Homeland Security: Information Technology Funding and Associated 
Management Issues (13-DEC-02, GAO-03-250).			 
                                                                 
Information technology (IT) will play a critical role in	 
strengthening our nation's homeland security against potential	 
future attacks. Specifically, IT will help enable the nation to  
identify potential threats, share information more readily,	 
provide mechanisms to protect our homeland, and develop response 
capabilities. The Permanent Subcommittee on Investigations of the
Senate Committee on Governmental Affairs requested that we	 
identify, for fiscal years 2002 and 2003, IT funding targeted for
purposes related to homeland security in those departments and	 
agencies that play a key role in this mission area and, using our
prior work, report on the IT management issues facing these	 
organizations. In commenting on a draft of this report, agencies 
provided technical comments that were incorporated in the report,
as appropriate. 						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-250 					        
    ACCNO:   A05727						        
  TITLE:     Homeland Security: Information Technology Funding and    
Associated Management Issues					 
     DATE:   12/13/2002 
  SUBJECT:   Counterterrorism					 
	     Emergency preparedness				 
	     Federal funds					 
	     Information technology				 
	     National defense operations			 
	     National preparedness				 
	     Funds management					 
	     Information resources management			 
	     Strategic planning 				 

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GAO-03-250

                                       A

Report to the Chairman and Ranking Minority Member, Permanent Subcommittee
on Investigations, Committee on Governmental Affairs, U. S. Senate

December 2002 HOMELAND SECURITY Information Technology Funding and
Associated Management Issues

GAO- 03- 250

Lett er

December 13, 2002 The Honorable Carl Levin Chairman The Honorable Susan
Collins Ranking Minority Member Permanent Subcommittee on Investigations
Committee on Governmental Affairs United States Senate

Information technology (IT) will play a critical role in strengthening our
nation's homeland security against potential future attacks. Specifically,
IT will help enable the nation to identify potential threats, share
information more readily, provide mechanisms to protect our homeland, and
develop response capabilities. As you requested, our objectives were to
identify fiscal years 2002 and 2003 IT funding targeted for purposes
related to homeland security in those departments and agencies that play a
key role in this mission area and, using our prior work, report on the IT
management issues facing these departments and agencies.

To identify IT funding targeted for purposes related to homeland security
in fiscal years 2002 and 2003, we requested and reviewed budget
documentation from each of the 24 chief financial officer (CFO)
departments and agencies, including their Exhibit 300s, 1 Exhibit 53s, 2
and other documents that identify IT funding for homeland security. In
addition, we reviewed the Office of Management and Budget*s (OMB) June
2002 Annual Report to Congress on Combating Terrorism and the President*s
June 2002 report entitled The Department of Homeland

Security.

To report on the IT management issues facing the 24 CFO departments and
agencies, we reviewed GAO IT products for fiscal years 1997- 2002. We
identified the recommendations from these products, which we organized

by department or agency, and categorized them into specific IT areas (for
example, information security). Subsequently, we followed up on each 1
Exhibit 300s are federal budget documents containing program and project
information and associated cost, schedule, and performance information. 2
Exhibit 53s list all of the IT projects and their associated costs within
a federal organization and are to be prepared each year as part of the
budget process in accordance with OMB Circular A- 11.

recommendation to determine whether action had been taken to address it. 3
On October 1, 2002, we provided a briefing to your offices on the results
of this work. 4 The briefing slides are included as appendixes I* III. As
agreed with your offices, the purpose of this letter is to provide the
published briefing slides to you.

In brief, we identified $2. 9 billion in IT funding for homeland security
for fiscal year 2002 and for fiscal year 2003. For fiscal year 2002, $1.2
billion is for organizations (agencies, departments, or components of
these)

proposed to move to the Department of Homeland Security. For fiscal year
2003, $1. 7 billion is for organizations proposed to move to the new
department. However, total reported IT funding for homeland security is
likely understated, because there may be other potential costs that are
not reflected in reported totals, including multi- agency IT
infrastructure (for example, secure networks), new intelligence systems,
and funding for existing agency missions that appear to be related to
homeland security (for example, Department of Defense, Federal Aviation
Administration).

