
Act of 1965.

NARA's Pacific Region in San Francisco has partnered with the University
of California at Berkeley to produce a web site called "Case Files for
Early Immigrants to San Fran­cisco and Hawaii," a trove of information
for Asian American genealogy. The web site is supported by the
university.

Our Center for Legislative Archives is one of many partners involved in
the new Capitol Visitor Center, a 580,000-square-foot addition beneath
the Capitol's east plaza. A 16,500-square-foot exhibit gallery will
feature original House and Senate records pre­served at the Center, other
historical records from NARA, and documents from the Library of
Con­gress. NARA will gain a new audience in the millions of visitors to
the Capitol each year.

![](media/image12.jpeg){width="2.645275590551181in"
height="2.5070866141732284in"}For five years, NARA worked with
Middle­march Films, NOVA/WGBH in Boston, and the Public Broadcasting
Service to produce a film, *Preserving the Charters of Freedom,* that is
now shown twice daily in the McGowan Theater. The film traces the story
of how the Declaration of Independence, the Constitu­tion, and the Bill
of Rights were taken out of their old encasements, given conservation
treatment, and placed in new state-of-the-art encasements during the
renovation of the Rotunda.

Throughout NARA---in Washington, the regional archives, and the
Presidential librar­ies---staff members work with elementary and
secondary schools and colleges and universities as well as individual
teachers and students to bring our holdings into the nation's
classrooms. These efforts include work with Teaching American History
grants and the National History Day competitions at local, state, and
national levels.

Several of our Presidential libraries---Kennedy, Ford, Johnson, Clinton,
and Bush---are located on, adjacent to, or near university campuses and
are valuable resources for graduate and undergraduate students studying
American history or public policy.

The Eisenhower Library in Abilene, KS, has a formal arrangement with
Kansas State University's Institute for Military History and 20th
Century American Studies in Man­hattan, KS, and the Army's Command and
General Staff College at Fort Leaven­worth, KS. The library helps host
major conferences and serves as a rich resource and a portal to NARA for
the university's online doctoral program in military history.

Many other partnerships take the form of loans of documents. For
example, NARA has recently loaned Louisiana Purchase documents to
various institutions to commemorate the 200th anniversary of the treaty.
The National Museum of the American Indian has borrowed various Indian
treaties and documents. NARA loaned the Library of Congress a variety of
documents, including President Harry S. Truman's recognition of the
State of Israel, for its exhibit "From Haven to Home," which
commemorated 350 years of Jewish life in America.

Around the nation, our regional archives work with various groups,
especially genealogy organizations, to familiarize them with the records
NARA holds and how best to access and research them. Our Presidential
libraries are often the site of symposia, celebrations, or special
events co-sponsored with their affiliated institute or foundation or
with other organizations or institutions.

Today, NARA is rich in partnerships, collaborations, joint projects,
document loans, and other arrangements with other public and private
institutions that allow us to do things that we simply could not do
otherwise.

By bringing America's records to new audiences, these partnerships help
us broaden our reach and our ability to share the primary sources of
America's story with Americans.

+-----------------------+---------+---------+-------+-------+-------+
| ### Using the Na      |         |         |       |       |       |
| tional Archives and R |         |         |       |       |       |
| ecords Administration |         |         |       |       |       |
|                       |         |         |       |       |       |
| FY 2005               |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
|                       | *       | *       | **Wr  | **Pub | **Mus |
|                       | *Resear | *Resear | itten | lic** | eum** |
|                       | chers** | chers** | Reque |       |       |
|                       |         |         | sts** | *     | **    |
|                       | **Micr  | **      |       | *Prog | Visit |
|                       | ofilm** | Other** |       | ram** | ors** |
|                       |         |         |       |       |       |
|                       |         | **Re    |       | **A   |       |
|                       |         | cords** |       | ttend |       |
|                       |         |         |       | ees** |       |
+-----------------------+---------+---------+-------+-------+-------+
| **Washington, DC,     | **2     | **6     | **38, | **2,  | **1   |
| Area**                | 6,109** | 5,803** | 173** | 152** | ,003, |
|                       |         |         |       |       | 006** |
+-----------------------+---------+---------+-------+-------+-------+
| **Office of Regional  |         |         |       |       |       |
| Records Services**    |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region      | 7,469   | 943     | 2,258 | 1,339 | ---   |
| (Boston)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region      | 2,853   | ---     | 933   | 655   | ---   |
| (Pittsfield)          |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region (New | 5,921   | 1,681   | 4,450 | 674   | ---   |
| York)                 |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Mid Atlantic Region   | 6,648   | 342     | 1,266 | 513   | ---   |
| (Philadelphia)        |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Southeast Region      | 4,253   | 523     | 2,167 | 137   | ---   |
| (Atlanta)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Great Lakes Region    | 2,934   | 404     | 3,614 | 162   | ---   |
| (Chicago)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Great Lakes Region    | ---     | ---     | ---   | 82    | ---   |
| (Dayton)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Central Plains Region | 2,531   | 497     | 2,199 | 751   | ---   |
| (Kansas City)         |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Southwest Region      | 4,333   | 1,087   | 3,419 | 402   | ---   |
| (Fort Worth)          |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Rocky Mountain Region | 3,312   | 925     | 437   | 609   | ---   |
| (Denver)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region        | 4,178   | 603     | 1,474 | 432   | ---   |
| (Laguna Niguel)       |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region (San   | 3,479   | 1,239   | 2,797 | 373   | ---   |
| Bruno)                |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region        | 1,565   | 465     | 413   | ---   | ---   |
| (Anchorage)           |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Alaska Region | 4,883   | 940     | 1,503 | 1,038 | ---   |
| (Seattle)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| National Personnel    | ---     | 74      | 1,02  | ---   | ---   |
| Records Center        |         |         | 4,569 |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| **Regional Records    | **5     | **      | **1   | **7,  | ---   |
| Services Total**      | 4,359** | 9,723** | ,051, | 167** |       |
|                       |         |         | 499** |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| **Presidential        |         |         |       |       |       |
| Libraries**           |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Hoover                | ---     | 324     | 1,351 | 3     | 5     |
|                       |         |         |       | 3,163 | 5,564 |
+-----------------------+---------+---------+-------+-------+-------+
| Roosevelt             | ---     | 1,439   | 2,949 | 1     | 10    |
|                       |         |         |       | 4,961 | 6,194 |
+-----------------------+---------+---------+-------+-------+-------+
| Truman                | ---     | 830     | 2,462 | 5,282 | 9     |
|                       |         |         |       |       | 4,540 |
+-----------------------+---------+---------+-------+-------+-------+
| Eisenhower            | 13      | 1,222   | 3,523 | 1     | 6     |
|                       |         |         |       | 1,735 | 9,980 |
+-----------------------+---------+---------+-------+-------+-------+
| Kennedy               | ---     | 1,314   | 3,037 | 4     | 18    |
|                       |         |         |       | 5,732 | 7,354 |
+-----------------------+---------+---------+-------+-------+-------+
| Johnson               | ---     | 1,515   | 2,871 | 6,263 | 22    |
|                       |         |         |       |       | 4,078 |
+-----------------------+---------+---------+-------+-------+-------+
| Nixon                 | ---     | 1,600   | 2,005 | 600   | ---   |
+-----------------------+---------+---------+-------+-------+-------+
| Ford                  | ---     | 1,033   | 2,028 | 1     | 4     |
|                       |         |         |       | 9,458 | 8,336 |
+-----------------------+---------+---------+-------+-------+-------+
| Carter                | ---     | 723     | 1,092 | 176   | 7     |
|                       |         |         |       |       | 6,515 |
+-----------------------+---------+---------+-------+-------+-------+
| Reagan                | ---     | 848     | 601   | 5     | 29    |
|                       |         |         |       | 0,122 | 7,465 |
+-----------------------+---------+---------+-------+-------+-------+
| Bush                  | ---     | 279     | 1,295 | 2     | 13    |
|                       |         |         |       | 0,975 | 2,327 |
+-----------------------+---------+---------+-------+-------+-------+
| Clinton               | ---     | 33      | 2,733 | 2     | 44    |
|                       |         |         |       | 7,508 | 7,788 |
+-----------------------+---------+---------+-------+-------+-------+
| **Presidential        | **13**  | **1     | **25, | *     | **1   |
| Libraries Total**     |         | 1,160** | 947** | *235, | ,740, |
|                       |         |         |       | 975** | 141** |
+-----------------------+---------+---------+-------+-------+-------+
| **TOTAL**             | **8     | **8     | **1   | *     | **2   |
|                       | 0,481** | 6,686** | ,115, | *245, | ,743, |
|                       |         |         | 619** | 294** | 147** |
+-----------------------+---------+---------+-------+-------+-------+

![](media/image13.jpeg){width="0.0in" height="0.0in"}

## Performance Overview {#performance-overview .AR-2004-Head-2-Char-Char}

We break down our five strategic goals into long-range performance
targets and set annu­al targets in our Annual Performance Plan each year.
The following chart provides a synopsis of our FY 2005 performance.
Details of some of this year's major accom­plish­ments under each
strategic goal follow the chart.

### Snapshot of 2005 Performance {#snapshot-of-2005-performance .AR-2004-Head-3}

+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Strategic Goal 1: *Essential  |     |     |     |     |     |   |   |     |
| Evidence Is Created,            |     |     |     |     |     |   |   |     |
| Identified, Appropriately       |     |     |     |     |     |   |   |     |
| Scheduled, and Managed for as   |     |     |     |     |     |   |   |     |
| Long as Needed.***              |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| 1.1: By 2008, 95% of agencies   |     |     |     |     |     |   |   |     |
| view their records management   |     |     |     |     |     |   |   |     |
| program as a positive tool for  |     |     |     |     |     |   |   |     |
| asset and risk management.      |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 1.2: By 2008, 95% of approved   |     |     |     |     |     |   |   |     |
| capital asset plans have        |     |     |     |     |     |   |   |     |
| approved records schedules by   |     |     |     |     |     |   |   |     |
| the time those systems begin    |     |     |     |     |     |   |   |     |
| creating records.               |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 1.3: By 2008, 95% of customers  |     |     |     |     |     |   |   |     |
| are satisfied with NARA         |     |     |     |     |     |   |   |     |
| scheduling and appraisal        |     |     |     |     |     |   |   |     |
| services.                       |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   | * |   |     |
|                                 | 001 | 002 | 003 | 004 | **2 | * |   |     |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 | 2 |   |     |
|                                 | tua | tua | tua | tua | Tar | 0 |   |     |
|                                 | l** | l** | l** | l** | get | 0 |   |     |
|                                 |     |     |     |     | *** | 5 |   |     |
|                                 |     |     |     |     |     | A |   |     |
|                                 |     |     |     |     |     | c |   |     |
|                                 |     |     |     |     |     | t |   |     |
|                                 |     |     |     |     |     | u |   |     |
|                                 |     |     |     |     |     | a |   |     |
|                                 |     |     |     |     |     | l |   |     |
|                                 |     |     |     |     |     | * |   |     |
|                                 |     |     |     |     |     | * |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Annual percent of targeted      | 100 | 100 | 100 | 100 | *   | 1 |   |     |
| assistance partnership          |     |     |     |     | 95* | 0 |   |     |
| agreements delivering the       |     |     |     |     |     | 0 |   |     |
| results promised.               |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Median time for records         | 237 | 470 | 155 | 253 | *2  | 3 |   |     |
| schedule items completed (in    |     |     |     |     | 00* | 7 |   |     |
| calendar days).                 |     |     |     |     |     | 2 |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Strategic Goal 2: *Electronic |     |     |     |     |     |   |   |     |
| Records Are Controlled,         |     |     |     |     |     |   |   |     |
| Preserved, and Made Accessible  |     |     |     |     |     |   |   |     |
| for as Long as Needed.***       |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| 2.1: By 2008, NARA's Records    |     |     |     |     |     |   |   |     |
| Center Program accepts and      |     |     |     |     |     |   |   |     |
| services electronic records.    |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 2.2: By 2008, 80% of scheduled  |     |     |     |     |     |   |   |     |
| archival electronic records are |     |     |     |     |     |   |   |     |
| accessioned by NARA at the      |     |     |     |     |     |   |   |     |
| scheduled time.                 |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 2.3: By 2008, 80% of archival   |     |     |     |     |     |   |   |     |
| electronic records are managed  |     |     |     |     |     |   |   |     |
| at the appropriate level of     |     |     |     |     |     |   |   |     |
| service.                        |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 2.4: By 2008, the median time   |     |     |     |     |     |   |   |     |
| from the transfer of archival   |     |     |     |     |     |   |   |     |
| electronic records to NARA      |     |     |     |     |     |   |   |     |
| until they are available for    |     |     |     |     |     |   |   |     |
| access is 35 days or less.      |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 2.5: By 2008, the per-megabyte  |     |     |     |     |     |   |   |     |
| cost for managing archival      |     |     |     |     |     |   |   |     |
| electronic records through the  |     |     |     |     |     |   |   |     |
| Electronic Records Archives     |     |     |     |     |     |   |   |     |
| decreases each year.            |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   |   | * |     |
|                                 | 001 | 002 | 003 | 004 | **2 |   | * |     |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 |   | 2 |     |
|                                 | tua | tua | tua | tua | Tar |   | 0 |     |
|                                 | l** | l** | l** | l** | get |   | 0 |     |
|                                 |     |     |     |     | *** |   | 5 |     |
|                                 |     |     |     |     |     |   | A |     |
|                                 |     |     |     |     |     |   | c |     |
|                                 |     |     |     |     |     |   | t |     |
|                                 |     |     |     |     |     |   | u |     |
|                                 |     |     |     |     |     |   | a |     |
|                                 |     |     |     |     |     |   | l |     |
|                                 |     |     |     |     |     |   | * |     |
|                                 |     |     |     |     |     |   | * |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent increase in number of   | --- | --- | --- | 51  | *   |   | 2 |     |
| archival electronic holdings    |     |     |     |     | 20* |   | 0 |     |
| accessible online.              |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Median time from the transfer   | --- | --- | 450 | 736 | *2  |   | 4 |     |
| of archival electronic records  |     |     |     |     | 50* |   | 1 |     |
| to NARA until they are          |     |     |     |     |     |   | 3 |     |
| available for access (in        |     |     |     |     |     |   |   |     |
| calendar days).                 |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of NARA's electronic    | 97  | 98  | 97  | 93  | *   |   | 9 |     |
| holdings stabilized in          |     |     |     |     | 80* |   | 9 |     |
| preparation for their transfer  |     |     |     |     |     |   | . |     |
| to the Electronic Records       |     |     |     |     |     |   | 7 |     |
| Archives.                       |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Strategic Goal 3: *Essential  |     |     |     |     |     |   |   |     |
| Evidence Is Easy to Access      |     |     |     |     |     |   |   |     |
| Regardless of Where It Is or    |     |     |     |     |     |   |   |     |
| Where Users Are for as Long as  |     |     |     |     |     |   |   |     |
| Needed.***                      |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| 3.1: By 2007, access to records |     |     |     |     |     |   |   |     |
| and services and customer       |     |     |     |     |     |   |   |     |
| satisfaction levels meet or     |     |     |     |     |     |   |   |     |
| exceed NARA's published         |     |     |     |     |     |   |   |     |
| standards.                      |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.2: By 2007, 70% of NARA       |     |     |     |     |     |   |   |     |
| services are available online.  |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.3: By 2008, 80% of NARA       |     |     |     |     |     |   |   |     |
| archival holdings are described |     |     |     |     |     |   |   |     |
| in an online catalog.           |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.4: By 2007, Government-wide   |     |     |     |     |     |   |   |     |
| holdings of 25-year-old or      |     |     |     |     |     |   |   |     |
| order records are declassified, |     |     |     |     |     |   |   |     |
| properly exempted, or           |     |     |     |     |     |   |   |     |
| appropriately referred under    |     |     |     |     |     |   |   |     |
| the provisions of Executive     |     |     |     |     |     |   |   |     |
| Order 12958, as amended,        |     |     |     |     |     |   |   |     |
| through a series of ISOO-led    |     |     |     |     |     |   |   |     |
| interagency efforts.            |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.5: By 2007, NARA archival     |     |     |     |     |     |   |   |     |
| holdings of 25-year-old or      |     |     |     |     |     |   |   |     |
| older records are declassified, |     |     |     |     |     |   |   |     |
| properly exempted, or           |     |     |     |     |     |   |   |     |
| appropriately referred under    |     |     |     |     |     |   |   |     |
| the provisions of Executive     |     |     |     |     |     |   |   |     |
| Order 12958, as amended.        |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.6: By 2007, 10% of records of |     |     |     |     |     |   |   |     |
| a two-term President or 15% of  |     |     |     |     |     |   |   |     |
| records for a one-term          |     |     |     |     |     |   |   |     |
| President are open and          |     |     |     |     |     |   |   |     |
| available for research at the   |     |     |     |     |     |   |   |     |
| end of the 5-year               |     |     |     |     |     |   |   |     |
| post-Presidential period        |     |     |     |     |     |   |   |     |
| specified in the Presidential   |     |     |     |     |     |   |   |     |
| Records Act.                    |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 3.7: By 2007, 90% of all        |     |     |     |     |     |   |   |     |
| NHPRC-assisted projects produce |     |     |     |     |     |   |   |     |
| results promised in approved    |     |     |     |     |     |   |   |     |
| grant applications.             |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   |   | * |     |
|                                 | 001 | 002 | 003 | 004 | **2 |   | * |     |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 |   | 2 |     |
|                                 | tua | tua | tua | tua | Tar |   | 0 |     |
|                                 | l** | l** | l** | l** | get |   | 0 |     |
|                                 |     |     |     |     | *** |   | 5 |     |
|                                 |     |     |     |     |     |   | A |     |
|                                 |     |     |     |     |     |   | c |     |
|                                 |     |     |     |     |     |   | t |     |
|                                 |     |     |     |     |     |   | u |     |
|                                 |     |     |     |     |     |   | a |     |
|                                 |     |     |     |     |     |   | l |     |
|                                 |     |     |     |     |     |   | * |     |
|                                 |     |     |     |     |     |   | * |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of written requests     | 93  | 93  | 94  | 95  | *   |   | 9 |     |
| answered within 10 working      |     |     |     |     | 95* |   | 6 |     |
| days.                           |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of Freedom of           | 27  | 76  | 61  | 65  | *   |   | 8 |     |
| Information Act requests for    |     |     |     |     | 90* |   | 0 |     |
| Federal records completed       |     |     |     |     |     |   |   |     |
| within 20 working days.         |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   |   |   | **2 |
|                                 | 001 | 002 | 003 | 004 | **2 |   |   | 005 |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 |   |   | Ac  |
|                                 | tua | tua | tua | tua | Tar |   |   | tua |
|                                 | l** | l** | l** | l** | get |   |   | l** |
|                                 |     |     |     |     | *** |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of requests for         | 7   | 40  | 37  | 75  | *   |   |   | 88  |
| military service separation     |     |     |     |     | 95* |   |   |     |
| records at the National         |     |     |     |     |     |   |   |     |
| Personnel Records Center in St. |     |     |     |     |     |   |   |     |
| Louis answered within 10        |     |     |     |     |     |   |   |     |
| working days.                   |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of items requested in   | 93  | 94  | 96  | 98  | *   |   |   | 98  |
| our research rooms furnished    |     |     |     |     | 95* |   |   |     |
| within one hour of request or   |     |     |     |     |     |   |   |     |
| scheduled pull time.            |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of customers with       | 9   | 9   | 9   | 9   | *   |   |   | 9   |
| appointments for whom records   | 9.7 | 9.8 | 9.9 | 9.3 | 99* |   |   | 9.4 |
| are waiting at the appointed    |     |     |     |     |     |   |   |     |
| time.                           |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of Federal agency       | 93  | 92  | 94  | 96  | *   |   |   | 97  |
| reference requests in Federal   |     |     |     |     | 95* |   |   |     |
| records centers that are ready  |     |     |     |     |     |   |   |     |
| when promised to the customer.  |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of records center       | 99  | 99  | 99  | 99  | *   |   |   | 99  |
| shipments to Federal agencies   | .99 | .99 | .99 | .99 | 99* |   |   | .99 |
| that are the records they       |     |     |     |     |     |   |   |     |
| requested.                      |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of archival fixed-fee   | --- | 88  | 99  | 9   | *   |   |   | 9   |
| reproduction orders that are    |     |     |     | 9.9 | 80* |   |   | 7.2 |
| completed in 35 working days or |     |     |     |     |     |   |   |     |
| less.                           |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of education programs,  | 97  | 96  | 95  | 99  | *   |   |   | 99  |
| workshops, and training courses |     |     |     |     | 95* |   |   |     |
| meeting attendees'              |     |     |     |     |     |   |   |     |
| expectations.                   |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of NARA services        | 24  | 25  | 30  | 40  | *   |   |   | 50  |
| available online.               |     |     |     |     | 50* |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of traditional holdings | --- | 19  | 20  | 33  | *   |   |   | 42  |
| in an online catalog.           |     |     |     |     | 40* |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of artifact holdings in | --- | 19  | 17  | 40  | *   |   |   | 43  |
| an online catalog.              |     |     |     |     | 40* |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of electronic holdings  | --- | 0   | 0   | 10  | *   |   |   | 31  |
| in an online catalog.           |     | .02 | .02 |     | 10* |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Annual number of Presidential   | 322 | 332 | 470 | 500 | *3  |   |   | 563 |
| pages scanned (in thousands).   |     |     |     |     | 00* |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Cumulative percent of Clinton   | 1   | 1   | 1   | 2   | *5* |   |   | 3   |
| Presidential and Vice           |     |     |     |     |     |   |   |     |
| Presidential traditional        |     |     |     |     |     |   |   |     |
| holdings processed for opening  |     |     |     |     |     |   |   |     |
| January 20, 2006.               |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of NHPRC grant-funded   | 91  | 79  | 86  | 88  | *   |   |   | 85  |
| projects that produced results  |     |     |     |     | 87* |   |   |     |
| promised in grant applications. |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Strategic Goal 4: *All        |     |     |     |     |     |   |   |     |
| Records Are Preserved in an     |     |     |     |     |     |   |   |     |
| Appropriate Environment for Use |     |     |     |     |     |   |   |     |
| as Long as Needed***            |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| 4.1: By 2009, 100% of NARA's    |     |     |     |     |     |   |   |     |
| archival holdings are in        |     |     |     |     |     |   |   |     |
| appropriate space.              |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 4.2: By 2009, 100% of NARA      |     |     |     |     |     |   |   |     |
| records centers comply with the |     |     |     |     |     |   |   |     |
| October 2009 regulatory storage |     |     |     |     |     |   |   |     |
| standards.                      |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 4.3: By 2007, 50% of NARA's     |     |     |     |     |     |   |   |     |
| at-risk archival holdings are   |     |     |     |     |     |   |   |     |
| appropriately treated or housed |     |     |     |     |     |   |   |     |
| so as to retard further         |     |     |     |     |     |   |   |     |
| deterioration.                  |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   |   |   | **2 |
|                                 | 001 | 002 | 003 | 004 | **2 |   |   | 005 |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 |   |   | Ac  |
|                                 | tua | tua | tua | tua | Tar |   |   | tua |
|                                 | l** | l** | l** | l** | get |   |   | l** |
|                                 |     |     |     |     | *** |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Cost of archival storage space  | --- | --- | --- | \$6 | --- |   |   | \$6 |
| per cubic feet of traditional   |     |     |     | .11 |     |   |   | .48 |
| holdings stored.                |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of cumulative backlog   | 28  | 32  | 35  | 41  | *   |   |   | 47  |
| of NARA's at-risk archival      |     |     |     |     | 43* |   |   |     |
| holdings ever treated.          |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Strategic Goal 5. *NARA       |     |     |     |     |     |   |   |     |
| Strategically Manages and       |     |     |     |     |     |   |   |     |
| Aligns Staff, Technology, and   |     |     |     |     |     |   |   |     |
| Processes to Achieve Our        |     |     |     |     |     |   |   |     |
| Mission.***                     |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| 5.1: By 2008, the average time  |     |     |     |     |     |   |   |     |
| a leadership position remains   |     |     |     |     |     |   |   |     |
| unfilled is 30 days or less.    |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 5.2: By 2007, the percentages   |     |     |     |     |     |   |   |     |
| of NARA employees in            |     |     |     |     |     |   |   |     |
| underrepresented groups match   |     |     |     |     |     |   |   |     |
| their respective availability   |     |     |     |     |     |   |   |     |
| levels in the Civilian Labor    |     |     |     |     |     |   |   |     |
| Force.                          |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 5.3: By 2007, NARA accepts 100% |     |     |     |     |     |   |   |     |
| of the validated legal          |     |     |     |     |     |   |   |     |
| documents submitted             |     |     |     |     |     |   |   |     |
| electronically for publication  |     |     |     |     |     |   |   |     |
| in the *Federal Register.*      |     |     |     |     |     |   |   |     |
|                                 |     |     |     |     |     |   |   |     |
| 5.4: By 2008, all public        |     |     |     |     |     |   |   |     |
| network applications are        |     |     |     |     |     |   |   |     |
| available 99.9% of the time.    |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| **Performance Indicator**       | **2 | **2 | **2 | **2 | *   |   |   | **2 |
|                                 | 001 | 002 | 003 | 004 | **2 |   |   | 005 |
|                                 | Ac  | Ac  | Ac  | Ac  | 005 |   |   | Ac  |
|                                 | tua | tua | tua | tua | Tar |   |   | tua |
|                                 | l** | l** | l** | l** | get |   |   | l** |
|                                 |     |     |     |     | *** |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of staff having         | 48  | 80  | 93  | 91  | *   |   |   | 92  |
| performance plans linked to     |     |     |     |     | 95* |   |   |     |
| strategic outcomes.             |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of staff having staff   | --- | 1   | 91  | 52  | *   |   |   | 78  |
| development plans linked to     |     |     |     |     | 95* |   |   |     |
| strategic outcomes.             |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of applicant pools for  | 74  | 78  | 89  | 92  | *   |   |   | 95  |
| positions at grades GS-13 and   |     |     |     |     | 93* |   |   |     |
| above that contain people in    |     |     |     |     |     |   |   |     |
| underrepresented groups.        |     |     |     |     |     |   |   |     |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+
| Percent of public network       | --- | --- | --- | 9   | *97 |   |   | 9   |
| applications availability.      |     |     |     | 8.7 | .0* |   |   | 8.9 |
+---------------------------------+-----+-----+-----+-----+-----+---+---+-----+

##### Goal 1: Improving Records Management {#goal-1-improving-records-management .AR-2004-Head-4}

We completed the first full year of our redesigned records management
training program. With a Records Management Training Officer now part of
our NARA-wide records management team, we will continue to apply adult
education concepts and explore alternative delivery approaches in our
training efforts. Our program is designed to address new trends in
records management and the ongoing revolution in information technology
so that agency records professionals can play an important role in
process design, IT capital planning, and information and knowledge
management in their agencies. We completed our first year of our
certification program for individuals who successfully complete training
in Federal records management. The certification program is designed to
raise awareness and improve effectiveness of Federal records manage­ment,
increase the level of professionalism of those managing Federal records,
give Federal records professionals a set of benchmarks to gauge their
professional develop­ment, and give NARA the ability to better assess the
effectiveness of its training program. Participants who successfully
pass a series of examinations receive NARA\'s Certificate of Federal
Records Management Training, signed by the Archivist of the United
States. In our first year we certified 47 individuals.

We continue to support the President's e-Government initiatives through
the ERM Initiative, which is providing practical recordkeeping guidance
and tools to Federal agencies for managing electronic records. We are
the lead agency for the ERM Initiative project to develop records
management service components. This year we collaborated with records
management and enterprise information architecture stakeholders from
eighteen Federal agencies, NARA subject matter experts, and industry and
academic experts to develop a set of records management components, a
finalized set of func­tional requirements, and a prioritized list of
component activities. These require­ments serve as a baseline and
starting point for the procurement and development of records management
service components.

NARA is an executive sponsor of the *Interagency Committee on Government
Information* (ICGI) and was chair of the *Electronic Records Policy*
*Working Group* (ERPWG). Before ending its work in FY 2005, the ERPWG
produced a report offering recommendations for the effective management
of Government information on the Internet and other elec­tronic records.
NARA created the *Federal Records Council*, a 27-member interagency
committee to advise the Archivist and Federal agencies on all aspects of
records manage­ment, with special emphasis on the management of
electronic records. The Council, the successor to ERPWG, provides a
formal mechanism for agencies and NARA to identify strategies, best
practices, and solutions to electronic information and records issues.

This year, under the auspices of ICGI, we completed a draft of a Records
Management (RM) Profile in the Federal Enterprise Architecture (FEA). We
also continued work on an online Electronic Records Management (ERM)
Toolkit. The Toolkit, scheduled for a test launch in early FY 2006, will
be a NARA-managed Internet portal that will share ERM tools
government-wide.

We continue to offer *targeted assistance* to Federal agencies
nationwide with urgent records management problems. Through targeted
assistance partnerships, our records management experts spend time
on-site at the offices of other Federal agencies to train personnel,
help plan records inventories, assist in scheduling records for disposal
or transfer to NARA, and aid in writing records management plans. Since
1999, NARA has established 372 targeted assistance projects with 107
Federal agencies and field offices, of which 279 projects have been
completed.

##### Goal 2: Meeting Electronic Records Challenges {#goal-2-meeting-electronic-records-challenges .AR-2004-Head-4}

![](media/image14.wmf){width="2.861111111111111in"
height="4.097222222222222in"}In September 2005 we awarded to Lockheed
Martin Corporation the contract for the *Electronic Records Archives*
(ERA), the system that will capture electronic information, regardless
of its format, save it perma­nently, and make it accessible on what­ever
hard­ware or software is cur­rently in use. In our continuing effort to
remain accountable for ERA we formed a high-level committee of
recog­nized experts and leaders in their fields to advise and make
recommen­dations to the Archivist on issues related to the development,
implementation, and use of the ERA system. This Advisory Committee on
the Elec­tronic Records Archives will provide an ongoing structure for
bring­ing together experts in computer science and infor­ma­tion
technology, archival science and records manage~­~ment, infor­mation
sci­ence, law, history, genealogy, and education.

We now have more than 85 million logi­cal data records accessible online
through *Access to Archival Data­bases* (AAD), an early prototype of a
portion of the ERA system.

##### Goal 3: Expanding Opportunities for Access {#goal-3-expanding-opportunities-for-access .AR-2004-Head-4}

We have added more than 14,000 descriptions of our holdings to the
*Archival Research Catalog* (ARC) this year. ARC is an online catalog of
NARA's nation­wide holdings. We described 42 percent of our holdings in
ARC this year, surpassing our target of 40 percent.

In response to the appraisal of Official Military Personnel Files
(OMPFs) as permanent records, we established an Archival Programs
Division in the National Personnel Records Center (NPRC) to manage the
records and constructed an archival research room where members of the
public can examine the records available for research. The new archival
research room opened in May. The first batch of archival records made
available included nearly 1.2 million OMPFs of former U.S. Navy and
Marine Corps enlisted personnel who served in the military between 1885
and 1939. This first set of opened records also included the files of
150 "persons of exceptional promi­nence" who served in the military and
who died at least ten years ago. Among these files were the OMPFs of
John F. Kennedy, Elvis Presley, and Jackie Robinson.

![](media/image15.wmf){width="2.5625in" height="2.21875in"}We continued
to expand our *electronic services* through our *Enhancing NARA's Online
Services* program, in which we look for opportunities to make more of
our services available elec­tron­ically for both Federal agencies and the
public. We currently make 50 percent of our services available to the
public online. We expanded the functional capability of *Order Online!*
to allow customers to perform online searches to find micro­film
available for pur­chase, viewing, or renting and to order micro­form
products. Applicants may now submit grant applications to the National
Historical Publications and Records Commission (NHPRC) online through
*Grants.gov.*

We continue to collect public feedback about *Archives.gov* and our
other web sites through the American Customer Satisfaction Index (ACSI)
online surveys of our sites and major application interfaces such as ARC
and AAD. The results of these surveys helped guide the redesign of our
web site, *Archives.gov,* to make it more helpful to our customers
through improved navigation of the site. In recognition of our efforts
we won "Best Prac­tices, Best Web Design in 2005," a peer award voted by
Federal web managers throughout Govern­ment service. We used the web site
to facil­i­tate access to such high-demand documents as the 9/11
Commission's recently released "Staff Monograph on the Four Flights and
Civil Avia­tion Security," which is an adjunct to the frozen public
access version of the Com­mission's web site that is now a Federal record
man­aged by NARA. We also provided online digital copies of documents
from our holdings relating to Supreme Court nominee John Roberts. The
timely publica­tion of these documents online ensured the widest possible
access to these materials by the
public**.**![](media/image16.jpeg){width="2.8625in"
height="2.1944444444444446in"}

We continued to exceed our customer service targets in FY 2005 in nearly
every area. More than 96 percent of the written requests we received
from custo­mers were answered within 10 working days. Eighty-eight
percent of the requests for military service separa­tion records we
received were answered in 10 working days or less. Ninety-eight percent
of the items our customers requested in our research rooms were
furnished within one hour of request or the scheduled pull time. And 99
percent of our customers rated our educa­tional pro­grams, workshops, and
training programs as meeting their expectations.

##### Goal 4: Meeting Storage and Preservation Needs of Growing Quantities of Records {#goal-4-meeting-storage-and-preservation-needs-of-growing-quantities-of-records .AR-2004-Head-4}

Our major initiative in this area is the *renovation of the National
Archives Building*. In FY 2005 we finished all work in the base
renovation contract, with only work to replace electrical systems in the
archival storage areas and some refinishing of the Rotunda display cases
left to complete next year.

Four Presidents (President George W. Bush and former Presidents Jimmy
Carter, George H.W. Bush, and Bill Clinton), family members of other
Presidents, and approximately 30,000 people attended the dedication of
the Clinton Presidential Library and Museum on November 18, 2004. All
archival and artifact holdings from the Clinton admini­stra­tion are now
housed in this state-of-the-art facility that meets our storage
standards. The library's exhibit is now open to visitors, and the
library has its research room open with a small amount of material
available for research.

We also opened a new archival facility for the Southeast Region in
Morrow, GA. This facility consolidates operations previously housed in
three separate facilities in Georgia and Alabama and features ample
storage space that meets our environmental storage standards and
excellent facilities for our researchers and attendees of public
programs.

In response to *the risk assessment of the Official Military Personnel
Files (OMPFs)* we com­pleted at the NPRC, we began preser­vation work on
the oldest, most fragile records. These records, representing slightly
more than one percent of the files in the collection, date back to 1885
and contain data about Navy and Marine Corps enlisted personnel who
served prior to World War II. NARA's archival holdings at St. Louis will
gradually expand to include significant volumes of OMPFs and related
records.

##### Goal 5: Strategically Managing Our Resources {#goal-5-strategically-managing-our-resources .AR-2004-Head-4}

In FY 2005 our security program was enhanced by the update of NARA 804,
*Information Technology (IT) Systems Security*, and the inclusion of the
Security Architecture component in the Enterprise Architecture. We
further strengthened our program through the creation of IT governance
boards which provide strong support for config­ura­tion management of IT
systems that are in production and under development. We adopted
standardized configurations for a number of key operating systems, and
net­work monitoring was enhanced through the deployment of an Intrusion
Detection System. Classified IT systems were brought under centralized
management control, and NARA produced and tested a Disaster Recovery
Plan. These activities allowed us to close a longstanding material
weakness; however, we expect IT security to continue as a priority as we
rely more and more on our IT infrastructure to provide services to the
public.

We expanded the availability of electronic submission of *Federal
Register* documents using the *Electronic Editing and Publishing System*
(eDOCS). To date we have registered a total of 15 agencies to submit
documents electronically to the *Federal Register*. This year we used
eDOCS to manage more than 7,000 documents, approximately 22 percent of
our total workload this year. More than 142 million *Federal Register*
documents were re­trieved online by our customers. We are proud of our
efforts to make the workings of govern­ment more readily accessible to
citizens.

A more detailed examination of our FY 2005 performance can be found in
the Perfor­mance Section of this report.

##### Linking Our Budget to Our Objectives {#linking-our-budget-to-our-objectives .AR-2004-Head-4}

Our long-term objectives are tied directly to our budget. The chart
below illustrates, by strategic goal and long-term objective, the
resources allocated to each of these goals. (The resources obligated to
each of these goals are shown in figure 3 on p. 35.) The chart also
links the major budget functions to each of our long-term objectives.

+-------------------------------------+---+---+---+---+---+---+---+
| **NARA Goals & Long-Term            | > | > | > | > | > | > | > |
| Objectives**                        |   |   |   |   |   |   |   |
|                                     | R | A | E | R | T | N | R |
|                                     | e | r | l | e | r | H | e |
|                                     | c | c | e | v | u | P | p |
|                                     | o | h | c | o | s | R | a |
|                                     | r | i | t | l | t | C | i |
|                                     | d | v | r | v | > |   | r |
|                                     | s | e | o | i |   |   | s |
|                                     | > | s | n | n | F |   | > |
|                                     |   | - | i | g | u |   |   |
|                                     | S | R | c | > | n |   | & |
|                                     | e | e | > |   | d |   | > |
|                                     | r | l |   | F |   |   |   |
|                                     | v | a | R | u |   |   | R |
|                                     | i | t | e | n |   |   | e |
|                                     | c | e | c | d |   |   | s |
|                                     | e | d | o |   |   |   | t |
|                                     | s | > | r |   |   |   | o |
|                                     |   |   | d |   |   |   | r |
|                                     |   | S | s |   |   |   | a |
|                                     |   | e | > |   |   |   | t |
|                                     |   | r |   |   |   |   | i |
|                                     |   | v | A |   |   |   | o |
|                                     |   | i | r |   |   |   | n |
|                                     |   | c | c |   |   |   |   |
|                                     |   | e | h |   |   |   |   |
|                                     |   | s | i |   |   |   |   |
|                                     |   |   | v |   |   |   |   |
|                                     |   |   | e |   |   |   |   |
|                                     |   |   | s |   |   |   |   |
+=====================================+===+===+===+===+===+===+===+
| ######                              |   |   |   |   |   |   |   |
| ## Goal 1: \$17,029,000 and 148 FTE |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 1.1 By 2008, 95% of agencies view   |  |   |   |   |   |   |   |
| their records man­agement program as |   |   |   |   |   |   |   |
| a positive tool for asset and risk  |   |   |   |   |   |   |   |
| management.                         |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 1.2. By 2008, 95% of approved       |  |   |   |   |   |   |   |
| capital asset plans have approved   |   |   |   |   |   |   |   |
| records schedules by the time those |   |   |   |   |   |   |   |
| systems begin creating records.     |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 1.3. By 2008, 95% of customers are  |  |   |   |   |   |   |   |
| satisfied with NARA scheduling and  |   |   |   |   |   |   |   |
| appraisal services.                 |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| ***Goal 2: \$53,196,000 and 86      |   |   |   |   |   |   |   |
| FTE***                              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 2.1. By 2008, NARA's Records Center |   |   |  |  |   |   |   |
| Program accepts and services        |   |   |   |   |   |   |   |
| electronic records.                 |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 2.2. By 2008, 80% of scheduled      |  |   |  |   |   |   |   |
| archival electronic records are     |   |   |   |   |   |   |   |
| accessioned by NARA at the          |   |   |   |   |   |   |   |
| scheduled time.                     |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 2.3. By 2008, 80% of archival       |  |   |  |   |   |   |   |
| electronic records are managed at   |   |   |   |   |   |   |   |
| the appropriate level of service.   |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 2.4. By 2008, the median time from  |  |   |  |   |   |   |   |
| the transfer or archival electronic |   |   |   |   |   |   |   |
| records to NARA until they are      |   |   |   |   |   |   |   |
| available for access is 35 days or  |   |   |   |   |   |   |   |
| less.                               |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 2.5. By 2008, the per megabyte cost |   |   |  |   |   |   |   |
| of managing archival electronic     |   |   |   |   |   |   |   |
| records through the Electronic      |   |   |   |   |   |   |   |
| Records Archives decreases each     |   |   |   |   |   |   |   |
| year.                               |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| ***Goal 3: \$146,139,000 and 2,344  |   |   |   |   |   |   |   |
| FTE***                              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.1. By 2007, access to records and |  |  |   |  |  |   |   |
| services and customer satisfaction  |   |   |   |   |   |   |   |
| levels meet or exceed NARA's        |   |   |   |   |   |   |   |
| published standards.                |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.2. By 2007, 70% of NARA services  |  |   |   |  |   |   |   |
| are available online.               |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.3. By 2008, 80% of NARA archival  |  |   |   |   |   |   |   |
| holdings are described in an online |   |   |   |   |   |   |   |
| catalog.                            |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.4. By 2007, government-wide       |  |   |   |   |   |   |   |
| holdings of 25-year-old or older    |   |   |   |   |   |   |   |
| records are declassified, properly  |   |   |   |   |   |   |   |
| exempted, appropriately referred,   |   |   |   |   |   |   |   |
| or appropriately delayed under the  |   |   |   |   |   |   |   |
| provisions of Executive Order       |   |   |   |   |   |   |   |
| 12958, as amended, through a series |   |   |   |   |   |   |   |
| of ISOO-led interagency efforts.    |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.5. By 2007, NARA archival         |  |   |   |   |   |   |   |
| holdings of 25-year-old or older    |   |   |   |   |   |   |   |
| records are declassified, properly  |   |   |   |   |   |   |   |
| exempted, appropriately referred,   |   |   |   |   |   |   |   |
| or appropriately delayed under the  |   |   |   |   |   |   |   |
| provisions of Executive Order       |   |   |   |   |   |   |   |
| 12958, as amended.                  |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.6. By 2007, 10% of records of a   |  |   |   |   |   |   |   |
| two-term President or 15% of        |   |   |   |   |   |   |   |
| records for a one-term President    |   |   |   |   |   |   |   |
| are open and available for research |   |   |   |   |   |   |   |
| at the end of the 5-year            |   |   |   |   |   |   |   |
| post-Presidential period specified  |   |   |   |   |   |   |   |
| in the Presidential Records Act.    |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 3.7. By 2007, 90% of all            |   |  |   |   |   |  |   |
| NHPRC-assisted projects produce     |   |   |   |   |   |   |   |
| results promised in grant           |   |   |   |   |   |   |   |
| applications approved by the        |   |   |   |   |   |   |   |
| Commission.                         |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| ***Goal 4: \$63,981,000 and 151     |   |   |   |   |   |   |   |
| FTE***                              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 4.1. By 2009, 100% of NARA's        |  |   |   |   |   |   |  |
| archival holdings are in            |   |   |   |   |   |   |   |
| appropriate space.                  |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 4.2. By 2009, 100% of NARA records  |   |   |   |  |   |   |   |
| centers comply with the October     |   |   |   |   |   |   |   |
| 2009 regulatory storage standards.  |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 4.3. By 2007, 50% of NARA's at-risk |  |   |   |   |   |   |   |
| archival holdings are appropriately |   |   |   |   |   |   |   |
| treated or housed so as to retard   |   |   |   |   |   |   |   |
| further deterioration.              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| ***Goal 5: \$34,274,000 and 123     |   |   |   |   |   |   |   |
| FTE***                              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 5.1. By 2008, the average time a    |  |  |   |  |   |   |   |
| leadership position remains         |   |   |   |   |   |   |   |
| unfilled is 30 days or less.        |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 5.2. By 2007, the percentages of    |  |  |   |  |   |   |   |
| NARA employees in underrepresented  |   |   |   |   |   |   |   |
| groups match their respective       |   |   |   |   |   |   |   |
| availability levels in the Civilian |   |   |   |   |   |   |   |
| Labor Force.                        |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 5.3. By 2007, NARA will accept 100% |   |  |   |   |   |   |   |
| of the validated legal documents    |   |   |   |   |   |   |   |
| submitted electronically for        |   |   |   |   |   |   |   |
| publication in the *Federal         |   |   |   |   |   |   |   |
| Register*.                          |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+
| 5.4. By 2008, all public network    |  |  |   |  |   |   |   |
| applications are available 99.9% of |   |   |   |   |   |   |   |
| the time.                           |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+

#   {#section-2 .AR-2004-Head-1-Char-Char}

# Financial Highlights {#financial-highlights .AR-2004-Head-1-Char-Char}

Fiscal year 2005 was the second year that NARA prepared consolidated
financial state­ments in accordance with the Chief Financial Officers
(CFO) Act, as mandated by the Accountability of Tax Dollars Act of 2002.
The financial statements pre­sented in this report have been prepared
from NARA's accounting records in accordance with the generally accepted
accounting standards prescribed for Federal entities by the Federal
Accounting Standards Advisory Board (FASAB) and presentation standards
prescribed by OMB Circular A-136, "Financial Reporting Requirements."

## Sources of Funds {#sources-of-funds .AR-2004-Head-2-Char-Char}

NARA is funded through appropriated budget authority that includes
annual, multi­year and no-year appropriations which are available for use
within certain specified statutory limits. Other financing sources
include the National Archives Trust Fund, Gift Fund, and Revolving Fund
revenues.

NARA's total new FY 2005 budget authority from its annual appropriation
was \$321.3 million. We carried over \$26.5 million in multiyear and
no-year funds, and \$.3 million from FY 2004 was available for
obligation in FY 2005. FY 2005 rescissions totaled \$2.6 million. Total
appropriated budget authority for FY 2005 was \$345.5 million.

![](media/image17.wmf){width="5.497916666666667in"
height="3.845833333333333in"}

*Figure 2. Appropriated Budget Authority, FY 2005.*

The major operating appropriation funds basic operations comprising
records services, archives-related services, and the National Archives
at College Park. Records services provides for selecting, preserving,
describing, and making available to the general public, scholars, and
Federal agencies the permanently valuable historical records of the
Federal Government and the historical materials and Presidential records
in Presidential librar­ies; for preparing related publications and
exhibit programs; and for conducting the appraisal of all Federal
records. Archives-related services provide for the publica­tions of the
Federal Register, the Code of Federal Regulations, the U.S. Statutes at
Large, and Presi­dential documents, and for a program to improve the
quality of regulations and the public's access to them. The \$302
million cost of construction of the National Archives at College Park,
which serves as a major archival facility as well as the center for
NARA's administrative offices, was financed by Federally guaranteed debt
issued in 1989 for which the Archivist seeks appropriations for the
annual payments for interest and redemption of debt.

NARA also receives appropriations that fund the Electronic Records
Archives, repairs and restorations, and the National Historical
Publi­ca­tions and Records Commission grants program. The Electronic
Rec­ords Archives appropriation funds NARA's effort to ensure the
preservation of and access to Gov­ern­­ment electronic records. The repairs
and restoration appro­pri­a­tion funds the repair, altera­tion, and
improvement of archives facili­ties to provide adequate storage for
holdings. The National Histori­cal Publi­cations and Rec­ords Com­mission
grants program provides for grants to state, local, and pri­vate
institu­tions to preserve and publish records that document American
history. Figure 2 illus­trates the allotment of total available
appropriated funds.

The National Archives Trust Fund and Presidential Library Trust Funds
budget au­thor­ity includes revenues generated from the sale of
publications, museum shop sales, paper repro­ductions, audiovisual
reproductions, library admissions, educational conferences, and interest
income. Expenditures are made for the cost of museum shop inventory,
personnel, operational and financial systems, equipment, and
reproduction supplies. The National Archives Trust Fund and Presidential
Library Trust Funds earned revenue of \$16.3 million in FY 2005.

