OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE WASHINGTON, DC 20511

April 25, 2011 The Honorable Darrell Issa j Chairman Committee on Oversight and Government Reform House of Representatives Washington, DC 20515 The Honorable Elijah E. Cummings Ranking Member Committee on Oversight and Government Reform House of Representatives Washington, DC 20515

Dear Chairman Issa and Ranking Member Cummings: Thank you for your March 8, 20 11 letter regarding Federal Agencies' electronic financial management systems. The Office of the Director of National Intelligence (ODNI) uses two principal electronic financial management systems for budgeting and accounting purposes. These systems, owned aud controlled by our government service provider, address financial data for all ODNI components. For security reasons, neither of these systems directly interacts with Treasury, OMB or other Government-wide financial systems. However, execution data derived from these systems is formatted and submitted to Treasury for reporting purposes. The answers to each of the questions in your letter are keyed to your questions: 1. The ODNI uses electronic financial management systems called Planning and Resources Information System (PARIS) and Budget execution, Accounting and Acquisition Strategic Information System (BASIS). PARIS is used to develop annual budget submission information. BASIS is used for recording and reporting of obligations, disbursements, and expenses in the operating year of budget execution. 2. PARIS and BASIS interact on a daily basis to ensure consistency, agreement and accuracy of program development and execution. Together they ensure that balance in authority and execution is maintained. 3. As required by Treasury Regulation, standardized reporting of obligations aud outlays are accomplished using the data from BASIS, which is manually submitted into the automated treasury reporting systems for the following: a. FACTS I and FACTS II - quarterly

b. c. d. e.

Statement of Transactions (SF 224) - monthly Treasury Report on Receivable - monthly Year-end Closing Statement - annually Report ou Obligations (SF 225) - annually

4. For security/classificatiou reasons, no data from PARIS or BASIS is submitted to OMB's "MAX" Information System. 5. BASIS was recently upgraded to incorporate additional acquisition data functionality. 6. For securitylclassificatlon reasons, data from these systems is not provided to the pUblic. 7 - 12. The ODNI does not have the legislative authority to receive or manage grants nor to direct loans and/or loan guarantees. 13. ODNI relies on our service provider and other government agency (OGA) systems to manage, execute and make payments on ODNI contracts. Within this infrastructure, ODNI relies on BASIS to create, process, award and manage a contract. If funds are provided to an OGA, then the OGA's systems are used, except for the initial funding and contract management phases, which are executed via BASIS. 14. BASIS is an integrated system that provides both financial and contractual functions within a single business environment. 15. For security/classification reasons, data from BASIS does not interact directly with government-wide contract management or reporting systems. 16. Beginning with Fiscal Year 2011 (October 1,2010), BASIS was upgraded to include the formal contracting function, eliminating a less robust procurement system. As a result, reporting and processing improvements provide more visibility into contracting activity. 17. For security/classification reasons, information from this system is not provided to the public. 18. For security/classification reasons, data of this type is provided, as requested, directly to OMB personnel who have the appropriate security clearances/access. 19 - 22. For security/classification reasons, the ODNI does not interact directly with USASPending.gov. 23. The Senior Accountability Official for the ODNI is Robert W. Adams, Comptroller, ODNIIMission Support Division.
In close coordination with the congressional intelligence oversight committees, the Intelligence Community has an extensive financial accountability effort underway with periodic

classified reporting requirements to the intelligence oversight committees. If you have any questions, please contact the undersigned on (703) 275-2473.

Sincerely,

Kathleen Turner Director of Legislative Affairs

OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE WASHINGTON, DC 20511

April 25, 2011

The Honorable Darrell Issa Chairman Committee on Oversight and Government Reform House of Representatives Washington, DC 20515 The Honorable Elijah E. Cummings Ranking Member Committee on Oversight and Government Reform House of Representatives Washington, DC 20515

Dear Chairman Issa and Ranking Member Cummings: Thank you for your March 8, 2011 letter regarding Federal Agencies' electronic financial management systems. The Office of the Director of National Intelligence (ODNI) uses two principal electronic financial management systems for budgeting and accounting purposes. These systems, owned and controlled by our government service provider, address financial data for all ODNI components. For security reasons, neither of these systems directly interacts with Treasury, OMB or other Government-wide financial systems. However, execution data derived from these systems is formatted and submitted to Treasury for reporting purposes. The answers to each of the questions in your letter are keyed to your questions: 1. The ODNI uses electronic financial management systems called Planning and Resources Information System (PARIS) and Budget execution, Accounting and Acquisition Strategic Information System (BASIS). PARIS is used to develop annual budget submission information. BASIS is used for recording and reporting of obligations, disbursements, and expenses in the operating year of budget execution. 2. PARIS and BASIS interact on a daily basis to ensure consistency, agreement and accuracy of program development and execution. Together they ensure that balance in authority and execution is maintained. 3. As required by Treasury Regulation, standardized reporting of obligations and outlays are accomplished using the data from BASIS, which is manually submitted into the automated treasury reporting systems for the following: a. FACTS I and FACTS II - quarterly

b. c. d. e.

Statement of Transactions (SF 224) - monthly Treasury Report on Receivable - monthly Year-end Closing Statement - annually Report on Obligations (SF 225) - annually

4. For security/classification reasons, no data from PARIS or BASIS is submitted to OMB' s "MAX" Information System. 5. BASIS was recently upgraded to incorporate additional acquisition data functionality. 6. For security/classification reasons, data from these systems is not provided to the public. 7 - 12. The ODNI does not have the legislative authority to receive or manage grants nor to direct loans and/or loan guarantees. 13. ODNI relies on our service provider and other government agency (OGA) systems to manage, execute and make payments on ODNI contracts. Within this infrastructure, ODNI relies on BASIS to create, process, award and manage a contract. If funds are provided to an OGA, then the OGA's systems are used, except for the initial funding and contract management phases, which are executed via BASIS. 14. BASIS is an integrated system that provides both financial and contractual functions within a single business environment. 15. For security/classification reasons, data from BASIS does not interact directly with government-wide contract management or reporting systems. 16. Beginning with Fiscal Year 2011 (October 1,2010), BASIS was upgraded to include the formal contracting function, eliminating a less robust procurement system. As a result, reporting and processing improvements provide more visibility into contracting activity. 17. For security/classification reasons, information from this system is not provided to the public. 18. For security/classification reasons, data of this type is provided, as requested, directly to OMB personnel who have the appropriate security clearances/access. 19 - 22. For security/classification reasons, the ODNI does not interact directly with USASPending.gov. 23. The Senior Accountability Official for the ODNI is Robert W. Adams, Comptroller, ODNIIMission Support Division. In close coordination with the congressional intelligence oversight colI1llrittees, the Intelligence Community has an extensive financial accountability effort underway with periodic

classified reporting requirements to the intelligence oversight committees. If you have any questions, please contact the undersigned on (703) 275-2473 ..

Sincerely,

K~~
Kathleen Turner Director of Legislative Affairs