Fiscal Year 1999 Annual Performance Plan

Table of Contents

Section I

I. Introduction and Overview

I.1 Introduction 1

I.2 Mission Statement 2

I.3 Relationship to Departmental Goals 2

I.4 Impact of FY 1999 Budget Changes 2

I.5 Linkage to Strategic Plans and Budget 3

I.6 Additional Annual Performance Plan Requirements 3

I.6.1 Customer Service Standards 3

I.6.2 Use of Non-federal Parties in Preparing this Annual Plan 4

I.6.3 Crosscut Issues 4

I.6.4 Management Issues 4

I.6.5 Adjustments to the Strategic Plan 5

I.6.6 Capital Assets/Capital Programming 6

I.6.7 Waivers for Managerial Accountability and Flexibility 6

Section II

II. Goals

II.1 MISSION GOAL #1 - BETTER AML

II.1.1 Description of GPRA Program Activity .7

II.1.2 Related Budget Accounts, Budget Activities, Subactivities .8

II.1.3 Proposed Legislation .8

II.1.4 Impact of FY 1999 Budget Changes .8

II.1.5 Exhibit A-1 - Performance Plan 9

II.2 MISSION GOAL #2 - BETTER PROTECTION

II.2.1 Description of GPRA Program Activity 10

II.2.2 Related Budget Accounts, Budget Activities, Subactivities 11

II.2.3 Proposed Legislation 11

II.2.4 Impact of FY 1999 Budget Changes 11

II.2.5 Exhibit A-2 - Performance Plan 12

II.3 MISSION GOAL #3 - BETTER SERVICE

II.3.1 Description of GPRA Program Activity 13

II.3.2 Related Budget Accounts, Budget Activities, Subactivities 14

II.3.3 Proposed Legislation 14

II.3.4 Impact of FY 1999 Budget Changes 14

II.3.5 Exhibit A-3 - Performance Plan 15

II.4 MISSION GOAL #4 - BETTER OPERATIONS

II.4.1 Description of GPRA Program Activity 16

II.4.2 Related Budget Accounts, Budget Activities, Subactivities 17

II.4.3 Proposed Legislation 17

II.4.4 Impact of FY 1999 Budget Changes 17

II.4.5 Exhibit A-4 - Performance Plan 19

Section III

III. Performance Measures and Verification (Exhibit B) 21

Appendix

Index of Common Terms 27

Section I. Introduction and Overview

I.1 Introduction

The Office of Surface Mining Reclamation and Enforcement (OSM) was established with the signing of the Surface Mining Control and Reclamation Act of 1977 (SMCRA), Public Law 95-87, August 3, 1977.

OSM's mandates are carried out primarily through grants and cooperative agreements with States and Tribes that implement regulatory and reclamation programs in accordance with standards in SMCRA and its implementing regulations. When SMCRA was enacted and OSM subsequently established, a unified level of environmental performance standards was created for the coal industry. Coalfield citizens were provided the same rights as residents of other rural communities: safe lives, clean water, and secure lands for homes, pastures, farms, and recreation.

Currently, 24 States have "primacy," or approved State regulatory programs. This provides the States with the authority and responsibility to implement their own surface mining program. Each State program includes key elements such as permitting and bonding requirements, on-the-ground performance standards for mining operations, mine inspection and enforcement requirements, and procedures for designating lands as unsuitable for mining. In primacy States, OSM's mission becomes one of oversight, backup enforcement, and providing programmatic and technical assistance to the States.

In the absence of a State program, or a cooperative agreement with a State to regulate mining on Federal lands, OSM serves as the regulatory authority. For FY 1999, OSM will continue to implement Federal programs for Tennessee and Washington. OSM will also continue to regulate some of the largest mines in the country located on Indian lands in Arizona and New Mexico.

