NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

2004 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 Strategic Goals* 5

*Our Mission* 5

*Our Organizational Structure* 6

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

Performance Highlights 15

*Spotlight on e-Government Services* 15

*Spotlight on NARA Public Programs* 18

*Performance Overview* 23

Financial Highlights 31

*Sources of Funds* 31

*Uses of Funds by Function* 32

*Audit Results* 33

*Financial Statement Highlights* 33

*Debt Management* 35

*Erroneous Payments Management* 36

Systems, Controls, and Legal Compliance 37

*Financial Managers' Financial Integrity Act* 37

*Federal Information Security Management Act* 38

*Federal Financial Management Improvement Act* 38

*Prompt Payment Act* 39

*Inspector General Act* 39

Facilities 40

Copies of This Report 42

Other Web Pages of Interest 42

**Part 2 Performance Section**

Measuring and Reporting Our Performance 43

FY 2004 Performance by Strategic Goal 44

*Strategic Goal 1: Records Management* 44

*Strategic Goal 2: Electronic Records* 51

*Strategic Goal 3: Access* 57

*Strategic Goal 4: Space and Preservation* 69

*Strategic Goal 5: Infrastructure* 74

FY 2004 Program Evaluations 81

*Strategic Goal 1: Records Management* 81

*Strategic Goal 2: Electronic Records* 81

*Strategic Goal 3: Access* 81

*Strategic Goal 4: Space and Preservation* 82

*Strategic Goal 5: Infrastructure* 83

*Multi-Goal Evaluations* 84

Status of NARA Records Management Initiatives 85

Federal Records Management Evaluations 88

*NOAA / National Marine Fisheries* 88

*Treasury / Office of Foreign Assets Control* 88

*U.S. Army* 88

Performance Assessment Rating Tool (PART) Summary 90

*Records Services Program* 90

Definitions 91

**Part 3 Financial Section**

A Message from the Chief Financial Officer 95

Auditor's Reports 96

*Inspector General's Summary* 96

*Independent Auditor's Report* 97

*Management Response to Auditor's Reports* 120

Financial Statements and Additional Information 123

*Limitations of the Financial Statements* 123

*Principal Statements* 124

*Supplementary Information* 145

*Supplementary Stewardship Information* 150

**Appendixes**

A Inspector General's Assessment of Management Challenges\
Facing NARA 153

B Federal Managers' Financial Integrity Act Report 159

# [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}

![](media/image1.jpeg){width="1.3388888888888888in"
height="1.7152777777777777in"}

The National Archives and Records Administration (NARA) is our nation's
record keeper. Every day we work to preserve and provide access to the
records of our Government, whether those records are the Declaration of
Independence, service records of military veterans, electronic cable
files from the State Depart­ment, 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.

Although we are a small agency, we are vital to continuity of
Government, homeland security, public trust, and national morale.

-   We give legal authority to emergency actions of the President and
    executive agencies through publication in the *Federal Register*.

-   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 are developing 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 are preserving and processing the records of the 9/11 Commission
    for the Government officials who need to consult them as they
    consider the Commission's recommendations.

-   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 such a critical role in our Government, and
never before have the stakes been 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 2004.
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 August 3, 2004, NARA announced the award of design contracts for our
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 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 is 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 the 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 non-conformances are not deemed
material.

NARA, through its internal control evaluation, identified two material
weaknesses in previous fiscal years---computer security in FY 2000 and
collections security in FY 2001. We have made substantial progress this
year in eliminating both material weaknesses. These actions 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, which every day
is protecting, preserving, and making available the essential evidence
of our Government.

![](media/image2.png){width="1.8854166666666667in"
height="0.7916666666666666in"}

John W. Carlin

Archivist of the United States

November 1, 2004

# Introduction {#introduction .AR-2004-Head-1-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, 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,
2003, to September 30, 2004.

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

This report describes NARA's performance measures, results, and
accountability processes for FY 2004. 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_us/reports/reports.html.*

This report has four major parts:

-   **Management's Discussion and Analysis**

    Look here for our agency-wide performance and use of resources in
    FY 2004. You also will find information on the strategies we use to
    achieve our goals and the management challenges and external factors
    that affect our performance.

-   **Performance Section**

    Look here for details on our performance by strategic goal and
    long-range performance target in FY 2004. This section covers the
    targets we were aiming for, 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 2004, 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 and other materials to aid in understanding
    this report.

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

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

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

-   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}

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}

NARA's strategic goals are set forth in our Strategic Plan, which we
revised and updated in 2003. This update 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.

-   NARA strategically manages and aligns staff, technology, and
    processes to achieve our mission.

## Our Organizational Structure {#our-organizational-structure .AR-2004-Head-2-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 *inquire@nara.gov*, commenting on regulations at the
Government-wide site *regulations.gov*, downloading milestone documents
at *ourdocuments.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. An organizational chart, which provides an overview of NARA's
structure, follows.

# 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}

September 11, 2001, has forever changed our Government. Security,
continuity of operations, critical infrastructure, and emergency
preparedness are now more important to every Federal agency. How NARA
deals with these issues affects the entire Govern­ment and beyond. 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 homeland security and all of its intergovernmental
electronic commu­ni­ca­tion chal­lenges. In addition, NARA provided the 9/11
Commission with thousands of documents that were crucial to the
Commission's work, and 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. Whether publishing the *Federal
Register*, protecting the vital records assets of Federal agencies
nationwide, fulfilling the records requests of America's veterans,
solving the challenge of preserving 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.

Never before has NARA played such an indispensable role in our
Government, and never before have the stakes been higher for our
success. 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 a 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 is often dependent
    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 34 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 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 for a moment to the specific challenges NARA faces:

***Security.*** We store more than 27 million cubic feet of Federal
rec­ords in 34 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 plan for a variety of natural and man-made emergencies that might
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 face
three primary challenges in this area:

-   We must provide quality service to our customers while instituting
    reasonable internal controls to prevent theft and to 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 appropriate measure possible to limit
    access to records of importance for national security and act
    expeditiously in coordinating efforts with law enforcement entities
    as appropriate.

-   We must protect and safeguard our facilities themselves and 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 have a
comprehensive plan to address our security weaknesses that includes
improvements to (1) the way our staff work, through training

and changes to secur­ity policies; (2) the way records are han­dled, such
as iso­lating high-risk rec­ords and im­prov­ing records loca­tion con­trols;
and (3) the way security is im­ple­men­ted, from the mon­i­tor­ing of rec­ords
use by re­search­ers to the cre­a­tion of more visible deter­rents to crime
at our facili­ties. If we can imple­ment this plan, we believe we will
re­solve our mate­rial weakness and greatly enhance security for our
rec­ords, our staff, and our custo­mers.

***Facilities.*** Our 34 facilities also 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.*** To serve our Government and public
customers well, we must have 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 need 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 out of the
"back office," onto the Internet, and into the home and office. 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 the citi­zen's ever-growing
expectations for quality service.

Although NARA does have a material weakness in computer security, we
have made significant progress in resolving the weakness. Policies and
procedures for NARA's computer security program have been issued, and a
computer security awareness program for employees is in place. Our
firewall and intrusion detection system have been enhanced, and we
updated the contingency plans for all of our IT systems. We still need
to complete testing of all of the contingency plans and develop and test
an overall disaster recovery plan for the entire IT infrastructure.
Completion of these activities should resolve the material weakness.

***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.
![](media/image3.jpeg){width="2.0625in" height="1.5409722222222222in"}

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 lead the provision of 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.

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.

***Records Access.*** The Federal Government protects hundreds of
millions of classified docu­ments at great expense. As noted in the
Information Security Oversight Office's (ISOO) most recent report to the
Presi­dent, "many senior offi­cials will candid­ly acknowl­edge that the
gover­nment class­i­fies too much infor­mation." ISOO also noted that "one
of the principal proce­dures for main­tain­ing the effec­tive­ness of the
class­ifi­ca­tion system is to re­move from the safe­guard­ing sys­tem
infor­ma­tion that no longer re­quires pro­tection in the inter­est of
na­tion­al secur­i­ty." 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.

Federal agencies have a deadline of December 31, 2009, to review and
resolve 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 prior to 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.

![](media/image4.jpeg){width="4.177952755905512in"
height="3.7098425196850395in"}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 could not be
sure that all referred documents had been acted on because we would 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 is
estab­lishing an inter­agency referral center to provide a systematic
ap­proach to the referral process.

Classified records in our Presidential libraries also 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 Ronald 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 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 brought to Wash­ington for review by
equity-holding agencies. So far this project has scanned nearly 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 and on may make it impossible for us to
comply with the Executive
order.![](media/image5.jpeg){width="2.3944444444444444in"
height="1.53125in"}

***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 that
they don't even realize it; 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 in turn
that we 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 have launched several
projects and are collaborating on several others that 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.

-   Electronic Records Management Presidential E-Government
    Initiative---one of the Administration's initiatives to ensure the
    success of e-Government by providing guidance and tools for the
    effective management of electronic records.

-   Electronic Records Policy Working Group---a subgroup of the
    Interagency Committee on Government Information, which NARA chairs,
    that is developing recommendations for Government-wide policies that
    will strengthen records management.

-   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 the
full version of this report at
*www.archives.gov/about_us/reports/annual_report.html.*

# Performance Highlights {#performance-highlights .AR-2004-Head-1-Char}

## Spotlight on e-Government Services {#spotlight-on-e-government-services .AR-2004-Head-2-Char}

As spelled out in our Strategic Plan, NARA preserves and makes
accessible Gov­ern­ment records that document the rights of our citizens,
the actions of our Federal offi­cials, and our na­tion­al
experience.![](media/image6.jpeg){width="2.270138888888889in"
height="1.6145833333333333in"}

For many years, this has involved preserving those pieces of parchment
and paper that have been created over more than two centuries of our
nation's government. Now, however, we face the challenge of preserving
the records of the present and future, which are over­whelm­ingly
electronic.

Our response to this challenge is the Electronic Records Archives (ERA).
It will capture Govern­ment electronic records, save them indefinitely,
and make them accessible in the future with whatever computer hardware
and software is in use.

ERA will give us the means to preserve and provide sustained access to
Federal Government electronic records of continuing value and to provide
economical storage and retrieval services for electronic records that
remain under the legal control of the originating agencies. The goal of
the ERA program is to enable NARA to preserve and provide access to any
type of electronic record created anywhere in the Federal Government.
ERA will provide a comprehensive, systematic, and dynamic means of
preserving and providing continuing access to authentic electronic
records over time.

In 2004, we reached a significant milestone in our efforts to build ERA
to manage and preserve the growing mass of electronic records. On August
3, we selected two national contractors to participate in a one-year
competition to develop the best design for ERA. In 2005, we will choose
one of them to build it.

The development of ERA will have countless ramifications for other parts
of govern­ment, private businesses and institutions, and indi­vid­uals. For
example, digital military personnel files for Americans serving in our
armed forces today must be preserved for decades to chron­icle their
military careers and ensure their veterans' rights and benefits. ERA is
our solution to preserve those records. In addition, NARA is developing
new standards to speed the transfer of electronic records to ERA, and
ERA will stimulate advances in technology that will be available to the
whole Government. Finally, we have worked closely with many partners to
ensure that this technology is scaleable for use by state and local
governments, the private sector, and other institutions with a need to
preserve electronic records over time.

The ERA announcement was one of our most important steps toward managing
and preserving electronic records, but it represents only a part of our
efforts to redesign the way the Government manages and preserves its
electronic records.

We made real progress in the past year in implementing the goals set
forth in 2003 in *Strategic Directions for Federal Records Management.*
We have been able to make records management a more integral and
important part of the operations of Federal agencies and to help them
adapt records management practices to their own needs. For example, the
Patent and Trademark Office, the Government Accountability Office, and
NARA are adopting the concept of flexible scheduling to revise their
records control schedules to make them more effective and user friendly
for the agencies and NARA.

At the same time, we continue in our role as the managing partner of the
Electronic Records Management (ERM) Initiative, one of the original
Presidential e-Government Initiatives. In that role, we are expanding
the number of formats agencies can use to transfer their electronic
records to NARA. During FY 2004, we developed requirements for three
additional transfer formats of permanent electronic records: digital
photog­ra­phy, digital geospatial data records, and web content records.
This brings the total to six formats.

During FY 2004, the Interagency Committee on Government Information
(ICGI) established the Electronic Records Policy Working Group (ERPWG),
which NARA chairs. ERPWG's purpose is to develop recommendations for the
ICGI on policies and procedures that agencies should adopt to ensure
that records management requirements are applied effectively and
comprehensively to their electronic records, including Government
information on the Internet.

As a first step, the ERPWG conducted outreach sessions with more than
200 stakeholders in and outside the Government to identify present
barriers to the effective management of the Government's electronic
records and to develop suggested directions for overcoming those
barriers. The ERPWG also proposed development of an ERM toolkit that
will be a collection of existing and proven ERM guidance tools such as
case studies, best practice documents, process models, policies and
directives, tips and techniques, training programs, lessons learned,
presentations, and other practical tools that can be used by Federal
agencies to promote and implement effective management of Government
information on the Internet and other electronic
records.![](media/image7.png){width="1.5in"
height="2.439583333333333in"}

Besides redesigning the way Government manages its electronic records
and preparing the means to preserve them, we are also making more
records and more information about them available over the Internet.

During FY 2004, we added 13 new databases to Access to Archival
Databases (AAD), which allows Internet users to gain direct access to
electronic records on our web site, *www.archives.gov*. This brought the
total at year end to 47 series of databases, consisting of more than 71
million electronic records. The most popular database is that of Army
enlistments during World War II; at year end, it accounted for 57
percent of all queries in AAD.

In April 2004, we accepted the first increment of State Department
cables covering the period July 1973 to December 1974, a historic period
in the United States and the world. After archival pro­cess­ing, these
cables also will be made available via the Internet through AAD in FY
2005.![](media/image8.jpeg){width="1.9881944444444444in"
height="1.96875in"}

New staff-written descriptions of our records con­tinued to be added to
our online Archival Research Catalog (ARC) in a new and faster data
entry system. During 2004, the NARA staff exceeded its goals and now has
placed in the ARC database descrip­tions of 33 percent of traditional
holdings, 40 percent of artifacts, and nearly 10 percent of elec­tronic
records.

At NARA, we continue to seek better methods of carrying out our core
mission---preserving and making accessible the records of our
Government: parchment, paper, and electronic, as well as films and
videotapes, audio recordings, posters and photographs, maps, charts, and
architectural drawings.

Our efforts are paying off as we develop and perfect new methods to
manage and preserve these indispensable records and ensure they are
available for many generations to come to anyone, anywhere, anytime.

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

## Spotlight on NARA Public Programs {#spotlight-on-nara-public-programs .AR-2004-Head-2-Char}

In a democracy, the records that constitute our archives belong to the
citizens. Our Strategic Plan commits us to inform and educate our
customers about the services we offer and the records to which we can
provide access.

For more than six decades visitors have come to the National Archives to
see the U.S. Charters of Freedom---the Declaration of Independence, the
Constitution, and the Bill of Rights. Most of these visitors left
without knowing that the Archives holds billions more Federal records in
trust for their use---records that allow citizens to claim their rights,
hold Government accountable, and learn about who we are as a nation and
a people.

Realizing we needed to do a better job of telling the public about the
role that records play in our individual lives, our nation, and our
society, we designed a new project, the National Archives Experience, to
reach out to the public. Through the National Archives Experience and
related public programs we are helping people learn why "records
matter."

Thanks to the power of public-private partnerships we have been able to
bring the National Archives to the public in new and exciting ways. For
example, our partnership with the Foundation for the National Archives
made the National Archives Experience possible. Consisting of multiple
components in our downtown Washington, DC, building, the National
Archives Experience debuted in late 2003 and will be completed in 2006.

A generous gift from the William G. McGowan Charitable Fund, Inc., to
the Foundation financed the new William G. McGowan Theater, which opened
in September 2004 in the National Archives Building. The McGowan
Theater, which is expec­ted to become a major showplace in Washington,
DC, for documentary film as well as the premier outlet for our vast film
holdings, began a reg­ular schedule of programs on Sep­tem­ber 10. It also
shows an intro­ductory film as the first stop of the National Ar­chives
Experience.![](media/image9.jpeg){width="2.873611111111111in"
height="2.0729166666666665in"}

The McGowan Theater's opening capped a year of innovative public
programs at the National Archives---following on the rededication and
reopening of the Rotunda for the Charters of Freedom in September 2003
and leading up to the opening of the Public Vaults, the innovative
permanent exhibition component of the National Archives Experience, in
November 2004.

In December 2003, we announced the results of "The People's Vote," in
which the public cast more than 315,000 votes in choosing from among the
100 milestone documents we had designated earlier in the year in the
*Our Documents* Presidential initiative. The

Declaration of Independence, the Constitution, and the Bill of Rights
led the top ten. The project, co-sponsored by *U.S. News & World Report*
and National History Day, ended with a special display of the top 15
documents in and around the Rotunda.

From March 27 through September 6, the Special Exhibition Gallery in the
National Archives Building, another National Archives Experience
component, displayed original copies of the Treaty of Kanagawa, an 1854
friendship pact between the United States and Japan. For the first time
in 35 years, all four language versions (Japanese, English, Dutch, and
Chinese) of the treaty were exhibited. The exhibit recounted the events
leading up to the treaty, the first between Japan and any other country,
and was staged with assistance of a grant from the Foundation from the
Center for Global Partner­ship. This fall the gallery was named the
Lawrence F. O'Brien Gallery in recognition of a gift from the O'Brien
family to support the National Archives
Experience.![](media/image10.jpeg){width="1.6958333333333333in"
height="2.7152777777777777in"}

In the East Rotunda Gallery, we exhibited the U.S. Supreme Court's 1954
landmark school desegregation decision, *Brown* v. *Board of Education
of Topeka,* in obser­vance of its 50th ann­i­ver­sary. Several of our
regional facilities also observed this anni­versary. For example,\
our Mid Atlantic Region trained more than 100 branch leaders from the
Philadelphia Free Library System on the *Brown* case to allow them to
make it part of their after-school programs. Our Southeast Region
offered a series of free public programs, including a film on the case
and an exhi­bit featuring artifacts from the civil rights movement. These
two regions, along with the Central Plains Region, sponsored a
distance-learning event broadcast live from the National Constitution
Center in Philadelphia. The event featured conversations with Oliver
Brown's daughters and reached more than 600 students in these three
regions.

In honor of the dedication of the National World War II Memorial during
Memorial Day weekend, we displayed at the National Archives Building the
Instrument of German Military Surrender signed at Rheims, France, on May
7, 1945. We also screened World War II footage from our vast audiovisual
holdings and offered book lectures and panel discussions honoring the
World War II service of Hispanic Americans.

After the death of former President Ronald Reagan in June, hundreds of
visitors and many media represen­ta­tives came to the Reagan Library in
Simi Valley, CA, as his body lay in repose and later after the burial.
In Washing­ton, we displayed his famous speech at the Berlin Wall in 1987
in the Rotunda as part of the "A New World Is at Hand" exhibit, which
flanks the Char­ters of Freedom. All the Presi­den­tial libraries set up
cond­o­lence books in which visi­tors could share memories of the 40th
President and extend sympathy to his family.

There also were major additions to other Presidential libraries as part
of public-private partnerships. The Franklin D. Roosevelt Library, the
oldest of the Presi­dential libraries,

opened its new Henry A. Wallace Visitor and Education Center, the result
of a part­ner­ship with the National Park Service and the Franklin and
Eleanor Roosevelt Institute. In the Roosevelt Library itself, a new
3,000-square-foot special exhibition gallery was opened. The Harry S.
Truman Library opened a new permanent exhibition, "Harry S. Truman: His
Life and Times," the final piece of a major renovation program financed
in large part with private funds raised by the Harry S. Truman
Institute.![](media/image11.jpeg){width="2.7180555555555554in"
height="1.729861111111111in"}

Meanwhile, other Presidential libraries mounted some notable exhibits,
also with private help. With assistance from AT&T and WCVB-TV in Boston,
the John Fitzgerald Kennedy Library welcomed Boston visitors last summer
with "Campaign!," an exhibit that focused on the 1960 Presidential
campaign. The Bush Library opened "Barbara Bush: An Extraordinary
Journey," with assistance from the George Bush Foundation and private
donors, Donald and Adele Hall. The Gerald R. Ford Museum, with aid from
the Gerald R. Ford Foundation, hosted "The American Presi­dency: A
Glorious Burden," featuring many items from our other Presidential
libraries.

Our Presidential libraries and regional facilities continued to provide
educational programs for teachers and students in their areas. Many of
the libraries and regional facilities also provided assistance to local
schools and school districts that had received Teaching American History
grants from the U.S. Department of Education over the past few years.
The Lyndon Baines Johnson Library in Austin, TX, for example, is
providing teacher work­shops and presentations for schools in Austin and
some surrounding communities as well as for the San Antonio schools and
Baylor University.

Our flagship publication, *Prologue,* continued to bring to its readers
informative articles on the wide variety of activities at NARA as well
as in-depth historical features based on records in our holdings around
the country. Among the latter were articles on the struggle to enact the
Civil Rights Act of 1964, the history of the Topeka, KS, schools since
the historic *Brown* decision, and the schoolboy days of Harry S.
Truman.![](media/image12.jpeg){width="1.7909722222222222in"
height="2.2708333333333335in"}

And our popular "American Originals" traveling exhibit showed at the Los
Angeles Public Library in late 2003, then moved on to the Museum of
American Political Life in Hartford, CT, and the Delaware Art Museum in
Wil­ming­ton, DE, its final stop, in 2004. The tour allowed us to take
some of our most famous and interesting rec­ords directly to the public
by partnering with insti­tu­tions in other cities. "American Originals"
opened in Wash­ing­ton in 1995 and has been traveling around the country
since 2001.

Our goal, through the National Archives Experience and other public
programs, is for each person to gain an understanding of his or her
personal connection to the records in the National Archives. We hope
that families will see how their own stories fit into our national
mosaic and that young people are thrilled by the real-life drama of the
American experience. And we hope that individuals of all ages will take
action and use the Archives---to learn, to unravel, to discover, and to
celebrate the stories of individuals, of families, of communities, and
of our nation.

+-----------------------+---------+---------+-------+-------+-------+
| ### Using the Na      |         |         |       |       |       |
| tional Archives and R |         |         |       |       |       |
| ecords Administration |         |         |       |       |       |
|                       |         |         |       |       |       |
| FY 2004               |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
|                       | *       | *       | **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     | **5     | **39, | **    | *     |
| Area**                | 5,475** | 9,743** | 478** | 938** | *796, |
|                       |         |         |       |       | 895** |
+-----------------------+---------+---------+-------+-------+-------+
| **Office of Regional  |         |         |       |       |       |
| Records Services**    |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region      | 10,172  | 1,097   | 2,331 | 1,011 | ---   |
| (Boston)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region      | 4,484   | ---     | 787   | 314   | ---   |
| (Pittsfield)          |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Northeast Region (New | 4,296   | 1,260   | 4,844 | 791   | ---   |
| York)                 |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Mid Atlantic Region   | 8,783   | 471     | 1,743 | 1,071 | ---   |
| (Philadelphia)        |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Southeast Region      | 3,709   | 708     | 2,278 | 259   | ---   |
| (Atlanta)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Great Lakes Region    | 4,503   | 421     | 3,979 | 94    | ---   |
| (Chicago)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Great Lakes Region    | ---     | ---     | ---   | 111   | ---   |
| (Dayton)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Central Plains Region | 3,380   | 629     | 2,418 | 94    | ---   |
| (Kansas City)         |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Southwest Region      | 5,611   | 821     | 3,396 | 313   | ---   |
| (Fort Worth)          |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Rocky Mountain Region | 4,427   | 765     | 428   | 1,649 | ---   |
| (Denver)              |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region        | 5,700   | 578     | 1,584 | 1,020 | ---   |
| (Laguna Niguel)       |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region (San   | 5,217   | 1,557   | 3,177 | 171   | ---   |
| Bruno)                |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Region        | 1,137   | 303     | 399   | 20    | ---   |
| (Anchorage)           |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Pacific Alaska Region | 4,872   | 652     | 1,473 | 906   | ---   |
| (Seattle)             |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| National Personnel    | ---     | ---     | 1,00  | ---   | ---   |
| Records Center        |         |         | 5,103 |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| **Regional Records    | **6     | **      | **1   | **7,  | ---   |
| Services Total**      | 6,292** | 9,262** | ,033, | 824** |       |
|                       |         |         | 940** |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| **Presidential        |         |         |       |       |       |
| Libraries**           |         |         |       |       |       |
+-----------------------+---------+---------+-------+-------+-------+
| Hoover                | ---     | 286     | 1,274 | 3     | 6     |
|                       |         |         |       | 2,751 | 6,265 |
+-----------------------+---------+---------+-------+-------+-------+
| Roosevelt             | ---     | 1,405   | 3,201 | 2     | 10    |
|                       |         |         |       | 6,758 | 1,469 |
+-----------------------+---------+---------+-------+-------+-------+
| Truman                | ---     | 584     | 2,200 | 8,318 | 9     |
|                       |         |         |       |       | 2,558 |
+-----------------------+---------+---------+-------+-------+-------+
| Eisenhower            | 2       | 518     | 3,924 | 1     | 8     |
|                       |         |         |       | 1,885 | 1,049 |
+-----------------------+---------+---------+-------+-------+-------+
| Kennedy               | ---     | 1,574   | 4,254 | 5     | 21    |
|                       |         |         |       | 3,795 | 0,594 |
+-----------------------+---------+---------+-------+-------+-------+
| Johnson               | ---     | 1,590   | 3,184 | 2     | 29    |
|                       |         |         |       | 4,729 | 8,893 |
+-----------------------+---------+---------+-------+-------+-------+
| Nixon                 | ---     | 800     | 1,696 | 564   | ---   |
+-----------------------+---------+---------+-------+-------+-------+
| Ford                  | ---     | 890     | 2,113 | 1     | 5     |
|                       |         |         |       | 1,531 | 2,327 |
+-----------------------+---------+---------+-------+-------+-------+
| Carter                | ---     | 391     | 679   | 449   | 6     |
|                       |         |         |       |       | 2,505 |
+-----------------------+---------+---------+-------+-------+-------+
| Reagan                | ---     | 503     | 528   | 1     | 36    |
|                       |         |         |       | 0,408 | 3,101 |
+-----------------------+---------+---------+-------+-------+-------+
| Bush                  | ---     | 299     | 1,906 | 3     | 12    |
|                       |         |         |       | 2,727 | 8,928 |
+-----------------------+---------+---------+-------+-------+-------+
| Clinton               | ---     | ---     | 1,369 | 842   | ---   |
+-----------------------+---------+---------+-------+-------+-------+
| **Presidential        | 2       | **      | **26, | *     | **1   |
| Libraries Total**     |         | 8,840** | 328** | *214, | ,457, |
|                       |         |         |       | 757** | 689** |
+-----------------------+---------+---------+-------+-------+-------+
| **TOTAL**             | **9     | **7     | **1   | *     | **2   |
|                       | 1,769** | 7,845** | ,099, | *223, | ,254, |
|                       |         |         | 746** | 519** | 584** |
+-----------------------+---------+---------+-------+-------+-------+

## Performance Overview {#performance-overview .AR-2004-Head-2-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 2004 performance,
followed by some of our major accomplishments this year presented by
strategic goal.

