Exhibit 300 (BY2009) for Office of the Secretary, Assistant Secretary of Administration and Managment, Core Accounting System (CORE)

1. Date of Submission:

2008-02-04

2. Agency:

009

3. Bureau:

90

4. Name of this Capital Asset:

OS ASAM Core Accounting System (CORE)

5. Unique Project Identifier:

009-90-01-01-01-1010-00

6. What kind of investment will this be in FY2009?

Operations and Maintenance

7. What was the first budget year this investment was submitted to OMB?

FY2001 or earlier

8. Provide a brief summary and justification for this investment, including a brief description of how this closes in part or in whole an identified agency performance gap.

The CORE is the legacy mainframe application that performs the Joint Financial Management Improvement Project (JFMIP) defined `core' financial management functions for eight Operating Divisions (OPDIVs) within the Department. The CORE meets applicable requirements for financial management systems, including the requirements of the Federal Financial Management Improvement Act (FFMIA), JFMIP, OMB Circular A-127, etc. All A-123 standards are implemented in Core, providing support to HHS meeting OMB "green" Standards for Success. The CORE, as the official accounting system for the PSC and its customers, is critical in meeting the mission and regulatory requirements of the agencies it supports (ACF, AoA, OS, SAMHSA, HRSA, AHRQ, IHS). The Core Accounting System provides critical financial support and reporting services to the Department thereby enabling HHS management to make fact-based program decisions and to meet their PMA goals. The Core Accounting System (CORE) is scheduled to be the replaced by the Department of Health and Human Services (HHS) Unified Financial Management System (UFMS) in Fiscal Year 2007. (See the HHS UFMS Capital Asset Plan and Business Case). This investment is a "close out" as of October 2007 for all transactional users and will have only archive/research capabilities afterward. The CORE is fully operational and is in the steady-state/maintenance phase of its system cycle. The budget for CORE includes amounts for its continuing operation and maintenance. Core could not close recent gaps in meeting Financial Systems Integration Office (FSIO) financial systems requirements and the UFMS will provide the PSC and its customers with a FSIO-compliant system.

9. Did the Agency's Executive/Investment Committee approve this request?

yes

9.a. If "yes," what was the date of this approval?

2006-06-23

10. Did the Project Manager review this Exhibit?

yes

11.a. What is the current FAC-P/PM certification level of the project/program manager?

Mid/Journeyman-level

12. Has the agency developed and/or promoted cost effective, energy-efficient and environmentally sustainable techniques or practices for this project.

no

12.a. Will this investment include electronic assets (including computers)?

yes

12.b. Is this investment for new construction or major retrofit of a Federal building or facility? (answer applicable to non-IT assets only)

no

13. Does this investment directly support one of the PMA initiatives?

yes

If yes, select the initiatives that apply:

Initiative Name
Budget Performance Integration
Eliminating Improper Payments
Financial Performance

13.a. Briefly and specifically describe for each selected how this asset directly supports the identified initiative(s)? (e.g. If E-Gov is selected, is it an approved shared service provider or the managing partner?)

Core provides agencies with budgetary reports to compare budgets to actual spending. All financial statements for 7 of the HHS agencies are produced from Core. All A-123 standards are implemented in Core, providing support to HHS meeting OMB "green" Standards for Success. Core captures financial information from E-Gov systems, enabling PSC to provide E-Gov systems support to HHS agencies. Core allows agencies to manage payment processes to decrease the occurrence of improper payments.

14. Does this investment support a program assessed using the Program Assessment Rating Tool (PART)?

no

15. Is this investment for information technology?

yes

16. What is the level of the IT Project (per CIO Council's PM Guidance)?

Level 2

17. What project management qualifications does the Project Manager have? (per CIO Council's PM Guidance)

(1) Project manager has been validated as qualified for this investment

18. Is this investment identified as high risk on the Q4 - FY 2007 agency high risk report (per OMB memorandum M-05-23)?

no

19. Is this a financial management system?

yes

19.a. If yes, does this investment address a FFMIA compliance area?

yes

19.a.1. If yes, which compliance area:

Federal financial systems requirements, applicable Federal accounting standards, US Standard General Ledger

19.b. If yes, please identify the system name(s) and system acronym(s) as reported in the most recent financial systems inventory update required by Circular A11 section 52.