The Gift Fund's budget authority includes donations and the interest
earned on those gifts and endowments. It was established to administer
incoming gifts and bequests for the benefit of or in connection with the
archival and records activities of the National Archives and Records
Administration. Expenditures are made for various programs, including
historical research, conferences, archival and cultural events, and
publications. In FY 2005, the Gift Fund received donations of \$2.1
million and a restricted endowment from the Clinton Foundation of \$7.2
million.

The Revolving Fund's budget authority includes temporary Federal agency
records stored in NARA service facilities. It provides storage,
transfer, reference, re-file, and disposal services, for a standard fee.
The Revolving Fund earned revenue of \$132 million in FY 2005.

## Uses of Funds by Function {#uses-of-funds-by-function .AR-2004-Head-2-Char-Char}

NARA incurred new general fund obligations of \$328.2 million in FY
2005. Of this, \$0.6 million is for reimburseable work. The chart below
represents obligations by strategic goal.

![](media/image18.wmf){width="5.486111111111111in"
height="3.9791666666666665in"}

*Figure 3. Obligations by Function, FY 2005.*

## Audit Results {#audit-results .AR-2004-Head-2-Char-Char}

## NARA received a qualified opinion on its FY 2005 financial statements and a qualified opinion on its restated FY2004 financial statements. FY 2005 opinion was qualified for the effects of such adjustments, if any, for obligations and outlays related to non-Federal investments. The auditors identified one material internal control weakness and four reportable conditions. NARA also reported one substantial noncompliance instance with the Federal Financial Management Improvement Act concerning the financial system compliance. {#nara-received-a-qualified-opinion-on-its-fy-2005-financial-statements-and-a-qualified-opinion-on-its-restated-fy2004-financial-statements.-fy-2005-opinion-was-qualified-for-the-effects-of-such-adjustments-if-any-for-obligations-and-outlays-related-to-non-federal-investments.-the-auditors-identified-one-material-internal-control-weakness-and-four-reportable-conditions.-nara-also-reported-one-substantial-noncompliance-instance-with-the-federal-financial-management-improvement-act-concerning-the-financial-system-compliance. .AR-2004-Head-2-Char-Char}

## Financial Statement Highlights {#financial-statement-highlights .AR-2004-Head-2-Char-Char}

NARA's financial statements summarize the financial activity and
financial position of the agency. NARA's FY 2004 financial statements
have been restated, based on a more in-depth analysis, to reflect an
overstatement of approximately \$13 million to the *Property, plant, and
equipment* balances, established in FY 2004 for the first time. The
financial statements, footnotes, supplementary information, and
supplementary stewardship information appear in Part 3---Financial
Section. An analysis of the principal statements follows.

## ***Analysis of the Balance Sheet*** {#analysis-of-the-balance-sheet .AR-2004-Head-2}

##### Assets {#assets .AR-2004-Head-4}

NARA's assets were \$517.9 million as of September 30, 2005, a decrease
of \$35 million from the end of FY 2004. The assets reported in NARA's
balance sheet are summarized in the accompanying table.

+------------------------------------------+-------------+------------+
| **Asset Summary (in millions)**          | **FY 2005** | **         |
|                                          |             | Restated** |
|                                          |             |            |
|                                          |             | **FY       |
|                                          |             | 2004**     |
+------------------------------------------+-------------+------------+
| Fund balance with Treasury and cash      | \$167.3     | \$185.2    |
+------------------------------------------+-------------+------------+
| General property, plant, and equipment,  | 311.8       | 314.6      |
| net                                      |             |            |
+------------------------------------------+-------------+------------+
| Investments                              | 26.7        | 36.0       |
+------------------------------------------+-------------+------------+
| Accounts receivable, net                 | 10.0        | 15.0       |
+------------------------------------------+-------------+------------+
| Inventory                                | 1.1         | 1.0        |
+------------------------------------------+-------------+------------+
| Other                                    | 1.0         | 1.1        |
+------------------------------------------+-------------+------------+
| **Total assets**                         | **\$517.9** | *          |
|                                          |             | *\$552.9** |
+------------------------------------------+-------------+------------+

The fund balance with Treasury and cash accounts for approximately 32.3
percent of total assets, with a decrease of \$17.9 million from the FY
2004 balance, and represents appropriated funds and collections of fees
for services. *Property, plant, and equipment* constitute 60.2 percent
of total assets, with the National Archives Facility at College Park
representing the greater part of the balance.

##### Liabilities {#liabilities .AR-2004-Head-4}

NARA's liabilities were \$292.7 million as of September 30, 2005, a
decrease of \$29.4 million from the end of FY 2004. Most of the decrease
in liabilities is due to FY 2005 debt repayment of approximately \$8.5
million, as well as liquidation of liability for non-entity investments
of \$17.5 million. The liabilities reported in NARA's balance sheet are
summarized in the accompanying table.

  ------------------------------------------ ------------- ------------- ------------- ------------ --
  **Liabilities Summary (in millions)**                    **FY 2005**                 **FY 2004**  

  Debt held by the public                    \$236.3                     \$246.0                    

  Accounts payable                           23.4                        27.8                       

  Other                                      33.0                        48.3                       

  **Total liabilities**                      **\$292.7**                 **\$322.1**                
  ------------------------------------------ ------------- ------------- ------------- ------------ --

*Debt held by the public* accounts for approximately 81 percent of total
liabilities and represents certificates of participation issued to the
public through a trustee to cover the construction costs of the National
Archives at College Park. Liabilities totaling \$258.4 million, or 88.3
percent of total liabilities, were unfunded; i.e., budgetary resources
were not yet available. For most unfunded liabilities, budgetary
resources will be made available in the years balances are due, in
accordance with OMB funding guidelines. The major elements of unfunded
liabilities are \$236.3 million for debt held by the public, \$9.3
million for workers' compensation, and \$12.5 million for unfunded
annual leave.

##### Net Positions {#net-positions .AR-2004-Head-4}

The difference between total assets and total liabilities, net position,
was \$225.2 million\
as of September 30, 2005. This is a decrease of \$5.7 million from the
FY 2004 year-end balance. The net position reported in NARA's balance
sheet is summarized in the accompanying table.

Unexpended appropriations is the amount of authority granted by Congress
that has not been expended. Cumulative results of operations represents
net results of operations since NARA's inception, reflecting results of
revolving fund operations and funding of the capital needs of the
agency.

+-----------------------------------------+---+-----------+---+------------+---+
| **Net Position Summary**                |   | **FY      |   | **Restated |   |
|                                         |   | 2005**    |   | FY 2004**  |   |
| **(in millions)**                       |   |           |   |            |   |
+-----------------------------------------+---+-----------+---+------------+---+
| Unexpended appropriations               | \ |           | \ |            |   |
|                                         | $ |           | $ |            |   |
|                                         | 1 |           | 1 |            |   |
|                                         | 1 |           | 3 |            |   |
|                                         | 7 |           | 9 |            |   |
|                                         | . |           | . |            |   |
|                                         | 6 |           | 8 |            |   |
+-----------------------------------------+---+-----------+---+------------+---+
| Cumulative results of operations        | 1 |           | 9 |            |   |
|                                         | 0 |           | 1 |            |   |
|                                         | 7 |           | . |            |   |
|                                         | . |           | 1 |            |   |
|                                         | 6 |           |   |            |   |
+-----------------------------------------+---+-----------+---+------------+---+
| **Total net position**                  | * |           | * |            |   |
|                                         | * |           | * |            |   |
|                                         | \ |           | \ |            |   |
|                                         | $ |           | $ |            |   |
|                                         | 2 |           | 2 |            |   |
|                                         | 2 |           | 3 |            |   |
|                                         | 5 |           | 0 |            |   |
|                                         | . |           | . |            |   |
|                                         | 2 |           | 9 |            |   |
|                                         | * |           | * |            |   |
|                                         | * |           | * |            |   |
+-----------------------------------------+---+-----------+---+------------+---+

## ***Analysis of the Statement of Net Cost***  {#analysis-of-the-statement-of-net-cost .AR-2004-Head-2}

The statement of net cost presents the net cost of NARA's six major
programs. NARA's net cost of operations for the year ended September 30,
2005, was \$345.4 million. The increase of \$59 million in the net cost
of operation is due largely to the increased activity and contract costs
in the Electronic Records Archives (ERA) program, significant increases
in utilities and security services, and payroll cost-of-living
increases. Net costs by program are shown in the accompanying table.

  ------------------------------------------ ------------- -------------- ------------- ------------ --
  **Net Cost of Operations (in millions)**                 **FY 2005**                  **Restated   
                                                                                        FY 2004**    

  Records and archives-related services      \$279.7                      \$240.7                    

  Trust and Gift Funds                       (.2)                         3.4                        

  Electronic Records Archives                35.7                         11.2                       

  National Historical Publications and       7.3                          5.9                        
  Records Commission grants                                                                          

  Archives facilities and Presidential       11.1                         13.0                       
  libraries repairs and restoration                                                                  

  Records center storage and services        11.8                         12.2                       

  **Net cost of operations**                 **\$345.4**                  **\$286.4**                
  ------------------------------------------ ------------- -------------- ------------- ------------ --

### Analysis of the Statement of Changes in Net Position {#analysis-of-the-statement-of-changes-in-net-position .AR-2004-Head-3}

The statement of changes in net position reports the change in net
position during the reporting period. Net position is affected by
changes in its two components---Cumulative Results of Operations and
Unexpended Appropriations. The decrease in the net position of \$5.7
million from FY 2004 to FY 2005 is due to the increase in cumulative
results of operations of \$16.5 million and a decrease in unexpended
appropriations of \$22.2 million. The overall decrease is indicative of
the higher expenditures for other than capital needs of the
organization, such as utilities and contract services.

### Analysis of the Statement of Budgetary Resources {#analysis-of-the-statement-of-budgetary-resources .AR-2004-Head-3}

The Statement of Budgetary Resources presents the sources of budgetary
resources and their status at the end of the period, as well as
demonstrates the relationship of obliga­tions to outlays. For FY 2005,
NARA had budgetary resources available of \$568.7 million, an increase
of 2.9 percent over \$552.6 million in FY 2004. The majority of the
increase resulted from new budget authority.

### Analysis of the Statement of Financing {#analysis-of-the-statement-of-financing .AR-2004-Head-3}

The statement of financing is designed to reconcile obligation-based
(budgetary accounting) information in the statement of budgetary
resources and accrual-based (financial accounting) information in the
statement of net cost by reporting the differences and explaining them.
This reconciliation ensures that the proprietary and budgetary accounts
in the financial management system are in balance. The statement of
financing takes budgetary obligations of \$494 million and reconciles to
the net cost of operations of \$345.4 million by deducting nonbudgetary
resources, costs not requiring resources, and financing sources to be
provided in the future.

## Debt Management {#debt-management .AR-2004-Head-2-Char-Char}

The U.S. General Services Administration (GSA) provides cross-servicing
for NARA's debt collection management. Debt management information
specific to NARA is not available; however, GSA's procedures for debt
management are as follows. To comply with the Debt Collection
Improvement Act of 1996, GSA transmits delinquent claims each month to
the U.S. Department of the Treasury Financial Management Service (FMS)
for collection cross-servicing. GSA also collects non-Federal claims
using Pre-Authorized Debits (PADs). GSA actively pursues delinquent
non-Federal claims using installment agreements, salary offset,
administrative wage garnishment, and any other statutory requirement or
authority that is applicable. Through an outside contract arrangement,
GSA actively reviews and pursues overpayments. They are working with FMS
to remove all nonpaying claims more than two years old from open
receivables and have implemented a plan to review delinquent accounts
and contact debtors, especially those approaching two years old, on a
quarterly basis.

## Erroneous Payments Management {#erroneous-payments-management .AR-2004-Head-2-Char-Char}

GSA provides cross-servicing for NARA for all of its financial services,
including pay­ments management. For FY 2005, NARA is fully relying on the
procedures performed by GSA. To comply with the Improper Payments
Information Act of 2002, GSA retained the services of a contractor to
conduct a management control review and Improper Payments Information
Act review that focused on erroneous payment risk analysis by program to
determine and estimate the amount of potential improper and erroneous
payments. All programs were statistically sampled to identify those that
are highly susceptible to erroneous payments and that meet the \$10
million and 2.5-percent threshold established by the Office of
Management and Budget (OMB). Corrective action plans will be developed
for any programs that are identified as subject to significant risk of
erroneous payments.

**Systems, Controls, and Legal Compliance**

This section provides information about NARA's compliance with the

-   Federal Manager's Financial Integrity Act

-   Federal Information Security Management Act

-   Federal Financial Management Improvement Act

-   Prompt Payment Act

-   Inspector General Act

## ![](media/image19.png){width="0.9992125984251968in" height="0.8866141732283465in"}Federal Managers' Financial Integrity Act {#federal-managers-financial-integrity-act .AR-2004-Head-2-Char-Char}

The Federal Managers' Financial Integrity Act man­dates that agencies
establish controls that reason­a­bly ensure that (i) obligations and costs
comply with applicable law; (ii) assets are safeguarded against waste,
loss, unauthorized use, or misappro­priation; and (iii) revenues and
expenditures are properly recorded and accounted for. This act
encompasses operational, program, and admini­strative areas, as well as
account­ing and financial management. It requires the Archivist to
provide an assurance state­ment to the President on the adequacy of
internal controls and confor­mance of financial systems with
Government-wide standards.

### Internal Controls Program {#internal-controls-program .AR-2004-Head-3}

NARA's internal controls worked to ensure the attainment of our mission
and FY 2005 goals, maintain efficient operations, and reduce fraud and
the misuse of taxpayer-provided resources. NARA managers submitted an
annual assurance statement, along with a management control plan, to the
Archivist of the United States at the end of the fiscal year. These
statements were based on various sources and included

-   Management knowledge gained from daily operation of programs

-   Management reviews

-   Program evaluations

-   Audits of financial statements

-   Reviews of financial systems

-   Annual performance plans and periodic performance reporting to the
    Archivist

-   Senior Staff reviews and briefings

-   Internal oversight groups for agency programs

-   Monthly reporting in NARA's Performance Measurement Reporting System
    and monthly Strategic Schedule reporting

-   Reports and other information provided by the congressional
    committees of jurisdiction

In addition, audits and reviews performed by the Office of Inspector
General (OIG) and the Government Accountability Office reviewed the
agency's internal controls and led to improvements in them. Annually,
the OIG reviews the state of NARA's internal controls. The Archivist's
assurance letter reports on the results of this assessment.

### FY 2005 Integrity Act Results {#fy-2005-integrity-act-results .AR-2004-Head-3}

NARA evaluated its internal control systems for the fiscal year ending
September 30, 2005. This evaluation provided reasonable assurance that
the agency's internal controls achieved their intended objectives.
Pursuant to Section 2 of the Integrity Act, we identified three material
weaknesses in fiscal years 2000, 2001, and 2005. Corrective action plans
were developed for material weaknesses in computer security, collections
security, and in textual preservation. Much progress has been made, and
substantial corrective actions for computer security were completed in
FY 2005. Pursuant to Section 4 of the Integrity Act, the financial
subsystems of NARA generally conformed with the objectives detailed in
OMB Circular A-127, revised. Although three systems (Order Fulfillment
Accounting System; Trust Fund-Gift Fund Financial Review, Analysis, and
Reporting System; and Records Center Revolving Fund financial management
systems) were not in complete conformance because they failed to meet
the financial management system requirements, the nonconformances were
not deemed material.

## Federal Information Security Management Act {#federal-information-security-management-act .AR-2004-Head-2-Char-Char}

The Federal Information Security Management Act (FISMA) requires Federal
agencies to conduct an annual self-assessment review of their
information technology security program, to develop and implement
remediation efforts for identified security weaknesses and
vulnerabilities, and to report to OMB on the agency's compliance.

Following established FISMA requirements, our review indicated no new
significant deficiencies in NARA's FY 2005 FISMA, submitted October 7,
2005, to OMB.

## Federal Financial Management Improvement Act {#federal-financial-management-improvement-act .AR-2004-Head-2-Char-Char}

GSA is the financial services provider of NARA financial systems via
PEGASYS. At the end of FY 2005, GSA had a material weakness concerning
the PEGASYS system, because it was not compliant with the Joint
Financial Management Improvement Program (JFMIP), required by FFMIA.
NARA changed its financial services provider, effective October 1, 2005,
and anticipates this will correct any related deficiencies.

## Prompt Payment Act {#prompt-payment-act .AR-2004-Head-2-Char-Char}

During FY 2005, GSA was the financial services provider of NARA
financial statistics and acted as our agent for implementing the Prompt
Payment Act. As a result, NARA statistics were not specifically
identifiable.

## Inspector General Act {#inspector-general-act .AR-2004-Head-2-Char-Char}

NARA satisfied nearly 70 percent of all open audit recommendations,
maintaining its steady progress in resolving and implementing open audit
recommendations presented in OIG reports. Section 5(b) of the Inspector
General Act requires agencies to report on final actions taken on OIG
audit recommendations. This information can be found in the Performance
Section of this report.

# Facilities {#facilities .AR-2004-Head-1-Char-Char}

**National Archives Building**

700 Pennsylvania Avenue, NW

Washington, DC 20408

202-501-5400

**National Archives at\
College Park**

8601 Adelphi Road

College Park, MD 20740

301-837-2000

**Washington National\
Records Center**

4205 Suitland Road

Suitland, MD 20746

301-778-1600

**NARA--Northeast Region**

Diane LeBlanc,

*Regional Administrator*

NARA--Northeast Region (Boston)

380 Trapelo Road

Waltham, MA 02452

866-406-2379

NARA--Northeast Region (Pittsfield)

10 Conte Drive

Pittsfield, MA 01201

413-236-3600

NARA--Northeast Region\
(New York City)

201 Varick Street, 12th Floor

New York, NY 10014

212-401-1620

**NARA--Mid Atlantic Region**

V. Chapman-Smith,\
*Regional Administrator*

NARA--Mid Atlantic Region (Center City Philadelphia)

900 Market Street

Philadelphia, PA 19107

215-606-0100

NARA--Mid Atlantic Region (Northeast Philadelphia)

14700 Townsend Road

Philadelphia, PA 19154

215-305-2000

**NARA--Southeast Region**

James McSweeney,\
*Regional Administrator*

NARA--Southeast Region (Atlanta)

5780 Jonesboro Road

Morrow, GA 30260

770-968-2100

NARA-Southeast Region (Atlanta)

4712 Southpark Boulevard

Ellenwood, GA 30294

404-736-2820

**NARA--Great Lakes Region**

David Kuehl,

*Regional Administrator*

NARA--Great Lakes Region (Chicago)

7358 South Pulaski Road

Chicago, IL 60629

773-948-9001

NARA--Great Lakes Region (Dayton)

3150 Springboro Road

Dayton, OH 45439

937-425-0600

**NARA--Central Plains Region**

R. Reed Whitaker,\
*Regional Administrator*

NARA--Central Plains

Region (Kansas City)

2312 East Bannister Road

Kansas City, MO 64131

816-268-8000

NARA--Central Plains Region (Lee\'s Summit)

200 Space Center Drive

Lee\'s Summit, MO 64064

816-288-8100

NARA--Central Plains Region (Lenexa)

17501 West 98th Street, #31-50

Lenexa, KS 66219

913-825-7800

**NARA--Southwest Region**

Kent Carter,

*Regional Administrator*

501 West Felix St, Bldg 1

P.O. Box 6216

Fort Worth, TX 76115

817-831-5900

**NARA--Rocky Mountain Region**

Barbara Voss,

*Regional Administrator*

Denver Federal Center, Building 48

P.O. Box 25307

Denver, CO 80225

303-407-5700

**NARA--Pacific Region**

Shirley J. Burton,

*Regional Administrator*

NARA--Pacific Region\
(Laguna Niguel)

24000 Avila Road

P.O. Box 6719

Laguna Niguel, CA 92607

949-360-2641

NARA-Pacific Region

(Riverside)

23123 Cajalco Road

Perris, CA 92570

951-956-2000

NARA--Pacific Region\
(San Francisco)

1000 Commodore Drive

San Bruno, CA 94066

650-238-3500

**NARA--Pacific Alaska Region**

Steven Edwards,

*Regional Administrator*

NARA--Pacific Alaska Region (Seattle)

6125 Sand Point Way, NE

Seattle, WA 98115

206-336-5115

NARA--Pacific Alaska Region (Anchorage)

654 West Third Avenue

Anchorage, AK 99501

907-261-7800

**NARA--National Personnel Records Center**

Ronald Hindman, *Director*

NARA--National Personnel Records Center

(Civilian Personnel Records)

111 Winnebago Street

St. Louis, MO 63132

314-801-9250

NARA--National Personnel Records Center

(Military Personnel Records)

9700 Page Avenue

St. Louis, MO 63132

314-801-0800

**Herbert Hoover Library**

Timothy G. Walch, *Director*

210 Parkside Drive

P.O. Box 488

West Branch, IA 52358

319-643-5301

**Franklin D. Roosevelt Library**

Cynthia Koch, *Director*

4079 Albany Post Road

Hyde Park, NY 12538

845-486-7770

**Harry S. Truman Library**

Michael Devine, *Director*

500 West U.S. Highway 24

Independence, MO 64050

816-268-8200

**Dwight D. Eisenhower Library**

Daniel D. Holt, *Director*

200 Southeast Fourth Street

Abilene, KS 67410

785-263-6700

**John Fitzgerald Kennedy Library**

Deborah Leff, *Director*

Columbia Point

Boston, MA 02125

617-514-1600

**Lyndon Baines Johnson Library**

Betty Sue Flowers, *Director*

2313 Red River Street

Austin, TX 78705

512-721-0200

**Nixon Presidential\
Materials Staff**

Michael Woywod, *Acting Director*

National Archives at College Park

8601 Adelphi Road

College Park, MD 20740

301-837-3290

**Gerald R. Ford Library** **and Museum**

Elaine K. Didier, *Director*

Gerald R. Ford Library

1000 Beal Avenue

Ann Arbor, MI 48109

734-205-0555

Gerald R. Ford Museum

303 Pearl Street, NW

Grand Rapids, MI 49504

616-254-0400

**Jimmy Carter Library**

Jay E. Hakes, *Director*

441 Freedom Parkway

Atlanta, GA 30307

404-865-7100

**Ronald Reagan Library**

Duke Blackwood, *Director*

40 Presidential Drive

Simi Valley, CA 93065

805-577-4000

**George Bush Library**

Warren Finch, *Director*

1000 George Bush Drive West

P.O. Box 10410

College Station, TX 77845

979-691-4000

**William J. Clinton Library**

David E. Alsobrook, *Director*

1200 President Clinton Avenue

Little Rock, AR 72201

501-374-4242

# Copies of This Report {#copies-of-this-report .AR-2004-Head-1-Char-Char}

This report is available on our web site at---

*www.archives.gov/about/plans-reports/performance-accountability/*

Links are provided to both the full report (Management's Discussion and
Analysis \[MD&A\], Performance and Financial sections, and Appendixes)
as well as the summary report (MD&A). Also located on that page are
links to our Strategic Plan, annual performance plans, and past
performance reports.

Copies of this report also may be obtained by electronic request via the
form at---

*www.archives.gov/contact/inquire-form.html*

or by writing to National Archives and Records Administration, Policy
and Planning Staff, 8601 Adelphi Road, Room 4100, College Park, MD
20740-6001. Please specify whether you are interested in the summary
report or the full report. Also, we welcome your comments on how we can
improve this report for FY 2006. Please e-mail any comments to
*Vision@nara.gov*.

# Other Web Pages of Interest {#other-web-pages-of-interest .AR-2004-Head-1-Char-Char}

  ------------------------------------- ------------------------------------------------------------------
  **Reports, Strategic Documents,       *www.archives.gov/about/*
  Messages from the Archivist:** Find   
  the latest information regarding our  
  mission, vision, and strategic        
  initiatives.                          

  **The National Archives Experience:** *www.archives.gov/national-archives-experience/*
  Participate in an interactive,        
  educational experience about the      
  power of records in a democracy.      

  **Archival Holdings:** Find records   *www.archives.gov/research/arc/*
  of interest in Washington, DC, the    
  regional archives, and Presidential   
  libraries.                            

  **Public Documents:** The U.S.        *www.gpoaccess.gov/nara/*
  Government Printing Office and the    
  Office of the Federal Register at     
  NARA work closely to disseminate the  
  official text of Federal laws,        
  Presidential documents,               
  admini­strative regulations and        
  notices, and descriptions of Federal  
  organizations, programs and           
  activities.                           

  **Public Regulations:** Find, review, *www.regulations.gov*
  and submit comments on Federal        
  documents that are open for comment   
  and published in the *Federal         
  Register*, the Government's legal     
  newspaper.                            

  **Careers at NARA:** Review current   *www.archives.gov/careers/*
  job openings and learn how to apply.  

  **Visit NARA:** Learn how to prepare  *[www.archives.gov/research](http://www.archives.gov/research)/*
  for a research visit, about facility  
  hours and locations, and more.        

  ***Prologue* Magazine:** Keep up to   *www.archives.gov/publications/prologue/.*
  date on NARA activities through its   
  quarterly journal. View selected      
  articles and subscribe online.        
  ------------------------------------- ------------------------------------------------------------------

# [Part 2]{.smallcaps} Performance Section {#part-2-performance-section .AR-Part-Title}

# Measuring and Reporting Our Performance {#measuring-and-reporting-our-performance .AR-2004-Head-1}

This annual performance report is based on the goals, strategies, and
long-range performance targets in our Strategic Plan and the specific
objectives in our FY 2005 Annual Performance Plan. The following pages
detail our performance on all our FY 2005 objectives. Checked boxes
indicate those we fully achieved. Those we did not fully achieve have
open boxes with an explanation below. We also included relevant
performance results and trend information. Our budget is linked to the
report's per­for­mance goals. We received no aid from non-Federal parties
in preparing this report.

We used four mechanisms to measure actual performance: (1) periodic
management reviews, (2) formal audits of operations, (3) expansion and
refinement of our performance measurement system, and (4) systematic
sampling of measurement system effectiveness. In FY 1999 we deployed our
agency-wide Performance Measure­ment and Reporting System (PMRS). This
system allows us to define and consistently measure data critical to the
analysis of our performance objectives. Every year we improve and expand
the system further so that our strategic performance is measured using
more of a balanced scorecard approach for tracking cycle times, quality,
produc­tivity, cost, and customer satisfaction for our products and
services. This report also updates some of our FY 2004 statistics that
were corrected as a result of these improve­ments. These ongoing
refinements indicate that this annual report, our annual plans, and our
Strategic Plan are living documents and an integral part of our
operations.

In our continuous effort to improve our performance measurement program,
we recently completed a two-year project to upgrade PMRS. We are taking
advantage of web infra­structure to collect our performance data from the
more than 70 organizational units that send data to PMRS from all over
the country. We also are using newer, more robust, enterprise-level
databases to store the data and extract reports, instead of the
high-main­te­nance desktop databases previously used. This upgrade enables
us to collect our performance data more consistently and more
efficiently and allows us to store much more data for use in analyzing
trends.

We have also implemented a program management system (PROMT) to help us
control the cost and schedule for the Electronic Records Archives (ERA)
program. We have expanded the use of PROMT throughout NARA to help us
improve our capabilities for managing and tracking performance on other
projects. PROMT integrates several commercial off-the-shelf program
management tools in a Windows-based web environment to help us schedule
and link project activities, assign resources, collect and report costs,
calculate earned value, and analyze impacts and risks to the ERA
program. PROMT incorporates an EIA-748 compliant tool that meets Office
of Manage­ment and Budget (OMB) and Government Accountability Office
(GAO) requirements for calcu­lating earned value.

# FY 2005 Performance by Strategic Goal {#fy-2005-performance-by-strategic-goal .AR-2004-Head-1}

## Strategic Goal 1: Records Management {#strategic-goal-1-records-management .AR-2004-Head-2}

### Essential evidence is created, identified, appropriately scheduled, and managed for as long as needed. {#essential-evidence-is-created-identified-appropriately-scheduled-and-managed-for-as-long-as-needed. .AR-2004-Head-3}

+-----------------------------+----------------------------------------+
| **Long-Range**              | 1.1. By 2008, 95 percent of agencies   |
|                             | view their records management program  |
| **Performance Targets**     | as a positive tool for asset and risk  |
|                             | management.                            |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 1.2. By 2008, 95 percent of approved   |
|                             | capital asset plans have approved      |
|                             | records schedules by the time those    |
|                             | systems begin creating records.        |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 1.3. By 2008, 95 percent of customers  |
|                             | are satisfied with NARA scheduling and |
|                             | appraisal services.                    |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+

**FY 2005 Resources Available to Meet This Goal:** \$17,029,000; 148 FTE

**[[1.1 Records Management Redesign]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Deliver the results promised on 95     |
|                         | * | percent of targeted assistance         |
|                         |  | partnership projects.                  |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Survey Federal agencies to establish   |
|                         | * | baseline percentage of agencies that   |
|                         |  | view their records management programs |
|                         | * | as a positive tool for asset and risk  |
|                         | * | management.                            |
+-------------------------+---+----------------------------------------+
| []{.mark}               | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Increase by 10 percent the number of   |
|                         | * | records management training            |
|                         |  | participants who are taking a NARA     |
|                         | * | records management course for the      |
|                         | * | first time.                            |
+-------------------------+---+----------------------------------------+
| []{.mark}               | [ | > []{.mark}                            |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Conduct a records management study.    |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   | []{.mark}                              |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We delivered the results promised on   |
|                         |   | 100 percent of targeted assistance     |
|                         |   | partnership projects.                  |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               |  | We increased the number of partnership |
|                         |   | projects established with Federal      |
|                         |   | agencies from 361 to 372.              |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| *"The class was         |  | We trained 3,366 Federal agency staff  |
| excellent, as were\     |   | in records management and electronic   |
| the instructors."*      |   | records management.                    |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               |  | We conducted a records management      |
|                         |   | study of the headquarters office of    |
|                         |   | the U.S. Air Force.                    |
+-------------------------+---+----------------------------------------+

*Discussion* We completed the first full year of our new records
management training program, redesigned to address new trends in records
management and the ongoing revolution in information technology so that
agency records professionals can play an important role in process
design, IT capital planning, and information and knowledge management in
their agencies. With a Records Management Training Officer now part of
our NARA-wide records management team, we will continue to apply adult
education concepts and explore alternative delivery approaches in our
training efforts.

We provided records management training to 3,366 Federal agency staff
across the country this year, a 19-percent decrease from last year. The
number we train each year fluctuates, depending on availability of staff
to perform training and the number of Federal agency staff available to
attend training. While our overall number of trainees was lower this
year, 1,069 participants, 32 percent of our total, were taking a course
for the first time. The increase in first-time participants is due in
large part to our new, improved classes and our new records management
certification program.

During the first year of our new certification program, 47 individuals
successfully completed training in Federal records management and were
professionally certified. The certification program is designed to raise
awareness and improve effectiveness of Federal records management,
increase the level of professionalism of those managing Federal records,
give Federal records professionals a set of benchmarks to gauge their
professional development, and give NARA the ability to better assess the
effectiveness of its training program. Participants who successfully
pass a series of examinations receive NARA\'s Certificate of Federal
Records Management Training, signed by the Archivist of the United
States.

We completed a study of records management practices at the headquarters
of the U.S. Air Force. This first study, and others to follow, will help
us identify and analyze best practices and develop Government-wide
recommendations and guidance.

Targeted assistance projects are established between NARA and Federal
agencies to solve specific records management problems. We established
11 new projects with Federal agencies this year. Since the program began
in 1999, we have established 372 projects, completed 279 projects, and
assisted 107 Federal agencies and field offices.

An example of the kind of work addressed in our targeted assistance
projects was the Wildland Fire Records Project, an interagency
partnership project with the Department of Agriculture Forest Service,
the Department of Interior Bureau of Indian Affairs, the Department of
Interior Bureau of Land Management, the Department of Interior U.S. Fish
and Wildlife Service, and the Department of Interior National Park
Service. The project developed records management tools to control and
preserve both paper and electronic wildland fire records during a fire
incident and afterwards. These tools include approved records
disposition schedules that cover multiple agencies, file classification
schemes, briefings, and pilot training. Briefings and training were
presented to more than 500 personnel from the five Federal agencies, as
well as tribal organizations and state and local agencies. These
standards and tools will allow the agencies to support fire opera­tions
more effectively and protect rights and interests of stakeholders. Just
as important, they will allow fire agencies to permanently preserve
records supporting scientific and historical research, implementation of
National Fire Policy, and planning under the National Environmental
Policy Act.

We intended to conduct a survey asking Federal staff how they view the
role of their agency management programs during FY 2005 and are
continuing to investigate cost-effective means for doing so.

  ------------------------------------- ----------- ----------- ----------- ----------- ----------- ----------
  **Performance Data**                  **2000**    **2001**    **2002**    **2003**    **2004**    **2005**

  *Performance target for annual        *---*       *75*        *85*        *90*        *95*        *95*
  percent of targeted assistance                                                                    
  partnership projects delivering the                                                               
  results promised*                                                                                 

  Annual percent of targeted assistance 100         100         100         100         100         100
  partnership projects delivering the                                                               
  results promised                                                                                  

  Annual number of targeted assistance  123         63          77          58          13          11
  partnership projects initiated                                                                    

  Annual number of targeted assistance  37          58          76          67          26          13
  partnership projects completed                                                                    

  Annual number of targeted assistance  37          58          76          67          26          13
  partnership projects completed,                                                                   
  delivering the promised results                                                                   

  Cumulative number of targeted         156         213         290         348         361         372
  assistance partnership projects                                                                   
  initiated with Federal agencies                                                                   

  Cumulative number of targeted         39          97          173         240         266         279
  assistance partnership projects                                                                   
  completed with Federal agencies                                                                   

  *Performance target for percent       []{.mark}   []{.mark}   []{.mark}   []{.mark}   []{.mark}   *10*
  increase in the number of records                                                                 
  management training participants who                                                              
  are taking a NARA records management                                                              
  course for the first time*                                                                        

  Percent of records management         []{.mark}   []{.mark}   []{.mark}   []{.mark}   11          32
  training participants taking a NARA                                                               
  records management course for the                                                                 
  first time.                                                                                       

  Number of Federal agency staff        3,506       2,506       3,746       3,497       4,166       3,366
  receiving NARA training in records                                                                
  management and electronic records                                                                 
  management                                                                                        

  Number of records management training ---         ---         ---         ---         442         1,069
  participants who are taking a NARA                                                                
  records management course for the                                                                 
  first time                                                                                        

  Number of records management training ---         ---         ---         ---         ---         47
  participants certified this year.                                                                 
  ------------------------------------- ----------- ----------- ----------- ----------- ----------- ----------

*FY 2006 Performance Plan Evaluation* NARA's *Strategic Directions for
Federal Records Management* (2003) established the strategies we are
using to improve records management across the Government and achieve
Goal 1. We have begun to implement these strategies through a unified
NARA program to support Federal records management.

In FY 2006 and beyond, the NARA records management program will make
more effective use of our resources through improved and expanded
communications with stakeholders, records management guidance and
training, and assistance to Federal agencies. We are working to find
ways to minimize routine records scheduling activities and to develop
planning and evalu­ation tools and automated tools to support records
management. We are exploring ways to provide agencies with modern
records center services and to preserve permanent records, focusing on
electronic records. We will also use our authority to inspect agency
records and records management programs, to conduct studies, and to
report to Congress on Federal recordkeeping.

We will develop a cost-effective approach to measure how Federal staff
view their agency records management programs and plan on developing and
issuing the survey in FY 2006.

We will use the results of this survey to help us determine what
additional advocacy activities for Federal records management programs
and training of Federal records managers are required. With our online
training and a professional certification program now under way, we have
seen an increase in Federal agency staff taking training for the first
time. We expect this trend to continue. We also expect a steady increase
in the number of people who seek professional certification.

A status of the initiatives we are undertaking is provided in the
section of this report entitled "Status of NARA Records Management" on
page 92. A report highlighting the progress of individual agencies in
managing and preserving their records, entitled "Federal Records
Management Evaluations," is available on page 96.

**[[1.2 Schedules for Capital Asset Plans]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   In coordination with OMB, develop a
                                     multi-pronged approach to embedding
                                     records management requirements into the
                                     capital planning and acquisition
                                     process.

  []{.mark}                  ****   Conduct needs assessment of Government
                                     and IT industry for the development of
                                     select records management service
                                     components for the Federal Enterprise
                                     Architecture (FEA).

  []{.mark}                  ****   Develop high-level requirements for
                                     candidate records management service
                                     components.

  []{.mark}                  ****   Complete a cooperative records project
                                     for at least one FEA Business Reference
                                     Model (BRM) Subfunction.

  **Results**                ****   We developed a set of high-level
                                     requirements for records management
                                     service components.

                             ****   We are participating in the Office of
                                     Personnel Management's (OPM) electronic
                                     Official Personnel File (e-OPF) project.
  -------------------------- ------- ----------------------------------------

*Discussion* We pursued a number of avenues for institutionalizing
agency incorporation of records management requirements into IT system
planning, including incorporating certain requirements in the Federal
Acquisitions Regulations (FAR) and establishing a Records Management
(RM) Profile in the Federal Enterprise Architecture (FEA). We identified
these approaches under the auspices of the Interagency Committee on
Government Information (ICGI) and through the Electronic Records Policy
Working Group (ERPWG), an interagency group chaired by NARA. We met with
the General Services Administration (GSA) FAR Secretariat and determined
that we need to develop comprehensive programmatic guidance for use as a
reference in any revision to the FAR. To fulfill this requirement, we
are working on a web-based Records Management Handbook that we will
deploy using the online Electronic Records Management (ERM) Toolkit. The
Toolkit, scheduled for a prototype deployment in FY 2006, will be a
NARA-managed Internet portal that will share ERM tools Government-wide.
This year we completed a draft of the RM Profile and have vetted the
draft internally and externally through a number of organizations,
including the Federal Records Council.

We continued supporting the President's e-Government initiatives through
the ERM Initiative, providing practical recordkeeping guidance and tools
to Federal agencies for managing electronic records. NARA is partnering
on this initiative with the Department of Defense, the Environmental
Protection Agency, and other agencies.

We are the lead agency for the ERM Initiative project to develop records
management service components. To identify core records management
requirements that could be supported by records management service
components, we held a series of facilitated workshops with records
management and enterprise information architecture stake­holders from 18
Federal agencies, NARA subject matter experts, and industry and academic
experts. These collaborative sessions resulted in a set of records
management activity names, an initial high-level set of functional
requirements, and a prioritized list of component activities. These
requirements serve as a baseline and starting point for the procurement
and development of records management service components.

NARA is using the OMB's FEA Business Reference Model (BRM) to develop
cooperative records management projects for agencies with common lines
of business. Our goal with these projects is to produce common records
schedules, standardized records manage­ment processes, and other common
products. We are participating in OPM's e-OPF project to digitize
Federal employee Official Personnel Files, a project that has
significant records management implications. We have commented on OPM's
Detailed Require­ments Anal­y­sis for NARA/National Personnel Records
Center (NPRC) e-OPF and on the e-OPF Process Guidance. We are working
with OPM's e-OPF policy working group to address recordkeeping
requirements required by NARA and have provided them with general
transfer guidance. We provided OPM with links to the applicable imaging
standards published by the Association for Information and Image
Management (AIIM) and the International Organization for Standardization
(ISO) to ensure OPM contractors are scanning records in accordance with
NARA requirements as well as industry-recognized quality conversion
standards. We also began the re-appraisal of the OPF to determine the
appropriate disposition recommendation. As the e-OPF project moves
forward we will continue to develop relevant disposition and technical
guidance.

*FY 2006 Performance Plan Evaluation* The ERM Initiative will continue
to promote the expansion of Government-wide electronic records
management with additional guidance products. We will work with the
Department of Defense to extend the DoD 5015.2-STD and interoperability
specifications. Future transitional products will be developed under the
auspices of ICGI.

  ----------------------------------------------------------- ---------- ----------
  **Performance Data**                                        **2004**   **2005**

  Number of Federal Enterprise Architecture Business          153        163
  Reference Model sub-functions                                          

  *Performance target for cumulative number of Federal        ---        *1*
  Enterprise Architecture Business Reference Model                       
  sub-functions covered by cooperative records projects*                 

  Cumulative number of Federal Enterprise Architecture        ---        0
  Business Reference Model sub-functions covered by                      
  cooperative records projects                                           
  ----------------------------------------------------------- ---------- ----------

**[[1.3 Scheduling and Appraisal Services]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Process records schedule items within  |
|                         | * | a median time of 200 calendar days or  |
|                         |  | less.                                  |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Prototype automated workflow and       |
|                         | * | col­lab­o­ration tools to support the     |
|                         |  | redesigned scheduling and appraisal    |
|                         | * | process.                               |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Increase by 10 percent the number of   |
|                         | * | Federal agencies that are satisfied    |
|                         |  | with NARA scheduling and appraisal     |
|                         | * | services.                              |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We processed records schedule items    |
|                         |   | within a median time of 372 calendar   |
|                         |   | days.                                  |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We prototyped automated workflow and   |
|                         |   | collaboration tools to support the     |
|                         |   | redesigned scheduling and appraisal    |
|                         |   | process.                               |
+-------------------------+---+----------------------------------------+
| #######                 |   | []{.mark}                              |
+-------------------------+---+----------------------------------------+
| ####### []{.mark}       |  | We released to Federal Records         |
|                         |   | Officers the results of our first      |
|                         |   | customer satisfaction survey.          |
+-------------------------+---+----------------------------------------+

*Discussion* We continue working steadily on processing records
schedules. Because this measure is affected by the age and item count of
specific records schedules, performance tends to fluctuate and is not
necessarily predictive of the effort involved in completing records
schedules. A factor in our inability to meet this year's goal was the
statistical impact of two schedules with substantial numbers of items
that took significant amounts of time to approve. To some degree, our
prioritization of work on other important rec­ords management initiatives
under way this year, such as the new records manage­ment training
curriculum and national records management projects, impacted our
ability to process records schedules. This demand will likely continue
until some of these initia­tives are self-sustaining.

We worked to conclude a two-year Business Processing Reengineering
effort of our records lifecycle business processes. Many of these
redesigned processes will be built into the Electronic Records Archives
(ERA). Using the new process models, we began to identify and further
define key process business rules that need to be incorporated into the
system to enable automation and support effective workflow. These
business rules will be used to meet ERA build requirements, and work in
support of the ERA Require­ments Management Plan will continue into FY
2006. The achievement of the "to-be" model will take several years and
will require the maturation of NARA's enterprise architecture.

In FY 2005 the two competing ERA vendors, as part of the Systems
Analysis and Design Phase, demonstrated their prototypes of the ERA
system. These successful prototype demonstrations ensure that NARA will
have a conceptual model to use for actual system implementation upon
conclusion of this phase of development.

A 2004 survey we conducted established a baseline measurement of Federal
agencies' level of satisfaction with NARA's scheduling and appraisal
services. Over the long term, repeated surveys will demonstrate
improvement in customer satisfaction with NARA's redesigned scheduling
and appraisal services. We conducted our initial survey in late FY 2004,
then spent much of the past year analyzing and reporting the results of
the survey. In response to the results of the survey, we reaffirmed our
efforts to improve the timeliness of records schedule approvals and the
utility of our scheduling guidance and announced that we will begin
monthly schedules status reports to agencies to keep them informed about
the progress of their records schedules throughout the approval process.

+-------------------------------------+----+----+----+----+----+----+
| ##### Performance Data              | ** | ** | ** | ** | ** | ** |
|                                     | 20 | 20 | 20 | 20 | 20 | 20 |
|                                     | 00 | 01 | 02 | 03 | 04 | 05 |
|                                     | ** | ** | ** | ** | ** | ** |
+=====================================+====+====+====+====+====+====+
| *Performance target for median time | -  | *  | *  | *  | *  | *  |
| for records schedule items          | -- | 26 | 24 | 22 | 22 | 20 |
| completed (in calendar days)*       |    | 0* | 0* | 5* | 0* | 0* |
+-------------------------------------+----+----+----+----+----+----+
| Median time for records schedule    | 2  | 2  | 4  | 1  | 2  | 3  |
| items completed (in calendar days)  | 83 | 37 | 70 | 55 | 53 | 72 |
+-------------------------------------+----+----+----+----+----+----+
| Average age of schedule items at    | 4  | 4  | 5  | 2  | 3  | 3  |
| completion (in calendar days)       | 61 | 10 | 32 | 74 | 32 | 39 |
+-------------------------------------+----+----+----+----+----+----+
| Number of schedule items completed  | 5  | 4  | 9  | 4  | 3  | 4  |
|                                     | ,6 | ,7 | ,3 | ,6 | ,1 | ,2 |
|                                     | 64 | 28 | 74 | 86 | 82 | 60 |
+-------------------------------------+----+----+----+----+----+----+
| Cost per records schedule item      | -  | -  | -  | -  | -  | \  |
| completed                           | -- | -- | -- | -- | -- | $2 |
|                                     |    |    |    |    |    | 56 |
+-------------------------------------+----+----+----+----+----+----+
| Number of records schedule items    | 1  | 6  | 1  | 1  | 5  | 6  |
| completed within 120 calendar days  | ,2 | 59 | ,9 | ,5 | 07 | 81 |
| of submission to NARA               | 29 |    | 99 | 73 |    |    |
+-------------------------------------+----+----+----+----+----+----+
| Percent of records schedule items   | 22 | 14 | 21 | 34 | 16 | 15 |
| completed within 120 calendar days  |    |    |    |    |    |    |
| of submission to NARA               |    |    |    |    |    |    |
+-------------------------------------+----+----+----+----+----+----+
| Percent of Federal agencies that    | -  | -  | -  | -  | 57 | -  |
| are satisfied with NARA scheduling  | -- | -- | -- | -- |    | -- |
| and appraisal services              |    |    |    |    |    |    |
+-------------------------------------+----+----+----+----+----+----+

*FY 2006 Performance Plan Evaluation* We have set our FY 2006 target for
closing out records schedules at a median time of 180 calendar days or
less. This target reflects that only gradual change is possible now.
However, with the implementation of new processes that we are addressing
through the Lifecycle Business Process Reengineering and the deployment
of the Electronic Records Archives, major improvements will be possible
in the future.

We will repeat our customer survey in FY 2006 to measure the impact of
our efforts to improve agencies' level of satisfaction with our
scheduling and appraisal services.