### Snapshot of 2004 Performance {#snapshot-of-2004-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**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Annual percent of targeted        | 100  | 100  | 100  | *95* | 100  |
| assistance partnership agreements |      |      |      |      |      |
| delivering the results promised.  |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Median time for records schedule  | 237  | 470  | 155  | *    | 253  |
| items completed (in calendar      |      |      |      | 220* |      |
| days).                            |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| **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**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Percent increase in number of     | ---  | ---  | ---  | *50* | 51   |
| archival electronic holdings      |      |      |      |      |      |
| accessible online.                |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Median time from the transfer of  | ---  | ---  | 450  | *    | 736  |
| archival electronic records to    |      |      |      | 250* |      |
| NARA until they are available for |      |      |      |      |      |
| access (in calendar days).        |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of NARA's electronic      | 97   | 98   | 97   | *99* | 93   |
| holdings stabilized in            |      |      |      |      |      |
| preparation for their transfer to |      |      |      |      |      |
| the Electronic Records 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**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Percent of written requests       | 93   | 93   | 94   | *90* | 95   |
| answered within 10 working days.  |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of Freedom of Information | 27   | 76   | 61   | *85* | 67   |
| Act requests for Federal records  |      |      |      |      |      |
| completed within 20 working days. |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| **Performance Indicator**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Percent of requests for military  | 7    | 40   | 37   | *70* | 75   |
| service separation records at the |      |      |      |      |      |
| National Personnel Records Center |      |      |      |      |      |
| in St. Louis answered within 10   |      |      |      |      |      |
| working days.                     |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of items requested in our | 93   | 94   | 96   | *95* | 99   |
| research rooms furnished within   |      |      |      |      |      |
| one hour of request or scheduled  |      |      |      |      |      |
| pull time.                        |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of customers with         | 99.7 | 99.8 | 99.9 | *99* | 99.3 |
| appointments for whom records are |      |      |      |      |      |
| waiting at the appointed time.    |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of Federal agency         | 93   | 92   | 94   | *90* | 96   |
| reference requests in Federal     |      |      |      |      |      |
| records centers that are ready    |      |      |      |      |      |
| when promised to the customer.    |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of records center         | 9    | 9    | 9    | *99* | 9    |
| shipments to Federal agencies     | 9.99 | 9.99 | 9.99 |      | 9.99 |
| that are the records they         |      |      |      |      |      |
| requested.                        |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of archival fixed-fee     | ---  | 88   | 99   | *75* | 99.9 |
| reproduction orders that are      |      |      |      |      |      |
| completed in 35 working days or   |      |      |      |      |      |
| less.                             |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of education programs,    | 97   | 96   | 95   | *95* | 99   |
| workshops, and training courses   |      |      |      |      |      |
| meeting attendees' expectations.  |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of NARA services          | 24   | 25   | 30   | *40* | 40   |
| available online.                 |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of traditional holdings   | ---  | 19   | 20   | *30* | 33   |
| in an online catalog.             |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of artifact holdings in   | ---  | 19   | 17   | *30* | 40   |
| an online catalog.                |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of electronic holdings in | ---  | 0.02 | 0.02 | *5*  | 10   |
| an online catalog.                |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Annual number of Presidential     | 322  | 332  | 470  | *    | 500  |
| pages scanned (in thousands).     |      |      |      | 300* |      |
+-----------------------------------+------+------+------+------+------+
| Cumulative percent of Clinton     | 1    | 1    | 1    | *5*  | 2    |
| Presidential and Vice             |      |      |      |      |      |
| Presidential traditional holdings |      |      |      |      |      |
| processed for opening January 20, |      |      |      |      |      |
| 2006.                             |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of NHPRC grant-funded     | 91   | 79   | 86   | *86* | 88   |
| projects that produced results    |      |      |      |      |      |
| 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**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Cost of archival storage space    | ---  | ---  | ---  | *    | \$   |
| per cubic feet of traditional     |      |      |      | ---* | 6.16 |
| holdings stored.                  |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of cumulative backlog of  | 28   | 32   | 35   | *40* | 41   |
| NARA's at-risk archival 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**         | **   | **   | **   | **   | **   |
|                                   | 2001 | 2002 | 2003 | *200 | 2004 |
|                                   | Actu | Actu | Actu | 4*** | Actu |
|                                   | al** | al** | al** |      | al** |
|                                   |      |      |      | ***T |      |
|                                   |      |      |      | arge |      |
|                                   |      |      |      | t*** |      |
+-----------------------------------+------+------+------+------+------+
| Percent of staff having           | 48   | 80   | 93   | *95* | 91   |
| performance plans linked to       |      |      |      |      |      |
| strategic outcomes.               |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of staff having staff     | ---  | 1    | 91   | *95* | 53   |
| development plans linked to       |      |      |      |      |      |
| strategic outcomes.               |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of applicant pools for    | 74   | 85   | 97   | *98* | 98   |
| positions at grades GS-13 and     |      |      |      |      |      |
| above that contain people in      |      |      |      |      |      |
| underrepresented groups.          |      |      |      |      |      |
+-----------------------------------+------+------+------+------+------+
| Percent of public network         | ---  | ---  | ---  | *9   | 98.7 |
| applications availability.        |      |      |      | 6.5* |      |
+-----------------------------------+------+------+------+------+------+

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

In FY 2003 we issued *Strategic Directions for Federal Records
Management,* our roadmap for redesigning Federal records management and
partnering with Federal agencies to ensure that records management
supports their business needs. In FY 2004 we made significant strides in
implementing this roadmap. We created an integrated nationwide records
management program to improve how we use NARA resources across the
country for the benefit of our agency customers. We developed and
distributed a model agency Senior Records Manager position descrip­tion
that stresses the crucial role records manage­ment plays in supporting
the agency missions. We are redesigning the content and format of NARA's
training program for agency records professionals. The program will
intro­duce the concepts of information technology capital plan­ning,
information and knowledge manage­ment, and records as information assets,
and will in­clude a voluntary certification of training com­ponent that
will permit participants in a core set of training modules to take an
examination and receive certification of their successful com­ple­tion of
the training. We devel­oped criteria, procedures, and a handbook for
identifying the functional areas within the Govern­­ment that contain the
greatest records management challenges and piloted a methodology for
allocating NARA records management resources to the highest priority
areas. We issued new General Records Schedules for Alternative Dispute
Resolution and Reasonable Accommodation Requests.

NARA is one of three executive sponsors for the *Interagency Committee
on Government Information* and chair of the *Electronic Records Policy*
*Working Group* (ERPWG). The ERPWG produced a report identifying
barriers to effective management of Government infor­mation on the
Internet and other elec­tronic records and developed a frame­work for
tools to manage electronic records and pro­posed common character­istics
of records (metadata) that all agencies would capture for electronic
records.

As the lead agency for the *Electronic Records Management Presidential
E-Government Initiative,* we issued transfer guidance for three
additional permanent electronic record formats---digital photog­ra­phy
records, digital geospatial data records, and web content records.

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 361 targeted assistance projects with 103
Federal agencies and field offices, of which 266 projects have been
completed. Most important, we have a 100-percent success rate on these
projects.

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

In August 2004 we awarded design contracts for the *Electronic Records
Archives* (ERA). Two vendors will face off in a one-year design
competition to determine who will build ERA, the 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. As part of our continuing effort to remain highly
accountable for the ERA program, we implemented a program management
tool that will enable us to perform program control activities,
including earned value management, on the ERA program. This system
incorporates an EIA-748-compliant tool that meets OMB and Government
Accountability Office (GAO) standards for calculating earned value.

We increased our online electronic holdings by 51 percent in FY 2004,
with more than 70 million logical data records now accessible online
through *Access to Archival Databases* (AAD), one of the early
prototypes of a portion of the ERA system.

In the interim before ERA is operational, we installed a new *Accession
Management Information System* to track electronic records accessions
from the arrival of the records at NARA to their final accessioning into
NARA's holdings.

##### ![](media/image13.wmf)Goal 3: Expanding Opportunities for Access {#goal-3-expanding-opportunities-for-access .AR-2004-Head-4}

We have added more than 12,000 descriptions of our holdings to the
*Archival Research Catalog* (ARC) this year. ARC is an online catalog of
NARA's nation­wide holdings. We beat our target for having 30 percent of
our holdings described in ARC this year by having 33 percent described.

To improve *customer service at the National Personnel Records Center*
in St. Louis, MO, the Case Management and Reporting System has been
fully deployed, with a web portal available for the electronic
submission of requests from veterans and Federal agencies. We exceeded
our target of 70 percent by answering requests for military separation
records within 10 working days 75 percent of the time, up from 37
percent last year.

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, for both Federal agencies and the public,
available electronically. We currently make 40 percent of our services
available to the public online. We launched *Order Online!* in December
2003*,* which allows our customers to order copies of census records,
land entry files, military bounty-land warrant application files, and
Federal military pension application files online.

One indication of the quality and interest in the information we provide
is that more than 30 million visitors accessed our web site. To help us
continue to improve our web services, we have launched an *online
survey* on our main public web site, *archives.gov*, using the American
Customer Satisfaction Index. The results of our most recent survey
sample show that while our online visitors give high marks to our
content (79, eight points above the index benchmark), our navigation
could be improved (64). We are using the survey results to determine
customer require­ments for the redesign of our site.

![](media/image14.wmf)We continued providing *outstanding custo­mer
service* in FY 2004, exceeding our tar­gets in nearly every area. More
than 95 per­cent of the written requests we re­ceived from customers were
answered within 10 work­ing days, exceed­ing our goal of 90 percent.
Ninety-nine 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 2004 we made significant progress in several
areas highlighted by the opening of the William G. McGowan Theater built
under the Constitution Avenue steps.

We completed construction of a 23,400-square-foot *addition to the
Reagan Library* to include new exhibit space and a learning center. The
space opened with the Lewis and Clark Exhibition to mark the 200th
anniversary of that historic event. We completed the first *major
alteration to the Ford Museum* since its opening in 1982, creating new
space for temporary exhibits and storage. We moved all the Clinton
Presidential materials to the *new William J. Clinton Library* in
preparation for its opening. The Clinton Presidential Library and Museum
dedication is planned for November 18, 2004. We also made significant
progress in con­struc­tion of a *new South­east Regional Archives* facility
near Atlanta, GA. This building will meet the strict standards for
storage of archi­val records and will open in 2005.

In FY 2004, we completed an extensive analysis of the *costs of
digitizing* records versus continued storage of paper records at the
National Personnel Records Center in St. Louis and determined that
storing paper records in a custom-built leased facility is the least
costly alternative to meet long-term preservation and access needs. We
also completed a *risk assessment of the Official Military Personnel
Files* at the National Personnel Records Center, the first step in
developing a more com­pre­hensive plan for ensuring long-term preser­vation
and access to the collection. This data is helping us develop plans for
moving the collec­tions and identifying additional preservation
strategies for "at-risk" records.

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

To address weaknesses in our *information technology (IT) security*, we
pursued several tactics. We reviewed our IT security policies against
the new draft National Institute of Standards and Technology (NIST)
guidelines, completed our annual update to our IT security program plan,
and ensured that all contingency plans are NIST compliant. We expanded
our annual training to target users of classified systems, and we
initiated certification and accreditation activities for each classified
system. We also strengthened our firewall protection across the entire
network to control inbound and outbound traffic and enhanced our
procedures and reporting capabilities for identifying unauthorized
access attempts. We recognize that this is not a static effort. We must
continue to address IT security policies and processes to ensure that
there is continuous improvement.

We deployed a beta version of the *Electronic Editing and Publishing
System* (eDOCS) into our daily *Federal Register* publication production
operations in FY 2004. We are now using eDOCS to receive live documents
from three agencies via e-mail and the Internet, and we can process
those documents electronically through their entire production lifecycle
within the Office of the Federal Register. In FY 2004, we received more
than 3,200 documents electronically via eDOCS, 9 percent of our total,
and managed all of them electronically. More than 200 million *Federal
Register* documents were retrieved online by our customers, and more
than 240,000 open rulemakings were retrieved online through
*regulations.gov* in FY 2004. We are proud of these efforts that make
the workings of government more readily accessible to citizens.

A more detailed examination of our FY 2004 performance can be found in
the full version of this report, located at
*www.archives.gov/about_us/reports/annual_report.html.*

##### 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. 33.) 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: \$17,242,000 and 140 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.                 |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+

+-------------------------------------+---+---+---+---+---+---+---+
| **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 2: \$52,852,000 and 83      |   |   |   |   |   |   |   |
| 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: \$146,092,000 and 2,352  |   |   |   |   |   |   |   |
| 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, 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 five-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: \$63,360,000 and 150     |   |   |   |   |   |   |   |
| 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.              |   |   |   |   |   |   |   |
+-------------------------------------+---+---+---+---+---+---+---+

+-------------------------------------+---+---+---+---+---+---+---+
| **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 5: \$33,182,000 and 130     |   |   |   |   |   |   |   |
| 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}

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

NARA's financial statements received a qualified opinion. This is the
first year that NARA's financial statements have been audited. NARA
prepared its financial statements in accordance with the accounting
standards codified in the Statements of Federal Financial Accounting
Standards (SFFAS) and Office of Management and Budget (OMB) Bulletin No.
01-09, *Form and Content of Agency Financial Statements.*

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

NARA is funded through appropriated budget authority, which includes
annual, multi­year and no-year appropriations, which are available for
use within certain specified statutory limits. Additional budget
authority includes Gift Fund, Trust Fund, and Revolving Fund income.

NARA's total new FY 2004 budget authority from appropriation was \$316.3
million. Funding carried over from multiyear and no-year funds was
\$24.1 million. In addition, \$.3 million from FY 2003 was available to
obligate. FY 2004 rescissions totaled \$1.9 million. Total appropriated
budget authority for FY 2004 was \$338.8 million.

![Total FY 2004 Direct Appropriations = \$338,819 (Including NHPRC
Grants, Repairs & Restoration, and Electronic Records Archives) (dollars
in thousands) Records Services, \$113,408 (6%) Presidential Librarires,
\$74,820 (22%) Regional Records Services, \$50,754 (15%) Electronic
Records Archives, \$41,398 (12%) Archives II Interest, \$21,161 (6%)
Federal Register, \$10,902 (3%) NHPRC (Grants), \$10,953 (3%) NHPRC
(Operating Expenses), \$2,613 (1%) Information Security Oversight
Office, \$5,000 (2%) Redemption of Debt, \$7,810
(2%)](media/image15.wmf){width="4.930708661417323in"
height="3.5326771653543307in"}

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 provides for the publications of the *Federal Register,* the
*Code of Federal Regulations,* the *U.S. Statutes at Large,* and
Presiden­tial documents, and for NARA's contribution to the Presidential
e-Government Initiative, e-Rulemaking, 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 restoration of facilities, 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 and 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
represents the allotment of total available appropriated funds.

Other financing sources include the National Archives Gift Fund, Trust
Fund, and Revolving Fund.

The Gift Fund was established to administer incoming gifts and bequests.
Its budget authority includes donations and interest earned on
investments. Expenditures are made for various programs, including
historical research, conferences, archival and cultural events, and
publications. In FY 2004, it received donations of \$ 3.6 million.

The Trust Fund receives, holds, and disburses monies collected from
sales of repro­ductions of records and sales of publications and
historical mementos in the National Archives buildings, the regional
records services facilities, and the Presidential libraries; admission
fees to the Presidential libraries; and fees for archival training and
conferences. The Trust Fund earned revenue of \$14.2 million in FY 2004.

The Revolving Fund, for a standard price, provides storage, transfer,
reference, refile, and disposal services for records stored in NARA
records centers. The Revolving Fund earned revenue of \$129.2 million in
FY 2004.

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

NARA incurred new general fund obligations of \$316.2 in FY 2004. Of
this, \$2.85 million is for reimbursable work. The chart below
represents obligations by strategic goals.

![](media/image16.wmf){width="4.927165354330708in"
height="3.3645669291338582in"}

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

NARA received a qualified opinion on its FY 2004 financial statements.
It was qualified for the effects of adjustments, if any, as might have
been necessary had the auditors been able to perform adequate audit
procedures on property, plant, and equipment; recoveries of prior year
obligations; direct obligations incurred; and undelivered orders. NARA
had four material internal control weaknesses and three reportable
conditions. It also had three substantial noncompliances with the
Federal Financial Management Improvement Act.

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

NARA's financial statements summarize the financial activity and
financial position of the agency. 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-3}

NARA's assets were \$566.6 million as of September 30, 2004. The assets
reported in NARA's balance sheet are summarized in the table below.

  ------------------------------------------------------- ---------------
  **Asset Summary (in millions)**                         

  Fund balance with Treasury and cash                     \$185.2

  General property, plant, and equipment, net             328.3

  Investments                                             36.0

  Accounts receivable, net                                15.0

  Inventory                                               1.0

  Other                                                   1.1

  **Total assets**                                        **\$566.6**
  ------------------------------------------------------- ---------------

The fund balance with Treasury and cash accounts for approximately 32.7
percent of total assets and represents appropriated funds and
collections of fees for services. Property, plant, and equipment
accounts for 57.9 percent of total assets. The majority of the balance
represents the National Archives at College Park.

NARA's liabilities were \$322.1 million as of September 30, 2004. The
liabilities reported in NARA's balance sheet are summarized in the
accompanying table.

  --------------------------------------------------- -------------------
  **Liabilities Summary (in millions)**               

  Debt held by the public                             \$246.0

  Accounts payable                                    27.8

  Other                                               48.3

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

Debt held by the public accounts for approximately 76.4 percent of total
liabilities and represents debt issued to the public to cover the
construction costs of the National Archives at College Park. Liabilities
totaling \$266.8 million, or 82.8 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 \$246 million for debt held
by the public, \$9.8 million for workers' compensation, and \$11 million
for unfunded annual leave.

The difference between total assets and total liabilities, net position,
was \$244.6 million as of September 30, 2004. The net position reported
in NARA's balance sheet is summarized in the table below.

  ----------------------------------------------------- -----------------
  **Net Position Summary (in millions)**                

  Unexpended appropriations                             \$139.8

  Cumulative results of operations                      104.8

  **Total net position**                                **\$244.6**
  ----------------------------------------------------- -----------------

Unexpended appropriations are the amount of authority granted by
Congress that has not been expended. Cumulative results of operations
represent net results of operations since NARA's inception, reflecting
results of Revolving Fund operations and funding of capital needs of the
agency.

### Analysis of the Statement of Net Cost {#analysis-of-the-statement-of-net-cost .AR-2004-Head-3}

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,
2004, was \$286.3 million. Net costs by program are shown in the table
below.

  ------------------------------------------------------- ---------------
  **Net Cost of Operations (in millions)**                

  Records and archives-related services                   \$240.6

  Trust and Gift Funds                                    3.4

  Electronic Records Archives                             11.2

  National Historical Publications and Records Commission 5.9
  grants                                                  

  Archives facilities and Presidential libraries repairs  13.0
  and restoration                                         

  Records center storage and services                     12.2

  **Net cost of operations**                              **\$286.3**
  ------------------------------------------------------- ---------------

Total exchange revenue for the year ended September 30, 2004 was \$144.9
million, \$129.2 million, of which was fees earned for storage and
services at the records facilities.

### 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 increase in net position of \$43.2
million from FY 2003 to FY 2004 is due primarily to the net change in
cumulative results of operations of \$26.0 million and an increase in
unexpended appropriations of \$17.2 million.

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

The statement of budgetary resources shows the sources of budgetary
resources available and the status at the end of the period. It presents
the relationship between budget authority and budget outlays and
reconciles obligations to total outlays. For FY 2004, NARA had budgetary
resources available of \$552.6 million, the majority of which was
derived 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 provide the bridge between
accrual-based (financial accounting) information in the statement of net
cost and obligation-based (budgetary accounting) information in the
statement of budgetary resources by reporting the differences and
reconciling the two statements. 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 \$490 million and reconciles to the net cost of operations of \$286.3
by deducting nonbudgetary resources, costs not requiring resources, and
financing sources yet to be provided.

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

The General Services Administration (GSA) provides cross servicing for
NARA's debt collection management. GSA has not provided debt management
information specific to NARA; 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}

GSA provides cross servicing for NARA for all of its financial services,
including payments management. For FY 2004, 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 by program. All programs were statistically sampled to identify
programs 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. Corrective action plans will be developed for any
programs that are identified that are 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/image17.png){width="1.002755905511811in" height="0.9019685039370079in"}Federal Managers' Financial Integrity Act {#federal-managers-financial-integrity-act .AR-2004-Head-2-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
man­age­ment controls and confor­mance of financial systems with
Government-wide standards.

### Management Controls Program {#management-controls-program .AR-2004-Head-3}

NARA's internal controls worked to ensure the attainment of our mission
and FY 2004 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

-   Leadership Team 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 review the
agency's internal controls and lead to improvements in them. Annually,
the OIG reviews the state of NARA's management controls. The Archivist's
assurance letter reports on the results of this assessment.

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

NARA evaluated its management control systems for the fiscal year ending
September 30, 2004. This evaluation provided reasonable assurance that
the agency's management controls achieved their intended objectives.
Pursuant to Section 2 of the Integrity Act, we identified two material
weaknesses in fiscal years 2000 and 2001. Two corrective action plans
were developed for material weaknesses in computer security and
collections security. Much progress has been made, and all corrective
actions are slated for completion 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}

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 2004 Federal Information Security
Management Act (FISMA) Report, submitted October 6, 2004, to the Office
of Management and Budget (OMB). NARA's Inspector General, however, did
identify six new significant deficiencies in his FISMA Report, all
relating in general to computer security. The six deficiencies were
derived from preliminary draft potential findings as part of the FY 2004
financial audit and have not been formally delivered as findings. If any
of the draft potential findings become actual findings, we will develop
corrective action plans as needed. We believe we can make any needed
corrections in FY 2005.

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

GSA is the financial services provider of NARA financial systems via
PEGASYS. At the end of FY 2003, GSA had a material weakness concerning
the PEGASYS system. Because PEGASYS, GSA's financial system, was not
compliant with the Joint Financial Management Improvement Program
(JFMIP), required by FFMIA, and after significant efforts on both sides
to correct the deficiencies, NARA has decided to change financial
services provider. Implementation will take place in FY 2006.

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

GSA is the financial services provider of NARA financial statistics and
acts as our agent for implementing the Prompt Payment Act. As a result,
NARA statistics are not specifically identifiable.

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

NARA maintains an excellent record 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 the full report at
*www.archives.gov/about_us/reports/annual_report.html.*

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

413-236-3660

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

1557 St. Joseph Avenue

East Point, GA 30344

404-763-7474

**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)

17591 West 98th Street, #31-50

Lenexa, KS 66219

913-825-7811

**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\
(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 63118

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**

Karl Weissenbach, *Director*

National Archives at College Park

8601 Adelphi Road

College Park, MD 20740

301-837-3290

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

Dennis A. Daellenbach, *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

805-577-8444

**George Bush Library**

Edward Douglas Menarchik, *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

501-244-2889

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

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

*www.archives.gov/about_us/reports/annual_report.html*

Links are provided to both the full report (MD&A, Performance and
Financial sections, and Appendixes), as well as the summary report
(MD&A). Also located on that page are our strategic plan, annual
performance plans, and past performance reports.

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

*www.archives.gov/global_pages/inquire_form.html*

or by writing to National Archives and Records Administration, Policy
and Communications 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 2005. Please e-mail any comments to:
*vision@nara.gov*.

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

  ------------------------------------- --------------------------------------------------
  **Reports, Strategic Documents,       *www.archives.gov/about_us/*
  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_room/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_room/*
  for a research visit, facility hours  
  and locations, and more.              
  ------------------------------------- --------------------------------------------------

# [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 2004 Annual Performance Plan. The following pages
detail our performance on all our FY 2004 objectives. Checked boxes
indicate those we fully achieved. Those we did not fully achieve have
open boxes with an explanation below. We also included all 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 continued using 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 updates some of our FY 2003
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 are an integral part of
our operations.

In our continuous effort to improve our performance measurement program,
we have 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 for
data collection. 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 begun implementation of a program management system (PROMT)
to help us control cost and schedule on the Electronic Records Archives
(ERA) program. 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. We plan to expand the
use of PROMT throughout NARA to help us improve our capabilities for
managing and tracking performance on other projects.

# FY 2004 Performance by Strategic Goal {#fy-2004-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 2004 Resources Available to Meet This Goal:** \$17,242,000; 140 FTE

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Deliver the results promised on 95     |
|                         | * | percent of targeted assistance         |
|                         |  | partnership projects.                  |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Redesign NARA's records management     |
|                         | * | training program and establish a       |
|                         |  | distance-learning component.           |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Establish certification program for    |
|                         | * | records management professionals.      |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We delivered the results promised on   |
|                         |   | 100 percent of targeted assistance     |
|                         |   | partnership projects.                  |
+-------------------------+---+----------------------------------------+
| *"The presentation on   |   |                                        |
| flexible*               |   |                                        |
+-------------------------+---+----------------------------------------+
| *scheduling made us     |  | We redesigned our records management   |
| realize we have made    |   | training program, including a          |
| major accomplishments,  |   | distance-learning component.           |
| and we're energized for |   |                                        |
| the next phase."*       |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"Your help enabled us  |  | We created a records management        |
| to file our electronic  |   | certification program.                 |
| records under the same* |   |                                        |
+-------------------------+---+----------------------------------------+
| *scheme as our paper    |   |                                        |
| records!"*              |   |                                        |
+-------------------------+---+----------------------------------------+
| *"The class gave me     |  | We increased the number of partnership |
| good ideas to*          |   | projects established with Federal      |
|                         |   | agencies from 348 to 361.              |
+-------------------------+---+----------------------------------------+
| *incorporate into our   |  | We trained 2,997 Federal agency staff  |
| records management      |   | in records management and electronic   |
| program."*              |   | records management.                    |
+-------------------------+---+----------------------------------------+
|                         |  | We developed criteria and internal     |
|                         |   | procedures for conducting records      |
|                         |   | management studies.                    |
+-------------------------+---+----------------------------------------+

*Discussion* Targeted assistance projects are established between NARA
and Federal agencies to solve specific records management problems. We
established 13 new projects with Federal agencies this year. Since the
program began in 1999, we have established 361 projects, completed 266
projects, and assisted 103 Federal agencies and field offices. In FY
2004, we established about a quarter of the number of projects we
started in FY 2003. With more than 100 projects in progress, and the
need to use the records management expertise of some of our targeted
assistance specialists for the development and imple­mentation of new
records management initiatives, we opted to not start as many projects
as in past years. This will continue to fluctuate as requirements
demand.

An example of the kind of work addressed in a targeted assistance
project is our partnership with the United States Department of the
Interior, Office of the Special Trustee for American Indians, to assist
the office in records management training and development of records
schedules covering the fiduciary trust records of the Bureau of Indian
Affairs (BIA). Against the backdrop of the *Cobell, et al.* v. *Norton,
et al.,* Indian trust litigation pending in the U.S. District Court for
the District of Columbia, and according to court-ordered deadlines, NARA
appraised and approved the permanent retention of 202 textual series of
records and 34 electronic data files. These records will be retained as
historically valuable records at NARA's Federal Records Center in
Lenexa, KS, referred to as the American Indian Records Repository,
thereby ensuring the secure storage of trust-related records that
document the rights of the American Indian and the account­a­bility of the
Government.

We provided records management training to 2,997 Federal agency staff
across the country this year, a 14-percent decrease from last year. The
number we train each year fluctuates, depending on availability of staff
to perform training. Ten percent of Federal agency staff enrolled in
NARA records management training took their first NARA training course.

We created a NARA-wide records management training team, which has
redesigned the content and format of NARA's training program for agency
records professionals, using adult education concepts and proposed
alternative delivery approaches in addition to traditional classroom
settings. We delivered two training seminars (*"*webinars") to Federal
records managers across the country using the Internet for the visual
part of the training and the telephone for the audio part. Feedback from
participants was very positive. An Environ­mental Protection Agency
participant said, "I cannot always get out to meetings. The feature of
not having to leave the office but being able to attend is great!" The
redesigned training program, using webinars and other innovative
delivery methods, will help agency records professionals better support
the business needs of the agencies they serve, highlighting the
importance of managing agency records as infor­mation assets and
incorporating the principles of asset and risk management. We also
established a Records Management Training Officer position to bring in
the latest in adult education techniques. NARA's training program will
addresses 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.

