Information Security: Agencies Need to Develop and Implement	 
Adequate Policies for Periodic Testing (20-OCT-06, GAO-07-65).	 
                                                                 
Agencies rely extensively on computerized information systems and
electronic data to carry out their missions. To ensure the	 
security of the information and information systems that support 
critical operations and infrastructure, federal law and policy	 
require agencies to periodically test and evaluate the		 
effectiveness of their information security controls at least	 
annually. GAO was asked to evaluate the extent to which agencies 
have adequately designed and effectively implemented policies for
testing and evaluating their information security controls. GAO  
surveyed 24 major federal agencies and analyzed their policies to
determine whether the policies address important elements for	 
periodic testing. GAO also examined testing documentation at 6	 
agencies to assess the quality and effectiveness of testing on 30
systems.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-65						        
    ACCNO:   A62544						        
  TITLE:     Information Security: Agencies Need to Develop and       
Implement Adequate Policies for Periodic Testing		 
     DATE:   10/20/2006 
  SUBJECT:   Documentation					 
	     Government information				 
	     Information management				 
	     Information security				 
	     Information technology				 
	     Internal controls					 
	     Policy evaluation					 
	     Security assessments				 
	     Systems evaluation 				 
	     Systems testing					 

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GAO-07-65

   

     * [1]Results in Brief
     * [2]Background

          * [3]Federal Law and Policy Establish Federal Information Securit
          * [4]Elements Important for Performing Effective Testing and Eval

     * [5]Agencies' Policies Do Not Fully Address Elements Important f

          * [6]Agencies' Policies Have Design Weaknesses

               * [7]Policies Did Not Identify Frequency of Periodic Testing
               * [8]Policies Did Not Clearly Define Roles and
                 Responsibilities f
               * [9]Policies Lacked Adequate Instructions for Selecting
                 Minimum
               * [10]Policies Did Not Specify How to Identify and Test Common
                 Con
               * [11]Policies Lacked Adequate Instructions for Determining
                 the De
               * [12]Policies Did Not Always Describe a Process for
                 Documenting W

          * [13]Six Case Study Agencies Did Not Effectively Implement Polici

               * [14]Agencies Did Not Have Sufficient Documentation on
                 Testing
               * [15]Agencies Did Not Always Define Assessment Methods
               * [16]Agencies Did Not Always Adequately Test Security
                 Controls
               * [17]Agencies Did Not Include Remedial Actions in Testing
                 Plans

     * [18]Conclusions
     * [19]Recommendations for Executive Action
     * [20]Agency Comments
     * [21]GAO Contact
     * [22]Staff Acknowledgments
     * [23]GAO's Mission
     * [24]Obtaining Copies of GAO Reports and Testimony

          * [25]Order by Mail or Phone

     * [26]To Report Fraud, Waste, and Abuse in Federal Programs
     * [27]Congressional Relations
     * [28]Public Affairs

Report to the Chairman, Committee on Government Reform, House of
Representatives

United States Government Accountability Office

GAO

October 2006

INFORMATION SECURITY

Agencies Need to Develop and Implement Adequate Policies for Periodic
Testing

GAO-07-65

Contents

Letter 1

Results in Brief 3
Background 4
Agencies' Policies Do Not Fully Address Elements Important for Effective
Testing and Evaluation 8
Conclusions 17
Recommendations for Executive Action 18
Agency Comments 18
Appendix I Objective, Scope, and Methodology 20
Appendix II Comments from the Department of Commerce 22
Appendix III GAO Contact and Staff Acknowledgments 23

Tables

Table 1: Elements for Performing Testing and Evaluation and References to
Related Federal Standards and Guidelines 7
Table 2: Weaknesses in 24 Federal Agencies' Policies by Element 9
Table 3: Weaknesses in Six Agencies' Information Security Testing Methods
14

Abbreviations

FIPS Federal Information Processing Standard

FISMA Federal Information Security Management Act of 2002

OMB Office of Management and Budget NIST National Institute of Standards
and Technology

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separately.

United States Government Accountability Office

Washington, DC 20548

October 20, 2006

The Honorable Tom Davis Chairman Committee on Government Reform U.S. House
of Representatives

Dear Mr. Chairman:

Federal agencies rely extensively on computerized information systems and
electronic data to carry out their missions. The security of these systems
and data is essential to prevent data tampering, disruptions in critical
operations, fraud, and inappropriate disclosure of sensitive information.
Concerned with accounts of attacks on systems through the Internet and
reports of significant weaknesses in federal computer systems that make
them vulnerable to attack, Congress passed the Federal Information
Security Management Act (FISMA) in 2002.^1

Among other things, FISMA requires federal agencies to periodically test
and evaluate the effectiveness of their information security policies,
procedures, and practices as part of developing and implementing an
agencywide information security program. In addition, agencies and their
Inspectors General are required to annually report to Congress and the
Office of Management and Budget (OMB) on the adequacy and effectiveness of
information security policies and practices and compliance with the act.
The act also assigns specific responsibilities to OMB and the National
Institute of Standards and Technology (NIST). OMB's responsibilities
include (1) developing and overseeing the implementation of policies,
principles, standards, and guidelines on information security and (2)
reporting to Congress on the agencies' compliance with FISMA requirements.
OMB also provides instructions to agencies and Inspectors General to
assist them in meeting FISMA reporting requirements. These instructions
have a strong focus on performance measures, which are the basis of
agencies' annual reports and Inspectors General independent annual
evaluations. The act requires NIST to develop, for systems other than
national security systems,^2 standards and guidelines to assist agencies
in implementing their information security programs.