## Strategic Goal 2: Electronic Records {#strategic-goal-2-electronic-records .AR-2004-Head-2}

### Electronic records are controlled, preserved, and made accessible as long as needed. {#electronic-records-are-controlled-preserved-and-made-accessible-as-long-as-needed. .AR-2004-Head-3}

+-----------------------------+----------------------------------------+
| **Long-Range**              | 2.1. By 2008, NARA's Federal Records   |
|                             | Center Program accepts and services    |
| **Performance Targets**     | electronic records.                    |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 2.2. By 2008, 80 percent of scheduled  |
|                             | archival electronic records are        |
|                             | accessioned by NARA at the scheduled   |
|                             | time.                                  |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 2.3. By 2008, 80 percent of archival   |
|                             | electronic records are managed at the  |
|                             | appropriate level of service.          |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 2.4. By 2008, the median time from the |
|                             | transfer of archival electronic        |
|                             | records to NARA until they are         |
|                             | available for access is 35 days or     |
|                             | less.                                  |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 2.5. By 2008, the per megabyte cost of |
|                             | managing archival electronic records   |
|                             | through the Electronic Records         |
|                             | Archives decreases each year.          |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+

**FY 2005 Resources Available to Meet This Goal:** \$53,196,000; 86 FTE

**[[2.1 Servicing Electronic Records in NARA Records
Centers]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Enhance remote servicing capability    |
|                         | * | for elec­tronic Official Military       |
|                         |  | Personnel Files for the Army.          |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Establish detailed requirements for    |
|                         | * | the eventual migration of electronic   |
|                         |  | Official Military Person­nel Files to   |
|                         | * | the Electronic Records Archives (ERA)  |
|                         | * | system.                                |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop Record Center Program business |
|                         | * | model for electronic records.          |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete pilot program to store backup |
|                         | * | and inactive copies of agency          |
|                         |  | electronic media in selected records   |
|                         | * | center locations.                      |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete a pilot assessment for        |
|                         | * | converting agency records into digital |
|                         |  | formats on electronic record media.    |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop concept of operations and      |
|                         | * | functional requirements for a Records  |
|                         |  | Center Program Operations System.      |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Award contract for building a Records  |
|                         | * | Center Program Operations System.      |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We established detailed requirements   |
|                         |   | for the eventual migration of          |
|                         |   | electronic Official Military Personnel |
|                         |   | Files to ERA.                          |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We developed a business model for      |
|                         |   | electronic records for the Federal     |
|                         |   | Records Center Program.                |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We developed a concept of operations   |
|                         |   | and draft functional requirements for  |
|                         |   | a Records Center Program Operations    |
|                         |   | System.                                |
+-------------------------+---+----------------------------------------+

*Discussion* Since the beginning of FY 2000, NARA's Federal Records
Center Program (FRCP) has been fully reimbursable, which allows us to be
more flexible in responding to agency records needs and requires us to
meet those needs in a cost-effective and efficient way. Our ability to
provide our records center customers with responsive services for
electronic records is closely tied to our Electronic Records Archives
program. Until ERA is ready and can provide online servicing, we will
test the delivery of new offline services for electronic records, and we
have developed a five-year action plan to pilot new services.

In cooperation with the Department of Defense Joint Requirements and
Integration Office (JR&IO), we visited electronic OMPF operational sites
of the Departments of the Army, Navy, Air Force, Marine Corps, and the
U.S. Coast Guard (USCG) of the Department of Homeland Security. Earlier
this year JR&IO staff briefed members of our staff on the Defense
Integrated Military Human Resources System (DIMHRS). The military
departments and the USCG completed OMPF load surveys, describing system
functions, volumes, and migration time lines. We also obtained test and
sample data from the system owners. As a result of these data
collections and our interactions with the military departments and USCG,
we produced detailed requirements for the eventual migration of
electronic OMPFs.

In late FY 2004 we selected a contractor to conduct an industry market
analysis and help a NARA team develop a competitive strategy for our
FRCP to enter the electronic records services market. We hosted a
customer focus group to validate customer wants and needs. We accepted
the final draft of the business model and have begun the process to
identify and analyze next steps for implementing the business plan's
recommendations. We also evaluated the possibilities and advantages of
the FRCP providing electronic records services to Federal agencies,
including collaboration opportunities between the FRCP and other NARA
lines of business.

We validated design, construction, and environmental requirements for
facilities to receive and store physical media for temporary electronic
records and are incorporating these requirements into our pilot
assessments of the storage of electronic media. The pilot in the Central
Plains Region, Kansas City, MO, began on schedule. We finalized initial
procedures for the transfer and receipt of electronic storage media and
will test these procedures over the course of this pilot. Our pilot at
the Washington National Records Center in Suitland, MD, is behind
schedule in part because of the prior need to develop electronic media
storage requirements and because we needed to ensure the financial
stability of the FRCP before making a commitment of additional
resources. We are now proceeding with the design work and site
assessment for the Suitland location and are on track to implement this
pilot in FY 2006.

We began two separate pilots to establish a basic capability to provide
scanning and digital conversion services for Federal agencies. One, the
Production Scanning pilot, is in a testing phase while the other pilot,
SmartScan, a "scan-on-demand" service, has already moved from testing to
a fee-for-service activity. We have received the preliminary pilot
findings for the SmartScan pilot and we are reviewing and analyzing
these findings.

Our Records Center Program Operations System (RCPOS) will be the major
information resource to manage the FRCP and will help us work more
effectively with our customers. We will use RCPOS to manage our records
center holdings and track customer service transactions on those
holdings. Our development of RCPOS is running slightly behind the
aggressive schedule we set for this system. We have worked through most
of the initial steps for development of RCPOS, but the need to revise
some of the design docu­ments led us to delay finalizing subsequent
documents needed for system design. We were also unable to award the
contract to build RCPOS this fiscal year.

*FY 2006 Performance Plan Evaluation* We will use our business model for
the FRCP for electronic records services to deliver cost-effective,
valuable services to our agency customers. The knowledge and experience
from our pilots will be used to refine our services and prices for next
year.

We will award a contract to a certified document imaging architect
(CDIA) to gather and analyze findings from the two document conversion
pilots. The contractor will incor­porate potential and emerging
conversion requirements for NARA's customers and explore production
scanning as a potential service and conversion component of ERA. We will
use the final pilot findings from both the Production Scan and SmartScan
pilots, in conjunction with the CDIA contract deliverables, to establish
a menu of scanning and digital conversion options and associated fees.

We will complete our requirements and our analysis of alternatives and
award the contract to build RCPOS in early FY 2006.

**[[2.2 Accessioning Electronic Records]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   Establish business rules and priorities
                                     for putting legacy records control
                                     schedules into an ERA repository, and
                                     develop a plan for doing the work.

                                     

                             ****   Pre-accession two transfers of
                                     electronic records.

                                     

                             ****   Continue to identify and schedule
                                     Federal agency systems that generate
                                     electronic records.

                                     

  **Results**                       We analyzed alternative approaches to
                                     put legacy records control schedules
                                     into an ERA repository.

                                     

                                    We identified 245 electronic systems
                                     that generate electronic records that
                                     have not been scheduled.

                                     

                                    We discussed pre-accessioning with six
                                     agencies.
  -------------------------- ------- ----------------------------------------

*Discussion* We used our Resource Allocation methodology and the OMB BRM
to target our assistance to Federal agencies. Last year we completed,
based on the OMB BRM, an analysis of business processes, subfunctions,
and agency activities across the Govern­ment, based on the OMB BRM, that
are the most significant to protect legal rights, docu­ment government
accountability, and preserve records that document the national
exper­i­ence. Using these criteria, we identified 13 business lines and 23
business sub­functions where we perceived the records to be at highest
risk. We used this analysis to target our records management assistance
to helping agencies with those subfunctions schedule their criti­cal
electronic records systems. We identified 245 electronic records systems
this year and have developed schedules for 80 of these systems.

We discussed pre-accessioning electronic records with six agencies this
year While we have approved a schedule that calls for the near-term
physical transfer of electronic records, we have not yet been able to
initiate the transfer with the agency. We expect that more agencies will
consider pre-accessioning once we can point to concrete examples
demonstrating the advantages of this initiative.

We investigated several alternative approaches to putting legacy records
control sched­ules into an ERA repository. Due to the scope and
complexity of the work, we have postponed developing a plan for doing
the work until next year.

+-----------------------------------------+----+----+----+-----+-----+
| ##### Performance Data                  | ## | ## | ## | #   | #   |
|                                         | ## | ## | ## | ### | ### |
|                                         | #  | #  | #  | # 2 | # 2 |
|                                         | 20 | 20 | 20 | 004 | 005 |
|                                         | 01 | 02 | 03 |     |     |
+-----------------------------------------+----+----+----+-----+-----+
| Number of electronic records            | \  | -  | -  | 100 | 29, |
| accessioned in one of the new transfer  | -- | -- | -- |     | 840 |
| formats (in logical data records)       |    |    |    |     |     |
+-----------------------------------------+----+----+----+-----+-----+
| Size of accessioning backlog (in        | \  | -  | -  | 529 | 369 |
| millions of logical data records)       | -- | -- | -- |     |     |
+-----------------------------------------+----+----+----+-----+-----+
| Number of electronic records            | 2  | 7  | 68 | 43  | --- |
| transferred (in thousands of files)\*   | .1 | .8 | .3 | 2.9 |     |
+-----------------------------------------+----+----+----+-----+-----+
| Number of electronic records            | \  | \  | \  | 53  | 8   |
| transferred (in millions of logical     | -- | -- | -- | 3.6 | 5.3 |
| data records)                           |    |    |    |     |     |
+-----------------------------------------+----+----+----+-----+-----+
| *\* Figures represent the number of     |    |    |    |     |     |
| files transferred to NARA. The number   |    |    |    |     |     |
| of electronic records transferred, in   |    |    |    |     |     |
| logical data records, which is the      |    |    |    |     |     |
| preferred unit of measure, was not      |    |    |    |     |     |
| available until the Accession           |    |    |    |     |     |
| Management Information System upgrade   |    |    |    |     |     |
| was completed in 2004.*                 |    |    |    |     |     |
+-----------------------------------------+----+----+----+-----+-----+

*FY 2006 Performance Plan Evaluation* We will continue to survey
agencies to identify unscheduled electronic systems and, using our
resource allocation model, will work with agencies to get those systems
under approved records schedules. We do not anticipate that we will be
able to address completely our significant backlog of archival
electronic records until ERA is available. Until then, we will make
workflow improvements and minor enhancements to our system capabilities
in an attempt to keep up.

**[[2.3 Managing Electronic Records]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Establish criteria for levels of       |
|                         | * | service for archival electronic        |
|                         |  | records.                               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Identify and respond to results of     |
|                         | * | online survey to improve customer      |
|                         |  | usability of Access to Archival        |
|                         | * | Databases (AAD) system.                |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Add State Department cables and        |
|                         | * | digital photo­graphs to AAD.            |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Improve AAD's customer satisfaction    |
|                         | * | score to 65 on customer survey tool.   |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Increase archival electronic holdings  |
|                         | * | that are accessible online by 20       |
|                         |  | percent over prior year.               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Collect and preserve snapshots of      |
|                         | * | Federal Government web sites at the    |
|                         |  | end of the first Bush Presidential     |
|                         | * | term.                                  |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We established criteria for levels of  |
|                         |   | service for electronic records in our  |
|                         |   | holdings.                              |
+-------------------------+---+----------------------------------------+
| ####### []{.mark}       |   |                                        |
+-------------------------+---+----------------------------------------+
| #                       |  | We added digital photographs to AAD    |
| ###### "The data files  |   | from the Federal Emergency Management  |
| you have put online are |   | Administration (FEMA).                 |
|  absolutely fantastic." |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I just found          |  | We increased our archival electronic   |
| information about my    |   | holdings that are accessible online by |
| being a POW in WWII.    |   | 20 percent.                            |
| Thanks."*               |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   | []{.mark}                              |
+-------------------------+---+----------------------------------------+
| []{.mark}               |  | We completed the harvest of Federal    |
|                         |   | Govern­ment web sites at the end of the |
|                         |   | first Bush Presidential term.          |
+-------------------------+---+----------------------------------------+

*Discussion* In FY 2004 we learned from an online survey of customer
satisfaction and from independent experts that we needed to make
significant revisions to the AAD user interface. We contracted with a
web designer to help us implement many of the recom­mendations that came
out of the reports. We completed a significant amount of the re­design
and testing of the new site, but software issues prevented us from
launching the redesigned AAD in FY 2005. We have resolved the software
issues and will launch the redesigned AAD in the first quarter of FY
2006.

Among the more than 14 million logical data records added to AAD this
year are digital photographs from FEMA. We had planned to add a
collection of State Department cables, but we decided to wait until the
redesigned AAD is rolled out. The redesigned site will offer enhanced
searching capability that will enhance access to these cables.

To document the presence of Federal agencies on the Internet at the time
the Presidential administration ended in January 2005, we took
"snapshots" of Federal Government web sites. We have
activated*Webharvest.gov,* the new web site for Federal Agency public
web sites "harvested" as they existed prior to January 20, 2005. Through
this site we provide ongoing public access to these copied web sites and
will help future researchers understand how today's Federal Government
used the Internet to provide services and share information with the
public.

We prepared criteria for levels of service for electronic records in our
holdings. These levels of service will ensure that we establish
appropriate preservation and access plans for incoming electronic
records based on the content, expected reference activities, and
technical characteristics of those records. By having varying levels of
service, we will ensure that we provide appropriate service for all
electronic records in a cost-effective manner.

+---------------------------------------------+-----+-----+-----+-----+
| ##### Performance Data                      | **  | **  | **  | **  |
|                                             | 200 | 200 | 200 | 200 |
|                                             | 2** | 3** | 4** | 5** |
+=============================================+=====+=====+=====+=====+
| *Performance target for percent increase in | *-  | *-  | *   | *   |
| number of archival electronic holdings      | --* | --* | 50* | 20* |
| accessible online*                          |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Percent increase in number of archival      | --- | --- | 51  | 20  |
| electronic holdings accessible online       |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of archival electronic holdings      | 0   | 47  | 71  | 86  |
| accessible online (cumulative logical data  |     |     |     |     |
| records in millions)                        |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of archival electronic holdings      | 3,  | 4,  | 5,  | 8,  |
| (cumulative logical data records in         | 714 | 743 | 629 | 108 |
| millions)                                   |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Percent of electronic records available     | 0   | 1   | 1.4 | 1.1 |
| online                                      |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of online visits to AAD (in          | --- | 489 | 551 | 526 |
| thousands of visits)                        |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We will continue to add electronic
holdings to AAD, and we will use the online customer satisfaction survey
tool to evaluate the effectiveness of the redesigned AAD.

**[[2.4 Processing Electronic Records]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Process transfers of archival          |
|                         | * | electronic records within a median     |
|                         |  | time of 250 calendar days or less.     |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We processed archival electronic       |
|                         |   | records trans­fers within a median time |
|                         |   | of 413 calendar days.                  |
+-------------------------+---+----------------------------------------+

*Discussion* Our processing time improved from last year due to the
deployment of an upgraded Accession Management Information System, which
supports the overall accessioning process. We further improved our
processing time through the implemen­tation of a device that can provide
unattended evaluation of 20 digital linear tapes (DLTs) at a time. We
also completed a technical study to develop efficient network design for
scaling our current systems and identified the various software products
needed to validate the conformance of new format types acceptable to
NARA. Several small hardware and software procurements will assist us in
extending the use of our existing systems until deployment of ERA.

+---------------------------------------+-----+-----+-----+-----+-----+
| ##### Performance Data                | **  | **  | **  | **  | **  |
|                                       | 200 | 200 | 200 | 200 | 200 |
|                                       | 1** | 2** | 3** | 4** | 5** |
+---------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for median time   | *-  | *-  | *-  | *2  | *2  |
| to make archival electronic           | --* | --* | --* | 50* | 50* |
| accessions available for access (in   |     |     |     |     |     |
| calendar days)*                       |     |     |     |     |     |
+---------------------------------------+-----+-----+-----+-----+-----+
| Median time (in calendar days) for    | --- | --- | 450 | 736 | 413 |
| processing electronic records         |     |     |     |     |     |
| accessions from the time of transfer  |     |     |     |     |     |
| to NARA                               |     |     |     |     |     |
+---------------------------------------+-----+-----+-----+-----+-----+
| Number of electronic records          | 2.1 | 6.8 | 6   | 43  | --- |
| transferred (in thousands of files)\* |     |     | 8.3 | 2.9 |     |
+---------------------------------------+-----+-----+-----+-----+-----+
| Number of electronic records          | --- | --- | --- | 534 | 8   |
| transferred (in millions of logical   |     |     |     |     | 5.3 |
| data records)                         |     |     |     |     |     |
+---------------------------------------+-----+-----+-----+-----+-----+
| Cost per electronic record            | --- | --- | --- | \$0 | \$0 |
| transferred                           |     |     |     | .01 | .07 |
+---------------------------------------+-----+-----+-----+-----+-----+
| *\* Figures represent the number of   |     |     |     |     |     |
| files transferred to NARA. The number |     |     |     |     |     |
| of electronic records transferred, in |     |     |     |     |     |
| logical data records, which is the    |     |     |     |     |     |
| preferred unit of measure, was not    |     |     |     |     |     |
| available until the Accession         |     |     |     |     |     |
| Management Information System upgrade |     |     |     |     |     |
| was completed in 2004.*               |     |     |     |     |     |
+---------------------------------------+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We are working to implement the
recommen­dations of a technical study to extend our network capacity,
improve our Archival Preservation System (APS) software, and improve the
mechanisms for electronic file transfer modes. Despite these steps, we
expect significant challenges to our ability to keep up with the volume
of archival electronic records transferred to NARA in the near future.

**[[2.5 Cost of Electronic Records
Preservation]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Review system requirements with        |
|                         | * | competing vendors.                     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Conduct System Design Review with      |
|                         | * | competing vendors.                     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete Systems Design and Analysis   |
|                         | * | phase.                                 |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Select development contractor for the  |
|                         | * | ERA system.                            |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               | * | Complete ERA Domain Model.             |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We conducted System Requirements       |
|                         |   | Reviews and System Design Reviews for  |
|                         |   | the competing vendors.                 |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We have selected Lockheed Martin to    |
|                         |   | develop the ERA system.                |
+-------------------------+---+----------------------------------------+

*Discussion* Through the Electronic Records Archives (ERA), we are
addressing the challenges that the Federal Government faces in
economically and effectively managing, preserving, and making available
its electronic records at any time, and in any place, for as long as
needed. Throughout FY 2005 we held a design competition to determine who
will build ERA. We met frequently with the two competing vendors to
exchange tech­nical information and provide subject matter expertise. We
responded in a timely fashion to their questions to facilitate their
requirements-gathering and refinement. We produced a final Interface
Requirements Document to assist the vendors with interface require­ments,
identified and analyzed Review Item Discrepancies for each contractor's
System Requirements Specification (SyRS) and System Architecture and
Design Document submissions, and conducted Systems Requirements Reviews
for both contractors. We also analyzed the final SyRS to complete the
requirements review for the Systems Analysis and Design phase of the
design competition.

System Design Reviews for both contractors occurred in May. Our source
selection evaluation teams (cost, technical, and management) prepared
final contractor evaluation reports, and we awarded the development
contract in September. Throughout the down-select process, we ensured
there were comprehensive evaluations, fair competition, and an
evaluation process with adequate rationale and justification.

To further assist us, we formed a high-level committee of recognized
experts and leaders in their fields to advise and make recommendations
to NARA on issues related to the develop­ment, implementation, and use of
the ERA system. This Advisory Committee on the Electronic Records
Archives will provide an ongoing structure for bringing together experts
in computer science and information technology, archival science and
records management, information science, law, history, genealogy, and
education.

We continued our collaborative research efforts into issues related to
the lifecycle man­agement of electronic records that are beyond
state-of-the-art information technology or state-of-the-science
computer, information, or archival sciences. Our research and
explora­tory development activities were aligned with the work of the
Subcommittee on Networking and Information Technology Research and
Development program and the President's Management Council's vision of
Government-wide electronic records management in support of
e-Government. Specific direction to agencies encouraged research to
enable preservation and utility of electronic information archives and
creation of digital archives of core knowledge for research and
learning, as well as being able to produce, collect, store, communicate,
and share high amounts of electronic information. We continued to rely
to a large extent on established R&D management capabilities in partner
agencies.

We substantially completed the ERA Domain Model. This model will help
our con­trac­tors better understand our requirements and ensure that the
elements of ERA (the system architectures, designs, and workflows)
remain consistent over the course of system devel­opment.

Overall, the number of logical data records in NARA custody increased by
44 percent over last year, an increase of more than 2 billion logical
data records. It is important to recognize that all our performance
today represents is the ability to take custody and copy these
electronic records for preservation. The ability to preserve these
records in a persistent format over time and to make these records
readily accessible to the public is being addressed within the scope of
the ERA program.

The cost per megabyte to manage our archival electronic holdings fell
dramatically this year to \$0.72 per megabyte from last year's figure of
\$4.77. This drop is the result of the large increase in the electronic
holdings we have stabilized. The annual cost is divided by the
cumulative total of electronic holdings, and as we have seen a dramatic
increase in the electronic holdings we have stabilized (more than 2.4
billion logical data records in the past year alone) the cost per
megabyte has dropped accordingly.

+-------------------------------------------+----+----+----+----+----+
| ##### Performance Data                    | ** | ** | ** | ** | ** |
|                                           | 20 | 20 | 20 | 20 | 20 |
|                                           | 01 | 02 | 03 | 04 | 05 |
|                                           | ** | ** | ** | ** | ** |
+===========================================+====+====+====+====+====+
| *Performance target of percent of NARA's  | *4 | *6 | *6 | *9 | *8 |
| electronic holdings stabilized in         | 0* | 0* | 5* | 9* | 0* |
| preparation for their transfer to the     |    |    |    |    |    |
| Electronic Records Archives*              |    |    |    |    |    |
+-------------------------------------------+----+----+----+----+----+
| Percent of NARA's electronic holdings are | 97 | 98 | 97 | 93 | 99 |
| stabilized in preparation for their       |    |    |    |    | .7 |
| transfer to the Electronic Records        |    |    |    |    |    |
| Archives                                  |    |    |    |    |    |
+-------------------------------------------+----+----+----+----+----+
| Number of logical data records in NARA's  | 2  | 3  | 4  | 5  | 8  |
| custody (in millions)                     | ,3 | ,7 | ,7 | ,6 | ,1 |
|                                           | 45 | 14 | 25 | 29 | 08 |
+-------------------------------------------+----+----+----+----+----+
| Number of logical data records stabilized | 2  | 3  | 4  | 5  | 8  |
| (in millions)                             | ,2 | ,6 | ,5 | ,2 | ,0 |
|                                           | 72 | 42 | 94 | 52 | 84 |
+-------------------------------------------+----+----+----+----+----+
| Percent of Presidential logical data      | 99 | 49 | 49 | 62 | 90 |
| records managed and stabilized            |    |    |    |    |    |
+-------------------------------------------+----+----+----+----+----+
| Number of Presidential logical data       | 2  | 35 | 35 | 35 | 35 |
| records (in millions)                     | .2 | .3 | .3 | .3 | .3 |
+-------------------------------------------+----+----+----+----+----+
| Number of Presidential logical data       | 2  | 17 | 17 | 22 | 31 |
| records stabilized (in millions)          | .2 | .3 | .3 | .1 | .7 |
+-------------------------------------------+----+----+----+----+----+
| Per megabyte cost for stabilizing         | -  | -  | \$ | \$ | \$ |
| archival electronic records               | -- | -- | 4. | 4. | 0. |
|                                           |    |    | 50 | 77 | 72 |
+-------------------------------------------+----+----+----+----+----+

*FY 2006 Performance Plan Evaluation* Our challenge in FY 2006 is to
effectively oversee the performance of the contractor working to develop
the ERA system.

## Strategic Goal 3: Access {#strategic-goal-3-access .AR-2004-Head-2}

### Essential evidence is easy to access regardless of where it is or where users are for as long as needed. {#essential-evidence-is-easy-to-access-regardless-of-where-it-is-or-where-users-are-for-as-long-as-needed. .AR-2004-Head-3}

+-----------------------------+----------------------------------------+
| **Long-Range**              | 3.1. By 2007, access to records and    |
|                             | services and customer satisfaction     |
| **Performance Targets**     | levels meet or exceed NARA's published |
|                             | standards.                             |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.2. By 2007, 70 percent of NARA       |
|                             | services are available online.         |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.3. By 2008, 80 percent of NARA       |
|                             | archival holdings are described in an  |
|                             | online catalog.                        |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.4. By 2007, Government-wide holdings |
|                             | of 25-year-old or older records are    |
|                             | declassified, properly exempted, or    |
|                             | appropriately referred under the       |
|                             | provisions of Executive Order 12958,   |
|                             | as amended, through a series of        |
|                             | ISOO-led interagency efforts.          |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.5. By 2007, NARA archival holdings   |
|                             | of 25-year-old or older records are    |
|                             | declassified, properly exempted, or    |
|                             | appropriately referred under the       |
|                             | provisions of Executive Order 12958,   |
|                             | as amended.                            |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.6. By 2007, 10 percent of records of |
|                             | a two-term President or 15 percent of  |
|                             | records for a one-term President are   |
|                             | open and available for research at the |
|                             | end of the five-year post-Presidential |
|                             | period specified in the Presidential   |
|                             | Records Act.                           |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 3.7. By 2007, 90 percent of all        |
|                             | NHPRC-assisted projects produce        |
|                             | results promised in grant applications |
|                             | approved by the Commission.            |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+

**FY 2005 Resources Available to Meet This Goal:** \$146,139,000; 2,344
FTE

**[[3.1 Customer Service]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**             We met or exceeded NARA\'s published
                                     stan­dards for access to records and
                                     services, as noted below:

                             ****   95 percent of written requests are
                                     answered within 10 working days;

                             ****   90 percent of Freedom of Information Act
                                     (FOIA) requests are completed within 20
                                     working days;

                             ****   95 percent of requests for military
                                     service separation records at the
                                     National Personnel Records Center in St.
                                     Louis are answered within 10 working
                                     days;

                             ****   95 percent of items requested in our
                                     research rooms are furnished within one
                                     hour of request or of scheduled pull
                                     time;

                             ****   99 percent of customers with
                                     appointments have records waiting at the
                                     appointed time;

                             ****   95 percent of Federal agency records
                                     reference requests in Federal records
                                     centers are ready when promised to the
                                     customer;

                             ****   99 percent of records center shipments
                                     to Federal agencies are the records they
                                     requested;

                             ****   80 percent of archival fixed-fee
                                     reproduction orders through the Order
                                     Fulfillment and Accounting System (OFAS)
                                     are completed in 35 working days or
                                     less;

                             ****   95 percent of education programs,
                                     workshops, and training courses meet
                                     attendees' expectations.

                                     

                                     

  **Results**                       We answered 96 percent of written
                                     requests within 10 working days.

                                     

  *"You have proven that            We completed 80 percent of all FOIA
  outstanding customer               requests for Federal records within 20
  service is not a lost art          working days.
  at NARA."*                         

  *"Thanks to your                  We answered 88 percent of military
  conscientious employees            service separation records requests
  for their professionalism          within 10 working days.
  in handling inquiries for          
  our veterans*                      

  *and their dependents."*           

  *"The information that            We furnished 98 percent of requested
  your reference archivists          items within one hour of request or of
  have led me to has been            scheduled pull time.
  of*                                

  *key importance in my              
  research."*                        

                                    We furnished records at the appointed
                                     time for 99 percent of customers with
                                     appointments.

  *"Every request I have             
  ever sent has*                     

  *been met expeditiously,          We had ready 97 percent of Federal
  and with more courtesy             agency reference requests when promised
  than one might expect              to the customer.
  these days."*                      
  -------------------------- ------- ----------------------------------------

+-------------------------+---+----------------------------------------+
| *"Each year new issues  |  | Of the records we shipped to Federal   |
| take priority, but your |   | agencies, 99.99 percent were the       |
| staff always rises to\  |   | records agencies requested.            |
| the occasion."*\        |   |                                        |
| *---Member of Congress* |   |                                        |
+-------------------------+---+----------------------------------------+
| ########                |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed 98 percent of our         |
|                         |   | archival fixed-fee reproduction orders |
|                         |   | through OFAS in 35 days or less.       |
+-------------------------+---+----------------------------------------+
| *"Every speaker, every  |   |                                        |
| tour, every*            |   |                                        |
+-------------------------+---+----------------------------------------+
| *handout, every other   |  | Our users rated 99 percent of our      |
| attendee made my        |   | public education programs and          |
| learning experience     |   | workshops as meeting their             |
| very challenging and    |   | expectations.                          |
| satisfying."*           |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* Once again we met or exceeded almost all of our customer
service targets. Our customers received answers to their requests for
military service separation records within 10 days 88 percent of the
time, a significant increase from last year's figure of 75 percent but
below our goal for FY 2005. We continue to improve our performance and
expect to reach our target of 95 percent in FY 2006.

While the timeliness of our responses to Freedom of Information Act
(FOIA) requests improved over last year, we failed to meet our target
for completing 90 percent of FOIA requests for Federal records within 20
working days. A combination of factors has remained consistent over the
past several years in contributing to this. FOIA requests for military
records take considerably longer than the 20-day standard if the
requests are for records that were lost in the 1973 fire at the National
Personnel Records Center and the data must be reconstructed from other
sources, or if the records have been borrowed by another agency. Also,
the extent of time to respond to a FOIA can be lengthy if the records
must be referred to another agency for declassification review before
releasing the information, or if the records requested are particularly
voluminous. Overall, the average age of completed FOIAs declined to 18
working days in FY 2005, a significant improvement from last year.

We keep our target for FOIA response to Federal records high because we
believe we should aspire to the highest level of customer service
whenever possible. And, for the majority of requests, we are able to
meet or exceed our target. Sixty-seven percent of the more than 8,700
FOIAs for Federal records we completed were done in 10 days or less,
half the time required by law.

We continued to make steady progress in a multiyear project to microfilm
the records of the Bureau of Refugees, Freedmen, and Abandoned Lands
(Freedmen's Bureau) from the Reconstruction era, which contain a great
deal of information about the African Amer­i­can family experience across
15 states and the District of Columbia. The information is difficult to
extract, the records are fragile, and have only been available in one
NARA location. To date, we have distributed the microfilm of these
records to our regional archives and microfilm rental program for 12
states (Florida, Alabama, Arkansas, Georgia, Kentucky, Maryland,
Delaware, Louisiana, Mississippi, Missouri, North Carolina, and South
Carolina) and the District of Columbia, and we are on schedule to
complete the project within the five-year time frame. And, with the help
of a grant from the Peck Stacpoole Foundation and a partnership with
Howard University's Computer Science Department, we have launched an
indexing project to provide online access to Headquarters Marriage
Certificate files, some of the most popular files in this series for
genealogists.

+--------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data         | **  | **  | **  | **  | **  | **  |
|                                | 200 | 200 | 200 | 200 | 200 | 200 |
|                                | 0** | 1** | 2** | 3** | 4** | 5** |
+================================+=====+=====+=====+=====+=====+=====+
| *Performance target for        | *   | *   | *   | *   | *   | *   |
| written requests answered      | 80* | 80* | 85* | 85* | 90* | 95* |
| within 10 working days*        |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of written requests    | 92  | 93  | 93  | 94  | 95  | 96  |
| answered within 10 working     |     |     |     |     |     |     |
| days                           |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *   | *   | *   | *   | *   | *   |
| Freedom of Infor­mation Act     | 80* | 80* | 85* | 85* | 85* | 90* |
| requests completed within 20   |     |     |     |     |     |     |
| working days*                  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of Freedom of          | 27  | 27  | 76  | 61  | 65  | 80  |
| Information Act requests for   |     |     |     |     |     |     |
| Federal records completed      |     |     |     |     |     |     |
| within 20 working days         |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of FOIAs processed      | 8,  | 7,  | 8,  | 4,  | 5,  | 8,  |
|                                | 751 | 634 | 824 | 830 | 224 | 881 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual cost to process FOIAs   | --- | --- | \$1 | \$1 | \$1 | \$1 |
| (in millions)                  |     |     | .54 | .35 | .43 | .74 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual per FOIA cost           | --- | --- | \$  | \$  | \$  | \$  |
|                                |     |     | 175 | 265 | 273 | 196 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *-  | *-  | *-  | *-  | *   | *   |
| requests for mili­tary service  | --* | --* | --* | --* | 70* | 95* |
| separation records at the      |     |     |     |     |     |     |
| National Personnel Records     |     |     |     |     |     |     |
| Center (NPRC) in St. Louis     |     |     |     |     |     |     |
| answered within 10 working     |     |     |     |     |     |     |
| days*                          |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of requests for        | --- | 7   | 40  | 37  | 75  | 88  |
| military service separation    |     |     |     |     |     |     |
| records at NPRC answered       |     |     |     |     |     |     |
| within 10 working days         |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of military service     | --- | 297 | 361 | 390 | 372 | 350 |
| separation records (DD-214)    |     |     |     |     |     |     |
| requests received (in          |     |     |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Average price per request for  | --- | --- | --- | \   | \   | \   |
| military service separation    |     |     |     | $29 | $29 | $29 |
| records                        |     |     |     | .70 | .70 | .70 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *-  | *   | *   | *   | *-  | *-  |
| requests for all military      | --* | 25* | 30* | 35* | --* | --* |
| service records at NPRC        |     |     |     |     |     |     |
| answered within 10 working     |     |     |     |     |     |     |
| days*                          |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of requests for all    | 3   | 4   | 28  | 28  | 48  | 52  |
| military service records at    |     |     |     |     |     |     |
| NPRC answered within 10        |     |     |     |     |     |     |
| working days                   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for items  | *   | *   | *   | *   | *   | *   |
| requested in our research      | 95* | 95* | 95* | 95* | 95* | 95* |
| rooms furnished within one     |     |     |     |     |     |     |
| hour of request or scheduled   |     |     |     |     |     |     |
| pull time*                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of items requested in  | 89  | 93  | 94  | 96  | 98  | 98  |
| our research rooms furnished   |     |     |     |     |     |     |
| within one hour of request or  |     |     |     |     |     |     |
| scheduled pull time            |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of researchers visiting | --- | --- | 24  | 20  | 16  | 16  |
| our research rooms (in         |     |     | 8.7 | 4.5 | 8.8 | 5.6 |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of items furnished in   | 918 | 1,  | 613 | 607 | 696 | 537 |
| our research rooms (in         |     | 056 |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of items furnished on   | 818 | 985 | 578 | 584 | 866 | 527 |
| time in our research rooms (in |     |     |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *   | *   | *   | *   | *   | *   |
| customers with appointments    | 99* | 99* | 99* | 99* | 99* | 99* |
| for whom records are waiting   |     |     |     |     |     |     |
| at the appointed time*         |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of customers with      | 9   | 9   | 9   | 9   | 9   | 9   |
| appoint­ments for whom records  | 9.4 | 9.7 | 9.8 | 9.9 | 9.3 | 9.4 |
| are waiting at the appointed   |     |     |     |     |     |     |
| time                           |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *   | *   | *   | *   | *   | *   |
| Federal agency refer­ence       | 90* | 90* | 90* | 90* | 90* | 95* |
| requests in Federal records    |     |     |     |     |     |     |
| centers that are ready when    |     |     |     |     |     |     |
| promised to the customer*      |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of Federal agency      | 79  | 93  | 92  | 94  | 96  | 97  |
| reference re­quests in Federal  |     |     |     |     |     |     |
| records centers that are ready |     |     |     |     |     |     |
| when promised to the customer  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *-  | *   | *   | *   | *   | *   |
| records center shipments to    | --* | 99* | 99* | 99* | 99* | 99* |
| Federal agencies are the       |     |     |     |     |     |     |
| records they requested*        |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of records center      | --- | 99  | 99  | 99  | 99  | 99  |
| shipments to Federal agencies  |     | .99 | .99 | .99 | .99 | .99 |
| are the records they requested |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *-  | *-  | *   | *   | *   | *   |
| archival fixed-fee             | --* | --* | 50* | 60* | 75* | 80* |
| reproduction orders through    |     |     |     |     |     |     |
| OFAS are completed in 35       |     |     |     |     |     |     |
| working days or less*          |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of archival fixed-fee  | --- | --- | 88  | 99  | 9   | 9   |
| repro­duction orders through    |     |     |     |     | 9.9 | 7.2 |
| OFAS are comple­ted in 35       |     |     |     |     |     |     |
| working days or less           |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Average per order cost to      | --- | --- | --- | \   | \   | \   |
| operate fixed-fee ordering     |     |     |     | $26 | $29 | $27 |
|                                |     |     |     | .34 | .35 | .31 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Average order completion time  | --- | --- | 20  | 14  | 9   | 12  |
| (days)                         |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *   | *   | *   | *   | *   | *   |
| percent of education programs, | 90* | 90* | 95* | 95* | 95* | 95* |
| workshops, and training        |     |     |     |     |     |     |
| courses meeting attendees'     |     |     |     |     |     |     |
| expectations*                  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of education programs, | 95  | 97  | 96  | 95  | 99  | 99  |
| workshops, and training        |     |     |     |     |     |     |
| courses meeting attendees'     |     |     |     |     |     |     |
| expectations                   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of program attendees    | 6,  | 6,  | 8,  | 7,  | 8,  | 9,  |
|                                | 971 | 291 | 447 | 601 | 125 | 248 |
+--------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* For customer service targets that
we currently meet, we expect to continue that trend and have increased
our targets for several. For those that we have not met, we expect to
see steady improvements in FY 2006.

**[[3.2 Online Services]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Ensure 50 percent of NARA services are |
|                         | * | available online.                      |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Align our online acquisition           |
|                         | * | capabilities with the Integrated       |
|                         |  | Acquisition Environment e-Government   |
|                         | * | Initiative.                            |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We made 50 percent of our services     |
|                         |   | available online.                      |
| *"The \[redesigned      |   |                                        |
| Archives.gov\] site is  |   |                                        |
| beautiful and rich in   |   |                                        |
| content."*              |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"In the past month     |  | We expanded *Order Online!* to allow   |
| I've ordered six        |   | Internet users to search for and order |
| pension application and |   | copies of microform products.          |
| land entry files and    |   |                                        |
| received them all       |   |                                        |
| within two weeks. I was |   |                                        |
| amazed!"*               |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Disc*ussion We expanded the functional capability of *Order Online!* to
allow customers to perform online searches for microfilm available for
purchase, viewing, or renting and to order microform products. As a sign
that our online ordering capability is meeting the needs of our
customers, more than 50 percent of the fixed-fee orders we receive are
online orders. The application has been available to users 97 percent of
the time, and more than 32,000 users have accessed the site this year.

We continue to collect public feedback about *Archives.gov* and our
other web sites through our American Customer Satisfaction Index (ACSI)
online surveys of our sites and major application interfaces such as our
Archival Research Catalog (ARC) and Access to Archival Databases (AAD)
systems. The results of these surveys helped guide the design of our web
site, *Archives.gov,* to make it more helpful to our customers. In FY
2005 we redesigned *Archives.gov* to improve navigation of the site, a
need indicated by our web customer satisfaction survey results. In
recognition of our efforts we won "Best Practices, Best Web Design in
2005," a peer award voted by Federal web managers throughout Government
service.

Also in FY 2005 we launched web features about "The Declaration of
Independence: Our National Treasure" and the Electoral College. Both
features are designed to educate the public about archives and NARA's
services. The Electoral College feature, launched in October 2004,
addressed interest in the 2004 Presidential election, while the
"National Treasure" materials encouraged further interest from visitors
intrigued by the concepts of hidden messages and exploration of records
as presented in the motion picture *National Treasure.* We published
online the 9/11 Commission's recently released "Staff Monograph on the
Four Flights and Civil Aviation Security" as an adjunct to the frozen
public access version of the Commission's web site, which is now a
Federal record managed by NARA. We also provided online digital copies
of documents from our holdings relating to Supreme Court nominee John
Roberts. The timely publication of these documents online ensured the
widest possible public access to these materials.

+--------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data         | **  | **  | **  | **  | **  | **  |
|                                | 200 | 200 | 200 | 200 | 200 | 200 |
|                                | 0** | 1** | 2** | 3** | 4** | 5** |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Online visits to NARA's web    | 10, | 16, | 19, | 30, | 30, | 21, |
| sites (in thousands)\*         | 096 | 106 | 538 | 943 | 428 | 377 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Cost to provide NARA services  | --- | --- | --- | \$0 | \$0 | \$0 |
| online per visit               |     |     |     | .16 | .13 | .17 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for        | *-  | *-  | *   | *   | *   | *   |
| percent of NARA services       | --* | --* | 20* | 30* | 40* | 50* |
| available online*              |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of NARA services       | --- | 24  | 25  | 30  | 40  | 50  |
| available online               |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of NARA services online | --- | 29  | 30  | 36  | 48  | 59  |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *\*At the start of the year we |     |     |     |     |     |     |
| upgraded the tool (WebTrends)  |     |     |     |     |     |     |
| we use to collect our online   |     |     |     |     |     |     |
| visit statistics. The new      |     |     |     |     |     |     |
| version of this product does   |     |     |     |     |     |     |
| not count agents that index    |     |     |     |     |     |     |
| our site constantly (agents    |     |     |     |     |     |     |
| from search engines, for       |     |     |     |     |     |     |
| instance). As a result, while  |     |     |     |     |     |     |
| our overall online visit count |     |     |     |     |     |     |
| is lower this year, we have a  |     |     |     |     |     |     |
| total that better reflects the |     |     |     |     |     |     |
| number of actual visits to our |     |     |     |     |     |     |
| sites.*                        |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We are working on online services
to be deployed in FY 2006 to ensure that we will meet our target of 60
percent of our online services online. By the end of FY 2006, customers
will be able to submit an online request for copies of documents from
bankruptcy, civil, criminal, and Court of Appeals case files.

**[[3.3 Online Catalog]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Describe 40 percent of NARA            |
|                         | * | traditional holdings in the Archival   |
|                         |  | Research Catalog.                      |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Describe 40 percent of NARA artifact   |
|                         | * | holdings in the Archival Research      |
|                         |  | Catalog.                               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Describe 10 percent of NARA electronic |
|                         | * | holdings in the Archival Research      |
|                         |  | Catalog.                               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We described 42 percent of NARA        |
|                         |   | traditional holdings in the Archival   |
|                         |   | Research Catalog (ARC).                |
+-------------------------+---+----------------------------------------+
| *"Great service, very   |   |                                        |
| public oriented,*       |   |                                        |
+-------------------------+---+----------------------------------------+
| *and of course that     |  | We described 43 percent of NARA        |
| wonderful collection.   |   | artifact holdings in the ARC.          |
| Good work!"*            |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| *"All that information  |  | We described 31 percent of NARA        |
| at my fingertips. I     |   | electronic holdings in ARC.            |
| will be visiting and    |   |                                        |
| exploring this site     |   |                                        |
| often in the*           |   |                                        |
+-------------------------+---+----------------------------------------+
| ####### future."        | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| []{.mark}               |  | We have implemented ARC in all         |
|                         |   | archival units nationwide.             |
+-------------------------+---+----------------------------------------+

*Discussion* We continued our agency-wide description work this year and
now have more than 233,000 artifacts, 2.5 billion logical data records,
and over 1.3 million cubic feet of traditional holdings described and
searchable at the series or collection level in ARC via the Internet.
The Carter Library became the first archival unit in our agency to
describe 100 percent of its holdings in ARC.

+---------------------------------+----+-----+-----+-----+-----+-----+
| ##### Performance Data          | ** | **  | **  | **  | **  | **  |
|                                 | 20 | 200 | 200 | 200 | 200 | 200 |
|                                 | 00 | 1** | 2** | 3** | 4** | 5** |
|                                 | ** |     |     |     |     |     |
+=================================+====+=====+=====+=====+=====+=====+
| Percent of nationwide archival  | 13 | 1   | --- | --- | --- | --- |
| holdings described in an online | .9 | 3.2 |     |     |     |     |
| catalog                         |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Cubic feet of archival holdings | 2  | 2,  | --- | --- | --- | --- |
| (in thousands)                  | ,7 | 915 |     |     |     |     |
|                                 | 68 |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Cubic feet of archival holdings | 3  | 386 | --- | --- | --- | --- |
| described in an online catalog  | 86 |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| *Performance target for         | *  | *-  | *   | *   | *   | *   |
| traditional holdings in an      | -- | --* | 20* | 25* | 30* | 40* |
| online catalog*                 | -* |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of traditional holdings | -  | --- | 19  | 20  | 33  | 42  |
| in an online catalog            | -- |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of traditional holdings  | -  | --- | 550 | 602 | 1,  | 1,  |
| described in an online catalog  | -- |     |     |     | 033 | 344 |
| (thousands of cubic feet)       |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of traditional holdings  | -  | --- | 2,  | 3,  | 3,  | 3,  |
| in NARA (thousands of cubic     | -- |     | 890 | 025 | 157 | 167 |
| feet)                           |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| *Performance target for         | *  | *-  | *   | *   | *   | *   |
| artifact holdings in an online  | -- | --* | 20* | 25* | 30* | 40* |
| catalog*                        | -* |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of artifact holdings in | -  | --- | 19  | 17  | 40  | 43  |
| an online catalog               | -- |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of artifact holdings     | -  | --- | 90  | 90  | 215 | 233 |
| described in an online catalog  | -- |     |     |     |     |     |
| (thousands of items)            |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of artifact holdings in  | -  | --- | 470 | 528 | 540 | 544 |
| NARA (thousands of items)       | -- |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| *Performance target for         | *  | *-  | *0* | *0* | *5* | *   |
| electronic holdings in an       | -- | --* |     |     |     | 10* |
| online catalog*                 | -* |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of electronic holdings  | -  | --- | 0   | 0   | 10  | 31  |
| in an online catalog            | -- |     | .02 | .02 |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of electronic holdings   | -  | --- | 1   | 1   | 536 | 2,  |
| described in an online catalog  | -- |     |     |     |     | 539 |
| (millions of logical data       |    |     |     |     |     |     |
| records)                        |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of electronic holdings   | -  | --- | 3,  | 4,  | 5,  | 8,  |
| in NARA (millions of logical    | -- |     | 714 | 743 | 629 | 108 |
| data records)                   |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of ARC users (in         | -  | --- | 713 | 1,  | --- | --- |
| thousands of user hits\*)       | -- |     |     | 884 |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of ARC users (in         | -  | --- | --- | --- | 158 | 286 |
| thousands of visits\*)          | -- |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+

  -----------------------------------------------------------------------
  *\* Online visits: One person using our web site is counted as one
  "visit." It is a count of the number of visitors to our web site, and
  is similar to counting the number of people who walk through our front
  door. In contrast, it does not count "hits," which refers to the number
  of files used to show the user a web page. A visit in which a user
  accessed a web page comprising 35 files would count as one visit and 35
  hits. Count­ing visits is a more accurate way of showing how much use
  our web site is getting than counting hits.*

  -----------------------------------------------------------------------

*FY 2006 Performance Plan Evaluation* We anticipate meeting our targets
set for 2006. However, much of the description work occurring now is for
larger series and collections that represent considerably more holdings
and get more of our holdings into ARC quickly. As we move forward to
other smaller records series or collections, representing smaller
numbers of holdings, but more description work, our performance may
diminish simply because the methodology for measuring our performance
does not recognize the size of a series or collection. We must use this
methodology, however, because until archival holdings are processed, we
do not know how many series are contained in the materials.

**[[3.4 Government-wide Declassification]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   Ensure that 25 percent of the FY 2004
                                     baseline of Government-wide holdings of
                                     classified records 25 years old or older
                                     are declassified, properly exempted, or
                                     appropriately referred.

                                     

  **Results**                       We sampled eight agencies with the
                                     largest volume of records to be reviewed
                                     to assess the level of effort expended
                                     in FY 2005.

  []{.mark}                          []{.mark}

  []{.mark}                         We analyzed agency comments and updated
                                     a draft referral standard to assist
                                     agencies in meeting the automatic
                                     declassification deadline.
  -------------------------- ------- ----------------------------------------

*Discussion* In FY 2004 we tasked 75 agencies with developing
declassification plans for how they planned to meet the requirements of
Executive Order 12958, as amended. Of those tasked, 26 agencies did not
need to develop plans because they had no records subject to automatic
declassification. To date, we have confirmed that 22 of the 48 agen­cies
that have responsive records will make or are likely to make the
December 31, 2006, deadline. We are engaged in a cooperative effort with
the Office of the Secretary of Defense and the nine Unified Combatant
Commands to ensure that they meet the dead­line. We are working with the
White House to ensure that the White House offices that produce Federal
records not covered by the Presidential library system have
declass­i­fication programs. We are also reviewing the updated
declassification plans for eight agencies.