  ----------------------------- ---------- ---------- ---------- ---------- ---------- ----------
  **Performance Data**          **1999**   **2000**   **2001**   **2002**   **2003**   **2004**

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

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

  Annual number of targeted     33         123        63         77         58         13
  assistance partnership                                                               
  projects initiated                                                                   

  Annual number of targeted     2          37         58         76         67         26
  assistance partnership                                                               
  projects completed                                                                   

  Annual number of successful   2          37         58         76         67         26
  targeted assistance                                                                  
  partnership projects                                                                 
  completed                                                                            

  Cumulative number of targeted 33         156        213        290        348        361
  assistance partnership                                                               
  projects initiated with                                                              
  Federal agencies                                                                     

  Cumulative number of targeted 2          39         97         173        240        266
  assistance partnership                                                               
  projects completed with                                                              
  Federal agencies                                                                     

  Number of Federal agency      2,997      3,506      2,506      3,746      3,392      2,997
  staff receiving NARA training                                                        
  in records management and                                                            
  electronic records management                                                        

  Number of records management  ---        ---        ---        ---        ---        297
  training participants who are                                                        
  taking a NARA records                                                                
  management course for the                                                            
  first time                                                                           

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

*FY 2005 Performance Plan Evaluation* As we continue to make targeted
assistance the basis of the way we help Federal agencies with records
management, we expect to see significant improvements in the way Federal
agencies manage their records. Based on recommendations made by NARA's
Inspector General, we have taken steps to tighten the success criteria
for these projects and are getting agency feedback in judging success.
In 2005 we will develop a measurement methodology for the outcomes of
targeted assistance to Federal agencies.

NARA's *Strategic Directions for Federal Records Management* established
the strategies we are using to improve records management across the
Government and achieve Goal 1. In FY 2003 and FY 2004, we began to
implement these strategies through a unified NARA program to support
Federal records management. In FY 2005 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. A status of
the initiatives we are undertaking is provided in the full report
available at *www.archives.gov/about_us/reports/annual_report.html*.

With new online training and a professional certification program
launched in FY 2005, we expect to see an increase in the number of
Federal agency staff taking NARA records management courses, especially
staff taking training for the first time. The Certification of
Completion of Training in Federal Records Management is on track to go
live at the beginning of FY 2005. We plan to use the Office of Personnel
Management's (OPM) GoLearn site for hosting our online certification in
support of the e-Training e-Gov­ernment initiative. We expect the first
students to complete all five required records management training
courses and the certification process in late FY 2005.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | In coordination with OMB, develop a    |
|                         | * | requirement for agencies to report on  |
|                         |  | records management requirements in     |
|                         | * | their FY 2006 capital asset plans.     |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop transfer guidance for three    |
|                         | * | additional electronic records formats. |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We developed language for the FY 2006  |
|                         |   | Exhibit 300 guidance, which was not    |
|                         |   | incorporated at this time.             |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We issued transfer guidance for three  |
|                         |   | electronic records formats---digital   |
|                         |   | photography, geographical information  |
|                         |   | systems, and web content records.      |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We piloted a records management        |
|                         |   | application in two NARA units.         |
+-------------------------+---+----------------------------------------+

*Discussion* We continue to support the President's e-Government
initiatives through the Electronic Records Management Initiative, which
is 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. This year we added digital photographic
records, digital geospatial data records, and web content records to the
formats accepted by NARA. This year's work completes the list of formats
(six in all) for which NARA is creating specific transfer guidance.

In consultation with OMB, we determined that using the Capital Asset
Plan (Exhibit 300) was not a viable mechanism for ensuring that records
management requirements are identified and addressed early in the
lifecycle of all agency systems. 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 identified other potential avenues for institutionalizing
agency incorporation of records management requirements into IT system
planning, including incorporating certain requirements in the Federal
Acquisitions Regulations (FAR) and developing electronic records
management (ERM) toolkit guidance. In addition, OMB mandated that the
Electronic Records Management Initiative establish memoranda of
understanding with 26 Federal agencies to ensure that agencies
incorporate guidance produced by the initiative into their records
management business processes. One of the guidance prod­ucts, "Guidance
for Coordinating the Evaluation of Capital Planning and Investment
Control (CPIC) Proposals for ERM Applications," recommends that agencies
involve their records staff in reviewing CPIC proposals for ERM
functionality. While this does not directly affect early records
scheduling, it does promote involving records staff early in the records
management business process.

*FY 2005 Performance Plan Evaluation* The ERM Initiative will continue
to promote the transition to Government-wide electronic records
management with additional guidance products. We will work with the
Department of Defense to extend the DoD 5015.2-STD to include transfer
to NARA and interoperability specifications. Future transitional
products will be developed under the auspices of ICGI and its ERPWG.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Process records schedule items within  |
|                         | * | a median time of 220 calendar days or  |
|                         |  | less.                                  |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop detailed workflows for         |
|                         | * | scheduling and appraisal, processing   |
|                         |  | of Federal electronic records,         |
|                         | * | transfer of records to Federal records |
|                         | * | centers, and carrying out disposition  |
|                         |   | of records by Federal records centers. |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop concept of operations for      |
|                         | * | automated workflow and collaboration   |
|                         |  | tools to support the redesigned        |
|                         | * | scheduling and appraisal process.      |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Survey Federal agencies to determine   |
|                         | * | baseline satisfaction with NARA        |
|                         |  | scheduling and appraisal services.     |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We processed records schedule items    |
|                         |   | within a median time of 253 calendar   |
|                         |   | days.                                  |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed process models for        |
|                         |   | scheduling and appraisal, processing   |
|                         |   | of Federal electronic records,         |
|                         |   | transfer of records to Federal records |
|                         |   | centers, and carrying out disposition  |
|                         |   | of records.                            |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We collected and analyzed internal and |
|                         |   | external stakeholder requirements for  |
|                         |   | automated workflow and collaboration   |
|                         |   | tools to support the redesigned        |
|                         |   | scheduling and appraisal process.      |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+

  -------------------------- --- ----------------------------------------
                                We surveyed Federal agencies to
                                 determine their satisfaction with NARA
                                 scheduling and appraisal services.
                                 Survey data is being analyzed.

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

*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. To some degree, work on other important records management
initiatives getting under way this year, such as the new records
management training curriculum and national records management projects,
has used resources that would have been used for processing records
schedules. This demand on current resources will likely continue until
some of these initiatives are self-sustaining.

In FY 2003 we undertook a business process reengineering effort for the
records sched­uling, appraisal, and accessioning process, and developed a
high-level improved, future model of all records lifecycle business
processes at NARA. Many of these processes will be built into the
Electronic Records Archives being designed in FY 2005. In FY 2004, we
completed modeling NARA's current processes for scheduling and
appraisal, processing electronic Federal records, transferring records
to Federal records cen­ters, and carry­ing out disposition of records by
Federal records centers. In addition, we developed and approved the
long-term redesigned processes for these four processes. We also
analyzed stakeholder needs for automated workflow and collabo­ra­tion
tools to support the redesigned scheduling and appraisal process. This
analysis will inform the prototyping of these tools by the ERA
contractors.

We launched a survey of Federal agencies to determine their baseline
level of satisfaction with NARA's scheduling and appraisal services. The
goal of this survey is to demon­strate improvement in customer
satisfaction with NARA's redesigned scheduling and appraisal services
over the long term.

+-----------------------------+------+-----+------+------+------+-----+
| ##### Performance Data      | **19 | **  | **20 | **20 | **20 | **  |
|                             | 99** | 200 | 01** | 02** | 03** | 200 |
|                             |      | 0** |      |      |      | 4** |
+=============================+======+=====+======+======+======+=====+
| *Performance target for     | *    | *-  | *    | *    | *    | *2  |
| median time for records     | ---* | --* | 260* | 240* | 225* | 20* |
| schedule items completed    |      |     |      |      |      |     |
| (in calendar days)*         |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Median time for records     | 337  | 283 | 237  | 470  | 155  | 253 |
| schedule items completed    |      |     |      |      |      |     |
| (in calendar days)          |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Average age of schedule     | 502  | 461 | 410  | 532  | 274  | 332 |
| items at completion (in     |      |     |      |      |      |     |
| calendar days)              |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Number of schedule items    | 3    | 5,  | 4    | 9    | 4    | 3,  |
| completed                   | ,262 | 664 | ,728 | ,374 | ,686 | 182 |
+-----------------------------+------+-----+------+------+------+-----+
| Number of records schedule  | 469  | 1,  | 659  | 2    | 1    | 541 |
| items completed within 120  |      | 229 |      | ,163 | ,638 |     |
| calendar days of submission |      |     |      |      |      |     |
| to NARA                     |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Percent of records schedule | 14   | 22  | 14   | 21   | 34   | 16  |
| items completed within 120  |      |     |      |      |      |     |
| calendar days of submission |      |     |      |      |      |     |
| to NARA                     |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Percent of Federal agencies | ---  | --- | ---  | ---  | ---  | 57  |
| that are satisfied with     |      |     |      |      |      |     |
| NARA scheduling and         |      |     |      |      |      |     |
| appraisal services          |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+

*FY 2005 Performance Plan Evaluation* We have set our FY 2005 target for
closing out records schedules at a median time of 200 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.

## 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 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 2004 Resources Available to Meet This Goal:** \$52,852,000; 83 FTE

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Establish and test a pilot for remote  |
|                         | * | servicing capability for electronic    |
|                         |  | Official Military Personnel Files for  |
|                         | * | Army.                                  |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Establish pilot programs at selected   |
|                         | * | records centers to store backup and    |
|                         |  | inactive copies of agency electronic   |
|                         | * | media.                                 |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We developed and tested an interface   |
|                         |   | between NARA's Case Management         |
|                         |   | Reporting System and the Defense       |
|                         |   | Personnel Reporting and Information    |
|                         |   | System.                                |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We identified two sites to pilot       |
|                         |   | electronic records media storage in    |
|                         |   | NARA Federal Records Centers.          |
+-------------------------+---+----------------------------------------+

*Discussion* Since 1999, NARA's Records Center Program (RCP) 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 FY 2004, we built an interface between NARA's Case Management
Reporting System (CMRS) and the Army's Defense Personnel Reporting and
Information System (DPRIS), to enable National Personnel Records Center
technicians to access electronic Official Military Personnel Files
(OMPFs) of the Department of the Army. This capability will ensure that
not only are we better able to respond to our customers, but the Army
will be able to ensure the survival of its electronic records and will
no longer need to output its electronic records to textual or microform
media. We are working with the Department of the Army to determine when
and how NARA will be able to access the electronic OMPFs.

We also identified two pilot sites to establish a basic capability
within NARA's RCP system for receiving and storing physical media for
temporary electronic records. An additional pilot site will demonstrate
basic scanning and conversion services. The main challenge is to keep
pace with the competition by bringing high-quality services to market in
a short timeframe.

*FY 2005 Performance Plan Evaluation* We will develop a business model
for the RCP for electronic records services. The knowledge and
experience from our pilots will be used to refine our services and
prices for next year.

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

  -------------------------- ------- ----------------------------------------
  **FY 2004 Objectives**     ****   Survey Federal agencies to identify
                                     electronic systems that generate
                                     electronic records, and develop
                                     priorities for scheduling these records.

                                     

  **Results**                       We identified 7,200 electronic systems
                                     that generate electronic records that
                                     have not yet been scheduled.
  -------------------------- ------- ----------------------------------------

*Discussion* Through Federal agency surveys, NARA identified electronic
systems in Federal agencies that are generating electronic records but
have not yet been scheduled. We identified 7,200 systems this year.

To assist us in setting priorities for helping Federal agencies deal
with electronic records management, we developed criteria, procedures,
and a handbook for identifying the functional areas within the
Government that contain the greatest records management resources. The
criteria used focus our attention on electronic records that are at
greatest risk of not being managed effectively, electronic records that
document citizens' rights and Government accountability, and electronic
records of archival value. We are using these criteria for efficiently
allocating our resources.

We accepted the first electronic records transferred under one of the
new transfer formats---100 logical data records in PDF from the U.S.
Census Bureau. Our accessioning backlog, which are archival records for
which we have taken legal custody from Federal agencies but have not yet
begun processing, increased considerably throughout the year from about
100 million logical data records at midyear to more than 500 million
logical data records by year's end. This amount is understated because
our upgraded Accession Management Information System has not yet counted
everything in our backlog. But looking at just what was transferred to
NARA this year, the growth in electronic records in our custody jumped
more than 500 percent since last year.

+---------------------------------------------+-----+-----+-----+-----+
| ##### Performance Data                      | #   | #   | #   | #   |
|                                             | ### | ### | ### | ### |
|                                             | # 2 | # 2 | # 2 | # 2 |
|                                             | 001 | 002 | 003 | 004 |
+---------------------------------------------+-----+-----+-----+-----+
| Number of electronic records accessioned in | --- | --- | --- | 100 |
| one of the new transfer formats (in logical |     |     |     |     |
| data records)                               |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Size of accessioning backlog (in millions   | --- | --- | --- | 529 |
| of logical data records)                    |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of electronic records transferred    | 2.1 | 7.8 | 6   | 43  |
| (in thousands of files)\*                   |     |     | 8.3 | 2.9 |
+---------------------------------------------+-----+-----+-----+-----+
| *\* Numbers for 2001--2004 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. We will continue to show the number   |     |     |     |     |
| of files for several years so that trends   |     |     |     |     |
| can be observed.*                           |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+

*FY 2005 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 our significantly increasing backlog of archival
electronic records in a meaningful way 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 2004 Objectives**  | * | Conduct online survey of customer      |
|                         | * | satisfaction with online access to     |
|                         |  | electronic records through Access to   |
|                         | * | Archival Databases system.             |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Increase archival electronic holdings  |
|                         | * | that are accessible online by 50       |
|                         |  | percent.                               |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We evaluated the results of an online  |
|                         |   | survey of customer satisfaction with   |
| *"I found my namesake's |   | the Access to Archival Databases       |
| records! Thank you!"*   |   | system.                                |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"Great site! With      |  | We increased our archival electronic   |
| little difficulty, I    |   | holdings that are accessible online by |
| found my father's WWII  |   | 51 percent.                            |
| POW records. Thanks!"*  |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* We conducted an online survey of customer satisfaction with
the Access to Archival Databases (AAD) system on *archives.gov,* which
we launched last year. The survey used the American Customer
Satisfaction Index for customer surveys of Government online services,
which helped us compare our results with those of other Government web
sites. The results of our most recent survey sample show that while our
online visitors give high marks to our content (79, eight points above
the index bench­mark), our navigation could still be improved (64). In
addition, we contracted with two independent experts to perform
laboratory-based usability testing and provide an assessment of the
extent to which AAD met industry standards for a user-friendly web site.
All of these sources pointed to the same conclusion---we need to make
significant revisions in the AAD user interface. We contracted with a
web designer to help us implement many of the recommendations that came
out of the reports.

+-------------------------------------------------+------+------+------+
| ##### Performance Data                          | **20 | **20 | **20 |
|                                                 | 02** | 03** | 04** |
+=================================================+======+======+======+
| *Performance target for percent increase in     | *    | *    | *50* |
| number of archival electronic holdings          | ---* | ---* |      |
| accessible online*                              |      |      |      |
+-------------------------------------------------+------+------+------+
| Percent increase in number of archival          | ---  | ---  | 51   |
| electronic holdings accessible online           |      |      |      |
+-------------------------------------------------+------+------+------+
| Number of archival electronic holdings          | 0    | 47   | 71   |
| accessible online (cumulative logical data      |      |      |      |
| records in millions)                            |      |      |      |
+-------------------------------------------------+------+------+------+
| Number of archival electronic holdings          | 3,7  | 4,7  | 5,6  |
| (cumulative logical data records in millions)   | 13.9 | 42.9 | 29.1 |
+-------------------------------------------------+------+------+------+
| Percent of electronic records available online  | 0    | 1    | 1.4  |
+-------------------------------------------------+------+------+------+
| Number of online visits to AAD (in thousands of | ---  | 489  | 551  |
| visits)                                         |      |      |      |
+-------------------------------------------------+------+------+------+

*FY 2005 Performance Plan Evaluation* We will continue to survey AAD
visitors as we make improvements to our site. We expect to launch the
revised AAD user interface in FY 2005.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 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 736 calendar days.                  |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We installed a major upgrade to our    |
|                         |   | Accession Management Information       |
|                         |   | System.                                |
+-------------------------+---+----------------------------------------+

*Discussion* We significantly underestimated the amount of time it takes
to process transfers of archival electronic records when setting the
target for this new performance metric. This occurred in part because we
set our target prior to fully defining the scope of the metric. We
expect to see the processing time improve in the near term with the
deployment in FY 2004 of an upgraded Accession Management Information
System, which supports the overall accessioning process. In addition, we
added electronic tape autoloaders and modified software to increase the
capacity and speed of initial preser­vation (i.e., making an exact copy
onto archivally acceptable media) of records through our existing
Archival Preservation System. We also integrated digital linear tapes
into the archival tape copying process by purchasing software that
analyzes and certifies new digital linear tapes as free of errors and
defects. While we are extending and expanding our existing systems in an
attempt to keep up with the growth in the volume of electronic records
we are receiving, significant improvements will not be realized until
deployment of ERA.

+-------------------------------------------+-----+-----+-----+-----+
| ##### Performance Data                    | **  | **  | **  | **  |
|                                           | 200 | 200 | 200 | 200 |
|                                           | 1** | 2** | 3** | 4** |
+-------------------------------------------+-----+-----+-----+-----+
| *Performance target for median time to    | *-  | *-  | *-  | *2  |
| make archival electronic accessions       | --* | --* | --* | 50* |
| available for access (in calendar days)*  |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+
| Median time (in calendar days) for        | --- | --- | 450 | 736 |
| processing electronic records accessions  |     |     |     |     |
| from the time of transfer to NARA         |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+
| Number of electronic records transferred  | 2.1 | 6.8 | 6   | 43  |
| (in thousands of files)\*                 |     |     | 8.3 | 2.9 |
+-------------------------------------------+-----+-----+-----+-----+
| Number of electronic records transferred  | --- | --- | --- | 519 |
| (in millions of logical data records)\*   |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+
| Cost per electronic record transferred    | --- | --- | --- | \$0 |
|                                           |     |     |     | .01 |
+-------------------------------------------+-----+-----+-----+-----+
| *\* 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. We will continue to show the     |     |     |     |     |
| number of files for several years so that |     |     |     |     |
| trends can be observed.*                  |     |     |     |     |
+-------------------------------------------+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We will study our existing
processing capabilities and capacities, particularly with regard to
copying and verifying larger volumes of diversely formatted records.
Despite these steps, we expect that our ability to keep up with the
volume of archival electronic records transferred to NARA in the near
future will be overwhelmed.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Award contract for design of the ERA   |
|                         | * | system.                                |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We awarded contracts for a competitive |
|                         |   | system analysis and design of the ERA  |
|                         |   | system to two companies.               |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We deployed PROMT, an earned value     |
|                         |   | management system, for ERA performance |
|                         |   | measurement.                           |
+-------------------------+---+----------------------------------------+

*Discussion* Through the Electronic Records Archives (ERA), we are
creating a digital National Archives that will make permanently valuable
Government records available to anyone, at any time, and in any place,
for as long as needed. A major achievement in FY 2004, we awarded design
contracts to two companies on August 3, beginning a one-year design
competition to determine who will build ERA.

GAO Report, *Records Management: Planning for the Electronic Records
Archives Has Improved* (GAO-04-927), September 2004, notes the progress
we have made toward addressing pro­gram management recommendations that
will ensure that we are effectively manag­ing the ERA program. Some of
that progress is shown in the beginning implemen­tation of a program
management tool, PROMT, which will enable us to perform program con­trol
activities, including earned value management. The EIA-748 compliant
tool meets OMB and GAO standards for earned value management. We began
procurement for indepen­dent verification and validation services to
provide independent oversight of ERA develop­ment efforts.

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. Research and explora­tory
development activities are well aligned with the work of the Interagency
Working Group on Information Technology's Research and Development
program, which is a "high Administration priority" as outlined in a
recent memorandum to agencies, and the President's Management Council's
vision of Government-wide electronic records manage­ment in support of
e-Government. We continued to rely to a large extent on established R&D
management capabilities in partner agencies.

Overall, the number of logical data records in NARA custody increased by
15 percent over last year, an increase of nearly 900 million logical
data records, and a 140-percent increase in three years. 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.

+---------------------------------------------+-----+-----+-----+-----+
| ##### Performance Data                      | **  | **  | **  | **  |
|                                             | 200 | 200 | 200 | 200 |
|                                             | 1** | 2** | 3** | 4** |
+=============================================+=====+=====+=====+=====+
| *Performance target of percent of NARA's    | *   | *   | *   | *   |
| electronic holdings stabilized in           | 40* | 60* | 65* | 99* |
| preparation for their transfer to the       |     |     |     |     |
| Electronic Records Archives*                |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Percent of NARA's electronic holdings are   | 97  | 98  | 97  | 93  |
| stabilized in preparation for their         |     |     |     |     |
| transfer to the Electronic Records Archives |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of logical data records in NARA's    | 2,  | 3,  | 4,  | 5,  |
| custody (in millions)                       | 345 | 714 | 725 | 629 |
+---------------------------------------------+-----+-----+-----+-----+
| Number of logical data records stabilized   | 2,  | 3,  | 4,  | 5,  |
| (in millions)                               | 272 | 642 | 594 | 252 |
+---------------------------------------------+-----+-----+-----+-----+
| Percent of Presidential logical data        | 99  | 49  | 49  | 62  |
| records managed and stabilized              |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of Presidential logical data records | 2.2 | 3   | 3   | 3   |
| (in millions)                               |     | 5.3 | 5.3 | 5.3 |
+---------------------------------------------+-----+-----+-----+-----+
| Number of Presidential logical data records | 2.2 | 1   | 1   | 2   |
| stabilized (in millions)                    |     | 7.3 | 7.3 | 2.1 |
+---------------------------------------------+-----+-----+-----+-----+
| Per megabyte cost for stabilizing archival  | --- | --- | \$4 | \$4 |
| electronic records                          |     |     | .50 | .77 |
+---------------------------------------------+-----+-----+-----+-----+
|                                             |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* Our challenge in FY 2005 is to
effectively manage the performance of two contractors so that they meet
their cost, schedule, and technical objectives. We expect to select one
contractor to develop the ERA system by the end of the year.

## 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 2004 Resources Available to Meet This Goal:** \$146,092,000; 2,352
FTE

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  |   | Meet or exceed NARA\'s published       |
|                         |   | standards for access to records and    |
|                         |   | services, as noted below:              |
+-------------------------+---+----------------------------------------+
|                         | * | 90 percent of written requests are     |
|                         | * | answered within 10 working days;       |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | 85 percent of Freedom of Information   |
|                         | * | Act (FOIA) requests are completed      |
|                         |  | within 20 working days;                |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | 70 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;                    |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | 90 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;                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | 75 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 95 percent of written      |
|                         |   | requests within 10 working days.       |
| *"Thanks for going the  |   |                                        |
| extra mile!"*           |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I appreciate a "real" |  | We completed 67 percent of all FOIA    |
| person helping from the |   | requests for Federal records within 20 |
| other end of the        |   | working days.                          |
| world!"\                |   |                                        |
| ---*an Army major in    |   |                                        |
| Kuwait                  |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I'm spreading the     |  | We answered 75 percent of military     |
| word to all my fellow   |   | service separation records requests    |
| vets out there what an* |   | within 10 working days.                |
+-------------------------+---+----------------------------------------+
| *outstanding job you    |   |                                        |
| folks are doing!"*      |   |                                        |
+-------------------------+---+----------------------------------------+
| *"The quality of        |  | We furnished 99 percent of requested   |
| NARA's*                 |   | items within one hour of request or of |
|                         |   | scheduled pull time.                   |
| *recordkeeping and      |   |                                        |
| research makes me*      |   |                                        |
+-------------------------+---+----------------------------------------+
| *proud to be an         |   |                                        |
| American."*             |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I am extremely        |  | We furnished records at the appointed  |
| impressed by the*       |   | time for 99 percent of customers with  |
|                         |   | appointments.                          |
+-------------------------+---+----------------------------------------+
| *customer service       |   |                                        |
| provided by*            |   |                                        |
+-------------------------+---+----------------------------------------+
| *NARA staff."*          |  | We had ready 96 percent of Federal     |
|                         |   | agency reference requests when         |
|                         |   | promised to the customer.              |
+-------------------------+---+----------------------------------------+

+-------------------------+---+----------------------------------------+
| *"I found your          |   |                                        |
| expertise to be*        |   |                                        |
+-------------------------+---+----------------------------------------+
| *extremely helpful as   |  | Of the records we shipped to Federal   |
| Bermuda endeavors to    |   | agencies, 99.99 percent were the       |
| develop Freedom of      |   | records agencies requested.            |
| Information             |   |                                        |
| Legislation."*          |   |                                        |
+-------------------------+---+----------------------------------------+
| ########                |   |                                        |
+-------------------------+---+----------------------------------------+
| *"My search for         |  | We completed 99.9 percent of our       |
| military records on*    |   | archival fixed-fee reproduction orders |
|                         |   | through OFAS in 35 days or less.       |
| *my                     |   |                                        |
| great-great-grandfather |   |                                        |
| was a success! Your     |   |                                        |
| services are            |   |                                        |
| invaluable."*           |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I can't say enough    |  | Our users rated 99 percent of our      |
| about how good this     |   | public education programs and          |
| workshop was, and how   |   | workshops as meeting their             |
| relevant it was to my   |   | expectations.                          |
| job."*                  |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* Once again we met or exceeded nearly all of our customer
service targets. Staff and volunteers take these targets very seriously
and, as frequently noted by our customers, go above and beyond what is
required to meet our customers' expectations. Of particular note this
year is that our customers received answers to their requests for
military service separation records within 10 days 75 percent of the
time, a 100-percent increase over last year. This is a major step toward
getting us to our target of 95 percent in FY 2005.

While the timeliness of our responses to Freedom of Information Act
(FOIA) requests improved over last year, we are still far short of our
target for completing 85 percent of FOIA requests for Federal records
within 20 working days. A combination of factors contributes to this.
FOIAs for military records take considerably longer than the 20-day
standard if the request is for a record that was lost in the 1973 fire
at the National Personnel Records Center and the data must be
reconstructed from other sources, or if the record has been borrowed by
another agency. Also, the length 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 increased to 45 working days in FY 2004, a 13-percent
increase over last year and a steady upward trend since FY 2001, when
the average age of a completed FOIA was 9 days. 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.
Fifty-two percent of the more than 5,000 FOIAs 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 10
states (Florida, Alabama, Arkansas, Georgia, Kentucky, Maryland,
Delaware, Louisiana, Mississippi, and Missouri) and the District of
Columbia. And, with the help of a small grant from the Peck Stackpoole
Foundation and a partnership with Howard University's Computer Science
Department, we have begun a pilot to index and provide online access to
Headquarters Marriage Certificate files, some of the most popular files
in this series for genealogists.