The majority of the funding requested for fiscal year 2003 was reported by
the Department of Justice*s Immigration and Naturalization Service (INS),
the Department of Transportation*s Transportation Security Agency, and the
Department of the Treasury*s United States Customs Service. Beginning with
the fiscal year 2004 budget submission, agencies are to indicate in
Exhibit 53s whether IT projects are related to homeland security.

The organizations that are proposed to move to the new department will
face IT management issues. Of those organizations with significant IT
funding that are proposed to move to the new department, the FBI*s
National Infrastructure Protection Center, the INS, the Coast Guard, and
Customs have a large number of GAO recommendations that still require
action. Although we did not have specific open recommendations for many of
the organizations proposed to move to the Department of Homeland Security,
most are from parent organizations that, based on our prior work,

still face IT management issues. Of those recommendations that still 3 Our
approach focused on agencies and areas where we have conducted IT reviews
and was not intended to reflect IT management capabilities across the
government. Also, it did not include Inspector General reports.

4 We have amended the briefing as of November 22, 2002, to include minor
changes and technical updates.

require action, the majority of open recommendations are associated with
securing information (information security), having an architecture or
blueprint to guide system development efforts (enterprise architecture),
managing IT investments (investment management), and developing and
acquiring information systems (systems development and acquisition). Since
September 1996, we have reported that poor information security is a

widespread federal problem and therefore have designated it a
governmentwide high- risk area.

Agency Comments We provided a draft of this report to the 24 CFO
departments and agencies for comment. Several departments and agencies
provided oral technical comments that we have incorporated into this
report, as appropriate.

As agreed with your staff, unless you publicly announce the contents of
this report earlier, we plan no further distribution of it until 30 days
from the date of this letter. At that time, we will send copies of this
report to other interested congressional parties. We also will make copies
available to others upon request. In addition, the report will be
available at no charge on the GAO Web site at http:// www. gao. gov.
Should you or your staff have any questions on matters discussed in this
report, please contact me at (202) 512- 6408. I can also be reached by E-
mail at WillemssenJ@ gao. gov. Key contributors to this report were Lester
Diamond, Joanne Fiorino, Robert Kershaw, Dave Powner, Karl Seifert, Kevin
Secrest, and Eric Winter.

Joel C. Willemssen Managing Director, Information Technology Issues

Appendi xes Homeland Security IT Funding and

Appendi x I

Associated Management Issues ......... . .. .. ...... ... . ... ... ...
....... .. . ...

. ... ... ... ....... ..... ... .. ...........

Note: We have amended the briefing as of November 22, 2002, to include
minor changes and technical updates.

Overview Objectives Scope and Methodology Background Homeland Security
Information Technology ( IT) Funding IT Management Issues of Organizations
Involved in

Missions Related to Homelan Security

Objectives To assist in oversight of homeland security IT spending for
organizations proposed to move to the Department of Homelan Security, we
were requested to

identify fiscal years 2002 and 2003 IT funding targeted for purposes
relating to homeland security in departments and agencies that play a key
role in this mission area, and

using prior work, report on the IT management issues facing these
departments and agencies.

Scope and Methodology To identify fiscal years 2002 and 2003 IT funding
targeted for purposes relating to homeland security, we

requested and reviewed budget documentation from each of the 24 chief
financial officer ( CFO) agencies, including ( 1) Exhibit 300s, a ( 2)
Exhibit 53s, b and ( 3) other documents that identify homelan security IT
funding;

reviewed ( 1) OMB s June 2002 Annual Report to Congress on Combating
Terrorism , ( 2) the President s June 2002 Department of Homeland Security

report, and ( 3) OMB s memoranda to selected agencies telling them to
cease temporarily new IT infrastructure and business system investments
associated with organizations proposed to move to the Department of
Homeland Security.