^1Federal Information Security Management Act of 2002, Title III,
E-Government Act of 2002, Pub. L. No. 107-347, (Washington, D.C.: Dec. 17,
2002).

As agreed with your office, our objective was to determine whether
agencies have adequately designed and effectively implemented policies for
periodically testing and evaluating information security controls. To
accomplish this objective, we conducted a survey of 24 major federal
agencies^3 and their Inspectors General, analyzed information security
policies, and selected 6 of the 24 agencies to use as case studies for
conducting in-depth evaluations of their periodic testing and evaluation
methods and practices. Specifically, to determine whether the 24 agencies
adequately designed policies for periodic testing, we obtained and
analyzed their policies to determine whether they included elements
important for conducting effective tests and evaluations. To determine
whether the 6 agencies had effectively implemented policies and
procedures, we assessed methods and practices used to test and evaluate
controls for 30 of their systems. We examined instructions, standards, and
guidelines issued by OMB and NIST as a framework for assessing the
adequacy of the 24 agencies' policies and for determining the
effectiveness of the 6 agencies' testing and evaluation methods and
practices. Details of our objective, scope, and methodology are included
in appendix I.

We conducted our work from November 2005 through July 2006 in accordance
with generally accepted government auditing standards.

^2As defined in FISMA, the term "national security systems" means any
information system (including any telecommunications system) used or
operated by an agency or by a contractor of an agency, or other
organization on behalf of an agency (1) the function, operation, or use of
which involves intelligence activities, cryptologic activities related to
national security, command and control of military forces, equipment that
is an integral part of a weapon or weapons system, or is critical to the
direct fulfillment of military or intelligence missions (excluding systems
used for routine administrative and business applications) or (2) is
protected at all times by procedures established for information that have
been specifically authorized under criteria established by an executive
order or an act of Congress to be kept classified in the interest of
national defense or foreign policy.

^3The 24 major federal agencies are the Departments of Agriculture,
Commerce, Defense, Education, Energy, Health and Human Services, Homeland
Security, Housing and Urban Development, the Interior, Justice, Labor,
State, Transportation, the Treasury, and Veterans Affairs; the
Environmental Protection Agency; General Services Administration; National
Aeronautics and Space Administration; National Science Foundation; Nuclear
Regulatory Commission; Office of Personnel Management; Small Business
Administration; Social Security Administration; and U.S. Agency for
International Development.

Results in Brief

Agencies have not adequately designed and effectively implemented policies
for performing periodic testing and evaluation of information security
controls. Agencies' policies often did not include elements important for
performing effective testing. For example, none of the agencies' policies
addressed how to determine the depth and breadth of testing according to
risk. Also, agencies did not always address other important elements,
including the identification and testing of security controls common to
multiple systems, the definition of roles and responsibilities of
personnel performing tests, and the frequency of their periodic testing.

The six case study agencies did not effectively implement policies for
periodically testing and evaluating information security controls for the
30 systems we reviewed. The methods and practices for testing and
evaluating controls at the six agencies were not adequate to provide
reasonable assurance that assessments were consistent, of similar quality,
and repeatable. For example, these agencies did not always have sufficient
documentation to support testing methods and results, did not define the
assessment methods to be used when evaluating security controls, and did
not include remedial actions in testing plans.

As a result, agencies do not have reasonable assurance that controls are
implemented correctly, are operating as intended, and are producing the
desired outcome with respect to meeting the security requirements of the
agency. In addition, agencies may not be fully aware of the security
control weaknesses in their systems, thereby leaving the agencies'
information and systems vulnerable to attack or compromise.

We are recommending that the Director of OMB instruct agencies to develop
and implement policies on periodic testing and evaluations and revise
instructions for future FISMA reporting by requesting Inspectors General
to report on the quality of agencies' periodic testing processes. We are
also recommending that the Secretary of the Department of Commerce direct
the Director of NIST to strengthen guidance on determining the depth and
breadth of testing security controls.

In oral comments on a draft of this report, OMB representatives from its
Offices of Information and Regulatory Affairs and General Counsel agreed
to consider our recommendations. We also received written comments from
the Office of the Deputy Secretary of the Department of Commerce. He
stated that NIST is already addressing our concerns and reviewing its
guidance including depth and breadth of testing security controls (see
app. II).

