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Report to the Chairman, Subcommittee on National Security, Emerging 
Threats, and International Relations, Committee on Government Reform, 
House of Representatives: 

United States Government Accountability Office: 

GAO: 

June 2006: 

Managing Sensitive Information: 

DOD Can More Effectively Reduce the Risk of Classification Errors: 

GAO-06-706: 

GAO Highlights: 

Highlights of GAO-06-706, a report to the Chairman, Subcommittee on 
National Security, Emerging Threats, and International Relations, 
Committee on Government Reform, House of Representatives 

Why GAO Did This Study: 

Misclassification of national security information impedes effective 
information sharing, can provide adversaries with information to harm 
the United States and its allies, and incurs millions of dollars in 
avoidable administrative costs. As requested, GAO examined (1) whether 
the implementation of the Department of Defense’s (DOD) information 
security management program, effectively minimizes the risk of 
misclassification; (2) the extent to which DOD personnel follow 
established procedures for classifying information, to include 
correctly marking classified information; (3) the reliability of DOD’s 
annual estimate of its number of classification decisions; and (4) the 
likelihood of DOD’s meeting automatic declassification deadlines. 

What GAO Found: 

A lack of oversight and inconsistent implementation of DOD’s 
information security program are increasing the risk of 
misclassification. DOD’s information security program is decentralized 
to the DOD component level, and the Office of the Under Secretary of 
Defense for Intelligence (OUSD(I)), the DOD office responsible for 
DOD’s information security program, has limited involvement with, or 
oversight of, components’ information security programs. While some DOD 
components and their subordinate commands appear to manage effective 
programs, GAO identified weaknesses in others in the areas of 
classification management training, self-inspections, and 
classification guides. For example, training at 9 of the 19 components 
and subordinate commands reviewed did not cover fundamental 
classification management principles, such as how to properly mark 
classified information or the process for determining the duration of 
classification. Also, OUSD(I) does not have a process to confirm 
whether self-inspections have been performed or to evaluate their 
quality. Only 8 of the 19 components performed self-inspections. GAO 
also found that some of the DOD components and subordinate commands 
that were examined routinely do not submit copies of their security 
classification guides, documentation that identifies which information 
needs protection and the reason for classification, to a central 
library as required. Some did not track their classification guides to 
ensure they were reviewed at least every 5 years for currency as 
required. Because of the lack of oversight and weaknesses in training, 
self-inspection, and security classification guide management, the 
Secretary of Defense cannot be assured that the information security 
program is effectively limiting the risk of misclassification across 
the department. 

GAO’s review of a nonprobability sample of 111 classified documents 
from five offices within the Office of the Secretary of Defense shows 
that, within these offices, DOD personnel are not uniformly following 
established procedures for classifying information, to include 
mismarking. In a document review, GAO questioned DOD officials’ 
classification decisions for 29—that is, 26 percent of the sample. GAO 
also found that 92 of the 111 documents examined (83 percent) had at 
least one marking error, and more than half had multiple marking 
errors. While the results from this review cannot be generalized across 
DOD, they are consistent with the weaknesses GAO found in the way DOD 
implements its information security program. 

The accuracy of DOD’s classification decision estimates is questionable 
because of the considerable variance in how these estimates are derived 
across the department, and from year to year. However, beginning with 
the fiscal year 2005 estimates, OUSD(I) will review estimates of DOD 
components. This additional review could improve the accuracy of DOD’s 
classification decision estimates if methodological inconsistencies 
also are reduced. 

GAO also found that, without the involvement of other federal agencies, 
DOD was unlikely to fully meet automatic declassification deadlines set 
in Executive Order 12958, as amended. If DOD fails to complete its 
review by the declassification deadlines, it risks inappropriately 
declassifying information that should remain classified. 

What GAO Recommends: 

To reduce the risk of misclassification and improve DOD’s information 
security operations, GAO is recommending six actions, including several 
to increase program oversight and accountability. In reviewing a draft 
of this report, DOD concurred with GAO’s recommendations. DOD also 
provided technical comments, which we have included as appropriate. 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-06-706]. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Davi M. D'Agostino at 
(202) 512-5431 or dagostinod@gao.gov. 

[End of Section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

DOD'S Information Security Program Lacks Oversight and Consistent 
Implementation: 

Results of OSD Document Review Show Some Questionable Classification 
Decisions and Numerous Marking Errors: 

The Accuracy of DOD's Classification Decisions Estimate Is 
Questionable: 

DOD's Ability to Meet All of the Executive Order's Automatic 
Declassification Deadlines Depends on the Actions of Other Federal 
Agencies: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments and Our Evaluation: 

Appendix I: Scope and Methodology: 

Appendix II: Comments from the Department of Defense: 

Appendix III: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: Classification Level and the Expected Impact of Unauthorized 
Disclosure: 

Table 2: DOD Component Training Programs for Derivative Classifiers: 

Table 3: Tracking of Security Classification Guides Varies among DOD 
Components: 

Table 4: Required Markings on Classified Records: 

Table 5: Examples of Common Marking Errors in OSD Document Sample: 

Figures: 

Figure 1: DOD's Number of Classification Decisions Compared to Those of 
Other Federal Agencies: 

Figure 2: Distribution of Marking Errors Detected in OSD Document 
Sample (n = 213 errors): 

Figure 3: DOD Automatic Declassification Activity in Fiscal Year 2004, 
as Measured by the Number of Pages Declassified: 

Figure 4: Locations of Army, Navy, Air Force, and Marine Corps 
Automatic Declassification Sites: 

Abbreviations: 

DOD: Department of Defense: 

GAO: Government Accountability Office: 

ISOO: Information Security Oversight Office: 

OSD: Office of the Secretary of Defense: 

OUSD(I): Office of the Under Secretary of Defense for Intelligence: 

United States Government Accountability Office: 

Washington, DC 20548: 

June 30, 2006: 

The Honorable Christopher Shays: 
Chairman, Subcommittee on National Security, Emerging Threats, and 
International Relations: 
Committee on Government Reform: 
House of Representatives: 

Dear Mr. Chairman: 

The U. S. Government classifies information as Confidential, Secret, or 
Top Secret if its unauthorized disclosure could damage the national 
security of the United States.[Footnote 1] Since 1940, the 
classification, safeguarding, and declassification of national security 
information have been prescribed in a series of presidential executive 
orders. The current order in effect, Executive Order 12958, Classified 
National Security Information, as amended, defines the different 
security classification levels, lists the types of information that can 
be protected, and describes how to identify and mark classified 
information.[Footnote 2] 