In meetings with departments and agencies, we suggested that they use the
homeland security definition found in OMB s June 2002 Annual Report to
Congress on Combating Terrorism as a guideline when identifying homeland
security IT funding. a Exhibit 300s are federal budget documents
containing program and project information and associated cost, schedule,
and performance information. b Exhibit 53s list all of the IT projects an
their associate costs within a fe eral organization and are to be prepared
each year

as part of the budget process in accordance with OMB Circular A- 11.

Scope and Methodology ( cont d) To report on the IT management issues
facing the 24 CFO a departments and agencies, we

reviewed GAO IT products for fiscal years 1997 2002; categorized the open
recommendations by department into

specific IT areas ( for example, information security) ; followed up on
each open recommendation to see if it had been

closed. This approach focused on agencies or areas where we have conducted
IT reviews and is not intended to reflect IT management capabilities
across the government. Also, it does not include Inspector General
reports.

We performed our work in Washington, D. C. , from July 2002 through
September 2002, in accordance with generally accepted government auditing
standards. a The CFO agencies are listed in appendix II.

Background The fiscal year 2003 President s budget for governmentwide

IT is about $ 52.6 billion, an increase of 8 percent from fiscal year
2002. a

Fiscal year 2003 requested homeland security funding is about $ 37.8
billion, an increase of 25 percent from fiscal year 2002. b

22 existing major components are proposed by the administration to move to
the Department of Homeland Security.

a Figure comes from OMB s Exhibit 53, Agency IT Investments Portfolio ,
June 1, 2002. b Figure comes from the OMB Annual Report to Congress on
ombating Terrorism , June 24, 2002, p. 14.

Background ( cont d)

........ . ... .. ............ .. .......... .. ..... .... . ....!
...".........#...... .. ,...../

.0% - ....

.% $ # ..

. % +,',

.% . ...*. ......

.% . .. )

.% &&'

(%

Note: The percentages for these agencies, rounded to the nearest whole
number, are approximately the same for fiscal years 2002 and 2003.

Source: Exhibit 53s, June 2002.

Background ( cont d)

Homeland Security Funding

.... ..2 4 .... ..3... . .... ..1.... .. .0(........1. ! ..).2 .. #.. ...
.0 .3. .

...".........#...... .. ...".........#...... ..

.15, &&'

&&' (%

0.% ,...../

0 % 03%

,...../ 00%

- .... . .. )

- .... 0(%

(% ..%

. .. ) .%

. ...*. ...... 0(%

. ...*. ...... +......... . ..)

.0% +......... . ..)

.0% . %

a These figures do not include funding for combating terrorism overseas
for fiscal years 2002 and 2003, nor do they include August 2002
supplemental fun ing. Source: OMB Annual Report to Congress on ombating
Terrorism , June 24, 2002, p. 14.

Background ( cont d)

Major Components P oposed by the Administration to Move to the Department
of Homeland Security ( shaded boxes are proposed divisions of DHS)

Secretary Deputy Secretary

Border and Emergency Preparedness

Chemical, Biological, Information Analysis an

Secret Transportation Security

and Response Radiological, and Nuclear

Infrastructure Protection Service Countermeasures

( Treasury) Immigration and

Federal Emergency Civilian Biodefense

Critical Infrastructure Naturalization Service

Management Agency Research Program ( HHS)

Assurance Office ( DOC) ( DOJ)

Chemical, Biological, Federal Computer Customs ( Treasury)

Radiological, and Nuclear Lawrence Livermore

Incident Response Center Response Assets ( HHS)

National Laboratory ( GSA)

Animal and Plant Health ( DOE)

National Communication Inspection Service

Domestic Emergency System ( DOD)

( USDA) Support Team

National Biological Nuclear Inci ent

Warfare Defense National Infrastructure

Coast Guard ( DOT) Response ( DOE)

Analysis Center ( New) Protection Center ( DOJ)

Federal Protective Office of Domestic

Plum Island Animal National Infrastructure

Services ( GSA) Preparedness ( DOJ)

Disease Center ( USDA) Simulation and Analysis

Center ( DOE) Transportation Security

National Domestic Agency ( DOT) Preparedness Office

Computer Security ( DOJ)

Division ( DOC) Source: The President s June 2002 Department of Homeland
Security report. The National Institute of Standards and Technology s
Computer Security Division was not included in the President s original
proposal, but was incorporated in the President s draft legislation to the
Congress.