Background

Increasing computer interconnectivity--most notably growth in the use of
the Internet--has revolutionized the way that our government, our nation,
and much of the world communicate and conduct business. While this
interconnectivity offers us huge benefits, without proper safeguards, it
also poses significant risks to the government's computer systems and,
more importantly, to the critical operations and infrastructures they
support. We reported in 2005 that while federal agencies showed
improvement in addressing information security, they have also continued
to have significant control weaknesses in federal computer systems, which
puts federal assets at risk of inadvertent or deliberate misuse, financial
information at risk of unauthorized modification or destruction, sensitive
information at risk of inappropriate disclosure, and critical operations
at risk of disruption.^4

Federal Law and Policy Establish Federal Information Security Testing
Requirements

The Federal Information Security Management Act of 2002 requires each
agency to develop, document, and implement an agencywide information
security program. This program should provide security for the information
and information systems that support the operations and assets of the
agency, including those provided or managed by another agency, contractor,
or other source. Among other things, the program is to include periodic
testing and evaluation of the effectiveness of information security
policies, procedures, and practices, to be performed with a frequency
depending on risk, but no less than annually. The testing is to include
management, operational, and technical controls for every system
identified in the agency's required inventory of major information
systems.

The act also assigns specific responsibilities to OMB and NIST. OMB's
responsibilities include the following:

           o Overseeing agency information security policies and practices,
           including developing and overseeing the implementation of
           policies, principles, standards, and guidelines on information
           security.
           o Reviewing agency information security programs, at least
           annually.
           o Reporting to Congress annually on agency compliance with FISMA
           requirements.

           As part of the reporting process, OMB provides instructions^5 to
           agencies and their Inspectors General on the annual FISMA
           reporting requirements. These instructions include performance
           measures for such things as the number of systems for which
           security controls have been tested and evaluated in the past year.
           OMB also uses performance measures to assist in its oversight
           responsibilities and to annually report to Congress on agencies'
           compliance with the requirements of the act.

           FISMA also directs NIST to develop standards and guidelines for
           systems other than national security systems. These standards and
           guidelines instruct agencies on providing an acceptable level of
           information security for all agency operations and assets and
           contribute to the testing and evaluation of information security
           controls within an agencywide information security program.
           Recognizing the importance of documenting standards and guidelines
           as part of an agencywide information security program, NIST
           emphasizes that agencies must develop and promulgate formal,
           documented policies and procedures in order to ensure the
           effective implementation of security requirements.

           NIST standards and guidelines that contain elements applicable to
           periodic testing and evaluation include the following:

           o Special Publication 800-26, Security Self-Assessment Guide for
           Information Technology Systems, November 2001. This publication is
           a self-assessment guide for agencies to use in determining the
           current status of their information security program. The guide
           includes a standardized form for reporting the results of
           system-level assessments and a method for evaluating the
           effectiveness of the agency's information security program. The
           guide also emphasizes the importance of establishing levels of
           implementation, referred to as the IT security assessment
           framework. NIST Special Publication 800-26 is effective through
           the 2006 FISMA reporting period and will be rescinded when Special
           Publications 800-53A and 800-100^6 are finalized.
           o Special Publication 800-37, Guide for the Security Certification
           and Accreditation of Federal Information Systems, May 2004. This
           guide is to be used for certifying and accrediting nonnational
           security systems. Developed as part of NIST's project to promote
           the development of standards and guidelines to support FISMA, this
           guide specifies the need for ongoing activities to continuously
           monitor the effectiveness of security controls.
           o Special Publication 800-53, Recommended Security Controls for
           Federal Information Systems, February 2005. This publication
           provides instructions on selecting and specifying security
           controls for information systems. It also provides the set of
           security controls that satisfy the depth and breadth of security
           requirements levied on information systems and provides the
           fundamental concepts associated with security controls selection
           and specification, including the identification and use of common
           security controls. In conducting security assessments, NIST states
           that assessment results^7 can be used and shared to enhance the
           efficiency of evaluations and reduce security program costs.
           o Special Publication 800-53A, Guide for Assessing the Security
           Controls in Federal Information Systems, April 2006. The
           publication is a second public draft to be used by agencies to
           assess the effectiveness of security controls employed in federal
           information systems. NIST establishes methods and procedures to
           assess the security controls in federal information systems,
           specifically those controls listed in NIST Special Publication
           800-53, Recommended Security Controls for Federal Information
           Systems. These methods and procedures are designed for agencies to
           use in determining if the controls are implemented correctly,
           operating as intended, and producing the desired outcome with
           respect to meeting the security requirements of the agency. NIST
           closed acceptance of public comments on this draft on July 31,
           2006, and plans to issue a final publication in December 2006.
			  
			  Elements Important for Performing Effective Testing and Evaluation

           Having well-designed policies is critical for performing effective
           testing and evaluation of security controls. To assist agencies,
           OMB and NIST developed instructions, standards, and guidelines for
           testing and evaluating the controls over information systems. We
           used the following six elements to evaluate agencies' policies for
           periodically testing security controls:

                        1. Identifying the frequency of periodic testing.
                        2. Defining roles and responsibilities of personnel
                        performing the testing.
                        3. Selecting a minimum set of security controls
                        evaluated during periodic tests.
                        4. Identifying and testing common security controls.
                        5. Determining the depth and breadth of periodic
                        testing.
                        6. Including assessment results in remediation plans.

           The related federal and NIST references are shown in table 1.

^4GAO, Information Security: Weaknesses Persist at Federal Agencies
Despite Progress Made in Implementing Related Statutory Requirements,
[29]GAO-05-552 (Washington, D.C.: July 15, 2005).

