U.S. ENVIRONMENTAL PROTECTION AGENCY
         OFFICE OF INSPECTOR GENERAL
                            Catalyst for Improving the Environment
Briefing Report
       Steps Taken But More Work Needed to
       Strengthen Governance, Increase
       Utilization, and Improve Security
       Planning for the Exchange Network

       Report No. 09-P-0184
       June 30, 2009

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Report Contributors                          Rudolph M. Brevard
                                             Cheryl Reid
                                             David Cofer
                                             Anita Mooney
                                             Sejal Shah
                                             Christina Nelson
Abbreviations

ASSERT     Automated System Security Evaluation and Remediation Tracking
CDX        Central Data Exchange
EPA         U.S. Environmental Protection Agency
NIST        National Institute for Standards and Technology
OIG         Office of Inspector General
SP           Special Publication

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                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                 WASHINGTON, D.C. 20460
                                                                          OFFICE OF
                                                                      INSPECTOR GENERAL
MEMORANDUM
SUBJECT:
FROM:
TO:
                                    June 30, 2009
         Steps Taken But More Work Needed to Strengthen Governance, Increase
         Utilization, and Improve Security Planning for the Exchange Network
         Report No. 09-P-0184
         Rudolph M. Brevard
         Director, Information Resources Management Assessments

         Linda Travers
         Acting Assistant Administrator and Chief Information Officer
         Office of Environmental Information
                    Lisa Schlosser
                    Director, Office of Information Collection
                    Office of Environmental Information
This is our report on the subject audit conducted by the Office of Inspector General (OIG) of the
U.S. Environmental Protection Agency (EPA). This report consists of the briefing presentation
we provided to Office of Environmental Information managers on May 4, 2009.  This report
contains findings that describe the problems the OIG has identified and corrective actions the
OIG recommends. This report represents the opinion of the OIG and does not necessarily
represent the final EPA position.  Final determinations on matters in this report will be made by
EPA managers in accordance with established audit resolution procedures.

We sought to determine whether EPA has taken:

   •  Corrective actions for recommendations made in the audit report Improved Management
      Practices Needed to Increase Use of Exchange Network, Report No. 2007-P-00030
      issued August 20, 2007; and
   •  Steps to ensure all Exchange Network components comply with federal security
      requirements.

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We conducted this audit from January through May 2009 at EPA Headquarters in Washington,
DC, in accordance with the generally accepted government auditing standards issued by the
Comptroller General of the United States. These standards require that we plan and perform the
audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and
conclusions. We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions.

We interviewed EPA personnel responsible for implementing the corrective actions in the prior
report and personnel responsible for managing the security activities reviewed.  We reviewed
relevant security documents and evaluated them against prescribed federal and EPA guidance.
We reviewed self-reported security information entered into the Agency's Automated  System
Security Evaluation and Remediation Tracking (ASSERT) system and compared it against
information contained in the provided security documents.

The estimated cost of this report - calculated by multiplying the project's staff days by the
applicable daily full cost billing rates in effect at the time - is $253,562.

Action Required

In accordance with EPA Manual 2750, you are required to provide a written response to this
report. We are requesting your response within 45 calendar days. You should include a
corrective actions plan for agreed upon actions, including milestone dates.

We would like to thank your staff for their cooperation. We have no objections to the further
release of this report to the public. This report will be available at http ://www. epa. gov/oig.

If you or your staff have any  questions regarding this report, please contact me at (202) 566-0893
or brevard.rudy@epa.gov: or Cheryl Reid, Project Manager, at (919) 541-2256 or
reid.cheryl@epa.gov.

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Steps Taken But More Work Needed
 to Strengthen Governance, Increase
  Utilization, and Improve Security
Planning for the Exchange Network
           Results of Review
              Report No. 09-P-0184

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Objective 1
       Status of Prior Audit Report Recommendations
                   Report No. 09-P-0184

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Prior Audit Report Recommendations
  Recommendation 2.1 -Acting Assistant Administrator
  for Environmental Information execute recently
  developed Exchange Network Communications and
  Marketing Plan elements that include actively promoting
  the business value of participating in Network initiatives
  to EPA and partner environmental program managers.

  Status - Ongoing and progressing
                     Report No. 09-P-0184

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Prior Audit Report Recommendations
(Cont.)
  Recommendation 2.2 - Acting Assistant Administrator
  for Environmental Information modify Exchange Network
  change management policies and procedures to include
  step-by-step processes for fully testing and certifying all
  implementation tools before release to the Exchange
  Network community.

  Status - Completed; published Principles, Rules, and
  Procedures for Change Management on the Exchange
  Network, V1.1, February 19, 2009.
                     Report No. 09-P-0184

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Prior Audit Report Recommendations
(Cont.)
  Recommendation 3.1 - Acting Assistant Administrator
  for Environmental Information work with Exchange
  Network governance bodies to develop and implement a
  process that uses the Network Business plan criteria to
  evaluate data flows for future Network implementation.

  Status - Completed; published 2009 Annual Exchange
  Network Grant Program Solicitation Notice, September,
  2008.
                    Report No. 09-P-0184

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Prior Audit Report Recommendations
(Cont.)
  Recommendation 4.1 - Acting Assistant Administrator for
  Environmental Information develop a new milestone plan
  for completing the Exchange Network performance
  measures project.

  Status - Completed; first Performance Measures
  reported May 2008.
                    Report No. 09-P-0184

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Prior Audit Report Recommendations
(Cont.)
  Recommendation 4.2 - Acting Assistant
  Administrator for Environmental Information develop
  procedures for establishing ad-hoc workgroups for
  Exchange Network projects.