Background ( cont d)

Major Components P oposed by the Administration to Move to the Department
of Homeland Security, by Department or Agency

Department of Agricultu e Department of Health and Human Services

Animal and Plant Health Inspection Civilian Biodefense Research Program

Service Chemical, Biological, Radiological, and Nuclear

Plum Island Animal Disease Center Response Assets

Department of Commerce Depa tment of Justice

Critical Infrastructure Assurance Office Immigration and Naturalization
Service

NIST Computer Security Division National Infrastructure Protection Center

Depa tment of Defense

National Domestic Preparedness Office National Communications System

Office of Domestic Preparedness

Depa tment of Energy Depa tment of Transpo tation

Lawrence Livermore National Laboratory Transportation Security Agency

National Infrastructure Simulation an Coast Guard

Analysis Center

Depa tment of the Treasu y

Nuclear Incident Response Secret Service

Federal Emergency Management Agency

Customs Service

Gene al Services Administration New/ othe o ganizations

Federal Computer Inci ent Response Center Domestic Emergency Support Team

Federal Protective Service National Biological Warfare Defense Analysis
Center

Source: The President s June 2002 Department of Homeland Security report.
The National Institute of Standards and Technology s Computer Security
Division was not included in the President s original proposal, but was
incorporated in the President s draft legislation to the Congress.

Homeland Security IT Funding We identified $ 2.9 billion in enacted and
requested homeland security IT

funding for both fiscal years 2002 and 2003. For a detailed breakdown of
homeland security IT funding by CFO agency, see appendix II.

Twenty- one organizations provided us with figures on homeland security IT
funding for fiscal years 2002 and 2003; 3 organizations indicated that
they do not have any fiscal years 2002 and 2003 homeland security IT
funding. We received and incorporated information from the Departments of
Energy and Justice and the Environmental Protection Agency after the date
of this briefing.

Beginning with the fiscal year 2004 budget submission, agencies are to
indicate in Exhibit 53s whether IT projects are related to homelan
security.

Organizations identifying homeland security IT spending used their Exhibit
53 or agency budget information to respond to our inquiry.

Homeland Security IT Funding ( cont d)

1...... ...... ..&.. .....' . ..)..... ....!6 ").7...,! ..). ..6.(...
.............#...... ..

2 4 .. ...... ..&.. .....' . ..)..... ....!6 ").7...,! ..). ..6(....
.............#...... ..

. . ...1. ! ..). . . ...1. ! ..).

- .... . .33(. 5...! . ... 5...! . ... ,! ..). .....

- .... . .06 .3. ,! ..). .03..

$ # .. . .0.0. .

$ # .. . .... ../ . ..... ../ . ..(..

. ...*. ....... ...0.

& .../.....& .... . ...*. ....... ...

' ... .. ...3. & .../.....& .... ' ... .. .... "

1. !). .03.. . .. ). .....

1. !). .0. . . .. ). .....

a This figure represents the amount Congress appropriated for fiscal year
2003. b HHS s fiscal year 2003 figure is significantly lower than that for
fiscal year 2002 because HHS is unable to determine its level of support
for fiscal year 2003 until it receives information from states an
localities to estimate their fiscal year 2003 investments.

Source: Exhibit 53s and other agency budget information.

Homeland Security IT Funding ( cont d)

FYs 2002 and 2003 Homeland Security IT Funding fo Components Proposed to
Move to the Department of Homeland Security ( Parent Organizations also
Listed)

( in millions of dollars) Depa tment o agency FY 2002 FY 2003 Agricultu e

Animal an Plant Health Inspection Service .. !"# . $!.#

Plum Island Animal Disease Center .%. .%.