SMCRA provides the means for restoring abandoned coal mines through establishment of the Abandoned Mine Reclamation Fund which derives its monies from the collection of tonnage-based reclamation fees assessed on coal production. Each year, Congress appropriates monies from the Fund which are used by 23 AML program States and three Indian programs for on-the-ground reclamation projects. Through these projects, safety hazards are removed, highwalls eliminated, and causes of water and air pollution are treated or eliminated. Additionally, monies are used to fund Federal and State AML emergency programs aimed at addressing unanticipated occurrences; such as subsidence and landslides and the damage these events cause to human life and property. OSM conducts similar activities in non-program States and on Federal and other Indian lands. For States and Indian Tribes having approved AML programs, OSM conducts oversight activities and provides programmatic and technical assistance to the States and Tribes.

OSM is field-based, with three regional coordinating centers, ten field offices, six area offices and headquarters in Washington, D.C. OSM administers 12 federal programs, oversees 24 state programs, AML emergency programs, the AML fee compliance program, and Indian lands program.

OSM's Annual Performance Plan describes the major initiatives and anticipated accomplishments for Fiscal Year 1999. All of the projects described on the following pages are a part of the Agency's Performance Plan and are for the purpose of facilitating implementation of our "Mission and Vision" statements and for satisfying the strategic goals of the Agency.

I.2 Mission Statement

OSM's mission is to carry out the requirements of the Surface Mining Control and Reclamation Act in cooperation with States and Tribes. Our primary objectives are to ensure that coal mines are operated in a manner that protects citizens and the environment during mining and assures that the land is restored to beneficial use following mining, and to mitigate the effects of past mining by aggressively pursuing reclamation of abandoned coal mines.

I.3 Relationship to Departmental Goals

This performance plan is OSM's annual effort to fulfill, on a continuing basis, its comprehensive strategic plan. The plan consists of two goal categories and four mission goals, associated with accomplishing the mission of the Office and supporting the Department of the Interior's goal to "Protect the Environment and Preserve Our Nation's Natural and Cultural Resources." The two goal categories are: Program Goals, those goals that reflect the mission and statutory mandates of the Surface Mining Control and Reclamation Act (SMCRA) and directly relate to protecting and restoring the environment as a result of surface coal mining, and Management Goals, those that are necessary to improve OSM's operations in order to accomplish and support the program goals and the organization.

I.4 Impact of FY 1999 Budget Changes

The impact of FY1999 budget changes are discussed in more detail under specific program activities in Section II. The following chart depicts OSM's overall FY 1999 budget appropriation by business line.

I.5 Linkage to Strategic Plans and Budget

The linkage of the Office of Surface Mining's annual performance goals to the strategic plan and budget is straightforward. OSM first developed its mission statement, mission goals and GPRA program activities. Long-term goals and business lines were the developed to carryout the mission and activities. The annual performance goals are the yearly implementation of the long-term goals.

OSM developed core business lines for each of its goals resulting in a new budget structure that reflects these business lines. The business lines are: (1) Environmental Restoration; (2) Environmental Protection; (3) Technology Development and Transfer; and (4) Financial Management. (An additional business line is used for budgetary purposes, and is referred to as (5) Executive Direction and Administration).

The new budget structure reflects the way OSM does business in carrying out its mission and meeting its goals. This structure links budgetary resource requests to OSM's core business lines and supporting program activities. This allows OSM to communicate its resource requests in a way that the public can better understand while continuing to meet Congressional requirements. OSM submits its budget requests based on the business line structure and Congress appropriates funds in that manner. OSM then allocates funds internally for its operating budget within each business line.

I.6 Additional Annual Performance Plan Requirements

I.6.1 Customer Service Standards

One of OSM's strategic mission goals is devoted to providing better service to its customers, partners and stakeholders by strengthening the capabilities of States, Tribes, and OSM staff to enforce SMCRA effectively, which in turn, supports the mission outcomes of the Office. By improving service through open communications, technical training opportunities, technical assistance, and the transfer of technology better information and skills will be provided in order to make decisions.