Core Accounting System

20. What is the percentage breakout for the total FY2009 funding request for the following? (This should total 100%)

Area	Percentage
Hardware	0
Software	0
Services	0
Other	100

21. If this project produces information dissemination products for the public, are these products published to the Internet in conformance with OMB Memorandum 05-04 and included in your agency inventory, schedules and priorities?

n/a

22. Contact information of individual responsible for privacy related questions.

Name	Suzi Connor
Phone Number	202-260-5528
Title	OS Senior Privacy Official
Email	Suzi.Connor@hhs.gov

23. Are the records produced by this investment appropriately scheduled with the National Archives and Records Administration's approval?

yes

24. Does this investment directly support one of the GAO High Risk Areas?

no

1. Provide the total estimated life-cycle cost for this investment by completing the following table. All amounts represent budget authority in millions, and are rounded to three decimal places. Federal personnel costs should be included only in the row designated Government FTE Cost, and should be excluded from the amounts shown for Planning, Full Acquisition, and Operation/Maintenance. The total estimated annual cost of the investment is the sum of costs for Planning, Full Acquisition, and Operation/Maintenance. For Federal buildings and facilities, life-cycle costs should include long term energy, environmental, decommissioning, and/or restoration costs. The costs associated with the entire life-cycle of the investment should be included in this report.

All amounts represent Budget Authority

Note: For the cross-agency investments, this table should include all funding (both managing partner and partner agencies).

Government FTE Costs should not be included as part of the TOTAL represented.

Cost Type	Py-1 & Earlier -2006	PY 2007	CY 2008	BY 2009
Planning Budgetary Resources	0.000	0.000	0.000	0.000
Acquisition Budgetary Resources	0.000	0.000	0.000	0.000
Maintenance Budgetary Resources	17.602	4.344	0.500	0.000
Government FTE Cost	0.842	0.376	0.000	0.000
# of FTEs	6	2	0	0

2. Will this project require the agency to hire additional FTE's?

no

3. If the summary of spending has changed from the FY2008 President's budget request, briefly explain those changes.

CORE is being retired -- replaced by UFMS

Agencies must use the following table to report performance goals and measures for the major investment and use the Federal Enterprise Architecture (FEA) Performance Reference Model (PRM). Map all Measurement Indicators to the corresponding Measurement Area and Measurement Grouping identified in the PRM. There should be at least one Measurement Indicator for each of the four different Measurement Areas (for each fiscal year). The PRM is available at www.egov.gov. The table can be extended to include performance measures for years beyond FY 2009.

Row	Fiscal Year	Strategic Goal Supported	Measurement Area	Measurement Grouping	Measurement Indicator	Baseline	Planned Improvement to the Baseline	Actual Results
1	2006	Effective Management of Human Capital/Information Technology/Resources	Mission and Business Results	Accounting	% unqualified "clean" audit opinions	100%	none	100%
2	2006	Effective Management of Human Capital/Information Technology/Resources	Customer Results	Response Time	% financial reports submitted within 5 days after the end of a covered period	95%	+5%	100%
3	2006	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Cycle Time	% Core financial functions converted to UFMS	na	30%	30%
4	2006	Effective Management of Human Capital/Information Technology/Resources	Technology	Availability	% functional systems interfaces integrated through use of UFMS	na	30%	30%
5	2007	Effective Management of Human Capital/Information Technology/Resources	Mission and Business Results	Accounting	% unqualified "clean" audit opinions	100%	none
6	2007	Effective Management of Human Capital/Information Technology/Resources	Customer Results	Response Time	% financial reports submitted within 5 days after the end of a covered period	95%	+5%
7	2007	Effective Management of Human Capital/Information Technology/Resources	Processes and Activities	Cycle Time	% Core financial functions converted to UFMS	30%	70% (100% total)
8	2007	Effective Management of Human Capital/Information Technology/Resources	Technology	Availability	% functional systems interfaces integrated through use of UFMS	30%	70% (100% total)

1. Is this investment included in your agency's target enterprise architecture?

yes

2. Is this investment included in the agency's EA Transition Strategy?

yes

2.a. If yes, provide the investment name as identified in the Transition Strategy provided in the agency's most recent annual EA Assessment.

Its replacement system, UFMS, is included in the Transition Strategy.

3. Is this investment identified in a completed (contains a target architecture) and approved segment architecture?

no

4. Identify the service components funded by this major IT investment (e.g., knowledge management, content management, customer relationship management, etc.). Provide this information in the format of the following table. For detailed guidance regarding components, please refer to http://www.whitehouse.gov/omb/egov/.

Component: Use existing SRM Components or identify as NEW. A NEW component is one not already identified as a service component in the FEA SRM.

Reused Name and UPI: A reused component is one being funded by another investment, but being used by this investment. Rather than answer yes or no, identify the reused service component funded by the other investment and identify the other investment using the Unique Project Identifier (UPI) code from the OMB Ex 300 or Ex 53 submission.

Internal or External Reuse?: Internal reuse is within an agency. For example, one agency within a department is reusing a service component provided by another agency within the same department. External reuse is one agency within a department reusing a service component provided by another agency in another department. A good example of this is an E-Gov initiative service being reused by multiple organizations across the federal government.

Funding Percentage: Please provide the percentage of the BY requested funding amount used for each service component listed in the table. If external, provide the funding level transferred to another agency to pay for the service.