According to data compiled by the Information Security Oversight Office 
(ISOO), the office responsible for overseeing the government's 
information security program, the number of classified records in 
existence is unknown because there is no requirement to account for the 
majority of these records. However; during the last 5 fiscal years that 
data are available (2000 through 2004), federal agencies reported that 
they created about 110 million new classified records, of which the 
Department of Defense (DOD) was responsible for more than half (66.8 
million).[Footnote 3] The former DOD Deputy Under Secretary of Defense 
for Counterintelligence and Security testified in 2004 in a 
congressional hearing that she believed the department overclassified 
information, and she estimated that 50 percent of information may be 
overclassified, to include overclassification between the 
classification levels. An example would be the classifying of 
information as Top Secret instead of Secret. The Director of ISOO in 
the same hearing testified that information that should not be 
classified is increasing, in violation of the Executive Order. 
According to the Director, too much classification impedes effective 
information sharing, too little classification can provide adversaries 
with information to harm the United States and its allies; and 
misclassification in general causes the department to incur millions of 
dollars in avoidable administrative costs. 

The Under Secretary of Defense for Intelligence is the senior DOD 
official responsible for the direction, administration, and oversight 
of DOD's information security program.[Footnote 4] DOD's current 
implementing regulation, Information Security Program, was issued in 
January 1997 and augmented with interim guidance in April 2004 to 
reflect changes required by Executive Order 12958, as amended. The 
regulation has decentralized the management of the program to the heads 
of the various DOD components.[Footnote 5] Officials from the Office of 
the Under Secretary of Defense for Intelligence (OUSD(I)) told us that 
they expect to publish an updated version of the Information Security 
Program in 2007 to replace the 1997 edition and the interim guidance. 

As requested, we examined (1) whether the implementation of DOD's 
information security management program effectively minimizes the risk 
of misclassification; (2) the extent to which DOD personnel follow 
established procedures for classifying information, to include 
correctly marking classified information; (3) the reliability of DOD's 
annual estimate of its number of classification decisions; and (4) the 
likelihood of DOD's meeting automatic declassification deadlines. As 
part of your request that we report on DOD's information security 
program, we also reported in March 2006 on the Department of Defense 
and Department of Energy programs to safeguard unclassified yet 
sensitive information and we will report on the status of the 
Department of Energy's information security program later this 
year.[Footnote 6] In similar work, we recently issued a report on the 
designation of sensitive security information at the Transportation 
Security Administration[Footnote 7] and a report on the executive 
branch agencies' current efforts to share sensitive homeland security 
information among federal and nonfederal entities, and the challenges 
posed by such information sharing.[Footnote 8] Finally, we are 
currently reviewing the management of both unclassified yet sensitive 
information and national security information within the Department of 
Justice. 

To evaluate whether DOD's information security program effectively 
minimizes the risk of misclassification, the reliability of DOD's 
annual classification decision estimate, and the likelihood of DOD's 
meeting automatic declassification deadlines, we reviewed documentation 
and met with officials responsible for setting information security 
policy and implementation (such as training and oversight) from the 
OUSD(I) and nine DOD components and 10 of their subordinate commands. 
Collectively, these nine components are responsible for about 83 
percent of the department's classification decisions. We compared the 
DOD components' and subordinate commands' information security policies 
and practices with the Executive Order 12958, as amended; the ISOO 
directive, Classified National Security Information Directive No. 1; 
the DOD regulation 5200.1-R, Information Security Program; and other 
DOD implementing guidance. 

To assess adherence to procedures in the Executive Order for 
classifying information, we reviewed a nonprobability sample of 111 
recently classified documents prepared by five offices within the 
Office of the Secretary of Defense (OSD). Because the total number of 
classified documents held by DOD is unknown, we did not pursue a 
probability sampling methodology to produce results that could be 
generalized to OSD or DOD. [Footnote 9] 

We conducted our work between March 2005 and February 2006 in 
accordance with generally accepted government auditing standards. A 
more thorough description of our scope and methodology is provided in 
appendix I. 

Results in Brief: 

A lack of oversight and inconsistent implementation of DOD's 
information security program increase the risk of misclassification. 
DOD's information security program is decentralized to the DOD 
component level, and the OUSD(I) has limited involvement in, and 
oversight of, components' information security programs. This office 
does little monitoring or evaluating of the DOD components' information 
security actions. Also, while some DOD components and subordinate 
commands appear to manage their programs effectively, we identified 
weaknesses in other components' and subordinate commands' training, 
self-inspection, and security classification guide management. For 
example, all of the DOD components and subordinate commands that we 
reviewed offered the compulsory initial and annual refresher training 
for personnel eligible to classify documents. However, classification 
management training at 8 of the 19 components and subordinate commands 
we reviewed did not cover fundamental classification management 
principles, such as the markings that must appear on classified 
information and the process for determining the duration of 
classification. Also, the OUSD(I) did not have a process to confirm 
whether required self-inspections had been performed or to evaluate 
their quality, and did not prescribe in detail what self-inspections 
should cover. We found that only 8 of the 19 DOD components and 
subordinate commands performed these required self-inspections. 
Instead, more than half of the 19 performed less rigorous staff 
assistance visits. We also found that some of the DOD components and 
subordinate commands that we examined did not routinely submit copies 
of their security classification guides, documentation which identifies 
what information needs protection and the reason for classification, to 
a central library as required. Some did not track their security 
classification guides to ensure they were current and reviewed every 5 
years as required. As a result, DOD personnel cannot be assured that 
they are using the most current information to derivatively classify 
documents. DOD is studying ways to improve its current approach to 
making security classification guides readily available, 
departmentwide. Because of the lack of oversight and weaknesses in 
training, self-inspections, and classification guide management, the 
Secretary of Defense cannot be assured that the information security 
program is effectively limiting the risk of misclassification across 
the department. 

Our review of a nonprobability sample of 111 classified DOD documents 
from five OSD offices shows that, within these offices, DOD personnel 
are not uniformly following established procedures for classifying 
information, to include correctly marking classified information. 
Executive Order 12958, as amended, lists criteria for what information 
can be classified, and which markings are required on classified 
records. In our review of the OSD documents, we questioned DOD 
officials' classification decisions for 29 documents--that is, 26 
percent of the sample. The majority of our questions centered around 
two problems: the inconsistent treatment of similar information within 
the same document, and whether all of the information marked as 
classified met established criteria for classification. We also found 
that 93 of the 111 documents we examined (84 percent) had at least one 
marking error, and about half had multiple marking errors. For example, 
we found that 25 percent of the 111 documents had improper 
declassification instructions, and 42 percent of the documents failed 
to provide information about their data sources--such as the names and 
dates--as required. While the results from this review cannot be 
generalized across DOD, they are indications of the lack of oversight 
and inconsistency that we found in DOD's implementation of its 
information security program. 