^5OMB, FY 2006 Reporting Instructions for the Federal Information Security
Management Act and Agency Privacy Management, M-06-20 (Washington, D.C.:
July 17, 2006).

^6NIST Special Publication 800-100 (draft) provides a broad overview of
information security program elements that inform members of the
information security management team how to establish and implement an
information security program. The handbook summarizes and augments a
number of existing NIST standards and guidance documents and provides
additional information on related topics.

^7Security control assessment results can come from a number of sources,
such as certifications conducted as part of a routine information system
accreditation or reaccreditation process, ongoing continuous monitoring
activities, self-assessments, or routine testing and evaluation of the
information system as part of the ongoing system development life-cycle
process.

Elements Important for Performing Effective Testing and Evaluation

Table 1: Elements for Performing Testing and Evaluation and References to
Related Federal Standards and Guidelines

Source: GAO analysis of federal law and guidelines.

Agencies' Policies Do Not Fully Address Elements Important for Effective Testing
and Evaluation

Agencies' policies for periodically testing and evaluating security
controls have not been adequately designed and effectively implemented.
Specifically, none of the federal agencies' policies fully addressed six
important elements included in OMB and NIST guidelines and standards for
performing effective security testing and evaluations. In addition, there
were weaknesses in the security control assessments for the 30 systems
reviewed at the six case study agencies. As a result, agencies have
limited assurance that controls are implemented correctly, operating as
intended, and producing the desired outcome. In addition, agencies may not
be fully aware of security control weaknesses in their systems, thereby
leaving the agencies' operations and systems at risk.

Agencies' Policies Have Design Weaknesses

Agencies did not fully address six elements important for testing and
evaluating security controls in their policies. Specifically, the (1)
frequency of periodic testing was not always identified, (2) roles and
responsibilities of personnel performing tests often were not clearly
defined, (3) selection of a minimum set of security controls evaluated
during periodic tests was not always fully addressed, (4) instructions on
identification and testing of common security controls were not addressed,
(5) instructions on determining the depth and breadth of testing were not
included, and (6) descriptions of a process for documenting remedial
actions to address deficiencies were not always addressed. Table 2
indicates weaknesses in developing and promulgating formal, documented
policies to address the security elements needed for effective testing.

Table 2: Weaknesses in 24 Federal Agencies' Policies by Element

Source: GAO analysis of agency policies (as of February 2006).

Note: "X" indicates weaknesses.

^aThe agency reported it did not have agencywide or component-level policy
or guidance that addressed system security testing. However, the agency
reported that a departmental manual on FISMA was under development.

  Policies Did Not Identify Frequency of Periodic Testing

FISMA requires agencies to perform--for all major information systems in
their inventory--periodic testing and evaluation of the effectiveness of
information security policies, procedures, and practices, to be performed
with a frequency depending on risk, but no less than annually.

Of the 23 agencies' policies we reviewed, 7 agencies did not require that
their security controls (management, operational, and technical) be tested
and evaluated at least annually. For example, policies for 3 of the 7
agencies did not specify the frequency of periodic testing. The other 4
agencies identified the frequency of some testing activities--reviewing
the overall security program annually, testing standard user account
procedures annually, and certifying and accrediting systems at least every
3 years^8--but did not specify the frequency of periodic testing for other
management, operational, and technical security controls. Unless agencies
specify the frequency for conducting periodic testing and evaluations at
least annually per FISMA, they may not have assurance that controls are
being sufficiently evaluated and producing the desired outcome with
respect to meeting the security requirements of the agency.

^8Agencies are required to reaccredit their systems prior to a significant
change in processing, but at least every 3 years (more often where there
is a high risk and potential magnitude of harm).

  Policies Did Not Clearly Define Roles and Responsibilities for Periodic
  Testing

NIST 800-37 identifies the roles and associated responsibilities with
regard to testing and evaluating information security controls. These
roles include the chief information officer, authorizing official, senior
agency information security officer, information system owner, and
information system security officer. In addition, NIST Special Publication
800-26 specifies that agencies should have procedures in place that
identify who is conducting the security testing.

Roles and responsibilities of personnel performing testing were not
clearly defined in policies for 15 of the 23 agencies. Ten of the 15
agencies did not define roles and responsibilities for personnel
performing tests in their policies and the other 5 agencies defined them
only partially. For example, one agency defined roles and responsibilities
for the system owner but not for other key security personnel such as the
chief information security officer and information system security
officer. As a result, agency officials may not clearly understand their
expected responsibilities and consequently, may not be able to carry out
their duties correctly and effectively.

  Policies Lacked Adequate Instructions for Selecting Minimum Controls Evaluated
  during Periodic Testing

Baseline controls are the minimum security controls recommended for an
information system based on the system's security categorization.^9 NIST
Special Publication 800-53 provides guidance to agencies for selecting
these security controls, which serve as a starting point in determining
and designing methods for testing the security controls. NIST specifies
that agency security personnel must develop, document, and implement
policies for consistent identification, testing, and evaluation of
baseline controls.