Row	Agency Component Name	Agency Component Description	Service Type	Component	Reused Component Name	Reused UPI	Internal or External Reuse?	Funding %
1	Expense Management	Defines the set of capabilities that support the management and reimbursement of costs paid by employees or an organization.	Financial Management	Expense Management			No Reuse	33
2	Billing and Accounting	Defines the set of capabilities that support the charging, collection and reporting of an organization's accounts.	Financial Management	Billing and Accounting			No Reuse	33
3	Revenue Management	Defines the set of capabilities that support the allocation and re-investment of earned net credit or capital within an organization.	Financial Management	Revenue Management			No Reuse	34

5. To demonstrate how this major IT investment aligns with the FEA Technical Reference Model (TRM), please list the Service Areas, Categories, Standards, and Service Specifications supporting this IT investment.

FEA SRM Component: Service Components identified in the previous question should be entered in this column. Please enter multiple rows for FEA SRM Components supported by multiple TRM Service Specifications.

Service Specification: In the Service Specification field, Agencies should provide information on the specified technical standard or vendor product mapped to the FEA TRM Service Standard, including model or version numbers, as appropriate.

Row	SRM Component	>Service Area	Service Category	Service Standard	Service Specification (i.e., vendor and product name)
1	Expense Management	Component Framework	Business Logic	Platform Dependent	COBOL
2	Expense Management	Component Framework	Data Interchange	Data Exchange	COBOL
3	Expense Management	Component Framework	Data Management	Database Connectivity	COBOL
4	Expense Management	Component Framework	Data Management	Reporting and Analysis	COBOL
5	Expense Management	Service Access and Delivery	Service Requirements	Authentication / Single Sign-on	COBOL
6	Expense Management	Service Interface and Integration	Interface	Service Description / Interface	COBOL
7	Expense Management	Service Interface and Integration	Interoperability	Data Format / Classification	COBOL
8	Expense Management	Service Interface and Integration	Interoperability	Data Transformation	COBOL
9	Expense Management	Service Platform and Infrastructure	Database / Storage	Database	COBOL
10	Billing and Accounting	Component Framework	Business Logic	Platform Dependent	COBOL
11	Billing and Accounting	Component Framework	Data Interchange	Data Exchange	COBOL
12	Billing and Accounting	Component Framework	Data Management	Database Connectivity	COBOL
13	Billing and Accounting	Component Framework	Data Management	Reporting and Analysis	COBOL
14	Billing and Accounting	Service Access and Delivery	Service Requirements	Authentication / Single Sign-on	COBOL
15	Billing and Accounting	Service Interface and Integration	Interface	Service Description / Interface	COBOL
16	Billing and Accounting	Service Interface and Integration	Interoperability	Data Format / Classification	COBOL
17	Billing and Accounting	Service Interface and Integration	Interoperability	Data Transformation	COBOL
18	Billing and Accounting	Service Platform and Infrastructure	Database / Storage	Database	COBOL
19	Revenue Management	Component Framework	Business Logic	Platform Dependent	COBOL
20	Revenue Management	Component Framework	Data Interchange	Data Exchange	COBOL
21	Revenue Management	Component Framework	Data Management	Database Connectivity	COBOL
22	Revenue Management	Component Framework	Data Management	Reporting and Analysis	COBOL
23	Revenue Management	Service Access and Delivery	Service Requirements	Authentication / Single Sign-on	COBOL
24	Revenue Management	Service Interface and Integration	Interface	Service Description / Interface	COBOL
25	Revenue Management	Service Interface and Integration	Interoperability	Data Format / Classification	COBOL
26	Revenue Management	Service Interface and Integration	Interoperability	Data Transformation	COBOL
27	Revenue Management	Service Platform and Infrastructure	Database / Storage	Database	COBOL

6. Will the application leverage existing components and/or applications across the Government (i.e., FirstGov, Pay.Gov, etc)?

yes

6.a. If yes, please describe.

This investment leverages: Financial Management Line of Business. Was used by the entire HHS, currently only IHS continues to use it.

1. Does the investment have a Risk Management Plan?

yes

1.a. If yes, what is the date of the plan?

2006-06-30

1.b. Has the Risk Management Plan been significantly changed since last year's submission to OMB?

no

1. Was operational analysis conducted?

yes

1.a. If yes, provide the date the analysis was completed.

2007-07-31

What were the results of your operational analysis?

Core was evaluated against NIST 800-53 requirements specifically in areas of Risk Assessment, System Security Plan, Certification and Accreditation, Identification and Authentication, Audit and Accountability, and Change Control. Two minor findings are being corrected. Performance of the system and operational functionality was adequate to meet customer financial data processing requirements. Retirement of this investment is scheduled for close of the fiscal year 2007. Archive and storage of data for audit and research purposes is being managed separately from this investment..