+------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data       | **  | **  | **  | **  | **  | **  |
|                              | 199 | 200 | 200 | 200 | 200 | 200 |
|                              | 9** | 0** | 1** | 2** | 3** | 4** |
+==============================+=====+=====+=====+=====+=====+=====+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| written requests answered    | --* | 80* | 80* | 85* | 85* | 90* |
| within 10 working days*      |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of written requests  | 89  | 92  | 93  | 93  | 94  | 95  |
| answered within 10 working   |     |     |     |     |     |     |
| days                         |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| Freedom of Infor­mation Act   | --* | 80* | 80* | 85* | 85* | 85* |
| requests completed within 20 |     |     |     |     |     |     |
| working days*                |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of Freedom of        | 35  | 27  | 27  | 76  | 61  | 67  |
| Information Act requests for |     |     |     |     |     |     |
| Federal records completed    |     |     |     |     |     |     |
| within 20 working days       |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of FOIAs processed    | 6,  | 8,  | 7,  | 8,  | 4,  | 5,  |
|                              | 911 | 751 | 634 | 824 | 830 | 224 |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Annual cost to process FOIAs | --- | --- | --- | \$1 | \$1 | \$1 |
| (in millions)                |     |     |     | .54 | .35 | .43 |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Annual per FOIA cost         | --- | --- | --- | \$  | \$  | \$  |
|                              |     |     |     | 175 | 265 | 272 |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *-  | *-  | *-  | *-  | *   |
| requests for mili­tary        | --* | --* | --* | --* | --* | 70* |
| service 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  |
| military service separation  |     |     |     |     |     |     |
| records at NPRC answered     |     |     |     |     |     |     |
| within 10 working days       |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of military service   | --- | --- | 297 | 361 | 390 | 372 |
| separation records (DD-214)  |     |     |     |     |     |     |
| requests received (in        |     |     |     |     |     |     |
| thousands)                   |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Average price per request    | --- | --- | --- | --- | \   | \   |
| for military service         |     |     |     |     | $29 | $29 |
| separation records           |     |     |     |     | .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  | 7   | 3   | 4   | 28  | 28  | 48  |
| military service records at  |     |     |     |     |     |     |
| NPRC answered within 10      |     |     |     |     |     |     |
| working days                 |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| items requested in our       | --* | 95* | 95* | 95* | 95* | 95* |
| research rooms furnished     |     |     |     |     |     |     |
| within one hour of request   |     |     |     |     |     |     |
| or scheduled pull time*      |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of items requested   | 94  | 89  | 93  | 94  | 96  | 99  |
| in our research rooms        |     |     |     |     |     |     |
| furnished within one hour of |     |     |     |     |     |     |
| request or scheduled pull    |     |     |     |     |     |     |
| time                         |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of researchers        | --- | --- | --- | 24  | 20  | 16  |
| visiting our research rooms  |     |     |     | 8.7 | 4.5 | 8.8 |
| (in thousands)               |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of items furnished in | 833 | 918 | 1,  | 613 | 607 | 879 |
| our research rooms (in       |     |     | 056 |     |     |     |
| thousands)                   |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of items furnished on | 501 | 818 | 985 | 578 | 584 | 866 |
| time in our research rooms   |     |     |     |     |     |     |
| (in thousands)               |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| customers with appointments  | --* | 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        | 9.7 | 9.4 | 9.7 | 9.8 | 9.9 | 9.3 |
| records are waiting at the   |     |     |     |     |     |     |
| appointed time               |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| Federal agency refer­ence     | --* | 90* | 90* | 90* | 90* | 90* |
| requests in Federal records  |     |     |     |     |     |     |
| centers that are ready when  |     |     |     |     |     |     |
| promised to the customer*    |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of Federal agency    | 81  | 79  | 93  | 92  | 94  | 96  |
| 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* |
| Federal agencies are the     |     |     |     |     |     |     |
| records they requested*      |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of records center    | --- | --- | 99  | 99  | 99  | 99  |
| shipments to Federal         |     |     | .99 | .99 | .99 | .99 |
| agencies are the records     |     |     |     |     |     |     |
| they requested               |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *-  | *-  | *   | *   | *   |
| archival fixed-fee           | --* | --* | --* | 50* | 60* | 75* |
| reproduction orders through  |     |     |     |     |     |     |
| OFAS are completed in 35     |     |     |     |     |     |     |
| working days or less*        |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of archival          | --- | --- | --- | 88  | 99  | 9   |
| fixed-fee repro­duction       |     |     |     |     |     | 9.9 |
| orders through OFAS are      |     |     |     |     |     |     |
| comple­ted in 35 working days |     |     |     |     |     |     |
| or less                      |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Average per order cost to    | --- | --- | --- | --- | \   | \   |
| operate fixed-fee ordering   |     |     |     |     | $26 | $29 |
|                              |     |     |     |     | .34 | .35 |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Average order completion     | --- | --- | --- | 20  | 14  | 9   |
| time (days)                  |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for      | *-  | *   | *   | *   | *   | *   |
| percent of education         | --* | 90* | 90* | 95* | 95* | 95* |
| programs, workshops, and     |     |     |     |     |     |     |
| training courses meeting     |     |     |     |     |     |     |
| attendees' expectations*     |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Percent of education         | 90  | 95  | 97  | 96  | 95  | 99  |
| programs, workshops, and     |     |     |     |     |     |     |
| training courses meeting     |     |     |     |     |     |     |
| attendees' expectations      |     |     |     |     |     |     |
+------------------------------+-----+-----+-----+-----+-----+-----+
| Number of program attendees  | 6,  | 6,  | 6,  | 8,  | 7,  | 8,  |
|                              | 848 | 971 | 291 | 447 | 601 | 288 |
+------------------------------+-----+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* For customer service targets that
we currently meet, we expect t,o 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 2005.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Ensure 40 percent of NARA services are |
|                         | * | available online.                      |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We made 40 percent of our services     |
|                         |   | available online.                      |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"Order Online! is a    |  | We launched Order Online!, a web-based |
| much welcome addition   |   | capability that allows Internet users  |
| to your website and     |   | to order copies of military service    |
| services!"*             |   | and family history records.            |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I especially          |  | We piloted an online registration      |
| appreciate the ability  |   | management system.                     |
| to order Civil War      |   |                                        |
| pension records         |   |                                        |
| online."*               |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* The launch of Order Online! this year was a success, and
customer feedback on its usability, while informally collected, has been
very positive. The web-based application allows Internet users to make
and pay for online orders of Federal Military Pension Applications
(1775--1916), Census Records (1790--1930), Military Bounty-Land Warrant
Application Files (1775--1855), and Land Entry Files. The application
has been available to users 98 percent of the time, and more than 23,000
users have accessed the site since its launch. Customers can still order
these records with the old paper forms, but feedback indicates that
users find the online capability easier.

We piloted an online registration management system that was implemented
shortly after the end of the fiscal year. When fully deployed, the
system will allow NARA customers to register and pay for records
management classes and conferences via the Internet. Currently, the
system is used for registering students to NARA's records management
classes at the National Archives at College Park and may eventually be
used for all public events and workshops. As part of the full
implementation, we will use *Pay.gov*, a Government-wide transaction
portal sponsored by the Department of the Treasury, to process payment
for classes by credit or debit card, verify payment with registration,
and send an e-mail with confirmation of registration.

+--------------------------------------+-----+-----+-----+-----+-----+
| ##### Performance Data               | **  | **  | **  | **  | **  |
|                                      | 200 | 200 | 200 | 200 | 200 |
|                                      | 0** | 1** | 2** | 3** | 4** |
+======================================+=====+=====+=====+=====+=====+
| Online visits to NARA's web site (in | 10, | 16, | 19, | 30, | 30, |
| thousands)                           | 096 | 106 | 538 | 943 | 428 |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cost to provide NARA services online | --- | --- | --- | \$0 | \$0 |
| per visit                            |     |     |     | .16 | .13 |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for percent of   | *-  | *-  | *   | *   | *   |
| NARA services available online*      | --* | --* | 20* | 30* | 40* |
+--------------------------------------+-----+-----+-----+-----+-----+
| Percent of NARA services available   | --- | 24  | 25  | 30  | 40  |
| online                               |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of NARA services online       | --- | 29  | 30  | 36  | 48  |
+--------------------------------------+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We are working on online services
to be deployed in FY 2005, which will enable us to meet our target of 50
percent of our online services online. Our plans to implement online
ordering and payment of merchandise, such as printed publications,
mementos, and other specialty products from catalogs and marketing
publications sold by NARA, are on hold while we review the results of a
business process reengineering study to analyze alternatives, establish
requirements, and develop a concept of operations for merchandising.
This capability will require an enhancement to Order Online!

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

  -------------------------- ------- ----------------------------------------
  **FY 2004 Objectives**     ****   Describe 30 percent of NARA traditional
                                     holdings in the Archival Research
                                     Catalog.

                             ****   Describe 30 percent of NARA artifact
                                     holdings in the Archival Research
                                     Catalog.

                             ****   Describe 5 percent of NARA electronic
                                     holdings in the Archival Research
                                     Catalog.

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

+-------------------------+---+----------------------------------------+
| **Results**             |  | We described 33 percent of NARA        |
|                         |   | traditional holdings in the Archival   |
| *"ARC is a great        |   | Research Catalog (ARC).                |
| resource---keep up the  |   |                                        |
| good work!"*            |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
| *"I am interested in    |  | We described 40 percent of NARA        |
| our Indian heritage and |   | artifact holdings in the ARC.          |
| have found that ARC is  |   |                                        |
| a helpful tool."*       |   |                                        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We described 10 percent of NARA        |
|                         |   | electronic holdings in ARC.            |
+-------------------------+---+----------------------------------------+

*Discussion* While we planned to only roll out ARC to 50 percent of our
units this year, we were actually able to implement it at 97 percent of
our units nationwide. Rollout includes technical implementation of the
data entry system and training staff to enter new descriptions of our
holdings into ARC. We will complete the rollout to one last region in FY
2005. Description work has significantly increased this year, with more
than 200,000 artifacts, 500 million logical data records, and nearly 1
million cubic feet of traditional holdings described and searchable at
the series or collection level in ARC via the Internet.

+--------------------------------------+-----+-----+-----+-----+-----+
| ##### Performance Data               | **  | **  | **  | **  | **  |
|                                      | 200 | 200 | 200 | 200 | 200 |
|                                      | 0** | 1** | 2** | 3** | 4** |
+======================================+=====+=====+=====+=====+=====+
| Percent of nationwide archival       | 1   | 1   | --- | --- | --- |
| holdings described in an online      | 3.9 | 3.2 |     |     |     |
| catalog                              |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cubic feet of archival holdings (in  | 2,  | 2,  | --- | --- | --- |
| thousands)                           | 768 | 915 |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Cubic feet of archival holdings      | 386 | 386 | --- | --- | --- |
| described in an online catalog       |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for traditional  | *-  | *-  | *   | *   | *   |
| holdings in an online catalog*       | --* | --* | 20* | 25* | 30* |
+--------------------------------------+-----+-----+-----+-----+-----+
| Percent of traditional holdings in   | --- | --- | 19  | 20  | 33  |
| an online catalog                    |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of traditional holdings       | --- | --- | 550 | 602 | 1,  |
| described in an online catalog       |     |     |     |     | 033 |
| (thousands of cubic feet)            |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of traditional holdings in    | --- | --- | 2,  | 3,  | 3,  |
| NARA (thousands of cubic feet)       |     |     | 890 | 025 | 157 |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for artifact     | *-  | *-  | *   | *   | *   |
| holdings in an online catalog*       | --* | --* | 20* | 25* | 30* |
+--------------------------------------+-----+-----+-----+-----+-----+
| Percent of artifact holdings in an   | --- | --- | 19  | 17  | 40  |
| online catalog                       |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of artifact holdings          | --- | --- | 90  | 90  | 215 |
| described in an online catalog       |     |     |     |     |     |
| (thousands of items)                 |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of artifact holdings in NARA  | --- | --- | 470 | 528 | 540 |
| (thousands of items)                 |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| *Performance target for electronic   | *-  | *-  | *0* | *0* | *5* |
| holdings in an online catalog*       | --* | --* |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Percent of electronic holdings in an | --- | --- | 0   | 0   | 10  |
| online catalog                       |     |     | .02 | .02 |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of electronic holdings        | --- | --- | 1   | 1   | 536 |
| described in an online catalog       |     |     |     |     |     |
| (millions of logical data records)   |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of electronic holdings in     | --- | --- | 3,  | 4,  | 5,  |
| NARA (millions of logical data       |     |     | 714 | 743 | 629 |
| records)                             |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of ARC users (in thousands of | --- | --- | 713 | 1,  | --- |
| user hits\*)                         |     |     |     | 884 |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of ARC users (in thousands of | --- | --- | --- | --- | 158 |
| 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 2005 Performance Plan Evaluation* We anticipate meeting our targets
set for 2005. 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 2004 Objectives**     ****   Determine the universe of records
                                     subject to the automatic
                                     declassification provision of E.O.
                                     12958, as amended, by the required
                                     reporting through the declassification
                                     plans of Executive branch agencies.

                                     

                             ****   Implement solutions to impediments to
                                     meeting the December 31, 2006, deadline
                                     for automatic declassification.

                                     

                             ****   Develop guidance about how to collect
                                     data on the number of classification
                                     decisions made in automated systems,
                                     including e-mail, and distribute to
                                     Executive branch agencies.

                                     

  **Results**                       98 percent of the agency
                                     declassification plans we requested were
                                     submitted to ISOO.

                                     

                                    We are circulating for review by
                                     agencies a draft referral standard to
                                     assist agencies in meeting the automatic
                                     declassification deadline.

                                     

                                    We issued guidance to agencies on
                                     collecting metric data on classification
                                     decisions made in automated systems.
  -------------------------- ------- ----------------------------------------

*Discussion* 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, 30 agencies did not need to develop
plans because they had no records subject to automatic declassification.
Of the remaining agencies, 27 submitted plans that were found acceptable
and 13 submitted plans that needed additional work to be acceptable.
Five agencies did not provide a plan. We are working with those agencies
that did not submit acceptable plans. As one solution to meeting the
December 31, 2006, deadline for automatic declassification, ISOO is
working on standardizing the referral process to 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      | **19 | **  | **20 | **20 | **20 | *   |
|                             | 99** | 200 | 01** | 02** | 03** | *20 |
|                             |      | 0** |      |      |      | 04\ |
|                             |      |     |      |      |      | *** |
+-----------------------------+------+-----+------+------+------+-----+
| Number of pages             | 1    | 7   | 1    | 44.4 | 43.1 | TBD |
| declassified                | 26.8 | 5.0 | 00.1 |      |      |     |
| Govern­ment-wide (in         |      |     |      |      |      |     |
| millions of pages)          |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Per page cost of            | \$   | \$3 | \$   | \$   | \$   | TBD |
| Government-wide             | 1.84 | .08 | 2.32 | 2.55 | 1.25 |     |
| declassification            |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| Total cost of               | \$2  | \   | \$2  | \$11 | \$   | TBD |
| declassification            | 33.1 | $23 | 31.9 | 2.96 | 53.8 |     |
| Govern­ment-wide (in         |      | 0.9 |      |      |      |     |
| millions of dollars)        |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+
| *\* FY 2004 data will be    |      |     |      |      |      |     |
| collected from Federal      |      |     |      |      |      |     |
| agencies and reported to    |      |     |      |      |      |     |
| Congress in June 2005.*     |      |     |      |      |      |     |
+-----------------------------+------+-----+------+------+------+-----+

*FY 2005 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 2004 Objectives**     ****   Conduct a survey of those record groups
                                     that are not being reviewed by the
                                     originating agency to determine which
                                     agencies have equities in the records
                                     and make appropriate referrals to those
                                     agencies.

                                     

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

                                     

  **Results**                       We surveyed 7,360 cubic feet of records
                                     that are not being reviewed by the
                                     originating agency to determine which
                                     agencies have equities in the records
                                     and make appropriate referrals to those
                                     agencies.

                                     

                                    We released 993,567 pages of
                                     declassified Federal records and 93,588
                                     pages of declassified Presi­den­tial
                                     records.

                                     

                                    We scanned 500,343 pages of Presidential
                                     materials eligible for declassification
                                     review as part of the Remote Archives
                                     Capture project.
  -------------------------- ------- ----------------------------------------

*Discussion* We created a referral center to streamline the process of
agency review of referred materials in accessioned records. Agencies
have been asked to determine if their equity in documents is releasable
or exempt. We expect this center to eventually provide a one-stop,
systematic way for agencies to examine and clear their referred
materials. Responding to the needs of our customers, NARA staff
increased efforts to process for release those records series known to
be in high demand by researchers that have undergone declassification
review by other agencies. We completed a survey of those record groups
that not being reviewed by the originating agencies to identify the
equities of other agencies that may still have concerns about
information in the records. These agencies are those that receive, but
do not generate, many classified records. We now must work with ISOO to
encourage agencies to take responsibility for reviewing their records or
negotiate an agreement with another agency to do the review on their
behalf.

For classified materials in the Presidential library system for which we
have no delegated declassification authority, we established a
partnership with the Central Intelligence Agency (CIA) to prepare and
scan classified materials for distribution to agencies with equities in
the documents. CIA is funding all of the technological development,
hard­ware, and software for the project.

+--------------------------------+-----+-----+-----+-----+-----+-----+
| ##### Performance Data         | **  | **  | **  | **  | **  | **  |
|                                | 199 | 200 | 200 | 200 | 200 | 200 |
|                                | 9** | 0** | 1** | 2** | 3** | 4** |
+================================+=====+=====+=====+=====+=====+=====+
| Backlog of Federal records     | 20, | 52, | 25, | 20, | 18, | 25, |
| requiring declassification at  | 000 | 864 | 029 | 980 | 980 | 581 |
| start of year (in thousands)   |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for annual | *-  | *   | *   | *   | *   | --- |
| percentage of Federal records  | --* | 50* | 50* | 85* | 90* |     |
| NARA reviewed that are more    |     |     |     |     |     |     |
| than 25 years old for which    |     |     |     |     |     |     |
| NARA has declassification      |     |     |     |     |     |     |
| authority*                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual percentage of Federal   | 52  | 15  | 9   | 12  | 7   | 2   |
| records NARA reviewed that are |     |     |     |     |     |     |
| more than 25 years old for     |     |     |     |     |     |     |
| which NARA has                 |     |     |     |     |     |     |
| declassi­fication authority     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Backlog of Presidential        | 1,  | 1,  | 1,  | 1,  | 960 | 806 |
| materials requiring            | 500 | 978 | 562 | 240 |     |     |
| declassification at start of   |     |     |     |     |     |     |
| year (in thousands)            |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| *Performance target for annual | *-  | *   | *   | *   | *   | *-  |
| percentage of Presidential     | --* | 25* | 25* | 85* | 90* | --* |
| records NARA reviewed that are |     |     |     |     |     |     |
| more than 25 years old for     |     |     |     |     |     |     |
| which NARA has                 |     |     |     |     |     |     |
| declassification authority*    |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual percentage of           | 48  | 21  | 21  | 23  | 16  | 17  |
| Presidential records NARA      |     |     |     |     |     |     |
| reviewed that are more than 25 |     |     |     |     |     |     |
| years old for which NARA has   |     |     |     |     |     |     |
| declassi­fication authority     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 11, | 8,  | 2,  | 2,  | 1,  | 547 |
| reviewed                       | 031 | 052 | 129 | 490 | 257 |     |
|                                |     |     |     |     |     |     |
| (in thousands)                 |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 8,  | 3,  | 807 | 402 | 340 | 116 |
| declassi­fied (in thousands)    | 467 | 697 |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Federal pages | 17, | 7,  | 1,  | 2,  | 1,  | 994 |
| released                       | 026 | 678 | 788 | 184 | 092 |     |
|                                |     |     |     |     |     |     |
| (in thousands)                 |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 713 | 416 | 322 | 280 | 154 | 138 |
| pages reviewed (in thousands)  |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+
| Annual number of Presidential  | 305 | 291 | 219 | 119 | 71  | 94  |
| pages declassi­fied (in         |     |     |     |     |     |     |
| thousands)                     |     |     |     |     |     |     |
+--------------------------------+-----+-----+-----+-----+-----+-----+

  -------------------------------- ------- ------- ------- ------- ------- ---------
  *Performance target for annual   *\--*   *\--*   *300*   *300*   *600*   *300*
  number of Presidential pages                                             
  scanned (in thousands)*                                                  

  Annual number of Presidential    351     160     322     332     470     500
  pages scanned (in thousands)                                             

  Annual number of Presidential    291     285     207     182     71      94
  pages released (in thousands)                                            

  Cost per page declassified       *\--*   *\--*   *\--*   *\--*   *\--*   \$23.44
  (Federal and Presidential)                                               
  -------------------------------- ------- ------- ------- ------- ------- ---------

*FY 2005 Performance Plan Evaluation* Meeting the targets of Executive
Order 12958, as amended, will be a significant challenge.

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

  -------------------------- ------- ----------------------------------------
  **FY 2004 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 focused on preparing to move the records to their
permanent location at the William J. Clinton Library and Museum. This
included adding more than 4,000 containers to the location register and
verifying box descriptions and locations of every archival container in
Clinton's holdings. We also reboxed approximately 6,000 containers to
accommodate the compact shelving of the permanent facility and assigned
locations in the new facility to its archival containers. These steps
were all essential to ensure sufficient intellectual control over the
move. These preparations contributed to finishing the move of records to
the new facility ahead of schedule and will help ensure that staff are
able to respond to FOIA requests when the records become subject to FOIA
on January 20, 2006.

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

*FY 2005 Performance Plan Evaluation* We anticipate that staff will be
able to devote more resources to archival processing in FY 2005 after
the opening and dedication of the library.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | 86 percent of all NHPRC-assisted       |
|                         | * | projects produce results promised in   |
|                         |  | grant applications approved by the     |
|                         | * | Commission.                            |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | Of the NHPRC-assisted projects         |
|                         |   | completed, 88 percent produced the     |
| *"For any community,    |   | results promised in their grant        |
| the*                    |   | applications.                          |
|                         |   |                                        |
| *process of looking at  |   |                                        |
| records and*            |   |                                        |
+-------------------------+---+----------------------------------------+
| *thinking about how to  |   |                                        |
| keep them*              |   |                                        |
+-------------------------+---+----------------------------------------+
| *changes the way people |  | We successfully placed all of our      |
| look at their lives and |   | grant announcements on the             |
| what is important to    |   | *Grants.gov* web site.                 |
| record for the          |   |                                        |
| future."*               |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* We continued meeting our target for successful completion
of our grant proj­ects. This year we completed 96 projects, 12 of which
were deemed unsuccessful. About two-thirds of the completed projects
were publications efforts, and one-third was records projects. From the
work accomplished this year, more than 1,800 cubic feet of records were
preserved and made accessible, and 13 documentary editions were
pub­lished. The average size of grants completed this year was \$68,209.
We also worked with *Grants.gov*, one of the 25 Presidential
e-Government initiatives, to make our grants announcements and forms
available to the public via *Grants.gov.*

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

+---------------------------------+----+-----+-----+-----+-----+-----+
| ##### Performance Data          | ** | **  | **  | **  | **  | **  |
|                                 | 19 | 200 | 200 | 200 | 200 | 200 |
|                                 | 99 | 0** | 1** | 2** | 3** | 4** |
|                                 | ** |     |     |     |     |     |
+=================================+====+=====+=====+=====+=====+=====+
| *Performance target for percent | -  | *   | *   | *   | *   | *   |
| of NHPRC grant-funded projects  | -- | 82* | 84* | 84* | 85* | 86* |
| produced results promised in    |    |     |     |     |     |     |
| grant applications*             |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of NHPRC grant-funded   | 1  | 94  | 91  | 79  | 86  | 88  |
| projects that produced results  | 00 |     |     |     |     |     |
| promised in grant applications  |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of NHPRC-assisted        | 89 | 67  | 115 | 104 | 72  | 96  |
| projects completed              |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of NHPRC-assisted        | 89 | 63  | 105 | 82  | 62  | 84  |
| projects that produced the      |    |     |     |     |     |     |
| results promised                |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of traditional records   | -  | --- | --- | --- | --- | 1,  |
| preserved and made accessible   | -- |     |     |     |     | 803 |
| through our grants projects (in |    |     |     |     |     |     |
| cubic feet)                     |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of documentary editions  | -  | --- | --- | --- | --- | 13  |
| published through our grants    | -- |     |     |     |     |     |
| project (in volumes)            |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of NARA's grants        | -  | --- | \-- | --- | --- | 100 |
| announced on *Grants.gov*       | -- |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We anticipate meeting our target
for FY 2005. 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 much more useful products,
it increases the possibility of projects being rated unsuccessful in
meeting their criteria.

## 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 2004 Resources Available to Meet This Goal:** \$63,360,000; 150 FTE

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Complete 90 percent of the renovation  |
|                         | * | of the National Archives Building.     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete renovation and expansion of   |
|                         | * | the Reagan Library.                    |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete renovation and addition to    |
|                         | * | the Ford Museum.                       |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete move of Clinton Presidential  |
|                         | * | Materials Project to new library       |
|                         |  | facility.                              |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete 75 percent of the             |
|                         | * | construction of the Southeast Regional |
|                         |  | Archives.                              |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Acquire land for Pacific Alaska        |
|                         | * | Regional Archives.                     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Review conclusions from the            |
|                         | * | cost-benefit study for the storage and |
|                         |  | preservation of military personnel     |
|                         | * | records and develop a course of        |
|                         | * | action.                                |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We completed 95 percent of the         |
|                         |   | renovation activities of the National  |
|                         |   | Archives Building.                     |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We opened the new William G. McGowan   |
|                         |   | Theater in the National Archives       |
|                         |   | Building.                              |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed construction of a         |
|                         |   | 23,400-square-foot addition to the     |
|                         |   | Reagan Library for new temporary       |
|                         |   | exhibits and a multipurpose learning   |
|                         |   | center and renovated 3,600 square feet |
|                         |   | of support space.                      |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We added 8,800 square feet and         |
|                         |   | renovated 15,000 square feet of space  |
|                         |   | in the Ford Museum, the first major    |
|                         |   | alteration since its opening in 1982.  |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed 75 percent of the         |
|                         |   | construction of the Southeast Regional |
|                         |   | Archives building in East Point, GA.   |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed a study of digitization   |
|                         |   | and facility storage options for       |
|                         |   | long-term preservation of military     |
|                         |   | service records, which indicated that  |
|                         |   | the best choice was to move to a new   |
|                         |   | facility.                              |
+-------------------------+---+----------------------------------------+

*Discussion* Another important milestone was met this year in our final
steps to complete the renovation of the National Archives Building---we
opened the William G. McGowan Theater to the public. The 290-seat
theater features the latest technology and equipment in a design that
echoes the 1930s architecture of the National Archives Building and was
funded entirely by a private gift. The McGowan Theater is expected to be
one of the nation\'s leading centers for documentary film as well as a
prominent forum for the discussion and exploration of great issues of
American history, democracy, and govern­ment. In addition, our new
research facilities opened this year, consolidating into one convenient
location preeminent genealogy resources in the Washington area.

The 23,400-square-foot Ronald Reagan Library addition was completed this
year to include new exhibit space and a multipurpose learning center.
The space opened with a Lewis and Clark exhibition, marking the 200th
anniversary of their expedition, and later was used by record numbers of
visitors after the death of President Reagan.

We moved all the Clinton Presidential and Vice Presidential materials
from temporary storage to the new Clinton Library in Little Rock, AR.
Preparations are under way for the opening of the William J. Clinton
Presidential Library and Museum, scheduled for dedication on November
18, 2004.

During the year, we relocated 100,000 cubic feet of low-use regional
archival records to the new archival bay in Lee\'s Summit, MO, that
meets our archival storage standard (NARA 1571). These records were
previously stored in regional space that did not meet archival
environmental or facility standards. With the relocation of these
records, NARA\'s regional archives system went from having none of its
holdings under our archival storage standard to over 15 percent. In FY
2005, NARA will begin moving into the new Southeast Regional Archives in
Atlanta, which will place another 100,000 cubic feet of regional
archival records under appropriate space and environmental standards, or
about one-third of all regional holdings.