OSM's annual performance goals for FY 1999 are reflective of the commitment to provide better service. Specific goals in this plan that relate to customer satisfaction include:

- OSM will maintain an 91% customer satisfaction rate in the quality of our technical training.

- OSM will maintain an 86% customer service rate for technical assistance activities.

- OSM will attain an 86% customer satisfaction rate for technical training/assistance of the Technical Information Processing System (TIPS).

- OSM will maintain an 86% customer satisfaction rate for our technical transfer activities.

- OSM will attain an 86 % customer service rate in the quality and timeliness of Applicant Violator System provided services.

- OSM will maintain a 93% customer service rate in the accuracy, timeliness and overall satisfaction of grants financial management.

I.6.2 Use of Non-federal Parties in Preparing this Annual Plan

This plan was prepared by the staff and management of the Office of Surface Mining, in conformance with Section 220.7 of OMB Circular A-11, and without any input from non-Federal parties.

I.6.3 Crosscut Issues

The Office of Surface Mining participates, along with a number of other natural resources agencies, in The Natural Resource Performance Management Forum. The Natural Resources Performance Management Forum was established in 1995 to discuss strategic goals and to coordinate agency planning activities. The Forum includes almost all of the Federal natural resource agencies, including the Bureau of Land Management, the Fish and Wildlife Service, the National Park Service, the Bureau of Reclamation, the Minerals Management Service, the U.S. Geological Survey, the Forest Service, the Natural Resources Conservation Service, the Department of Energy, the National Oceanic and Atmospheric Administration, the Environmental Protection Agency, the Tennessee Valley Authority, the Department of Defense, the Army Corps of Engineers, and the Office of Management and Budget. OSM's contribution to this is its Appalachian Cleans Streams Initiative, which contributes and leverages outside funds for the clean-up of acid mine drainage pollution.

I.6.4 Management Issues

In the Inspector General's report "Fee Compliance Program, Office of Surface Mining Reclamation and Enforcement" (no. 97-1-1303), issued in September 1997, we found that the Office of Surface Mining generally conducted its Fee compliance Program, which provided for the collection and audit of Abandoned Mine Reclamation Fund fees, in an efficient and effective manner and in accordance with authorizing legislation and regulations. However, the Office of Surface Mining could improve the efficiency of the fee collection process by providing for coal mine operators to transmit fee reporting data electronically. OSM's goal reflecting this issue is "OSM will maintain a 97% AML reclamation fee compliance rate as measured by the percent of permits reporting to OSM, compared to the number of permits that were mailed the fee reclamation report and the percent of accurately reported tons as determined through audits."

Status of Recommendation: The Office of Surface Mining has sent a letter to the Office of the Solicitor seeking a legal opinion on SMCRA's "notary requirement" regarding allowability and feasibility of requiring coal operators to use electronic transmission when sending completed OSM-1 forms to DFM.

In the Inspector General's report "Division of Debt Management, Office of Surface Mining Reclamation and Enforcement" (No. 96-I-639), issued in March 1996, the IG found that although OSM's Debt Management Division and the Department's Office of the Solicitor had made significant progress in streamlining operations and reducing the backlog of debt cases, the IG identified improvements that could further reduce debt collection costs, ensure compliance with laws and regulations governing the debt collection function, and result in more accurate data on delinquent debt. The report recommended that the Office of Surface Mining take actions to reduce administrative costs, to ensure compliance with Federal debt collection requirements, and to more accurately record and report debt. The report also recommended that the Solicitor initiate action to transfer some administrative tasks related to debt processing to the Office of Surface Mining. OSM's goal reflecting this issue is "OSM will maintain the reduction of non-exempt delinquent debt over 180 days by 25% annually and will maintain a 98% debt processing rate within the first 180 days."

Status of Recommendations: The Office of Surface Mining reduced Staff to the level recommended in the report, thus achieving an estimated $820,000 in cost savings. OSM has completed all actions on the recommendations.