Policies for selecting the minimum security controls evaluated during
periodic tests for 11 of the 23 agencies were not always adequate. To
illustrate, 7 of the 11 agencies reported having no specific policies or
procedures for selecting the minimum baseline security controls, and the
other 4 agencies' policies partially addressed the selection of these
controls. For example, one agency's policy referenced NIST guidance for
identifying controls, but it did not first specify the use of the NIST
standard when determining the system's impact level. In another example,
an agency referenced NIST 800-53 guidance for selecting baseline controls,
but it provided a checklist of controls to be tested that did not include
the baseline controls as identified in NIST guidance. Without adequate
instruction, security personnel may not consistently identify, test, and
evaluate the baseline controls used to secure their systems.

^9NIST, Standards of Security Categorization of Federal Information and
Information Systems, (Federal Information Processing Standard (FIPS)
Publication 199) establishes three levels of potential impact--high
(severe or catastrophic), moderate (serious), and low (limited)--on
organizational operations, assets, or individuals if a breach of security
should occur. The standards are used to determine the impact for each of
the FISMA-specified security objectives of confidentiality, integrity, and
availability.

  Policies Did Not Specify How to Identify and Test Common Controls

Identifying common security controls can increase efficiency in agencies'
periodic testing. NIST 800-37 guidance defines a common security control
as one that can be applied to one or more of an agency's information
systems.^10 This guidance suggests that many of the management and
operational controls--contingency planning, incident response, security
training and awareness, personnel security, and physical security--needed
to protect an information system may be excellent candidates for common
security control status.^11 By identifying common controls, agencies can
achieve efficiencies by testing common controls and using the results for
multiple systems. For example, NIST states that an organizationwide
approach to reusing and sharing test results can greatly enhance
efficiencies and significantly reduce security program costs.

Policies for 22 of the 23 agencies we reviewed did not specify how to
identify and test common security controls. For example, the security
policies for 15 of the 22 agencies did not address the identification and
testing of common security controls and policies and the other 7 agencies
only partially addressed them. Specifically, the 7 agencies identified and
tested some elements of common controls, but their policies did not
describe how to identify, test, or share testing results with others. For
example, one agency encouraged the use of common controls, but it did not
specify how common controls were to be identified, how to test them, or
how test results should be shared with others. In addition, another agency
made reference to common controls as part of a pilot program, but no other
discussion or reference was made regarding identifying and testing common
security controls. Without policies and procedures that address or provide
guidance for identifying and testing common controls, agencies may
needlessly test common controls multiple times, thereby reducing
efficiency and increasing costs for their periodic testing.

^10NIST, Guide for the Security Certification and Accreditation of Federal
Information Systems, SP 800-37 (Washington, D.C.: May 2004) p. 52.

^11SP 800-37, p. 19.

  Policies Lacked Adequate Instructions for Determining the Depth and Breadth of
  Testing

An important element of efficient and effective testing is the
consideration of the depth and breadth of agency testing. FISMA requires
testing of the management, operational, and technical controls for every
system at least annually. Moreover, Special Publication 800-37 states that
it is not feasible or cost effective to monitor all of the security
controls in an information system on a continuous basis and that the
information system owner should select an appropriate subset of those
controls for periodic assessment. In addition, OMB Memoranda M-05-15 and
M-06-20 have identified three criteria for agency officials to consider
when determining the depth and breadth of a review:

           o The potential risk and magnitude of harm to the system or data.
           o The relative comprehensiveness of the past year's review.
           o The adequacy and successful implementation of a remediation plan
           to address weaknesses in the information system.

           None of the 23 agencies' policies provided adequate instruction
           for determining the depth and breadth of periodic tests. Moreover,
           agencies did not incorporate the three OMB criteria into their
           policies as consideration for determining the depth and breadth of
           periodic testing. Security personnel reported that they do not
           fully understand how to apply the current guidance on determining
           the depth and breadth of controls testing and need further
           clarification. Until additional guidance clarifies how to
           determine the depth and breadth of testing, increased risk exists
           that agencies may not sufficiently test security controls in a
           cost-effective manner.
			  
			  Policies Did Not Always Describe a Process for Documenting
			  Weaknesses in Remediation Plans

           FISMA directs agencies to establish a process for remediating
           identified weaknesses in their information security policies and
           procedures. Key to an effective remediation plan is the accurate
           and complete inclusion of weaknesses identified during periodic
           testing. Remediation plans, also referred to as plans of action
           and milestones, should list all identified weaknesses and show
           estimated resource needs or other challenges to resolving them,
           key milestones and completion dates, and the status of corrective
           actions. NIST 800-37 states that remediation plans need to be
           updated to address weaknesses identified as a result of periodic
           testing.

           Policies for 10 of the 23 agencies did not fully describe a
           process for documenting identified control weaknesses. For
           example, 7 of the 10 agencies did not have policies that described
           a process for incorporating weaknesses identified during periodic
           security testing into remediation plans. The remaining 3 agencies
           had policies on remediation plans, but these were in draft form
           only and provided no further description of the process for
           addressing weaknesses. Without adequate guidance for ensuring that
           identified weaknesses are incorporated into remediation plans,
           there is increased risk that weaknesses identified through
           security controls testing are not being properly addressed. Thus,
           agencies may not realize the full benefits of such testing and
           have limited assurance that the controls for their systems are
           functioning effectively.
			  