After an extensive analysis of the costs of digitizing military
personnel records versus continued storage of paper records at the
National Personnel Records Center, we chose the least costly option---to
continue to rely on paper records---to meet long-term preser­vation and
access needs. An important aspect of that decision will be the safe
storage of these records in a custom-built leased facility within 50
miles of the current site. Our next steps will be to develop facility
requirements and make plans for the records, staff, and equipment moves.

+----------------------------------------------------------+-----+-----+
| ##### Performance Data                                   | **  | **  |
|                                                          | 200 | 200 |
|                                                          | 3** | 4** |
+==========================================================+=====+=====+
| Percent of archival traditional holdings in appropriate  | --- | 52  |
| space                                                    |     |     |
+----------------------------------------------------------+-----+-----+
| Cubic feet of archival traditional holdings (in          | 3,  | 3,  |
| thousands)                                               | 025 | 100 |
+----------------------------------------------------------+-----+-----+
| Percent of artifact holdings in appropriate space        | --- | 42  |
+----------------------------------------------------------+-----+-----+
| Number of artifact holdings (in thousands)               | 3,  | 540 |
|                                                          | 024 |     |
+----------------------------------------------------------+-----+-----+
| Percent of logical data record holdings in appropriate   | --- | 100 |
| space                                                    |     |     |
+----------------------------------------------------------+-----+-----+
| Number of logical data record holdings (in millions)     | 4,  | 5,  |
|                                                          | 743 | 629 |
+----------------------------------------------------------+-----+-----+
| Cost of archival storage space per cubic feet of         | --- | \$6 |
| traditional holdings stored                              |     | .16 |
+----------------------------------------------------------+-----+-----+
|                                                          |     |     |
+----------------------------------------------------------+-----+-----+

*FY 2005 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 2004 Objectives**  | * | Based on FY 2003 assessment of Federal |
|                         | * | records centers, develop repair or     |
|                         |  | relocation plans for bringing NARA     |
|                         | * | records centers into compliance with   |
|                         | * | 2009 regulatory storage standards.     |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete shelving and move into new    |
|                         | * | records center facility in Dayton.     |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Expand records center facility at      |
|                         | * | Lenexa and move records into facility. |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete a Solicitation for Offer and  |
|                         | * | Lease Agreement for a facility in      |
|                         |  | Southern California to replace the     |
|                         | * | Laguna Niguel records center.          |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete construction of a new records |
|                         | * | center facility in Atlanta to replace  |
|                         |  | the East Point records center and the  |
|                         | * | Palmetto and Birmingham annexes.       |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Close Bluegrass Annex in Philadelphia. |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| **Results**             |  | We developed a facility repair plan to |
|                         |   | bring NARA records centers into        |
|                         |   | compliance with regulatory storage     |
|                         |   | standards by the 2009 deadline.        |
+-------------------------+---+----------------------------------------+
| #######                 |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We accepted five bays at the new       |
|                         |   | Dayton records center building,        |
|                         |   | completed shelving, and moved records  |
|                         |   | into the bays.                         |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We took occupancy of the last of four  |
|                         |   | bays at Lenexa, and have an option for |
|                         |   | four more.                             |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed a lease agreement for a   |
|                         |   | facility in Southern California to     |
|                         |   | replace the Laguna Niguel records      |
|                         |   | center.                                |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We took occupancy of a new             |
|                         |   | 350,000-square-foot Southeast Regional |
|                         |   | Records Center, which will eventually  |
|                         |   | accommodate 1.75 million cubic feet of |
|                         |   | records.                               |
+-------------------------+---+----------------------------------------+

*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 began planning for the 2009 deadline by
surveying our regional facilities about the scope of necessary
improvements and developing timelines and milestones for upgrading
specific facilities. These plans include the facility assess­ments that
will be conducted to certify that space meets required storage
standards.

+------------------------------------+---+-----+-----+-----+-----+-----+
| ##### Performance Data             |   | **  | **  | **  | **  | **  |
|                                    |   | 200 | 200 | 200 | 200 | 200 |
|                                    |   | 0** | 1** | 2** | 3** | 4** |
+====================================+===+=====+=====+=====+=====+=====+
| Percent of NARA records center     |   | --- | --- | --- | --- | 0   |
| buildings certified as complying   |   |     |     |     |     |     |
| with the October 2009 regulatory   |   |     |     |     |     |     |
| storage standards                  |   |     |     |     |     |     |
+------------------------------------+---+-----+-----+-----+-----+-----+
| Volume of records center holdings  |   | 2   | 2   | 2   | 2   | 2   |
|                                    |   | 1.7 | 2.6 | 3.1 | 3.2 | 4.1 |
| (cubic feet in millions)           |   |     |     |     |     |     |
+------------------------------------+---+-----+-----+-----+-----+-----+
| Average storage price per cubic    |   | \$1 | \$1 | \$2 | \$2 | \$2 |
| foot for records center holdings   |   | .96 | .96 | .00 | .10 | .16 |
+------------------------------------+---+-----+-----+-----+-----+-----+
|                                    |   |     |     |     |     |     |
+------------------------------------+---+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We expect to continue to stay
within budget and schedule targets for our facility projects. We will
begin certification of NARA records center buildings as we bring them up
to compliance with October 2009 regulatory storage standards.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Appropriately treat or house 40        |
|                         | * | percent of NARA's at-risk archival     |
|                         |  | holdings so as to retard further       |
|                         | * | deterioration.                         |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Complete risk assessment of Official   |
|                         | * | Military Personnel Files (OMPFs).      |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We treated or housed 41 percent of     |
|                         |   | NARA's at-risk archival holdings so as |
|                         |   | to retard further deterioration.       |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We completed a risk assessment of the  |
|                         |   | OMPF collection at the National        |
|                         |   | Personnel Records Center.              |
+-------------------------+---+----------------------------------------+

*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. We continued our positive trend of the past several
years by meeting our target this year of treating or housing 40 percent
of NARA's at-risk archival holdings.

We noted earlier (section 4.1) that we conducted a study this year to
consider various options to housing and storing the OMPFs. In
anticipation of moving the collection to a new facility, we also
completed a risk assessment of the physical condition of the OMPFs. We
learned that 85 percent of the OMPFs contain paper-based formats that
are unstable, meaning they deteriorate quickly, and more than 30 other
types of media or information formats were discovered during the survey,
including metal dog tags, hair samples, blood strips, rifle targets, and
plastic ID cards. Eighty percent of the files have some type of damage,
such as tears, embrittlement, burns, mold, and folding. As a result,
refor­mat­ting these records to ensure their long-term preservation will
be a massive challenge, and getting them relocated into a properly
controlled environment is an essential, cost-effective first step.

+---------------------------------+----+-----+-----+-----+-----+-----+
| ##### Performance Data          | ** | **  | **  | **  | **  | **  |
|                                 | 19 | 200 | 200 | 200 | 200 | 200 |
|                                 | 99 | 0** | 1** | 2** | 3** | 4** |
|                                 | ** |     |     |     |     |     |
+=================================+====+=====+=====+=====+=====+=====+
| *Performance target for percent | *  | *-  | *   | *   | *   | *   |
| of cumulative backlog ever      | -- | --* | 30* | 32* | 36* | 40* |
| treated*                        | -* |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of cumulative backlog   | 3  | 25  | 28  | 32  | 35  | 41  |
| ever treated                    |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Start-of-year backlog volume of | 1  | 156 | 197 | 174 | 188 | 180 |
| at-risk archival holdings       | 61 |     |     |     |     |     |
| (thousands of cubic feet)       |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Volume of at-risk archival      | 5  | 35  | 26  | 11  | 17  | 18  |
| holdings that received          |    |     |     |     |     |     |
| conservation treatment this     |    |     |     |     |     |     |
| year (thousands of cubic feet)  |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Cumulative volume of at-risk    | -  | --- | 63  | 67  | 74  | 80  |
| archival holdings in cold       | -- |     |     |     |     |     |
| storage (thousands of cubic     |    |     |     |     |     |     |
| feet)                           |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of start-of-year        | 3  | 22  | 16  | 7   | 9   | 10  |
| remaining backlog treated this  |    |     |     |     |     |     |
| year                            |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
|                                 |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* With the recent accessioning of
OMPFs into NARA's archival holdings, these records will now be counted
in the backlog of at-risk holdings waiting for treatment. The first
accession of OMPFs contains more than 19,000 cubic feet of highly
at-risk records and will make it difficult to reach our target of 43
percent.

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

### 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 2004 Resources Available to Meet This Goal:** \$33,182,000; 130 FTE

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  |  | Redesign NARA\'s existing recruiting   |
|                         |   | strategies and procedures.             |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Develop a leadership competency model. |
|                         | * |                                        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Implement a management trainee program |
|                         | * | in at least one program office.        |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Maintain 95 percent of staff           |
|                         | * | development plans linked to strategic  |
|                         |  | outcomes.                              |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Maintain 95 percent of employee        |
|                         | * | performance plans linked to strategic  |
|                         |  | outcomes.                              |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
| ####                    |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We developed a project plan for        |
|                         |   | redesigning NARA's existing recruiting |
|                         |   | strategies and procedures.             |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We developed a leadership competency   |
|                         |   | model and guide.                       |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We implemented a management trainee    |
|                         |   | program in four of NARA's records      |
|                         |   | centers.                               |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We linked 91 percent of employee       |
|                         |   | performance plans to strategic         |
|                         |   | outcomes.                              |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We linked 53 percent of staff          |
|                         |   | development plans to strategic         |
|                         |   | outcomes.                              |
+-------------------------+---+----------------------------------------+

*Discussion* Several new tactics were undertaken this year that will
help us prepare our workforce for the challenges ahead. We hired a human
capital planning specialist to help us undertake a comprehensive
redesign of our existing recruiting strategies and proce­dures. We
engaged all parts of the agency in identifying specific recruitment
needs, and we benchmarked top-performing Federal agency recruitment
programs as models. We developed a Leadership Competency Model, which
identifies the skills, knowledge, and personal characteristics and
behavior that NARA leaders need now and in the future. We also developed
a Leadership Competency Guide that will assist NARA management in
developing high-performing staff for key leadership positions. These
tools will be incor­porated into one of NARA's largest offices in FY
2005.

We completed a successful first year of a new management trainee program
to develop the next generation of records center managers throughout
NARA's Records Center Program. The program addresses the critical issues
of retention of high-performing employees, succession planning as
managers leave, and the lack of formal management development 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, other NARA
professionals closely mentor interns. We rolled out the program to four
centers in FY 2004 and will expand to four more in FY 2005.

In 2003, for the first time, nearly all our staff had performance plans
(93 percent) and staff develop­ment plans (91 percent) linked to NARA's
Strategic Plan. While we are annually updating perfor­mance plans and
linking work to the Strategic Plan, in FY 2004, we had difficulty
maintaining the behavior of updating staff development plans on a
regular basis. Our performance this year reflects the fact that annual
updates of these develop­ment plans are not yet a firmly entrenched
behavior throughout much of NARA. Still, the process has provided
creative opportunities for employee development that did not exist
before. While many employees simply enhanced their current assignments
through a variety of job-shadowing, cross-training, and classroom
training, several employees identified new career opportunities at NARA.
Feedback has been positive from employees and supervisors alike.

+---------------------------------------------+-----+-----+-----+-----+
| ##### Performance Data                      | **  | **  | **  | **  |
|                                             | 200 | 200 | 200 | 200 |
|                                             | 1** | 2** | 3** | 4** |
+=============================================+=====+=====+=====+=====+
| Average time (in calendar days) to fill a   | *-  | *-  | *-  | 90  |
| leadership position                         | --* | --* | --* |     |
+---------------------------------------------+-----+-----+-----+-----+
| *Performance target for percent of staff    | *   | *   | *   | *   |
| having performance plans that link to       | 50* | 95* | 95* | 95* |
| strategic outcomes*                         |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Percent of staff having performance plans   | 48  | 80  | 93  | 91  |
| that link to strategic outcomes             |     |     |     |     |
+---------------------------------------------+-----+-----+-----+-----+
| Number of NARA staff having performance     | 1,  | 2,  | 2,  | 2,  |
| plans that link to strategic outcomes       | 434 | 473 | 843 | 781 |
+---------------------------------------------+-----+-----+-----+-----+

  --------------------------------------------- ------- ------- ------- -------
  *Performance target for percent of permanent  *---*   *50*    *95*    *95*
  staff having staff development plans that                             
  link to strategic outcomes*                                           

  Percent of permanent staff having staff       ---     1       91      53
  development plans that link to strategic                              
  outcomes                                                              

  Number of NARA staff having staff development ---     7       2,400   1,400
  plans that link to strategic outcomes                                 

  Number of NARA permanent staff                2,683   2,708   2,647   2,663

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

*FY 2005 Performance Plan Evaluation* We are confident that we will meet
our FY 2005 targets and expect to begin to see progress toward our
long-range target of filling leadership positions in an average of 30
days.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Ensure the percentages of NARA         |
|                         | * | employees in underrepresented groups   |
|                         |  | match 70 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    |
|                         |   | 2003.                                  |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We employed people in underrepresented |
|                         |   | groups that our percentages matched at |
|                         |   | least 70 percent of the national       |
|                         |   | averages in five out of six            |
|                         |   | underrepresented groups.               |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We slightly increased the percentage   |
|                         |   | of under-represented groups in pools   |
|                         |   | of applicants from which to select     |
|                         |   | candidates for positions in grades 13  |
|                         |   | and above over the percentage in FY    |
|                         |   | 2004.                                  |
+-------------------------+---+----------------------------------------+

*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, Asian
Americans/Pacific Islanders, American Indians/Alaskan natives, and
persons with targeted disabilities. However, as we steadily increase our
targets for reflecting the availability of underrepresented groups in
the Civilian Labor Force, it is increasingly difficult to reach these
levels for certain groups.

There is still work to be done, especially with respect to increasing
the representation of Latino-Hispanics in NARA's workforce---an area
where NARA continues to fall short. One of the biggest challenges for
NARA in the area of Latino-Hispanic recruitment is the extremely small
number of Latino-Hispanic archivists available in the United States.
Indeed, only 3.5 percent of the 36,000 archivists in the United States
are Latino-Hispanic. In addition, the educational "pipeline" for
Hispanic archivists is exceedingly small. Of the 128,036 undergraduate
degrees in social science and history conferred in 2001 (the latest year
for which statistics were available), only 9,000 (7 percent) went to
Latino-Hispanics. Likewise, of the 18,518 master's degrees in library
science, social science and history conferred in 2001, only 721 (4
percent) went to Latino-Hispanics.

In response to this challenge and in the context of a larger effort to
redesign NARA's existing recruitment strategies, NARA is 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. In addition, NARA is actively exploring partnerships with
organizations that can help inform the Latino-Hispanic community about
the mission, work, and career benefits of the National Archives, thereby
expanding the pipeline of Latino-Hispanics interested in Federal careers
in history and archives. Two organizations that NARA has specifically
targeted for this purpose are the Hispanic Association of Colleges and
Universities and the Hispanic College Fund. Finally, NARA is looking to
increase the use of its student employment programs as a mechanism for
attracting Hispanic students to temporary positions within NARA. These
student programs are an excellent way to introduce students to the work
of NARA and to encourage students to pursue future careers in history
and archives.

+---------------------------------+----+-----+-----+-----+-----+-----+
| **Performance Data**            | ** | **  | **  | **  | **  | **  |
|                                 | 19 | 200 | 200 | 200 | 200 | 200 |
|                                 | 99 | 0** | 1** | 2** | 3** | 4** |
|                                 | ** |     |     |     |     |     |
+=================================+====+=====+=====+=====+=====+=====+
| Percent of employees who have   | 6  | 19  | 27  | 58  | 82  | 68  |
| received diversity training     |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| *Performance target for percent | *  | *   | *   | *   | *   | *   |
| of applicant pools for          | -- | 49* | 64* | 75* | 94* | 98* |
| positions at grades GS-13 and   | -* |     |     |     |     |     |
| above that contain people in    |    |     |     |     |     |     |
| underrepresented groups*        |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of applicant pools for  | 48 | 63  | 74  | 85  | 97  | 98  |
| positions at grades GS-13 and   |    |     |     |     |     |     |
| above that contain people in    |    |     |     |     |     |     |
| underrepresented groups         |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of applicants for        | -  | --- | --- | 1,  | 1,  | 1,  |
| positions at grades GS-13 and   | -- |     |     | 779 | 177 | 270 |
| above                           |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of applicant pools for   | 21 | 24  | 53  | 101 | 85  | 99  |
| positions in grades GS-13 and   |    |     |     |     |     |     |
| above                           |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of pools for positions   | 10 | 15  | 39  | 86  | 83  | 97  |
| in grades GS-13 and above that  |    |     |     |     |     |     |
| had self-identified appli­cants  |    |     |     |     |     |     |
| in protected classes            |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of Civilian Labor Force | -  | --- | 50  | 60  | *   | *   |
| rate used to determine if       | -- |     |     |     | 65* | 70* |
| underrepresented groups met     |    |     |     |     |     |     |
| employment target               |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| 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 2005 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 2004 Objectives**  | * | Deploy eDOCS into *Federal Register*   |
|                         | * | production and enhance the system to   |
|                         |  | promote business efficiencies.         |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Accept validated legal documents       |
|                         | * | submitted electronically for           |
|                         |  | publication in the *Federal Register*  |
|                         | * | from three agencies.                   |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | We successfully launched eDOCS and     |
|                         |   | began using it in a production         |
|                         |   | environment.                           |
+-------------------------+---+----------------------------------------+
| *"We have found eDOCS   |   |                                        |
| to be very*             |   |                                        |
+-------------------------+---+----------------------------------------+
| *beneficial for timely  |  | We accepted and processed              |
| submission, and         |   | electronically validated legal         |
| consistently on target  |   | documents from three agencies.         |
| with our deadlines."*   |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* On October 1, 2003, we brought a beta version of the
Electronic Editing and Publishing System (eDOCS) online into our
*Federal Register* publication production opera­tions and received the
first valid legal document for publication in the *Federal Register*
from the Federal Energy Regulatory Commission (FERC). Not only did we
receive that document into eDOCS via e-mail, but we processed the
document entirely in electronic form using eDOCS editing tools, tracked
the progress of the document through the produc­tion cycle, and published
the document in the October 6, 2003, issue of the *Federal Register*.
Since then, more than 3,000 additional documents from FERC, the Federal
Depository Insurance Corporation, and the National Marine Fisheries
Service have been managed via eDOCS. Despite being in beta production,
and the fact that we continue to operate our legacy processes in
parallel with eDOCS during this period of transition, eDOCS handled 9
percent of our total workload this year.

+--------------------------------------+-----+-----+-----+-----+-----+
| ##### Performance Data               | **  | **  | **  | **  | **  |
|                                      | 200 | 200 | 200 | 200 | 200 |
|                                      | 0** | 1** | 2** | 3** | 4** |
+======================================+=====+=====+=====+=====+=====+
| Percent of documents *Federal        | --- | --- | --- | --- | 9   |
| Register* manages electronically     |     |     |     |     |     |
| using eDOCS                          |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of documents NARA manages     | --- | --- | --- | --- | 3,  |
| electronically using eDOCS           |     |     |     |     | 032 |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of documents published in the | 31, | 32, | 33, | 32, | 32, |
| *Federal Register*                   | 925 | 036 | 055 | 066 | 412 |
+--------------------------------------+-----+-----+-----+-----+-----+
| Percent of documents submitted for   | --- | --- | --- | --- | 9   |
| publication electronically           |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of documents submitted for    | --- | --- | --- | --- | 3,  |
| publication electronically           |     |     |     |     | 032 |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of public inspection          | --- | --- | --- | --- | 3,  |
| documents available to the public    |     |     |     |     | 032 |
| electronically                       |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of rulemakings open for       | --- | --- | --- | 371 | 240 |
| comment successfully retrieved at    |     |     |     |     |     |
| *regulations.gov* (in thousands)     |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+
| Number of official *Federal          | 155 | 163 | 150 | 160 | 208 |
| Register* documents retrieved online |     |     |     |     |     |
| (in millions)                        |     |     |     |     |     |
+--------------------------------------+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We plan to use eDOCS with three
more agencies in FY 2005. We must redesign the eDOCS module that will
provide for our legally required public inspection of documents, and we
need to develop a test system to use for ongoing configuration
management. This was identified as necessary during Certification and
Accreditation testing. Also, we plan to develop a comprehensive
Continuity of Opera­tions Plan for *Federal Register* publication.

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

+-------------------------+---+----------------------------------------+
| **FY 2004 Objectives**  | * | Public network applications are        |
|                         | * | available 96.5 percent of the time.    |
|                         |  |                                        |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Pilot an enterprise repository for     |
|                         | * | NARA\'s Enterprise Architecture and    |
|                         |  | associated IT documentation.           |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         | * | Implement improved agency-wide         |
|                         | * | disaster recovery processes and        |
|                         |  | mechanisms.                            |
|                         | * |                                        |
|                         | * |                                        |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
| #### Results            |  | Our public network applications were   |
|                         |   | available 98 percent of the time.      |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We piloted NARA's Enterprise           |
|                         |   | Information Technology Repository with |
|                         |   | selected users and developed the       |
|                         |   | detailed architecture design           |
|                         |   | specification for the system.          |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+
|                         |  | We addressed improvements to both      |
|                         |   | agency-level and individual            |
|                         |   | application disaster recovery          |
|                         |   | processes.                             |
+-------------------------+---+----------------------------------------+
|                         |   |                                        |
+-------------------------+---+----------------------------------------+

*Discussion* Last year we demonstrated a prototype of NARA's Enterprise
Information Technology Repository (NEITR), and this year we began the
pilot phase with the development of the System Design Specifications to
include updates to the System Requirements Specification. NEITR is a
system that will provide a single, centralized, authoritative source of
all information assets associated with NARA's IT systems. The NEITR
repository (or container) will structure and hold all authoritative IT
program information and publish that information on NARA's internal web
site for staff use.

We are addressing agency-level disaster recovery planning as well as
processes for individual application recovery. We are updating our
internal NARA processes to include contingency planning requirements,
part of the Certification and Accreditation (C&A) process we started
last year. The first round of contingency plan testing was completed for
most plans this year, and we will repeat those tests annually. We have
prioritized systems in order of importance to NARA's mission and
business needs and identified those systems for which NARA will need an
off-site recovery capability.

+---------------------------------+----+-----+-----+-----+-----+-----+
| ##### Performance Data          | ** | **  | **  | **  | **  | **  |
|                                 | 19 | 200 | 200 | 200 | 200 | 200 |
|                                 | 99 | 0** | 1** | 2** | 3** | 4** |
|                                 | ** |     |     |     |     |     |
+=================================+====+=====+=====+=====+=====+=====+
| Percent of public network       | 1  | 9   | 9   | 9   | 9   | 100 |
| availability                    | 00 | 9.8 | 9.9 | 9.9 | 9.9 |     |
|                                 | .0 |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| *Performance target for percent | *  | *-  | *-  | *-  | *-  | *96 |
| availability of public          | -- | --* | --* | --* | --* | .5* |
| applications*                   | -* |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Percent of public network       | -  | --- | --- | --- | --- | 9   |
| applications availability       | -- |     |     |     |     | 8.7 |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of total hours that any  | -  | --- | --- | --- | --- | 1,  |
| public network application was  | -- |     |     |     |     | 047 |
| unavailable                     |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Number of network users for     | -  | --- | --- | --- | --- | 4.4 |
| public applications (in         | -- |     |     |     |     |     |
| millions)                       |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+
| Cost per network user for       | -  | --- | --- | --- | --- | \$0 |
| public applications             | -- |     |     |     |     | .29 |
+---------------------------------+----+-----+-----+-----+-----+-----+
|                                 |    |     |     |     |     |     |
+---------------------------------+----+-----+-----+-----+-----+-----+

*FY 2005 Performance Plan Evaluation* We will implement NEITR. We will
continue contingency plan testing as planned. We plan to establish a
"hot-site" or off-site recovery capability in FY 2005.

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

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

Government Accountability Office Engagement 310722, *Funding of the 25
OMB-sponsored E-Government Initiatives,* September 21, 2004.

The Government Accountability Office is reviewing the monetary
contributions of Federal agencies to each of the e-Government
initiatives.

Government Accountability Office Engagement 310709, *E-Government Act of
2002*, May 2004.

GAO is reviewing the implementation status of selected provisions of the
E-Government Act of 2002. For NARA, this means Section 207 relating to
access­ibility, usability, and preservation of Government information.
NARA has responded to questions, but no report has yet been issued.

Government Accountability Office Engagement 310703, *Progress of the
Quicksilver E-Government Initiatives*, May 2004.

GAO is reviewing progress on the 25 Presidential e-Government
initiatives. NARA is the managing partner for the Electronic Records
Management E-Government Initiative. GAO delivered testimony to Congress
on March 24. No recommendations were made to NARA.

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

Government Accountability Office, GAO-04-927, *Records Management,
Planning for the Electronic Records Archives Has Improved,* September
23, 2004.

The Government Accountability Office (GAO) made one recommendation,
which will be addressed in FY 2005.

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

Office of Inspector General, OIG Report 04-11, *Audit of NARA's
Interagency Agreements*, March 26, 2004.

The Inspector General reviewed NARA's interagency agreements and made
two recommendations to the Office of Administrative Services. Both
recommenda­tions were completed in FY 2004, and this audit is closed.

Information Security Oversight Office, *Compliance Inspection Report*,
May 13, 2004.

> The office conducted a compliance inspection of the Ronald Reagan
> Presidential Library and Museum, Simi Valley, CA. Five recommendations
> were made, of which two are closed and three are scheduled for
> completion in FY 2005.

Office of Inspector General, OIG Report 04-13, *Assessment of NARA's
Efforts to Comply with New Facility Standards,* May 14, 2004.

The Inspector General conducted an assessment of NARA's efforts to
comply with new facility standards for records center facilities and
made six recommen­dations. All six recommendations are scheduled for
completion by January 31, 2005.

Government Accountability Office Engagement 130249, *Social Security
Numbers in Public Records*, April 2004.

GAO is reviewing precautions agencies take to protect social security
numbers in public records. No report has yet been issued.

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

Office of Administrative Services, *Physical Security and Life Safety
Review*, December 29, 2003.

The office conducted a review of the Northeast Regional records center
facility in Waltham, MA, which serves the Boston area. Four
recommendations were made, of which three are closed and one is
scheduled for completion in FY 2005.

Office of Administrative Services, *Physical Security and Life Safety
Review*, December 29, 2003.

The office conducted a review of the National Personnel Records Center
for Military Personnel Records, in St. Louis, MO. Seven recommendations
were made, of which three are closed and four are scheduled for
completion in FY 2005.

Office of Administrative Services, *Physical Security and Life Safety
Review*, December 29, 2003.

The office conducted a review of the National Personnel Records Center
for Civilian Personnel Records, in St. Louis, MO. Three recommendations
were made, of which two are closed and one is scheduled for completion
in FY 2005.

Office of Administrative Services, *Physical Security and Life Safety
Review*, August 20, 2004.

The office conducted a review of the Great Lakes Regional Archives and
Records Center in Chicago. Three recommendations were made and remain
open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, September 7, 2004.

The office conducted a review of the Great Lakes Records Center in
Dayton. Eleven recommendations were made and remain open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, September 28, 2004.

The office conducted a review of the Pacific-Alaska Regional Archives
and Records Center in Seattle. Two recommendations were made and remain
open.

Office of Administrative Services, *Physical Security and Life Safety
Review*, September 28, 2004.

The office conducted a review of the Pacific-Alaska Regional Archives
and Records Center in Anchorage. One recommendation was made and remains
open.