The accuracy of DOD's annual estimate of its number of classification 
decisions is questionable. Although ISOO issues guidance on how 
components should calculate their classification decisions estimate, we 
found considerable variance across the department and from year to year 
in how this guidance was implemented. For example, DOD components 
differed in the types of information they included in the count, the 
number and types of lower echelon units included in the count, and 
decisions as to when to count and for how long. In fiscal year 2005, 
OUSD(I) began scrutinizing the estimates of its components before 
consolidating and submitting them to ISOO for inclusion in its annual 
report to the President. 

DOD's ability to meet all of the automatic declassification deadlines 
in Executive Order 12958, as amended, depends on the actions of other 
federal agencies. DOD components reported being on pace to review their 
documents of permanent historical value by December 31, 2006; however, 
they told us that they are unlikely to review all of the documents 
referred to them by other DOD components and non-DOD agencies before 
2010, and special media (such as audio and video recordings) before 
2012, the dates on which these records are scheduled to be 
automatically declassified. DOD's progress in reviewing records that 
contain classified information belonging to other federal agencies is 
hampered by the absence of a federal government standard for annotating 
these records, a centralized location within DOD or the federal 
government to store these records, and, a common database that federal 
agencies can use to track the status of these records. DOD's ability to 
remove these impediments without the involvement of other federal 
agencies is limited. If DOD fails to complete its review by the 
declassification deadlines, it risks inappropriately declassifying 
information that should remain classified. 

To reduce the risk of misclassification and improve DOD's information 
security operations, we are recommending six actions, including several 
to increase program oversight and accountability. In commenting on our 
draft, DOD agreed with all of our recommendations. DOD also provided 
technical comments, which we have included as appropriate. The 
department's response is reprinted in appendix II. 

Background: 

Executive Order 12958, Classified National Security Information, as 
amended, specifies three incremental levels of classification-- 
Confidential, Secret, and Top Secret--to safeguard information 
pertaining to the following: 

* military plans, weapons systems, or operations; 

* foreign government information; 

* intelligence activities (including special activities), intelligence 
sources/methods, cryptology; 

* foreign relations/activities of the United States, including 
confidential sources; 

* scientific, technological, or economic matters relating to national 
security, which includes defense against transnational terrorism; 

* United States government programs for safeguarding nuclear materials 
or facilities; 

* vulnerabilities or capabilities of systems, installations, 
infrastructures, projects, plans, or protection services relating to 
the national security, which includes defense against transnational 
terrorism; or: 

* weapons of mass destruction. 

The requisite level of protection is determined by assessing the damage 
to national security that could be expected if the information were 
compromised (see table 1). 

Table 1: Classification Level and the Expected Impact of Unauthorized 
Disclosure: 

Classification levels: Confidential; 
Expected impact of unauthorized disclosure: Damage. 

Classification levels: Secret; 
Expected impact of unauthorized disclosure: Serious damage. 

Classification levels: Top Secret; 
Expected impact of unauthorized disclosure: Exceptionally grave 
damage.  

Source: Executive Order 12958, §1.2, as amended. 

[End of table]

Executive Order 12958, as amended, prohibits classifying information so 
as to conceal violations of law, inefficiency, or administrative error; 
prevent embarrassment to a person, organization, or agency; restrain 
competition; or prevent or delay the release of information, which does 
not require protection in the interest of national security. 

Classification decisions can be either original or derivative. Original 
classification is the initial determination that information requires 
protection against unauthorized disclosure in the interest of national 
security. An original classification decision typically results in the 
creation of a security classification guide, which is used by 
derivative classifiers and identifies what information should be 
protected, at what level, and for how long. Derivative classification 
is the incorporation, paraphrasing, or generation of information in new 
form that is already classified, and marking it accordingly.[Footnote 
10] In 2004, 1,059 senior-level officials in DOD were designated 
original classification authorities, and as such, they were the only 
individuals permitted to classify information in the first 
instance.[Footnote 11] But any of the more than 1.8 million DOD 
personnel who possess security clearances potentially have the 
authority to classify derivatively. According to DOD, less than 1 
percent of the estimated 63.8 million classification decisions the 
department made during fiscal years 2000 through 2004 were original; 
however, ultimately, original classification decisions are the basis 
for 100 percent of derivative classification decisions. 

Executive Order 12958, as amended, assigns ISOO the responsibility for 
overseeing agencies' compliance with the provisions of the Executive 
Order.[Footnote 12] In this capacity, ISOO (1) performs on-site 
inspections of agency information security operations, (2) conducts 
document reviews, (3) monitors security education and training 
programs, and (4) reports at least annually to the President on the 
degree to which federal agencies are complying with the Executive 
Order. ISOO also issued Classified National Security Information 
Directive No. 1 to implement the Executive Order.[Footnote 13] The 
Executive Order and the ISOO directive stipulate a number of specific 
responsibilities expected of federal agencies, including DOD. Examples 
of responsibilities are promulgating internal regulations; establishing 
and maintaining security education and self-inspection programs; 
conducting periodic declassification reviews; and committing sufficient 
resources to facilitate effective information security operations. The 
Executive Order and the ISOO directive also require classifiers to 
apply standard markings to classified information. For example, 
originally classified records must include the overall classification 
as well as portion or paragraph marking, a "Classified by" line to 
identify the original classifier, a reason for classification, and a 
"Declassify on" date line. 