			  Six Case Study Agencies Did Not Effectively Implement Policies

           None of the six case study agencies fully implemented their
           policies for periodic information security testing. During our
           review of 30 systems, we found implementation weaknesses at all
           six agencies. These weaknesses consisted of insufficient testing
           documentation, inadequately defined assessment methods, inadequate
           security testing, and lack of remedial actions included in testing
           plans, as shown in table 3.

Table 3: Weaknesses in Six Agencies' Information Security Testing Methods

Source: GAO analysis of agency FY 2005 test results (management,
operational, and technical controls) and test documentation.

Note: "X" indicates weaknesses in testing implementation.

^aThe agency did not provide documentation for FY 2005 testing results for
the system and, therefore, was given failing marks for all testing method
categories.

  Agencies Did Not Have Sufficient Documentation on Testing

Testing documentation and supporting material serves as the basis for
verifying that the security controls in the information system are
implemented correctly, operating as intended, and producing the desired
outcome with respect to meeting the security requirements for the
information system. Test documents may include risk assessments, testing
plans, the controls being tested, the results of the testing (security
weaknesses and vulnerabilities), including results from previous security
assessments, security reviews, or audits. Support materials may include
procedures, reports, logs, and records showing evidence of security
controls implementation.

Agencies did not sufficiently document periodic testing activities and
results for 28 of the 30 systems reviewed. These examples ranged from no
documentation to documentation that omitted key elements, such as risk
assessments, testing plans, and test results. For example, testing plans
did not provide enough detail to determine which tests were to be
conducted or the scope of test coverage. In addition, one security manager
reported that maintaining supporting documentation was not a common
practice and that no supporting documentation or test records had been
maintained until recently. Unless agencies develop and maintain sufficient
testing documentation, they will have limited evidence for making
judgments about the security of their systems.

  Agencies Did Not Always Define Assessment Methods

NIST 800-37 identifies a variety of assessment methods such as
interviewing, inspecting, studying, testing, demonstrating, and analyzing
that agencies can use when evaluating their security controls. NIST
guidelines describe these methods as interview, examine, and test.

           o The interview method of assessment is the process of conducting
           focused discussions with individuals or groups of individuals
           within an organization to facilitate assessor understanding,
           achieve clarification, or obtain evidence.
           o The examine method of assessment is the process of reviewing,
           inspecting, observing, studying, or analyzing one or more
           assessment objects (specifications, mechanisms, or activities).
           Similar to the interview method, the primary purpose of the
           examine method is to facilitate assessor understanding, achieve
           clarification, or obtain evidence.
           o The test method of assessment is the process of exercising one
           or more assessment objects (limited to mechanisms or activities)
           under specified conditions to compare actual with expected
           behavior. NIST states that the results of assessments using these
           methods are to support the determination of overall security
           controls effectiveness.

           Agencies did not fully define the assessment methods used to
           evaluate their system controls for 7 of the 30 systems reviewed.
           We found that the test plans, procedures, and testing results for
           4 of the 7 systems did not identify how agencies evaluated system
           controls or whether they used interviews, examinations, or tests
           to determine the effectiveness of those controls. For the 3
           remaining systems, agencies did not provide documentation to show
           what assessment methods were used. If agencies do not define
           assessment methods, they may not have information describing how
           that control was assessed. Without that information, agencies have
           limited assurance that those controls are being effectively tested
           or implemented.

			  Agencies Did Not Always Adequately Test Security Controls

           Once employed within an information system, security controls
           should be tested to determine the extent to which the controls are
           correctly implemented, operating as intended, and producing the
           desired outcome with respect to meeting the security requirements
           for the system. NIST states that assessments should be based on an
           examination of relevant documentation and a rigorous examination
           and testing of the controls. The results of security testing
           contribute to the knowledge base of organization officials with
           regard to the security status of the information system and the
           overall risk to the operations and assets of the organization
           incurred by the operation of the system.

           Agencies did not adequately test security controls for 24 of the
           30 systems reviewed. The testing documentation showed no evidence
           of how testers assessed the security controls, whether they had
           tested the control as planned, or if they had conducted the test
           in accordance with the plan. In one example, testers reviewed
           management control policies; however, the testing guidelines
           required that the control be tested to determine if it had been
           effectively implemented. Unless agencies adequately test controls
           and document the results, they may not be able to measure the
           security status of their information systems, thereby limiting
           their ability to know whether controls are protecting their
           operations and assets.
			  
			  Agencies Did Not Include Remedial Actions in Testing Plans

           FISMA requires that agencies document remedial actions that
           address deficiencies in the information security policies,
           procedures, and practices. NIST 800-37 states that the plan of
           action and milestones should describe the measures that have been
           implemented or planned to correct any deficiencies or weaknesses
           noted during the assessment of the security controls. NIST also
           states that remedial actions should be evaluated to determine if
           they effectively mitigate previously identified weaknesses or
           vulnerabilities in the information system.