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

Office of Inspector General, OIG Report 04-16, *Evaluation of NARA's
Computer Security Incident Response Capability*, June 22, 2004.

The Inspector General conducted an evaluation of NARA's computer
security incident response capability and made six recommendations. Five
recommen­dations were completed in FY 2004, and one recommendation is
scheduled for completion in FY 2005.

Office of Inspector General, OIG Report 04-14, *Follow Up of OIG Report
#00-02, Review of NARA's Process for Investing in IT Projects*, June 23,
2004.

The Inspector General reviewed NARA's process for investing in IT
projects and made two recommendations. Both recommendations are
scheduled for comple­tion by December 31, 2004.

Office of Inspector General, OIG Report 04-10, *Assessment of the
Controls and Security of NARA Classified Systems*, March 31, 2004.

The Inspector General conducted an assessment of the controls and
security of NARA's classified systems and made four recommendations.
Three recommen­dations were completed in FY 2004, and one recommendation
is scheduled for completion by December 31, 2004.

Office of Administrative Services, *Information Security Review*, June
24, 2004.

> The office conducted a review of the Gerald R. Ford Library in Ann
> Arbor, MI. Two recommendations were issued. One is closed, and one is
> scheduled for completion in FY 2005.

Office of Administrative Services, *Information Security Review*, June
24, 2004.

> The office conducted a review of the Gerald R. Ford Museum in Grand
> Rapids, MI. No recommendations were issued for this report.

Office of Administrative Services, *Information Security Review*, June
24, 2004.

> The office conducted a review of the Franklin D. Roosevelt Library and
> Museum in Hyde Park, NY. One recommendation was issued, and it is
> scheduled for completion in FY 2005.

Office of Administrative Services, Information Security Review, August
19, 2004.

> The office conducted a review of the Federal Register. Fifteen
> recommendations were made. The plan to incorporate these
> recommendations is scheduled for first quarter FY 2005.

Policy and Communications Staff, *NARA Implementation of the Federal
Activities Inventory Reform (FAIR) Act,* June 30, 2004.

In compliance with the FAIR Act, NARA compiled information about the
activities performed by each office, and submitted it to OMB in the
OMB-specified format. The inventory was posted to NARA's public web site
in September 2004.

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

Office of Inspector General, OIG Audit Memorandum 04-12, *Evaluation of
NARA's FY 2003 Management Control Program,* March 2, 2004.

The Inspector General reviewed NARA's FY 2003 Management Control
Program. Observations were noted, but no recommendations were made.

Office of Administrative Services, *Program Review*, June 24, 2004.

> The office conducted a program review at the Gerald R. Ford Library in
> Ann Arbor, MI. Two recommendations were issued, and both are scheduled
> for completion in FY 2005.

Office of Administrative Services, *Program Review*, June 24, 2004.

> The office conducted a program review at the Gerald R. Ford Museum in
> Grand Rapids, MI. No recommendations were issued for this report.

Office of Administrative Services, *Program Review*, June 24, 2004.

> The office conducted a program review at the Franklin D. Roosevelt
> Library and Museum in Hyde Park, NY. One recommendation was issued,
> and it is scheduled for completion in FY 2005.

For more information about these reports, contact the Policy and
Communications Staff on 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}

On July 31, 2003, we issued NARA's *Strategic Directions for Federal
Records Management.* In that document we said that our goals were, in
partnership with our stakeholders, to ensure that

-   Federal agencies can economically and effectively create and manage
    records necessary to meet business needs,

-   Records are kept long enough to protect rights and assure
    accountability, and

-   Records of archival value are preserved and made available for
    future generations.

We made significant progress in FY 2004 in carrying out the specific
strategies that will help us achieve these goals. The following table
provides descriptive information about those strategies and how they are
benefiting Federal agencies.

+---------+---------------------------+--------------------------------+
| **S     | **Brief description**     | **Benefits to agencies**       |
| pecific |                           |                                |
| Str     |                           |                                |
| ategy** |                           |                                |
+=========+===========================+================================+
| Ap      | We documented the         | -   Policy issued (NARA        |
| praisal | strategic framework,      |     Directive 1441) October    |
|         | objectives, and           |     2003.                      |
|         | guidelines used to        |                                |
|         | determine archival value. | -   The policy provides        |
|         | The policy provides       |     agencies with insight into |
|         | general appraisal         |     NARA's guidelines and      |
|         | guidelines as well as     |     objectives for determining |
|         | guidelines for specific   |     the archival value of      |
|         | categories of records     |     records.                   |
|         | including personal data   |                                |
|         | records, observational    | -   We gathered work process   |
|         | data from the physical    |     data from agencies that    |
|         | sciences, and             |     develop and maintain       |
|         | environmental health and  |     research and development   |
|         | safety records.           |     (R&D) records to assist us |
|         |                           |     in developing appraisal    |
|         |                           |     guidelines for R&D         |
|         |                           |     records.                   |
+---------+---------------------------+--------------------------------+
| Custody | NARA's policy addresses   | -   Policy issued (NARA        |
|         | the authority and         |     Directive 1501) February   |
|         | responsibility of the     |     2003.                      |
|         | Archivist for physical    |                                |
|         | and legal custody of      | -   We entered into an MOU     |
|         | permanent Federal         |     with the Government        |
|         | records.                  |     Printing Office (GPO),     |
|         |                           |     naming them an affiliated  |
|         |                           |     archives for the records   |
|         |                           |     in GPO Access, the online  |
|         |                           |     GPO file of Federal        |
|         |                           |     Government electronic      |
|         |                           |     publications.              |
|         |                           |                                |
|         |                           | -   We established an          |
|         |                           |     affiliated relationship    |
|         |                           |     with the Department of     |
|         |                           |     Interior (DOI) to protect  |
|         |                           |     DOI Indian Trust records   |
|         |                           |     at a state-of-the-art      |
|         |                           |     records storage facility   |
|         |                           |     operated by NARA in        |
|         |                           |     Lenexa, KS. We also will   |
|         |                           |     assist DOI in establishing |
|         |                           |     a records manage­ment       |
|         |                           |     training program for       |
|         |                           |     students of Haskell Indian |
|         |                           |     Nations University.        |
|         |                           |                                |
|         |                           | -   We continue to strengthen  |
|         |                           |     our relationship with our  |
|         |                           |     current (pre-custody       |
|         |                           |     policy) affiliated         |
|         |                           |     archives by providing      |
|         |                           |     advice and guidance on     |
|         |                           |     issues involv­ing records   |
|         |                           |     management, records        |
|         |                           |     storage, security,         |
|         |                           |     preservation, description, |
|         |                           |     and public programs.       |
+---------+---------------------------+--------------------------------+
| Ma      | Current statutes require  | -   This legislation was       |
| ndatory | agencies to contact NARA  |     included with the NARA     |
| Dest    | and obtain Archivist's    |     Efficiency Act, which was  |
| ruction | approval in order to      |     signed into law on October |
|         | extend retention periods  |     30, 2004. This legislation |
|         | beyond the destruction    |     allows us to issue         |
|         | date specified in the     |     regulations relating to    |
|         | schedule. NARA has        |     situations where records   |
|         | proposed changes to its   |     need to be retained longer |
|         | legislation that will     |     than retention timeframes  |
|         | make this process easier  |     identified in              |
|         | for agencies.             |     NARA-approved schedules.   |
+---------+---------------------------+--------------------------------+
| A       | We are actively promoting | -   We developed a model       |
| dvocacy | Federal records           |     agency Senior Records      |
|         | management through        |     Manager position           |
|         | high-level meetings,      |     description as an agency   |
|         | forums, participation in  |     best practice in the       |
|         | working groups and more.  |     Federal Government.        |
|         |                           |                                |
|         |                           | -   We developed a recommended |
|         |                           |     practices document on      |
|         |                           |     internal agency review of  |
|         |                           |     proposed retention         |
|         |                           |     schedules. This practice   |
|         |                           |     encourages agencies to     |
|         |                           |     assure that program,       |
|         |                           |     legal, and information     |
|         |                           |     technology officials at    |
|         |                           |     the agency concur with     |
|         |                           |     proposed retentions for    |
|         |                           |     temporary Federal records. |
|         |                           |                                |
|         |                           | -   We conducted meetings with |
|         |                           |     the most senior officials  |
|         |                           |     at agencies to encourage   |
|         |                           |     records management         |
|         |                           |     awareness not only in the  |
|         |                           |     records management offices |
|         |                           |     but as an integral part of |
|         |                           |     an agencies mission,       |
|         |                           |     programs, and operations.  |
+---------+---------------------------+--------------------------------+
| T       | We are developing a core  | -   We developed a new         |
| raining | nationwide training       |     training program that      |
| and     | program in Federal        |     incorporates the policies, |
| Certif  | records management.       |     best practices, and        |
| ication | Students participating in |     concepts developed         |
|         | the training will have    |     throughout the Records     |
|         | the option to obtain a    |     Management Initiatives     |
|         | certificate of completion |     (RMI).                     |
|         | in Federal records        |                                |
|         | management training.      | -   We established an          |
|         | Students electing to      |     interagency agreement with |
|         | receive certification     |     OPM to design and develop  |
|         | will be required to pass  |     a training architecture    |
|         | specific tests            |     and create training        |
|         | administered through our  |     modules, all course        |
|         | training program to       |     materials, and             |
|         | ensure proficiency in     |     certification test items.  |
|         | specific records          |                                |
|         | management related        | -   We developed a Training    |
|         | topics.                   |     Officer position to lead   |
|         |                           |     training initiatives and   |
|         |                           |     ensure an integrated       |
|         |                           |     program throughout all     |
|         |                           |     NARA offices both locally  |
|         |                           |     and in the regions.        |
|         |                           |                                |
|         |                           | -   We conducted numerous      |
|         |                           |     forums throughout the      |
|         |                           |     country covering topics    |
|         |                           |     related to electronic      |
|         |                           |     records, records           |
|         |                           |     management, and risk.      |
|         |                           |                                |
|         |                           | -   We are using tools such as |
|         |                           |     WebEx to broaden the scope |
|         |                           |     of our training program.   |
|         |                           |     WebEx allows us to conduct |
|         |                           |     seminars via the Internet. |
|         |                           |     Agencies are able to view  |
|         |                           |     and "virtually"            |
|         |                           |     participate in the         |
|         |                           |     seminar. Agencies can      |
|         |                           |     access the audio portion   |
|         |                           |     of the seminar via a       |
|         |                           |     toll-free teleconference   |
|         |                           |     number.                    |
+---------+---------------------------+--------------------------------+
| Records | The Electronic Records    | -   Records center customers   |
| Center  | Services Team is          |     have validated proposed    |
| Program | developing records center |     electronic records related |
| and     | services for agency       |     services.                  |
| Ele     | electronic records.       |                                |
| ctronic |                           | -   We documented requirements |
| Records |                           |     and criteria for           |
| S       |                           |     electronic records media   |
| ervices |                           |     storage, and we            |
|         |                           |     estab­lished pilots for     |
|         |                           |     demonstrating the basic    |
|         |                           |     capability within NARA's   |
|         |                           |     Records Center Program     |
|         |                           |     system to receive and      |
|         |                           |     store physical media for   |
|         |                           |     temporary e-records.       |
+---------+---------------------------+--------------------------------+
| F       | This proposed practice    | -   We are conducting Big      |
| lexible | allows agencies to        |     Bucket functional schedule |
| Sch     | schedule temporary        |     pilots internally and with |
| eduling | records at any level of   |     GAO, PTO, NOAA, and NASA.  |
|         | aggregation that meets    |                                |
|         | their business needs.     | -   Pilot agencies said these  |
|         | Flexible scheduling       |     schedules are easier to    |
|         | presents the concepts of  |     implement, and the         |
|         | "big buckets" and         |     simplified schedule        |
|         | retention bands.          |     facilitates agencies       |
|         |                           |     positioning themselves in  |
|         |                           |     preparation for RMA        |
|         |                           |     implementation.            |
+---------+---------------------------+--------------------------------+
| ## Gene | Fifteen strategies were   | -   We developed two new       |
| ral Rec | developed to improve and  |     General Records Schedules  |
| ords Sc | expand General Records    |     (Alternative Dispute       |
| hedules | Schedules (GRS). These    |     Resolution and Reasonable  |
|         | included developing new   |     Accommodation Requests) to |
|         | GRSs, improving the       |     assist agencies in         |
|         | descriptions, and making  |     scheduling records. We are |
|         | the current documents     |     in the process of          |
|         | more user-friendly.       |     finali­zing a GRS for       |
|         |                           |     Temporary Boards,          |
|         |                           |     Commi­ssions, and           |
|         |                           |     Committees and vetting a   |
|         |                           |     GRS for CIO offices.       |
+---------+---------------------------+--------------------------------+
| G       | We issued an advanced     | -   We restructured our        |
| uidance | notice of proposed        |     framework based on input   |
| and     | rulemaking (ANPRM) to     |     from the public. We are    |
| Regu    | solicit agency and public |     developing an              |
| lations | input on our proposed     |     implemen­tation plan to     |
|         | regulation redesign.      |     reorganize our current     |
|         |                           |     regulations into the new   |
|         |                           |     framework and add and      |
|         |                           |     modify regulations as      |
|         |                           |     appropriate.               |
+---------+---------------------------+--------------------------------+
| Insp    | We plan to conduct        | -   We documented our          |
| ections | inspections when an       |     high-level goals and       |
| and     | agency, or a series of    |     com­pleted identifying      |
| Studies | agencies in a specific    |     internal NARA criteria for |
| (Moni   | line of business, refuse  |     determining when to        |
| toring) | to address high-level     |     undertake an inspection.   |
|         | records management risks  |     We developed and           |
|         | or specific problems      |     documented procedures for  |
|         | identified through NARA's |     conducting inspections. We |
|         | risk-based resource       |     will implement these       |
|         | allocation model or other |     procedures in FY 2005.     |
|         | means such as Government  |                                |
|         | reports or the media. We  | -   We developed internal NARA |
|         | will undertake records    |     criteria for determining   |
|         | management studies when   |     when to undertake a study. |
|         | we believe an agency or a |                                |
|         | series of agencies in a   |                                |
|         | specific line of business |                                |
|         | are utilizing records     |                                |
|         | management practices that |                                |
|         | could benefit the rest of |                                |
|         | a specific line of        |                                |
|         | business or the Federal   |                                |
|         | Government as a whole.    |                                |
+---------+---------------------------+--------------------------------+
| Pr      | We developed a proposal   | -   We conducted a successful  |
| e-Acces | to explore the            |     pilot with GPO in          |
| sioning | practicality and          |     transferring some of their |
| Study   | costs/benefits of         |     electronic records. We     |
|         | accepting physical        |     will pursue this practice  |
|         | custody of permanent      |     on a case-by-case basis.   |
|         | electronic records prior  |                                |
|         | to their legal transfer   | -   We issued NARA Bulletin    |
|         | and conducting some level |     2004-02 on July 12, 2004,  |
|         | of processing on them     |     which describes the        |
|         | (pre-accessioning).       |     process and the criteria   |
|         |                           |     for determining when       |
|         |                           |     pre-accessioning is        |
|         |                           |     appropriate.               |
+---------+---------------------------+--------------------------------+
| R       | We want to target our     | -   We developed a set of      |
| esource | resources on agencies or  |     criteria, procedures, and  |
| All     | parts of agencies that    |     a handbook for identifying |
| ocation | have the greatest         |     the functional areas       |
| (F      | quantity and              |     within the Government that |
| ocusing | concentration of records  |     contain the greatest       |
| Res     | that a) document the core |     records management         |
| ources) | functions of government,  |     challenges.                |
|         | b) ensure government      |                                |
|         | accountability, the       | -   We analyzed various        |
|         | protection of rights, and |     business lines and         |
|         | the national experience,  |     sub-functions across the   |
|         | and c) are perceived to   |     Federal Government to      |
|         | be "at risk."             |     prioritize and allocate FY |
|         |                           |     2005 resources.            |
+---------+---------------------------+--------------------------------+
| T       | We formed partnerships    | -   We provided free           |
| argeted | with agencies to solve    |     assistance to agencies to  |
| Ass     | specific records          |     identify and correct       |
| istance | management problems.      |     existing problems in their |
|         |                           |     records management         |
|         |                           |     programs. Most of the      |
|         |                           |     targeted assistance we     |
|         |                           |     provide in FY 2005 will be |
|         |                           |     directed to high-risk      |
|         |                           |     agencies or business lines |
|         |                           |     identified through our     |
|         |                           |     resource allocation        |
|         |                           |     project.                   |
+---------+---------------------------+--------------------------------+
| Re      | We will report to         | -   The NARA Annual            |
| porting | Congress and OMB          |     Performance Reports for    |
|         | regarding problems and    |     2002 and 2003 reported to  |
|         | recommended practices     |     Congress on agency records |
|         | discovered as part of     |     management progress.       |
|         | targeted assistance       |                                |
|         | projects and inspections  | -   We developed criteria for  |
|         | and studies that we carry |     establishing reports for   |
|         | out.                      |     future submission to OMB   |
|         |                           |     and Congress. The reports  |
|         |                           |     will serve to document     |
|         |                           |     problems and highlight     |
|         |                           |     agency successes and       |
|         |                           |     progress in their records  |
|         |                           |     management programs.       |
+---------+---------------------------+--------------------------------+

# 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
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 will begin to use our Resource Allocation methodology and
the OMB Business Reference Model (BRM) to target our assistance to
Federal agencies and to develop reports on records management
activities. As a first step we have identified business processes,
sub-functions, and agency activities, 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. We will target our records management assistance to Federal
agencies based on this work. In our FY 2005 report we will detail our
activities and results.

For FY 2004, we are reporting on three of the Federal programs that have
shown signifi­cant progress in establishing or expanding control over
their management of business information in a way that has produced
tangible results for the Government and citizens. NARA partnered with
the agencies in these activities, often through targeted assistance.

## NOAA / National Marine Fisheries {#noaa-national-marine-fisheries .AR-2004-Head-2}

The three-year-old program has been able to make records management an
integrated component in their agency program through one-on-one training
with new employees, classroom training and briefings, and by making
records management a component of performance evaluation criteria. The
small staff (3.5 FTE) work with 22 liaisons in 9 regional and 13 field
offices in the Alaska Region. They have raisexd the awareness of records
management throughout their region, created and operate an efficient and
complete paper file center, and are designing and implementing an
electronic records management document scanning, indexing, search, and
retrieval system.

## Treasury / Office of Foreign Assets Control {#treasury-office-of-foreign-assets-control .AR-2004-Head-2}

OFAC administers and enforces government economic sanctions and embargo
programs against targeted foreign governments and groups that pose
treats to the national security, foreign policy, or economy of the
United States. It has completely turned around a non-existent records
management program to one that is a model for the Department and the
Government in less than three years. The program deserves recognition
for overall program accomplishment, including a mandatory training
program, completion of an approved comprehensive records schedule, and
the outstanding commitment of senior management to make records
management a priority.

## U.S. Army {#u.s.-army .AR-2004-Head-2}

Since 1998, the Army Records Management Division (ARMD) has aggressively
pursued its goal to simplify records management for army personnel
wherever they may be, from the soldier in the field to the records
management liaison. The result is the Army Records Information
Management System (ARIMS), a comprehensive program of policy,
proce­dures, and tools to support records management. ARIMS is a
restructured recordkeeping program that places more focus on long-term
records and allows local units more direct control over short-term
records. In addition, ARMD is part of the Army regulation proc­ess, so
that records management requirements are established with the
development of each regulation. In effect, this results in records
management requirements that have already been vetted with program
stakeholders.

# Performance Assessment Rating Tool (PART) Summary {#performance-assessment-rating-tool-part-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 2004 results for PART
measures.

  --------------------- ---------------- ------ ------------- -------------- -----------------------
  OMB Recommendation    NARA's Response                       Status of      
                        to 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                      perfor­mance    
                        FY 2004. Data                         plan and       
                        will be                               developed a    
                        collected for                         methodology    
                        the first time                        for collecting 
                        for many new                          the data for   
                        cost measures in                      the first time 
                        FY 2004 and FY                        in FY 2004.    
                        2005. Targets                         These data are 
                        will be set                           reported in    
                        where                                 the            
                        appropriate                           Performance    
                        after                                 section of     
                        measurement                           this report.   
                        methodologies                         We will        
                        are established                       monitor trends 
                        and tested.                           and determine  
                                                              where targets  
                                                              are            
                                                              appropriate.   

  2\. Produce audited   Funding is                            Completed for  
  financial statements. included in the                       the first time 
                        FY 2005 budget                        with the       
                        request to                            submission of  
                        produce NARA's                        this report to 
                        audited                               OMB and        
                        financial                             Congress.      
                        statements and                                       
                        NARA's                                               
                        Performance and                                      
                        Accounta­bility                                       
                        Report for the                                       
                        first time in FY                                     
                        2004. To meet                                        
                        the timeline for                                     
                        producing a                                          
                        first report,                                        
                        staff had to be                                      
                        added in FY                                          
                        2004.                                                

  Selected PART                          Year   Target                       Actual
  Measures                                                                   

  Annual cost of                         2004   No annual                    \$6.16
  archival storage                              target                       
  space per cubic feet                                                       
  of traditional                                                             
  holdings                                                                   

  By 2005, 95 percent                    2004   70                           75
  of requests for                                                            
  military service                                                           
  separation records                                                         
  are answered within                                                        
  10 working days                                                            

  By 2009, 100 percent                   2004   No annual                    52% traditional
  of NARA's archival                            target                       holdings,\
  holdings are in                                                            100% electronic
  appropriate space                                                          holdings,\
                                                                             42% artifact holdings

  By 2009, 100 percent                   2004   No annual                    Data will be available
  of NARA records                               target                       in FY 2005
  centers comply with                                                        
  the October 2009                                                           
  regulatory storage                                                         
  standards                                                                  
  --------------------- ---------------- ------ ------------- -------------- -----------------------

#  {#section-25 .AR-2004-Head-1}

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

The following provides definitions for many of the terms and concepts
used in this performance report.

  ------------------ ----------------------------------------------------
  **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 would
                     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 how much use our web site is
                     getting than counting hits.

  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**

  NAIL               NARA Archival Information Locator, prototype for
                     ARC.

  ARC                Archival Research Catalog, NARA-wide online catalog.

  User Hits          User hits are 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 will be available for ARC in 2004.

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

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

  Electronic         Electronic holdings are records on electronic
  holdings           storage media.

  Inventory          An inventory is 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  requesting 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 senior official for the
                     program or the agency head.

  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     An equity-holding agency is a Federal agency that
  agency             may have classified 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  Appropriate space is 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
                     technology.
  ------------------ ----------------------------------------------------

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

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

  Applicant          An applicant is anyone who has applied for a
                     specific position.

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

  NARANET            NARANET is a collection of local area networks
                     installed in 34 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.
  ------------------ ----------------------------------------------------

# [Part 3 ]{.smallcaps}FINANCIAL SECTION {#part-3-financial-section .AR-Part-Title}

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

![](media/image18.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 2004.

This is the first year that NARA has been required to issue 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. To meet this challenge NARA has had to redefine its work processes
and develop a framework for preparing auditable financial statements in
conformity with Office of Management and Budget (OMB) and other
applicable guidance. The process of pulling together financial records
to prepare the audited financial statements has already resulted in
improvements in financial management processes and internal controls.
The longer term goal is to further develop and institutionalize these
improvements.

To meet the new stringent reporting requirements, NARA took action to
contract with a new accounting service provider. Deficiencies of the
current provider's financial system became a major obstacle to obtaining
timely, accurate financial information. It is anticipated that this
decision will result in significant improvements to NARA's accounting
processes, financial reporting, and internal controls. The conversion
process will begin in fiscal year 2005, with implementation planned for
the start of fiscal year 2006.

Despite the implied promise of significant improvement resulting from
this major change, further challenges remain as NARA works to implement
the new financial system, improve financial management processes and
internal controls, and, ultimately, address the spirit of the
President's Management Agenda. 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. Nevertheless, NARA has made a
good start.

![](media/image19.png){width="2.75in" height="0.5236111111111111in"}

Adrienne C. Thomas

Assistant Archivist for Administrative Services

Chief Financial Officer

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

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

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

The 23-page Independent Auditor's Report by Clifton Gunderson LLP is
available as a [PDF file](../audit_report.pdf).

Management Response to Auditor's Reports

![](media/image20.wmf){width="0.989763779527559in"
height="0.8889763779527559in"}

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

## 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 2004 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}

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

As of September 30, 2004\
(in dollars)

  --------------------------------------------------- -------------------
  **Assets (note 2)**                                 

  Intragovernmental                                   

  Fund balance with Treasury (note 3)                 \$ 185,206,592

  Investments (notes 2, 4)                            31,204,730

  Accounts receivable (note 5)                        14,150,707

  Other (note 8)                                      40,169

  Total intragovernmental                             230,602,198

                                                      

  Cash (note 3)                                       36,195

  Investments (note 4)                                4,785,275

  Accounts receivable, net (note 5)                   881,056

  Inventory, net (note 6)                             994,847

  General property, plant and equipment, net (note 7) 328,326,587

  Other (note 8)                                      1,015,888

                                                      

  **Total assets**                                    **\$ 566,642,046**

                                                      

  **Liabilities (note 9)**                            

  Intragovernmental                                   

  Accounts payable                                    \$ 3,407,235

  Other (notes 9, 11, 12)                             21,293,722

  Total intragovernmental                             24,700,957

                                                      

  Accounts payable                                    24,426,228

  Debt held by the public (notes 9, 10)               246,046,049

  Other (notes 9, 11)                                 26,899,167

  Total liabilities                                   322,072,401

                                                      

  **Net Position**                                    

  Unexpended appropriations                           139,792,729

  Cumulative results of operations                    104,776,916

                                                      

  **Total liabilities and net position**              **\$ 566,642,046**
  --------------------------------------------------- -------------------

The accompanying notes are an integral part of these statements.