I.6.5 Adjustments to the Strategic Plan

This Annual Performance Plan reflects a refocusing of OSM's mission goals in its Strategic Plan which were restated in plain English to be more results-oriented.

I.6.6 Capital Assets/Capital Programming

OSM has no capital assets and therefore there is no need for any capital programming in FY 1999.

I.6.7 Waivers for Managerial Accountability and Flexibility

This Plan requests no waivers of administrative requirements to provide managerial accountability and flexibility

Section II. Goals

II.1 MISSION GOAL/PROGRAM ACTIVITY #1: BETTER AML

II.1.1 Description of GPRA Program Activity

* Includes Civil Penalty Collections at $500k in 1998 and $275 in 1999.

This goal will be achieved primarily through OSM's Environmental Restoration business line. The Environmental Restoration business line involves all functions that contribute to reclaiming lands affected by past coal mining practices. It provides for the use of Abandoned Mine Reclamation (AML) funds to protect public health, safety, and general welfare from extreme danger and adverse effects of past coal mining practices. It also restores land and water resources and the environment previously degraded by these practices. In addition, OSM funds the Appalachian Clean Streams Initiative within this business line.

The majority of OSM's total funding request for this business line is devoted to AML State and Tribal reclamation grants funding. In addition to funding regular reclamation projects, these grants also include funding for State-operated emergency programs. The Environmental Restoration business line also supports the costs of the Federal reclamation program (both high priority and emergency reclamation projects) in States without their own reclamation programs. This business line also funds the costs of AML program development by providing resources for policy direction and program oversight. The program emphasizes protection of public health, safety and general welfare by: correcting problems associated with past mining practices; reclaiming mined land abandoned before the passage of the SMCRA (including certain interim program and insolvent surety coal sites abandoned after August 3, 1977); and constructing beneficial public facilities.

Resources, Skills, and Technology Needed: OSM and the AML program States and Tribes will continue to need a diverse and multidisciplinary cadre of scientific and engineering skills. These human resources establish reclamation project design and construction criteria either directly or in conjunction with contractors. Program analysts, grant specialists, and other support personnel are needed to implement the State/Tribal grants program and to conduct program evaluations. Computer systems personnel and contractors are needed to maintain the Abandoned Mine Land Inventory System. OSM maintains the system and network by which the States and Tribes manage their data.

II.1.2 Related Budget Accounts, Budget Activities, Subactivities

II.1.3 Proposed Legislation

None of OSM's current performance goals are contingent on enactment of legislation.

II.1.4 Impact of FY 1999 Budget Changes

The FY 1999 appropriation provided $145.3 million for State and Tribal funding for AML reclamation and emergency program; $2.1 million for State Program Evaluation; and $ 19.4 million for the Federal Reclamation Program of which $14.4 million is for projects, $5 million for operations and $3.8 million for Program Development and Maintenance. For efforts related to water quality improvements, the budget provides an increase of:

- $900,000 for State and Tribal Funding to increase Appalachian Clean Streams grants,

- $750,000 for Federal Reclamation Programs: High-Priority Projects to provide finishing money for projects sponsored by local organizations under the Clean Streams, and

- $150,000 to increase OSM's activities to improve States and local organizations fund leveraging capabilities.

In FY 1998, OSM proposed to shift resources from its regulatory efforts (Environmental Protection) to this business line and to the Technology Development and Transfer business line to reflect the change in its oversight role. The FY 1999 budget proposes to permanently shift these resources out of the Environmental Protection business line. OSM's appropriation language changes allow it to accept donations for the Clean Streams initiative and to be funded from the interest accrued to the AML Fund.

II.1.5 Exhibit A-1 - Performance Plan

Note: Budget dollars shown related to the Mission Goal are approximate and have been rounded to the nearest $100,000. 1/ A statistical conversion has been applied to the numerous types of Priority 1,2, and 3 reclamation projects which are measured in various units such as miles, acres, sites, counts, etc. in an attempt to make comparisons and summarizations possible.

