**Minutes of the Senior Assessment Team ViTS**

**May 5, 2008**

**SAT Membership Attendees:**

Keegan, Richard J. (OPII); Scales, Charles (DA); Luedtke, Tom (OIM);
Bowie, Terry (OCFO); Howard, Thomas J. (OIG); Maizel, Roy A. (SMD);
Lloyd, James D. (OSMA); German, Bobby (OCIO); Center Participants MSFC,
LARC, GSFC

**Support Staff Attendees:**

Thomas, Robert (OICMS); Kit, Walter (OCIO); Werner, John (OICMS);
Wright, James (OIA); McFadden, Mike (OICMS); Clement, William (OICMS);
McNally, William (OP); Sorrels, Carrie (OCE); Gabourel, Gail (SOMD);
Allen, Gale (ESMD); Carter, Kelly (PA&E); Irving, Tom (ARMD); Spear,
Katie (OGC); Becker, Lou (OICMS); Stockman, Patti (OCIO)

**Status of Actions** **from Last SAT Meeting** Lou Becker

-   HQ to replace ISO 9001 certification with internal OICMS audits

-   Contractor to support new audit program

-   Data Integrity Management Challenge now merged into Financial
    Management Material Weakness

    **List of Concerns from 2007 Statement of Assurance** Lou Becker

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-   12 concerns presented to OMC

-   Internal Control deficiencies identified in the 2008 SoA process

    -   Major issues to be presented to OMC

    -   Minor deficiencies tracked at SAT level

    -   New Watch List deficiency form

    -   New SoA Concerns form

> **Status of Watch List Deficiencies**

Records Management Patti Stockman

-   Records Management continues as Management Challenge

-   May recommend closure at next SAT meeting

> IT Security Marion Meissner

-   Certification and Accreditation established

-   Will likely recommend reduction of IT Security from Material to
    Other Weakness at next SAT meeting

-   OMB has reduced NASA IT Security from Red to Yellow

    IT Security (cont.) Jerry Davis

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-   IT Security Program currently running 22 projects over 8 centers

-   Encryption to be complete by end of calendar year 2008

Contract Management Rick Keegan

-   Recommend Other Weakness be kept open

-   NASA to modify Corrective Action Plan to meet OMB guidelines

-   Deficiency to be presented at June OMC

> Asset Management Terry Bowie

-   Legacy Assets (Shuttle and Station) represent \$15 billion of NASA's
    \$20 billion on the books

-   Reconstruction of Shuttle and Station account will not be done

-   OMB & FASB agree with NASA decision

-   Parts transferred from Shuttle to Constellation will be tracked

-   Recommend be kept as material weakness

> Financial Management Staffing Terry Bowie

-   Training and recruiting issues continue

-   Recommend be kept as management challenge

> Data Integrity Terry Bowie

-   Data Integrity had been a management challenge

-   Approved to move into the Financial Management material weakness at
    last OMC meeting

> **Status of items on 2007 SoA "List of Concerns"**
>
> Contract /Grant closeout Bill McNally

-   Issue of freeing up funds before they expire

-   Quick Closeout procedures not fully utilized

-   Recommend be kept as area of concern

> Charge Card Policies Mike McFadden

-   OIG & GAO audits revealed charge card misuse

-   NPD in review stage

-   Recommend be kept as area of concern until NPD is final

> Funds Distribution Terry Bowie

-   Issue of Funds Distribution resolved

-   Still need to look at lower levels when OCFO funds distributed

> Sensitive But Unclassified Information (SBU) Lou Becker

-   NPR 1600.1 in revision with projected due date of June 2008

-   Recommend be kept open until issuance of NPR 1600.1

    Facility Maintenance Repair Jim Wright

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-   GAO Multi-Agency audit

-   Recommend be kept open

> Human Resources Rick Keegan

-   Chris Scolese & others discussing hiring issues

-   Recommend Area of Concern be kept open

    CM&O Funding Rick Keegan

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-   Balancing risk across the Agency

-   Recommend Area of Concern be kept open

> Integrated Long Term Planning Rick Keegan

-   Limitations of long term planning discussed

-   Recommend Area of Concern be kept open

    NSSC Transition Issue Terry Bowie

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-   Not all Centers transitioned

-   Recommend Area of Concern be kept open

> Financial Systems, Analysis and Oversight Terry Bowie

-   OCFO developed a Comprehensive Monitoring Program (CMP)

-   Environmental Liability requirements changed for estimating

-   Recommend Area of Concern be kept open

> Kelly Carter asked about two "concerns" not discussed:
>
> Diversity and Equal Opportunity John Werner

-   Action completed -- recommend closure

-   SAT agreed to close

> Property Management John Werner

-   Action completed -- recommend closure

-   SAT agreed to close

> **Status of 2008 Statement of Assurance Process** Mike McFadden

-   Noted interim deliverable dates used to ensure progress

-   All organizations have been briefed on 2008 process

> **DECISIONS**
>
> All recommendations pertaining to status of OMC Watch List
> Deficiencies and Statement of Assurance Areas of Concern were approved
> by the SAT.
>
> **ACTIONS**

1.  Each owner of an OMC watch list deficiency will use the new Watch
    List deficiency form for future briefings.

2.  Each owner of a SoA minor deficiency will use the new SoA Concerns
    form for future briefings.