Commerce

Critical Infrastructure Assurance Office .!.. .!..

Computer Security Division .!.. .!..

Defense

National Communications System .&.!.$ '&!.&

Ene gy

Lawrence Livermore National Laboratory &!&' &!&'

National Infrastructure Simulation and Analysis Center .$! . .$! .

Nuclear Inci ent Response .!.. .!..

Federal Emergency Management Agency . '!&. .(&!".

Gene al Se vices Administ ation

Fe eral Computer Inci ent Response Center .!". .!#

Fe eral Protective Service !$" "! "

( continued)

Homeland Security IT Funding ( cont d)

FYs 2002 and 2003 Homeland Security IT Funding for Components Proposed to
Move to the Department of Homeland Security ( Parent Organizations also
Listed) ( cont d)

( in millions of dollars) Depa tment o agency FY 2002 FY 2003 Health and
Human Se vices

Civilian Bio efense Research Program .%. .%.

Chemical, Biological, Radiological, and Nuclear Response Assets .%. .%.

Justice

Immigration and Naturalization Service .& !." .#(! $

National Infrastructure Protection Center .!.. .!..

Office of Domestic Prepare ness .!.. .!..

T anspo tation

Transportation Security Agency .!.. "' !..

Coast Guar .!(. (!&'

T easury

Secret Service . !.' .&!(.

Customs Service ' .!"' '''!(.

New organizations

Domestic Emergency Support Team .%. .%.

National Biological Warfare Defense Analysis Center .%. .%.

National Domestic Prepare ness Office .%. .%.

Total .060. ... .063. ...

n/ r = not reported. Source: Agency Exhibit 53s and agency budget
information provided to GAO.

Homeland Security IT Funding ( cont d) Homeland security IT funding is
likely understated because there may

be other potential homeland security IT costs that are not reflected in
reported totals, including

multiagency IT infrastructure, including secure networks; The Department
of Defense s ( DOD) support for growing homelan

security role and associated IT expenditures; new intelligence systems;
and funding to support existing agency missions ( that is, DOD, FAA) .

IT Management Issues We issued 181 GAO products with IT- related
recommendations

'... ...#.2 .... ........

for fiscal years 1997 2002

7... .

that contained 1,715

.* .

recommendations, of which 789 remain open as of

3.(

August 2002, and

(..

926 are closed. Source: GAO.

IT Management Issues ( cont d) Specific IT Areas

Our prior IT work generally focused heavily on four major IT areas:

information security, enterprise architecture, investment management, and
systems development and acquisition.

As a result, most of our open IT recommendations are in these areas.

We have conducted governmentwide reviews in information security and
architecture.

Other IT areas covered by our prior recommendations included E-
government, human capital, information management, systems operations, and
telecommunications.

IT Management Issues ( cont d)

.* ..2 .... ........6.").'* ..#......, .. ').. ....* ....... .. ').. ...$
. ..*. ...

% . . .... .......... .. 3..

0% 0 %

../ . .. & ....7.*..... 0 .

0% 0% ... ... ...5...!. ...

( . 00%

, ./.. .. . ... 3%

..#. .......' . ..). 18!.. .. ... (.

. 0. 0%

..% ..#. .......5...! . ...

... .%

Source: GAO.

IT Management Issues ( cont d) Number Number of of agencies agencies

Information Security

Since September 1996, we have ( 1) reported that poor information security
is a widespread federal problem and ( 2) designated it a governmentwide
high- risk area.

As shown below, our latest analysis reveals information security
weaknesses for the 24 agencies in the 6 major areas of general controls
outlined in GAO s criteria for performing information security reviews.

Significant Significant weaknesses weaknesses Area Area not not reviewed
reviewed No No significant significant weaknesses weaknesses identifie
identifie

24 24 20 20 16 16 12 12

8 8 4 4 0 0

Program Program

Access Access Software Software

Segregation Segregation

System System

Service Service management management

change change of of duties duties

software software

continuity continuity Source: Source: Au Au it it reports reports issued
issued October October 2001 2001 through through October October 2002.