As one solution to meeting the December 31, 2006, deadline for automatic
declassi­fi­ca­tion, the Information Security Oversight Office (ISOO) is
working on standardizing the referral process for records that need to
be addressed by agencies with joint equities. We have encouraged the
development of a framework for a Government-wide declassifica­tion
training program and information sharing of declassification guidance
through the External Referral Working Group (ERWG), an interagency
working group within which the declassification community is well
represented.

+-----------------------------+------+------+------+-----+-----+-----+
| ##### Performance Data      | **20 | **20 | **20 | **  | **  | *   |
|                             | 00** | 01** | 02** | 200 | 200 | *20 |
|                             |      |      |      | 3** | 4** | 05\ |
|                             |      |      |      |     |     | *** |
+-----------------------------+------+------+------+-----+-----+-----+
| Number of pages             | 75.0 | 1    | 44.4 | 4   | 2   | TBD |
| declassified                |      | 00.1 |      | 3.1 | 8.4 |     |
| Govern­ment-wide (in         |      |      |      |     |     |     |
| millions of pages)          |      |      |      |     |     |     |
+-----------------------------+------+------+------+-----+-----+-----+
| Per page cost of            | \$   | \$   | \$   | \$1 | \$1 | TBD |
| Government-wide             | 3.08 | 2.32 | 2.55 | .25 | .70 |     |
| declassification            |      |      |      |     |     |     |
+-----------------------------+------+------+------+-----+-----+-----+
| Total cost of               | \$2  | \$2  | \$11 | \$5 | \$4 | TBD |
| declassification            | 30.9 | 31.9 | 2.96 | 3.8 | 8.3 |     |
| Govern­ment-wide (in         |      |      |      |     |     |     |
| millions of dollars)        |      |      |      |     |     |     |
+-----------------------------+------+------+------+-----+-----+-----+

*\*FY 2005 data will be collected from Federal agencies and reported to
the President in 2006.*

*FY 2006 Performance Plan Evaluation* Meeting the targets set forth in
E.O. 12958, as amended, will be very challenging. Security concerns
related to the war on terrorism may divert resources away from
declassification efforts Government-wide or lead to the withholding of
additional records. Agencies' cooperation is essential in identifying
the records subject to automatic declassification, impediments to
meeting the new deadline, and solutions to these impediments.

**[[3.5 NARA Declassification]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   Ensure that 50 percent of the FY 2004
                                     baseline of NARA archival holdings of
                                     classified records 25 years old or older
                                     are declassified, properly exempted, or
                                     appropriately referred.

                                     

                             ****   Scan 300,000 pages of Presidential
                                     archival materials eligible for
                                     declassification review as part of the
                                     Remote Archives Capture project.

                                     

  **Results**                       We released 527,210 pages of
                                     declassified Federal records and 77,553
                                     pages of declassified Presi­dential
                                     records.

                                     

                                    We scanned 562,502 pages of Presidential
                                     materials eligible for declassification
                                     review as part of the Remote Archives
                                     Capture project.
  -------------------------- ------- ----------------------------------------

*Discussion* FY 2005 was the first year of operation of the Interagency
Referral Center (IRC), our system designed to support the process of
agency review of referred materials in Federal records that are part of
the National Archives. By handling referrals through the IRC, NARA
retains physical and intellectual control of the records. The IRC gives
access to agency reviewers and allows us to prioritize the order in
which referrals are processed so we can deal with records of high
research interest in a timely manner. The IRC supports a standard method
for recording agency decisions, ensuring that when NARA staff process
the records for release or exemption, the agency determination will be
clearly understood and NARA will avoid inadvertent releases of still
sensitive information.

Our work to coordinate and support IRC activity is now the major task in
our declassifi­cation program. In our first year of operation we indexed
approximately 1.5 million pages for referral. We improved system
performance and are gaining experience in pre­paring unprocessed records
for the IRC. We saw a steady improvement in the amount of material
processed through the IRC over the course of the year and expect
continued improvement in FY 2006.

For classified materials in the Presidential library system for which we
have no delegated declassification authority, we continue to work in
partnership with the Central Intelli­gence Agency (CIA) to prepare and
scan classified materials for distribution to agencies with equities in
the documents.

+--------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data         | **  | **  | **  | **  | **  | **  |
|                                | 200 | 200 | 200 | 200 | 200 | 200 |
|                                | 0** | 1** | 2** | 3** | 4** | 5** |
+================================+=====+=====+=====+=====+=====+=====+
| Backlog of Federal records     | 52, | 25, | 20, | 18, | 25, | 25, |
| requiring declassification at  | 864 | 029 | 980 | 980 | 581 | 020 |
| start of year (in thousands)   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for annual | *   | *   | *   | *   | --- | *   |
| percent of Federal records     | 50* | 50* | 85* | 90* |     | 50* |
| NARA reviewed that are more    |     |     |     |     |     |     |
| than 25 years old for which    |     |     |     |     |     |     |
| NARA has declassification      |     |     |     |     |     |     |
| authority*                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual percent of Federal      | 15  | 9   | 12  | 7   | 2   | 2   |
| records NARA reviewed that are |     |     |     |     |     |     |
| more than 25 years old for     |     |     |     |     |     |     |
| which NARA has                 |     |     |     |     |     |     |
| declassi­fication authority     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Backlog of Presidential        | 1,  | 1,  | 1,  | 960 | 806 | 668 |
| materials requiring            | 978 | 562 | 240 |     |     |     |
| declassification at start of   |     |     |     |     |     |     |
| year (in thousands)            |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for annual | *   | *   | *   | *   | *-  | *   |
| percent of Presidential        | 25* | 25* | 85* | 90* | --* | 50* |
| records NARA reviewed that are |     |     |     |     |     |     |
| more than 25 years old for     |     |     |     |     |     |     |
| which NARA has                 |     |     |     |     |     |     |
| declassification authority*    |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual percent of Presidential | 21  | 21  | 23  | 16  | 17  | 67  |
| records NARA reviewed that are |     |     |     |     |     |     |
| more than 25 years old for     |     |     |     |     |     |     |
| which NARA has                 |     |     |     |     |     |     |
| declassi­fication authority     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 8,  | 2,  | 2,  | 1,  | 547 | 605 |
| reviewed                       | 052 | 129 | 490 | 257 |     |     |
|                                |     |     |     |     |     |     |
| (in thousands)                 |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 3,  | 807 | 402 | 340 | 116 | 35  |
| declassified (in thousands)    | 697 |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 7,  | 1,  | 2,  | 1,  | 994 | 527 |
| released                       | 678 | 788 | 184 | 092 |     |     |
|                                |     |     |     |     |     |     |
| (in thousands)                 |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 416 | 322 | 280 | 154 | 138 | 449 |
| pages reviewed (in thousands)  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 291 | 219 | 119 | 71  | 94  | 94  |
| pages declassified (in         |     |     |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 285 | 207 | 182 | 71  | 94  | 78  |
| pages released (in thousands)  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for annual | *\  | *3  | *3  | *6  | *3  | *3  |
| number of Presidential pages   | --* | 00* | 00* | 00* | 00* | 00* |
| scanned (in thousands)*        |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 160 | 322 | 332 | 470 | 500 | 563 |
| pages scanned (in thousands)   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Cost per page declassified     | *\  | *\  | *\  | \   | \   | TBD |
| (Federal and Presidential)     | --* | --* | --* | $23 | $24 |     |
|                                |     |     |     | .44 | .29 |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* Meeting the targets of Executive
Order 12958, as amended, will be a significant challenge.

**[[3.6 Presidential Records]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   Process an additional 2 percent of
                                     Clinton Presidential and Vice
                                     Presidential records for opening on
                                     January 20, 2006.

                                     

  **Results**                       We processed an additional 1 percent of
                                     Clinton Presidential and Vice
                                     Presidential records for opening on
                                     January 20, 2006.
  -------------------------- ------- ----------------------------------------

*Discussion* Progress continued to be slow in processing additional
records this year. We spent the first quarter of FY 2005 preparing for
the dedication of the William J. Clinton Library and Museum, as the
archival staff there participated in activities associated with the
dedication and engaged in public outreach following the November
dedication of the library. Our archival staff at Clinton worked until
the opening of the exhibit locating documents and other items for the
exhibit, assisting in the production of the museum orientation film,
reboxing documents for display in the museum exhibit, and installing the
museum exhibits. This work was essential in ensuring that the initial
exhibits in the museum are based on the primary source material housed
in the library. As we assessed our textual collections, we updated our
holdings count to reflect more accurately the holdings in our legal
custody. With the exhibit now open, we have devoted more time to the
review of records and, while we have fallen short of this year's goal,
have made substantial progress in preparing material for release to the
public on January 20, 2006.

+--------------------------------------+-----+-----+-----+-----+-----+
| ##### Performance Data               | **  | **  | **  | **  | **  |
|                                      | 200 | 200 | 200 | 200 | 200 |
|                                      | 1** | 2** | 3** | 4** | 5** |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for cumulative   | *1* | *3* | *3* | *5* | *5* |
| percent of Clinton Presidential and  |     |     |     |     |     |
| Vice Presidential traditional        |     |     |     |     |     |
| records processed for opening        |     |     |     |     |     |
| January 20, 2006*                    |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cumulative percent of Clinton        | 1   | 1   | 1   | 2   | 3   |
| Presidential and Vice Presidential   |     |     |     |     |     |
| traditional records processed for    |     |     |     |     |     |
| opening January 20, 2006             |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cumulative cubic feet of Clinton     | 28, | 28, | 37, | 39, | 34, |
| Presidential and Vice Presidential   | 925 | 925 | 686 | 049 | 818 |
| traditional records                  |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cumulative cubic feet of Clinton     | 291 | 291 | 291 | 752 | 944 |
| Presidential and Vice Presidential   |     |     |     |     |     |
| traditional records processed for    |     |     |     |     |     |
| opening                              |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for cumulative   | *0* | *0* | *0* | *0* | *0* |
| percent of Clinton Presidential and  |     |     |     |     |     |
| Vice Presidential electronic records |     |     |     |     |     |
| processed for opening January 20,    |     |     |     |     |     |
| 2006*                                |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for cumulative   | *0* | *0* | *0* | *0* | *0* |
| percent of Clinton Presidential and  |     |     |     |     |     |
| Vice Presidential artifacts          |     |     |     |     |     |
| processed for opening January 20,    |     |     |     |     |     |
| 2006*                                |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We will continue to devote our
resources to archival processing in FY 2006.

**[[3.7 NHPRC Grants]{.underline}]{.smallcaps}**

  -------------------------- ----------- ----------------------------------------
  **FY 2005 Objectives**     ****       87 percent of all NHPRC-assisted
                                         projects produce results promised in
                                         grant applications approved by the
                                         Commission.

                                         

  **Results**                           Of the NHPRC-assisted projects
                                         completed, 85 percent produced the
                                         results promised in their grant
                                         applications.

  *"The support that the                 
  NHPRC has*                             

  *provided us has been      []{.mark}   []{.mark}
  invaluable as we*                      

  *begin to create a                    We have made our application packages
  municipal archive here in              available for online applications on the
  Somerville."*                          *Grants.gov* web site.
  -------------------------- ----------- ----------------------------------------

*Discussion* We fell just short of meeting our target for successful
completion of our grant projects. This year we completed 107 projects,
91 of which produced the results promised in their grant applications.
Roughly 40 percent of the projects were publications efforts, and
approximately 60 percent were records projects. Of the 15 projects that
did not pro­duce the promised results, three of the records projects
actually never got under way and, therefore, we expended no grant
funding in those cases. From the work accom­plished this year, more than
9,400 cubic feet of records were reported by grantees to be preserved
and made acces­sible, and six documentary editions were published. We
continued posting NHPRC grant opportunities on the Government-wide
*Grants.gov* web site and made grant application forms available on our
*Archives.gov* web site. We simplified the process for our grantees by
accepting alternate means, such as fax, for the transmission of interim
reports and requests. We have also streamlined our grant guidelines and
have made our application packages available for online applications
using the *Grants.gov* portal. We have also completed a business process
engineering study and pursued sev­eral internal process improvements.

For a more list of NHPRC-funded grants products, visit
*www.archives.gov/nhprc/products/.*

+----------------------------------+----+----+-----+-----+-----+----+
| ##### Performance Data           | ** | ** | **  | **  | **  | ** |
|                                  | 20 | 20 | 200 | 200 | 200 | 20 |
|                                  | 00 | 01 | 2** | 3** | 4** | 05 |
|                                  | ** | ** |     |     |     | ** |
+==================================+====+====+=====+=====+=====+====+
| *Performance target for percent  | *8 | *8 | *   | *   | *   | *8 |
| of NHPRC grant-funded projects   | 2* | 4* | 84* | 85* | 86* | 7* |
| produced results promised in     |    |    |     |     |     |    |
| grant applications*              |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Percent of NHPRC grant-funded    | 94 | 91 | 79  | 86  | 88  | 85 |
| projects that produced results   |    |    |     |     |     |    |
| promised in grant applications   |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Number of NHPRC-assisted         | 67 | 1  | 104 | 72  | 96  | 1  |
| projects completed               |    | 15 |     |     |     | 07 |
+----------------------------------+----+----+-----+-----+-----+----+
| Number of NHPRC-assisted         | 63 | 1  | 82  | 62  | 84  | 91 |
| projects that produced the       |    | 05 |     |     |     |    |
| results promised                 |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Number of traditional records    | -  | -  | --- | --- | 1,  | 9  |
| preserved and made accessible    | -- | -- |     |     | 803 | ,4 |
| through our grants projects (in  |    |    |     |     |     | 34 |
| cubic feet)                      |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Number of electronic records     | -  | -  | --- | --- | 0   | 0  |
| preserved and made accessible    | -- | -- |     |     |     |    |
| through our grants projects (in  |    |    |     |     |     |    |
| logical data records)            |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Number of documentary editions   | -  | -  | --- | --- | 14  | 6  |
| published through our grants     | -- | -- |     |     |     |    |
| project (in volumes)             |    |    |     |     |     |    |
+----------------------------------+----+----+-----+-----+-----+----+
| Percent of NARA's grants         | -  | \  | --- | --- | 100 | 1  |
| announced on *Grants.gov*        | -- | -- |     |     |     | 00 |
+----------------------------------+----+----+-----+-----+-----+----+

*FY 2006 Performance Plan Evaluation* We anticipate meeting our target
for FY 2006. How­ever, it is important to note that the Commission and
its staff are committed to projects that will stretch the archival,
documentary editing, and electronic records com­munities, encouraging
them to take risks. While this will produce many more useful products,
it increases the possibility of projects being rated unsuccessful in
meeting their criteria.

As we work on internal process improvements, we are poised to invest in
a grants man­age­ment system that uses a shared services model. We will
implement the first phase of this system in FY 2006.

##   {#section-19 .AR-2004-Head-2}

## Strategic Goal 4: Space and Preservation {#strategic-goal-4-space-and-preservation .AR-2004-Head-2}

### All records are preserved in an appropriate environment for use as long as needed. {#all-records-are-preserved-in-an-appropriate-environment-for-use-as-long-as-needed. .AR-2004-Head-3}

+-----------------------------+----------------------------------------+
| **Long-Range**              | 4.1. By 2009, 100 percent of NARA's    |
|                             | archival holdings are in appropriate   |
| **Performance Targets**     | space.                                 |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 4.2. By 2009, 100 percent of NARA      |
|                             | records centers comply with the        |
|                             | October 2009 regulatory storage        |
|                             | standards.                             |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 4.3. By 2007, 50 percent of NARA's     |
|                             | at-risk archival holdings are          |
|                             | appropriately treated or housed so as  |
|                             | to retard further deterioration.       |
+-----------------------------+----------------------------------------+

**FY 2005 Resources Available to Meet This Goal:** \$63,981,000; 151 FTE

**[[4.1 Archival Holdings in Appropriate
Space]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Complete all renovations at the        |
|                         | * | National Archives Building.            |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Open Clinton Presidential Library.     |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete 50-percent concept design of  |
|                         | * | Roosevelt Library renovation.          |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete 50-percent concept design of  |
|                         | * | Kennedy Library renovation and         |
|                         |  | addition.                              |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete construction of the Southeast |
|                         | * | Regional Archives.                     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Accept final design of Pacific Alaska  |
|                         | * | Regional Archives and Records Center.  |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete facility specifications for   |
|                         | * | new military personnel records center  |
|                         |  | in St. Louis.                          |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete facility specifications and   |
|                         | * | lease agreement for the Southwest      |
|                         |  | Regional Archives.                     |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We substantially completed renovation  |
|                         |   | work in the National Archives          |
|                         |   | Building.                              |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We received the 15-percent concept     |
|                         |   | drawings for the Roosevelt Library     |
|                         |   | renovation.                            |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We received the 50-percent concept     |
|                         |   | drawings for the Kennedy Library       |
|                         |   | renovation.                            |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed site preparation for the  |
|                         |   | Pacific Alaska Regional Archives and   |
|                         |   | Records Center.                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We defined the program requirements    |
|                         |   | for a new National Personnel Records   |
|                         |   | Center facility.                       |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We received a revised concept design   |
|                         |   | for the Southwest Regional Archives.   |
+-------------------------+---+----------------------------------------+

*Discussion* We finished all substantial work in the renovation of the
National Archives Building, our major initiative in this area. We
completed all work in the base renovation contract, with only work to
replace electrical systems in the archival storage areas and some
refinishing on the Rotunda display cases left to complete next year.

We dedicated the Clinton Presidential Library and Museum. All archival
and artifact holdings from the Clinton administration are now housed in
this state-of-the-art facility that meets our storage standards. The
library's exhibit is now open to visitors, and the library has its
research room open with a small amount material available for research.

We also opened a new archival facility for the Southeast Region in
Morrow, GA. This facility consolidates operations that were previously
housed in three separate facilities in Georgia and Alabama. The facility
features ample storage space, meeting our environ­men­tal storage
standards and accessible facilities for our researchers and public
pro­gram attendees. The move to this new facility placed over 90,000
cubic feet of regional archival records under appropriate space and
environmental standards. With the reloca­tion of these records, NARA\'s
regional archives system went from having 9 percent of its hold­ings
under appropriate space and environmental standards to more than 18
percent.

We defined the program requirements for a combined military and civilian
personnel records center and prepared a draft plan and cost estimate for
moving to a new facility. While we did not complete the final design of
the Pacific Alaska Regional Archives and Records Center, we did complete
the site preparation for the facility.

The Roosevelt Library renovation design moved slower than expected but
should not have an adverse impact on the overall renovation. We received
the 50-percent concept drawings for the renovation of the Kennedy
Library and are on schedule for the remainder of this project.

Our cost per cubic foot to store our archival holdings this year was
\$6.48, an increase over last year's per cubic foot cost of \$6.11. As
we work to lower our storage costs while bringing more facilities into
compliance with our archival storage standards, we face a number of
factors that work against that goal, including rising rent costs, higher
utility rates, and the costs associated with maintaining security at our
facilities. We are following a strategy of leasing storage facilities
separate from our public use facilities. We can realize savings by
locating our public use facilities in areas where they reach the
greatest number of possible users while leasing facilities designed for
long-term storage in lower-cost areas.

+--------------------------------------------------+------+-----+-----+
| ##### Performance Data                           | **20 | **  | **  |
|                                                  | 03** | 200 | 200 |
|                                                  |      | 4** | 5** |
+==================================================+======+=====+=====+
| Percent of archival traditional holdings in      | ---  | 52  | 53  |
| appropriate space                                |      |     |     |
+--------------------------------------------------+------+-----+-----+
| Cubic feet of archival traditional holdings (in  | 3    | 3,  | 3,  |
| thousands)                                       | ,025 | 100 | 166 |
+--------------------------------------------------+------+-----+-----+
| Percent of artifact holdings in appropriate      | ---  | 42  | 42  |
| space                                            |      |     |     |
+--------------------------------------------------+------+-----+-----+
| Number of artifact holdings (in thousands)       | 528  | 540 | 543 |
+--------------------------------------------------+------+-----+-----+
| Percent of logical data record holdings in       | ---  | 100 | 100 |
| appropriate space                                |      |     |     |
+--------------------------------------------------+------+-----+-----+
| Number of logical data record holdings (in       | 4    | 5,  | 8,  |
| millions)                                        | ,743 | 629 | 108 |
+--------------------------------------------------+------+-----+-----+
| Cost of archival storage space per cubic feet of | ---  | \$6 | \$6 |
| traditional holdings stored                      |      | .11 | .48 |
+--------------------------------------------------+------+-----+-----+

*FY 2006 Performance Plan Evaluation* We expect to continue to stay
within budget and schedule targets for our facility projects.

**[[4.2 NARA Records Center Holdings in Appropriate
Space]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Close Birmingham, AL, Annex.           |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Close Denver, CO, Annex.               |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Close Fort Worth Building 5 Annex.     |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete lease agreement to construct  |
|                         | * | a records center facility in Fort      |
|                         |  | Worth, TX.                             |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | In coordination with GSA, implement an |
|                         | * | Energy Saving Operating Plan for the   |
|                         |  | Washington National Records Center.    |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We developed a facility repair plan to |
|                         |   | bring NARA records centers into        |
|                         |   | compliance with regulatory storage     |
|                         |   | standards by the 2009 deadline.        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* The primary thrust over the next several years must be to
upgrade our records center facilities to meet 2009 regulatory storage
standards or relocate to new facilities that are built to meet those
standards. These standards are in place to ensure that Federal records
are protected whether they are stored by NARA, another Federal agency,
or the private sector. We developed a facility repair plan to bring our
records centers into compliance with regulatory storage standards. This
plan includes the facility assessments that will be conducted to certify
that space meets required storage standards. We implemented the Energy
Saving Operating Plan for the Washington National Records Center by
completing the retrofit of the chiller plant and lighting in the
facility.

+------------------------------------+----+----+----+----+----+----+
| ##### Performance Data             | ** | ** | ** | ** | ** | ** |
|                                    | 20 | 20 | 20 | 20 | 20 | 20 |
|                                    | 00 | 01 | 02 | 03 | 04 | 05 |
|                                    | ** | ** | ** | ** | ** | ** |
+====================================+====+====+====+====+====+====+
| Percent of NARA records center     | -  | -  | -  | -  | 0  | 9  |
| buildings certified as complying   | -- | -- | -- | -- |    |    |
| with the October 2009 regulatory   |    |    |    |    |    |    |
| storage standards                  |    |    |    |    |    |    |
+------------------------------------+----+----+----+----+----+----+
| Volume of records center holdings  | 21 | 22 | 23 | 23 | 24 | 24 |
|                                    | .7 | .6 | .1 | .2 | .1 | .5 |
| (cubic feet in millions)           |    |    |    |    |    |    |
+------------------------------------+----+----+----+----+----+----+
| Storage price per cubic foot for   | \$ | \$ | \$ | \$ | \$ | \$ |
| records center holdings            | 1. | 1. | 2. | 2. | 2. | 2. |
|                                    | 96 | 96 | 00 | 10 | 16 | 16 |
+------------------------------------+----+----+----+----+----+----+

*FY 2006 Performance Plan Evaluation* We expect to continue to stay
within budget and schedule targets for our facility projects. We will
continue with certification of NARA records center buildings as we bring
them into compliance with October 2009 regula­tory storage standards.

**[[4.3 Preservation of At-Risk Holdings]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Appropriately treat or house 43        |
|                         | * | percent of NARA's at-risk archival     |
|                         |  | holdings so as to retard further       |
|                         | * | deterioration.                         |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Inventory and rehouse 8 percent of     |
|                         | * | Official Military Personnel Files      |
|                         |  | (OMPFs).                               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We inventoried and rehoused 5 percent  |
|                         |   | of OMPFs.                              |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* We assess our holdings regularly to identify those records
that have a high risk for deterioration, and then we preserve those
records by providing storage that retards deterioration or by treating,
duplicating, or reformatting records to preserve them for as long as
they are needed. In FY 2005 we conducted major surveys to determine the
overall condition of our holdings and entered additional records into
our risk data­bases. We continued our positive trend of the past several
years and exceeded our target this year by treating or housing 47
percent of NARA's at-risk archival holdings.

As a result of an internal review of our at-risk preservation metric, we
found that we need better consistency in what is deemed at-risk so that
we can better track our progress in addressing the records of highest
concern. We also determined that, to get a better picture of our overall
preservation challenges, we need to track those medium and low-risk
records that are getting treatment. We will develop new measures and
targets during FY 2006 that will better indicate where resources should
be applied and how effectively we are working.

While we failed to meet our goal of 8 percent of OMPFs inventoried and
rehoused by the end of the year, we did get all the physical space,
information technology resources, and staff in place for this project.
We were able to complete 5 percent of the OMPFs and anticipate meeting
the future goals for this project.

+-------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data        | **  | **  | **  | **  | **  | **  |
|                               | 200 | 200 | 200 | 200 | 200 | 200 |
|                               | 0** | 1** | 2** | 3** | 4** | 5** |
+===============================+=====+=====+=====+=====+=====+=====+
| *Performance target for       | *-  | *   | *   | *   | *   | *   |
| percent of cumulative backlog | --* | 30* | 32* | 36* | 40* | 43* |
| ever treated*                 |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of cumulative backlog | 25  | 28  | 32  | 35  | 41  | 47  |
| ever treated                  |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Start-of-year backlog volume  | 156 | 197 | 174 | 188 | 180 | 174 |
| of at-risk archival holdings  |     |     |     |     |     |     |
| (thousands of cubic feet)     |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Volume of at-risk archival    | 35  | 26  | 11  | 17  | 18  | 29  |
| holdings that received        |     |     |     |     |     |     |
| conservation treatment this   |     |     |     |     |     |     |
| year (thousands of cubic      |     |     |     |     |     |     |
| feet)                         |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Cumulative volume of at-risk  | --- | 63  | 67  | 74  | 80  | 86  |
| archival holdings in cold     |     |     |     |     |     |     |
| storage (thousands of cubic   |     |     |     |     |     |     |
| feet)                         |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of start-of-year      | 22  | 16  | 7   | 9   | 10  | 17  |
| remaining backlog treated     |     |     |     |     |     |     |
| this year                     |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for       | --- | --- | --- | --- | --- | *8* |
| cumulative percent of OMPFs   |     |     |     |     |     |     |
| inventoried and rehoused.*    |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+
| Cumulative percent of OMPFs   | --- | --- | --- | --- | --- | 5   |
| inventoried and rehoused.     |     |     |     |     |     |     |
+-------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* Due to the volume and overall poor
condition of the first accession of OMPFs, we will count the
preservation of the OMPFs separately from the backlog of at-risk
holdings waiting for treatment.

Significant increases in the cumulative backlog resulting from an
assessment we conducted in FY 2005 may result in our inability to meet
our FY 2006 target.

## Strategic Goal 5: Infrastructure {#strategic-goal-5-infrastructure .Style-AR-2004-Head-2-+-12-pt}

### NARA strategically manages and aligns staff, technology, and processes to achieve our mission.  {#nara-strategically-manages-and-aligns-staff-technology-and-processes-to-achieve-our-mission. .AR-2004-Head-3}

+-----------------------------+----------------------------------------+
| **Long-Range**              | 5.1. By 2008, the average time a       |
|                             | leadership position remains unfilled   |
| **Performance Targets**     | is 30 days or less.                    |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 5.2. By 2007, the percentages of NARA  |
|                             | employees in underrepresented groups   |
|                             | match their respective availability    |
|                             | levels in the Civilian Labor Force.    |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 5.3. By 2007, NARA accepts 100 percent |
|                             | of the validated legal documents       |
|                             | submitted electron­ically for           |
|                             | publication in the *Federal Register*. |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+
|                             | 5.4. By 2008, all public network       |
|                             | applications are available 99.9        |
|                             | percent of the time.                   |
+-----------------------------+----------------------------------------+
|                             |                                        |
+-----------------------------+----------------------------------------+

**FY 2005 Resources Available to Meet This Goal:** \$34,274,000; 123 FTE

**[[5.1 Recruitment and Development]{.underline}]{.smallcaps}**

  -------------------------- ------- ----------------------------------------
  **FY 2005 Objectives**     ****   Expand management trainee program to
                                     four additional NARA records centers.

                                     

                             ****   Fill leadership positions in an average
                                     time of 80 days or less.

                                     

                             ****   Complete pilot course on interviewer
                                     skills and techniques.

                                     

                             ****   Revise system for tracking and
                                     monitoring the timeliness of recruitment
                                     actions.

                                     

                             ****   Revise supervisors' performance plans to
                                     establish accountability for timely
                                     recruiting and selection.

                                     

                             ****   Maintain 95 percent of staff development
                                     plans linked to strategic outcomes.

                                     

                             ****   Maintain 95 percent of employee
                                     performance plans linked to strategic
                                     outcomes.

                                     

  **Results**                       We expanded the management trainee
                                     program to four additional NARA records
                                     centers.

                                     

                                    We filled leadership positions in an
                                     average time of 83 days.

                                     

                                    We completed a pilot course on
                                     interviewer skills and techniques and
                                     posted the final training products on
                                     our web site.

                                     

                                    We linked 92 percent of employee
                                     performance plans to strategic outcomes.

                                     []{.mark}

  []{.mark}                         We linked 78 percent of staff
                                     development plans to strategic outcomes.
  -------------------------- ------- ----------------------------------------

*Discussion* We continue to pursue a variety of tactics to help us
prepare our workforce for the challenges ahead. We produced a report on
our recruitment challenges and opportunities and have completed a plan
for implementing changes in our recruiting process. We implemented a
revised system to track and monitor the timeliness of our recruitment
actions. We missed our target of 80 days to fill leadership positions,
but our performance has improved from last year. We issued instructions
to our office heads to include in the critical elements of supervisors'
performance plans the supervisor responsibility to conduct interviews
and make employment selections on a timely basis.

We expanded our program to develop the next generation of records center
managers throughout NARA's Federal Records Center Program to four
additional records centers. The program addresses the critical issues of
retention of high-performing employees, succession planning as managers
leave, and the need to foster a formal management development program in
the records centers. The three-year program for selected interns
provides them with training, increasingly complex work assignments in a
variety of records center positions, a rotation through other NARA
operations, and assignment to special projects. Throughout this program,
the interns work closely with other NARA professionals, who serve as
mentors, as well as with each other on collaborative projects.

In FY 2005 we developed content for an *Interviewer Skills Guide* and
conducted a pilot session of an "Interviewer Skills Workshop" with a
group of NARA managers. These training products, designed for managers
who conduct applicant interviews, prepare managers to conduct effective
interviews and thereby increase the quality of selections.

We have fallen short on our targets, but the vast majority of our staff
had performance plans (92 percent) and staff development plans (78
percent) linked to NARA's Strategic Plan. We performed at or better than
our performance level last year, and we will continue to stress the
importance of these activities as we work to make these linkages a part
of all our employees' performance and development plans. While we did
not meet the targets associated with these actions, the process of
creating staff development plans continues to provide opportunities for
employee development that did not exist before our program began. Many
employees choose to enhance their current assignments through a variety
of job-shadowing, cross-training, and classroom training.

+----------------------------------------+----+----+----+-----+-----+
| ##### Performance Data                 | ** | ** | ** | **  | **  |
|                                        | 20 | 20 | 20 | 200 | 200 |
|                                        | 01 | 02 | 03 | 4** | 5** |
|                                        | ** | ** | ** |     |     |
+========================================+====+====+====+=====+=====+
| *Performance target for average time   |    |    |    |     | *   |
| (in calendar days) to fill a           |    |    |    |     | 80* |
| leadership position.*                  |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Average time (in calendar days) to     | *  | *  | *  | 90  | 83  |
| fill a leadership position             | -- | -- | -- |     |     |
|                                        | -* | -* | -* |     |     |
+----------------------------------------+----+----+----+-----+-----+
| *Performance target for percent of     | *5 | *9 | *9 | *   | *   |
| staff having performance plans that    | 0* | 5* | 5* | 95* | 95* |
| link to strategic outcomes*            |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Percent of staff having performance    | 48 | 80 | 93 | 91  | 92  |
| plans that link to strategic outcomes  |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Number of NARA staff having            | 1  | 2  | 2  | 2,  | 2,  |
| performance plans that link to         | ,4 | ,4 | ,8 | 826 | 843 |
| strategic outcomes                     | 39 | 97 | 84 |     |     |
+----------------------------------------+----+----+----+-----+-----+
| *Performance target for percent of     | *  | *5 | *9 | *   | *   |
| permanent staff having staff           | -- | 0* | 5* | 95* | 95* |
| development plans that link to         | -* |    |    |     |     |
| strategic outcomes*                    |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Percent of permanent staff having      | -  | 1  | 91 | 52  | 78  |
| staff development plans that link to   | -- |    |    |     |     |
| strategic outcomes                     |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Number of NARA staff having staff      | -  | 7  | 2  | 1,  | 2,  |
| development plans that link to         | -- |    | ,4 | 401 | 073 |
| strategic outcomes                     |    |    | 35 |     |     |
+----------------------------------------+----+----+----+-----+-----+
| Number of NARA permanent staff         | 2  | 2  | 2  | 2,  | 2,  |
|                                        | ,7 | ,7 | ,6 | 704 | 671 |
|                                        | 10 | 33 | 82 |     |     |
+----------------------------------------+----+----+----+-----+-----+
|                                        |    |    |    |     |     |
+----------------------------------------+----+----+----+-----+-----+

*FY 2006 Performance Plan Evaluation* We anticipate that we will meet
our FY 2006 targets and expect to see continued progress toward our
long-range target of filling leadership positions in an average of 30
days.

**[[5.2 Equal Employment Opportunity]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Ensure the percentages of NARA         |
|                         | * | employees in underrepresented groups   |
|                         |  | match 80 percent of their respective   |
|                         | * | availability levels in the Civilian    |
|                         | * | Labor Force.                           |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Increase the percentage of             |
|                         | * | underrepresented groups in pools of    |
|                         |  | applicants from which to select        |
|                         | * | candidates for positions in grades 13  |
|                         | * | and above over the percentage in FY    |
|                         |   | 2004.                                  |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We employed people in underrepresented |
|                         |   | groups so that our percentages matched |
|                         |   | at least 80 percent of the national    |
|                         |   | averages in three out of six           |
|                         |   | underrepresented groups.               |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We increased to 95 percent             |
|                         |   | underrepresented groups in pools of    |
|                         |   | applicants from which to select        |
|                         |   | candidates for positions in grades 13  |
|                         |   | and above.                             |
+-------------------------+---+----------------------------------------+

*Discussion* NARA is committed to achieving a workforce that reflects
the rich diversity of our nation, and we are pleased that we have met or
exceeded our representation goals for women, Blacks, and persons with
targeted disabilities. Representation of Latino-Hispanics, Asian
Americans/Pacific Islanders, and American Indians/Alaskan natives,
however, are below the targets we have set.

In response to this challenge and in the context of a larger effort to
redesign NARA's existing recruitment strategies, we are working to
identify targeted sources of highly qualified Latino-Hispanic applicants
for NARA positions, to establish ongoing channels of communication with
those sources, and to pursue outreach opportunities where possible.

Potential sources include colleges and universities with high
concentrations of Latino-Hispanic students enrolled in history,
archives, and other NARA-related pro­grams and disciplines;
Latino-Hispanic representatives of professional history, archival, or
other relevant organizations or associations; and Latino-Hispanic
executive groups such as the National Association for Hispanic Federal
Executives. We continue to explore partner­ships with organizations that
can help inform the Latino-Hispanic community about\
the mission, work, and career benefits of the National Archives and hope
to see an increase in the number of Latino-Hispanics interested in
Federal careers in history and archives.

We participated again this year in the Interagency Taskforce on Hispanic
Employment meeting sponsored by the Office of Personnel Management to
gain best practice infor­ma­tion from other Federal agencies who have
initiated successful recruitment and hiring programs. Finally, we are
looking to increase the use of our student employment pro­grams as a
mechanism for attracting Hispanic students to temporary positions within
NARA. Student employment work opportunities are an excellent way to
introduce stu­dents to the work of NARA and to encourage students to
pursue future careers in history and archives. For example, this year we
participated for the first time in the Hispanic Associ­ation of Colleges
and Universities National Internship Program by sponsoring an internship
placement for a student from Colorado State University, Pueblo.

+--------------------------------+-----+-----+-----+-----+----+-----+
| **Performance Data**           | **  | **  | **  | **  | ** | **  |
|                                | 200 | 200 | 200 | 200 | 20 | 200 |
|                                | 0** | 1** | 2** | 3** | 04 | 5** |
|                                |     |     |     |     | ** |     |
+================================+=====+=====+=====+=====+====+=====+
| *Performance target for        | *   | *   | *   | *   | *9 | *   |
| percent of applicant pools for | 49* | 64* | 75* | 79* | 0* | 93* |
| positions at grades GS-13 and  |     |     |     |     |    |     |
| above that contain people in   |     |     |     |     |    |     |
| underrepresented groups*       |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Percent of applicant pools for | 63  | 74  | 78  | 89  | 92 | 95  |
| positions at grades GS-13 and  |     |     |     |     |    |     |
| above that contain people in   |     |     |     |     |    |     |
| underrepresented groups        |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Number of applicants for       | --- | --- | 1,  | 1,  | 1  | 1,  |
| positions at grades GS-13 and  |     |     | 779 | 177 | ,7 | 570 |
| above                          |     |     |     |     | 83 |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Number of applicant pools for  | 24  | 53  | 101 | 85  | 1  | 131 |
| positions in grades GS-13 and  |     |     |     |     | 43 |     |
| above                          |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Number of pools for positions  | 15  | 39  | 79  | 76  | 1  | 124 |
| in grades GS-13 and above that |     |     |     |     | 32 |     |
| had self-identified appli­cants |     |     |     |     |    |     |
| in underrepresented groups     |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Percent of Civilian Labor      | --- | *   | *   | *   | *7 | *   |
| Force rate used to determine   |     | 50* | 60* | 65* | 0* | 80* |
| if underrepresented groups met |     |     |     |     |    |     |
| employment target              |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Percent of employees who have  | 19  | 27  | 52  | 72  | 66 | 62  |
| received diversity training    |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
|                                |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| Underrepresented groups of     |     |     |     |     |    |     |
| employees meeting target       |     |     |     |     |    |     |
| (checkmark indicates target    |     |     |     |     |    |     |
| met or exceeded)               |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+
| > ---Women                     |    |    |    |    |   |    |
| >                              |     |     |     |     |    |     |
| > ---Black                     |    |    |    |    |   |    |
| >                              |     |     |     |     |    |     |
| > ---Latino-Hispanic           |    |    |    |    |   |    |
| >                              |     |     |     |     |    |     |
| > ---Asian American/Pacific    |    |    |    |    |   |     |
| > Islander                     |     |     |     |     |    |     |
|                                |    |     |    |    |   |     |
| ---American Indian/Alaskan     |     |     |     |     |    |     |
| Native                         |     |     |     |     |    |     |
|                                |     |     |     |     |    |     |
| ---Targeted disability         |     |     |     |     |    |     |
+--------------------------------+-----+-----+-----+-----+----+-----+

*FY 2006 Performance Plan Evaluation* Further examination of our
processes for announc­ing vacancies and hiring will help us determine
where we are falling short in meeting our targets for certain
underrepresented groups.

[5.3 [*Federal Register* Production]{.smallcaps}]{.underline}

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Accept validated legal documents       |
|                         | * | submitted electronically for           |
|                         |  | publication in the *Federal Register*  |
|                         | * | from 12 agencies.                      |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Manage 50 percent of all *Federal      |
|                         | * | Register* documents electronically     |
|                         |  | using eDOCS.                           |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We have 15 agencies registered with    |
|                         |   | the ability to submit documents to the |
|                         |   | *Federal Register* electronically.     |
+-------------------------+---+----------------------------------------+
| ####                    | [ | []{.mark}                              |
|                         | ] |                                        |
|                         | { |                                        |
|                         | . |                                        |
|                         | m |                                        |
|                         | a |                                        |
|                         | r |                                        |
|                         | k |                                        |
|                         | } |                                        |
+-------------------------+---+----------------------------------------+
| #### []{.mark}          |  | We managed 22 percent of all *Federal  |
|                         |   | Register* documents electronically     |
|                         |   | using eDOCS.                           |
+-------------------------+---+----------------------------------------+

*Discussion* We continue to expand the availability of electronic
submission of *Federal Register* documents using the Electronic Editing
and Publishing System (eDOCS). We are now accepting electronic,
digitally signed *Federal Register* document submissions using
Certificate Authorities that are cross-certified by the public key
infrastructure. To date we have registered a total of 15 agencies to be
able to submit documents electronically to the *Federal Register.* We
began a reconfiguration of eDOCS to improve performance. This year we
used eDOCS to manage more than 7,000 documents, approximately 22 percent
of our total workload this year. While we missed the target we set for
FY 2005, we have seen a marked increase in the level of work managed
using eDOCS. The Federal Bridge Certifi­cation Authority (FBCA), an
independent Federal entity, is developing and testing appli­ca­tions to
enable cross-certification of signatures between different Federal
certifying authorities, and we expect these developments will support an
increase in the use of eDOCS in FY 2006.

+--------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data         | **  | **  | **  | **  | **  | **  |
|                                | 200 | 200 | 200 | 200 | 200 | 200 |
|                                | 0** | 1** | 2** | 3** | 4** | 5** |
+================================+=====+=====+=====+=====+=====+=====+
| *Performance target for        |     |     |     |     |     | *   |
| percent of documents Federal   |     |     |     |     |     | 50* |
| Register manages               |     |     |     |     |     |     |
| electronically using eDOCS.*   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
|                                |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of documents *Federal  | --- | --- | --- | --- | 9   | 22  |
| Register* manages              |     |     |     |     |     |     |
| electronically using eDOCS     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of documents NARA       | --- | --- | --- | --- | 3,  | 7,  |
| manages electronically using   |     |     |     |     | 032 | 066 |
| eDOCS                          |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of documents published  | 31, | 32, | 33, | 32, | 32, | 32, |
| in the *Federal Register*      | 925 | 036 | 055 | 066 | 417 | 429 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of documents submitted | --- | --- | --- | --- | 9   | 13  |
| for publication electronically |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of documents submitted  | --- | --- | --- | --- | 3,  | 4,  |
| for publication electronically |     |     |     |     | 032 | 142 |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of public inspection    | --- | --- | --- | --- | 3,  | 9,  |
| documents available to the     |     |     |     |     | 032 | 173 |
| public electronically          |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of official *Federal    | 155 | 163 | 150 | 160 | 208 | 142 |
| Register* documents retrieved  |     |     |     |     |     |     |
| online (in millions)           |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Number of rulemakings open for | --- | --- | --- | 371 | 240 | 849 |
| comment successfully retrieved |     |     |     |     |     |     |
| at *Regulations.gov* (in       |     |     |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We plan to accept validated legal
documents submitted electronically for publication in the *Federal
Register* from all agencies and manage 75 percent of all *Federal
Register* documents electronically using eDOCS in FY 2006. These goals
are linked to our ability to cross-certify agencies' Certificate
Authorities using the FBCA. We will also continue to improve and enhance
the new system and roll out the e-commerce functionality of eDOCS to
more agencies. We will also continue to participate in the development
of online rulemaking and interagency process integration, including
partnership with the Government Printing Office (GPO).

**[[5.4 Information Technology]{.underline}]{.smallcaps}**

+-------------------------+---+----------------------------------------+
| **FY 2005 Objectives**  | * | Public network applications are        |
|                         | * | available 97.0 percent of the time.    |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Upgrade physical security of NARA's    |
|                         | * | computer infrastructure at 50 percent  |
|                         |  | of NARA locations.                     |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Implement an enterprise repository for |
|                         | * | NARA's Enterprise Architecture and     |
|                         |  | associated Infor­mation Technology (IT) |
|                         | * | documentation.                         |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete development of an             |
|                         | * | enterprise-wide disaster recovery plan |
|                         |  | and an enterprise-wide continuity of   |
|                         | * | operations plan.                       |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete telecommunications upgrade.   |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | Our public network applications were   |
|                         |   | available 99 percent of the time.      |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We deployed an initial rollout of the  |
|                         |   | NARA Enterprise Information Technology |
|                         |   | Repository.                            |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed continuity of operations  |
|                         |   | plans for our agency leadership and    |
|                         |   | for continued publication of the       |
|                         |   | *Federal Register*.                    |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* We deployed an initial rollout of NARA's Enterprise
Information Technology Repository (NEITR). NEITR is a system that
provides a single, centralized, authoritative source of all information
assets associated with NARA's IT systems. The NEITR reposi­tory will
structure and hold all authoritative IT pro­gram information and publish
that information on NARA's internal web site for staff use.

We continue to install our integrated telephone system in our facilities
nationwide. We completed system design and installation at the new
Southeast Regional Records Center (Ellenwood, GA), the Southeast
Regional Archives (Morrow, GA), and the Pacific Regional Records Center
(Perris, CA). We have completed the detailed station design at our main
building in Washington, DC, and are in the process of installing new
telephones at all stations in the building.

We developed a plan for the physical security upgrade of the computer
infrastructure in our facilities nationwide. The first task in this plan
was to complete a configuration identification study to assess the
present condition of our computer infrastructure. We completed this
study this year. As part of this security upgrade, we have distributed
server racks to 80 percent of our locations and have installed and
key-locked racks at 19 of the 30 locations where server racks are
currently used to make our equipment more secure in those locations.

Regarding disaster recovery and continuity of operations planning, we
focused our efforts on enabling the continued NARA operations at the
headquarters level and the continued publication of the *Federal
Register*. We have identi­fied the critically important functions that
the agency must be able to perform if we are to continue to operate and
have made these functions the basis for our continuity of opera­tions
plan. We have also developed and tested an implementation plan to define
the steps and procedures that we will follow to put our continuity of
operations plan in operation.

+---------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data          | **  | **  | **  | **  | **  | **  |
|                                 | 200 | 200 | 200 | 200 | 200 | 200 |
|                                 | 0** | 1** | 2** | 3** | 4** | 5** |
+=================================+=====+=====+=====+=====+=====+=====+
| Percent of public network       | 9   | 9   | 9   | 9   | 100 | 9   |
| availability                    | 9.8 | 9.9 | 9.9 | 9.9 |     | 9.9 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for percent | *-  | *-  | *-  | *-  | *96 | *97 |
| availability of public          | --* | --* | --* | --* | .5* | .0* |
| applications*                   |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of public network       | --- | --- | --- | --- | 9   | 9   |
| applications availability       |     |     |     |     | 8.7 | 8.9 |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Number of total hours that any  | --- | --- | --- | --- | 1,  | 923 |
| public network application was  |     |     |     |     | 047 |     |
| unavailable                     |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Number of network users for     | --- | --- | --- | --- | 4.4 | 6.6 |
| public applications (in         |     |     |     |     |     |     |
| millions)                       |     |     |     |     |     |     |
+---------------------------------+-----+-----+-----+-----+-----+-----+
| Cost per network user for       | --- | --- | --- | --- | \$0 | \$0 |
| public applications             |     |     |     |     | .29 | .24 |
+---------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2006 Performance Plan Evaluation* We will continue to improve the
physical security of our computer infrastructure. We will also expand
our continuity of operations planning to more functions and sites in our
agency.

# FY 2005 Program Evaluations {#fy-2005-program-evaluations .AR-2004-Head-1}

## Strategic Goal 1: Records Management {#strategic-goal-1-records-management-1 .AR-2004-Head-2}

Office of Management and Budget, *Independent Verification and
Validation of E-Government Initiatives,* August 24, 2005.