           For 18 of the 30 systems, agencies did not consistently test or
           evaluate the effectiveness of remedial actions for weaknesses
           identified through security control assessments. For example,
           testing documentation for some systems did not address the
           remedial actions that agencies had identified from prior
           assessments in their test plans. Unless agencies document and
           include remedial actions for previously identified control
           weaknesses in testing plans, agencies will have limited assurance
           that weaknesses have been corrected.
			  
			  Conclusions

           Agencies have not adequately designed and effectively implemented
           policies for periodically testing information security controls.
           While almost all agencies had documented policies for security
           testing, the policies did not always adequately address elements
           important for effective testing. Ensuring that agencies' policies'
           are sufficient to address federal standards and guidelines helps
           to ensure their effective implementation in meeting FISMA
           requirements. While NIST has issued guidance on how agencies
           should apply the depth and breadth method for testing security
           controls, agencies have not been documenting or implementing this
           approach in their testing. Also, agency officials reported that
           they did not understand this method.

           Our review of 30 systems at six major federal agencies found
           weaknesses in testing practices and methods: documentation,
           testing methods, controls testing, and remedial actions in testing
           plans. Conducting effective periodic testing and evaluations of
           information security controls is a serious, pervasive, and
           crosscutting challenge to federal agencies, warranting increased
           attention from OMB. If these challenges are not addressed, federal
           agencies' information and operations may be at increased risk.
			  
			  Recommendations for Executive Action

           Because of the governmentwide weaknesses in the design and
           implementation of agencies' policies for periodically testing and
           evaluating security controls, we recommend that the Director of
           the Office of Management and Budget take the following two
           actions:

           o Instruct federal agencies to develop and implement policies on
           periodic testing and evaluation.
           o Revise instructions for future FISMA reporting by requesting
           Inspectors General to report on the quality of agencies' periodic
           testing processes.

           We also recommend that the Secretary of Commerce direct the
           Director, National Institute of Standards and Technology, to
           strengthen guidance on determining the depth and breadth of
           testing security controls.
			  
			  Agency Comments

           We received oral comments on a draft of this report from
           representatives of the Office of Management and Budget's Offices
           of Information and Regulatory Affairs and General Counsel. The
           representatives agreed to consider our recommendations as part of
           their oversight responsibilities for information security at
           federal agencies. The Deputy Secretary of the Department of
           Commerce provided written comments in response to our draft report
           (see app. II). He stated that the department agreed with our
           characterization of the National Institute of Standards and
           Technology's FISMA responsibilities and activities and also said
           that NIST is currently reviewing its guidance, including that for
           the depth and breadth of testing security controls.

           As agreed with your office, unless you publicly announce the
           contents of
           this report earlier, we plan no further distribution until 30 days
           from
           the date of this letter. At that time, we will send copies of the
           report to
           other interested congressional committees; the Director, Office of
           Management and Budget; and the Deputy Secretary of the Department
           of Commerce. We will make copies available to others on request.
           In addition, the report will be available at no charge on the GAO
           Web site at http://www.gao.gov.

           If you have any questions about this report, please contact me at
           (202) 512-6244 or wilshuseng@gao.gov . Contact points for our
           Offices of Congressional Relations and Public Affairs may be found
           on the last page of this report. Key contributors to this report
           are acknowledged in appendix V.

           Sincerely yours,

           Gregory C. Wilshusen
			  Director, Information Security Issues
			  
			  Appendix I: Objective, Scope, and Methodology

           The objective of our review was to determine the extent to which
           federal agencies have adequately designed and effectively
           implemented policies for periodically testing and evaluating
           security controls. The scope of our review included (1) the 24
           federal agencies,^1 focusing on reviewing their policies and
           procedures and responses to our survey and (2) a selection of 30
           systems at 6 of these agencies, focusing on in-depth evaluations
           of their periodic controls testing and evaluation practices and
           methods.

           To determine the adequacy and effectiveness of federal agencies'
           policies and procedures for testing and evaluating security
           controls for their information systems, we conducted a survey of
           the 24 major agencies, which included 21 questions for the
           agencies and 4 questions for the agencies' Inspectors General. We
           also reviewed the agencies' policies that were submitted in
           response to the surveys and compared them against six policy
           elements from the Office of Management and Budget (OMB) and the
           National Institute of Standards and Technology (NIST) standards
           and guidelines that we considered to be important for performing
           effective testing. The survey instruments were pretested with two
           federal information technology organizations--the Department of
           Defense and GAO's Office of the Chief Information Officer.

           To assess the implementation of Federal Information Security
           Management Act of 2002 (FISMA) requirements, we reviewed 30
           systems at the six case study agencies to determine whether
           policies for testing and evaluating security controls were
           effectively implemented. We selected for review the six agencies
           that reported the largest number of systems in their inventories
           of major systems, excluding agencies that had been recently
           reviewed by GAO.

           We relied on FISMA standards and guidelines from OMB and NIST as
           criteria for evaluating agency testing and evaluation methods,
           policies, and procedures. These criteria were used to evaluate
           agency system documentation on the results of security controls
           testing, such as system security plans, testing results, testing
           plans and schedules, remedial action plans, memoranda, and other
           artifacts used for information security testing. We collected
           fiscal year 2005 self assessment and testing artifacts and fiscal
           years 2004 and 2005 remediation plans in order to standardize the
           data for analysis. To augment our work, we considered the
           responses to our survey by the agencies and the Inspectors
           General.