2002.

IT Management Issues ( cont d)

Architecture ( EA)

+ ." ..#..! ... .

Enterprise We reported in February 2002, on the basis of 2001 data, that
agencies use of EAs ( that is, blueprints that specify how agencies
operate today, how they want to operate in the future, and how they will
get there) is immature. Only 4 percent reported having management
practices at framework stages 4 and 5, which are described below.

' ... )..#.. . ...,! ... .9.1,.5.. ..) .

Maturity Framework Stages

..

1Creating EA awareness

. ..

2 Building EA management .

foundations

.

3 Developing architecture products

.

4 Completing architecture

0. 0

products

. 0

5 Leveraging EA for '..! .0 '..! .. '..! .. '..! .. '..! ..

managing change

5.. ..)....!

Source: GAO.

IT Management Issues ( cont d)

Summary Listing of Components P oposed to Move to the Department of
Homeland Security and Their Stage of EA Maturity

( Parent Organizations also Listed) EA a chitecture Depa tment o agency

matu ity stage Agricultu e 0

Animal and Plant Health Inspection Service .

Commerce .

Defense .

Ene gy .

Fede al Eme gency Management Agency .

Gene al Services Administration .

Health and Human Services 0

Justice .

Immigration and Naturalization Service .

Transportation .

Coast Guar .

T easu y 0

Secret Service .

Customs Service &

Note: Only component entities for which we have enterprise architecture
ata are listed. Source: GAO.

IT Management Issues ( cont d)

Open Recommendations, by CFO Agency a

.. .. ..... )..*..... . . .

2 .

.............*..... . . .

19

..... .. .........*..... . . . .

2

+. .. ...... ...

34

.

346

,.. ...) ,. ..- . . . .

40

.

16

... ... .

17

.. ... .

22

/ ...... .*.0.. ..1.... -...

4

/. . .. .*./.. .. ....... .

1

2....) .

17

2*.. . .

2

1...... .

119

. ...... .

34

....... ... .

16 0 50 100 150 200 250 300 350

Open recommendations a See appendix III for a detailed breakdown of the
open IT recommendations by specific IT area and CFO agency.

b Components of these organizations have been propose to move into the
Department of Homeland Security. Note: There are 77 open IT
recommendations not pertaining to the 24 CFO agencies, including 38
directe to OMB. Source: GAO.

IT Management Issues ( cont d)

Open IT Recommendations for Components Proposed to Move to the Department
of Homeland Security ( Parent Organizations also Listed)

Open Depa tment o agency ecommendations Agricultu e 0.

Animal and Plant Health Inspection Service . ..

Plum Island Animal Disease Center . ..

Commerce ..

Critical Infrastructure Assurance Office . ..

Computer Security Division . ..

Defense 00(

National Communications System . ..

Ene gy 03

Lawrence Livermore National Laboratory . ..

National Infrastructure Simulation and Analysis Center . ..

Nuclear Incident Response . ..

Fede al Eme gency Management Agency ...

General Services Administration .

Fe eral Computer Incident Response Center . ..

Fe eral Protective Service . ..

Health and Human Services 0

Civilian Biodefense Research Program . ..

Chemical, Biological, Radiological, and Nuclear Response Assets . ..

( continued)

IT Management Issues ( cont d)

Open IT Recommendations for Components Proposed to Move to the Department
of Homeland Security ( Parent Organizations also Listed) ( cont. )

Open Department or agency ecommendations Justice 03

Immigration and Naturalization Service a #

National Infrastructure Protection Center b #

Office of Domestic Prepare ness . ..

Transportation .

Transportation Security Agency . ..

Coast Guar c .&

T easu y ...

Secret Service . ..

Customs Service #

New O ganizations ...

Domestic Emergency Support Team . ..

National Biological Warfare Defense Analysis Center . ..

National Domestic Preparedness Office . ..

