# Presentation: 067409

## OMB Circular A-11 IT Budget Exhibits for FY2006

- Office of Management & Budget
- May 26th & 27th, 2004

## Agenda

- Opening Remarks -- Karen Evans
- Expectations for FY2006 -- Glenn Schlarman
- IT Budget Submissions -- K. Nelson & L. Uher
- Recap of FY2005 Budget
- FY2006 Budget Process
- A-11 Update
- Spring Planning Guidance
- Using exhibits 53 and 300
- Self-evaluations
- Information Resources Management (IRM) Strategic Plan Addendum
- Exhibit 53 specific data quality issues
- Exhibit 300 specific data quality issues
- Questions

## Recap of FY2005

- FY2005 Federal IT Portfolio
- totals almost $60 billion (1.1% increase over FY204)
- over 1200 major investments
- about half met the “acceptable business case” criteria on the PMA e-Gov Scorecard
- 621 business cases = $22 billion on OMB’s “Management Watchlist”
- includes mission critical projects that need to improve performance measures, earned value management, and/or security
- agencies directed to demonstrate ability to remediate weaknesses before spending funds
- deficiencies not corrected by June 30 make business cases unacceptable for purposes of PMA Scorecard

## A-11 Update

- Release A-11 draft to CIOC 			  March 26
- Comments due to OMB			  April 12
- Open Forum Discussion at CIOC Meeting	  April 14
- User Groups Meeting (e.g., e-CPIC, ProSight)	  April 15
- Release draft XML Schema			  April 20
- Limited Testing					  April 26-29
- Release Revised XML Schema		  May 4
- Full Testing					  May 6-14
- Release “99% Solution” and Final Schema	  May 25
- OMB Training for Agencies			  May 26-27
- FY2006 Budget Requests Due to OMB	  Sep 13

## Spring Planning Guidance

- BPM No. 870 issued May 19, 2004
- advance copy of guidance (will appear in A-11, section 30)
- national priorities are:
- winning the war on terror
- protecting the homeland
- strengthening the economy
- agencies must –
- assume accounts are funded at the 2006 level specified in the 2005 Budget database –
- increases in funding above that level for any account _must be offset_ within your agency by proposing to decrease funding below that level in other accounts so that, in total, your request does not exceed the 2006 level assumed by the agency
- ensure IT investments create a citizen-centered electronic presence, advance the Federal e-government strategy, and support core agency functions
- demonstrate you are using your capital planning process to effectively manage your portfolio of capital assets to allocate scarce resources to achieve results

## Using Exhibits 53 & 300

- OMB assesses –
- the “health” of individual investments
- the agency’s overall capital planning and investment control process
- Investment and program performance
- how the agency’s IT portfolio is aligned with federal programs evaluated using OMB’s Program Assessment Rating Tool (PART)

## Self-Evaluations	

- Agencies must evaluate each exhibit 300 using the Evaluation criteria in section 300.10 and include the results with their budget submissions in September
- we expect that only well planned, managed and performing investments (i.e., those accurately scoring a "4" or “5”overall with a “4” or higher for security) will request funding in FY2006
- we expect that our assessments will compare favorably with agency evaluations; if not, we’ll need to understand why

## IRM Addendum 

- Each agency must include, as an addendum to its IRM strategic plan, a summary of the results of their IT Portfolio management process, i.e.,
- how management of the IT portfolio has enhanced the quality of IT investments, resulting in improved program performance and more efficient use of _all_ IT assets.
- demonstrating how the IT portfolio aligns and integrates with agency programs evaluated using the OMB’s Program Assessment Rating Tool (PART)

## Exhibit 53 Data Quality

- Testing draft exhibit 53 submission scheduled for later this summer
- To improve data quality –
- maintain the format of the cells in the exhibit 53 template provided by OMB.
- report financial information in Millions ($) on both exhibits 53 & 300 (may be reported to 3 significant digits)
- Keep financial information on exhibit 53 & 300 consistent
- verify that all “Unique Project IDs for FY2006” are unique (don’t use  the same ID for multiple investments)
- complete all rows; there should be no orphan unique ID’s
- verify that all unique IDs are in the format specified in A-11, section 53.8
- DO NOT use a “Hard Return” in any field

## Exhibit 53 Data Quality

- data entered in the columns “Percentage IT security” and “Percentage financial” must be decimal numbers, i.e., a value of “50” is understood to mean fifty percent.  If the intent is to enter a value of one-half of one percent, then the data entry must be “.50.”
- properly code the individual investments that are part of or linked to the 24 government-wide Presidential E-Gov initiatives or 5 LoB task force initiatives (_Do not enter a value of "24" code in the 16th and 17th digits of the Unique ID for any other investments_ unless specifically directed or approved by OMB)
- identify a primary Sub-function mapping for ALL investments, i.e., “999” _will not_ be an acceptable 3 digit code for the 21st, 22nd, and 23rd digits of the unique ID number _unless_ an agency receives prior OMB approval (i.e., by not later than August 13, 2004)
- provide a single business case (line item in the Exhibit 53) for the Department-level EA effort under Part 3, Enterprise Architecture and Planning