The Office of Management and Budget contracted with Altarum to undertake
an independent verification and validation of e-Government initiatives
to ensure that projects are compliant with Federal standards and in line
with private industry. There are no recommendations associated with this
report.

## Strategic Goal 2: Electronic Records {#strategic-goal-2-electronic-records-1 .AR-2004-Head-2}

Government Accountability Office, GAO-05-802, *Acquisition of ERA is
Progressing,* July 12, 2005.

The objective of this review was to determine (1) the extent to which
NARA has achieved the ERA program's cost, schedule, and performance
objectives and defined the risks to future objectives and (2) the status
of NARA's efforts to address prior GAO recommendations on the ERA
acquisition. The GAO carried forward four of the five prior
recom­menda­tions but made no new recommen­dations.

## Strategic Goal 3: Access {#strategic-goal-3-access-1 .AR-2004-Head-2}

Government Accountability Office, GAO Engagement 350684, *DoD/DOE's
Classification Management Systems,* March 17, 2005.

GAO is examining the efficiency and effectiveness of DoD's and DOE's
classi­fication and declassification operations, including actions the
departments have taken to ensure (1) compliance with applicable laws,
regulations, and other offi­cial guidance; (2) that individuals
authorized to classify information or man­age the classification systems
have been sufficiently trained to do so; and (3) that classification
actions are consistently applied department-wide. A report has not been
issued.

Office of Inspector General, OIG Audit Memorandum 05-20, *Review of
NHPRC Grants,* July 29, 2005.

The Inspector General conducted a review of NHPRC grants. There are no
recommendations associated with this audit memorandum.

##  {#section-24 .AR-2004-Head-2}

## Strategic Goal 4: Space and Preservation {#strategic-goal-4-space-and-preservation-1 .AR-2004-Head-2}

Office of Inspector General, OIG Audit Memorandum 05-13, *Evaluation of
NARA's Preservation Program,* June 22, 2005.

The Inspector General reviewed NARA's preservation program to determine
whether established controls provide adequate assurance that archival
records needing preservation are identified and serviced in a timely
manner. Nine recommendations were made, and eight remain open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, February 24, 2005.

The office conducted a review of the Northeast Region records center in
Pittsfield, MA. Three recommendations were made and remain open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, April 4, 2005.

The office conducted a review of the Eisenhower Presidential Library and
Museum. One recommendation was made, which was closed in May 2005.

Office of Administrative Services, *Physical Security and Life Safety
Review*, May 30, 2005.

The office conducted a review of the Pacific Region (San Francisco)
archives and records center in San Bruno, CA. Three recommendations were
made, of which two have been closed.

Office of Administrative Services, *Physical Security and Life Safety
Review*, May 31, 2005.

The office conducted a review of the Harry S. Truman Presidential
Library and Museum. One recommendation was made and remains open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, May 31, 2005.

The office conducted a review of the Central Plains Region Bannister
Road facility in Kansas City, MO. One recommendation was made and
remains open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, June 6, 2005.

The office conducted a review of the Lyndon Baines Johnson Presidential
Library and Museum. Three recommendations were made and remain open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, July 26, 2005.

The office conducted a review of the William Jefferson Clinton
Presidential Library. Thirteen recommendations were made and remain
open.

##  {#section-25 .AR-2004-Head-2}

## Strategic Goal 5: Infrastructure {#strategic-goal-5-infrastructure-1 .AR-2004-Head-2}

Office of Inspector General, OIG Report 05-21, *Review of Contractor
Resources Utilized on the Information Technology Support Services
Contract,* September 9, 2005.

The Inspector General evaluated whether the contractor provided the
appropriate resources, to determine if contractor personnel were
qualified for the positions assigned, and to determine if contractor
personnel had the appropriate background investigations required by the
contract. Two recommendations, which remain open, were made in this
report.

Office of Inspector General, OIG Audit Memorandum 05-19, *Review of
Proposed Modification of the Information Technology Support Services
Task Order Security Program Requirements*, July 6, 2005.

The Inspector General reviewed the appropriateness of the proposed
modifications. There are no recommendations associated with this audit
memorandum.

Office of Inspector General, OIG Report 05-16, *Prompt Payment Audit*,
July 22, 2005.

> The Inspector General reviewed compliance with the Prompt Payment rule
> and tested transactions to determine proper calculations. Two
> recommendations were made and remain open.

Office of Inspector General, OIG Report 05-15, *Audit of the Travel Card
Program*, July 22, 2005.

> The Inspector General reviewed operation of the travel card program to
> ascertain whether it is operating in conformance with applicable laws,
> regulations, and agency policies and procedures. Five recommendations
> were made and remain open.

Office of Inspector General, OIG Report 05-14, *Review of the
Information Technology Support Services (ITSS) Contractor's Quality
Assurance and Quality Control Program*, August 12, 2005.

> The Inspector General evaluated the contractor's quality assurance and
> quality control program performed under the ITSS contract task order.
> There are two recommendations, which remain open, associated with this
> report.

Office of Inspector General, OIG Report 05-10, *Review of NARA's
Information Technology Investment Management Decide Process Accomplished
for the Novell Software Upgrade Project*, March 30, 2005.

> The Inspector General reviewed this process to determine if NARA's IT
> Investment Management Decide Process was used to plan and approve the
> Novell Netware/GroupWise software upgrade project. Two recommendations
> were made and remain open.

Office of Inspector General, OIG Report 05-09, *Audit of NARA's
Intrusion Detection System*, April 1, 2005.

> The Inspector General evaluated the current intrusion detection system
> to deter­mine whether adequate controls are in place to safeguard
> NARA's infor­mation system network and assets. Seven recommendations
> were made, of which five have been closed.

Office of Inspector General, OIG Report 05-07, *Audit of the National
Archives Trust Representation Fund*, March 18, 2005.

> The Inspector General review was to ensure that the Representational
> Fund is operating in compliance with pertinent laws and regulations.
> Three recommen­da­tions were made, all of which were closed by May 17,
> 2005.

Office of Inspector General, OIG Report 05-06, *Evaluation of NARA's
Processes for Handling Personal Information Collected from the Public*,
March 14, 2005.

> The Inspector General reviewed this process to determine how NARA
> handles personal information it collects on selected information forms
> and to evaluate the adequacy of protections given to this information.
> One recommendation was made and remains open.

Office of Inspector General, OIG Report 05-05, *Review of Management of
NARA's Help Desk*, February 23, 2005.

> The Inspector General reviewed help desk services to determine if the
> contractor is providing services that satisfy contractual requirements
> and meet user expectations. One recommendation was made and remains
> open.

Office of Inspector General, OIG Report 05-01, *Review of NARA's
Acquisition of Storage Management*, March 9, 2005.

> The Inspector General reviewed NARA's purchase and implementation of
> Legato software to determine if it was accomplished in accordance with
> NARA policy. One recommendation was made and remains open.

## Multi-Goal Evaluations {#multi-goal-evaluations .AR-2004-Head-2}

Office of Inspector General, OIG Report 05-08, *Evaluation of NARA's FY
2004 Management Control Program*, February 10, 2005.

> The Inspector General reviewed NARA's FY 2004 Management Control
> Program. No recommendations were made.

Office of Inspector General, OIG Report 05-02, *Clifton Gunderson LLP
(CG) Audit of the National Archives and Records Administration FY 2004
Financial Statements*, November 29, 2004.

> The Inspector General contracted with Clifton Gunderson (CG) to review
> financial statements as well as internal controls and operations. CG
> made 39 recommendations, of which complete documentation has been
> provided to the auditors for 31 recommendations.

Office of Regional Records Services, *Program Review*, September 1,
2005.

> The office conducted a program review at the Military Personnel
> Records Center and Civilian Personnel Records Center in St. Louis, MO.
> Four recommendations were issued.

Office of Presidential Libraries, *Program Review*, April 11--13, 2005.

> The office conducted a program review at the Harry S. Truman Library
> in Independence, MO. A final report was issued on September 8, 2005.

Office of Presidential Libraries, *Program Review*, August 1--4, 2005.

> The office conducted a program review at the William J. Clinton
> Library in Little Rock, AR. A final report was issued on September 8,
> 2005.

For more information about these reports, contact the Policy and
Planning Staff at 301-837-1850 or by e-mail at *vision@nara.gov.*

# Status of NARA Records Management Initiatives {#status-of-nara-records-management-initiatives .AR-2004-Head-1}

In FY 2005,we made substantial progress in further implementing the
strategies docu­mented in NARA's FY 2003 issuance of *Strategic
Directions for Federal Records Management*. The following table provides
a brief description of the strategies and specific examples of how these
strategies have benefited Federal agencies in the past fiscal year.

+--------+------------------------------+------------------------------+
| **Sp   | **Brief Description**        | **Benefits to agencies**     |
| ecific |                              |                              |
| Stra   |                              |                              |
| tegy** |                              |                              |
+========+==============================+==============================+
| App    | The policy documents the     | -   We published proposed    |
| raisal | strategic framework,         |     guidelines for           |
|        | objectives, and guidelines   |     appraising R&D records   |
|        | used to determine archival   |     of permanent value in    |
|        | value. The policy provides   |     the *Federal Register*.  |
|        | general appraisal guidelines |     Revised guidelines,      |
|        | as well as guidelines for    |     incorporating agency     |
|        | specific categories of       |     comments, will be issued |
|        | records, including personal  |     in FY 2006.              |
|        | data records, observational  |                              |
|        | data from the physical       | -   We developed and         |
|        | sciences, and environmental  |     internally vetted new    |
|        | health and safety records.   |     guidance on the          |
|        |                              |     intrinsic value of       |
|        |                              |     records. The guidelines  |
|        |                              |     will be incorporated in  |
|        |                              |     the appraisal policy in  |
|        |                              |     FY 2006.                 |
+--------+------------------------------+------------------------------+
| C      | The policy addresses the     | -   We developed procedures  |
| ustody | authority and responsibility |     for processing and       |
|        | of the Archivist for         |     evaluating proposals to  |
|        | physical and legal custody   |     establish new affiliated |
|        | of permanent Federal         |     archives.                |
|        | records.                     |                              |
|        |                              | -   We are in the process of |
|        |                              |     considering new agency   |
|        |                              |     affiliates. Affiliated   |
|        |                              |     archives relationships   |
|        |                              |     allow agencies to        |
|        |                              |     maintain physical        |
|        |                              |     custody of their         |
|        |                              |     holdings while legal     |
|        |                              |     custody is maintained by |
|        |                              |     NARA.                    |
+--------+------------------------------+------------------------------+
| Man    | NARA has simplified the      | -   Regulations implementing |
| datory | process for agencies to      |     this statutory change    |
| Destr  | extend retention periods     |     have been drafted and    |
| uction | beyond the destruction date  |     will be included as part |
|        | specified in the schedule.   |     of our overall effort to |
|        |                              |     revise records           |
|        |                              |     management regulations.  |
+--------+------------------------------+------------------------------+
| Ad     | We are actively engaging     | -   NARA's advocacy program  |
| vocacy | senior Federal agency        |     has resulted in more     |
|        | officials in discussions and |     than 90 meetings,        |
|        | meetings on the importance   |     discussions, and         |
|        | of records management in the |     presentations by NARA    |
|        | Federal government.          |     senior officials to      |
|        |                              |     senior agency            |
|        |                              |     counterparts (i.e.,      |
|        |                              |     Archivist and Deputy     |
|        |                              |     Archivist meeting with   |
|        |                              |     agency leaders, our CIO  |
|        |                              |     meeting with other CIOs, |
|        |                              |     our General Counsel      |
|        |                              |     meeting with other       |
|        |                              |     General Counsels, and    |
|        |                              |     office to office head    |
|        |                              |     meetings) at other       |
|        |                              |     Federal agencies. As a   |
|        |                              |     result, senior agency    |
|        |                              |     officials are now better |
|        |                              |     informed about records   |
|        |                              |     management. In           |
|        |                              |     particular, discussions  |
|        |                              |     have focused on the      |
|        |                              |     immedi­ate and long-term  |
|        |                              |     cost benefit of building |
|        |                              |     record­keeping            |
|        |                              |     requirements into the    |
|        |                              |     develop­ment of IT        |
|        |                              |     systems and their        |
|        |                              |     ability to access        |
|        |                              |     authentic, reliable, and |
|        |                              |     trustworthy records      |
|        |                              |     whenever they are needed |
|        |                              |     for their business use.  |
|        |                              |                              |
|        |                              | ```{=html}                   |
|        |                              | <!-- -->                     |
|        |                              | ```                          |
|        |                              | -   We worked closely with   |
|        |                              |     several Federal agencies |
|        |                              |     to stage COOP exercises  |
|        |                              |     and assist in            |
|        |                              |     COOP-related workshops   |
|        |                              |     to share information on  |
|        |                              |     vital rec­ords and        |
|        |                              |     recovery guidance for    |
|        |                              |     dam­aged records. Through |
|        |                              |     these collab­or­a­tions, we |
|        |                              |     estab­lished important    |
|        |                              |     contacts with FEMA and   |
|        |                              |     GSA officials, resulting |
|        |                              |     in enhanced coordi­nation |
|        |                              |     and infor­mation          |
|        |                              |     exchanges in response to |
|        |                              |     the Hurricane Katrina    |
|        |                              |     disaster.                |
+--------+------------------------------+------------------------------+
| Tr     | NARA has developed a         | -   We have expanded NARA's  |
| aining | national training program in |     web site to include      |
| and    | Federal records management.  |     materials that agencies  |
| C      | The program broadens our     |     can use as the basis for |
| ertifi | venue for offering training  |     their own records        |
| cation | and offers a certificate of  |     manage­ment training      |
|        | completion in Federal        |     program.                 |
|        | records management to        |                              |
|        | recognize participants'      | -   We hired a training      |
|        | achievements in              |     officer to ensure that   |
|        | understanding core records   |     NARA offices nationwide  |
|        | management knowledge areas.  |     follow a uni­form         |
|        |                              |     approach to records      |
|        |                              |     management training and  |
|        |                              |     to also ensure that our  |
|        |                              |     prog­rams include the     |
|        |                              |     most current elec­tronic  |
|        |                              |     records management tools |
|        |                              |     and techniques.          |
|        |                              |                              |
|        |                              | -   We are partnering with   |
|        |                              |     agencies such as OPM to  |
|        |                              |     use tools made available |
|        |                              |     through the e-Government |
|        |                              |     initiatives to leverage  |
|        |                              |     our resources in online  |
|        |                              |     course offerings to      |
|        |                              |     Federal agencies.        |
|        |                              |                              |
|        |                              | -   We continue to conduct   |
|        |                              |     numerous forums on       |
|        |                              |     electronic records and   |
|        |                              |     have developed training  |
|        |                              |     geared to agency IT,     |
|        |                              |     legal, and program       |
|        |                              |     office staffs.           |
|        |                              |                              |
|        |                              | -   We instituted a          |
|        |                              |     certification program    |
|        |                              |     whereby Federal agency   |
|        |                              |     customers attending key  |
|        |                              |     training in specific     |
|        |                              |     knowledge areas can      |
|        |                              |     elect to take an exam.   |
|        |                              |     Upon completing and      |
|        |                              |     passing all exams, the   |
|        |                              |     participant is awarded a |
|        |                              |     certificate of           |
|        |                              |     completion of Federal    |
|        |                              |     Records management       |
|        |                              |     training.                |
+--------+------------------------------+------------------------------+
| F      | The Electronic Records       | -   Our Federal Records      |
| ederal | Services team is             |     Center Program continues |
| R      | establishing scanning and    |     to progress with our     |
| ecords | electronic media storage     |     e-media storage pilots.  |
| Center | services for agency          |     We have procured and     |
| P      | customers.                   |     installed multimedia     |
| rogram |                              |     storage equipment at one |
| and    |                              |     of our regional          |
| Elec   |                              |     facilities as we         |
| tronic |                              |     con­tinue to work toward  |
| R      |                              |     maximizing media life    |
| ecords |                              |     expectancies.            |
| Se     |                              |                              |
| rvices |                              | -   We conducted production  |
|        |                              |     scan prototypes to       |
|        |                              |     identify requirements    |
|        |                              |     for upcoming pilots      |
|        |                              |     designed to convert      |
|        |                              |     large quantities of      |
|        |                              |     Federal Agency           |
|        |                              |     customers' records from  |
|        |                              |     paper format to          |
|        |                              |     electronic media.        |
|        |                              |                              |
|        |                              | -   Through our "scan on     |
|        |                              |     demand" pilot, we have   |
|        |                              |     provided customers a     |
|        |                              |     cost-effective service   |
|        |                              |     that delivers an         |
|        |                              |     electronic file to them  |
|        |                              |     on the same day as the   |
|        |                              |     request.                 |
+--------+------------------------------+------------------------------+
| Fl     | This proposed approach to    | -   In partnership with the  |
| exible | scheduling, being piloted    |     National Oceanic and     |
| Sche   | among five agencies, allows  |     Atmospheric              |
| duling | agencies to schedule         |     Administration (NOAA) to |
|        | temporary records at any     |     pilot flexible           |
|        | level of aggre­gation that    |     scheduling, we approved  |
|        | meets their business needs.  |     a schedule that supports |
|        |                              |     NOAA's extensive         |
|        |                              |     scientific and business  |
|        |                              |     interest in retaining    |
|        |                              |     data and making it       |
|        |                              |     available to a variety   |
|        |                              |     of customers on a        |
|        |                              |     long-term basis. This    |
|        |                              |     flexible schedule allows |
|        |                              |     NOAA to retain more than |
|        |                              |     150 years of information |
|        |                              |     on hand to serve its     |
|        |                              |     customers.               |
+--------+------------------------------+------------------------------+
|        |                              | -   We approved NASA's       |
|        |                              |     flexible schedule, which |
|        |                              |     consolidates more than   |
|        |                              |     180 previ­ously scheduled |
|        |                              |     and unscheduled records  |
|        |                              |     into 12 media neutral    |
|        |                              |     buckets that provide for |
|        |                              |     the disposition of       |
|        |                              |     multiple records         |
|        |                              |     asso­ci­ated with NASA\'s  |
|        |                              |     development and          |
|        |                              |     admin­istration of        |
|        |                              |     mission-related pro­grams |
|        |                              |     and projects. Program    |
|        |                              |     and project staffs have  |
|        |                              |     offered positive         |
|        |                              |     feedback on the new      |
|        |                              |     approach and the user    |
|        |                              |     friendliness and clarity |
|        |                              |     of the schedule.         |
|        |                              |     Official sched­ule        |
|        |                              |     implemen­tation will      |
|        |                              |     begin in FY 2006.        |
+--------+------------------------------+------------------------------+
| G      | The GRS efforts are designed | -   We issued a              |
| eneral | to identify and develop      |     comprehensive GRS for    |
| R      | additional GRSs for records  |     records belonging to     |
| ecords | that are common across       |     Temporary Commissions,   |
| Sch    | Federal agencies.            |     Boards, Councils, and    |
| edules |                              |     Committees. We also      |
| (GRS)  |                              |     issued a GRS for Chief   |
|        |                              |     Information Officers.    |
|        |                              |                              |
|        |                              | -   We vetted draft GRS's    |
|        |                              |     for records relating to  |
|        |                              |     Aircraft Operations and  |
|        |                              |     Maintenance and the FAIR |
|        |                              |     Act (OMB A-76).          |
|        |                              |                              |
|        |                              | ```{=html}                   |
|        |                              | <!-- -->                     |
|        |                              | ```                          |
|        |                              | -   We continued research    |
|        |                              |     and development of       |
|        |                              |     potential GRS series for |
|        |                              |     Chief Financial          |
|        |                              |     Officers, Employee       |
|        |                              |     Assistance Programs,     |
|        |                              |     Flexiplace, and Public   |
|        |                              |     Key Infrastructure (PKI) |
|        |                              |     records.                 |
+--------+------------------------------+------------------------------+
| Gu     | We are continuing efforts at | -   We revised the           |
| idance | NARA to align our guidance   |     regulatory framework for |
| and    | and regulations with changes |     Federal records          |
| Regul  | resulting from the redesign  |     management and began     |
| ations | of Federal records           |     rewriting the            |
|        | management.                  |     regulations in 36 CFR    |
|        |                              |     XII, subchapter B. The   |
|        |                              |     revision reorganizes the |
|        |                              |     existing regulations and |
|        |                              |     will incorporate new     |
|        |                              |     standards resulting from |
|        |                              |     changes in our           |
|        |                              |     recordkeeping            |
|        |                              |     environment and the      |
|        |                              |     strategies and           |
|        |                              |     initiatives NARA has     |
|        |                              |     undertaken in our        |
|        |                              |     redesign of Federal      |
|        |                              |     records management.      |
+--------+------------------------------+------------------------------+
| Inspe  | Inspections are reviews of   | -   We developed and issued  |
| ctions | agency record­keeping         |     Standard Operating       |
| and    | practices that focus on      |     Procedures to our        |
| S      | serious management problems. |     National Records         |
| tudies | Studies are reviews of       |     Management Program staff |
|        | records management practices |     for conducting studies   |
|        | in the Federal government.   |     and inspections.         |
|        |                              |                              |
|        |                              | -   We documented            |
|        |                              |     recommendations to       |
|        |                              |     Headquarters Air Force   |
|        |                              |     (HAF) on HAF             |
|        |                              |     recordkeeping practices. |
|        |                              |     HAF implemen­ted both     |
|        |                              |     interim and long-range   |
|        |                              |     solutions in response to |
|        |                              |     the recommendations.     |
+--------+------------------------------+------------------------------+
| Re     | The resource allocation      | -   We used the results of   |
| source | methodology provides a way   |     NARA\'s FY 2004          |
| Allo   | for NARA to best use its     |     Government-wide resource |
| cation | scarce resources to provide  |     allocation project to    |
| (Fo    | assistance to agencies with  |     help identify lines of   |
| cusing | records that are at high     |     business, subfunctions,  |
| Reso   | risk of inappropriate        |     and agencies for a major |
| urces) | disposition, records with    |     e-systems scheduling and |
|        | high permanent value, and    |     appraisal project for FY |
|        | records that are rated high  |     2005.                    |
|        | to protect rights of         |                              |
|        | citizens and account­ability  |                              |
|        | of the Federal Government.   |                              |
|        | The benefit of the resource  |                              |
|        | allocation methodology is    |                              |
|        | that NARA is able to         |                              |
|        | concentrate its RM           |                              |
|        | assistance and other         |                              |
|        | resources in high-priority,  |                              |
|        | high-visibility Federal      |                              |
|        | programs or subfunctions     |                              |
|        | that are of concern to       |                              |
|        | NARA\'s public customers.    |                              |
+--------+------------------------------+------------------------------+
| Ta     | We have established          | -   We continued to support  |
| rgeted | partnerships with other      |     the Interagency Wildland |
| Assi   | agencies to solve specific   |     Fire Records Project.    |
| stance | records management problems. |     Through this partnership |
|        |                              |     of five agencies, we     |
|        |                              |     jointly developed        |
|        |                              |     records management tools |
|        |                              |     to improve the way fires |
|        |                              |     are man­aged and to       |
|        |                              |     address the statutory    |
|        |                              |     require­ments of the      |
|        |                              |     National Environ­mental   |
|        |                              |     Policy Act and the       |
|        |                              |     National Fire Policy     |
|        |                              |     Act. We approved records |
|        |                              |     schedules covering       |
|        |                              |     electronic and paper     |
|        |                              |     records and also         |
|        |                              |     developed a legacy       |
|        |                              |     records preser­vation     |
|        |                              |     strategy.                |
+--------+------------------------------+------------------------------+
| Rep    | We will report to Congress   | -   We conducted a benchmark |
| orting | and OMB regarding problems   |     study with Government    |
|        | and recommended practices    |     agencies, university     |
|        | discovered as part of        |     research groups, and     |
|        | targeted assistance projects |     private service          |
|        | or inspections and studies   |     providers on how         |
|        | that we conduct.             |     business process         |
|        |                              |     analysis (BPA) and IT    |
|        |                              |     systems develop­ment can  |
|        |                              |     be used to support       |
|        |                              |     electronic               |
|        |                              |     recordkeeping. In FY     |
|        |                              |     2006 we will train our   |
|        |                              |     staff and other Federal  |
|        |                              |     records mana­gers on      |
|        |                              |     using BPA to support     |
|        |                              |     electronic               |
|        |                              |     recordkeeping.           |
+--------+------------------------------+------------------------------+

# Federal Records Management Evaluations {#federal-records-management-evaluations .AR-2004-Head-1}

Under 44 U.S.C. 2904(c)(8), the Archivist of the United States is
required to report to Congress and OMB annually on the results of
records management activities. NARA fulfills this requirement through
the Performance and Accountability Report. Through this report, we also
highlight the progress of individual agencies in managing and preserving
the documentation necessary to protect the legal and financial rights of
the Government and citizens.

In FY 2005, we began to use our Resource Allocation methodology and the
OMB Busi­ness Reference Model (BRM) to target our assistance to Federal
agencies. In September 2004 we completed an analysis of business
processes, subfunctions, and agency activities across the Government,
based on the OMB BRM, to identify those that are the most significant to
protect legal rights, document government accountability, and preserve
records that document the national experience. Using these criteria, we
identified 13 business lines and 23 business subfunctions where we
perceived the records to be at highest risk.

We used this analysis to target our records management assistance to
help agencies in these subfunctions schedule their critical electronic
records systems. We targeted our efforts to 245 specific electronic
systems and, with agency support, we developed 80 schedules to cover
these systems. In FY 2006 we will work with agencies to increase the
number of critical electronic records schedules by 10 percent.

In addition, we are reporting on nine Federal programs that have shown
signifi­cant progress in preserving and assuring timely maximum access to
the American people of our governmental records. NARA partnered with the
agencies in these activities, often through targeted assistance.

## Office of the Secretary of Defense {#office-of-the-secretary-of-defense .AR-2004-Head-2}

The Directives and Records Division of the Executive Services
Directorate of the Depart­ment of Defense Washington Headquarters
Services recognized the critical need to preserve and protect the
records of the Coalitional Provisional Authority in Iraq. The Division
aggressively pursued the task, going up the chain of command to get the
required authority and resources. Subsequently, with two separate
deployments to Baghdad, Iraq, of 12 people over 56 days, the Directives
and Records Division planned, organized, and conducted the image capture
of 760,424 pages, the collection of 1.5 terabytes of electronic records,
and the shipment of over 300,000 pages to the Washing­ton National
Records Center.

## Department of the Treasury, Office of the CIO  {#department-of-the-treasury-office-of-the-cio .AR-2004-Head-2}

The Department of the Treasury is a large agency, and the Office of the
Chief Information Officer promotes records management through
senior-level support, the issuance of a new agency newsletter, and other
public relations tools, including a successful annual Records and
Information Management Month program, which includes training, managers'
briefings, and exhibits.

## Internal Revenue Service  {#internal-revenue-service .AR-2004-Head-2}

The IRS records management program has coordinated the successful
development of online and web-based training for over 1,000 Information
Resource Coordinators. The IRS shared its web-based training with other
agencies where it is being adapted to their programs. The training was
influential in the development of NARA's own web-based records
management training. The IRS also developed web-based records and
infor­mation management procedural and process guides that are easily
available and used by all employees.

## Department of Agriculture, Forest Service Department of the Interior, Bureau of Indian Affairs Department of the Interior, Bureau of Land Management Department of the Interior, U.S. Fish and Wildlife Service Department of the Interior, National Park Service  {#department-of-agriculture-forest-service-department-of-the-interior-bureau-of-indian-affairs-department-of-the-interior-bureau-of-land-management-department-of-the-interior-u.s.-fish-and-wildlife-service-department-of-the-interior-national-park-service .AR-2004-Head-2}

The Interagency Wildland Fire Records Project was a partnership of five
agencies that developed records management tools to improve the way
fires are managed and to address the statutory requirements of the
National Environmental Policy Act and the National Fire Policy Act.
These agencies developed new standards and tools to control and preserve
both paper and electronic wildland fire records both during a fire
incident and afterwards. These standards and tools will allow the
agencies to support fire opera­tions more effectively and protect rights
and interests of stakeholders. Just as important, they will allow fire
agencies to permanently preserve records supporting scientific and
historical research, implementation of National Fire Policy, and
planning under the National Environmental Policy Act.

This partnership reflects the Office of Management and Budget's Business
Reference Model "lines of business" by scheduling records across
multiple agencies.

## Federal Bureau of Investigation  {#federal-bureau-of-investigation .AR-2004-Head-2}

The Records Automation Section of the Records Management Division
developed a program to review systems for certification as electronic
recordkeeping systems. The program requires close cooperation with the
Office of the CIO to identify systems and develop recordkeeping
requirements for the enterprise architecture, as well as with the
Security Division for computer security certification and accreditation.
The electronic recordkeeping system certification program is up and
operating at the FBI. The Electronic Recordkeeping Certification Manual
describes the process in detail and provides all the tools necessary to
complete certification. It does this in a comprehensive way that can be
easily adapted and adopted by other agencies.

# Performance Assessment Rating Tool Summary {#performance-assessment-rating-tool-summary .AR-2004-Head-1}

## Records Services Program {#records-services-program .AR-2004-Head-2}

As part of the FY 2005 budget, OMB evaluated NARA's records services
program using the Program Assessment Rating Tool (PART). PART was
established to provide a process for rating the performance of programs
across the Federal Government. The chart below sum­marizes OMB's
findings, NARA's responses, and the current status of our progress in
implementing the recommendations as well as FY 2005 results for PART
measures.

  --------------------- ------------------- ------ ------------- -------------- -----------------------
  OMB Recommendation    NARA's Response to                       Status of      
                        OMB's Finding                            Progress       

  1\. Develop targets   NARA developed a                         NARA included  
  for newly created     standard                                 13 new cost    
  unit-cost measures.   methodology for                          metrics in the 
                        collecting unit                          FY 2004        
                        cost measures in FY                      perfor­mance    
                        2004. Data was                           plan and       
                        collected for the                        developed a    
                        first time for many                      methodology    
                        new cost measures                        for collecting 
                        in FY 2004 and FY                        the data for   
                        2005. Targets will                       the first time 
                        be set where                             in FY 2004.    
                        appropriate                              These data are 
                        after-measurement                        reported in    
                        methodologies are                        the            
                        established and                          Performance    
                        tested.                                  section of     
                                                                 this report.   
                                                                 We are         
                                                                 monitoring     
                                                                 trends to      
                                                                 determine      
                                                                 where targets  
                                                                 are            
                                                                 appropriate.   

  2\. Produce audited                                            Completed.     
  financial statements.                                                         

  Selected PART                             Year   Target                       Actual
  Measures                                                                      

  Annual cost of                            2005   No annual                    \$6.48
  archival storage                                 target                       
  space per cubic feet                                                          
  of traditional                                                                
  holdings                                                                      

  By 2005, 95 percent                       2005   95                           88
  of requests for                                                               
  military service                                                              
  separation records                                                            
  are answered within                                                           
  10 working days                                                               

  By 2009, 100 percent                      2005   No annual                    53% traditional
  of NARA's archival                               target                       holdings,\
  holdings are in                                                               100% electronic
  appropriate space                                                             holdings,\
                                                                                42% artifact holdings

  By 2009, 100 percent                      2005   No annual                    9
  of NARA records                                  target                       
  centers comply with                                                           
  the October 2009                                                              
  regulatory storage                                                            
  standards                                                                     
  --------------------- ------------------- ------ ------------- -------------- -----------------------

## Electronic Records Services Program {#electronic-records-services-program .AR-2004-Head-2}

As part of the FY 2006 budget, OMB evaluated NARA's electronic records
services program using the PART. The chart below sum­marizes OMB's
findings, NARA's responses, and the current status of our progress in
implementing the recommendations, as well as FY 2005 results for PART
measures.

+----------------------+-------+--------+---------+-------------------+
| # OMB Recommendati   | # NA  |        |         | # Statu           |
| on {#omb-recommendat | RA's  |        |         | s of Progress {#s |
| ion .AR-2004-Head-1} | Respo |        |         | tatus-of-progress |
|                      | nse t |        |         |  .AR-2004-Head-1} |
|                      | o OMB |        |         |                   |
|                      | 's Fi |        |         |                   |
|                      | nding |        |         |                   |
|                      |  {#na |        |         |                   |
|                      | ras-r |        |         |                   |
|                      | espon |        |         |                   |
|                      | se-to |        |         |                   |
|                      | -ombs |        |         |                   |
|                      | -find |        |         |                   |
|                      | ing . |        |         |                   |
|                      | AR-20 |        |         |                   |
|                      | 04-He |        |         |                   |
|                      | ad-1} |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| # 1. Work on re      | # We  |        |         | #                 |
| solving the basis fo |  plan |        |         | This material wea |
| r its material weakn |  to c |        |         | kness was resolve |
| ess in IT security.  | omple |        |         | d during FY 2005. |
| {#work-on-resolving- | te al |        |         |  (See enclosure B |
| the-basis-for-its-ma | l act |        |         |  in Appen­dix B, F |
| terial-weakness-in-i | ions  |        |         | MFIA Report, for  |
| t-security. .AR-2004 | to re |        |         | details.) {#this- |
| -Head-1 .unnumbered} | solve |        |         | material-weakness |
|                      |  this |        |         | -was-resolved-dur |
|                      |  mate |        |         | ing-fy-2005.-see- |
|                      | rial  |        |         | enclosure-b-in-ap |
|                      | weakn |        |         | pendix-b-fmfia-re |
|                      | ess d |        |         | port-for-details. |
|                      | uring |        |         |  .AR-2004-Head-1} |
|                      |  FY 2 |        |         |                   |
|                      | 005.  |        |         |                   |
|                      | {#we- |        |         |                   |
|                      | plan- |        |         |                   |
|                      | to-co |        |         |                   |
|                      | mplet |        |         |                   |
|                      | e-all |        |         |                   |
|                      | -acti |        |         |                   |
|                      | ons-t |        |         |                   |
|                      | o-res |        |         |                   |
|                      | olve- |        |         |                   |
|                      | this- |        |         |                   |
|                      | mater |        |         |                   |
|                      | ial-w |        |         |                   |
|                      | eakne |        |         |                   |
|                      | ss-du |        |         |                   |
|                      | ring- |        |         |                   |
|                      | fy-20 |        |         |                   |
|                      | 05. . |        |         |                   |
|                      | AR-20 |        |         |                   |
|                      | 04-He |        |         |                   |
|                      | ad-1} |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| # 2. Implem          | # W   |        |         | # EV              |
| ent and utilize earn | e pla |        |         | M is used in day- |
| ed value management  | n to  |        |         | to-day management |
| for acquisi­tion of t | fully |        |         |  of the ERA progr |
| he Electronic Record |  impl |        |         | am.The developmen |
| s Archives. {#implem | ement |        |         | t contractor also |
| ent-and-utilize-earn |  earn |        |         |  is held to EVM s |
| ed-value-management- | ed va |        |         | tandards and repo |
| for-acquisition-of-t | lue m |        |         | rts to NARA on a  |
| he-electronic-record | anage |        |         | monthly basis.  { |
| s-archives. .AR-2004 | ment  |        |         | #evm-is-used-in-d |
| -Head-1 .unnumbered} | for E |        |         | ay-to-day-managem |
|                      | RA in |        |         | ent-of-the-era-pr |
|                      |  FY 2 |        |         | ogram.the-develop |
|                      | 004.  |        |         | ment-contractor-a |
|                      |  {#we |        |         | lso-is-held-to-ev |
|                      | -plan |        |         | m-standards-and-r |
|                      | -to-f |        |         | eports-to-nara-on |
|                      | ully- |        |         | -a-monthly-basis. |
|                      | imple |        |         |  .AR-2004-Head-1} |
|                      | ment- |        |         |                   |
|                      | earne |        |         |                   |
|                      | d-val |        |         |                   |
|                      | ue-ma |        |         |                   |
|                      | nagem |        |         |                   |
|                      | ent-f |        |         |                   |
|                      | or-er |        |         |                   |
|                      | a-in- |        |         |                   |
|                      | fy-20 |        |         |                   |
|                      | 04. . |        |         |                   |
|                      | AR-20 |        |         |                   |
|                      | 04-He |        |         |                   |
|                      | ad-1} |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| # 3                  | # W   |        |         | # See progress ma |
| . Refine its records | e pla |        |         | de in FY 2005 on  |
|  manage­ment policies | n to  |        |         | page [96]{.mark}  |
|  and strategies and  | conti |        |         | of this report. { |
| engage with Federal  | nue i |        |         | #see-progress-mad |
| agencies to continue | mplem |        |         | e-in-fy-2005-on-p |
|  methods of improvin | entin |        |         | age-96-of-this-re |
| g records management | g the |        |         | port. .AR-2004-He |
|  across the Federal  |  stra |        |         | ad-1 .unnumbered} |
| Government. {#refine | tegie |        |         |                   |
| -its-records-managem | s ide |        |         |                   |
| ent-policies-and-str | ntifi |        |         |                   |
| ategies-and-engage-w | ed in |        |         |                   |
| ith-federal-agencies |  Stra |        |         |                   |
| -to-continue-methods | tegic |        |         |                   |
| -of-improving-record |  Dire |        |         |                   |
| s-management-across- | ction |        |         |                   |
| the-federal-governme | s for |        |         |                   |
| nt. .AR-2004-Head-1} |  Fede |        |         |                   |
|                      | ral R |        |         |                   |
|                      | ecord |        |         |                   |
|                      | s Man |        |         |                   |
|                      | ageme |        |         |                   |
|                      | nt to |        |         |                   |
|                      |  guid |        |         |                   |
|                      | e, ad |        |         |                   |
|                      | vocat |        |         |                   |
|                      | e, an |        |         |                   |
|                      | d lea |        |         |                   |
|                      | d the |        |         |                   |
|                      |  impr |        |         |                   |
|                      | oveme |        |         |                   |
|                      | nt of |        |         |                   |
|                      |  reco |        |         |                   |
|                      | rds m |        |         |                   |
|                      | anage |        |         |                   |
|                      | ment  |        |         |                   |
|                      | metho |        |         |                   |
|                      | ds ac |        |         |                   |
|                      | ross  |        |         |                   |
|                      | the F |        |         |                   |
|                      | edera |        |         |                   |
|                      | l Gov |        |         |                   |
|                      | ernme |        |         |                   |
|                      | nt. { |        |         |                   |
|                      | #we-p |        |         |                   |
|                      | lan-t |        |         |                   |
|                      | o-con |        |         |                   |
|                      | tinue |        |         |                   |
|                      | -impl |        |         |                   |
|                      | ement |        |         |                   |
|                      | ing-t |        |         |                   |
|                      | he-st |        |         |                   |
|                      | rateg |        |         |                   |
|                      | ies-i |        |         |                   |
|                      | denti |        |         |                   |
|                      | fied- |        |         |                   |
|                      | in-st |        |         |                   |
|                      | rateg |        |         |                   |
|                      | ic-di |        |         |                   |
|                      | recti |        |         |                   |
|                      | ons-f |        |         |                   |
|                      | or-fe |        |         |                   |
|                      | deral |        |         |                   |
|                      | -reco |        |         |                   |
|                      | rds-m |        |         |                   |
|                      | anage |        |         |                   |
|                      | ment- |        |         |                   |
|                      | to-gu |        |         |                   |
|                      | ide-a |        |         |                   |
|                      | dvoca |        |         |                   |
|                      | te-an |        |         |                   |
|                      | d-lea |        |         |                   |
|                      | d-the |        |         |                   |
|                      | -impr |        |         |                   |
|                      | oveme |        |         |                   |
|                      | nt-of |        |         |                   |
|                      | -reco |        |         |                   |
|                      | rds-m |        |         |                   |
|                      | anage |        |         |                   |
|                      | ment- |        |         |                   |
|                      | metho |        |         |                   |
|                      | ds-ac |        |         |                   |
|                      | ross- |        |         |                   |
|                      | the-f |        |         |                   |
|                      | edera |        |         |                   |
|                      | l-gov |        |         |                   |
|                      | ernme |        |         |                   |
|                      | nt. . |        |         |                   |
|                      | AR-20 |        |         |                   |
|                      | 04-He |        |         |                   |
|                      | ad-1} |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| # Sele               |       | # Year | # Targ  | # Actual {#actual |
| cted PART Measures { |       |  {#yea | et {#ta |  .AR-2004-Head-1} |
| #selected-part-measu |       | r .AR- | rget .A |                   |
| res .AR-2004-Head-1} |       | 2004-H | R-2004- |                   |
|                      |       | ead-1} | Head-1} |                   |
+----------------------+-------+--------+---------+-------------------+
| Percentage of        |       | 2005   | 20%     | TBD               |
| archival electronic  |       |        |         |                   |
| records accessioned  |       |        |         |                   |
| by NARA at the       |       |        |         |                   |
| scheduled time.      |       |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| The per megabyte     |       | 2005   | Target  | N/A               |
| cost of managing     |       |        | pending |                   |
| archival electronic  |       |        | deve    |                   |
| records through the  |       |        | lopment |                   |
| Electronic Records   |       |        | of ERA  |                   |
| Archives will        |       |        |         |                   |
| decrease each year   |       |        |         |                   |
+----------------------+-------+--------+---------+-------------------+
| Milestone measures   |       | 2005   | Annual  | Design reviews    |
| for development of   |       |        | m       | successfully      |
| the Electronic       |       |        | easures | completed and     |
| Records Archives in  |       |        |         | contractor        |
| 2005 include         |       |        |         | (Lockheed Martin) |
| completing design    |       |        |         | selected to       |
| reviews and          |       |        |         | develop ERA.      |
| selecting a final    |       |        |         |                   |
| contractor for the   |       |        |         |                   |
| system.              |       |        |         |                   |
+----------------------+-------+--------+---------+-------------------+

# Definitions {#definitions .AR-2004-Head-1}

The following provides definitions for many of the terms and concepts
used in this Performance Section.

  ------------------ ----------------------------------------------------
  **Goal 1**         **Records Management**

  Targeted           Established with an underlying written agreement
  assistance         between NARA and a Federal agency to identify and
  partnership        agree upon a specific project or projects to solve
                     the agency\'s records management problems. The
                     agreement must take the form of a project plan,
                     memorandum of understanding (MOU), or similar
                     written documentation that performs the same
                     function as a project plan. The agreement has
                     mutually agreed-upon criteria for successful
                     completion of the targeted assistance project or
                     projects. An agreement can include several projects,
                     each with its own success criteria.

  Asset and risk     Determining the value of information as a business
  management         asset in terms of its primary and secondary uses in
                     the business process; identifying potential risks to
                     the availability and usefulness of the information;
                     estimating the likelihood of such risks occurring;
                     evaluating the consequences if the risk occurs; and
                     managing the information based on that analysis.

  Records management An application or system software that incorporates
  service components interfaces for interacting with other programs and
  (RMSC)             that is made available to all Federal agencies for
                     use in their enterprise architecture. The RMSC will
                     provide the ability to embed records management
                     functionality in the IT structure of the enterprise.

  Records schedule   A document, having legally binding authority when
                     approved by NARA, that provides mandatory
                     instructions (i.e., disposition authority) for what
                     to do with records no longer needed for current
                     business.

  Schedule item      Records subject to a specific disposition authority
                     that appear on a records schedule.
  ------------------ ----------------------------------------------------

  ------------------ ----------------------------------------------------
  **Goal 2**         **Electronic Records**

  Accession          Archival materials whose legal custody is
                     transferred to NARA.

  File units         Data files of electronic records, most often in the
                     form of a database.

  Logical data       A set of data processed as a unit by a computer
  record             system or application independently of its physical
                     environment. Examples: a word processing document; a
                     spreadsheet; an e-mail message; each row in each
                     table of a relational database or each row in an
                     independent logical file database.

  Preserved          Electronic file preservation requires that (1) the
                     physical file containing one or more logical data
                     records has been identified and its location,
                     format, and internal structure(s) specified; (2)
                     logical data records within the file are physically
                     readable and retrievable; (3) the media, the
                     physical files written on them, and the logical data
                     records they contain are managed to ensure
                     continuing accessibility; and (4) an audit trail is
                     maintained to document record integrity.

  Online visits      One instance in which a person uses our web site is
                     counted as one "visit." It is a count of the number
                     of times our web site is accessed and is similar to
                     counting the number of people who walk through our
                     front door. In contrast, it does not count "hits,"
                     which refer to the number of files used to show the
                     user a web page. A session in which a user accessed
                     a web page comprising 35 files would count as one
                     visit and 35 hits. Counting visits is a more
                     accurate way of showing use of our web site.

  Megabyte           A measure of computer data storage capacity. A
                     megabyte is 2 to the 20th power, or approximately a
                     million bytes.

  Gigabyte           A measure of computer data storage capacity. A
                     gigabyte is 2 to the 30th power, or approximately a
                     billion bytes (that is, thousand megabytes).

  Terabyte           A measure of computer data storage capacity. A
                     terabyte is 2 to the 40th power, or approximately a
                     trillion bytes (that is, a thousand gigabytes).
  ------------------ ----------------------------------------------------

  ------------------ ----------------------------------------------------
  **Goal 3**         **Access**

  ARC                Archival Research Catalog, NARA-wide online catalog.

  User hits          The number of files used to show the user a web
                     page. This is not the preferred method for measuring
                     web usage. Counting online visits is more accurate
                     and became available for ARC in 2004.

  Traditional        Books, papers, maps, photographs, motion pictures,
  holdings           sound and video recordings, and other documentary
                     material that are not stored on electronic media.

  Artifact holdings  Three-dimensional objects made, modified, or used by
                     humans.

  Electronic         Records on electronic storage media.
  holdings           

  Inventory          A listing of the volume, scope, and complexity of an
                     organization's records.

  Written requests   Requests for services that arrive in the form of
                     letters, faxes, e-mail messages, and telephone calls
                     that have been transcribed. Excludes Freedom of
                     Information Act requests, personnel information
                     requests at the National Personnel Records Center,
                     Federal agency requests for information, fulfillment
                     of requests for copies of records, requests for
                     museum shop products, subpoenas, and special access
                     requests.

  Federal agency     A request by a Federal agency to a records center
  reference request  for the retrieval of agency records. Excludes
                     personnel information requests at the National
                     Personnel Records Center.

  Classified         A review by ISOO of an Executive branch agency to
  document review    identify incon­sis­tencies in the application of
                     classification and marking requirements of Executive
                     Order 12958. The results of the review along with
                     any appropriate recommendations for improvement are
                     reported to the agency head or agency senior
                     official for the program.

  Program review     An evaluation of selected aspects of an executive
                     branch agency's security classification program to
                     determine whether an agency has met the requirements
                     of Executive Order 12958. The review may include
                     security education and training, self-inspections,
                     declassification, safeguarding, and classification
                     activity. The results of a review, along with any
                     appropriate recommendations for improvement, are
                     reported to the agency senior official or agency
                     head.

  Equity-holding     A Federal agency that may have classified
  agency             information in a document, whether or not it created
                     the document. Without declassification guidelines,
                     only the equity-holding agency can declassify
                     information in the document.
  ------------------ ----------------------------------------------------

  ------------------ ----------------------------------------------------
  **Goal 4**         **Space and Preservation**

  Appropriate space  Storage area that meets physical and environmental
                     standards for the type of materials stored there.

  At-risk            Records that have a media base near or at the point
                     of deterioration, to such an extent that the image
                     or information in the physical media of the record
                     is being or soon will be lost, or records that are
                     stored on media accessible only through obsolete or
                     near-obsolete technology.
  ------------------ ----------------------------------------------------

  ------------------ ----------------------------------------------------
  **Goal 5**         **Infrastructure**

  Staff development  An individualized plan to enhance employees'
  plan               knowledge, skills, and abilities and improve
                     performance in their current jobs or of duties
                     outside their current jobs, in response to
                     organizational needs and human resource plans.