  Status - Unimplemented
                    Report No. 09-P-0184

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Prior Audit Report Recommendations

(Cont.)

  Recommendation 5.1 - Acting Assistant Administrator
  for Environmental Information publish standards that
  specify when EPA program offices must use the
  Exchange Network when modernizing or developing
  applications. The standards should also specify the
  processes EPA offices must follow when the office
  cannot adhere to the established standards or select an
  alternate technology solution to the one prescribed.

  Status - Unimplemented
                     Report No. 09-P-0184

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Prior Audit Report Recommendations

(Cont.)

s  Recommendation 5.2 - Acting Assistant Administrator for
  Environmental Information include the Exchange Network
  and related technologies as part of the Agency's
  Enterprise Architecture.

  Status - Unimplemented
                    Report No. 09-P-0184

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Prior Audit Report Recommendations

(Cont.)

  Recommendation 5.3 - Acting Assistant Administrator
  for Environmental Information have Office of Information
  Collection complete its plans to develop a tool offices
  can use to evaluate their applications in regard to
  Network technologies.

  Status - Completed March 27, 2008; created a Return
  on Investment Estimator tool for program offices to use
  in the early stages of planning new data flows.
                     Report No. 09-P-0184                    10

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OIG Recommendations

 The Acting Assistant Administrator for
 Environmental Information should:
 1. Submit an updated Corrective Action Plan for
   unimplemented recommendations 4-2, 5-1, and 5-2

 2. Update EPA's Management Audit Tracking System
   regarding unimplemented recommendations.
                   Report No. 09-P-0184                   11

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Objective  2
       Compliance with Federal Security Requirements
                    Report No. 09-P-0184                      12

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Certification & Accreditation (C&A)
  The current Central Data Exchange (CDX) Certification
  and Accreditation package is not in compliance with
  federal security requirements because the approved
  system security plan, the security assessment report,
  and the plan of action and milestones do not meet
  federal and agency requirements.
                     Report No. 09-P-0184                     13

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Security Plan & Risk Assessment
  Minimum Security Controls are not in compliance with
  latest National Institute for Standards and Technology
  (NIST) Special Publication (SP) 800-53, Revision 1.

  Security plan does not comply with NIST SP 800-18,
  Revision 1, because the Minimum Security Controls
  Section does not thoroughly describe how each security
  control is being implemented, or planned to be
  implemented.

  The latest CDX Risk Assessment, dated December 22,
  2004, is outdated.
                     Report No. 09-P-0184                     14

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Contingency Plan
  Record of Changes is not maintained, as required by NIST
  SP 800-34 guidance and the EPA's Agency Network
  Security Policy.

  Office of Environmental Information did not provide
  documentation to (1) support the existence of a training
  plan that meets federal policy or guidance, and (2) confirm
  personnel have been trained on contingency plan
  responsibilities and procedures within the last two years.

  Office of Environmental Information has not conducted
  annual Contingency Plan testing, as required by the CDX
  Contingency Plan, Section 5. Last test was conducted in
  March 2006.

                      Report No. 09-P-0184                     15

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ASSERT Reporting
  ASSERT reporting for CDX is not accurate.

  Only:

  a 33% of the ASSERT data reviewed is supported by
    the corresponding data in the official security plan.
  a 25% of the ASSERT assessment entries are
    compliant with NIST SP 800-18,  Revision 1.
  a 42% of the control elements evaluated in the official
    security plan are compliant with NIST SP 800-18,
    Revision 1.
                     Report No. 09-P-0184                    16

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Vulnerability Scanning
   Monthly server full system scans and Patchlink reports
   are not performed, as required by both EPA and CDX
   policy and procedures.

   Weekly server full system scans are not being
   performed, as required by both EPA and CDX policy
   and procedures.
                     Report No. 09-P-0184                    17

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Summary
   Steps needed to ensure the Exchange Network is fully
   recognized as the preferred method for exchanging
   environmental information between EPA and its partners,
   and to strengthen Exchange Network governance.

   Emphasis needed to ensure CDX meets the prescribed
   federal security requirements.

   Without action, management hinders its ability to
   achieve the desired utilization of the Exchange Network
   and ensure the Network is operating without
   vulnerabilities that could put needed data at risk.
                      Report No. 09-P-0184                     18

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OIG Recommendations

The Director, Office of Information Collection
should:

3. Recertify and reaccredit CDX.

4. Update the CDX Security Plan to comply with NIST SP
   800-18, and ensure the plan describes how CDX
   implements the minimum security controls contained in
   NIST SP 800-53.

5. Conduct a formal, independent risk assessment of CDX;
   and ensure CDX is reassessed every three years, as
   required by EPA policy.

                    Report No. 09-P-0184                   19

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OIG Recommendations (cont.)
6.  Maintain the CDX Contingency Plan Record of
    Changes, as required by NIST SP 800-34 guidance
    and EPA's Network Security Policy.

7.  Develop a CDX Contingency Plan training plan that
    meets federal requirements and ensure personnel with
    contingency plan responsibilities receive required
    training on responsibilities and procedures.

8.  Conduct CDX Contingency Plan testing at least
    annually, as required by Agency policy and NIST
    guidance.
                     Report No. 09-P-0184                     20

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OIG Recommendations (cont.)

9.  Ensure data entered into ASSERT are supported either
   by the system security plan or by other documents
   referenced in the system security plan.

10. Perform required weekly and monthly network
   vulnerability testing, as required by EPA and CDX
   policy and procedures.

11. Issue an Interim Authorization to Operate CDX until
   CDX is reaccredited.

12. Enter a Plan of Actions and Milestones in the Agency's
   information security weakness tracking system for
   recommendations 3 through 11.
                     Report No. 09-P-0184                     21

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