## Exhibit 53 Data Quality

- for joint business cases, participating agencies must _include the Unique ID of the Managing Partner_ investment in the "Investment Description" field; the last 12 digits of Unique IDs for joint projects reported by Managing Partners and participating agencies _must match_
- “Mode of Delivery” is no longer a primary business area in the BRM, therefore agencies may no longer use the “_2_XX:  Primary Mode of Delivery layer” code for the 18th, 19th, and 20th digits of the investment’s unique identification number
- a primary LoB mapping must be identified for _all_ investments -- “100”, “200”,  “300”, “400” will not be acceptable 3 digit codes for the 18th, 19th, and 20th digits of the unique ID number _unless_ an agency receives prior OMB approval (by not later than August 13, 2004)

## Exhibit 53 Data Quality

- provide the DME and SS amounts for non-major investments to _improve the accuracy_ of "total" and "subtotal" amounts reported
- Consolidate & report Grants to States and Other Entities for Information Technology (several agencies, including HHS, USDA and Interior, already do this)
- use the nine-digit OMB budget account number to identify investment "funding sources"  (see A-11, section 79.2 for more information about the nine-digit OMB account number)
- except for government-wide E Gov initiatives, funding amounts (subtotals & totals for DME, SS & fiscal year) _must_ match amounts included on exhibit 300 (if there are discrepancies, OMB will rely on exhibit 53 for resource data_)_
- submit exhibit 300s for all major investments listed on exhibit 53 -- OMB will disregard both "orphan" exhibit 300s (i.e., no entry on exhibit 53) and exhibit 53 line items for major investments without an associated exhibit 300 (i.e., matched by unique ID and investment name/title)

## Exhibit 300 Data Quality

- In Part I:
- "Account Identification Code" means the nine-digit OMB budget account number (see A-11, section 79.2 for more information about the nine-digit OMB account number)
- "Name of Investment" means the same thing as "Investment Title" on exhibit 53.  The information provided _must_ be identical
- the "Unique Project (Investment) Identifier" _must match_ the "Unique Project ID" on exhibit 53 (all major investments must submit an exhibit 53 (all major investments listed on exhibit 53 _must_ have an associated exhibit 300)
- a "Yes" response to the question "Did the Executive/Investment Review Committee approve funding for this investment this year?" means that the agency evaluated the Business Case in accordance with the criteria specified in A-11, section 300.10, and it scored a "4" or "5" overall, with greater than a "3" for security

## Exhibit 300 Data Quality

- a “Yes” response to the question “Was this investment included in a Performance Assessment Rating Tool (PART) Review?” means that the investment supports a federal program that _has been or will be_ (in either FY2005 or FY2006) evaluated using OMB’s PART
- more information about the PART is available at
- 	http://www.whitehouse.gov/omb/part/index.html
- in section 1.C,** **all IT investments that are reported to OMB for the first time or that are DME for FY2005 and beyond must fully complete all 4 levels of the PRM in accordance with the updated FEA-related Additional Instructions due out June 4th

## Exhibit 300 Data Quality

- In Part II:
- in section II.A.1.E, agencies must identify a maximum of 3 secondary LoB and sub-function alignments supported by the IT investment
- in sections II.A.3.A and 3.C, all major investments must fully complete the SRM and TRM tables in accordance with the FEA FY06 Reference Models Revision Summary and updated FEA-related Additional Instructions due out June 4th
- a "Yes" response to question II.B.5 means that the investment is used to maintain, collect or administer information about an individual (for this purpose an individual is “a citizen of the United States or an alien lawfully admitted for permanent residence” and does not include government employees), where the information contains the name, identifying number, symbol or other identifying particular assigned to the individual _and_ the investment is DME (agencies must submit PIAs for all investments responding "Yes" to this question)

## Resources

- Resources for the FY 2006 Budget:
- Budget Procedures Memorandum No. 870: Planning Guidance for the FY2006 Budget (Issued May 19, 2004)
- Your agency’s RMO
- 99% Solution and Final Schema (v2.95) distributed to the CIO Council List Serve on Tuesday, May 25, 2004
- Final A-11 Expected to be signed by the Director in July (it will be posted on the OMB web site)
- FY2006 Budget Submission:
- FY2006 Budget Submissions due to OMB on Monday, September 13th, 2004

## Resources 

- the President’s Management Agenda at
- http://results.gov/
- E-Gov information at
- http://www.whitehouse.gov/omb/egov/
- the President's FY2005 Budget at
- http://www.whitehouse.gov/omb/budget/fy2005/
- Chapter 9, Information Technology Investments (Analytical Perspectives Budget volume) at
- http://www.whitehouse.gov/omb/budget/fy2005/pdf/spec.pdf
- Report on Information Technology (IT) Spending for the Federal Government at
- http://www.whitehouse.gov/omb/budget/fy2005/
- 	(click on the link: *Report on Information Technology (IT) Spending for the Federal Government)*

## Resources

- Information about FY2005 Budget Preparation, including FY2005 training materials:
- http://cio.gov/documents/fy_2005_Budget_Submissions.html
- OMB Circular A-94, "Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs: http://www.whitehouse.gov/omb/circulars/a094/a094.html
- OMB Circular A-130, Transmittal Memorandum #4, Management of Federal Information Resources:
- http://www.whitehouse.gov/omb/circulars/a130/a130trans4.html
- Capital Programming Guide: Supplement to Part 7 of Circular No. A-11
- http://www.whitehouse.gov/omb/circulars/a11/cpgtoc.html
- FEA information at
- feapmo.gov
- Information about earned value management systems (EVMS) at
- www.acq.osd.mil/pm and http://www.cpm-pmi.org