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Brig. Gen. John J. Kelly, Jr., USAF (Ret.) Deputy Under Secretary for Oceans and Atmosphere

December 1, 2005

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OverviewOverview

Organizational Assessment

FY06 Secretary Priorities

Funding Trends

FY05 Audit

Acquisitions and Grants

Recapitalization

Personnel Matters

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Organizational Assessment

President’s Management Agenda

Organizational Assessment

President’s Management AgendaHUMAN CAPITAL Status Progress

Needs to demonstrate results in implementing a comprehensive Human Capital Plan.Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06

COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule.

FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.

E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.

BUDGET & PERFORMANCE Status Progress

R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

HUMAN CAPITAL Status Progress Needs to demonstrate results in implementing a comprehensive Human Capital Plan.Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06

COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule.

FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.

E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.

BUDGET & PERFORMANCE Status Progress

R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

HUMAN CAPITAL Status Progress Needs to demonstrate results in implementing a comprehensive Human Capital Plan.Maintaining current rating is contingent upon beginning implementation of multi-tier performance appraisal system during the 1st Quarter of FY06

COMPETITIVE SOURCING Status Progress NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA pushed back the schedule.

FINANCIAL PERFORMANCE Status Progress Although NOAA has made significant strides in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.

E-GOVERNMENT Status Progress NOAA achieved substantial progress in IT Security Certification and Accreditations (C&A). Yellow pending DOC OIG/CIO verification of C&A packages. NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.

BUDGET & PERFORMANCE Status Progress

R&D INVESTMENT Status Progress The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

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Organizational Assessment

Secretarial FY 2005 Priorities

Organizational Assessment

Secretarial FY 2005 Priorities

Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management

Provide Global Leadership in Earth Observations

Obtaining the Best Science through the Climate Change Science Program and NOAA Climate Program

Ensuring the Public Safety and Economic Security through Improved Weather and Water Information

Advancing the President’s Management Agenda

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Organizational Assessment

Organizational Assessment

4%

88%

8%

Unavailable

Unmet

Met

Slightly Below

Program YearScor

e Rating

Ecosystem Research 2005

67 Adequate

Weather & related services

2005

76 Moderately Effective

NOAA Protected Areas 2004

68 Adequate

Climate Research 2004

78 Moderately Effective

Coastal Zone Management Act

2003

46 Results Not Demonstrated

Navigation Service 2003

83 Moderately Effective

Small Business Innovative Research (NOAA/NIST)

2003

27 Results Not Demonstrated

National Weather Service

2002

89 Effective

Pacific Coastal Salmon Recovery Fund

2002

45 Results Not Demonstrated

National Marine Fisheries Service

2002

55 Adequate

Performance Measures PART Summary

How the government fared under the Program Assessment Rating Tool in FY2005

15%

26%

26%

4%

29%Effective - 15%

Moderately Effective - 26%

Adequate - 26%

Ineffective - 4%

Results Not Demonstrated - 29%

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Organizational Assessment

Funding Summary

Organizational Assessment

Funding Summary($ thousands)

Total Funding 4,082,476

Estimated Spent 3,933,127

+/- Total 149,349

% of Total Spent 96.3

NOAA estimates 96.3% of total funding was spent in FY 2005.

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Secretarial FY2006 Priorities

Secretarial FY2006 Priorities

Execute NOAA Elements of the Integrated Earth Observations System

Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management

Complete the Planned 2006 US Climate Change Science Program Actions

Ensure Public Safety and Economic Security through Improved Weather and Water Information

Advance Navigation and Transportation

Continue Implementation of President’s Management Agenda

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NOAA Funding Trends

(Constant Dollars in Billions)

NOAA Funding Trends

(Constant Dollars in Billions)

1.8 2 2.1 2.2 2.3 2.4 2.3

1.1110.80.80.80.6

0.10.10.10.10.20.2

0

3.53.53.43.13.13

2.4

0

1

2

3

4

5

6

7

8

Total

Other

PAC

ORF

Total 2.4 3 3.1 3.1 3.4 3.5 3.5

Other 0 0.2 0.2 0.1 0.1 0.1 0.1

PAC 0.6 0.8 0.8 0.8 1 1 1.1

ORF 1.8 2 2.1 2.2 2.3 2.4 2.3

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Data Source: DOC Summary of enacted BA

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Fiscal Year 2005 Audit

Findings and Recommendations (NFRs)

Fiscal Year 2005 Audit

Findings and Recommendations (NFRs)

Major Conclusions:Unqualified audit opinion last seven years.Improvement in the number of NFRs.Personal property, Construction Work In Progress, reimbursable agreements and grants recurring issues.

51 51

36

23

18

0

10

20

30

40

50

60

2001 2002 2003 2004 2005

NFR

s

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Fiscal Year 2005 Audit

Information Technology Security

Fiscal Year 2005 Audit

Information Technology Security

OIG Evaluation: Good: Security Plans and Risk AssessmentsNot so Good: Testing

FY06 ActivitiesMore Rigorous Testing Authorizing Official review all IT Security Plans

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FY2005 Acquisitions and Grants

Acquisitions Completed

FY2005 Acquisitions and Grants

Acquisitions Completed

9901,149 1,052 1,059

1,5561,745

1,2101,455 1,550

2,276

3,246

1,539

0

500

1,000

1,500

2,000

2,500

3,000

3,500

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

Num

ber o

f Acq

uisi

tions

Total = 18,827Completed Acquisitions in FY05

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FY2005 Acquisitions and GrantsGrants Workload

FY2005 Acquisitions and GrantsGrants Workload

0

100

200

300

400

500

600

700

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

FY05 Received Sent to GMD Awarded FY06 Received

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Personnel Matters

Performance Appraisals

Personnel Matters

Performance AppraisalsSES Ratings 2005 * 2004 2003 2002

Outstanding 49% 51% 85% 86%

Commendable 43% 35% 13% 12%

Fully Successful 8% 14% 2% 2%

ST/SL Ratings 2005 * 2004 2003 2002

Outstanding 70% 72% 65% 69%

Commendable 15% 7% 21% 15%

Eligible (DEMO) 15% 14% 14% 15%

Not Eligible (DEMO)

0% 0% 0% 0%

Fully Successful 0% 7% 0% 0%

* Proposed

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Personnel MattersPersonnel Matters

Executive Pay RulesAgency Appraisal System

Not Certified Certified

Cap on base pay $149,200 $162,100

Cap on pay, bonuses & awards

$180,100 $208,100

Cap ImpactNumber within NOAA at or above Executive Level III

2005 2006 *

# of employees

40 60

* Proposed

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Personnel MattersFive Level Performance

Management System

Personnel MattersFive Level Performance

Management System

Component of the PMA— Human Capital Component

Many DOC Organizations using the system. Exceptions are NOAA, Census, EDA and Office of IG

DOC-wide Oct. 1, 2006

Timetable for Implementation:

11/05 – 03/06: union briefings, negotiations04/06 – 08/06: training09/30/06: closeout of two-level system

ChallengesEmployee AcceptanceImpact and Implementation NegotiationsTrainingDevelopment of MeasuresConsistency