II.2 MISSION GOAL/PROGRAM ACTIVITY #2: BETTER PROTECTION

II.2.1 Description of GPRA Program Activity

.* Reflects transfer (PL 105-174) and re-programmings since President's Budget submitted.

This goal will be achieved primarily through OSM's Environmental Protection business line. Program activities within this business line include functions that directly contribute to ensuring that the coalfield citizens, their property, and the environment are protected during surface coal mining operations. Also included are those activities that assure that coal operators adequately reclaim the land after mining is completed.

As with the Environmental Restoration business line, the principal means of delivering environmental protection within the framework of the SMCRA is by providing regulatory grants to the primacy States. OSM provides oversight of the State programs through evaluation processes and inspections.

The Environmental Protection business line also provides OSM with the resources needed to implement Federal and Indian programs. It includes direct permitting, inspection and enforcement activities in States not having primacy, in States that have not entered into cooperative agreements to oversee Federal lands within their borders, and on Indian lands. It provides for OSM's costs for regulatory program development and processing mine plans for Federal lands.

Resources, Skills, and Technology Needed: Program analysts, grant specialists, and other support personnel are needed to implement the State regulatory grants program and to conduct program evaluations. OSM and the primacy States will continue to need a diverse and multi-disciplinary cadre of personnel skilled in scientific and engineering areas to review mine permits, determine whether performance bond coverage and amounts are sufficient to ensure reclamation, conduct mine site inspections, and implement enforcement actions when necessary. Computer systems personnel are needed to help maintain various data systems, such as those that contain data from OSM's oversight and regulatory program inspections.

II.2.2 Related Budget Accounts, Budget Activities, Subactivities

II.2.3 Proposed Legislation

None of OSM's current performance goals are contingent on enactment of legislation.

II.2.4 Impact of FY 1999 Budget Changes

In FY 1999, the appropriation provides $50.7 million to fund twenty-four regulatory programs at the maximum 50 percent Federal match level, full funding for eleven Federal lands cooperative agreements with States, and full funding of four Tribal regulatory program development grants at $600,000.

In FY 1999, the appropriation provides $7.1 million to continue its State program oversight activities; $4.7 million to fund regulatory programs in non-program States like Arizona, Tennessee and Washington. The Budget provides $1.3 million for OSM to regulate Federal Lands. This amount reflects the proposed reduction of $100,000 and 1 FTE based on Kentucky assuming regulatory activities under a cooperative agreement. OSM also provides $2.1 million for regulatory programs on Indian Lands and $4.2 million for program development and maintenance to ensure that regulatory standards adequately reflect changes in technologies and program needs.

II.2.5 Exhibit A-2 - Performance Plan

Note: Budget dollars shown related to the Mission Goal are approximate and have been rounded to the nearest $100,000.

II.3 MISSION GOAL/PROGRAM ACTIVITY #3: BETTER SERVICE

II.3.1 Description of GPRA Program Activity

* Reflects transfer (PL 105-174) and re-programmings since President's Budget submitted.

This goal will be achieved primarily through OSM's Technology Development and Transfer business line. OSM's efforts to enhance the technical skills and provide the technical tools that OSM, States, and Tribes need to operate their regulatory and reclamation programs and to meet SMCRA requirements are identified under this business line. OSM wants to ensure that OSM, State, and Tribal staff have the highest possible level of technical capability in order to effectively implement and maintain SMCRA's objectives.

OSM offers technical training to OSM, State, and Tribal staff on new technologies and methods available to improve the effectiveness of regulatory and reclamation programs. OSM provides technical outreach to State and Tribal staff in a multi-disciplinary approach to solve problems related to the environmental effects of coal mining. OSM also provides daily informal assistance to States and Tribes. Technology transfer is a major part of OSM's cooperative effort with States and Tribes. By adopting its stakeholders' recommendations, OSM identified its changing role under this business line. OSM's technology transfer program initiated the development of electronic data transfer protocols, electronic permitting processes and guidelines, and geographic information system methodologies. OSM also collects and reviews technical studies on mining related problems and distributes the results to its stakeholders.