Executive Order 12958, as amended, states that information shall be 
declassified when it no longer meets the standards for 
classification.[Footnote 14] The point at which information generally 
becomes declassified is set when the decision is made to classify, and 
it is either linked to the occurrence of an event, such as the 
completion of a mission, or to the passage of time. Classified records 
that are more than 25 years old and have permanent historical value are 
automatically declassified unless an exemption is granted because their 
contents could cause adverse national security repercussions.[Footnote 
15] 

The Defense Security Service Academy is responsible for providing 
security training, education, and awareness to DOD components, DOD 
contractors, and employees of other federal agencies and selected 
foreign governments. The academy's 2005 course catalog includes more 
than 40 courses in general security and in specific disciplines of 
information, information systems, personnel, and industrial security, 
and special access program security. These courses are free for DOD 
employees and are delivered by subject matter experts at the academy's 
facilities in Linthicum, Maryland, and at student sites worldwide via 
mobile training teams. Some courses are available through video 
teleconferencing and the Internet. In fiscal year 2004, more than 
16,000 students completed academy courses, continuing an upward trend 
over the past 4 years.[Footnote 16] 

According to ISOO, DOD is one of the most prolific classifiers 
(original and derivative combined) among federal government agencies. 
From fiscal year 2000 to fiscal year 2004, DOD and the Central 
Intelligence Agency had individual classification activity that were 
each more than all other federal agencies combined. In 3 of these 5 
years, DOD's classification activity was higher than that of the 
Central Intelligence Agency's (see figure 1). 

Figure 1: DOD's Number of Classification Decisions Compared to Those of 
Other Federal Agencies: 

[See PDF for image] 

Source: GAO's analysis of ISOO data. 

[End of figure] 

During these same 5 years, DOD declassified more information than any 
other federal agency, and it was responsible for more than three- 
quarters of all declassification activity in the federal government. 

DOD's Information Security Program Lacks Oversight and Consistent 
Implementation: 

A lack of oversight and inconsistent implementation of DOD's 
information security program are increasing the risk of 
misclassification. DOD's information security program is decentralized 
to the DOD component level, and OUSD(I) involvement in, and oversight 
of, components' information security programs is limited. Also, while 
some DOD components and subordinate commands appear to manage their 
programs effectively, we identified weaknesses in others' training, 
self-inspections, and security classification guide management. As a 
result, we found that many of the organizations we reviewed do not 
fully satisfy federal and DOD classification management requirements, 
which contributes to an increased risk of misclassification. 
Specifically, most of the components and subordinate commands we 
examined did not establish procedures to ensure that personnel 
authorized to and actually performing classification actions are 
adequately trained to do so, did not conduct rigorous self-inspections, 
and did not take required actions to ensure that derivative 
classification decisions are based on current, readily available 
documentation. According to the ISOO Director, adequate training, self- 
inspections, and documentation are essential elements of a robust 
information security program and their absence can impede effective 
information sharing and possibly endanger national security.[Footnote 
17] 

OUSD(I) Oversight of DOD Classification Management Program Is Limited: 

As required by Executive Order 12958, OUSD(I) issued a regulation in 
January 1997, Information Security Program, outlining DOD's information 
security program. This regulation does not specifically identify 
oversight responsibilities for OUSD(I), but instead decentralizes the 
management of the information security program to the heads of DOD 
components. Consequently, according to the DOD regulation, each DOD 
component is responsible for establishing and maintaining security 
training, conducting self-inspections, and issuing documentation to 
implement OUSD(I) guidance and security classification guides. OUSD(I) 
exercises little oversight over how the components manage their 
programs. As a result, OUSD(I) does not directly monitor components' 
compliance with federal and DOD training, self-inspection, and 
documentation requirements stipulated in Executive Order 12958, as 
amended; the ISOO directive; and the DOD regulation. For example, 
OUSD(I) does not require components to report on any aspects of the 
security management program. Also, OUSD(I) does not conduct or oversee 
self-inspections, nor does it confirm whether self-inspections have 
been performed or review self-inspection findings. At the time of our 
review, OUSD(I)'s involvement consisted of accompanying ISOO on 
periodic inspections of select DOD components and subordinate commands 
that are not under the four military services. Additionally the DOD 
implementing regulation does not describe what self-inspections should 
cover, such as the recommended standards in the ISOO directive. 

Based on our analysis, we believe that OUSD(I)'s decentralized 
approach, coupled with the lack of specificity in the department's 
implementing regulation on what components must do to satisfy the 
Executive Order and ISOO directive self-inspection requirement, has 
resulted in wide variance in the quality of components' information 
security programs. 

Classification Management Training Is Inadequate to Substantially 
Reduce Improper Classification Practices: 

Because all cleared personnel have the authority to derivatively 
classify information, they are required to have annual refresher 
training, whether or not they engaged in derivative classification 
actions. All of the 19 DOD components and subordinate commands we 
reviewed offer initial and annual refresher training for their 
personnel who are involved with derivative classification activities, 
and most track attendance to ensure that the training is received, as 
required by the ISOO directive and the DOD regulation (see table 2). 

However, from our analysis of the components' and subordinate commands' 
initial and annual refresher training, we determined that only 11 of 
the 19 components and subordinate commands cover the fundamental 
classification principles cited in the ISOO directive, the DOD 
regulation, and specifically defined as the minimum training that 
classifiers must have in a November 2004 memorandum signed by the Under 
Secretary of Defense for Intelligence.[Footnote 18] That is, the 
training offered by 8 of the components and subordinate commands does 
not describe the basic markings that must appear on classified 
information, the difference between original and derivative 
classification, the criteria that must be met to classify information, 
and the process for determining the duration of classification. 
Consequently, this training will not provide DOD with assurance that it 
will reduce improper classification practices, as called for in the 
ISOO directive. We also noted that 14 of the DOD components and 
subordinate commands do not assess whether participants understand the 
course material by administering a proficiency test. 

Table 2: DOD Component Training Programs for Derivative Classifiers: 

DOD components and subordinate commands: Department of the Army; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Army: Army 
Intelligence and Security Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Army: Army 
Materiel Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Army: Army 
Research, Development, and Engineering Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Chief of Naval Operations; 
Initial and annual refresher training: check; 
Participant attendance tracked: [Empty]; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Chief of Naval Operations: 
Naval Sea Systems Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: [Empty]; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Chief of Naval Operations: 
Naval Surface Warfare Center, Dahlgren Division; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: check. 

DOD components and subordinate commands: Chief of Naval Operations: 
Naval Air Systems Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Air Force; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Air Force: 
Air Combat Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Air Force: 
Air Force Materiel Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Department of the Air Force: 
88th Air Base Wing; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: check. 

DOD components and subordinate commands: Headquarters, Marine Corps; 
Initial and annual refresher training: check; 
Participant attendance tracked: [Empty]; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Headquarters, Marine Corps: 
Marine Forces Atlantic; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: [Empty]; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Central Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: [Empty]; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

DOD components and subordinate commands: Special Operations Command; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: check. 