  Applicant          Anyone who has applied for a specific position.

  Underrepresented   Groups of people tracked by the U.S. Equal
  groups             Employment Opportunity Commission: Minority groups
                     (Black, Latino-Hispanic, Asian/Pacific Islander, and
                     American Indian/Alaskan Native); Women; People with
                     Disabilities.

  NARANET            A collection of local area networks installed in 36
                     NARA facilities that are connected to a wide area
                     network at Archives II, using frame relay
                     telecommunications, and then to the Internet.
                     NARANET includes personal computers with a
                     standardized suite of software. NARANET was designed
                     to be modular and scalable using standard hardware
                     and software components.
  ------------------ ----------------------------------------------------

[P**art** 3\
]{.smallcaps}FINANCIAL SECTION

# A Message from the Chief Financial Officer {#a-message-from-the-chief-financial-officer .AR-2004-Head-1-Char-Char}

![](media/image20.jpeg){width="1.34375in"
height="1.7291666666666667in"}I am pleased to present the National
Archives and Records Administration's (NARA) financial statements for
fiscal year 2005.

This is the second year that NARA prepared and submitted audited
financial statements in accordance with the Chief Financial Officer's
Act of 1990, as mandated by the Accounta­bility of Tax Dollars Act of
2002. Our independent auditor has rendered a qualified opinion on our FY
2005 financial statements, attesting to the fact that our financial
statements are presented fairly with the exception of such adjustments,
if any, for obligations and outlays related to non-Federal investments.
NARA continued to make significant improvements as we further refined
the processes of gathering required data for the financial statements
and addressed internal controls weaknesses identified in last year's
audit.

Deficiencies in the current provider's financial system remained a major
obstacle to obtaining timely, accurate financial information as NARA
continued to expend significant effort on cleansing accounting records
in order to prepare auditable financial statements and other external
reports to the Office of Management and Budget (OMB).

To address these long-standing issues, in FY 2004 NARA management
contracted with a new financial system provider with implementation
planned for the inception of FY 2006. While we anticipate that this
change will result in significant improvements to NARA's accounting
processes, financial reporting, and internal controls, the conversion
process itself was an additional formidable challenge during FY 2005.

That notwithstanding, most of the audit material weaknesses have been
addressed dur­ing FY 2005 or are well on the way to completion. Some that
remain, such as compli­ance with United States Standard General Ledger
(USSGL), are contingent on our pend­ing conversion to the new financial
system in FY 2006. Yet others, such as manage­ment and accounting for
property, plant, and equipment and a single integrated financial
manage­ment system, are on a longer time frame requiring some culture
change as appropriate management processes are developed, implemented
and enforced across NARA organi­zation.

We are very proud of all NARA staff for meeting the accelerated
reporting dates man­dated by OMB, while developing new business
processes, overcoming the chal­lenges of the current system's
deficiencies, implementing the new financial system and fully addres­sing
33 out of 39 recommendations from last year's audit.

While NARA has made significant progress in FY 2005, challenges remain
as NARA works to further improve financial management processes and
internal controls, and address longer term audit weaknesses, so it can
ultimately achieve a clean bill of financial health, an unqualified
audit opinion. While this will be a longer-term process, if the
experience of the agencies initially subject to the Chief Financial
Officer's Act can be used as a measure, NARA has made good strides to
improved financial management.

![](media/image21.png){width="2.75in" height="0.5236111111111111in"}

Adrienne C. Thomas\
Assistant Archivist for Administration and\
Chief Financial Officer

# Auditor's Reports {#auditors-reports .AR-2004-Head-1-Char-Char}

## Inspector General's Summary {#inspector-generals-summary .AR-2004-Head-2-Char-Char}

##   {#section-26 .AR-2004-Head-2-Char-Char .unnumbered}

## Independent Auditor's Report {#independent-auditors-report .AR-2004-Head-2-Char-Char}

##  ![](media/image22.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-27 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-28 .AR-2004-Head-2-Char-Char}

##  ![](media/image23.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-29 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-30 .AR-2004-Head-2-Char-Char}

##  ![](media/image24.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-31 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-32 .AR-2004-Head-2-Char-Char}

##  ![](media/image25.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-33 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-34 .AR-2004-Head-2-Char-Char}

##  ![](media/image26.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-35 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-36 .AR-2004-Head-2-Char-Char}

##  ![](media/image27.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-37 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-38 .AR-2004-Head-2-Char-Char}

##  ![](media/image28.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-39 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-40 .AR-2004-Head-2-Char-Char}

##  ![](media/image29.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-41 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-42 .AR-2004-Head-2-Char-Char}

##  ![](media/image30.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-43 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-44 .AR-2004-Head-2-Char-Char}

##  ![](media/image31.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-45 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-46 .AR-2004-Head-2-Char-Char}

##  ![](media/image32.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-47 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-48 .AR-2004-Head-2-Char-Char}

##  ![](media/image33.jpeg){width="5.413888888888889in" height="7.006944444444445in"} {#section-49 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-50 .AR-2004-Head-2-Char-Char}

##  ![](media/image34.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-51 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-52 .AR-2004-Head-2-Char-Char}

##  ![](media/image35.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-53 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-54 .AR-2004-Head-2-Char-Char}

##  ![](media/image36.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-55 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-56 .AR-2004-Head-2-Char-Char}

##  ![](media/image37.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-57 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-58 .AR-2004-Head-2-Char-Char}

##  ![](media/image38.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-59 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-60 .AR-2004-Head-2-Char-Char}

##  ![](media/image39.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-61 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-62 .AR-2004-Head-2-Char-Char}

##  ![](media/image40.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-63 .AR-2004-Head-2-Char-Char .unnumbered}

##  {#section-64 .AR-2004-Head-2-Char-Char}

##  ![](media/image41.jpeg){width="5.422916666666667in" height="7.017361111111111in"} {#section-65 .AR-2004-Head-2-Char-Char .unnumbered}

## Management Response to Auditor's Report {#management-response-to-auditors-report .AR-2004-Head-2-Char-Char}

# ![](media/image42.wmf){width="0.8in" height="0.84251968503937in"}  {#section-66 .AR-2004-Head-1-Char-Char .unnumbered}

#  {#section-67 .AR-2004-Head-1-Char-Char}

# ![](media/image43.jpeg){width="1.4361111111111111in" height="0.3798611111111111in"} {#section-68 .AR-2004-Head-1-Char-Char}

#  {#section-69 .AR-2004-Head-1-Char-Char}

#  {#section-70 .AR-2004-Head-1-Char-Char .unnumbered}

# Financial Statements and Additional Information {#financial-statements-and-additional-information .AR-2004-Head-1-Char-Char}

## Limitations of the Financial Statements {#limitations-of-the-financial-statements .AR-2004-Head-2}

The principal statements have been prepared to report the financial
position and results of operations of NARA, pursuant to the requirements
of 31 U.S.C. 3515 (b). While the statements have been prepared from
NARA's books and records in accordance with generally accepted
accounting principles (GAAP) for Federal entities and the formats
prescribed by the Office of Management and Budget, the statements are
additional to the financial reports used to monitor and control
budgetary resources, which are prepared from the same books and records.
The statements should be read with the realization that they are for a
component of the U.S. Government, a sovereign entity.

NARA's FY 2005 financial statements were audited by Clifton Gunderson
LLP under contract to NARA's Office of the Inspector General.

## Principal Statements {#principal-statements .AR-2004-Head-2-Char-Char}

### Consolidated Balance Sheet {#consolidated-balance-sheet .Table-Head}

As of September 30, 2005, and September 30, 2004\
(in thousands)

+--------------------------------------------+------------+-----------+
|                                            | **2005**   | **R       |
|                                            |            | estated** |
|                                            |            |           |
|                                            |            | **2004**  |
+--------------------------------------------+------------+-----------+
| **Assets (Note 2)**                        |            |           |
+--------------------------------------------+------------+-----------+
| > Intragovernmental                        |            |           |
+--------------------------------------------+------------+-----------+
| > Fund balance with Treasury (note 3)      | \$ 167,231 | \$        |
|                                            |            | 185,207   |
+--------------------------------------------+------------+-----------+
| > Investments (notes 2, 4)                 | 14,740     | 31,205    |
+--------------------------------------------+------------+-----------+
| > Accounts receivable (note 5)             | 9,181      | 14,151    |
+--------------------------------------------+------------+-----------+
| > Other (note 8)                           | ---        | 40        |
+--------------------------------------------+------------+-----------+
| > Total intragovernmental                  | 191,152    | 230,603   |
+--------------------------------------------+------------+-----------+
|                                            |            |           |
+--------------------------------------------+------------+-----------+
| > Cash (note 3)                            | 48         | 36        |
+--------------------------------------------+------------+-----------+
| > Investments (note 4)                     | 11,869     | 4,785     |
+--------------------------------------------+------------+-----------+
| > Accounts receivable, net (note 5)        | 863        | 881       |
+--------------------------------------------+------------+-----------+
| > Inventory, net (note 6)                  | 1,104      | 995       |
+--------------------------------------------+------------+-----------+
| > General property, plant and equipment,   | 311,802    | 314,617   |
| > net (note 7)                             |            |           |
+--------------------------------------------+------------+-----------+
| > Other (note 8)                           | 1,029      | 1,016     |
+--------------------------------------------+------------+-----------+
| **Total assets**                           | \$ 517,867 | \$        |
|                                            |            | 552,933   |
+--------------------------------------------+------------+-----------+
|                                            |            |           |
+--------------------------------------------+------------+-----------+
| **Liabilities (Note 9)**                   |            |           |
+--------------------------------------------+------------+-----------+
| Intragovernmental                          |            |           |
+--------------------------------------------+------------+-----------+
| > Accounts payable                         | \$ 3,366   | \$ 3,407  |
+--------------------------------------------+------------+-----------+
| > Other (notes 9, 11, 12)                  | 3,454      | 21,294    |
+--------------------------------------------+------------+-----------+
| > Total intragovernmental                  | 6,820      | 24,701    |
+--------------------------------------------+------------+-----------+
|                                            |            |           |
+--------------------------------------------+------------+-----------+
| > Accounts payable                         | 20,112     | 24,426    |
+--------------------------------------------+------------+-----------+
| > Debt held by the public (notes 9, 10)    | 236,259    | 246,046   |
+--------------------------------------------+------------+-----------+
| > Other (notes 9, 11)                      | 29,506     | 26,900    |
+--------------------------------------------+------------+-----------+
| > Total liabilities                        | 292,697    | 322,073   |
+--------------------------------------------+------------+-----------+
|                                            |            |           |
+--------------------------------------------+------------+-----------+
|                                            |            |           |
+--------------------------------------------+------------+-----------+
| **Net Position**                           |            |           |
+--------------------------------------------+------------+-----------+
| > Unexpended appropriations                | 117,554    | 139,793   |
+--------------------------------------------+------------+-----------+
| > Cumulative results of operations         | 107,616    | 91,067    |
+--------------------------------------------+------------+-----------+
| > Total net position                       | 225,170    | 230,860   |
+--------------------------------------------+------------+-----------+
| **Total liabilities and net position**     | \$ 517,867 | \$        |
|                                            |            | 552,933   |
+--------------------------------------------+------------+-----------+

The accompanying notes are an integral part of these statements.

### Consolidated ***Statement of Net Cost*** {#consolidated-statement-of-net-cost .Table-Head}

For the years ended September 30, 2005, and 2004

(in thousands)

+---------------------------------------------+-----------+------------+
|                                             | **2005**  | **         |
|                                             |           | Restated** |
|                                             |           |            |
|                                             |           | **2004**   |
+---------------------------------------------+-----------+------------+
| **Program costs**                           |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Records and archives-related services**   |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs                                 | \$        | \$ 241,712 |
|                                             | 280,307   |            |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | \(647\)   | \(988\)    |
+---------------------------------------------+-----------+------------+
| **Total net records and archives-related    | 279,660   | 240,724    |
| services program costs**                    |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Trust and Gift Funds**                    |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs (excluding heritage asset       | 15,274    | 16,324     |
| renovation)                                 |           |            |
+---------------------------------------------+-----------+------------+
| Heritage asset renovation costs (note 15)   | 880       | 1,237      |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | (16,305)  | (14,232)   |
+---------------------------------------------+-----------+------------+
| **Total Net Trust and Gift Fund costs**     | \(151\)   | 3,329      |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Electronic records archives**             |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs                                 | 35,655    | 11,225     |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | ---       | ---        |
+---------------------------------------------+-----------+------------+
| **Total net Electronic Records Archives     | 35,655    | 11,225     |
| program costs**                             |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **National Historical Publications and      |           |            |
| Records Commission grants**                 |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs                                 | 7,308     | 5,925      |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | ---       | ---        |
+---------------------------------------------+-----------+------------+
| **Total net National Historical             | 7,308     | 5,925      |
| Publications and Records**                  |           |            |
|                                             |           |            |
| **Commission grants program costs**         |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Archives facilities and presidential      |           |            |
| libraries repairs and**                     |           |            |
|                                             |           |            |
| **Restoration**                             |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs                                 | 701       | 16         |
+---------------------------------------------+-----------+------------+
| Heritage asset renovation costs (Note 15)   | 10,390    | 13,488     |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | ---       | \(485\)    |
+---------------------------------------------+-----------+------------+
| **Total net archives facilities and         | 11,091    | 13,019     |
| Presidential libraries repairs**            |           |            |
|                                             |           |            |
| **and restoration program costs**           |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Revolving fund records center storage and |           |            |
| services**                                  |           |            |
+---------------------------------------------+-----------+------------+
| Gross costs                                 | 143,824   | 141,445    |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues                       | (132,023) | (129,239)  |
+---------------------------------------------+-----------+------------+
| **Total net Revolving Fund records center   | 11,801    | 12,206     |
| storage and services**                      |           |            |
|                                             |           |            |
| **program costs**                           |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| Costs not assigned to programs              | ---       | ---        |
+---------------------------------------------+-----------+------------+
| Less: Earned revenues not attributed to     | ---       | ---        |
| programs                                    |           |            |
+---------------------------------------------+-----------+------------+
|                                             |           |            |
+---------------------------------------------+-----------+------------+
| **Net cost of operations**                  | **\$      | **\$       |
|                                             | 345,364** | 286,428**  |
+---------------------------------------------+-----------+------------+

The accompanying notes are an integral part of these statements.

### Consolidated Statement of Changes in Net Position {#consolidated-statement-of-changes-in-net-position .Table-Head}

For the years ended September 30, 2005, and 2004\
(in thousands)

+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   | ** |    |    |   | ** |    |   |
|                             |   | 20 |    |    |   | Re |    |   |
|                             |   | 05 |    |    |   | st |    |   |
|                             |   | ** |    |    |   | at |    |   |
|                             |   |    |    |    |   | ed |    |   |
|                             |   |    |    |    |   | ** |    |   |
|                             |   |    |    |    |   |    |    |   |
|                             |   |    |    |    |   | ** |    |   |
|                             |   |    |    |    |   | 20 |    |   |
|                             |   |    |    |    |   | 04 |    |   |
|                             |   |    |    |    |   | ** |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             | * |    | ** |    | * |    | ** |   |
|                             | * |    | Un |    | * |    | Un |   |
|                             | C |    | ex |    | C |    | ex |   |
|                             | u |    | pe |    | u |    | pe |   |
|                             | m |    | nd |    | m |    | nd |   |
|                             | u |    | ed |    | u |    | ed |   |
|                             | l |    | ap |    | l |    | ap |   |
|                             | a |    | pr |    | a |    | pr |   |
|                             | t |    | op |    | t |    | op |   |
|                             | i |    | ri |    | i |    | ri |   |
|                             | v |    | at |    | v |    | at |   |
|                             | e |    | io |    | e |    | io |   |
|                             | r |    | ns |    | r |    | ns |   |
|                             | e |    | ** |    | e |    | ** |   |
|                             | s |    |    |    | s |    |    |   |
|                             | u |    |    |    | u |    |    |   |
|                             | l |    |    |    | l |    |    |   |
|                             | t |    |    |    | t |    |    |   |
|                             | s |    |    |    | s |    |    |   |
|                             | o |    |    |    | o |    |    |   |
|                             | f |    |    |    | f |    |    |   |
|                             | o |    |    |    | o |    |    |   |
|                             | p |    |    |    | p |    |    |   |
|                             | e |    |    |    | e |    |    |   |
|                             | r |    |    |    | r |    |    |   |
|                             | a |    |    |    | a |    |    |   |
|                             | t |    |    |    | t |    |    |   |
|                             | i |    |    |    | i |    |    |   |
|                             | o |    |    |    | o |    |    |   |
|                             | n |    |    |    | n |    |    |   |
|                             | s |    |    |    | s |    |    |   |
|                             | * |    |    |    | * |    |    |   |
|                             | * |    |    |    | * |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Beginning balances (note  | \ |    | \$ |    | \ |    | \$ |   |
| 19)**                       | $ |    | 1  |    | $ |    | 1  |   |
|                             | 9 |    | 39 |    | 7 |    | 22 |   |
|                             | 1 |    | ,7 |    | 8 |    | ,5 |   |
|                             | , |    | 93 |    | , |    | 99 |   |
|                             | 0 |    |    |    | 7 |    |    |   |
|                             | 0 |    |    |    | 7 |    |    |   |
|                             | 1 |    |    |    | 8 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| Prior period adjustments    |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| Changes in accounting       | \ |    |    |    | - |    |    |   |
| principles (note 7)         | ( |    |    |    | - |    |    |   |
|                             | 8 |    |    |    | - |    |    |   |
|                             | 3 |    |    |    |   |    |    |   |
|                             | 9 |    |    |    |   |    |    |   |
|                             | \ |    |    |    |   |    |    |   |
|                             | ) |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| Corrections of errors (note | - |    |    |    | ( |    |    |   |
| 24)                         | - |    |    |    | 1 |    |    |   |
|                             | - |    |    |    | 3 |    |    |   |
|                             |   |    |    |    | , |    |    |   |
|                             |   |    |    |    | 6 |    |    |   |
|                             |   |    |    |    | 2 |    |    |   |
|                             |   |    |    |    | 3 |    |    |   |
|                             |   |    |    |    | ) |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| Beginning balances, as      | 9 |    | 1  |    | 6 |    | 1  |   |
| adjusted                    | 0 |    | 39 |    | 5 |    | 22 |   |
|                             | , |    | ,7 |    | , |    | ,5 |   |
|                             | 1 |    | 93 |    | 1 |    | 99 |   |
|                             | 6 |    |    |    | 5 |    |    |   |
|                             | 2 |    |    |    | 5 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Budgetary Financing       |   |    |    |    |   |    |    |   |
| Sources:**                  |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Appropriations received   | - |    | 3  |    | - |    | 3  |   |
|                             | - |    | 21 |    | - |    | 16 |   |
|                             | - |    | ,2 |    | - |    | ,3 |   |
|                             |   |    | 91 |    |   |    | 22 |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Other adjustments         | - |    | (  |    | - |    | (  |   |
|                             | - |    | 6, |    | - |    | 4, |   |
|                             | - |    | 28 |    | - |    | 60 |   |
|                             |   |    | 5) |    |   |    | 2) |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Appropriations used       | 3 |    | (  |    | 2 |    | (  |   |
|                             | 3 |    | 33 |    | 9 |    | 29 |   |
|                             | 7 |    | 7, |    | 4 |    | 4, |   |
|                             | , |    | 24 |    | , |    | 52 |   |
|                             | 2 |    | 5) |    | 5 |    | 6) |   |
|                             | 4 |    |    |    | 2 |    |    |   |
|                             | 5 |    |    |    | 6 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Non-exchange revenue      | 5 |    |    |    | 1 |    | -  |   |
|                             | 7 |    |    |    | 9 |    | -- |   |
|                             | 9 |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Donations                 | 9 |    |    |    | 3 |    | -  |   |
|                             | , |    |    |    | , |    | -- |   |
|                             | 3 |    |    |    | 5 |    |    |   |
|                             | 6 |    |    |    | 7 |    |    |   |
|                             | 6 |    |    |    | 1 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Other budgetary financing | 2 |    |    |    | - |    |    |   |
| > sources                   | 1 |    |    |    | - |    |    |   |
|                             |   |    |    |    | - |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Other Financing Sources** |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Imputed financing from    | 1 |    |    |    | 1 |    |    |   |
| > costs absorbed by\        | 5 |    |    |    | 4 |    |    |   |
| > others                    | , |    |    |    | , |    |    |   |
|                             | 6 |    |    |    | 2 |    |    |   |
|                             | 5 |    |    |    | 2 |    |    |   |
|                             | 8 |    |    |    | 4 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| > Other                     | \ |    |    |    |   |    |    |   |
|                             | ( |    |    |    |   |    |    |   |
|                             | 5 |    |    |    |   |    |    |   |
|                             | 1 |    |    |    |   |    |    |   |
|                             | \ |    |    |    |   |    |    |   |
|                             | ) |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Total financing sources** | 3 |    | (2 |    | 3 |    | 17 |   |
|                             | 6 |    | 2, |    | 1 |    | ,1 |   |
|                             | 2 |    | 23 |    | 2 |    | 94 |   |
|                             | , |    | 9) |    | , |    |    |   |
|                             | 8 |    |    |    | 3 |    |    |   |
|                             | 1 |    |    |    | 4 |    |    |   |
|                             | 8 |    |    |    | 0 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Net cost of operations**  | 3 |    |    |    | 2 |    |    |   |
|                             | 4 |    |    |    | 8 |    |    |   |
|                             | 5 |    |    |    | 6 |    |    |   |
|                             | , |    |    |    | , |    |    |   |
|                             | 3 |    |    |    | 4 |    |    |   |
|                             | 6 |    |    |    | 2 |    |    |   |
|                             | 4 |    |    |    | 8 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| Net change                  | 1 |    | (2 |    | 2 |    | 17 |   |
|                             | 7 |    | 2, |    | 5 |    | ,1 |   |
|                             | , |    | 23 |    | , |    | 94 |   |
|                             | 4 |    | 9) |    | 9 |    |    |   |
|                             | 5 |    |    |    | 1 |    |    |   |
|                             | 4 |    |    |    | 2 |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
|                             |   |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+
| **Ending balance**          | * |    | ** |    | * |    | ** |   |
|                             | * |    | \$ |    | * |    | \$ |   |
|                             | \ |    | 1  |    | \ |    | 1  |   |
|                             | $ |    | 17 |    | $ |    | 39 |   |
|                             | 1 |    | ,5 |    | 9 |    | ,7 |   |
|                             | 0 |    | 54 |    | 1 |    | 93 |   |
|                             | 7 |    | ** |    | , |    | ** |   |
|                             | , |    |    |    | 0 |    |    |   |
|                             | 6 |    |    |    | 6 |    |    |   |
|                             | 1 |    |    |    | 7 |    |    |   |
|                             | 6 |    |    |    | * |    |    |   |
|                             | * |    |    |    | * |    |    |   |
|                             | * |    |    |    |   |    |    |   |
+-----------------------------+---+----+----+----+---+----+----+---+

The accompanying notes are an integral part of these statements.

***Combined Statement of Budgetary Resources***

For the years ended September 30, 2005, and 2004\
(in thousands)

  ---------------------------------------------- ------------ ------------
                                                 **2005**     **2004**

  **Budgetary resources**                                     

  Budget authority                                            

  Appropriations received                        \$ 331,506   \$ 320,141

  Unobligated balance, beginning of period (Note 62,506       60,524
  19)                                                         

  Spending authority from offsetting collections              

  Earned                                                      

  Collected                                      168,253      160,973

  Receivable from Federal sources                (5,410)      2,408

  Change in unfilled customer orders                          

  Advance received                               96           \(88\)

  Without advance from Federal sources           \(770\)      2

  Subtotal                                       162,169      163,295

  Recoveries of prior year obligations           27,330       21,096

  Permanently not available                      (14,773)     (12,412)

  **Total budgetary resources**                  **\$         **\$
                                                 568,738**    552,644**

                                                              

  **Status of Budgetary Resources**                           

  Obligations incurred                                        

  Direct                                         358,512      349,569

  Reimbursable                                   135,513      140,503

  Subtotal                                       494,025      490,072

  Unobligated balance                                         

  Apportioned                                    24,040       27,129

  Exempt from apportionment                      36,011       30,673

  Unobligated balance not available              14,662       4,770

  **Total Status of Budgetary Resources**        **\$         **\$
                                                 568,738**    552,644**

                                                              

  **Relationship of Obligations to Outlays**                  

  Obligated balance, net, beginning of period    141,162      142,166

  Obligated balance, net, end of period                       

  Accounts receivable                            (9,935)      (15,345)

  Unfilled customer orders from Federal sources               \(770\)

  Undelivered orders                             83,324       119,479

  Accounts payable                               33,916       37,798

  Outlays                                                     

  Disbursements                                  506,730      467,569

  Collections                                    (168,349)    (160,885)

  **Net Outlays**                                **\$         **\$
                                                 338,381**    306,684**
  ---------------------------------------------- ------------ ------------

The accompanying notes are an integral part of these statements.

### Consolidated Statement of Financing {#consolidated-statement-of-financing .Table-Head}

For the years ended September 30, 2005, and 2004\
(in thousands)

+------------------------------------------------+---------+----------+
|                                                | *       | **Re     |
|                                                | *2005** | stated** |
|                                                |         |          |
|                                                |         | **2004** |
+------------------------------------------------+---------+----------+
| ***Resources used to finance activities***     |         |          |
+------------------------------------------------+---------+----------+
| Budgetary resources obligated                  |         |          |
+------------------------------------------------+---------+----------+
| Obligations incurred                           | \$      | \$       |
|                                                | 494,025 | 490,072  |
+------------------------------------------------+---------+----------+
| Less: Spending authority from offsetting       | (1      | (        |
| collections and recoveries                     | 89,499) | 184,391) |
+------------------------------------------------+---------+----------+
| Obligations net of offsetting collections and  | 304,526 | 305,681  |
| recoveries                                     |         |          |
+------------------------------------------------+---------+----------+
| Other Resources                                |         |          |
+------------------------------------------------+---------+----------+
| Imputed financing from costs absorbed by       | 15,658  | 14,224   |
| others                                         |         |          |
+------------------------------------------------+---------+----------+
| Other                                          | \(51\)  | ---      |
+------------------------------------------------+---------+----------+
| ***Total resources used to finance             | 320,133 | 319,905  |
| activities***                                  |         |          |
+------------------------------------------------+---------+----------+
|                                                |         |          |
+------------------------------------------------+---------+----------+
|                                                |         |          |
+------------------------------------------------+---------+----------+
| ***Resources used to finance items not part of |         |          |
| net cost of operations***                      |         |          |
+------------------------------------------------+---------+----------+
| Change in budgetary resources obligated for    | 35,522  | (15,642) |
| goods, services, and                           |         |          |
|                                                |         |          |
| benefits ordered but not yet provided          |         |          |
+------------------------------------------------+---------+----------+
| Resources that fund expenses recognized in     | (4,706) | ---      |
| prior periods                                  |         |          |
+------------------------------------------------+---------+----------+
| Budgetary offsetting collections and receipts  | 289     | 19       |
| that do not affect net                         |         |          |
|                                                |         |          |
| cost of operations                             |         |          |
+------------------------------------------------+---------+----------+
| Resources that finance the acquisition of      | (       | (34,611) |
| assets                                         | 35,683) |          |
+------------------------------------------------+---------+----------+
| > ***Total resources used to finance items not | (4,578) | (50,234) |
| > part of net cost of operations***            |         |          |
+------------------------------------------------+---------+----------+
|                                                |         |          |
+------------------------------------------------+---------+----------+
| ***Total resources used to finance the net     | **\$    | **\$     |
| cost of operations***                          | 31      | 2        |
|                                                | 5,555** | 69,671** |
+------------------------------------------------+---------+----------+
|                                                |         |          |
+------------------------------------------------+---------+----------+
| ***Components of the net cost of operations    |         |          |
| that will not require or generate resources in |         |          |
| current period***                              |         |          |
+------------------------------------------------+---------+----------+
| **Components requiring or generating resources |         |          |
| in future periods**                            |         |          |
+------------------------------------------------+---------+----------+
| > Increase in annual leave liability           | 1,482   | 831      |
+------------------------------------------------+---------+----------+
| > Other                                        | 1,966   | (5,966)  |
+------------------------------------------------+---------+----------+
| > **Total components of net cost of operations | **      | **(      |
| > that will require or**                       | 3,448** | 5,135)** |
| >                                              |         |          |
| > **generate resources in future periods**     |         |          |
+------------------------------------------------+---------+----------+
| **Components not requiring or generating       |         |          |
| resources**                                    |         |          |
+------------------------------------------------+---------+----------+
| Depreciation and amortization                  | 23,649  | 20,739   |
+------------------------------------------------+---------+----------+
| Revaluation of assets or liabilities           | 1,322   | ---      |
+------------------------------------------------+---------+----------+
| Other                                          | 1,390   | 1,153    |
+------------------------------------------------+---------+----------+
| > **Total components of net cost of operations | **2     | **       |
| > that will not require or generate            | 6,361** | 21,892** |
| > resources**                                  |         |          |
+------------------------------------------------+---------+----------+
| ***Total components of net cost of operations  | **2     | **       |
| that will not require or***                    | 9,809** | 16,757** |
|                                                |         |          |
| ***generate resources in current period***     |         |          |
+------------------------------------------------+---------+----------+
| **Net cost of operations**                     | **\$    | **\$     |
|                                                | 34      | 2        |
|                                                | 5,364** | 86,428** |
+------------------------------------------------+---------+----------+

The accompanying notes are an integral part of these statements.

###  Notes to Principal Statements {#notes-to-principal-statements .AR-2004-Head-3}

##### Note 1---Summary of Significant Accounting Policies {#note-1summary-of-significant-accounting-policies .AR-2004-Head-4}

### A. Reporting Entity {#a.-reporting-entity .Notes-Subhead}

The National Archives was created by statute as an independent agency in
1934. On September 30, 1949, the Federal Property and Administrative
Services Act transferred the National Archives to the General Services
Administration (GSA), and its name was changed to National Archives and
Records Services. It attained independence again as an agency in October
1984 (effective April 1, 1985) and became known as the National Archives
and Records Administration (NARA).

NARA is our national record keeper. NARA safeguards records of all three
branches of the Federal Government. NARA\'s mission is to ensure that
Federal officials and the American public have ready access to essential
evidence---records that document the rights of citizens, the actions of
Government officials, and the national experience.

NARA is administered under the supervision of the Archivist of the
United States. It comprises various Operating Administrations, each
having its own management and organizational structure, which
collectively provide services and ready access to essential evidence.
NARA's accompanying financial statements include accounts of all funds
under NARA's control.

> **General Funds**

-   Operating Expenses

```{=html}
<!-- -->
```
-   Records Services---Provides for selecting, preserving, describing,
    and making available to the general public, scholars, and Federal
    agencies the permanently valuable historical records of the Federal
    Government and the historical materials and Presidential records in
    Presidential libraries; for preparing related publications and
    exhibit programs; and for conducting the appraisal of all Federal
    records.

```{=html}
<!-- -->
```
-   Archives Related Services---Provides for the publication of the
    *Federal Register,* the *Code of Federal Regulations,* the *U.S.
    Statutes-at-Large,* and Presidential documents, and for a program to
    improve the quality of regulations and the public's access to them.
    This activity also includes the administration and reference service
    portions for the National Historical Publications and Records
    Commission.

```{=html}
<!-- -->
```
-   The National Archives at College Park---Provides for construction
    and related services of the archival facility that opened to the
    public at the end of 1993.

```{=html}
<!-- -->
```
-   Electronic Records Archives---Provides for research, analysis,
    design, development and program management to build an Electronic
    Records Archive (ERA) that will ensure the preservation of and
    access to Government electronic records.

-   Repairs and Restoration---Provides for the repair, alteration, and
    improvement of Archives facilities and Presidential libraries
    nationwide, and provides adequate storage for holdings. It will
    better enable the National Archives to maintain its facilities in
    proper condition for public visitors, researchers, and employees in
    NARA facilities, and also maintain the structural integrity of the
    buildings.

-   National Historical Publications and Records Commission
    Grants---Provides for grants funding that the Commission makes, to
    local, state, and private institutions nationwide, to preserve and
    publish records that document American history.

    **Intragovernmental Fund**

-   Records Center Revolving Fund---Utilizes customer funding
    effectively to provide services on a standard price basis to Federal
    agency customers. The fund maintains low-cost, quality storage and
    transfers, reference, re-file, and disposal services for records
    stored in regional service facilities.

> **Trust Funds**

-   National Archives Gift Fund ---The National Archives Trust Board
    solicits and accepts gifts or bequests of money, securities, or
    other personal property for the benefit of or in connection with the
    national archival and records activities administered by the
    National Archives and Records Administration (44 U.S.C. 2305).

-   National Archives Trust Fund---The Archivist of the United States
    furnishes, for a fee, copies of unrestricted records in the custody
    of the National Archives (44 U.S.C. 2116). Proceeds from the sale of
    copies of microfilm publications, reproductions, special works and
    other publications, and admission fees to Presidential library
    museums are deposited in this fund.

### B. Basis of Presentation {#b.-basis-of-presentation .Notes-Subhead}

These statements were prepared from the accounting records of NARA in
conformity with United States generally accepted accounting principles
(GAAP), and the Office of Management and Budget (OMB) Circular NO.
A-136, *Financial Reporting Requirements*. GAAP for Federal entities are
the standards prescribed by the Federal Accounting Standards Advisory
Board (FASAB), which is the official body for setting the accounting
standards of the U.S. Government. These statements are, therefore,
different from the financial reports prepared by NARA, also subject to
OMB directives, for the purposes of reporting and monitoring NARA's
status of budget resources.

### C. Basis of Accounting {#c.-basis-of-accounting .Notes-Subhead}

Transactions are recorded on both an accrual and budgetary basis. Under
the accrual basis, exchange revenues are recognized when earned, and
expenses are recognized when a liability is incurred, without regard to
receipt or payment of cash. Budgetary accounting facilitates compliance
with legal constraints and control over the use of Federal funds.

### D. Funds with the U.S. Treasury  {#d.-funds-with-the-u.s.-treasury .Notes-Subhead}

Funds with NARA primarily represent appropriated, revolving and trust
funds. These funds may be used by NARA to finance expenditures. NARA's
cash receipts and disbursements are processed by the U.S. Treasury.

###  {#section-71 .Notes-Subhead}

### E. Accounts Receivable {#e.-accounts-receivable .Notes-Subhead}

Accounts receivable consist of amounts due from the public and other
Federal agencies. The allowance for uncollectible accounts from the
public is estimated based on an analysis of the aged receivables.
Accounts receivable from Federal agencies are expected to be collected
and therefore not included when calculating the allowance for
uncollectible accounts.

###  {#section-72 .Notes-Subhead}

### F. Investments in Securities {#f.-investments-in-securities .Notes-Subhead}

Investments in Federal securities are reported at cost, net of amortized
premiums and discounts. Premiums and discounts are amortized into
interest expense and interest revenue, respectively, over the term of
the investment. NARA's intent is to hold investments to maturity unless
they are needed to sustain operations. NARA's investments consist
largely of short-term, highly liquid investments, i.e., Treasury bills
and money market funds, which are treated as investments rather than
cash equivalents.

NARA also employs the use of a third-party capital management firm to
monitor and manage the endowments, received pursuant to Title 44 U.S.C.
section 2112, for the George Bush Library and Clinton Library. The
purpose of the endowment is to provide income to offset the operations
and maintenance costs of the corresponding Presidential library. Each
endowment is reflected as a separate investment account. During fiscal
year 2005, these accounts were transferred from an actively managed
intermediate bond portfolio made up of many individual holdings to the
purchase of shares in the Lehman Aggregate Bond Index. The investment in
the Lehman Aggregate Bond Index will be recorded at fair value, and
interest income earned will be recognized on a monthly basis.

### G. Cash {#g.-cash .Notes-Subhead}

Cash consists of petty cash imprest funds maintained at Presidential
libraries and the National Archives regional and headquarters locations.
These funds are used to finance the cashiers' start-up cash.

### H. Net Position {#h.-net-position .Notes-Subhead}

Net position is the residual difference between assets and liabilities
and comprises unexpended appropriations and cumulative results of
operations.

Appropriations are recognized as capital when made available for
apportionment by OMB. Unexpended appropriations represent the total
amount of unexpended budget authority, both obligated and unobligated.
Unexpended appropriations are reduced for appropriations used and
adjusted for other changes in budgetary resources, such as transfers and
rescissions. Cumulative results of operations line item is the net
result of NARA's operations since inception.

###  {#section-73 .Notes-Subhead}

### I. Operating Material and Supplies {#i.-operating-material-and-supplies .Notes-Subhead}

Operating material and supplies consist of tangible property to be
consumed in normal operations and are expensed when purchased.

### J. Inventories {#j.-inventories .Notes-Subhead}

The National Archives Trust Fund inventories, which consist of
merchandise held for sale, are stated at the lower of cost or market,
with cost determined using the average cost method. An allowance for
damaged and obsolete goods is based on historical analysis and an
evaluation of inventory turnover from year to year. Expenses are
recorded when the inventories are sold.

### K. Property, Plant, and Equipment {#k.-property-plant-and-equipment .Notes-Subhead}

Property and equipment consist of land, buildings, typical office
furnishings, installed shelving in the record facilities, and computer
hardware and software. NARA capitalizes property with a cost exceeding
\$50 thousand and a useful life exceeding two years. Depreciation
expense is calculated using the straight-line method over the useful
life. Property items not meeting the capitalization criteria are
recorded as operating expenses.

In FY 2005 NARA changed the capitalization threshold from \$25 thousand.
The aggregate cost and related accumulated depreciation of the assets
that no longer meet the capitalization criteria was removed from the
PP&E balances. The change in PP&E book value is recorded and presented
as a prior period adjustment.

Federal Financial Accounting Standard (SFFAS) No. 6, Accounting for
Property, Plant and Equipment, defines the diversity among Federal PP&E.
NARA's PP&E falls into two categories: general PP&E and heritage assets.
General PP&E items are used to provide general Government goods and
services. Heritage assets are defined as possessing significant
educational, cultural, or natural characteristics. The National Archives
Building in Washington and all Presidential libraries are classified as
heritage assets and are not included on the balance sheet. Multiuse
heritage assets are heritage assets that are used predominantly for
general Government operations. The costs of acquisition, significant
betterment, or reconstruction of multiuse heritage assets are
capitalized as general PP&E and depreciated. The National Archives
facility at College Park and the Southeast regional archival facility in
Atlanta, GA, are classified as multiuse heritage assets and are included
in general PP&E on the balance sheet. Physical quantity of both heritage
and multiuse heritage assets is included in Required Supplementary
Stewardship Information. The current condition of PP&E and heritage
assets and estimated cost of deferred maintenance is reported in
Required Supplementary Information.

### L. Internal Use Software {#l.-internal-use-software .Notes-Subhead}

NARA capitalizes internal-use software development projects whose total
cost is \$250 thousand or greater. Internal-use software includes
commercial off-the-shelf (COTS) software and internally developed or
contractor developed software. The estimated useful life is five years.

### M. Employee Health and Life Insurance Benefits {#m.-employee-health-and-life-insurance-benefits .Notes-Subhead}

NARA employees are eligible to participate in the contributory Federal
Employees Health Benefit Program (FEHBP) and the Federal Employee Group
Life Insurance Program (FEGLIP). Both of these programs require
contributions from the employee based on the coverage options selected
by the employee. NARA contributes the required employer share. Both of
these programs provide post-retirement benefits. The Office of Personnel
Management (OPM) administers and reports the liabilities for these
post-retirement benefits. NARA recognizes the entire service costs of
the post-retirement portions of these programs as Imputed Cost and
Imputed Financing Sources.

### N. Workers' Compensation Program {#n.-workers-compensation-program .Notes-Subhead}

The Federal Employees Compensation Act (FECA) provides income and
medical cost protection to covered Federal civilian employees injured on
the job, to employees who have incurred work-related occupational
diseases, and to beneficiaries of employees whose deaths are
attributable to job-related injuries or occupational diseases. The FECA
program is administered by the U.S. Department of Labor (DOL), which
pays valid claims and subsequently seeks reimbursement from NARA for
these paid claims.

Actuarial FECA liability represents the liability for expected future
workers' compensation benefits, which includes the liability for death,
disability, medical, and miscellaneous costs for approved cases. The
actuarial liability is determined by DOL annually, as of September 30,
using a method that utilizes historical benefits payment patterns
related to a specific incurred period, wage inflation factors, medical
inflation factors and other variables. These actuarially computed
projected annual benefit payments are discounted to present value using
OMB's economic assumptions for 10-year Treasury notes and bonds. NARA
computed its actuarial FECA liability based on the model provided by
DOL.

### O. Employee Retirement Benefits {#o.-employee-retirement-benefits .Notes-Subhead}

NARA employees are covered by either the Civil Service Retirement System
(CSRS) or the Federal Employee Retirement System (FERS). Most NARA
employees hired prior to January 1, 1984, participate in the CSRS, to
which NARA contributes 8.51 percent of basic pay, and the employee
contributes 7.0 percent, for a total contribution of 15.51 percent. On
January 1, 1984, FERS went into effect pursuant to Public Law 99-335.
Under the FERS plan, NARA contributes 11.2 percent, while employees
contribute 0.8 percent of basic pay, for a total contribution of 12
percent. NARA funds a portion of pension benefits for its employees
under the CSRS and the FERS and makes the necessary payroll withholdings
for them. NARA is not required to disclose the assets of the systems or
the actuarial data with respect to accumulated plan benefits of the
unfunded pension liability relative to its employees. Reporting such
amounts is the direct responsibility of OPM. NARA does, however,
recognize and allocate the imputed costs on the Statement of Net Cost
and recognizes imputed financing related to these costs on the Statement
of Changes in Net Position.

Employees covered by CSRS and FERS are eligible to contribute to the
U.S. Government's Thrift Savings Plan (TSP), administered by the Federal
Retirement Thrift Investment Board. A TSP account is automatically
established for FERS covered employees and NARA makes a mandatory
contribution of 1 percent of basic pay. FERS-covered employees are
entitled effective December 2003 to contribute up to 15 percent of basic
pay to their TSP account, subject to the U.S. Internal Revenue Service
(IRS) dollar amount limits, with NARA making matching contributions up
to an additional 4 percent of basic pay. Employees covered by CSRS are
entitled to contribute up to 10 percent of basic pay to their TSP
accounts, subject to the IRS dollar amount limits. NARA makes no
matching contributions for CSRS-covered employees. Effective July 2003,
TSP participants age 50 or older who are already contributing the
maximum amount of contributions for which they are eligible may also
make catch-up contributions subject to the IRS dollar amount limits.
NARA also makes matching contributions to the Social Security
Administration (SSA) under the Federal Insurance Contributions Act
(FICA). For employees covered by FERS, NARA matches the amount of 6.2
percent of gross pay up to \$90 thousand to SSA's Old-Age Survivors and
Disability Insurance (OASDI) program. Additionally, NARA makes matching
contributions for all employees of 1.45 percent of gross pay to the
Medicare Hospital Insurance program.

### P. Accrued Annual, Sick and Other Leave {#p.-accrued-annual-sick-and-other-leave .Notes-Subhead}

Annual leave is accrued as it is earned, and the accrual is reduced as
leave is taken. At the end of each fiscal year, the balance in the
accrued annual leave liability account is adjusted to reflect current
pay rates. The amount of the adjustment is recorded as an expense.
Current or prior year appropriations are not available to fund annual
leave earned but not taken. Funding occurs in the year the leave is
taken and payment is made. Sick leave and other types of non-vested
leave are expensed as taken.

### Q. Use of Estimates {#q.-use-of-estimates .Notes-Subhead}

The preparation of financial statements requires management to make
certain estimates and assumptions that affect the reported amounts of
assets and liabilities and the reported amounts of revenue and expenses
during the reporting period. Actual results may differ from those
estimates.

### R. Contingencies and Commitments {#r.-contingencies-and-commitments .Notes-Subhead}

NARA is involved in various claims. A liability is generally recognized
as an unfunded liability for those legal actions where unfavorable
decisions are considered "probable" and an estimate for the liability
can be made. Contingent liabilities that are considered "possible" are
disclosed in the notes to the financial statements. Liabilities that are
considered "remote" are not recognized in the financial statements or
disclosed in the notes to the financial statements.

*S. Allocation of Program Management Cost*

NARA is comprised of various Operating Administrations, each having its
own management and organizational structure. NARA allocates its general
management and administrative support to its major components, Records
and archives--related services and Revolving Fund. General manage­ment
costs are not allocated to the Trust and Gift Funds, since they are
administered by the National Archives Trust Fund Board, which is an
organization independent of, and not funded by, NARA (see note 23). All
other programs appearing on the Statement of Net Cost, such as
Electronic Records Archives and National Historic Publications and
Records Commission grants are a part of the bigger program of Records
and Archives-Related Services, where the related administrative cost are
included. These sub-programs are shown separately for the purpose of
demonstrating custodial responsibility for the funding received for
these programs.

*T. Changes in generally accepted accounting principles*

NARA has changed the threshold for capitalizing personal property from
\$25 thousand to \$50 thousand in fiscal year 2005, as discussed in note
K. All assets included in the PP&E have been revalued using the new
threshold.

##### Note 2 -- Non-entity Assets {#note-2-non-entity-assets .AR-2004-Head-4}

Non-entity intragovernmental investments of \$17,453 thousand on the
balance sheet as of September 30, 2004, were liquidated and relinquished
to the U.S. Treasury during the second quarter of FY 2005. These
investments were funded by the accumulated interest, earned during the
period of construction and hence, on the funds remaining from the sale
of certificates of ownership to finance the construction of the National
Archives at College Park. No balance remains as of September 30, 2005.

##### Note 3---Fund Balance with Treasury and Cash {#note-3fund-balance-with-treasury-and-cash .AR-2004-Head-4}

  ------------------------------------------ ------------- ----------------
  **Fund balances** *(in thousands)*         **2005**      **2004**

  Appropriated funds                         \$ 141,835    \$ 165,246

  Revolving Fund                             23,413        18,921

  Trust Fund                                 1,887         901

  Gift Fund                                  96            139

  **Sub-total**                              **167,231**   **185,207**

  Investments                                26,609        35,990

  Less interest receivable on investments    \(8\)         \(46\)

  Less non-entity investments                ---           (17,453)

  Less Investments held outside Treasury     (11,861)      ---

  Imprest fund (cash)                        48            36

  **Total**                                  **\$          **\$ 203,734**
                                             182,019**     

                                             []{.mark}     []{.mark}

  **Status of fund balances with Treasury**  []{.mark}     []{.mark}

  Unobligated balance                        []{.mark}     []{.mark}

  Available                                  60,052        57,803

  Unavailable                                14,662        4,769

  Obligated balance not yet disbursed        107,305       141,162

  **Total**                                  **\$          **\$ 203,734**
                                             182,019**     

                                             []{.mark}     []{.mark}

  **Unavailable unobligated balance includes               
  the following**                                          

  Allotments---Expired authority             \$ 14,662     \$ 4,769
  ------------------------------------------ ------------- ----------------

Restricted donations, included in the available unobligated balance
above, are obligated in accordance with the terms of the donor. All
donations to Presidential libraries and the National Archives with
specific requirements are considered restricted. The restricted
unobligated balance is \$12,916 thousand as of September 30, 2005 and
\$7,830 thousand as of September 30, 2004.

The unused fund balance of \$3,715 thousand in cancelled appropriation
for FY 2000 is returned to Treasury at the end of the fiscal year.