Total .(.

a 3 open IT recommendations in architecture and 5 in investment
management. b 8 open IT recommendations in information security. c 4 open
IT recommendations in information security, 4 in information management, 1
in human capital, and 16 in systems development. d 6 open IT
recommendations in systems development, 1 in architecture, and 1 in human
capital. Source: GAO.

IT Management Issues ( cont d)

Closed IT Recommendations, by CFO Agency

..... .. .........*..... . . .

11

2.... .... .... .. . .......)

19

+. .. ...... ...

55

,.. ...)

324

.

16

,. ..- . . .

69

... ...

18

.. ... .

65

/. . .. .*./.. .. .......

44

1......

9

. ......

74

....... ...

17

. .....3.. ....... .

29 0 50 100 150 200 250 300 350

Closed IT recommendations a Components of these organizations have been
propose to move into the Department of Homeland Security.

b These include 8 closed IT recommendations associated with the Social
Security A ministration and the Small Business A ministration, 6 with the
National Aeronautics and Space Administration, 4 with the Department of
Housing and Urban Development, and 3 with the Department of Education.

Note: There are 92 closed IT recommendations not pertaining to the 24 CFO
agencies, including 18 directed to OMB. Source: GAO.

Homeland Security IT Funding, by CFO

Appendi x II

Agency Homeland Security IT Funding, by CFO Agency

.... .. .... .. . !...:.....

..........#...... ..

Agriculture .. !"# . $!.#

Commerce .!.' .!."

Defense .&.!.$ '&!.&

E ucation ! !(&

Energy .(.!&& .&$!$$

Environmental Protection Agency .!... .!..

Housing an Urban Development .!.. .!..

Interior !($ !#'

Justice ...."!## ((#!$&

Health and Human Services #"!$' " !#.

Labor . !($ ..!".

State .!.. ..'!".

Veterans Affairs .#!.. .!"&

Agency for International Development .!.& .! $

( continued)

Homeland Security IT Funding, by CFO Agency ( cont d)

.... .. .... . . !...:.....

..........#...... ..

Fe eral Emergency Management Agency . '!&. .(&!".

General Services Administration .(! ' .#!.$

Transportation .!(. "#.!('

Treasury " '!'" " !((

National Aeronautics and Space Administrion ""!.. &.!..

National Science Foundation ..$!.( ..&!..

Nuclear Regulatory Commission !$ .!&.

Office of Personnel Management .!.. .!..

Small Business Adminstration .!.. .!..

Social Security Adminstration '!.# "!.

..... ..6.(0... ..6(...(.

Source: Agency Exhibit 53s and agency budget information provided to GAO.

Appendi x II I Open Recommendations, by CFO Agency Open Recommendations,
by CFO Agency

. )

. ....

..... . ..

... ...

. . .

. .. . ...

-. .

*.... -... . -..

.. -.... . ....

... ..

..

. !...:.....

, ... .. ... ..

2... . ..... ....... ..... .. ...

..... ... .. /.. ). .

). . ,.... ...... . ...

$ *. .. ....#.,! .. .. .......1.- . ... 4.*. .. ' .

...... ..

$ *. .. ....#.7... .

.... .. .. ......... . 1.- . ... 4.*. . ......

$ *. .. ....#.$ # ..

1.......... .. . .. ). .... .....) . ".& & 1.......5 ... .........) & ."
....... .. ........ . . .... .).

. ... .. .*... . . ... . ...... . .... .*. .. ......... ' . . . . .......
.. ............ .. . .. ....... . .

... ..3.. ... ..6 . ..... . ........ .. ..... . 1.- . ... 4.*. ." $ & ." &
. .

..... ...

( continued)

Open Recommendations, by CFO Agency ( cont d)

. .. . ..

. . ........ )

. .. ....

-. .. -.......

..... . ... .

..... ...

. !...:.....

, ... .. ... .. .

... . .

. 2

. ....... ..... .. ...

.... .

/.. ). ....

*.... -... ). .... -..

,.... ...... . ...

$ *. .. ....#.1. ......

.......1.- . ... 4.*. .