Resources, Skills, and Technology Needed: In FY 1999, OSM requested to shift funds from its regulatory program operations in order to ensure States, Tribes, and OSM have the best available technical data and information needed to make good science-based decisions regarding mining plans, reclamation project design, permit reviews, and acid mine drainage remediation and prevention. To successfully implement the Surface Mining and AML Programs, OSM, as well as the States and Tribes, must maintain multi-disciplinary staffs that are fully competent in addressing a wide variety of technical issues that impact these Programs.

II.3.2 Related Budget Accounts, Budget Activities, Subactivities

II.3.3 Proposed Legislation

None of OSM's current performance goals are contingent on enactment of legislation.

II.3.4 Impact of FY 1999 Budget Changes

In FY 1999, the appropriation provides $ 2.4 million for Technical Training; $9.7 million for Technical Assistance, including $1.5 million for Small Operators Assistance Program; and $ 2.7 million for Technology Transfer efforts to meet the annual goals set forth below.

The appropriation for Technical Transfer includes an increase of $200,000 for the Acid Drainage Technology Initiative (ADTI), an ongoing effort of OSM, State and other Federal agencies, academia, and industry as part of the Appalachian Clean Streams initiative. The objectives of the ADTI are to compile, assess, and document the "best science" technology solutions to acid mine drainage (AMD) reclamation problems as well as to refine the most effective methods for accurate AMD prediction.

II.3.5 Exhibit A-3 - Performance Plan

Note: Budget dollars shown related to the Mission Goal are approximate and have been rounded to the nearest $100,000.

* FY 1999 will be used as the baseline year - the two technical surveys 3.2 and 3.4 are newly developed and newly approved by OMB. We're using them for the first time in FY99. Adjustments to goal measures will be made after data is collected and analyzed to establish a baseline.

II.4 MISSION GOAL/PROGRAM ACTIVITY #4: BETTER OPERATIONS

II.4.1 Description of GPRA Program Activity

* Reflects transfer (PL 105-174) and re-programmings since President's Budget submitted.

* Reflects transfer (PL 105-174) and re-programmings since President's Budget submitted.

* Includes 10 reimbursable FTE performing personnel functions for BIA.

This goal will be achieved primarily through OSM's Financial Management and Executive Direction and Administration business lines. The Financial Management business line primarily involves efforts to maximize compliance with the Surface Mining Control and Reclamation Act (SMCRA) reclamation fee provisions so funds are available for abandoned mine land reclamation. This includes collecting and auditing over $260 million annually, and disbursing money through grants to the States and Tribes. SMCRA requires the Secretary to ensure full compliance with the reclamation fee provisions--a level which OSM always strives to achieve. However, there are some factors affecting the compliance rate, such as the economy in general and coal operators' financial condition in particular, that are beyond OSM's control. Another vital aspect is investing the unappropriated balance of the Abandoned Mine Reclamation Fund to maximize interest earnings, a portion of which is designated for payment to the United Mine Workers Combined Benefit Fund.

The business line also finances the cost of collecting other receivables, such as Federal fines and penalties assessed on mining violators. The revenue generated by the activities managed within the business line is available for appropriation by Congress to accomplish SMCRA's objectives.

Executive Direction and Administration is a business line in both the Regulation and Technology and the Abandoned Mine Reclamation Fund appropriations. There are four program activities within this business line.

(1) Executive Direction which includes the Office of Director, EEO, Office of Strategic Planning and Budget, and the Office of Communications;

(2) Administrative Support which include Information Systems Management and Administrative Services; and,

(3) General Services which provides funds for bureau-wide overhead costs such as GSA space, FTS telephone, postage, workers and unemployment compensation and the Department's Working Capital Fund.