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

For the Year Ended September 30, 2004\
(in dollars)

  ---------------------------------------------------------- -----------------
  **Program costs**                                          

                                                             

  **Records and archives-related services**                  

  Intragovernmental gross costs                              \$ 54,340,065

  Less: Intragovernmental earned revenue                     (988,096)

  Intragovernmental net costs                                53,351,969

                                                             

  Gross costs with the public                                187,284,588

  Less: Earned revenues from the public                      ---

  Net costs with the public                                  187,284,588

  **Total net records and archives-related services program  **240,636,557**
  costs**                                                    

                                                             

  **Trust and Gift Funds**                                   

  Intragovernmental gross costs                              2,132,571

  Less: Intragovernmental earned revenue                     (16,497)

  Intragovernmental net costs                                2,116,074

                                                             

  Gross costs with the public (excluding heritage asset      14,190,941
  renovation)                                                

  Heritage asset renovation costs (Note 14)                  1,237,297

  Less: Earned revenues from the public                      (14,215,669)

  Net costs with the public                                  1,212,569

  **Total net trust and gift fund costs**                    **3,328,643**

                                                             

  **Electronic records archives**                            

  Intragovernmental gross costs                              4,311,172

  Less: Intragovernmental earned revenue                     ---

  Intragovernmental net costs                                4,311,172

                                                             

  Gross costs with the public                                6,913,429

  Less: Earned revenues from the public                      ---

  Net costs with the public                                  6,913,429

  **Total net electronic records archives program costs**    **11,224,601**
  ---------------------------------------------------------- -----------------

*(continued on next page)*

***Consolidated Statement of Net Cost, continued***

***For the Year Ended September 30, 2004\
(in dollars)***

+----------------------------------------------------------+-----------+
| **National Historical Publications and Records           |           |
| Commission grants**                                      |           |
+----------------------------------------------------------+-----------+
| Intragovernmental gross costs                            | 247,827   |
+----------------------------------------------------------+-----------+
| Less: Intragovernmental earned revenue                   | ---       |
+----------------------------------------------------------+-----------+
| Intragovernmental net costs                              | 247,827   |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| Gross costs with the public                              | 5,677,323 |
+----------------------------------------------------------+-----------+
| Less: Earned revenues from the public                    | ---       |
+----------------------------------------------------------+-----------+
| Net costs with the public                                | 5,677,323 |
+----------------------------------------------------------+-----------+
| **Total net National Historical Publications and         | **5,      |
| Records**                                                | 925,150** |
|                                                          |           |
| **Commission grants program costs**                      |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **Archives facilities and Presidential libraries repairs |           |
| and restoration**                                        |           |
+----------------------------------------------------------+-----------+
| Intragovernmental gross costs                            | 684       |
+----------------------------------------------------------+-----------+
| Less: Intragovernmental earned revenue                   | (485,000) |
+----------------------------------------------------------+-----------+
| Intragovernmental net costs                              | (484,316) |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| Gross costs with the public (excluding heritage asset    | 15,464    |
| renovation)                                              |           |
+----------------------------------------------------------+-----------+
| Heritage asset renovation costs (note 14)                | 1         |
|                                                          | 3,488,344 |
+----------------------------------------------------------+-----------+
| Less: Earned revenues from the public                    | ---       |
+----------------------------------------------------------+-----------+
| Net costs with the public                                | 1         |
|                                                          | 3,503,808 |
+----------------------------------------------------------+-----------+
| **Total net archives facilities and Presidential         | **13,     |
| libraries repairs and restoration program costs**        | 019,492** |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **Revolving Fund records center storage and services**   |           |
+----------------------------------------------------------+-----------+
| Intragovernmental gross costs                            | 6         |
|                                                          | 4,177,073 |
+----------------------------------------------------------+-----------+
| Less: Intragovernmental earned revenue                   | (125      |
|                                                          | ,691,002) |
+----------------------------------------------------------+-----------+
| Intragovernmental net costs                              | (61       |
|                                                          | ,513,929) |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| Gross costs with the public                              | 7         |
|                                                          | 7,268,146 |
+----------------------------------------------------------+-----------+
| Less: Earned revenues from the public                    | (3        |
|                                                          | ,547,516) |
+----------------------------------------------------------+-----------+
| Net costs with the public                                | 7         |
|                                                          | 3,720,630 |
+----------------------------------------------------------+-----------+
| **Total net Revolving Fund records center storage and    | **12,     |
| services program costs**                                 | 206,701** |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| Costs not assigned to programs                           | ---       |
+----------------------------------------------------------+-----------+
| Less: Earned revenues not attributed to programs         | ---       |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **Net cost of operations**                               | **\$      |
|                                                          | 286,      |
|                                                          | 341,144** |
+----------------------------------------------------------+-----------+

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 Year Ended September 30, 2004\
(in dollars)

  ----------------------------------- ----------------- -----------------
                                      *Cumulative       *Unexpended
                                      results of        appropriations*
                                      operations*       

                                                        

  **Beginning balance**               \$ 78,777,860     \$ 122,598,948

                                                        

  **Budgetary financing sources**                       

  Appropriations received             ---               316,322,000

  Other adjustments                   ---               (4,602,033)

  Appropriations used                 294,526,186       (294,526,186)

  Nonexchange revenue                 18,831            ---

  Donations and forfeitures of cash   3,570,778         ---
  and\                                                  
  cash equivalents                                      

                                                        

  **Other financing sources**                           

  Imputed financing from costs        14,224,405        ---
  absorbed\                                             
  by others                                             

  **Total financing sources**         **312,340,200**   **17,193,781**

                                                        

  **Net cost of operations**          **286,341,144**   

                                                        

  **Ending balance**                  **\$              **\$
                                      104,776,916**     139,792,729**
  ----------------------------------- ----------------- -----------------

The accompanying notes are an integral part of these statements.

### Combined Statement of Budgetary Resources {#combined-statement-of-budgetary-resources .Table-Head}

For the Year Ended September 30, 2004\
(in dollars)

  ---------------------------------------------------------- -----------------
  **Budgetary resources**                                    

  Budget authority                                           

  Appropriations received                                    \$ 320,140,868

  Unobligated balance, beginning of period                   60,523,648

  Spending authority from offsetting collections             

  Earned                                                     

  Collected                                                  160,973,336

  Receivable from Federal sources                            2,407,968

  Change in unfilled customer orders                         

  Advance received                                           (88,086)

  Without advance from Federal sources                       1,836

  Subtotal                                                   543,959,570

  Recoveries of prior year obligations                       21,096,787

  Permanently not available                                  (12,412,322)

  **Total budgetary resources**                              **552,644,035**

                                                             

  **Status of budgetary resources**                          

  Obligations incurred                                       

  Direct                                                     349,568,595

  Reimbursable                                               140,503,199

  Subtotal                                                   490,071,794

  Unobligated balance                                        

  Apportioned                                                27,128,864

  Exempt from apportionment                                  30,674,319

  Unobligated balance not available                          4,769,058

  **Total status of budgetary resources**                    **552,644,035**

                                                             

  **Relationship of obligations to outlays**                 

  Obligated balance, net, beginning of period                142,166,175

  Obligated balance, net, end of period                      

  Accounts receivable                                        (15,344,704)

  Unfilled customer orders from Federal sources              (769,672)

  Undelivered orders                                         119,478,806

  Accounts payable                                           37,797,207

  Outlays                                                    

  Disbursements                                              467,569,741

  Collections                                                (160,885,250)

  **Total outlays**                                          **\$
                                                             306,684,491**
  ---------------------------------------------------------- -----------------

The accompanying notes are an integral part of these statements.

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

For the Year Ended September 30, 2004\
(in dollars)

+----------------------------------------------------------+-----------+
| **Resources used to finance activities**                 |           |
+----------------------------------------------------------+-----------+
| Budgetary resources obligated                            |           |
+----------------------------------------------------------+-----------+
| Obligations incurred                                     | \$49      |
|                                                          | 0,071,794 |
+----------------------------------------------------------+-----------+
| Less: Spending authority from offsetting collections and | (184      |
| recoveries                                               | ,391,841) |
+----------------------------------------------------------+-----------+
| Obligations net of offsetting collections and recoveries | 30        |
|                                                          | 5,679,953 |
+----------------------------------------------------------+-----------+
| Other resources                                          |           |
+----------------------------------------------------------+-----------+
| Imputed financing from costs absorbed by others          | 1         |
|                                                          | 4,224,405 |
+----------------------------------------------------------+-----------+
| **Total resources used to finance activities**           | **319,    |
|                                                          | 904,358** |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **Resources used to finance items not part of net cost   |           |
| of operations**                                          |           |
+----------------------------------------------------------+-----------+
| Change in budgetary resources obligated for goods,       | (15       |
| services, and                                            | ,641,916) |
|                                                          |           |
| benefits ordered but not yet provided                    |           |
+----------------------------------------------------------+-----------+
| Budgetary offsetting collections and receipts that do    | 18,831    |
| not affect net                                           |           |
|                                                          |           |
| cost of operations                                       |           |
+----------------------------------------------------------+-----------+
| Resources that finance the acquisition of assets         | (34       |
|                                                          | ,698,120) |
+----------------------------------------------------------+-----------+
| **Total resources used to finance items not part of net  | **(50,3   |
| cost of operations**                                     | 21,205)** |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **Total resources used to finance the net cost of        | **269,    |
| operations**                                             | 583,153** |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+
| **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                       | 831,603   |
+----------------------------------------------------------+-----------+
| Other                                                    | (5        |
|                                                          | ,965,485) |
+----------------------------------------------------------+-----------+
| **Total components of net cost of operations that will   | **(5,1    |
| require or**                                             | 33,882)** |
|                                                          |           |
| **generate resources in future periods**                 |           |
+----------------------------------------------------------+-----------+
| **Components not requiring or generating resources**     |           |
+----------------------------------------------------------+-----------+
| Depreciation and amortization                            | 2         |
|                                                          | 0,739,351 |
+----------------------------------------------------------+-----------+
| Other                                                    | 1,152,522 |
+----------------------------------------------------------+-----------+
| **Total components of net cost of operations that will   | **21,     |
| not require or**                                         | 891,873** |
|                                                          |           |
| **generate resources**                                   |           |
+----------------------------------------------------------+-----------+
| **Total components of net cost of operations that will   | **16,     |
| not require or**                                         | 757,991** |
|                                                          |           |
| **generate resources in current period**                 |           |
+----------------------------------------------------------+-----------+
| **Net cost of operations**                               | **\$286,  |
|                                                          | 341,144** |
+----------------------------------------------------------+-----------+

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 June 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 the National Archives
and Records Service. 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 Fund**

-   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---Provides for the publication of the
    *Federal Register,* the *Code of Federal Regulations,* the *U.S.
    Statues 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.

-   The National Archives at College Park---Provides for construction
    and related services of the archival facility in Maryland that was
    opened to the public in 1993.

-   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, refile, and disposal services for records
    stored in regional records services 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}

NARA's agency-wide financial statements are prepared for the first time
for the year ended September 30, 2004; these statements are not
presented on a comparative basis. The consolidated balance sheet reports
NARA's financial position as of September 30, 2004. The consolidated
statement of net cost, the consolidated statement of changes in net
position, the combined statement of budgetary resources, and the
consolidated statement of financing reflect activity for the year ended
September 30, 2004.

These statements were prepared from NARA's accounting records in
conformity with generally accepted accounting principles (GAAP) for
Federal entities and the Office of Management and Budget (OMB) Bulletin
No. 01-09, *Form and Content of Agency Financial Statements*. 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.

### 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.

### 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;
therefore, there is no allowance for uncollectible accounts.

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

Investments in 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. Except for money market funds, 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 an endowment received pursuant to Title 44 U.S.C.,
section 2112. The purpose of the endowment is to provide income to
offset the operations and maintenance costs of the George Bush Library.
The endowment has been reflected as a separate individual investment in
an intermediate bond fund. The intent of the initial investment is to
provide long-run preservation of principal, low volatility of market
value, and stable interest income. The initial investment has been
recorded at lower of cost or market. NARA does not recognize gains or
losses on individual purchases and sales within the intermediate bond
fund portfolio.

NARA also holds investments outside of Treasury. These investments were
funded by accumu­lated interest on long-term debt financing held for
construction of the National Archives at College Park during the period
of construction and hence. These funds will be relinquished to the U.S.
Treasury.

### 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 is comprised of 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 is the net result of
NARA's operations since inception.

### 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 current 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 analysis of historical
information 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}

NARA capitalizes individual acquisitions with costs exceeding \$25,000
and useful lives exceeding two years. NARA does not capitalize general
purpose office furniture, installed carpeting, panel and office
partitions, or free-standing storage shelving. Catwalks and installed
shelving in the record facilities are capitalized and depreciated over
20 years. Acquisitions not meeting these criteria are recorded as
operating expenses. Depreciation expense is calculated using the
straight-line method. Federal Financial Accounting Standard (SFFAS) No.
6, *Accounting for Property, Plant and Equipment*, defines the diversity
among Federal PP&E. NARA's PP&E fall into two categories: general PP&E
and heritage assets. General PP&E are used to provide general government
goods and services. Heritage assets are defined as possessing
significant educational, cultural, or natural characteristics. Some
heritage assets serve two purposes by being used in day-to-day
Government operations and being a reminder of our heritage. All
Presidential libraries and the National Archives Building are classified
as heritage assets and are not included in PP&E. The National Archives
at College Park is classified as a multiuse heritage asset and is
included in PP&E on the balance sheet. The costs of acquisition,
betterment ,or reconstruction of multiuse heritage assets are
capitalized as general PP&E and depreciated. Physical quantity of both
heritage and multiuse heritage assets is included in the required
Supplementary Stewardship Information. The current condition of PP&E and
heritage assets and estimated cost of deferred maintenance is reported
in the required Supplementary Information.

### L. Internal Use Software {#l.-internal-use-software .Notes-Subhead}

NARA capitalizes internal-use software development projects whose total
cost is \$250,000 or greater. Internal-use software includes commercial
off-the-shelf (COTS) software and internally developed software. If
additional costs are incurred to assist in implementing or modifying the
COTS software, those costs are also capitalized. The estimated useful
life for calculating amortization of software 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 future workers'
compensation benefits, which includes the expected liability for death,
disability, medical, and miscellaneous costs for approved cases. The
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 10.7 percent, while employees
contribute 0.8 percent of basic pay, for a total contribution of 11.5
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 Consolidated Statement
of Net Cost and recognizes imputed financing related to these costs on
the Consolidated 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 14 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 9 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 \$87,000 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  {#s.-allocation-of-program-management-cost .Notes-Subhead}

##### 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 not an organization within NARA (see note 21). In addition, there was no reasonable or consistent basis to allocate program management cost to other programs appearing on the Statement of Net Cost.  {#nara-allocates-its-general-management-and-administrative-support-to-its-major-components-records-and-archivesrelated-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-not-an-organization-within-nara-see-note-21.-in-addition-there-was-no-reasonable-or-consistent-basis-to-allocate-program-management-cost-to-other-programs-appearing-on-the-statement-of-net-cost. .AR-2004-Head-4}

##### Note 2---Non-entity Assets {#note-2non-entity-assets .AR-2004-Head-4}

Non-entity intragovernmental investments of \$17,452,599 were funded by
the interest earned on the investment of funds raised from the sale of
certificates of ownership to finance the construction of the National
Archives at College Park. These funds will be relinquished to and are
offset by a liability to the U.S. Treasury. See note 4.

##### Note 3---Fund Balance with Treasury and Cash {#note-3fund-balance-with-treasury-and-cash .AR-2004-Head-4}

  -------------------------------------------------- --------------------
  **Fund balances**                                  

  Appropriated funds                                 \$ 165,246,334

  Revolving Fund                                     18,920,692

  Trust Fund                                         900,516

  Gift Fund                                          139,050

  **Sub-total**                                      185,206,592

  Investments                                        35,990,005

  Less interest receivable on investments            (46,315)

  Less non-entity investments                        (17,452,599)

  Imprest Fund (Cash)                                36,195

  **Total**                                          203,733,878

                                                     

  **Status of fund balances with Treasury**          

  Unobligated balance                                

  Available                                          57,803,183

  Unavailable                                        4,769,058

  Obligated balance not yet disbursed                141,161,637

  **Total**                                          203,733,878

                                                     

  **Unavailable unobligated balance includes the     
  following**                                        

  Allotments---Expired authority                     \$ 4,769,058
  -------------------------------------------------- --------------------

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 \$7,830,383.

The unused fund balance in cancelled appropriation for FY 1999 that is
returned to Treasury at the end of the fiscal year is \$2,735,733.

##### Note 4---Investments {#note-4investments .AR-2004-Head-4}

At September 30, 2004, investments were composed of the following:

+---------------+--------+-------+-------+---------+--------+--------+
|               | > Cost | > Am  | > U   | > Inves | >      | >      |
|               |        | ortiz | namor | tments, |  Other | Market |
|               |        | ation | tized | >       | >      | >      |
|               |        | >     | >     | > net   | >      | >      |
|               |        | > m   | >     |         |  adjus |  value |
|               |        | ethod |  (pre |         | tments | >      |
|               |        |       | mium) |         |        | > disc |
|               |        |       | >     |         |        | losure |
|               |        |       | > dis |         |        |        |
|               |        |       | count |         |        |        |
+===============+========+=======+=======+=========+========+========+
| **Intrag      |        |       |       |         |        |        |
| overnmental** |        |       |       |         |        |        |
|               |        |       |       |         |        |        |
| *             |        |       |       |         |        |        |
| *securities** |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| Marketable    | \$31,2 | Str   | \$    | \$      | \$     | \$31,1 |
|               | 81,405 | aight | 7     | 31,     | (3     | 74,103 |
|               |        | -line | 6,675 | 204,730 | 0,627) |        |
+---------------+--------+-------+-------+---------+--------+--------+
| **Total**     | **31,  |       | **76, | **31,20 | **(30, | **     |
|               | 281    |       | 675** | 4,730** | 627)** | 31,174 |
| **intrag      | ,405** |       |       |         |        | ,103** |
| overnmental** |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
|               |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
|               |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| **Other       |        |       |       |         |        |        |
| securities**  |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| Money market  | 4      |       |       | 402,685 |        | 4      |
| funds         | 02,685 |       |       |         |        | 02,685 |
+---------------+--------+-------+-------+---------+--------+--------+
| U.S. Treasury | 2      |       |       | 266,707 | (      | 2      |
|               | 66,707 |       |       |         | 2,061) | 64,646 |
| obligations   |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| U.S.          | 1,4    |       |       | 1,      | 3,852  | 1,4    |
| government    | 88,601 |       |       | 488,601 |        | 92,453 |
|               |        |       |       |         |        |        |
| agencies      |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| Corp. &       | 2,5    |       |       | 2,      | 2      | 2,7    |
| foreign       | 80,967 |       |       | 580,967 | 14,960 | 95,927 |
|               |        |       |       |         |        |        |
| bonds         |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| Accrued       | 46,315 |       |       | 46,315  |        | 46,315 |
| interest      |        |       |       |         |        |        |
+---------------+--------+-------+-------+---------+--------+--------+
| Total other   | 4,7    |       | ---   | 4,      | 2      | 5,0    |
|               | 85,275 |       |       | 785,275 | 16,751 | 02,026 |
+---------------+--------+-------+-------+---------+--------+--------+
| Total         | **\$   |       | **\$  | **\$    | **\$   | **\$   |
| investments   | 36,066 |       | 76,   | 35,99   | 186    | 36,176 |
|               | ,680** |       | 675** | 0,005** | ,124** | ,129** |
+---------------+--------+-------+-------+---------+--------+--------+

Intragovernmental securities are invested in Treasury Bills and Notes
through the Bureau of Public Debt. Included in that amount is the
non-entity investment of \$17,452,599, which represents accumulated
interest on long-term debt financing held for construction of the
National Archives at College Park during the period of construction and
hence. See note 2.

Other securities represent investments in short-term investment funds
and fixed-income securities.

##### Note 5---Accounts Receivable, Net  {#note-5accounts-receivable-net .AR-2004-Head-4}

Accounts receivable and allowances for uncollectible accounts as of
September 30, 2004, consisted of the following:

  ------------------------------------- --------------------- ---------------
                                        *Intragovernmental*   *With the
                                                              public*

  Accounts receivable                   \$ 14,150,707         \$ 881,628

  Allowance for uncollectible accounts  ---                   \(572\)

  **Accounts receivable, net**          **\$ 14,150,707**     **\$ 881,056**
  ------------------------------------- --------------------- ---------------

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 not
an 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, 2004.

##### 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, 2004:

+-------------------+--------+------------+------------+-------------+
| *Asset category*  | *Esti  | *A         | *Ac        | *Net book   |
|                   | mated* | cquisition | cumulated* | value*      |
|                   |        | cost*      |            |             |
|                   | *      |            | *depr      |             |
|                   | useful |            | eciation/* |             |
|                   | life*  |            |            |             |
|                   |        |            | *amo       |             |
|                   | *in    |            | rtization* |             |
|                   | years* |            |            |             |
+-------------------+--------+------------+------------+-------------+
|                   |        |            |            |             |
+-------------------+--------+------------+------------+-------------+
| Land              | n/a    | \$         | \$ ---     | \$          |
|                   |        | 6,159,194  |            | 6,159,194   |
+-------------------+--------+------------+------------+-------------+
| Buildings and     | 30     | 3          | (13        | 227,545,807 |
| structures        |        | 58,405,946 | 0,860,139) |             |
+-------------------+--------+------------+------------+-------------+
| Construction and  |        | 24,307,466 |            | 24,307,466  |
|                   |        |            |            |             |
| shelving in       |        |            |            |             |
| progress          |        |            |            |             |
+-------------------+--------+------------+------------+-------------+
| Equipment         | 3 to 7 | 22,463,568 | (1         | 11,236,664  |
|                   |        |            | 1,226,904) |             |
+-------------------+--------+------------+------------+-------------+
| Shelving/catwalks | 20     | 37,387,369 | (2         | 13,866,806  |
|                   |        |            | 3,520,563) |             |
+-------------------+--------+------------+------------+-------------+
| Leasehold         | 5      | 384,390    | (62,351)   | 322,039     |
| improvements      |        |            |            |             |
+-------------------+--------+------------+------------+-------------+
| Assets under      | 20     | 5,284,285  | (          | 3,114,889   |
| capital lease     |        |            | 2,169,396) |             |
+-------------------+--------+------------+------------+-------------+
| Internal-use      | 5      | 27,044,585 | (          | 17,724,986  |
| software          |        |            | 9,319,599) |             |
+-------------------+--------+------------+------------+-------------+
| Software          |        | 24,048,736 |            | 24,048,736  |
| development       |        |            |            |             |
|                   |        |            |            |             |
| in progress       |        |            |            |             |
+-------------------+--------+------------+------------+-------------+
| **Total property, |        | **\$       | **\$       | **\$        |
| plant**           |        | 505        | (177,      | 32          |
|                   |        | ,485,539** | 158,952)** | 8,326,587** |
| **and equipment** |        |            |            |             |
+-------------------+--------+------------+------------+-------------+

As described in note 1K, buildings and structures include only the
National Archives at College Park, which is a multiuse heritage asset.
All other buildings are deemed to be heritage assets and are not
included in the general PP&E.

##### Note 8---Other Assets {#note-8other-assets .AR-2004-Head-4}

  --------------------------- ----------------------- -------------------
                              *Intragovernmental*     *With the public*

  Other assets                \$ ---                  \$ 1,014,500

  Prepaid expenses            40,169                  ---

  Advances                    ---                     1,388

  **Total other assets**      **\$ 40,169**           **\$ 1,015,888**
  --------------------------- ----------------------- -------------------

Other assets of \$1,014,500 represent a one-time cost of obtaining an
operating lease. This cost is deferred and to be amortized over the
lease term as additional rent expense.

Prepaid expenses represent amounts advanced for postage.

Advances represent amounts for travel and relocation.

##### Note 9 -- Liabilities Not Covered by Budgetary Resources  {#note-9-liabilities-not-covered-by-budgetary-resources .AR-2004-Head-4}

  ----------------------------------------- --------------------- -----------------
                                            *Intragovernmental*   *With the public*

  Debt held by the public (including        \$ ---                \$ 246,046,049
  accrued interest)                                               

  Other                                     397,390               20,405,754

  **Total liabilities not covered by        **397,390**           **266,451,803**
  budgetary resources**                                           

  **Total liabilities covered by budgetary  **24,303,567**        **30,919,641**
  resources**                                                     

  **Total liabilities**                     **\$ 24,700,957**     **\$
                                                                  297,371,444**
  ----------------------------------------- --------------------- -----------------

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 \$397,390 represent
workers' compensation claims paid by the Department of Labor (DOL). The
\$20,405,754 of other liabilities with the public comprise unfunded
annual leave of \$11,015,778 and workers' compensation of \$9,389,976
that represents 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.

##### Note 10 - Debt Held by the Public {#note-10---debt-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, \$301,702,000, 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 \$28,971,371 annually. The 25-year
semiannual payments of \$14,485,685 began in 1994 and will be completed
in 2019.

  --------------------------------------------- -------------------------
  **[Unpaid Principal Balance]{.underline}**    

  2004 beginning balance                        \$ 252,122,164

  FY 2004 debt repayment                        7,810,289

  **2004 ending balance**                       **\$ 244,311,875**
  --------------------------------------------- -------------------------

##### Note 11 -- Other Liabilities {#note-11-other-liabilities .AR-2004-Head-4}

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

  Intragovernmental                                  

  Workers' compensation                              \$ 1,700,277

  Capital lease liability-current                    527,058

  Capital lease liability-long term                  1,613,788

  Liability for non-entity investments               17,452,599

  Total intragovernmental                            21,293,722

                                                     

  Workers' compensation                              9,389,976

  Accrued funded payroll and leave                   6,165,179

  Unfunded leave                                     11,015,778

  Advances from others                               281,860

  Deferred credits-fees                              46,374

  **Total other liabilities**                        **\$ 48,192,889**
  -------------------------------------------------- --------------------

The liability of \$11,090,252 for workers' compensation at September 30,
2004, includes a current portion of \$1,700,277 million and estimated
future costs of \$9,389,976 million. 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 liability for non-entity investments offsets non-entity investments
that were funded by the interest earned on the funds raised from the
sale of certificates of ownership to finance the construction of the
National Archives at College Park. NARA will be relinquishing the funds
to U.S. Treasury upon meeting trust agreement conditions in FY 2005. See
note 2.

Accrued annual leave consists of employees' unpaid leave balances at
September 30, 2004, and reflects wage rates in effect at fiscal year
end. 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-12leases .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.

+-----------------------------------------------------+----------------+
| **CAPITAL LEASES---**NARA as lessee                 |                |
+-----------------------------------------------------+----------------+
|                                                     |                |
+-----------------------------------------------------+----------------+
| Summary of assets under capital lease:              |                |
+-----------------------------------------------------+----------------+
| Shelving                                            | \$ 5,284,285   |
+-----------------------------------------------------+----------------+
| Accumulated depreciation                            | 2,169,396      |
+-----------------------------------------------------+----------------+
| Future payments due                                 |                |
+-----------------------------------------------------+----------------+
| Fiscal year                                         |                |
+-----------------------------------------------------+----------------+
| 2005                                                | \$ 663,962     |
+-----------------------------------------------------+----------------+
| 2006                                                | 645,817        |
+-----------------------------------------------------+----------------+
| 2007                                                | 344,253        |
+-----------------------------------------------------+----------------+
| 2008                                                | 146,173        |
+-----------------------------------------------------+----------------+
| 2009                                                | 146,173        |
+-----------------------------------------------------+----------------+
| After 2009                                          | 743,064        |
+-----------------------------------------------------+----------------+
| Total future lease payments                         | 2,689,442      |
+-----------------------------------------------------+----------------+
| Less: imputed interest                              | 548,596        |
+-----------------------------------------------------+----------------+
| **Net capital lease liability**                     | **\$           |
|                                                     | 2,140,846**    |
+-----------------------------------------------------+----------------+
|                                                     |                |
+-----------------------------------------------------+----------------+
| Lease liabilities covered by budgetary resources    | \$ 2,140,846   |
+-----------------------------------------------------+----------------+
| 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; June 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.) The schedule below shows the total future
lease payments.

  ---------------------------------------------------- ------------------
  **OPERATING LEASES---**NARA as lessee                

  Future payments due                                  

  Fiscal year                                          

  2005                                                 \$ 5,354,227

  2006                                                 5,433,516

  2007                                                 5,515,679

  2008                                                 5,600,751

  2009                                                 5,688,833

  **After 2009**                                       64,449,539

  **Total future lease payments**                      \$ 92,042,545
  ---------------------------------------------------- ------------------

##### Note 13---Commitments and Contingencies {#note-13commitments-and-contingencies .AR-2004-Head-4}

NARA has incurred claims in the normal course of business. As of
September 30, 2004, in the opinion of its General Counsel, NARA has no
material outstanding claims. Counsel advised that an Equal Employment
Opportunity Commission (EEOC) claim was recently filed for which a
thorough analysis has not been completed.

The NARA Revolving Fund has entered into a lease agreement for a new
records center in Perris, CA, with occupancy scheduled to begin on or
about December 1, 2004. The lease term is twenty years with phased in
monthly rental rates through December 2005, followed by annual rents of
\$2,273,438. The phased-in rates for the first year are based on the
scheduled completion dates of the storage bays.