......

$ *. .. ....#.1. !)

....... .. ............ .. . .. ....... . 1.- . ... 4. *. .&

...... .

$ *. .. ....#.& .../.....& .... ' ... .

.......1.- . ... 4.*. .

...... .

$ *. .. ....#../ .... ..

.......1.- . ... 4.*. .' . . &

......

$ *. .. ....#.- ....

...... . .. .*.7 .. ..8 . .. ...... & 7 . . ...... . ... .... .. .. .
..... .. # 1.- . ... 4. *. .

...... .

$ *. .. ....#.'...

.......1.- . ... 4.*. " & &

...... ..

( continued)

Open Recommendations, by CFO Agency ( cont d)

. )

. .. . .

.

. ....... . ..

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a

GAO United States General Accounting Office

We identified $2. 9 billion in IT funding for homeland security for fiscal
year 2002 and for fiscal year 2003. For fiscal year 2002, $1.2 billion of
it is for organizations (agencies, departments, or components of these)
proposed to move to the Department of Homeland Security. For fiscal year
2003, $1. 7 billion is for organizations proposed to move to the new
department. Total reported IT funding for homeland security is likely
understated. For example, there may be other potential costs that are not
reflected in reported totals, including multi- agency IT infrastructure
(for example, secure networks), new intelligence systems, and funding for
existing agency missions that appear to be related to homeland security
(for example, Department of Defense, Federal Aviation Administration).

Of those organizations with significant IT funding that are proposed to
move to the new department, the FBI*s National Infrastructure Protection
Center (NIPC), the Immigration and Nationalization Service (INS), the
Coast Guard, and Customs have a large number of GAO recommendations from
our prior work that still require action (see figure below). Although we
did not have specific open recommendations for many of the organizations
proposed to move to the Department of Homeland Security, most are from
parent organizations that, based on our prior work, still face IT
management issues. The majority of open recommendations are associated
with securing information, having an architecture or blueprint to guide
system development efforts, managing IT investments, and developing and
acquiring information systems. Since September 1996, we have reported that
poor information security is a widespread federal problem and therefore
have designated it a governmentwide high- risk area.

Selected Departments with Open GAO IT Recommendations and Associated
Homeland Security IT Funding Requested for Fiscal Year 2003

Department Open recommendations Homeland security IT funding (in millions)

Treasury (including Customs) 346 $633.77 Transportation (including Coast
Guard) 69 680.74

Justice (including NIPC, INS) 17 778.95

Totals 432 $2,093.46

Source: GAO and agency budget information provided to GAO. www. gao. gov/
cgi- bin/ getrpt? GAO- 03- 250.

To view the full report, including the objectives, scope, and methodology,
click on the link above. For more information, contact Dave Powner at
(202) 512- 9286 or PownerD@ gao. gov Highlights of GAO- 03- 250, a report
to the

Chairman and Ranking Minority Member, Permanent Subcommittee on
Investigations, Committee on Governmental Affairs, U. S. Senate

December 2002

HOMELAND SECURITY

Information Technology Funding and Associated Management Issues

Information technology (IT) will play a critical role in strengthening our
nation's homeland security against potential future attacks. Specifically,
IT will help enable the nation to identify potential threats, share
information more readily, provide mechanisms to protect our homeland, and
develop response capabilities. The Permanent Subcommittee on
Investigations of the Senate Committee on Governmental Affairs requested
that we identify, for fiscal years 2002 and 2003, IT funding targeted for
purposes related to homeland security in those departments and agencies
that play a key role in this mission area and, using our prior work,
report on the IT management issues facing these organizations.

In commenting on a draft of this report, agencies provided technical
comments that were incorporated in the report, as appropriate.

Page i GAO- 03- 250 Homeland Security

Contents Letter 1

Agency Comments 3 Appendixes

Appendix I: Homeland Security IT Funding and Associated Management Issues
4

Appendix II: Homeland Security IT Funding, by CFO Agency 29

Appendix III: Open Recommendations, by CFO Agency 31

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