DOD components and subordinate commands: National Geospatial- 
Intelligence Agency; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: check. 

DOD components and subordinate commands: Defense Intelligence Agency; 
Initial and annual refresher training: check; 
Participant attendance tracked: check; 
Classification principles adequately covered: check; 
Proficiency tested: check. 

DOD components and subordinate commands: National Security Agency; 
Initial and annual refresher training: check; 
Participant attendance tracked: [Empty]; 
Classification principles adequately covered: check; 
Proficiency tested: [Empty]. 

Source: GAO's analysis of DOD data. 

[End of table] 

Components and subordinate commands that cover the classification 
principles cited in the ISOO directive and the DOD regulation include: 

* the Army Intelligence and Security Command, which issues the 
Command's A Users Guide to the Classification and Marking of Documents 
to personnel; 

* the Army Materiel Command, which uses information obtained from the 
Defense Security Service Academy to develop its refresher training on 
marking classified records; 

* the Naval Surface Warfare Center, Dahlgren Division, which requires 
personnel to complete an online refresher course and pass a proficiency 
test before they can print out a certificate indicating a passing 
score; 

* the 88th Air Base Wing, which requires personnel to attend four 
quarterly briefings each year on relevant classification management 
topics; 

* the Special Operations Command, which developed an online refresher 
course, complete with a proficiency test that must be passed to receive 
credit for attending; 

* the National Geospatial-Intelligence Agency, which requires personnel 
to sign an attendance card indicating that they completed initial and 
annual refresher training, and issues them the agency's Guide to 
Marking Documents; and: 

* the Defense Intelligence Agency, which provides personnel a 13-page 
reference guide that explains how to comply with Executive Order 12958, 
as amended. 

All of the components and subordinate commands that we examined provide 
their original classification authorities with initial training, 
frequently in one-on-one sessions with a security manager. However, 
only about half of the components and subordinate commands we examined 
provide the required annual refresher training to original 
classification authorities. 

DOD personnel could take better advantage of the information security 
curriculum offered by the Defense Security Service Academy, including 
Basic Information Security, Information Security Orientation, 
Information Security Management, and Marking Classified Information. 
For example, Marking Classified Information is a 2-3 hour no-cost, 
online course that explains how to mark classified information in 
accordance with Executive Order 12958, as amended, and requires the 
person taking the course to complete and pass a proficiency test at the 
end of the course. The Under Secretary's memorandum specifically 
mentioned the academy and its courses as a way for the components to 
facilitate their training. Our analysis of academy attendance data for 
fiscal years 2003 through 2004 indicates that of the more than 1.8 
million DOD personnel who possessed security clearances and potentially 
had the authority to classify documents derivatively, 4,775 DOD 
personnel completed an information security course, and 2,090 DOD 
personnel completed the Marking Classified Information course.[Footnote 
19],[Footnote 20] 

Self-Inspections Lack Rigor: 

Eleven of the 19 DOD components and subordinate commands we reviewed do 
not perform required self-inspections as part of the oversight of their 
information security programs. The ISOO directive requires agencies to 
perform self-inspections at all organizational levels that originate or 
handle classified information. Agencies have flexibility in determining 
what to cover in their self-inspections, although ISOO lays out several 
standards that it recommends DOD and other agencies consider including, 
such as: 

* reviewing a sample of records for appropriate classification and 
proper markings; 

* assessing familiarity with the use of security classification guides; 

* reviewing the declassification program; 

* evaluating the effectiveness of security training; and: 

* assessing senior management's commitment to the success of the 
program. 

In its Information Security Program regulation, DOD components are 
directed to conduct self-inspections based on program needs and the 
degree of involvement with classified information; components and 
subordinate commands that generate significant amounts of classified 
information should be inspected at least annually. "Program needs," 
"degree of involvement," and "significant amounts" are not quantified, 
and components and subordinate commands have interpreted these phrases 
differently. For example, the Marine Corps performs self-inspections 
annually; the Naval Sea Systems Command performs self-inspections every 
3 years; and Headquarters, Department of the Army, does not perform 
them. Navy and Army officials with whom we spoke cited resource 
constraints, and, in particular, staffing shortages, as the reason why 
inspections were not performed more often. 

The DOD regulation's chapter on training requires DOD components to 
evaluate the quality and effectiveness of security training during self-
inspections; however, none of the 19 components and subordinate 
commands we examined does so. Evaluating the quality of training during 
self-inspections can identify gaps in personnel's skill and 
competencies, and focus efforts to improve existing training.[Footnote 
21] 

Ten of the 19 DOD components and subordinate commands we reviewed 
perform staff assistance visits of their lower echelon units in lieu of 
more rigorous self-inspections. Staff assistance visits, which 
typically are not staffed by inspectors, train the visited organization 
on how to meet inspection requirements, and any noted deficiencies are 
informally briefed to the local command staff. However, no official 
report is created for tracking and resolving deficiencies. According to 
ISOO officials, staff assistance visits do not fulfill the inspection 
requirement specified in Executive Order 12958, as amended. However, in 
commenting on a draft of this report, DOD officials stated that they 
were unaware of ISOO's position on staff assistance visits. 

Of the 19 DOD components and subordinate commands we reviewed, only 7 
conduct periodic document reviews as part of their self-inspections, 
although they are required to do so. In addition to revealing the types 
and extent of classification and marking errors, a document review can 
offer insight into the effectiveness of annual refresher training. 

DOD Has Not Taken Sufficient Action to Ensure That Derivative 
Classification Decisions Are Based on Current Documentation: 

DOD has no assurance that personnel who derivatively classify 
information are using up-to-date security classification guides; 
however, our review showed that more than half of the estimated number 
of guides at the 17 organizations that could identify the number of 
guides they had were tracked for currency and updated at least every 5 
years. DOD's approach to providing personnel access to up-to-date 
classification guides through a central library at its Defense 
Technical Information Center has been ineffective. OUSD(I) is studying 
ways to improve the centralized availability of up-to-date 
classification guides. 

Executive Order 12958, as amended, directs agencies with original 
classification authority, such as DOD, to prepare security 
classification guides to facilitate accurate and consistent derivative 
classification decisions. Security classification guides identify what 
information needs protection and the level of classification; the 
reason for classification, to include citing the applicable categories 
in the Executive Order; and the duration of classification. The ISOO 
directive and DOD regulation also require agencies to review their 
classification guides for currency and accuracy at least once every 5 
years, and to update them as necessary. As table 3 shows, some DOD 
components and subordinate commands did not manage their classification 
guides to facilitate accurate derivative classification decisions. 
Since 2 of the 19 organizations were unable to provide us with the 
number of classification guides that they are responsible for, we could 
not determine the total number of classification guides belonging to 
the components and subordinate commands we reviewed. However, the 
remaining 17 organizations estimated their combined total to be 2,243 
classification guides. 