(4) Administrative accounting, which provides control over appropriated funds.

Strategic and Annual Planning goals are not provided for administrative support functions.

Resources, Skills, and Technology Needed: To support program activities and to ensure that operators continue to support the surface mining program by paying appropriate fees, OSM plans to maintain a highly trained cadre of fee compliance auditors, financial systems personnel, and program accountants. Training will continue so that financial management personnel maintain a high level of skill and technical expertise.

There are a number of program financial data systems that OSM must maintain and enhance during FY 1999 to ensure that an effective, efficient, and accurate financial and accounting operation remains in effect.

II.4.2 Related Budget Accounts, Budget Activities, Subactivities

II.4.3 Proposed Legislation

None of OSM's current performance goals are contingent on enactment of legislation.

II.4.4 Impact of FY 1999 Budget Changes

In FY 1999, the appropriation provides $5.8 million for its Fee Compliance program activity; $430,000 for its Revenue Management program activity; and $162,000 for its Grants Financial Management program activity. In FY 1999 the appropriation also provides $3.4 million for Executive Direction program activity, $5.8 million for its Administrative Support program activity and $7.9 million for its General Services program activity.

In FY 1999, OSM will improve the skills and abilities of all employees through better communication by providing state-of-the-art information technology tools, training, and access. OSM will utilize the strategies contained in its recruitment plan to reduce the level of under-representation in "special interest" occupations. OSM will accomplish these goals through the concerted efforts of the entire bureau. The primary reporting contact will be through the Executive Direction and Administration business line, specifically the Personnel and Equal Employment Opportunity Offices.

OSM is requesting an increase of $400,000 for FY 1999 to fund the cost of converting any remaining systems and equipment to make them Year 2000 compliant by January 1, 2000.

In addition to funds for software modifications for Year 2000 compliance, OSM is identifying equipment that may contain embedded chips. This embedded chip technology could render some OSM equipment inoperable at the change of the century, if not replaced or repaired.

Telecommunications systems are critical to OSM, and are used in all areas throughout the agency. Modifying or replacing this equipment is vital to the continued operation of OSM. Microcomputers, which are not Year 2000 compliant, must be upgraded to ensure continued operation in Year 2000 and beyond.

Commercial off the shelf software (COTS), must be modified for Year 2000 compliance because the majority of OSM's computer applications are run on systems using COTS and other vendor purchased software. Without COTS upgrades, OSM would not be able to process information or respond to inquiries.

The Department and the Office of Management and Budget is requiring that an Independent Verification Certification be conducted on all mission critical systems to ensure Year 2000 compliance. Without funding for Independent Verification and Certification of compliance, OSM would not be assured that all required systems were in compliance.

II.4.5 Exhibit A-4 - Performance Plan

Note: Budget dollars shown related to the Mission Goal are approximate and have been rounded to the nearest $100,000.

Section III. Performance Measures and Verification (Exhibit B)

Goal Category, this optional classification exists only to provide a common way of grouping the major themes of an organization.

Mission Goal is a classification identifying outcome oriented goals that define how an organization will carry out its mission.

Long-Term Goals are the "general performance goals and objectives" identified in the Government Performance and Results Act. They define the intended result, effect, or consequence for what the organization does. They provide a measurable indication of future success by providing target levels of performance and a time frame for accomplishment. Long-term goals should focus on outcomes rather than outputs (products and services).

Annual Goal is a one-year increment of the long-term goal. It contains a targeted level of performance to be achieved for a particular year. It is to be expressed in an objective, quantifiable, and measurable form. OMB approval of an alternative form of evaluating the success of a program is required if the annual goal cannot be expressed in an objective or quantifiable manner.

GPRA Program Activity, is described as the consolidation, aggregation or disaggregation of program activities that are covered or described by a set of performance goals, provided that any aggregation or consolidation does not omit or minimize the significance of any program constituting a major agency function or operation.