##### Note 4---Investments  {#note-4investments .AR-2004-Head-4}

*Investments as of September 30, 2005, and September 30, 2004, consist
of the following\
*(in thousands):

+------------------+------+-------+--------+-------+-------+--------+
| ***Amounts for   |      |       |        |       |       |        |
| 2005 Balance     |      |       |        |       |       |        |
| Sheet            |      |       |        |       |       |        |
| Reporting***     |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
|                  | > ** | > *** | >      | > *** | > *   | >      |
|                  | *Cos | Amort |  ***Un | Inves | **Oth | ***Mar |
|                  | t*** | izati | amorti | tment | er*** | ket*** |
|                  |      | on*** | zed*** | s,*** | >     | >      |
|                  |      | >     | >      | >     | > **  | >      |
|                  |      | > **  | > ***  | >     | *adju |  ***va |
|                  |      | *meth | (premi |  ***n | stmen | lue*** |
|                  |      | od*** | um)*** | et*** | ts*** | >      |
|                  |      |       | >      |       |       | > ***d |
|                  |      |       | > **   |       |       | isclos |
|                  |      |       | *disco |       |       | ure*** |
|                  |      |       | unt*** |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Int            |      |       |        |       |       |        |
| ragovernmental** |      |       |        |       |       |        |
|                  |      |       |        |       |       |        |
| **Securities**   |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Marketable       | 14   | Stra  | \$ 53  | \$    | \$    | \$     |
|                  | ,793 | ight- |        | 1     | (1)   | 14,739 |
|                  |      |       |        | 4,740 |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Total          | **   | line  | **53** | **14, | **    | **14   |
| int              | 14,7 |       |        | 740** | (1)** | ,739** |
| ragovernmental** | 93** |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
|                  |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Other          |      |       |        |       |       |        |
| securities**     |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Cash Equivalents | 22   |       |        | 22    |       | 22     |
+------------------+------+-------+--------+-------+-------+--------+
| U.S. Treasury    | ---  |       |        | ---   |       | ---    |
| Obligations      |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| U.S. government  | ---  |       |        | ---   |       | ---    |
| Agencies         |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Corp. & foreign  | 1    |       |        | 1     |       | 1      |
| Bonds            |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Closed-end Fixed | 11   |       |        | 1     |       | 11,838 |
| Income           | ,838 |       |        | 1,838 |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Accrued interest | 8    |       |        | 8     |       | 8      |
+------------------+------+-------+--------+-------+-------+--------+
| Total other      | 11   |       | ---    | 1     | ---   | 11,869 |
|                  | ,869 |       |        | 1,869 |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Total            | **   |       | **\$   | **\$  | **\$  | **\$   |
| investments      | 26,6 |       | 53**   | 26,   | (1)** | 26     |
|                  | 62** |       |        | 609** |       | ,608** |
+------------------+------+-------+--------+-------+-------+--------+

Other securities represent investments in short-term investment funds
and fixed-income securities.

+------------------+------+-------+--------+-------+-------+--------+
| ***Amounts for   |      |       |        |       |       |        |
| 2004 Balance     |      |       |        |       |       |        |
| Sheet            |      |       |        |       |       |        |
| Reporting***     |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
|                  | > ** | > *** | >      | > *** | > *   | >      |
|                  | *Cos | Amort |  ***Un | Inves | **Oth | ***Mar |
|                  | t*** | izati | amorti | tment | er*** | ket*** |
|                  |      | on*** | zed*** | s,*** | >     | >      |
|                  |      | >     | >      | >     | > **  | >      |
|                  |      | > **  | > ***  | >     | *adju |  ***va |
|                  |      | *meth | (premi |  ***n | stmen | lue*** |
|                  |      | od*** | um)*** | et*** | ts*** | >      |
|                  |      |       | >      |       |       | > ***d |
|                  |      |       | > **   |       |       | isclos |
|                  |      |       | *disco |       |       | ure*** |
|                  |      |       | unt*** |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Int            |      |       |        |       |       |        |
| ragovernmental** |      |       |        |       |       |        |
|                  |      |       |        |       |       |        |
| **securities**   |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Marketable       | \$   | Stra  | \$ 77  | \$    | \$    | \$     |
|                  | 31   | ight- |        | 3     | (31)  | 31,174 |
|                  | ,282 |       |        | 1,205 |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Total          | **   | line  | **77** | **31, | **(   | **31   |
| int              | 31,2 |       |        | 205** | 31)** | ,174** |
| ragovernmental** | 82** |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
|                  |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| **Other          |      |       |        |       |       |        |
| securities**     |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Money market     | 403  |       |        | 403   | ---   | 403    |
| funds            |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| U.S. Treasury    | 266  |       |        | 266   | \(2\) | 264    |
| obligations      |      |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| U.S. Government  | 1    |       |        | 1,489 | 4     | 1,493  |
| agencies         | ,489 |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Corp. & foreign  | 2    |       |        | 2,581 | 215   | 2,796  |
| bonds            | ,581 |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Accrued interest | 46   |       |        | 46    |       | 46     |
+------------------+------+-------+--------+-------+-------+--------+
| Total other      | 4    |       | ---    | 4,785 | 217   | 5,002  |
|                  | ,785 |       |        |       |       |        |
+------------------+------+-------+--------+-------+-------+--------+
| Total            | **\$ |       | **\$   | **\$  | **\$  | **\$   |
| investments      | 36,0 |       | 77**   | 35,   | 186** | 36     |
|                  | 67** |       |        | 990** |       | ,176** |
+------------------+------+-------+--------+-------+-------+--------+

*Note 5---Accounts Receivable, Net*

*Accounts receivable and allowances for uncollectible accounts consisted
of the following\
(in thousands):*

+-------------------------+-----------+--------+--------------+--------+
|                         | **2005**  |        | **2004**     |        |
+-------------------------+-----------+--------+--------------+--------+
|                         | ***       | *      | ***Intra-*** | *      |
|                         | Intra-*** | **With |              | **With |
|                         |           | the    | ***gov       | the    |
|                         | ***govern | pub    | ernmental*** | pub    |
|                         | mental*** | lic*** |              | lic*** |
+-------------------------+-----------+--------+--------------+--------+
| Accounts receivable     | \$ 9,181  | \$ 867 | \$ 14,151    | \$ 882 |
+-------------------------+-----------+--------+--------------+--------+
| Allowance for           | ---       | \(4\)  | ---          | \(1\)  |
| uncollectible accounts  |           |        |              |        |
+-------------------------+-----------+--------+--------------+--------+
| **Accounts receivable,  | **\$      | **\$   | **\$         | **\$   |
| net**                   | 9,181**   | 863**  | 14,151**     | 881**  |
+-------------------------+-----------+--------+--------------+--------+

The allowance for uncollectible accounts from the public is estimated
based on an analysis of the aged receivables. Accounts receivable from
Federal agencies are expected to be collected; therefore, there is no
allowance for uncollectible accounts.

##### Note 6---Inventories  {#note-6inventories .AR-2004-Head-4}

Inventories consist of merchandise held available for current sale at
gift shops in the Presidential libraries and the National Archives
buildings. There was no change to the allowance estimate for the quarter
ending September 30, 2005.

#####  {#section-74 .AR-2004-Head-4}

##### Note 7 - General Property, Plant, and Equipment, Net {#note-7---general-property-plant-and-equipment-net .AR-2004-Head-4}

The following components comprise Property, Plant, and Equipment as of
September 30, 2005, and September 30, 2004 *(in thousands):*

+-----------------+-------+----------+----------+---------+---------+
|                 |       |          |          | *       | **Res   |
|                 |       |          |          | *2005** | tated** |
|                 |       |          |          |         |         |
|                 |       |          |          |         | *       |
|                 |       |          |          |         | *2004** |
+-----------------+-------+----------+----------+---------+---------+
| Asset category  | ***Es | ***Acq   | *        | ***Net  | ***Net  |
|                 | timat | uisition | **Accumu | book    | book    |
|                 | ed*** | cost***  | lated*** | v       | v       |
|                 |       |          |          | alue*** | alue*** |
|                 | ***u  |          | ***      |         |         |
|                 | seful |          | deprecia |         |         |
|                 | li    |          | tion/*** |         |         |
|                 | fe*** |          |          |         |         |
|                 |       |          | **       |         |         |
|                 | ***in |          | *amortiz |         |         |
|                 | yea   |          | ation*** |         |         |
|                 | rs*** |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
|                 |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Land            | N/A   | \$ 6,159 | \$ ---   | \$      | \$      |
|                 |       |          |          | 6,159   | 6,159   |
+-----------------+-------+----------+----------+---------+---------+
| Buildings and   | 30    | 387,189  | (        | 243,919 | 227,546 |
| structures      |       |          | 143,270) |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Construction    |       | 5,462    |          | 5,462   | 24,307  |
| and             |       |          |          |         |         |
|                 |       |          |          |         |         |
| shelving in     |       |          |          |         |         |
| progress        |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Equipment &     | 3 to  | 56,085   | (33,790) | 22,295  | 25,104  |
| shelving        | 20    |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Leasehold       | 5     | 3,430    | \(250\)  | 3,180   | 322     |
| improvements    |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Assets under    | 20    | 5,284    | (2,434)  | 2,850   | 3,115   |
| capital lease   |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Internal-use    | 5     | 35,145   | (18,540) | 16,605  | 21,603  |
| software        |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| Software        |       | 11,332   | ---      | 11,332  | 6,461   |
| development     |       |          |          |         |         |
|                 |       |          |          |         |         |
| in progress     |       |          |          |         |         |
+-----------------+-------+----------+----------+---------+---------+
| **Total         |       | **\$     | **\$     | **\$    | **\$    |
| property, plant |       | 5        | (19      | 31      | 31      |
| and equipment** |       | 10,086** | 8,284)** | 1,802** | 4,617** |
+-----------------+-------+----------+----------+---------+---------+

As described in note 1K, buildings and structures presented on the
balance sheet include the National Archives at College Park and the
Southeast regional archival facility in Atlanta, GA, which are multiuse
heritage assets. All other buildings are deemed to be heritage assets
and are not included in the general PP&E. The amount recorded as a prior
period adjustment resulting from the change in accounting principles for
the change in threshold for capitalizing personal property from \$25
thousand to \$50 thousand was \$839 thousand.

##### Note 8 -- Other Assets  {#note-8-other-assets .AR-2004-Head-4}

*Other assets as of September 30, 2005, and September 30, 2004, consist
of the following* (in thousands):

+----------------+------------+----------+------------------+---------+
|                | **2005**   |          | **2004**         |         |
+----------------+------------+----------+------------------+---------+
|                | ***I       | ***With  | ***Intra-***     | ***With |
|                | ntra-gover | the      |                  | the     |
|                | nmental*** | p        | **               | pu      |
|                |            | ublic*** | *governmental*** | blic*** |
+----------------+------------+----------+------------------+---------+
| Other assets   | \$ ---     | \$ 1,029 | \$ ---           | \$      |
|                |            |          |                  | 1,015   |
+----------------+------------+----------+------------------+---------+
| Prepaid        | ---        | ---      | 40               | ---     |
| expenses       |            |          |                  |         |
+----------------+------------+----------+------------------+---------+
| Advances       | ---        | ---      | ---              | 1       |
+----------------+------------+----------+------------------+---------+
| **Total other  | **\$ ---** | **\$     | **\$ 40**        | **\$    |
| assets**       |            | 1,029**  |                  | 1,016** |
+----------------+------------+----------+------------------+---------+

The major part of *Other assets* consist of a one-time cost of obtaining
an operating lease amounting to \$1,003 thousand as of September 30,
2005. This cost is deferred and is being amortized over the lease term
as additional rent expense.

Prepaid expenses represent amounts advanced for postage for FY 2004.
Advances represent amounts for travel and relocation for FY 2004.

##### Note 9 -- Liabilities not covered by Budgetary Resources  {#note-9-liabilities-not-covered-by-budgetary-resources .AR-2004-Head-4}

Liabilities not covered by budgetary resources as of September 30, 2005,
and September 30, 2004, consist of the following *(in thousands):*

+------------------------+----------+----------+----------+----------+
|                        | **2005** |          | **2004** |          |
+------------------------+----------+----------+----------+----------+
|                        | ***Intra | ***With  | ***Intra | ***With  |
|                        | -governm | the      | -governm | the      |
|                        | ental*** | p        | ental*** | p        |
|                        |          | ublic*** |          | ublic*** |
+------------------------+----------+----------+----------+----------+
| Debt held by the       | \$ ---   | \$       | \$ ---   | \$       |
| public (including      |          | 236,259  |          | 246,046  |
| accrued interest)      |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Other                  | 258      | 21,840   | 397      | 20,406   |
+------------------------+----------+----------+----------+----------+
| > Total liabilities    | 258      | 258,099  | 397      | 266,452  |
| > not covered by       |          |          |          |          |
| > budgetary resources  |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Total liabilities      | 6,562    | 27,778   | 24,304   | 30,920   |
| covered by budgetary   |          |          |          |          |
| resources              |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| **Total liabilities**  | **\$     | **\$     | **\$     | **\$     |
|                        | 6,820**  | 2        | 24,701** | 2        |
|                        |          | 85,877** |          | 97,372** |
+------------------------+----------+----------+----------+----------+

Liabilities not covered by budgetary resources are liabilities that are
not funded by direct budgetary authority in the current fiscal year and
result from the receipt of goods and services, or the occurrence of
eligible events, for which appropriations, revenues, or other financing
sources necessary to pay the liabilities have not yet been made
available through Congressional appropriation.

Total other intragovernmental liabilities of \$258 thousand as of
September 30, 2005 and \$397 thousand for FY 2004 represent workers'
compensation claims paid by the Department of Labor (DOL). The other
liabilities with the public of \$21,840 thousand for FY 2005 and the
\$20,406 thousand for FY 2004 consist of unfunded annual leave of
\$12,497 thousand and \$11,016 thousand and workers' compensation of
\$9,342 thousand and \$9,390 thousand, respectively. These represent
estimated future costs that have been actuarially determined and
regarded as a liability to the public because neither the costs nor
reimbursement have been recognized by DOL for the corresponding years.

##### Note 10---Debt Held by the Public {#note-10debt-held-by-the-public .AR-2004-Head-4}

Public Law 100-440 authorized NARA to "enter into a contract for
construction and related services for a new National Archives facility.
. . . The contract shall provide, by lease or installment payments
payable out of annual appropriations over a period not to exceed thirty
years."

In 1989, NARA entered into an installment sale and trust agreement with
the trustee, United States Trust Company of New York. Under terms of
this agreement, the trustee obtained financing for the construction of
the National Archives at College Park through the sale of certificates
representing proportionate shares of ownership in installment payments
to be made by NARA semiannually.

Although the full amount financed, \$301,702 thousand, was included
(scored) for U.S. budget estimation purposes in fiscal year 1989, NARA
requires an annual congressional appropriation to pay the redemption of
debt (principal) and interest costs of \$28,971 thousand annually. The
25-year semiannual payments of \$14,486 thousand began in 1994 and will
be completed in 2019.

**[Unpaid Principal Balance (in thousands)]{.underline}**

2005 Beginning Balance \$ 244,312

Less: FY 2005 debt repayment 8,488

FY 2005 reclassification [1,257]{.underline}

**Ending balance---Principal, at September 30, 2005** **234,567**

Accrued interest payable 1,692

Total debt at September 30, 2005 \$ [236,259]{.underline}

##### Note 11 -- Other Liabilities {#note-11-other-liabilities .AR-2004-Head-4}

Other liabilities as of September 30, 2005 and September 30, 2004,
consists of the following\
*(in thousands):*

  ------------------------------------- ------------------ ---------------
                                                           

                                        **2005**           **2004**

  Intragovernmental                                        

  Workers' compensation                 \$ 1,840           \$ 1,700

  Capital lease liability-current       398                527

  Capital lease liability-long term     1,216              1,614

  Liability for non-entity investments  ---                17,453

  Total intragovernmental               3,454              21,294

                                                           

  Workers' compensation                 9,342              9,390

  Accrued funded payroll and leave      7,243              6,165

  Unfunded leave                        12,497             11,016

  Advances from others                  424                282

  Deferred credits-fees                 ---                47

  **Total other liabilities**           **\$ 32,960**      **\$ 48,194**
  ------------------------------------- ------------------ ---------------

The liability of \$11,182 thousand for workers' compensation at
September 30, 2005, includes a current portion of \$1,840 thousand and
estimated future costs of \$9,342 thousand. Estimated future costs have
been actuarially determined and are regarded as a liability to the
public because neither the costs nor reimbursement have been recognized
by DOL. Workers' compensation is described in note 1N, Summary of
Significant Accounting Policies, and is included in Liabilities Not
Covered by Budgetary Resources, as described in note 9.

The September 30, 2004, liability for non-entity investments is
eliminated as of September 30, 2005. See note 2.

Accrued annual leave consists of employees' unpaid leave balances at
September 30, 2005, and reflects wage rates in effect at the time of
calculation. Accrued annual leave is described in note 1P, Summary of
Significant Accounting Policies, and is included in Liabilities Not
Covered by Budgetary Resources, as described in note 9.

##### Note 12 -- Leases  {#note-12-leases .AR-2004-Head-4}

NARA leases office space, vehicles, copiers, and equipment under annual
operating leases. These leases are cancelable or renewable on an annual
basis at the option of NARA.

The NARA Revolving Fund conducts the major part of its operation from
leased facilities. Most of the leases are cancelable operating leases.
These leases may be cancelled with four months' notice, or, in the case
of the new Atlanta lease, may be terminated for convenience by NARA,
under the provisions of the Federal Acquisitions Regulation.

Two leases are classified as capital leases. The capital leases
represent the liability for shelving leased through GSA at the Dayton
and Philadelphia records facilities. They expire in September 2007 and
December 2014, respectively. The schedule below shows the future minimum
payments under capital leases with the present value of the future
minimum lease payments (in thousands).

+-----------------------------------------+--------------+-------------+
| **CAPITAL LEASES --**NARA as lessee     | **2005**     | **2004**    |
+-----------------------------------------+--------------+-------------+
|                                         |              |             |
+-----------------------------------------+--------------+-------------+
| Summary of assets under capital lease:  |              |             |
+-----------------------------------------+--------------+-------------+
| > Shelving                              | \$ 5,284     | \$ 5,284    |
+-----------------------------------------+--------------+-------------+
| > Accumulated depreciation              | 2,434        | 2,169       |
+-----------------------------------------+--------------+-------------+
|                                         |              |             |
+-----------------------------------------+--------------+-------------+
| **Fiscal year**                         | **Future     |             |
|                                         | payments     |             |
|                                         | due**        |             |
+-----------------------------------------+--------------+-------------+
| 2005                                    | 646          | 664         |
+-----------------------------------------+--------------+-------------+
| 2006                                    | 344          | 646         |
+-----------------------------------------+--------------+-------------+
| 2007                                    | 146          | 344         |
+-----------------------------------------+--------------+-------------+
| 2008                                    | 146          | 146         |
+-----------------------------------------+--------------+-------------+
| 2009                                    | 146          | 146         |
+-----------------------------------------+--------------+-------------+
| After 2009                              | 597          | 743         |
+-----------------------------------------+--------------+-------------+
| Total future lease payments             | 2,025        | 2,689       |
+-----------------------------------------+--------------+-------------+
| Less: imputed interest                  | 411          | 548         |
+-----------------------------------------+--------------+-------------+
| **Net capital lease liability**         | **\$ 1,614** | **\$        |
|                                         |              | 2,141**     |
+-----------------------------------------+--------------+-------------+
|                                         |              |             |
+-----------------------------------------+--------------+-------------+
| Lease liabilities covered by budgetary  | \$ 1,614     | \$ 2,141    |
| resources                               |              |             |
+-----------------------------------------+--------------+-------------+
| (This amount is included in             |              |             |
| Intragovernmental Liabilities, Other.)  |              |             |
+-----------------------------------------+--------------+-------------+

NARA has non-cancelable operating leases with GSA which cover the
Pittsfield, MA, Dayton (Kingsridge), OH, and Lenexa, KS, records
facilities. The lease periods are January 5, 1994, through January 4,
2014, for the Pittsfield lease; September 1, 2004, through December 31,
2022, for the Dayton (Kingsridge) lease; and February 1, 2003, through
January 31, 2023, for the Lenexa lease. The leases include no renewal
options. The leases include escalation clauses for operating costs tied
to inflationary increases and for real estate taxes tied to tax
increases. (Note: The minimum future lease payments include estimated
escalations for operating costs and real estate taxes. These amounts
will be adjusted to the actual costs GSA incurs for operating costs and
real estate taxes for each lease.)

NARA has non-cancelable operating leases with public corporations which
cover the Perris, CA, and Atlanta, GA, records facilities. Both leases
have three 10-year options to renew after the initial period. The lease
period for Perris is December 1, 2004, through December 1, 2024, and for
Atlanta is October 1, 2004, through September 30, 2024. The leases
include escalation clauses for operating costs tied to inflationary
increases and for real estate taxes tied to tax increases. (Note: The
minimum future lease payments include estimated escalations for
operating costs and real estate taxes. These amounts will be adjusted to
the actual costs incurred for operating costs and real estate taxes for
each lease.)

NARA has a non-cancelable operating lease with Potomac Electric Power
Company for land that is leased for a parking lot at National Archives
II, College Park. The lease is for 20 years from May 2003 through April
2023 and contains a set schedule of payments due. The following schedule
shows the total future lease payments (in thousands).

  --------------------------------------------- ---------------------- --
  **OPERATING LEASES---**NARA as lessee                                

                                                                       

  **Fiscal year**                               **Future payments      
                                                due**                  

  2006                                          \$ 10,064              

  2007                                          10,148                 

  2008                                          10,236                 

  2009                                          10,398                 

  2010                                          10,585                 

  After 2010                                    128,033                

  **Total future lease payments**               **\$ 179,464**         
  --------------------------------------------- ---------------------- --

##### Note 13 -- Commitments and Contingencies {#note-13-commitments-and-contingencies .AR-2004-Head-4}

NARA has incurred claims in the normal course of business. As of
September 30, 2005, in the opinion of General Counsel, NARA has one
material outstanding claim. Counsel advised that a claim was recently
filed under the Federal Tort Claims Act, for which NARA's response is
due on November 20. Since a thorough analysis has not been completed,
there is a reasonable possibility of an unfavorable outcome, and the
range of loss for the matter is estimated not to exceed \$300 thousand.

##### Note 14 -- Intragovernmental Costs and Exchange Revenues by Program {#note-14-intragovernmental-costs-and-exchange-revenues-by-program .AR-2004-Head-4}

+-------------------------------------------------+----------+---------+
|                                                 | **2005** | *       |
|                                                 |          | *2004** |
+=================================================+==========+=========+
| **Records and archives-related services**       |          |         |
+-------------------------------------------------+----------+---------+
| Intragovernmental gross costs                   | \$       | \$      |
|                                                 | 50,771   | 54,427  |
+-------------------------------------------------+----------+---------+
| Less: Intragovernmental earned revenue          | \(267\)  | \(988\) |
+-------------------------------------------------+----------+---------+
| Intragovernmental net costs                     | 50,504   | 53,439  |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| Gross costs with the public                     | 229,536  | 187,285 |
+-------------------------------------------------+----------+---------+
| Less: Earned revenues from the public           | \(380\)  | ---     |
+-------------------------------------------------+----------+---------+
| Net costs with the public                       | 229,156  | 187,285 |
+-------------------------------------------------+----------+---------+
| **Total net records and archives-related        | **2      | **24    |
| services program costs**                        | 79,660** | 0,724** |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| **Trust and Gift Funds**                        |          |         |
+-------------------------------------------------+----------+---------+
| Intragovernmental gross costs                   | 1,848    | 2,133   |
+-------------------------------------------------+----------+---------+
| Less: Intragovernmental earned revenue          | \(551\)  | \(16\)  |
+-------------------------------------------------+----------+---------+
| Intragovernmental net costs                     | 1,297    | 2,117   |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| Gross costs with the public (excluding heritage | 13,426   | 14,191  |
| asset renovation)                               |          |         |
+-------------------------------------------------+----------+---------+
| Heritage asset renovation costs (note 14)       | 880      | 1,237   |
+-------------------------------------------------+----------+---------+
| Less: Earned revenues from the public           | (15,754) | (       |
|                                                 |          | 14,216) |
+-------------------------------------------------+----------+---------+
| Net costs with the public                       | (1,448)  | 1,212   |
+-------------------------------------------------+----------+---------+
| **Total net Trust and Gift Fund costs**         | *        | **      |
|                                                 | *(151)** | 3,329** |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| **Electronic records archives**                 |          |         |
+-------------------------------------------------+----------+---------+
| Intragovernmental gross costs                   | 3,736    | 4,311   |
+-------------------------------------------------+----------+---------+
| Less: Intragovernmental earned revenue          | ---      | ---     |
+-------------------------------------------------+----------+---------+
| Intragovernmental net costs                     | 3,736    | 4,311   |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| Gross costs with the public                     | 31,919   | 6,914   |
+-------------------------------------------------+----------+---------+
| Less: Earned revenues from the public           | ---      | ---     |
+-------------------------------------------------+----------+---------+
| Net costs with the public                       | 31,919   | 6,914   |
+-------------------------------------------------+----------+---------+
| **Total net Electronic Records Archives program | **       | **1     |
| costs**                                         | 35,655** | 1,225** |
+-------------------------------------------------+----------+---------+
| **National Historical Publications and Records  |          |         |
| Commission grants**                             |          |         |
+-------------------------------------------------+----------+---------+
| Intragovernmental gross costs                   | \$ 49    | \$ 248  |
+-------------------------------------------------+----------+---------+
| Less: Intragovernmental earned revenue          | ---      | ---     |
+-------------------------------------------------+----------+---------+
| Intragovernmental net costs                     | 49       | 248     |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| Gross costs with the public                     | 7,259    | 5,677   |
+-------------------------------------------------+----------+---------+
| Less: Earned revenues from the public           | ---      | ---     |
+-------------------------------------------------+----------+---------+
| Net costs with the public                       | 7,259    | 5,677   |
+-------------------------------------------------+----------+---------+
| **Total net National Historical Publications    | *        | **      |
| and Records**                                   | *7,308** | 5,925** |
|                                                 |          |         |
| **Commission grants program costs**             |          |         |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| **Archives facilities and Presidential          |          |         |
| libraries repairs and restoration**             |          |         |
+-------------------------------------------------+----------+---------+
| Intragovernmental gross costs                   | 231      | 1       |
+-------------------------------------------------+----------+---------+
| Less: Intragovernmental earned revenue          | ---      | \(485\) |
+-------------------------------------------------+----------+---------+
| Intragovernmental net costs                     | 231      | \(484\) |
+-------------------------------------------------+----------+---------+
|                                                 |          |         |
+-------------------------------------------------+----------+---------+
| Gross costs with the public (excluding heritage | 470      | 15      |
| asset renovation)                               |          |         |
+-------------------------------------------------+----------+---------+
| Heritage asset renovation costs                 | 10,390   | 13,488  |
+-------------------------------------------------+----------+---------+
| Less: Earned revenues from the public           | ---      | ---     |
+-------------------------------------------------+----------+---------+
| Net costs with the public                       | 10,860   | 13,503  |
+-------------------------------------------------+----------+---------+
| **Total net archives facilities and             | **       | **1     |
| Presidential libraries repairs**                | 11,091** | 3,019** |
|                                                 |          |         |
| **and restoration program costs**               |          |         |
+-------------------------------------------------+----------+---------+

  ------------------------------------------------- ------------ ------------
  **Revolving Fund records center storage and                    
  services**                                                     

  Intragovernmental gross costs                     73,004       64,177

  Less: Intragovernmental earned revenue            (131,030)    (125,691)

  Intragovernmental net costs                       (58,026)     (61,514)

                                                                 

  Gross costs with the public                       70,820       77,268

  Less: Earned revenues from the public             \(993\)      (3,548)

  Net costs with the public                         69,827       73,720

  **Total net Revolving Fund records center storage **11,801**   **12,206**
  and services**                                                 

  **Net Cost of Operations**                        **\$         **\$
                                                    345,364**    286,428**
  ------------------------------------------------- ------------ ------------

Gross costs are classified on the basis of the sources of goods and
services. Intragovernmental gross costs are expenses related to
purchases from a Federal entity. Intragovernmental earned revenue
represents exchange transactions between NARA and other Federal
entities.

"Gross Public costs" are expenses related to purchases from a
non-Federal entity, and the exchange revenue is classified as "with the
public" where the buyer of the goods or services is a non-Federal
entity.

##### Note 15---Cost of Stewardship PP&E  {#note-15cost-of-stewardship-ppe .AR-2004-Head-4}

Stewardship assets consist of heritage assets as defined in note 1K. No
financial value is or can be placed on these assets.

The Consolidated Statement of Net Cost includes the following costs as
of September 30, 2005, and September 30, 2004, to renovate heritage
assets *(in thousands):*

  ------------------- -------------------------- --------------------------- ----------------------------------- -------------------------- -----------------------------------
                      **2005**                                                                                   **2004**                   

  ***Asset***         ***[Gift]{.underline}***   ***[Trust]{.underline}***   ***[Appropriation]{.underline}***   ***[Gift]{.underline}***   ***[Appropriation]{.underline}***

  Archives I          \$ ---                     \$ ---                      4,530                               \$ ---                     \$ 9,795

  Roosevelt Library   251                                                    1,020                               54                         917

  Hoover                                                                     83                                                             

  Truman                                                                     391                                                            

  Eisenhower                                                                 245                                                            

  Kennedy                                                                    855                                                            

  Johnson                                                                    606                                                            

  Nixon                                                                      112                                                            

  Ford                                                                       196                                 1,183                      331

  Carter                                                                     1,048                                                          

  Reagan                                         629                         283                                                            2,446

  Bush                                                                       1,020                                                          

  **Total**           **\$ 251**                 **\$ 629**                  **\$ 10,390**                       **\$ 1,237**               **\$ 13,488**
  ------------------- -------------------------- --------------------------- ----------------------------------- -------------------------- -----------------------------------

For additional information about NARA's stewardship assets, see the
Required Supplementary Stewardship section of this report.

##### Note 16 -- Stewardship Assets Acquired Through Transfer, Donation, and Devise  {#note-16-stewardship-assets-acquired-through-transfer-donation-and-devise .AR-2004-Head-4}

NARA has ownership of heritage assets received through gifts of money,
security, or other property. The National Archives Gift Fund receives
and accepts, holds, and administers in accordance with the terms of the
donor, gifts or bequests for the benefit of the National Archives Gift
Fund activities or Presidential libraries. Additional information about
heritage assets is presented in the Required Supplementary Stewardship
Information, including the type and quantity of heritage assets added
during the fiscal year.

##### Note 17 -- Exchange Revenues {#note-17-exchange-revenues .AR-2004-Head-4}

[Records Administration Conference (RACO).]{.underline} Fees were
determined based on attendance levels, and costs in FY 2002 plus modest
inflationary increases. The fees are \$225 per registrant, \$800 per
Oceanic Suite exhibitor, and \$1,000 per Amphitheater exhibitor.

[Records Management Program Training Course.]{.underline} The basic per
day charge for records management training classes is \$150. This fee is
based on the salary and benefits for a full-time program administrator,
training costs for new trainers and additional training for existing
trainers, and direct overhead costs (i.e., reproduction of class
materials and preparation of training binders). In addition, this cost
includes the purchase and updating of teaching and training aids and
several computer software programs. This fee was based on a total Office
of Records Services annual program average cost of \$120,000 a year with
800 training days (\$120,000/800=\$150).

[Providing access to and assisting in reproducing foreign policy-related
records in the Nixon Presidential Materials Project.]{.underline} NARA
is reimbursed for the salary and benefits of two NARA archival staff
members providing assistance in reproducing foreign policy-related
records in the Nixon Presidential Materials Project. In addition, NARA
is reimbursed for reproduction costs at \$.15 per copy.

[Improvements for the joint National Park Service and National Archives
Visitor Center at the Roosevelt Library.]{.underline} The National Park
Service provided funds for their portion of the cost to cover
improvements to the park entrance at the new joint National Park Service
and National Archives Visitor Center at the Roosevelt Library during FY
2004. No funds were provided in FY 2005.

[Office Support for Air Force Declassification Office.]{.underline}
Patrick Air Force Base employees are working at NARA on declassification
of records. The Air Force provided funds for office support (wiring,
furnishings, etc.) for the declassification employees.

[Records Center Revolving Fund.]{.underline} The program office develops
transaction billing rates annually for the upcoming fiscal year. The
rates are developed to ensure full cost recovery for the delivery of
storage and services of records held by the fund for its customer
agencies. The rate development process is reviewed for reasonableness by
the revolving fund office and receives final approval from the
Archivist. Adjustments, changes, or additions to the rates are submitted
to the Archivist for approval before implementation.

##### Note 18 - Apportionment Categories of Obligations Incurred  {#note-18---apportionment-categories-of-obligations-incurred .AR-2004-Head-4}

OMB typically uses one of two categories to distribute budgetary
resources in a fund. Apportionments that are distributed by fiscal
quarters are classified as category A. Category B apportionments usually
distribute budgetary resources by activities, project, objects, or a
combination of these categories. NARA has received a Category B
apportionment in FY 2005 for Debt redemption, which was not separated
out in FY 2004. NARA's Revolving, Trust, and Gift Funds are exempt from
apportionment. The amounts of direct and reimbursable obligations are
displayed in the following chart (in thousands).

  ---------------- --------------- --------------- ------------- ---------- --------------- --------------- --------------- ---------------
  ***Obligations   ***Category                     ***Category              ***Exempt***                    ***Total***     
  incurred***      A***                            B***                                                                     

                   **2005**        **2004**        **2005**      **2004**   **2005**        **2004**        **2005**        **2004**

  Direct           \$319,872       \$338,567       \$8,488       \$ ---     \$30,152        \$ 11,001       \$358,512       \$349,568
  obligations                                                                                                               

  Reimbursable     652             2,851           ---           ---        134,861         137,653         135,513         140,504
  obligations                                                                                                               

  **Total**        **\$320,524**   **\$341,418**   **\$8,488**   **\$ ---** **\$165,013**   **\$148,654**   **\$494,025**   **\$490,072**
  ---------------- --------------- --------------- ------------- ---------- --------------- --------------- --------------- ---------------

##### Note 19---Adjustments to Beginning Balance of Statement of Net Position and Budgetary Resources {#note-19adjustments-to-beginning-balance-of-statement-of-net-position-and-budgetary-resources .AR-2004-Head-4}

The FY 2004 FACTS II submission contained an adjustment of \$66 thousand
to correctly state the fund balance with Treasury. This adjustment was
not included for FY 2004 financial statements due to its immateriality
and was identified as a "passed-on" audit adjustment in the management
rep­re­sen­tation letter. Differences exist between FY 2004 ending and FY
2005 beginning balances in the *Cumulative results of operations* on the
Statement of Net Position and the *Unobligated balance* on the Statement
of Budgetary Resources, which were adjusted to agree to the correct
balances in FACTS II.

##### Note 20---Legal Arrangements Affecting Use of Unobligated Balances {#note-20legal-arrangements-affecting-use-of-unobligated-balances .AR-2004-Head-4}

Public Law 108-199, January 23, 2004, Division J, Title V, Section 508,
authorized that up to 50 per­cent of NARA's unobligated balances
remaining available at the end of fiscal year 2004 to be avail­able
through the end of FY2005. During FY 2005, \$266 thousand was
transferred to 2005 appropriation.

##### Note 21 -- Explanation of Differences between the Statement of Budgetary Resources and the Budget of the United States Government {#note-21-explanation-of-differences-between-the-statement-of-budgetary-resources-and-the-budget-of-the-united-states-government .AR-2004-Head-4}

Statement of Federal Financial Accounting Standards No. 7, *Accounting
for Revenue and Other Financing Sources and Concepts for Reconciling
Budgetary and Financial Accounting,* calls for explanations of material
differences between budgetary resources available, status of those
resources and outlays as presented in the Statement of Budgetary
Resources (SBR) to the related actual balances published in the *Budget
of the United States Government* (President's Budget). However, the
President's Budget that will include FY 2005 actual budgetary execution
information has not yet been published. The President's Budget is
scheduled for publication in January 2006. Accordingly, information
required for such disclosure is not available at the time of preparation
of these financial statements.

Balances, reported in the FY 2004 SBR and the related President's
Budget, are shown in a table below for each major budget account in
which a difference exists. There are differences between the SBR and the
President's Budget that are attributable to differing requirements
imposed by Treasury and OMB. The differences are primarily due to
reporting requirement differences for expired and unexpired
appropriations between the Treasury guidance used to prepare the SBR and
the OMB guidance used to prepare the President's Budget. The SBR
includes both unexpired and expired appropriations, while the
President's Budget discloses only unexpired budgetary resources that are
available for new obligations.

  ------------------------------ -------------- ---------------- ------------------
                                 **FY 2004**                     *(in millions)*

                                 ***Statement   ***President's   ***Difference***
                                 of Budgetary   Budget***        
                                 Resources***                    

  **Records and Archives-Related                                 
  Services**                                                     

  Total budgetary resources      \$ 285         \$ 263           \$ 22

                                                                 

  Status of budgetary resources                                  

  Obligations incurred           278            261              17

  Unobligated                    2              2                ---
  balance---available                                            

  Unobligated                    5              ---              5
  balance---unavailable                                          

  Total status of budgetary      \$ 285         \$ 263           \$ 22
  resources                                                      

                                                                 

  Outlays                        \$ 244         \$244            \$ ---
  ------------------------------ -------------- ---------------- ------------------

##### Note 22 -- Explanation of the Relationship Between Liabilities Not Covered by Budgetary Resources on the Balance Sheet and the Change in Components Requiring or Generating Resources in Future Periods {#note-22-explanation-of-the-relationship-between-liabilities-not-covered-by-budgetary-resources-on-the-balance-sheet-and-the-change-in-components-requiring-or-generating-resources-in-future-periods .AR-2004-Head-4}

As of September 30, 2005, budgetary resources were not yet available to
fund certain liabilities reported on the balance sheet. For the balances
in question, most are long-term in nature where funding is generally
made available in the year the payments are anticipated*. Debt held by
the public* is not covered by budgetary resources. The remainder is
included as "Other liabilities" on the balance sheet and consist of
annual leave liability, unfunded workers' compensation, and unfunded
pension expenses. The increase in annual leave liability is shown as a
separate line item on the statement of financing. Changes to workers'
compensation and pension expenses are included in "Other components
requiring or generating resources in future periods."

##### Note 23 -- Dedicated Collections  {#note-23-dedicated-collections .AR-2004-Head-4}

Congress established the National Archives Trust Fund Board to receive
and administer gifts and bequests of money and other personal property
and to receive monies from the sale of repro­duction of historical
documents and publications for activities approved by the Board and in
the interest of NARA and the Presidential libraries. The members of the
Board are the Archivist of the United States, who serves as chairman;
the Secretary of the Treasury; and the Chairman of the National
Endowment for the Humanities. Membership on the board is not an office
within the meaning of the statutes of the United States.

The membership, functions, powers, and duties of the National Archives
Trust Fund Board shall be as prescribed in the National Archives Trust
Fund Board Act of July 9, 1941, as amended (44 U.S. C. 2301-2308). These
bylaws are adopted pursuant to the authority vested in the Board by 44
U.S. C. 2303 (3) to adopt bylaws, rules and regulations necessary for
the administration of its function under this chapter.

National Archives Trust Fund Board administers the National Archives
Trust Fund (NATF) and the National Archives Gift Fund (NAGF). NATF
finances and administers the reproduction or publication of records and
other historical materials for the benefit of NARA. NAGF accepts,
receives, holds, and administers, in accordance with the terms of the
donor, gifts, or bequests of money, securities, or other personal
property for the benefit of NARA activities. The major areas of activity
for these funds are Presidential libraries, the Office of Regional
Records Services, the National Historical Publications and Records
Commission, and the Charters of Freedom Project.

Cumulative results of operations is reported as restricted or
unrestricted. Restricted cumulative results of operations represents the
net of donations and disposition of donations to the Gift Fund in
accordance with terms of the donor. All donations and related expenses
to Presidential libraries, and donations and related expenses to
National Archives Gift Fund activities with specific requirements are
considered restricted; all others are reported as unrestricted.

Financial information for NATF and NAGF as of September 30, 2005, and
September 30, 2004, presented prior to intra-agency eliminations,
consists of the following *(in thousands):*

+----------------------------------+------+------+----------+-------+
|                                  | **20 |      | **2004** |       |
|                                  | 05** |      |          |       |
+==================================+======+======+==========+=======+
|                                  | NATF | NAGF | NATF     | NAGF  |
+----------------------------------+------+------+----------+-------+
| **Assets**                       |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Fund balance with Treasury       | \$   | \$   | \$ 901   | \$    |
|                                  | 1    | 95   |          | 139   |
|                                  | ,887 |      |          |       |
+----------------------------------+------+------+----------+-------+
| Cash                             | 48   | ---  | 36       | ---   |
+----------------------------------+------+------+----------+-------+
| Investments, net                 | 10   | 16   | 10,435   | 8,102 |
|                                  | ,209 | ,401 |          |       |
+----------------------------------+------+------+----------+-------+
| Accounts receivable              | 679  | ---  | 576      | ---   |
+----------------------------------+------+------+----------+-------+
| Inventory                        | 1    | ---  | 995      |       |
|                                  | ,104 |      |          |       |
+----------------------------------+------+------+----------+-------+
| Property, plant, and equipment   | 209  | ---  | 737      | ---   |
+----------------------------------+------+------+----------+-------+
| Prepaid postage                  | ---  | ---  | 40       | ---   |
+----------------------------------+------+------+----------+-------+
| > **Total assets**               | 14   | 16   | 13,720   | 8,241 |
|                                  | ,136 | ,496 |          |       |
+----------------------------------+------+------+----------+-------+
|                                  |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| **Liabilities**                  |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Accounts payable                 | 798  | 4    | 788      | 30    |
+----------------------------------+------+------+----------+-------+
| Other liabilities                | 1    | ---  | 933      | ---   |
|                                  | ,087 |      |          |       |
+----------------------------------+------+------+----------+-------+
| **Total liabilities**            | 1    | 4    | 1,721    | 30    |
|                                  | ,885 |      |          |       |
+----------------------------------+------+------+----------+-------+
|                                  |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| **Net position**                 |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Cumulative results of operations |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Restricted                       | ---  | 13   | ---      | 7,830 |
|                                  |      | ,015 |          |       |
+----------------------------------+------+------+----------+-------+
| Unrestricted                     | ---  | 3    | ---      | 381   |
|                                  |      | ,477 |          |       |
+----------------------------------+------+------+----------+-------+
| **Total net position**           | 12   | 16   | 11,999   | 8,211 |
|                                  | ,251 | ,492 |          |       |
+----------------------------------+------+------+----------+-------+
|                                  |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| > **Total liabilities and net    | \$   | \$   | \$       | \$    |
| > position**                     | 14   | 16   | 13,720   | 8,241 |
|                                  | ,136 | ,496 |          |       |
+----------------------------------+------+------+----------+-------+
|                                  |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Net position, beginning of       | \$   | \$   | \$       | 9,962 |
| fiscal year                      | 11   | 8    | 12,890   |       |
|                                  | ,933 | ,211 |          |       |
+----------------------------------+------+------+----------+-------+
| Change in net position           |      |      |          |       |
+----------------------------------+------+------+----------+-------+
| Non-exchange revenue             | 1    | 578  | 19       | ---   |
+----------------------------------+------+------+----------+-------+
| Donations                        | ---  | 9    | ---      | 3,571 |
|                                  |      | ,366 |          |       |
+----------------------------------+------+------+----------+-------+
| Imputed financing from costs     | 469  | \(   | 441      | ---   |
| absorbed by others               |      | 30\) |          |       |
+----------------------------------+------+------+----------+-------+
| Total financing sources          | 470  | 9    | 460      | 3,571 |
|                                  |      | ,914 |          |       |
+----------------------------------+------+------+----------+-------+
| Net cost of operations           | 152  | 1    | 1,351    | 5,322 |
|                                  |      | ,633 |          |       |
+----------------------------------+------+------+----------+-------+
| **Net position, end of fiscal    | **\$ | **\$ | **\$     | **\$  |
| year**                           | 12,2 | 16,4 | 11,999** | 8,    |
|                                  | 51** | 92** |          | 211** |
+----------------------------------+------+------+----------+-------+

##### Note 24 -- Restatements  {#note-24-restatements .AR-2004-Head-4}

NARA has restated the FY 2004 financial statements in accordance with
SFFAS No. 21. The restatement reflects adjustments to the internal use
software balance estimates, developed in the process of compiling the
CFO Act financial statements for the first time in FY 2004. Additional
research during fiscal year 2005 determined that the FY 2004 internal
use software balance was overstated.

*The restatement resulted in the changes to the Balance Sheet and the
Statement of Changes in Net Position for fiscal year 2004 as follows (in
thousands):*

  ----------------------------------------- --------------- --------------
                                            ***As Reported  ***Restated\
                                            in FY 2004***   FY 2004***

  General property, plant, and equipment,   \$328,327       \$314,617
  net                                                       

  Cumulative results of operations          104,777         91,067

  Net costs, FY 2004 activity               286,341         286,428
  ----------------------------------------- --------------- --------------

The overall effect is to reduce assets and cumulative results of
operations by \$13,710 thousand for FY 2004 financial statements, where
\$13,623 thousand is attributable to activity prior to and impacting the
FY 2004 beginning balance, and \$87 thousand of FY 2004 activity
originally capitalized is expensed.

## Required Supplementary Stewardship Information {#required-supplementary-stewardship-information .AR-2004-Head-2}

### Heritage Assets Schedule {#heritage-assets-schedule .AR-2004-Head-3}

For the Year Ended September 30, 2005

+------------------------+-----------+-----------+--------+-----------+
|                        | **        | ***Add    | ***    | **        |
|                        | *Balance\ | itions*** | Deleti | *Balance\ |
|                        | 9         |           | ons*** | 9         |
|                        | -30-04*** |           |        | -30-05*** |
+------------------------+-----------+-----------+--------+-----------+
| **Record types**       |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Artifacts (# of      |           |           |        |           |
| items)**               |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Presidential libraries | 538,614   | 3,442     |        | 542,056   |
+------------------------+-----------+-----------+--------+-----------+
| Office of Regional     | 20        |           |        | 20        |
| Records Services       |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Washington, DC         | 1,491     |           | \(3\)  | 1,488     |
+------------------------+-----------+-----------+--------+-----------+
| **Total**              | 540,125   | 3,442     | \(3\)  | 543,564   |
+------------------------+-----------+-----------+--------+-----------+
|                        |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Traditional          |           |           |        |           |
| holdings**             |           |           |        |           |
|                        |           |           |        |           |
| **(in cubic feet)**    |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Presidential libraries | 238,111   |           | (      | 231,571   |
|                        |           |           | 6,540) |           |
+------------------------+-----------+-----------+--------+-----------+
| Office of Regional     | 633,650   | 43,702    |        | 677,352   |
| Records Services       |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Washington, DC         | 2,221,395 | 24,253    |        | 2,245,648 |
+------------------------+-----------+-----------+--------+-----------+
| Affiliated archives    | 7,198     | 5,227     |        | 12,425    |
+------------------------+-----------+-----------+--------+-----------+
| **Total**              | 3,100,354 | 73,182    | (      | 3,166,996 |
|                        |           |           | 6,540) |           |
+------------------------+-----------+-----------+--------+-----------+
|                        |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Electronic           |           |           |        |           |
| holdings**             |           |           |        |           |
|                        |           |           |        |           |
| **(in logical data     |           |           |        |           |
| records)**             |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Presidential libraries | 3         |           |        | 3         |
|                        | 5,308,040 |           |        | 5,308,040 |
+------------------------+-----------+-----------+--------+-----------+
| Washington, DC         | 5,59      | 2,47      |        | 8,07      |
|                        | 3,834,700 | 9,249,711 |        | 3,084,411 |
+------------------------+-----------+-----------+--------+-----------+
| **Total**              | 5,62      | 2,47      | ---    | 8,10      |
|                        | 9,142,740 | 9,249,711 |        | 8,392,451 |
+------------------------+-----------+-----------+--------+-----------+
|                        |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Non-record types**   |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Buildings and        |           |           |        |           |
| structures**           |           |           |        |           |
|                        |           |           |        |           |
| **(in units)**         |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| Presidential libraries | 17        | 1         |        | 18        |
+------------------------+-----------+-----------+--------+-----------+
| Archives I             | 1         |           |        | 1         |
+------------------------+-----------+-----------+--------+-----------+
| Multiuse buildings     | 1         | 1         |        | 2         |
+------------------------+-----------+-----------+--------+-----------+
| **Total**              | **19**    | **2**     | *      | **21**    |
|                        |           |           | *---** |           |
+------------------------+-----------+-----------+--------+-----------+
|                        |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+
| **Land in pieces,      | **2**     |           |        | **2**     |
| multiuse**             |           |           |        |           |
+------------------------+-----------+-----------+--------+-----------+

As discussed in note 1K, NARA defines heritage assets as possessing
significant educa­tional, cultural or historic characteristics. All
Presidential libraries and the National Archives Building are classified
as heritage assets, as are all the holdings which include artifacts,
traditional holdings, and electronic holdings.