Table 3: Tracking of Security Classification Guides Varies among DOD 
Components: 

DOD component and subordinate commands: Army; 
Estimated number of guides: Unknown; 
Process to track guides: Not tracked at this organizational level. 

DOD component and subordinate commands: Army: Intelligence and Security 
Command; 
Estimated number of guides: 3; 
Process to track guides: Currency of guides is tracked centrally. 
Centralized library has paper and electronic copies. 

DOD component and subordinate commands: Army: Army Materiel Command; 
Estimated number of guides: Unknown; 
Process to track guides: Not tracked at this organizational level. 

DOD component and subordinate commands: Army: Research, Development, 
and Engineering Command; 
Estimated number of guides: 65; 
Process to track guides: Currency of guides is tracked centrally in an 
automated database. Some guides are available online to authorized 
users. 

DOD component and subordinate commands: Navy/Marine Corps[A]; Estimated 
number of guides: 1,100; Process to track guides: Centralized library 
has a paper copy of each guide. Currency of guides is not tracked 
centrally. Automated database is under development. 

DOD component and subordinate commands: Naval Sea Systems Command; 
Estimated number of guides: 300; 
Process to track guides: Centralized library has a paper copy of each 
guide. Currency of guides is not tracked centrally. Automated database 
is under development. 

DOD component and subordinate commands:Navy/Marine Corps[A]: Naval 
Surface Warfare Center, Dahlgren Division; 
Estimated number of guides: 0; 
Process to track guides: Not applicable. 

DOD component and subordinate commands: Navy/Marine Corps[A]: Naval Air 
Systems Command; 
Estimated number of guides: 200; 
Process to track guides: Currency of guides is tracked centrally in an 
automated database. Centralized library has a paper copy of each guide. 

DOD component and subordinate commands: Navy/Marine Corps[A]: Marine 
Forces, Atlantic; 
Estimated number of guides: 0; 
Process to track guides: Not applicable. 

DOD component and subordinate commands: Air Force; 
Estimated number of guides: 525; 
Process to track guides: Effort to create electronic versions of guides 
that will allow authorized users' access is ongoing. Currency of guides 
is tracked centrally. 

DOD component and subordinate commands: Air Force: Air Combat Command; 
Estimated number of guides: 0; 
Process to track guides: Not applicable. 

DOD component and subordinate commands: Air Force: Air Force Materiel 
Command; 
Estimated number of guides: 416; 
Process to track guides: Centralized library has a paper copy of each 
guide. Guides are tracked centrally in an automated database. Currency 
of guides not tracked. 

DOD component and subordinate commands: Air Force: 88th Air Base Wing; 
Estimated number of guides: 36; 
Process to track guides: Currency of guides is tracked centrally in an 
automated database. Centralized library has a paper or electronic copy 
of each guide. 

DOD component and subordinate commands: Central Command; 
Estimated number of guides: 1; 
Process to track guides: Electronic version of guide available to 
authorized users. Currency of guide is tracked centrally. 

DOD component and subordinate commands: Special Operations Command; 
Estimated number of guides: 30; 
Process to track guides: Centralized library has a paper copy of each 
guide. Automated database is under development that will allow 
authorized users to access electronic version of guides. Currency of 
guides tracked centrally. 

DOD component and subordinate commands: National Geospatial- 
Intelligence Agency; 
Estimated number of guides: 10; 
Process to track guides: Currency of guides is tracked, many of which 
are program specific and require less frequent updating. 

DOD component and subordinate commands: Defense Intelligence Agency; 
Estimated number of guides: 9; 
Process to track guides: Currency of guides is tracked centrally. Plan 
is to create electronic version of each guide for authorized users to 
access. 

DOD component and subordinate commands: National Security Agency; 
Estimated number of guides: 500; 
Process to track guides: Currency of guides is tracked centrally. Paper 
index of guides maintained.  

Source: GAO analysis. 

[A] Marine Corps security classification guides are managed by the 
Navy. 

[End of table]

Of the 13 components and subordinate commands we reviewed that possess 
multiple classification guides: 

* 10 maintain paper or electronic copies of classification guides in a 
central location, or are in the process of doing so; 

* 8 track the currency of more than half of their combined 
classification guides to facilitate their review, to ensure that they 
are updated at least every 5 years, in accordance with the ISOO 
directive; and: 

* 8 either have made or are in the process of making their 
classification guides available to authorized users electronically. 
These 8 components and subordinate commands represent over 1,700--more 
than 75 percent--of the classification guides belonging to the DOD 
organizations that we reviewed. 

DOD's strategy for providing personnel ready access to up-to-date 
security classification guides to use in making derivative 
classification decisions has been ineffective for two reasons. 
Officials at some of the DOD components and subordinate commands we 
examined told us that they routinely submit copies of their 
classification guides to the Defense Technical Information Center, as 
required, while others told us they do not.[Footnote 22] However, 
because of the way in which the Defense Technical Information Center 
catalogs its classification guide holdings, center officials could not 
tell us the names and the number of classification guides it possesses 
or is missing. In addition, center officials told us that they cannot 
compel original classification authorities to submit updated versions 
of their classification guides or report a change in status, such as a 
classification guide's cancellation. When the center receives a new 
classification guide, it enters up to three independent search terms in 
an electronic database to create a security classification guide index. 
As of October 2005, the center had in excess of 4,000 index citations 
for an estimated 1,400 classification guides, which is considerably 
fewer than the estimated 2,234 classification guides that 17 of the 19 
components and subordinate commands reported possessing. 

The absence of a comprehensive central library of up-to-date 
classification guides increases the potential for misclassification, 
because DOD personnel may be relying on insufficient, outdated 
reference material to make derivative classification decisions. Navy 
and Air Force officials showed us evidence of classification guides 
that had not been reviewed in more than five years, as the ISOO 
directive and DOD regulation require. As table 3 shows, several 
components and subordinate commands have taken or are taking action to 
improve derivative classifiers' access to security classification 
guides; however, except for the Air Force, there is no coordination 
among these initiatives, and neither the Defense Technical Information 
Center nor the OUSD(I) is involved. During our review, OUSD(I) 
officials told us that the department is studying how to improve its 
current approach to making up-to-date classification guides readily 
available, departmentwide. 