           We selected and examined 5 systems comprised of low, medium, and
           high impact general support systems and major applications for a
           total of 30 systems across the six agencies. Because we were
           evaluating the extent to which agencies periodically test and
           evaluate the effectiveness of security controls, we avoided
           selecting systems that had recently undergone certification and
           accreditation where more rigorous (independent) testing is
           conducted. In cases where an agency had recently certified and
           accredited the majority of its systems, we selected those having
           the oldest accreditation date within the selected time period. We
           evaluated government-owned and operated systems, and
           government-owned, contractor-operated systems; all were
           operational and none were under development. We did not select
           systems that were recently or currently under review by an
           Inspector General or those classified as national security or
           financial.

           We performed our work in the Washington, D.C., metropolitan area
           and in three agency field offices in Pennsylvania, Texas, and
           Georgia, from November 2005 to July 2006, in accordance with
           generally accepted government auditing standards.
			  
			  ^1The 24 major federal agencies are the Departments of Agriculture,
Commerce, Defense, Education, Energy, Health and Human Services, Homeland
Security, Housing and Urban Development, the Interior, Justice, Labor,
State, Transportation, the Treasury, and Veterans Affairs; the
Environmental Protection Agency; General Services Administration; National
Aeronautics and Space Administration; National Science Foundation; Nuclear
Regulatory Commission; Office of Personnel Management; Small Business
Administration; Social Security Administration; and U.S. Agency for
International Development.

			  
			  Appendix II: Comments from the Department of Commerce	
			  
			  Appendix III: GAO Contact and Staff Acknowledgments
			  
			  GAO Contact

           Gregory C. Wilshusen, (202) 512-6244 Director, Information
           Security Issues
			  
			  Staff Acknowledgments

           In addition to the individual named above, Suzanne Lightman
           (Assistant Director), Ayannah Buford, Larry Crosland, Neil
           Doherty, Nicole Garofalo, Nancy Glover, Joel Grossman, David Hong,
           John Ortiz, Jerome Sandau, Donald Sebers, Jenniffer Wilson, and
           Charles Youman made key contributions to this report.
			  
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(310562)

www.gao.gov/cgi-bin/getrpt?GAO-07-65 .

To view the full product, including the scope

and methodology, click on the link above.

For more information, contact Gregory C. Wilshusen at (202) 512-6244 or
wilshuseng@gao.gov.

Highlights of [38]GAO-07-65 , a report to the Chairman, Committee on
Government Reform, House of Representatives

October 2006

INFORMATION SECURITY

Agencies Need to Develop and Implement Adequate Policies for Periodic
Testing

Agencies rely extensively on computerized information systems and
electronic data to carry out their missions. To ensure the security of the
information and information systems that support critical operations and
infrastructure, federal law and policy require agencies to periodically
test and evaluate the effectiveness of their information security controls
at least annually.

GAO was asked to evaluate the extent to which agencies have adequately
designed and effectively implemented policies for testing and evaluating
their information security controls.

GAO surveyed 24 major federal agencies and analyzed their policies to
determine whether the policies address important elements for periodic
testing. GAO also examined testing documentation at 6 agencies to assess
the quality and effectiveness of testing on 30 systems.

[39]What GAO Recommends

This report contains recommendations to strengthen governmentwide guidance
and reporting on agencies' periodic testing of information security
controls. OMB said it would consider GAO's recommendations. The Department
of Commerce stated that the National Institute of Standards and Technology
is reviewing its guidance to assist agencies in strengthening their
programs.

Federal agencies have not adequately designed and effectively implemented
policies for periodically testing and evaluating information security
controls. Agencies' policies often did not include important elements for
performing effective testing. For example, none of the agencies' policies
addressed how to determine the depth and breadth of testing according to
risk. Also, agencies did not always address other important elements,
including the identification and testing of security controls common to
multiple systems, the definition of roles and responsibilities of
personnel performing tests, and the frequency of periodic testing.

The six case study agencies did not effectively implement policies for
periodically testing and evaluating information security controls for the
30 systems reviewed. The methods and practices for testing and evaluating
controls at the six agencies were not adequate to ensure that assessments
were consistent, of similar quality, and repeatable. For example, these
agencies did not always sufficiently document their test methods and
results, did not define the assessment methods to be used when evaluating
security controls, did not test security controls as prescribed, and did
not include previously reported remedial actions or weaknesses in their
test plans to ensure they had been addressed (see table). As a result,
agencies may not have reasonable assurance that controls are implemented
correctly, operating as intended, and producing the desired outcome with
respect to meeting the security requirements of the agency. In addition,
agencies may not be fully aware of the security control weaknesses in
their systems, thereby leaving the agencies' information and systems
vulnerable to attack or compromise.

Systems with Testing Weaknesses

Source: GAO analysis of agency FY 2005 test results (management,
operational, and technical controls) and test documentation.

References

Visible links

  29. http://www.gao.gov/cgi-bin/getrpt?GAO-05-552
  38. http://www.gao.gov/cgi-bin/getrpt?GAO-07-65
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