Record types:

-   *Artifacts* are objects whose archival value lies in the items
    themselves rather than in any information recorded upon them. The
    unit of measure for artifacts is the artifact.

-   *Traditional textual (paper)* are records on paper whose
    intellectual content is primarily textual. The unit of measure for
    traditional textual is cubic feet.

-   *Traditional nontextual (all media)* category includes all records
    not classified as textual (paper), artifacts, or electronic records.
    It includes still pictures on paper and film; posters; architectural
    drawings, charts, maps, and other cartographic records on paper;
    textual records on microfilm; as well as motion pictures, video,
    sound recordings, and other clearly nontextual records. The unit of
    measure for traditional nontextual is cubic feet.

-   *Electronic records* are records on electronic storage media. The
    unit of measure for electronic records is the logical data record.

The Archivist determines, through the scheduling and appraisal process,
whether records have sufficient administrative, legal, research or other
value to warrant their continued preservation by the Government and for
how long (44 USC 3303a). When in the public interest, the Archivist may
accept Government records for historical preservation (44 USC 2107) and
accept non-Government papers and other historical materials for deposit
(44 U.S.C. 2111). The Archivist also administers Presidential and Vice
Presidential records in accordance with 44 U.S.C. Chapter 22. Methods of
acquisition and disposal are according to the guidelines established
through the legal authority granted to NARA. Information about the
condition and deferred maintenance information is contained in the
Deferred Maintenance section of the Required Supplementary Information.

Multiuse heritage assets reported above comprise two buildings and two
pieces of land, which are sites for current or future multi-use regional
archival facility. These are also included in PP&E on the Balance Sheet
(note 7).

During the year, significant repairs and renovations, in the amount of
\$11,270 thousand, were made to the heritage asset buildings. Of that
amount, \$880 thousand came from gifts. These costs are broken out
separately on the Statement of Net Cost as "Heritage asset renovation
costs."

## Required Supplementary Information {#required-supplementary-information .AR-2004-Head-2}

### Schedule of Intragovernmental Amounts {#schedule-of-intragovernmental-amounts .AR-2004-Head-3}

*For the Year Ended September 30, 2005*

*(in thousands)\
*

Intragovernmental Assets

  --------------------------- ------------ ----------------- -------------- ------------
  **Trading Partner**         **Fund       **Investments**   **Accounts     **Prepaid
                              balance with                   receivable**   expenses**
                              Treasury**                                    

  Department of the Treasury  \$ 167,231   \$ 14,740         \$ 20          \$ ---

  General Services                                           ---            ---
  Administration                                                            

  Department of Defense                                      8,778          ---

  Department of Labor                                        1              ---

  National Science Foundation                                ---            ---

  Other                                                      382            ---

  **Total**                   **\$         **\$ 14,740**     **\$ 9,181**   **\$ ---**
                              167,231**                                     
  --------------------------- ------------ ----------------- -------------- ------------

*Intragovernmental Liabilities*

  ---------------------------------------------- ------------ -----------
  **Trading Partner**                            **Accounts   **Other**
                                                 Payable**    

  Department of the Treasury                     \$ 119       \$ ---

  General Services Administration                607          1,614

  Department of Defense                          289          ---

  Department of Labor                            73           1,840

  National Science Foundation                    1,751        ---

  Other                                          527          ---

  **Total**                                      **\$ 3,366** **\$
                                                              3,454**
  ---------------------------------------------- ------------ -----------

## Schedule of Intragovernmental Amounts {#schedule-of-intragovernmental-amounts-1 .AR-2004-Head-2}

*For the Year Ended September 30, 2004*

*(in thousands)\
*

Intragovernmental Assets

  --------------------------- ------------ ----------------- -------------- ------------
  **Trading Partner**         **Fund       **Investments**   **Accounts     **Prepaid
                              balance with                   receivable**   expenses**
                              Treasury**                                    

  Department of the Treasury  \$ 185,207   \$ 31,205         \$ 2,752       \$ ---

  Department of Defense                                      6,352          ---

  Department of Justice                                      1,152          ---

  U.S. Courts                                                687            ---

  Department of Health and                                   465            ---
  Human Services                                                            

  U.S. Postal Service                                        160            40

  Other                                                      2,583          ---

  **Total**                   **\$         **\$ 31,205**     **\$ 14,151**  **\$ 40**
                              185,207**                                     
  --------------------------- ------------ ----------------- -------------- ------------

*Intragovernmental Liabilities*

  -------------------------------------------- ------------- -------------
  **Trading Partner**                          **Accounts    **Other**
                                               Payable**     

  Department of the Treasury                   \$ ---        \$ 17,453

  General Services Administration              1,715         2,141

  Department of Defense                        549           ---

  Department of Labor                          171           1,303

  Office of Personnel Management               271           ---

  Department of Health and Human Services      68            ---

  Other                                        633           397

  **Total**                                    **\$ 3,407**  **\$ 21,294**
  -------------------------------------------- ------------- -------------

###  Schedule of Budgetary Resources by Major Budget Accounts {#schedule-of-budgetary-resources-by-major-budget-accounts .AR-2004-Head-3}

***(in thousands)***

  ------------------------------------------------------------------------------
  **Fiscal Year 2005**                                              
  --------------------------------- ------------------ ------------ ------------
                                    ***Records and     ***Gift      ***Trust
                                    Archives-Related   Fund***      Fund***
                                    Services***                     

  **Budgetary Resources**                                           

  Budget authority                                                  

  Appropriations received           \$ 266,945         \$ 10,215    \$ ---

  Unobligated balance, beginning of 5,376              7,935        9,583
  period                                                            

  Spending authority from                                           
  offsetting collections                                            

  Earned                                                            

  Collected                         9,677              ---          16,209

  Receivable from Federal sources   \(295\)            \(46\)       106

  Change in unfilled customer                                       
  orders                                                            

  Advance received                  ---                ---          96

  Without advance from Federal      ---                ---          \(2\)
  sources                                                           

  Subtotal                          9,382              \(46\)       16,409

  Recoveries of prior year          13,969             92           1.552
  obligations                                                       

  Permanently not available         (14,338)           ---          ---

  **Total Budgetary Resources**     **281,334**        **18,196**   **27,544**

  **Status of Budgetary Resources**                                 

  Obligations incurred                                              

  Direct                            265,547            13,573       16,579

  Reimbursable                      652                ---          ---

  Subtotal                          266,199            13,573       16,579

  Unobligated balance                                               

  Apportioned                       667                ---          ---

  Exempt from apportionment         ---                4,623        10,965

  Unobligated balances not yet      14,468             ---          ---
  available                                                         

  **Total status of budgetary       **281,334**        **18,196**   **27,544**
  resources**                                                       

  **Relationship of Obligations to                                  
  Outlays**                                                         

  Obligated balance, net, beginning 68,052             260          1,724
  of period                                                         

  Obligated balance, net, end of                                    
  period                                                            

  Accounts receivable               \(108\)            ---          \(674\)

  Unfilled customer orders from                                     
  Federal sources                                                   

  Undelivered orders                29,639             ---          807

  Accounts payable                  17,649             4            1,046

  Outlays                                                           

  Disbursements                     273,397            13,783       15,467

  Collections                       (9,677)            ---          (16,305)

  **Total outlays**                 **\$ 263,720**     **\$         **\$ (838)**
                                                       13,783**     
  ------------------------------------------------------------------------------

+------------+---------------+-----------------+-------------+-------+
| **Fiscal   |               |                 |             |       |
| Year       |               |                 |             |       |
| 2005**     |               |                 |             |       |
+============+===============+=================+=============+=======+
| ***        | ***National   | ***Archives     | ***Records  | *     |
| Electronic | Historical    | Facilities and\ | Center and\ | **Tot |
| Records    | Publications  | Presidential    | Storage     | al*** |
| A          | and Records   | Libraries***    | Services*** |       |
| rchives*** | Commission    |                 |             |       |
|            | Grants***     | ***Repairs and  |             |       |
|            |               | Restorations*** |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| \$ 35,914  | \$ 5,000      | \$ 13,432       | \$ ---      | \$    |
|            |               |                 |             | 33    |
|            |               |                 |             | 1,506 |
+------------+---------------+-----------------+-------------+-------+
| 6,689      | 1,679         | 18,153          | 13,091      | 6     |
|            |               |                 |             | 2,506 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | 2               | 142,365     | 16    |
|            |               |                 |             | 8,253 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 | (5,175)     | (5    |
|            |               |                 |             | ,410) |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | ---         | ---   |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | \(768\)     | \(    |
|            |               |                 |             | 770\) |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | 2               | 136,422     | 16    |
|            |               |                 |             | 2,169 |
+------------+---------------+-----------------+-------------+-------+
| 876        | 251           | 4,819           | 5,771       | 2     |
|            |               |                 |             | 7,330 |
+------------+---------------+-----------------+-------------+-------+
| \(287\)    | \(40\)        | \(108\)         | ---         | (14   |
|            |               |                 |             | ,773) |
+------------+---------------+-----------------+-------------+-------+
| **43,192** | **6,890**     | **36,298**      | **155,284** | *     |
|            |               |                 |             | *568, |
|            |               |                 |             | 738** |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 39,508     | 6,399         | 16,906          | ---         | 35    |
|            |               |                 |             | 8,512 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | 134,861     | 13    |
|            |               |                 |             | 5,513 |
+------------+---------------+-----------------+-------------+-------+
| 39,508     | 6,399         | 16,906          | 134,861     | 49    |
|            |               |                 |             | 4,025 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 3,490      | 491           | 19,392          | ---         | 2     |
|            |               |                 |             | 4,040 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | 20,423      | 3     |
|            |               |                 |             | 6,011 |
+------------+---------------+-----------------+-------------+-------+
| 194        | ---           | ---             | ---         | 1     |
|            |               |                 |             | 4,662 |
+------------+---------------+-----------------+-------------+-------+
| **43,192** | **6,890**     | **36,298**      | **155,284** | *     |
|            |               |                 |             | *568, |
|            |               |                 |             | 738** |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 32,155     | 12,240        | 20,902          | 5,829       | 14    |
|            |               |                 |             | 1,162 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | (9,153)     | (9    |
|            |               |                 |             | ,935) |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 33,247     | 10,715        | 5,236           | 3,680       | 8     |
|            |               |                 |             | 3,324 |
+------------+---------------+-----------------+-------------+-------+
| 5,600      | 268           | 888             | 8,461       | 3     |
|            |               |                 |             | 3,916 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 31,940     | 7,405         | 26,865          | 137,873     | 50    |
|            |               |                 |             | 6,730 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | \(2\)           | (142,365)   | (168  |
|            |               |                 |             | ,349) |
+------------+---------------+-----------------+-------------+-------+
| **\$       | **\$ 7,405**  | **\$ 26,863**   | **\$        | **\$  |
| 31,940**   |               |                 | (4,492)**   | 338,  |
|            |               |                 |             | 381** |
+------------+---------------+-----------------+-------------+-------+

###  Schedule of Budgetary Resources by Major Budget Accounts {#schedule-of-budgetary-resources-by-major-budget-accounts-1 .AR-2004-Head-3}

**(*in thousands)***

  ------------------------------------------------------------------------------
  **Fiscal Year 2004**                                              
  --------------------------------- ------------------ ------------ ------------
                                    ***Records and     ***Gift      ***Trust
                                    Archives-Related   Fund***      Fund***
                                    Services***                     

  **Budgetary Resources**                                           

  Budget authority                                                  

  Appropriations received           \$ 256,700         \$ 3,818     \$ 1

  Unobligated balance, beginning of 4,686              8,011        10,451
  period                                                            

  Spending authority from                                           
  offsetting collections                                            

  Earned                                                            

  Collected                         15,809             1            13,777

  Receivable from Federal sources   71                 10           95

  Change in unfilled customer                                       
  orders                                                            

  Advance received                  ---                ---          \(88\)

  Without advance from Federal      ---                ---          2
  sources                                                           

  Subtotal                          15,880             11           13,786

  Recoveries of prior year          14,971             15           301
  obligations                                                       

  Permanently not available         (12,060)           ---          ---

  **Total Budgetary Resources**     **280,177**        **11,855**   **24,539**

  **Status of Budgetary Resources**                                 

  Obligations incurred                                              

  Direct                            272,434            3,921        14,891

  Reimbursable                      2,365              ---          ---

  Subtotal                          274,799            3,921        14,891

  Unobligated balance                                               

  Apportioned                       608                ---          ---

  Exempt from apportionment         ---                7,934        9,648

  Unobligated balances not yet      4,770              ---          ---
  available                                                         

  **Total status of budgetary       **280,177**        **11,855**   **24,539**
  resources**                                                       

  **Relationship of Obligations to                                  
  Outlays**                                                         

  Obligated balance, net, beginning 61,212             4,298        793
  of period                                                         

  Obligated balance, net, end of                                    
  period                                                            

  Accounts receivable               \(403\)            \(46\)       \(568\)

  Unfilled customer orders from     ---                ---          \(2\)
  Federal sources                                                   

  Undelivered orders                50,550             276          1,305

  Accounts payable                  17,905             30           987

  Outlays                                                           

  Disbursements                     252,919            7,933        13,562

  Collections                       (15,809)           \(1\)        (13,689)

  **Total outlays**                 **\$ 237,110**     **\$ 7,932** **\$ (127)**
  ------------------------------------------------------------------------------

+------------+---------------+-----------------+-------------+-------+
| **Fiscal   |               |                 |             |       |
| Year       |               |                 |             |       |
| 2004**     |               |                 |             |       |
+============+===============+=================+=============+=======+
| ***        | ***National   | ***Archives     | ***Records  | *     |
| Electronic | Historical    | Facilities and\ | Center and\ | **Tot |
| Records    | Publications  | Presidential    | Storage     | al*** |
| A          | and Records   | Libraries***    | Services*** |       |
| rchives*** | Commission    |                 |             |       |
|            | Grants***     | ***Repairs and  |             |       |
|            |               | Restorations*** |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| \$ 35,914  | \$ 10,000     | \$ 13,708       | \$ ---      | \$    |
|            |               |                 |             | 32    |
|            |               |                 |             | 0,141 |
+------------+---------------+-----------------+-------------+-------+
| 5,696      | 1,012         | 17,269          | 13,399      | 6     |
|            |               |                 |             | 0,524 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | 13            | 485             | 130,888     | 16    |
|            |               |                 |             | 0,973 |
+------------+---------------+-----------------+-------------+-------+
| ---        | \(4\)         | ---             | 2,236       | 2,408 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | ---         | \     |
|            |               |                 |             | (88\) |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | ---         | 2     |
+------------+---------------+-----------------+-------------+-------+
| 0          | 9             | 485             | 133,124     | 16    |
|            |               |                 |             | 3,295 |
+------------+---------------+-----------------+-------------+-------+
| 435        | 280           | 873             | 4,221       | 2     |
|            |               |                 |             | 1,096 |
+------------+---------------+-----------------+-------------+-------+
| \(212\)    | \(59\)        | \(81\)          | ---         | (12   |
|            |               |                 |             | ,412) |
+------------+---------------+-----------------+-------------+-------+
| **41,833** | **11,242**    | **32,254**      | **150,744** | *     |
|            |               |                 |             | *552, |
|            |               |                 |             | 644** |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 35,144     | 9,563         | 13,616          | ---         | 34    |
|            |               |                 |             | 9,569 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | 485             | 137,653     | 14    |
|            |               |                 |             | 0,503 |
+------------+---------------+-----------------+-------------+-------+
| 35,144     | 9,563         | 14,101          | 137,653     | 49    |
|            |               |                 |             | 0,072 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 6,689      | 1,679         | 18,153          | ---         | 2     |
|            |               |                 |             | 7,129 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | 13,091      | 3     |
|            |               |                 |             | 0,673 |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | --              | ---         | 4,770 |
+------------+---------------+-----------------+-------------+-------+
| **41,833** | **11,242**    | **32,254**      | **150,744** | *     |
|            |               |                 |             | *552, |
|            |               |                 |             | 644** |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 7,631      | 9,552         | 55,865          | 2,815       | 14    |
|            |               |                 |             | 2,166 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | (14,328)    | (15   |
|            |               |                 |             | ,345) |
+------------+---------------+-----------------+-------------+-------+
| ---        | ---           | ---             | \(768\)     | \(    |
|            |               |                 |             | 770\) |
+------------+---------------+-----------------+-------------+-------+
| 30,040     | 11,876        | 15,428          | 10,004      | 11    |
|            |               |                 |             | 9,479 |
+------------+---------------+-----------------+-------------+-------+
| 2,117      | 364           | 5,474           | 10,921      | 3     |
|            |               |                 |             | 7,798 |
+------------+---------------+-----------------+-------------+-------+
|            |               |                 |             |       |
+------------+---------------+-----------------+-------------+-------+
| 10,184     | 6,598         | 48,192          | 128,181     | 46    |
|            |               |                 |             | 7,569 |
+------------+---------------+-----------------+-------------+-------+
| ---        | \(13\)        | \(485\)         | (130,888)   | (160  |
|            |               |                 |             | ,885) |
+------------+---------------+-----------------+-------------+-------+
| **\$       | **\$ 6,585**  | **\$ 47,707**   | **\$        | **\$  |
| 10,184**   |               |                 | (2,707)**   | 306,  |
|            |               |                 |             | 684** |
+------------+---------------+-----------------+-------------+-------+

### Segment Information---Revolving Fund {#segment-informationrevolving-fund .AR-2004-Head-3}

NARA's Revolving Fund provides storage and related services of Federal
records still in agency custody and other instrumentalities of the
Federal Government. The related services comprise retrieving,
transferring, re-filing, and disposing of the stored Federal records.
The fund's major customers (organizations that account for more than 15
percent of the Fund's revenues) are the Department of Defense and the
Internal Revenue Service.

The following summarizes revolving fund financial information as of
September 30, 2005, and September 30, 2004 *(in thousands)*:

  -------------------------------- ------------------------- ------------------------
                                   **[2005]{.underline}**    **[2004]{.underline}**

  Fund balance                     \$ 23,413                 \$ 18,921

  Accounts receivable              9,200                     14,371

  Property, plant, and equipment   21,048                    22,915

  Other assets                     1,029                     1,014

  Liabilities due and payable for  2,984                     5,487
  goods\                                                     
  and services received                                      

  Other liabilities                16,395                    15,114

  Cumulative results of operations \$ 35,311                 \$ 36,620
  -------------------------------- ------------------------- ------------------------

The following summarizes, for the period ended September 30, 2005 and
September 30, 2004, the full cost of services provided, the related
exchange revenues, and the excess of full costs over exchange revenues
for the revolving fund *(in thousands):*

  ------------ ------------------------------------- ------------------ ------------
  **Records                                          **2005**           **2004**
  center                                                                
  storage and                                                           
  services**                                                            

               Intragovernmental gross costs         \$ 73,004          \$ 64,177

               Less: Intragovernmental earned        (136,153)          (129,574)
               revenue                                                  

               Intragovernmental net costs           (63,149)           (65,397)

                                                                        

               Gross costs with the public           70,820             77,268

               Less: Earned revenues from the public \(993\)            (3,547)

               Net costs with the public             69,827             73,721

                                                                        

  **Total net                                        \$ 6,678           \$ 8,324
  records                                                               
  center                                                                
  storage and                                                           
  services                                                              
  program                                                               
  costs**                                                               
  ------------ ------------------------------------- ------------------ ------------

The segment information is presented prior to intra-agency eliminations
and will, therefore, not agree to the Statement of Net Cost for the
Revolving Fund, which is shown on a consolidated basis.

### Deferred Maintenance {#deferred-maintenance .AR-2004-Head-3}

NARA owns, builds, purchases, and manages assets including the National
Archives Building, the National Archives at College Park, MD, the
Southeast regional archives building in Altanta, GA, the Presidential
libraries, and land for a future regional archive building. All of these
support NARA's stated mission. Recent major renovations have been
completed at the National Archives Building and many of the Presidential
libraries.

NARA uses the condition assessment method to determine the condition of
fixed assets and determine deferred maintenance. The condition
assessment surveys (CAS) at NARA are conducted by a professional
architectural firm, which performs Building Condition Reports (BCR) for
all NARA owned facilities on a periodic basis. During FY 2005 NARA
formalized the BCR process and established a five-year schedule so that
all buildings will have a BCR completed on a five-year cycle. Facility
managers will continue to perform condition assessments annually to
identify critical needs between BCRs. Maintenance required to bring
fixed assets to acceptable condition, which is not scheduled or
performed when needed, is included in the deferred maintenance estimate
below.

Due to the scope, nature, and variety of the assets and the nature of
the deferred maintenance, exact estimates are very difficult to
determine. Current estimates include correcting deficiencies that relate
to the safety or the protection of valuable materials, modifications to
provide safety and public accessibility to the facility, and electrical
upgrades to prevent loss of critical data. The estimates generally
exclude vehicles and other categories of operating equipment.

At the end of fiscal year 2005, 10 locations are included for the
deferred maintenance estimate including eight Presidential libraries The
included projects are either a part of major renovations or have been
identified from a current BCR. Also included is a roof repair at a
Presidential library that was identified before the current BCR schedule
and is a critical maintenance need.

+------------------------+-------+-----------------+------------------+
| *[                     | *[    | *Acceptable*    | *Estimated*      |
| Category]{.underline}* | Metho |                 |                  |
|                        | d]{.u | *[Asset         | *[Deferred       |
|                        | nderl | Conditio        | Maintenan        |
|                        | ine}* | n]{.underline}* | ce]{.underline}* |
+------------------------+-------+-----------------+------------------+
| Heritage assets --     | CAS   | Good            | \$27 to 28       |
| Buildings              |       |                 | million          |
+------------------------+-------+-----------------+------------------+
| Multiuse assets --     | CAS   | Good            | \$1.9 to 2       |
| Buildings              |       |                 | million          |
+------------------------+-------+-----------------+------------------+

NARA categorizes facilities and equipment according to condition using
terms such as those shown below:

-   *Good.* Facilities/equipment condition meets established maintenance
    standards, operates efficiently, and has a normal life expectancy.
    Scheduled maintenance should be sufficient to maintain the current
    condition. There is no deferred maintenance on building, and
    equipment in good condition.

-   *Fair.* Facilities/equipment condition meets minimum standards but
    requires additional maintenance or repairs to prevent further
    deterioration, increase operating efficiency and to achieve normal
    life expectancy.

-   *Poor/Unsatisfactory.* Facilities/equipment condition does not meet
    most maintenance standards and requires frequent repairs to prevent
    accelerated deterioration and provide a minimal level of operating
    function.

In addition, NARA is a custodian for numerous holdings as detailed in
the Required Supplementary Stewardship Information. As custodian, NARA
makes tremendous efforts to ensure the continued preservation of these
holdings. For example, the condition of electronic records is either
stabilized or not stabilized. Stabilized is defined as follows: the
physical file containing one or more logical data records has been
identified and its location, format and internal structure(s) specified;
logical data records within the file are physically readable and
retrievable; the media, the physical files written on them, and the
logical data records they contain are managed to ensure continuing
accessibility; and an audit trail is maintained to document record
integrity. Files that are not stabilized are in the pipeline, awaiting
processing, unreadable for technical reasons, or unreadable because the
media are deteriorating. Currently, over 97 percent of the records have
been stabilized, and ongoing work continues to stabilize the rest to the
extent possible.

# [Appendix A]{.smallcaps} INSPECTOR GENERAL'S ASSESSMENT OF MANAGEMENT CHALLENGES FACING NARA {#appendix-a-inspector-generals-assessment-of-management-challenges-facing-nara .AR-Part-Title}

Under the authority of the Inspector General Act, the NARA OIG conducts
and super­vises independent audits, investigations, and other reviews to
promote economy, efficiency, and effectiveness and prevent and detect
fraud, waste, and mismanagement. To fulfill that mission and help NARA
achieve its strategic goals, we have aligned our programs to focus on
areas that we believe represent the agency's most significant
challenges. We have identified those areas as NARA's top 10 management
challenges. Under these are the related audits, investigations, and
reviews that were performed in FY 2005.

1.  **Electronic Records Archives (ERA)**

NARA and the Lockheed-Martin Corporation, is building an Electronic
Records Archives (ERA) with the goal of ensuring the preservation of,
and access to, Government electronic records. The pace of technological
progress makes formats in which the records are stored obsolete within a
few years, threatening to make them inaccessible even if they are
preserved intact.

ERA is to be a comprehensive, systematic, and dynamic means of
preserving virtually any kind of electronic record, free from dependence
on any specific hardware or soft­ware. The ERA system is targeted to make
it possible for Federal agencies to transfer any type or format of
electronic record to the National Archives so that citizens can locate
records of interest and the National Archives can deliver these
materials in a usable format.

NARA's challenge is to build a system that will accommodate past,
present, and future formats of electronic records. To mitigate the risks
associated with development and acqui­sition of an advanced electronic
archival system, Congress directed NARA to re­assess the ERA project
schedule based on estimates of the amount of work and re­sources required
to complete each task. Beginning on October 1, 2002, NARA was required
to submit to Congress a quarterly report on the status of the project's
schedule, budget, and expenditures as measured against a reported
baseline; a prioritization of project risks and their mitigation
efforts; and corrective actions taken to manage identi­fied schedule
slip­page, cost overruns, or quality problems that might occur. By
Septem­ber 2007, NARA plans to have initial operating capability for ERA
with incre­mental improve­ments that will eventually result in full system
capability. The challenge will be to deliver and main­tain a functional
ERA system that will preserve electronic records for as long as needed.

**2. Electronic Records Management (ERM)**

NARA directs one of 24 Government-wide initiatives, the Electronic
Records Manage­ment (ERM) initiative. The ERM initiative will provide
guidance to agencies in managing and transferring to NARA, in an
increasing variety of data types and formats, their permanent electronic
records. For many years, Federal records were created on paper and
stored in files and boxes with NARA. Now, electronic records are created
by Gov­ern­ment agencies at an astounding rate, challenging NARA to find
ways to manage and preserve them. NARA is a key player in e-Government
and managing partner for the e-Government ERM initiative. E-Government
is part of President Bush's management agenda aimed at making it easier
for citizens to obtain high-quality service from the Federal Government
while reducing the cost of delivering those services. NARA enlisted
partner agencies, developed a detailed plan for accom­plishing its
objectives, and issued the first guidance on transferring e-mail records
to NARA.

NARA and its Government partners are challenged with trying to figure
out how to manage electronic records in an electronic manner, to make
ERM and e-Government work more effectively.

**3. Improving Records Management**

NARA's mission is to ensure that Federal officials and the American
public have ready access to essential evidence. One way NARA addresses
its mission is by assisting agencies with the management of their
records from the time that those records are created. Without effective
records management, records needed to document citizens' rights, actions
for which Federal officials are responsible, and the historical
experience of our nation will be at risk of loss, deterioration, or
destruction. According to NARA's Strategic Plan, to minimize these
risks, NARA will work in active partnership with the Administration,
Federal officials, the Congress, and Federal courts to help them create,
identify, appropriately schedule, and manage record material. This will
enable the Govern­ment to preserve records as long as they are needed to
protect rights, ensure accountability, document the national experience,
and to destroy records as soon as it is practical to do so when they are
no longer needed.

NARA must work with Federal agencies to make scheduling, appraisal, and
accessioning processes more effective and timely. The challenge is how
best to accomplish this com­ponent of our overall mission and identify
and react to agencies with critical records management needs.

***4.* Information Technology Security**

The authenticity and reliability of our electronic records and
information technology systems are only as good as our IT security
infrastructure. Each year, the risks and challenges to IT security
continue to evolve. NARA must ensure the security of its data and
systems or risk undermining the agency's credibility and ability to
carry out its mission.

IT security becomes even more critical as NARA increases its visibility
through the implementation of e-Government initiatives that expand
online services to the public. The more NARA increases electronic access
to its services and records, the more vulnerable the agency is to
intrusions, viruses, privacy violations, fraud, and other abuses of its
systems. The risk related to IT security is endemic to all Federal
agencies and has been identified by the GAO as one of its top 10
high-risk challenges.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2005:*         |
+-----------------------------------------------------------------------+
| -   Audit of NARA's Intrusion Detection System                        |
+-----------------------------------------------------------------------+
| -   Review of NARA's Information Technology Investment Management     |
|     Decide Process Accomplished for the Novell Software Upgrade       |
|     Project                                                           |
+-----------------------------------------------------------------------+
| -   NARA's Investment Management Decide Process                       |
+-----------------------------------------------------------------------+
| -   Review of Proposed Modification of the Information Technology     |
|     Support Services Task Order Security Program Requirements         |
+-----------------------------------------------------------------------+
| -   Server Vulnerability                                              |
+-----------------------------------------------------------------------+
| -   Review of the Management and Operations of NARA's Help Desk       |
+-----------------------------------------------------------------------+
| -   Review of NARA's Acquisition of Storage Management Software       |
+-----------------------------------------------------------------------+

**5. Expanding Public Access to Records**

In a democracy, the records of its archives belong to its citizens.
NARA's challenge is to more aggressively inform and educate our
customers about the services we offer and the essential evidence to
which we can provide access. NARA envisions expanding oppor­tunities for
individual citizens, educational institutions, and Federal agencies to
make use of those records. New technologies are making it easier to
reach all users in their homes, schools, and workplaces. NARA must
increase partnerships with Government agencies at all levels and with
universities and corporate communities to take advantage of new means to
bring the holdings of the National Archives to people no matter where
they are located.

Mastering this challenge requires that NARA listen to its customers and
improves access to records in ways that meet customer needs and customer
service standards. This will require NARA to enhance activities such as
creating comprehensive catalogs and indexes for our holdings so that
users can find the records they need; make documentary mate­rial
available through the Internet; improve reference service; and help
Presidents at the beginning of their administrations plan for public
access to their records in Presidential libraries.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2005:*         |
+-----------------------------------------------------------------------+
| -   Evaluation of NARA's Processes for Handling Personal Information  |
|     Collected from the Public                                         |
+-----------------------------------------------------------------------+

**6. Meeting Storage Needs of Growing Quantities of Records**

NARA-promulgated regulation, 33CFR, Part 1228, "Disposition of Federal
Records," Subpart K, "Facility Standards for Records Storage
Facilities," requires all facilities that house Federal records to meet
defined physical and environmental requirements by FY 2009.

Specifically, in January 2000, NARA revised the regulations for public
and private facilities that store Federal records to (1) improve the
environment and safeguards for Federal records by incorporating stricter
facility standards and advances in sprinkler technology, (2) reflect
building design measures that may prevent or minimize fire and water
damage to records, and (3) ensure uniform facility standards for all
records cen­ters, both public and private, that store and protect Federal
records. NARA's chal­lenge is to ensure compliance with these regulations
internally as well as by other agencies that house Federal records.

**7. Preservation Needs of Records**

The Archivist has identified preservation as a material weakness under
the FMFIA reporting process. NARA cannot provide public access to
records to support researchers' needs unless it can preserve them for as
long as needed. Providing public access to records for future
gener­a­tions requires that NARA assess the preservation needs of the
records, provide storage that retards deterioration and treat or
duplicate and reformat records at high risk for deterioration. NARA must
preserve paper records and motion pictures, audio record­ings,
videotapes, still photography, aerial photography, microfilm and other
microforms, and maps and charts in a variety of formats in our holdings.
NARA must ensure that its risk management program adequately identifies
and addresses all records needing preservation in a timely manner.

NARA holdings grow older daily and are deteriorating. NARA is challenged
to address the following questions: Are we effectively identifying those
holdings that are both most at risk and most important in terms of
priority? Who makes this determination, upon what criteria is it based,
and is it being soundly and properly applied? Are resources and the
technology available and sufficient to meet the preservation needs of
these records?

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2005:*         |
+-----------------------------------------------------------------------+
| -   Evaluation of NARA's Preservation Program                         |
+-----------------------------------------------------------------------+

**8. Improving Financial Management**

By inclusion under the Accountability of Tax Dollars Act of 2002, NARA
is required to prepare audited financial statements in compliance with
prescribed standards, subject to independent audit.

The Federal Government has a stewardship obligation to prevent fraud,
waste, and abuse; to use tax dollars appropriately; and to ensure
financial accountability to the President, the Congress, and the
American people. Timely, accurate, and useful financial information is
essential for making day-to-day operating decisions; managing the
Gov­ernment's operations more efficiently, effectively, and economically;
meeting the goals of the Federal financial management reform legislation
(Chief Financial Officers Act); supporting results-oriented management
approaches; and ensuring accountability on an ongoing basis.

In identifying improved financial performance as one of its five
Government-wide initiatives, the President's Management Agenda (PMA)
stated that a clean financial audit is a basic prescription for any
well-managed organization and recognized that "most federal agencies
that obtain clean audits only do so after making extraordinary,
labor-intensive assaults on financial records." Further, the PMA stated
that without sound internal controls and accurate and timely financial
information, it is not possible to ac­com­plish the President's agenda to
secure the best performance and highest measure of accountability for
the American people.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2005:*         |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Records Center Revolving Fund FY   |
|     2003 Financial Statements                                         |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Trust Fund FY 2003 Financial       |
|     Statements                                                        |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Gift Fund FY 2003 Financial        |
|     Statements                                                        |
+-----------------------------------------------------------------------+
| -   Evaluation of NARA's FY 2004 Management Control Program           |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives and Records Administration         |
|     Consolidated Financial Statements FY 2004                         |
+-----------------------------------------------------------------------+
| -   Audit of the Travel Card Program                                  |
+-----------------------------------------------------------------------+
| -   Prompt Payment Audit                                              |
+-----------------------------------------------------------------------+
| -   Review of NHPRC Grants                                            |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Trust Representational Fund        |
+-----------------------------------------------------------------------+

**9. Physical Security**

NARA must maintain adequate levels of physical security over our
facilities and hold­ings to ensure the safety and integrity of persons
and holdings within our facilities. This is especially critical in light
of the new realities that face this nation, post--September 11, and the
risks that our holdings may be pilfered by persons for a variety of
motivations, defaced, or destroyed by fire or other natural disasters.

The Archivist has identified security of collections as a material
weakness under the Financial Manager's Financial Integrity Act (FMFIA)
reporting process. Our facilities hold records that serve to document
the rights of citizens, the actions of Government officials, and the
national experience. They also hold a new class of records identified as
"Records of Concern" (ROC). These are records that could be useful to
individuals or entities in the planning and conduct of hostile acts
against this nation.

Three primary challenges facing NARA are to (1) provide quality service
to our custo­mers while instituting reasonable internal controls to
prevent theft and to maintain documentation for supporting recovery of
disenfranchised holdings and subsequent prosecution of those who would
steal from NARA; (2) take every reasonable, appropriate measure possible
to limit access to ROC and act expeditiously in coordinating efforts
with appropriate law enforcement entities as warranted and appropriate;
and (3) protect and safeguard our facilities and the employees who work
in them and to mitigate the potential for damage and destruction through
both natural and deliberately precipitated acts.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2005:*         |
+-----------------------------------------------------------------------+
| -   NARA's Ability to Inspect Employee's Personal Property            |
+-----------------------------------------------------------------------+

> **10. Strengthening Human Capital**

The GAO has identified human capital as a Government-wide high risk.
Strategic human capital management should be the centerpiece of any
serious change management initia­tive or any effort to transform the
cultures of Government agencies. Serious human capital shortfalls,
however, continue to erode the ability of many agencies, and threaten
the ability of others, to economically, efficiently, and effectively
perform their missions. According to GAO, the major problem is the lack
of a consistent strategic approach to marshaling, managing, and
maintaining the human capital needed to maximize Govern­ment performance
and ensure its accountability. People are an agency's most important
organizational asset. An organization's people define its character,
affect its capacity to perform, and represent the knowledge base of the
organization. Agencies can improve their performance by the way that
they treat and manage their people and building commitment and
accountability through involving and empowering employees.

NARA's challenge is to adequately assess its human capital needs in
order to effectively recruit, retain, and train people with the
technological understanding and content knowledge that NARA needs for
future success. According to NARA's Strategic Plan, NARA must include
preparation for training the leaders of tomorrow in its plans. Further,
NARA must help those current staff members possessing traditional
archival training to add skills necessary for working with new
technologies. In addition, NARA must replace valuable staff members lost
to retirement with others able to deal with records in the electronic
information age. Moreover, NARA must partner with univer­sities and
professional associations to determine educational requirements for the
21st century.

# ![](media/image42.wmf){width="0.8in" height="0.8in"}[Appendix B]{.smallcaps} FEDERAL MANAGERS' FINANCIAL INTEGRITY ACT REPORT {#appendix-b-federal-managers-financial-integrity-act-report .AR-Part-Title}

[Appendix C\
]{.smallcaps}**PROGRESS ON 2004 AUDIT RECOMMENDATIONS**

## The NARA Inspector General (OIG) contracted with Clifton Gunderson, LLP (CG) to audit financial statements as well as internal controls and operations. CG performed an audit of the consolidated financial statements of the National Archives and Records Administration as of September 30, 2004. In its final report dated November 1, 2004, CG reported certain matters involving the internal control and its operation that were considered to be reportable conditions, four of these were considered to be material weaknesses. CG made 39 recommendations to correct these conditions. (The 2004 Internal Auditor's Report may be found on page 97 of NARA's 2004 Performance and Accountability Report.) {#the-nara-inspector-general-oig-contracted-with-clifton-gunderson-llp-cg-to-audit-financial-statements-as-well-as-internal-controls-and-operations.-cg-performed-an-audit-of-the-consolidated-financial-statements-of-the-national-archives-and-records-administration-as-of-september-30-2004.-in-its-final-report-dated-november-1-2004-cg-reported-certain-matters-involving-the-internal-control-and-its-operation-that-were-considered-to-be-reportable-conditions-four-of-these-were-considered-to-be-material-weaknesses.-cg-made-39-recommendations-to-correct-these-conditions.-the-2004-internal-auditors-report-may-be-found-on-page-97-of-naras-2004-performance-and-accountability-report. .AR-2004-Head-2}

## Area 1: Financial Reporting {#area-1-financial-reporting .AR-2004-Head-2}

CG noted this area a material weakness and made six recommendations
related to financial statement preparation; timely recording,
reconciliation, and analysis; general ledger system setup and posting
model definitions; and integrated financial management system. They are:

1.  Ensure that adequate controls such as protecting cells on
    spreadsheets, limiting access to spreadsheets to prevent inadvertent
    changes, and control of the changes made to the spreadsheets are
    implemented while a spreadsheet-based system is used in gathering
    and analyzing financial statements data.

2.  Establish written policies and procedures to formalize plans,
    methods, and procedures to guide the financial statement preparation
    and reporting process.

3.  Prepare and analyze monthly reconciliations of subsidiary and
    summary account balances and external reports. Consider a "formal
    closing" of all accounts at an interim date(s), which will reduce
    the level of accounting activity and analysis required at year-end.
    This "formal closing" entails ensuring that all transactions are
    recorded in the proper period through the month-end.

4.  Ensure that upgrades to the financial management systems comply with
    the posting model definitions in the U.S. Standard General Ledger
    (USSGL).

5.  Develop standard procedures to identify Federal and non-Federal
    transactions if the general ledger (GL) system does not have this
    capability. Also, correcting the vendor files may enable NARA to
    automate this process. Lastly, if NARA continues to per­form the
    identification manually, an audit trail needs to be maintained and a
    supervisory review will need to be performed.

6.  Evaluate the functional requirements to integrate the financial
    reporting, billing systems, property and equipment, and a cost
    system with the GL system and assess the degree of integration
    necessary to have a single, unified financial system.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy numbers 1 through 5 above.

## Area 2: Property, Plant, and Equipment (PPE) {#area-2-property-plant-and-equipment-ppe .AR-2004-Head-2}

CG noted this area a material weakness and made six recommendations
related to accounting for PPE and deferred maintenance. They are:

7.  Continue to identify assets that need to be capitalized rather than
    expensed.

8.  Develop standard report formats for all project mangers of software
    development projects and construction projects that track monthly
    payments, monitor progress, and report completion.

9.  Ensure adequate supporting documentation is maintained for
    acquisitions and dispositions.

10. Develop and implement monthly reconciliation procedures for all
    assets including heritage assets.

11. Record all assets in the property management system.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy all of the above.

## Area 3: Investment in Non-Federal Securities {#area-3-investment-in-non-federal-securities .AR-2004-Head-2}

CG noted this area a material weakness and made two recommendations.
They are:

12. Record investments that are held to maturity at amortized costs and
    investments that are for sale at fair market value.

13. Record the budgetary entry related to the purchase of investments in
    non-Federal securities.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy number 12 above.

## Area 4: Information Technology (IT)  {#area-4-information-technology-it .AR-2004-Head-2}

CG noted this area a material weakness and made 21 recommendations
related to software development and change controls, entity-wide
security program, controls to protect its information; and contingency
planning. They are:

14. Implement controls to ensure that the "Project/Task Validation and
    Approval" is completed for modifications and maintenance changes
    according to the NARA-Wide Configuration Management Template.

15. Obtain proper approvals before moving NARANET into the production
    environment.

16. Follow required NARANET rollout processes and procedures prior to
    movement to production.

17. Conduct certification evaluations on all IT resources owned or
    operated on behalf of NARA, in accordance with NARA policy,
    including externally hosted applications.

18. Formally define, communicate, and document data ownership
    responsibilities and procedures for all major business and general
    support systems, including its financial data hosted at the service
    provider.

19. Revise Plan of Actions and Milestones (POA&M) process to comply with
    OMB guidance, including the incorporation of all IT findings from
    all sources.

20. Develop inter-connection security agreements with all external
    vendors (including Federal agencies) hosting financial systems used
    by NARA.

21. Review password configurations on all servers used for network
    authentication and ensure that temporary passwords cannot be used
    more than once, and only issue unique temporary passwords to users.
    Ensure that NARA has imple­men­ted specifications for password usage
    established by NIST in Federal Information Processing Standards
    Publication 112, *Password Usage.*

22. Review all NARANET user accounts to identify all inactive or unused
    accounts and remove as necessary. This procedure should also be
    incorporated within the user recertification process. Also, all
    NARANET user accounts should be supported by documented approved
    access requests.

23. Enforce Directive 804, and ensure that users are recertified. In
    addition, NARA should comply with its standard operating procedures
    and ensure that NARA­NET user accounts are disabled after 24 hours of
    the user's separation and are deleted after 10 days of the
    disabling.

24. Use network address translation (NAT) to hide all internal IP
    addresses and to filter traffic entering NARA's internal network for
    improved security. Written justifications should be provided for the
    exclusion of those machines from the requirement of NAT. Ensure all
    internal IP addresses pass through internal DNS servers.

25. Update the NARA network topology to include all external connections
    and network devices. Ensure that all access points are securely
    configured to prevent unauthorized network access.

26. Install cameras outside of the computer room to monitor access to
    and from all entry points. Security guards should investigate all
    unusual access activity. The use of a key to override badge reader
    access should result in alarms at the guard station and be
    immediately investigated.

27. Review all individuals with access to the computer room, determine
    if access in needed to perform their job responsibilities, and
    remove any unnecessary access. Also, management should develop
    policies and procedures to recertify access granted.

28. Establish and enforce policies and procedures regarding server
    configuration, operation, and maintenance. Develop and compare
    server baseline config­u­ra­tions (for each operating system platform).
    These policies and procedures allow administrators to have a strict
    set of requirements to follow in place no matter who administers the
    servers. NARA Internet--connected server's systems logs should be
    reviewed to determine if unauthorized access has occurred as a
    result of the weaknesses in the server configurations.

29. On a regular basis, as part of the user recertification process,
    management should review all Comprehensive Human Resources
    Information System (CHRIS) users to ensure that they still require
    access to CHRIS, their permissions are reasonable based upon their
    position responsibilities, and poten­tially conflicting roles within
    other applications (i.e., ETAMS) are removed.

30. Formally identify and prioritize all critical data and operations on
    its major applications and the resources needed to recover them if
    there is a major interruption or disaster. Ensure that emergency
    processing priorities are established to assist in managing disaster
    situations more effectively for the network. In addition, establish
    emergency processing priorities that will help manage disaster
    situations more effectively for the network.

31. Address the disaster recovery plan at other NARA locations.

32. Conduct regular disaster recovery testing of all major applications
    and general support systems (including interconnectivity with
    external service providers) that consider varying scenario types.
    Develop a *lessons learned* document from each test with corrective
    actions to prevent a reoccurrence in future tests.

33. The memorandum of understanding (MOU) should be revised to
    incorporate measures to be taken by NARA and the service provider
    \[Pegasys\] to recover any lost connectivity between the two
    entities.

34. Replace the "wet pipe" sprinkler system with a "dry pipe" sprinkler
    or single-interlock pre-action sprinkler system that does not store
    liquids directly above computer equipment.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy numbers 14 through 20, 22 through 25, 27, 29, and 30
through 34 above. Partial documentation has also been provided for
recommendations 26 and 30.

## Area 5: Payroll {#area-5-payroll .AR-2004-Head-2}

CG noted this area a reportable condition and made four recommendations.
They are:

35. Performing a monthly reconciliation of leave balances reported in
    the time and attendance (T&A) report and the leave and earnings
    statement (LES).

36. Enforce the policy of signing and dating the Supervisor Time and
    Attendance Certification Report.

37. Record credit time earned on Electronic Time and Attendance
    Management System (ETAMS).

38. Enforce the policy of signing or initialing of the time and
    attendance log by the employee and the supervisor.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy numbers 35 through 38 above.

## Area 6: Cost Allocation Methodology {#area-6-cost-allocation-methodology .AR-2004-Head-2}

CG noted this area a reportable condition and made one recommendation.
It is:

39. Establish a formal and comprehensive cost-allocation methodology and
    ensure that related policies and procedures such as the
    semiautomated allocation pro­cess policy are updated.

Through September 30, 2005, NARA has provided documentation to the OIG
and CG to satisfy this recommendation.