Results of OSD Document Review Show Some Questionable Classification 
Decisions and Numerous Marking Errors: 

In our review of a nonprobability sample of 111 classified OSD 
documents we questioned DOD officials' classification decisions for 29 
documents--that is, 26 percent of the sample. We also found that 93 of 
the 111 documents we examined (84 percent) had at least one marking 
error, and about half had multiple marking errors. Executive Order 
12958, as amended, lists criteria for what information can be 
classified, and for markings that are required to be placed on 
classified records. While the results from this review cannot be 
generalized across DOD, they are indications of the lack of oversight 
and inconsistency that we found in DOD's implementation of its 
information security program. 

To determine the extent to which personnel in five OSD offices followed 
established procedures for classifying information, we reviewed 111 
documents recently classified by OSD, which revealed several 
questionable classification decisions and a large number of marking 
errors. In all, we questioned the classification decisions in 29, 
comprising 26 percent of the documents in the OSD sample. The majority 
of our questions pertained to whether all of the information marked as 
classified met established criteria for classification (16 
occurrences), the seemingly inconsistent treatment of similar 
information within the same document (10 occurrences), and the apparent 
mismatch between the reason for classification and the document's 
content (5 occurrences). We gave the OSD offices that classified the 
documents an opportunity to respond to our questions, and we received 
written responses from the Offices of the Under Secretaries of Defense 
for Policy; Comptroller/Chief Financial Officer; and for Acquisition, 
Technology, and Logistics; regarding 17 of the 29 documents. In 
general, they agreed that several of the documents in question 
contained errors of misclassification. For example, we questioned the 
need to classify all of the information marked Confidential or Secret 
in 13 of the 17 documents. In their written responses, the three OSD 
offices agreed that, in 5 of the 13 documents, the information was 
unclassified, and in a sixth document the information should be 
downgraded from Secret to Confidential. The OSD offices did not state 
an opinion on 3 documents. We did not receive responses to our 
questions from the other two OSD offices on the remaining 12 documents. 

The Executive Order, ISOO directive, and DOD's regulation together 
establish criteria for the markings that are required on classified 
records (see table 4). 

Table 4: Required Markings on Classified Records: 

Marking requirement: Overall classification level of record cited; 
Originally classified record: x; 
Derivatively classified record: x. 

Marking requirement: Portion markings present; 
Originally classified record: x; 
Derivatively classified record: x. 

Marking requirement: "Declassify on" line completed; 
Originally classified record: x; 
Derivatively classified record: x. 

Marking requirement: "Classified by" line completed; 
Originally classified record: x; 
Derivatively classified record: [Empty]. 

Marking requirement: Executive Order authorized "reason for" 
classification cited; 
Originally classified record: ; x; 
Derivatively classified record: [Empty]. 

Marking requirement: "Derived from" line completed; 
Originally classified record: [Empty]; 
Derivatively classified record: x. 

Source: GAO analysis. 

[End of table] 

The documents included in our document review were created after 
September 22, 2003, which is the effective date of ISOO's Classified 
National Security Information Directive No. 1 and almost 6 months after 
Executive Order 12958 was last amended. The ISOO directive prescribes a 
standardized format for marking classified information that, according 
to the directive, is binding except in extraordinary circumstances or 
as approved by the ISOO Director.[Footnote 23] To implement 
classification marking changes that resulted from the Executive Order 
and directive, DOD issued its own interim guidance on April 16, 2004. 

Our review revealed that 93 of the 111 OSD documents (84 percent) had 
at least one marking error and about half of the documents had multiple 
marking errors, resulting in 1.9 errors per document we reviewed. As 
figure 2 shows, the marking errors that occurred most frequently 
pertained to declassification, the sources used in derivative 
classification decisions, and portion marking. 

Figure 2: Distribution of Marking Errors Detected in OSD Document 
Sample (n = 213 errors): 

[See PDF for image] 

Source: GAO analysis. 

[End of figure] 

The most common marking errors that we found in the OSD document 
sample, by type of marking error, are listed in table 5. 

Table 5: Examples of Common Marking Errors in OSD Document Sample: 

Types of marking errors: Inaccurate or incomplete declassification 
instructions; 
Examples of marking errors: 
* source not provided; therefore, unable to determine; 
* discontinued exemption codes; 
* formerly restricted data exempt;
* originating agency's determination required. 

Types of marking errors: Inaccurate or incomplete "derived from" line; 
Examples of marking errors: 
* title of source document omitted; 
* date of source document omitted; 
* "classified by" line incorrectly inserted. 

Types of marking errors: Inaccurate or incomplete portion marking; 
Examples of marking errors: 
* entire pages not marked; 
* individual paragraphs not marked; 
* section titles not marked; 
* subject line not marked. 

Types of marking errors: Inaccurate "reason for" classification cited; 
Examples of marking errors: 
* section 1.6., not section 1.4. of Executive Order cited; 
* section 1.6. without a subsection cited. 

Types of marking errors: Inaccurate overall classification level; 
Examples of marking errors: 
* not releasable to foreign nationals caveat not included in portion 
markings; 
* releasable to the United States of America, Canada, and the United 
Kingdom caveat present in portion marking, but not included in page 
marking. 

Source: GAO analysis. 

[End of table] 

Since ISOO issued its directive in September 2003, it has completed 19 
classified document reviews of DOD components and subordinate 
commands.[Footnote 24] The types of marking errors that ISOO reported 
finding were similar to what we found among the OSD documents. 
Specifically, marking errors associated with declassification, source, 
and portion marking represented more than 60 percent of the errors in 
both document samples. 

The Accuracy Of DOD's Classification Decisions Estimate Is 
Questionable: 

DOD's estimate of how many classification decisions it makes each year 
is of questionable accuracy. Although ISOO provides DOD components with 
guidance as to how they should calculate classification decisions, we 
found considerable variance within the department in how this guidance 
was implemented. For example, there was inconsistency regarding which 
records are included in the estimate, the number and types of lower 
echelon units that are included, when to estimate, and for how long to 
estimate. 

ISOO requires federal agencies to estimate the number of original and 
derivative classification decisions they made during the previous 
fiscal year, which ISOO includes in its annual report to the President. 
Agency estimates are based on counting the number of Confidential, 
Secret, and Top Secret original and derivative classification decisions 
during a designated time period and extrapolating an annual rate from 
them. According to ISOO guidance, agencies typically count their 
classification decisions during a consecutive 2-week period in each of 
the four quarters of the fiscal year, for a combined total of 8 weeks. 