##### Note 14---Cost of Stewardship PP&E {#note-14cost-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 in
the current period to renovate heritage assets:

  ------------------------------- ----------------- ----------------------
  *Asset*                         *Gift*            *Appropriation*

  Roosevelt Library               \$ 53,977         \$ 917,075

  Reagan Library                                    2,446,093

  Ford Library                    1,183,320         330,554

  National Archives Building                        9,794,622

  **Total**                       **\$ 1,237,297**  **\$ 13,488,344**
  ------------------------------- ----------------- ----------------------

For additional information about NARA's stewardship assets, see the
Supplementary Stewardship Information section of this report.

##### Note 15 -- Stewardship Assets Acquired Through Transfer, Donation, and Devise  {#note-15-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 Supplementary Stewardship
Information, including the type and quantity of heritage assets added
during the fiscal year.

##### Note 16---Exchange Revenues {#note-16exchange-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 per 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. 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 Franklin D. 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.

[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 17 -- Gross Cost and Earned Revenue by Budget Functional Classification {#note-17-gross-cost-and-earned-revenue-by-budget-functional-classification .AR-2004-Head-4}

Gross cost and earned revenue for NARA are classified under the budget
functional classification General Government under the President's
budget. Gross cost and earned revenue are categorized as follows:

  ---------------- --------------------- ---------------- -------------------
                   *Intragovernmental*   *With the        *Total*
                                         public*          

  Gross cost       \$ 125,209,392        \$ 306,075,532   \$ 431,284,924

  Earned revenue   (127,180,595)         (17,763,185)     (144,943,780)

  **Net cost**     **\$ (1,971,203)**    **\$             **\$ 286,341,144**
                                         288,312,347**    
  ---------------- --------------------- ---------------- -------------------

##### Note 18---Apportionment Categories of Obligations Incurred {#note-18apportionment-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. For FY 2004, NARA has not received any
Category B apportionments. NARA's Revolving, Trust, and Gift Funds are
exempt from apportionment. The amounts of direct and reimbursable
obligations are displayed in the following chart.

  ----------------------- --------------- --------------- ---------------
  *Obligations incurred*  *Category A*    *Exempt*        *Total*

  Direct obligations      \$ 338,567,177  \$ 11,001,418   \$ 349,568,595

  Reimbursable            2,850,575       137,652,624     140,503,199
  obligations                                             

  **Total**               **\$            **\$            **\$
                          341,417,752**   148,654,042**   490,071,794**
  ----------------------- --------------- --------------- ---------------

##### Note 19---Legal Arrangements Affecting Use of Unobligated Balances {#note-19legal-arrangements-affecting-use-of-unobligated-balances .AR-2004-Head-4}

Public Law 108-7, February 20, 2003, 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 2003 from appropriations
made available for salaries and expenses for fiscal year 2003 shall
remain available through September 30, 2004. A request must be submitted
to the Committees on Appropriations for approval prior to the
expenditure of these funds. In July 2004, NARA requested and was
authorized to transfer \$297,966, which represents 50 percent of the
unobligated balance available at the end of FY 2003.

##### Note 20---Statement of Budgetary Resources vs. Budget of the United States  {#note-20statement-of-budgetary-resources-vs.-budget-of-the-united-states .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 to the related actual balances published in the *Budget of the
United States Government*. However, the *Budget of the United States
Government* (President's Budget) that will include FY 2004 actual
budgetary execution information has not yet been published. Accordingly,
information required for such disclosure is not available at the time of
preparation of these financial statements. The President's Budget for FY
2003 is not included because these are not comparative statements.

The FY 2004 data submitted to FACTS II for preparing the SF-133 and the
President's Budget differs from the amounts reported on the statement of
budgetary resources. The differences are due mostly to incorrect
reporting in prior years on the SF-133 submissions for non-entity
investments, resulting in overstatement in budgetary resources and
status of budgetary resources of \$16 million. NARA intends to work with
OMB to provide a revised submission during the FACTS II revision window
to effect a correction for FY2004 President's Budget.

*Note 21---Dedicated Collections*

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, 2004,
consists of the following:

  ----------------------------------------- ---------------- -----------------
                                            *NATF*           *NAGF*

  **Assets**                                                 

  Fund balance with Treasury                \$ 900,516       \$ 139,050

  Cash                                      36,195           ---

  Investments, net                          10,435,181       8,102,226

  Accounts receivable                       575,930          ---

  Inventory                                 994,847          ---

  Property, plant, and equipment            737,055          ---

  Prepaid postage                           40,169           ---

  **Total assets**                          **13,719,893**   **8,241,276**

                                                             

  **Liabilities**                                            

  Accounts payable                          787,530          30,514

  Other liabilities                         933,114          ---

  **Total liabilities**                     **1,720,644**    **30,514**

                                                             

  **Net position**                                           

  Cumulative results of operations                           

  Restricted                                ---              7,830,383

  Unrestricted                              ---              380,379

  **Total net position**                    **11,999,249**   **8,210,762**

                                                             

  **Total liabilities and net position**    **13,719,893**   **8,241,276**

                                                             

  Net position, beginning of fiscal year    12,889,947       9,961,792

  Change in net position                                     

  Non-exchange revenue                      18,831           ---

  Donations and forfeitures of cash and     ---              3,570,778
  cash equivalents                                           

  Imputed financing from costs absorbed by  441,414          ---
  others                                                     

  Total financing sources                   460,245          3,570,778

  Net cost of operations                    1,350,943        5,321,808

  **Net position, end of fiscal year**      **\$             **\$8,210,762**
                                            11,999,249**     
  ----------------------------------------- ---------------- -----------------

##### 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-22explanation-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, 2004, 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 are
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."

## Supplementary Information For the Year Ended September 30, 2004 {#supplementary-information-for-the-year-ended-september-30-2004 .AR-2004-Head-2}

### Schedule of Intragovernmental Amounts {#schedule-of-intragovernmental-amounts .AR-2004-Head-3}

Intragovernmental Assets

  ----------------------- --------------- ----------------- ------------------ ------------
  **Trading Partner**     **Fund balance  **Investments**   **Accounts         **Prepaid
                          with Treasury**                   receivable**       expenses**

  Department of the       \$ 185,206,592  \$ 31,204,730     \$ 2,752,062       \$ ---
  Treasury                                                                     

  Department of Defense                                     6,351,476          

  Department of Justice                                     1,152,414          

  U.S. Courts                                               686,789            

  Department of Health                                      465,063            
  and Human Services                                                           

  U.S. Postal Service                                       160,020            40,169

  Other                                                     2,582,883          

  **Total**               **\$            **\$ 31,204,730** **\$14,150,707**   **\$
                          185,206,592**                                        40,169**
  ----------------------- --------------- ----------------- ------------------ ------------

*Intragovernmental Liabilities*

  ------------------------------------- ----------------- ---------------
  **Trading Partner**                   **Accounts        **Other**
                                        Payable**         

  Department of the Treasury            \$ ---            \$ 17,452,599

  General Services Administration       1,714,917         2,140,846

  Department of Defense                 548,599           

  Department of Labor                   170,817           1,700,277

  Office of Personnel Management        270,823           

  Department of Health and Human        67,958            
  Services                                                

  Other                                 634,121           

  **Total**                             \$ 3,407,235      \$ 21,293,722
  ------------------------------------- ----------------- ---------------

Intragovernmental Earned Revenues and Related Costs

  --------------------------- -------------------- ----------------------
  **Budget functional         **Earned revenue**   **Gross cost to
  classification**                                 generate revenue**

  General Government          \$ 127,180,595       \$ 142,839,274
  --------------------------- -------------------- ----------------------

### Schedule of Budgetary Resources by Major Budget Accounts {#schedule-of-budgetary-resources-by-major-budget-accounts .AR-2004-Head-3}

  --------------------------------------------------------------------------------------
                                    *Records and       *Gift Fund*      *Trust Fund*
                                    Archives-Related                    
                                    Services*                           
  --------------------------------- ------------------ ---------------- ----------------
  **Budgetary Resources**                                               

  Budget authority                                                      

  Appropriations received           \$ 256,700,000     \$ 3,818,032     \$ 836

  Unobligated balance, beginning of 4,686,110          8,011,603        10,451,259
  period                                                                

  Spending authority from                                               
  offsetting collections                                                

  Earned                                                                

  Collected                         15,809,356         769              13,777,157

  Receivable from Federal sources   70,399             9,924            95,498

  Change in unfilled customer                                           
  orders                                                                

  Advance received                  ---                ---              (88,086)

  Without advance from Federal      ---                ---              1,836
  sources                                                               

  Subtotal                          277,265,865        11,840,328       24,238,500

  Recoveries of prior year          14,970,706         15,248           300,488
  obligations                                                           

  Permanently not available         (12,060,552)       ---              ---

  **Total Budgetary Resources**     **280,176,019**    **11,855,576**   **24,538,988**

  **Status of Budgetary Resources**                                     

  Obligations incurred                                                  

  Direct                            272,433,986        3,920,829        14,890,878

  Reimbursable                      2,365,576          ---              ---

  Subtotal                          274,799,562        3,920,829        14,890,878

  Unobligated balance                                                   

  Apportioned                       607,399            ---              ---

  Exempt from apportionment         ---                7,934,747        9,648,110

  Unobligated balances not yet      4,769,058          ---              ---
  available                                                             

  **Total status of budgetary       **280,176,019**    **11,855,576**   **24,538,988**
  resources**                                                           

  **Relationship of Obligations to                                      
  Outlays**                                                             

  Obligated balance, net, beginning 61,212,464         4,297,693        792,554
  of period                                                             

  Obligated balance, net, end of                                        
  period                                                                

  Accounts receivable               403,388            46,316           567,550

  Unfilled customer orders from     ---                ---              1,836
  Federal sources                                                       

  Undelivered orders                50,550,201         276,014          1,305,752

  Accounts payable                  17,904,750         30,515           987,416

  Outlays                                                               

  Disbursements                     252,919,356        7,933,137        13,561,829

  Collections                       (15,809,356)       \(769\)          (13,689,072)

  **Total outlays**                 **\$ 237,110,000** **\$ 7,932,368** **\$ (127,243)**
  --------------------------------------------------------------------------------------

+-------------+-------------+----------------+------------+----------+
| *Electronic | *National   | *Archives      | *Records   | *Total*  |
| Records     | Historical  | Facilities     | Center     |          |
| Archives*   | P           | and\           | and\       |          |
|             | ublications | Presidential   | Storage    |          |
|             | and Records | Libraries*     | Services*  |          |
|             | Commission  |                |            |          |
|             | Grants*     | *Repairs and   |            |          |
|             |             | Restorations*  |            |          |
+=============+=============+================+============+==========+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| \$          | \           | \$ 13,708,000  | \$ ---     | \$       |
| 35,914,000  | $10,000,000 |                |            | 320      |
|             |             |                |            | ,140,868 |
+-------------+-------------+----------------+------------+----------+
| 5,695,552   | 1,011,505   | 17,268,944     | 13,398,675 | 60       |
|             |             |                |            | ,523,648 |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| ---         | 12,943      | 485,000        | 1          | 160      |
|             |             |                | 30,888,111 | ,973,336 |
+-------------+-------------+----------------+------------+----------+
| ---         | (3,615)     | ---            | 2,235,762  | 2        |
|             |             |                |            | ,407,968 |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | ---        | (88,086) |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | ---        | 1,836    |
+-------------+-------------+----------------+------------+----------+
| 41,609,552  | 11,020,833  | 31,461,944     | 1          | 543      |
|             |             |                | 46,522,548 | ,959,570 |
+-------------+-------------+----------------+------------+----------+
| 434,881     | 280,442     | 873,485        | 4,221,537  | 21       |
|             |             |                |            | ,096,787 |
+-------------+-------------+----------------+------------+----------+
| (211,893)   | (59,000)    | (80,877)       | ---        | (12,     |
|             |             |                |            | 412,322) |
+-------------+-------------+----------------+------------+----------+
| **4         | **1         | **32,254,552** | **150      | **552,6  |
| 1,832,540** | 1,242,275** |                | ,744,085** | 44,035** |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| 35,143,729  | 9,562,810   | 13,616,363     | ---        | 349      |
|             |             |                |            | ,568,595 |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | 485,000        | 1          | 140      |
|             |             |                | 37,652,623 | ,503,199 |
+-------------+-------------+----------------+------------+----------+
| 35,143,729  | 9,562,810   | 14,101,363     | 1          | 490      |
|             |             |                | 37,652,623 | ,071,794 |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| 6,688,811   | 1,679,465   | 18,153,189     | ---        | 27       |
|             |             |                |            | ,128,864 |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | 13,091,462 | 30       |
|             |             |                |            | ,674,319 |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | ---        | 4        |
|             |             |                |            | ,769,058 |
+-------------+-------------+----------------+------------+----------+
| **4         | **1         | **32,254,552** | **150      | **552,6  |
| 1,832,540** | 1,242,275** |                | ,744,085** | 44,035** |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| 7,630,744   | 9,551,932   | 55,865,522     | 2,815,266  | 142      |
|             |             |                |            | ,166,175 |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | 14,327,450 | 15       |
|             |             |                |            | ,344,704 |
+-------------+-------------+----------------+------------+----------+
| ---         | ---         | ---            | 767,836    | 769,672  |
+-------------+-------------+----------------+------------+----------+
| 30,039,694  | 11,875,909  | 15,427,617     | 10,003,619 | 119      |
|             |             |                |            | ,478,806 |
+-------------+-------------+----------------+------------+----------+
| 2,115,534   | 363,831     | 5,474,263      | 10,920,898 | 37       |
|             |             |                |            | ,797,207 |
+-------------+-------------+----------------+------------+----------+
|             |             |                |            |          |
+-------------+-------------+----------------+------------+----------+
| 10,184,365  | 6,598,174   | 48,191,521     | 1          | 467      |
|             |             |                | 28,181,359 | ,569,741 |
+-------------+-------------+----------------+------------+----------+
| ---         | (12,943)    | (485,000)      | (13        | (160,    |
|             |             |                | 0,888,110) | 885,250) |
+-------------+-------------+----------------+------------+----------+
| **\$        | **\$        | **\$           | **\$       | **\$     |
| 1           | 6,585,231** | 47,706,521**   | (2,        | 306,6    |
| 0,184,365** |             |                | 706,751)** | 84,491** |
+-------------+-------------+----------------+------------+----------+

### Segment Information---Revolving Fund {#segment-informationrevolving-fund .AR-2004-Head-3-Char-Char}

NARA's Revolving Fund provides storage and related services for Federal
records still in agency custody and other instrumentalities of the
Federal Government. The related services comprise retrieving,
transferring, refiling, 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 Department of Defense and Internal
Revenue Service.

The following summarizes revolving fund financial information as of
September 30, 2004:

  -------------------------------------------------------- --------------
  Fund balance                                             \$ 18,920,692

  Accounts receivable                                      14,370,695

  Property, plant and equipment                            22,915,262

  Other assets                                             1,014,500

  Liabilities due and payable for goods and services       5,487,165
  received                                                 

  Other liabilities                                        15,113,678

  Cumulative results of operations                         \$ 36,620,306
  -------------------------------------------------------- --------------

The following summarizes, for the period ended 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:

  ------------ ------------------------------------------------ -------------------
  **Records                                                     
  center                                                        
  storage and                                                   
  services**                                                    

               Intragovernmental gross costs                    \$ 64,177,073

               Less: Intragovernmental earned revenue           (129,574,547)

               Intragovernmental net costs                      (65,397,474)

                                                                

               Gross costs with the public                      77,268,146

               Less: Earned revenues from the public            (3,547,516)

               Net costs with the public                        73,720,630

                                                                

  **Total net                                                   **\$ 8,323,156**
  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-Char-Char}

NARA owns, builds, purchases and manages assets including the National
Archives Building, the National Archives at College Park, the
Presidential libraries, and land for future regional archives buildings.
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. The assets include some facilities for which
repair and maintenance are needed but have not been performed due to
current and prior years budgetary restraints. NARA refers to this
unfunded repair and maintenance of faculties and infrastructure as
deferred maintenance.

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 repairs to roofs, parking lots, and
light systems at four of the Presidential libraries.

NARA uses the condition assessment method to determine the condition of
all constructed asset and to identify any deferred maintenance projects.
The estimates generally exclude vehicles and other categories of
operating equipment.

NARA categorizes facilities and equipment according to condition using
terms such as those shown below:

*Good.* Facilities/equipment condition meets established maintenance
standards, is operating 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 does not meet most
maintenance standards and requires frequent repairs to prevent
accelerated deterioration and provide a minimal level of operating
function.

The condition assessment process at NARA includes contracting with a
professional architectural firm to perform Building Condition Reports
(BCR) for all NARA-owned facilities on a periodic basis. Facility
managers perform condition assessments annually between professional
evaluations. All BCR and facility managers' recommendations are included
on the project list. Each year, NARA management prioritizes all projects
for funding considering strategic goals and operational needs. The
projects that are not funded must be reevaluated and resubmitted in
future years. At the end of FY 2004, four projects have not been
completed and are considered deferred maintenance as shown in the chart
below. All of the projects are at buildings and facilities classified as
heritage assets. They include roof repairs, parking lot resurfacing, and
exterior lighting.

  -------------------------- ---------- ------------------ ------------------------------
  [Type of Deferred                                        
  Maintenance]{.underline}                                 

  *Category*                 *Method*   *Asset Condition*  *Estimated Deferred
                                                           Maintenance*

  Buildings                  CAS        Good               \$2.7 to \$3 million dollars
  -------------------------- ---------- ------------------ ------------------------------

In addition, NARA is custodian for numerous holdings as detailed in the
RSSI. As custodian, NARA makes tremendous efforts to warrant 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.

## Supplementary Stewardship Information For the Year Ended September 30, 2004 {#supplementary-stewardship-information-for-the-year-ended-september-30-2004 .AR-2004-Head-2}

### Heritage Assets {#heritage-assets .AR-2004-Head-3-Char-Char}

+-----------------------+-----------+----------+--------+------------+
|                       | *Balance\ | *Ad      | *Dele  | *Balance\  |
|                       | 9-30-03*  | ditions* | tions* | 9-30-04*   |
+-----------------------+-----------+----------+--------+------------+
| **Record types**      |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Artifacts (# of     |           |          |        |            |
| items)**              |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Presidential          | 526,119   | 12,495   | 0      | 538,614    |
| libraries             |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Office of Regional    | 20        | 0        | 0      | 20         |
| Records Services      |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Washington, DC        | 1,493     | 0        | 2      | 1,491      |
+-----------------------+-----------+----------+--------+------------+
| **Total**             | **        | **       | **2**  | *          |
|                       | 527,632** | 12,495** |        | *540,125** |
+-----------------------+-----------+----------+--------+------------+
|                       |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Traditional         |           |          |        |            |
| holdings**            |           |          |        |            |
|                       |           |          |        |            |
| **(in cubic feet)**   |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Presidential          | 235,709   | 2,402    | 0      | 238,111    |
| libraries             |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Office of Regional    | 634,544   | 0        | \      | 633,650    |
| Records Services      |           |          | (894\) |            |
+-----------------------+-----------+----------+--------+------------+
| Washington, DC        | 2,146,787 | 76,608   | 0      | 2,221,395  |
+-----------------------+-----------+----------+--------+------------+
| Affiliated archives   | 7,126     | 72       | 0      | 7,198      |
+-----------------------+-----------+----------+--------+------------+
| **Total**             | **3,      | **       | **(    | **3        |
|                       | 024,166** | 77,082** | 894)** | ,100,354** |
+-----------------------+-----------+----------+--------+------------+
|                       |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Electronic          |           |          |        |            |
| holdings**            |           |          |        |            |
|                       |           |          |        |            |
| **(in logical data    |           |          |        |            |
| records)**            |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Presidential          | 3         | 0        | 0      | 35,308,040 |
| libraries             | 5,308,040 |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Washington, DC        | 4,70      | 886      | 0      | 5,5        |
|                       | 7,555,362 | ,279,338 |        | 93,834,700 |
+-----------------------+-----------+----------+--------+------------+
| **Total**             | **4,742,  | **886,2  | **0**  | **5,629    |
|                       | 863,402** | 79,338** |        | ,142,740** |
+-----------------------+-----------+----------+--------+------------+
|                       |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Non-record types**  |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Buildings and       |           |          |        |            |
| structures\           |           |          |        |            |
| (in units)**          |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Presidential          | 20        | 0        | 0      | 20         |
| libraries             |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| Other                 | 2         | 0        | 0      | 2          |
+-----------------------+-----------+----------+--------+------------+
| **Total**             | **22**    | **0**    | **0**  | **22**     |
+-----------------------+-----------+----------+--------+------------+
|                       |           |          |        |            |
+-----------------------+-----------+----------+--------+------------+
| **Land in pieces**    |           | **2**    |        | **2**      |
+-----------------------+-----------+----------+--------+------------+

See accompanying notes to the financial statement for information about
multiuse heritage assets included in PP&E. During the year, significant
renovations were made to the buildings in the amount of \$14,725,641. Of
that amount \$1,237,297 came from gifts. Repairs to Presidential
libraries are broken out separately on the Statement of Net Cost as
"Heritage asset renovation costs." One of the buildings appearing in
"Other" is a multiuse heritage asset included in PP&E on the balance
sheet.

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 that contain artifacts,
traditional holdings, and electronic holdings. 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
U.S.C. 3303a). When in the public interest, the Archivist may accept
records for historical preservation (44 U.S.C. 2107). Information about
deferred mainte­nance is contained in the Deferred Maintenance section of
Supplementary Information.

# [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 2004.

1.  **Electronic Records Archives (ERA)**

NARA, in research and development collaboration with national and
international part­ners, 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 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. In 2002, NARA became 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.
During 2002, 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**

Since FY 2000, the Archivist has identified computer security as a
material weakness in his assurance statements to the President. While
corrective steps have been taken, some actions have not been completed,
and the agency continues to work on additional measures to strengthen
NARA's overall information technology (IT) security posture. 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 2004:*         |
+-----------------------------------------------------------------------+
| -   Assessment of the Controls and Security of NARA Classified        |
|     Systems                                                           |
+-----------------------------------------------------------------------+
| -   Vulnerability of NARA E-mail to Unauthorized Access               |
+-----------------------------------------------------------------------+
| -   Evaluation of NARA's Computer Incident Response Capability        |
+-----------------------------------------------------------------------+
| -   Follow Up Review of OIG Report #00-02, Review of NARA's Process   |
|     for Investing in IT Projects                                      |
+-----------------------------------------------------------------------+
| -   Hacker Exploits NARA IT Vulnerability                             |
+-----------------------------------------------------------------------+
| -   Information on NARA's Public Website Puts NARA at Risk            |
+-----------------------------------------------------------------------+
| -   Evaluation of the First Performance Period Award Fee              |
|     Determination Process for the Fixed-Price-Award-Fee (FPAF)        |
|     Contract with a NARA Contractor                                   |
+-----------------------------------------------------------------------+
| -   Investigation of Misuse of Internet by NARA Employee              |
+-----------------------------------------------------------------------+
| -   Investigation of Child Pornography                                |
+-----------------------------------------------------------------------+

**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
improve 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.

**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.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2004:*         |
+-----------------------------------------------------------------------+
| -   Assessment of NARA's Efforts to Comply with New Facility          |
|     Standards                                                         |
+-----------------------------------------------------------------------+
| -   Investigation of Train Derailment Carrying IRS Records in NARA's  |
|     Possession; Contractor Found to be in Violation of Contract       |
+-----------------------------------------------------------------------+

**7. Preservation Needs of Records**

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.

As in the case of our national infrastructure (bridges, sewer systems,
etc.), NARA holdings grow older daily and are degrading. 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?

**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. This will present a
challenge to NARA, especially as the OMB accel­erates the due date for
submitting consolidated audited financial statements and other
performance reports into a combined Performance and Accountability
Report.

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.

The agency will be challenged in its ability to comply with the newly
issued Accounta­bility of Tax Dollars Act of 2002 much as Chief Financial
Officer (CFO) agencies were challenged in the initial year following the
passage of the CFO Act.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2004:*         |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Records Center Revolving Fund FY   |
|     2002 Financial Statements                                         |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Trust Fund FY 2002 Financial       |
|     Statements                                                        |
+-----------------------------------------------------------------------+
| -   Audit of the National Archives Gift Fund FY 2002 Financial        |
|     Statements                                                        |
+-----------------------------------------------------------------------+
| -   Audit of NARA's Interagency Agreements                            |
+-----------------------------------------------------------------------+
| -   Audit of the Transit Benefit Program                              |
+-----------------------------------------------------------------------+
| -   Review of the Contractor Compliance with Government Auditing      |
|     Standards (GAS) for the Audit of the National Archives Trust and  |
|     Gift Funds FY 2002 Financial Statements                           |
+-----------------------------------------------------------------------+
| -   Review of the Contractor Compliance with GAS for the Audit of the |
|     National Archives Records Center Revolving Fund FY 2002 Financial |
|     Statements                                                        |
+-----------------------------------------------------------------------+
| -   Evaluation of NARA's FY 2003 Management Control Program           |
+-----------------------------------------------------------------------+
| -   Review of NARA's Water and Sewer Billing Adjustment Charge        |
+-----------------------------------------------------------------------+
| -   Review of University of Texas Invoice for Utility Costs for the   |
|     Lyndon B. Johnson Library                                         |
+-----------------------------------------------------------------------+
| -   Investigation of NARA Cashier Pocketing Money Received from       |
|     Customers                                                         |
+-----------------------------------------------------------------------+
| -   Investigation of NARA Employee Splitting Purchases with           |
|     Government Credit Card to Exceed Purchase Authority               |
+-----------------------------------------------------------------------+
| -   Investigation of NARA Employee Failing to Report Money Found at   |
|     Presidential Library                                              |
+-----------------------------------------------------------------------+
| -   Investigation of Misuse of Government Credit Card                 |
+-----------------------------------------------------------------------+
| -   Investigation of Fraud Involving Transit Benefits                 |
+-----------------------------------------------------------------------+
| -   Investigation of Government Purchase Card Abuse                   |
+-----------------------------------------------------------------------+

**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 2004:*         |
+-----------------------------------------------------------------------+
| -   Audit of a Subcontractor's Proposal for Archives I Stack Lighting |
+-----------------------------------------------------------------------+
| -   Investigation of Alleged Misuses of Government Vehicles           |
+-----------------------------------------------------------------------+
| -   Investigation of Theft of Personal Checks from NARA Facility by   |
|     NARA Contractor                                                   |
+-----------------------------------------------------------------------+
| -   Investigation of Employee Bomb Threat Results in Termination and  |
|     Criminal Conviction                                               |
+-----------------------------------------------------------------------+
| -   Investigation of Recovery of Stolen NARA Computer                 |
+-----------------------------------------------------------------------+
| -   Proactive Identification of Taylor Pardon Stolen by former NARA   |
|     Employee                                                          |
+-----------------------------------------------------------------------+

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.

+-----------------------------------------------------------------------+
| > *Audits, investigations, and reviews performed in FY 2004:*         |
+-----------------------------------------------------------------------+
| -   Investigation of Employee Discipline for Time and Attendance      |
|     Abuse                                                             |
+-----------------------------------------------------------------------+
| -   Investigation of Time and Attendance Errors                       |
+-----------------------------------------------------------------------+

# [Appendix B]{.smallcaps} FEDERAL MANAGERS' FINANCIAL INTEGRITY ACT REPORT {#appendix-b-federal-managers-financial-integrity-act-report .AR-Part-Title}

# ![](media/image20.wmf){width="0.989763779527559in" height="0.8889763779527559in"}![](media/image21.png){width="0.8755905511811024in" height="0.3409448818897638in"}  {#section-26 .AR-Part-Title .unnumbered}

#  {#section-27 .AR-Part-Title .unnumbered}

#  {#section-28 .AR-Part-Title}