OUSD(I) officials told us that two highly classified categories of 
information, sensitive compartmented information and special access 
programs, are included in the count; however, several components and 
subordinate commands we examined omit these categories from their 
totals. In addition, some components and subordinate commands--such as 
the Army's Research, Development, and Engineering Command and the 
National Geospatial-Intelligence Agency--include e-mails in their 
count, while others--such as the Defense Intelligence Agency and the 
Central Command--do not. Whether or not to include e-mails can 
dramatically affect counts. For example, the National Security Agency's 
classification estimate declined from 12.5 million in fiscal year 2002 
to only 7 in fiscal year 2003. Agency officials attributed this 
dramatic drop to e-mails being included in the totals for fiscal year 
2002 and not for fiscal year 2003. 

Some DOD components and subordinate commands do not query their entire 
organization, to encompass all personnel who may be classifying 
information. For example, the Defense Intelligence Agency randomly 
selects four of its eight directorates to participate, and the National 
Security Agency and the Naval Air Systems Command selects only lower 
echelon organizations that have an original classification authority. 
As a result, these locations omit an unknown number of derivative 
classification decisions. The Navy bases its annual estimate on data 
covering a 2-week period from each of its major commands once per year 
rather than from all of its commands, four times per year as suggested 
in ISOO guidance. For example, during the first quarter, the Marine 
Corps is queried, and during the second quarter, the fleet commands are 
queried. Also, some of the combatant commands' service components are 
not queried at all, such as the Army's component to the European 
Command, the Navy's component to the Transportation Command, the Air 
Force's component to the Southern Command, and the Marine Corps' 
component to the Central Command. In commenting on a draft of this 
report, the department correctly points out that guidance issued by 
ISOO allows each component to decide who to include in its 
classification decisions estimate. 

The Special Operations Command and the Central Command both schedule 
their counts at the end of the fiscal year; 4 consecutive weeks at the 
former, and 8 consecutive weeks at the latter. Special Operations 
Command officials told us that the end of the fiscal year tends to be a 
slower operational period, thereby allowing more time to conduct the 
data collection. 

DOD components and subordinate commands convert their estimates in 
different ways to project an entire year. Those that conform to the 
suggested ISOO format of four 2-week counting periods a year (that is, 
8 weeks) multiply their counts by 6.5 (that is, 8 weeks x 6.5 = 52 
weeks). The Navy, however, multiplies each of its four separate counts 
by 429 to account for all of the lower echelon units not represented in 
the estimate.[Footnote 25] 

Our review of DOD's submissions to ISOO of its estimated number of 
classification decisions for fiscal years 2000 through 2004, revealed 
several anomalies. For example, the National Reconnaissance Office 
reported making more than 6 million derivative and zero original 
classification decisions during this 5-year period, and the Marine 
Forces, Atlantic, reported zero derivative and zero original 
classification decisions during fiscal years 2003 and 2004. Subsequent 
conversations with Marine Forces, Atlantic, officials indicated that a 
misunderstanding as to what constitutes a derivative classification 
decision resulted in an underreporting for those 2 years. 

Other examples of DOD component data submissions during this 5-year 
time period that had either a disproportionate reporting of original 
versus derivative classification decisions or a significant change in 
counts from 1 year to the next include: 

* DOD reported in fiscal year 2004 that, departmentwide, about 4 
percent of its classification decisions were original, yet the Defense 
Advanced Research Projects Agency and the Joint Forces Command both 
reported that more than 70 percent of their classification decisions 
were original. 

* DOD reported in fiscal year 2003, that departmentwide, less than 2 
percent of its classification decisions were original, yet the Joint 
Staff and the European Command both reported more than 50 percent of 
their classification decisions were original. 

* DOD reported in fiscal year 2002 that, departmentwide, less than 1 
percent of its classification decisions were original, yet the Office 
of the Secretary of Defense and the Southern Command both reported more 
than 20 percent of their classification decisions were original. 

* DOD reported an increase in the number of original classification 
decisions during the fiscal year 2002 through 2004 period, from 37,320 
to 47,238 (about a 27 percent increase), to 198,354 (about a 300 
percent increase). However, during this same 3-year period, the Navy's 
trend for original classification decisions was from 1,628 to 16,938 
(about a 900 percent increase) to 1,898 (about a 90 percent decrease); 
and the Army's trend was from 10,417 to 2,056 (about an 80 percent 
decrease) to 133,791 (about a 6,400 percent increase). 

DOD reported a 75 percent decrease in the total number of 
classification decisions (that is, original and derivative) from fiscal 
year 2002 to fiscal year 2004, yet several DOD components reported a 
significant increase in overall classification decisions during this 
same time period, including the Defense Threat Reduction Agency (a 
20,107 percent increase), the Southern Command (1,998 percent 
increase), Defense Intelligence Agency (a 1,202 percent increase), and 
the National Geospatial-Intelligence Agency (a 354 percent increase). 

OUSD(I) has decided to discontinue the practice of DOD components 
submitting their classification decisions estimates directly to ISOO. 
Beginning with the fiscal year 2005 estimates, OUSD(I) will scrutinize 
the classification decision estimates of its components before 
consolidating and submitting them to ISOO. Properly conducted, 
OUSD(I)'s review could improve the accuracy of these estimates, if 
methodological inconsistencies are reduced. 

DOD's Ability to Meet All of the Executive Order's Automatic 
Declassification Deadlines Depends on the Actions of Other Federal 
Agencies: 

Army, Navy, and Air Force classification officials told us that the 
military services are on pace to meet the target date of 2006 for 
reviewing their own classified documents that qualify for automatic 
declassification, and for referring records that contain classified 
information belonging to other agencies to those agencies--an assertion 
endorsed by ISOO in its 2004 report to the President. However, these 
officials told us that they are less likely to meet the target date of 
2009 for reviewing records referred to them, and of 2011 for reviewing 
special media (such as audio and video recordings). DOD's ability to 
satisfy the 2009 and 2011 target dates depends, to a great extent, on 
the actions of other federal agencies. 

We limited our review of DOD's automatic declassification program to 
the four military services because, as figure 3 shows, they performed 
85 percent of all the declassification within DOD in fiscal year 2004. 

Figure 3: DOD Automatic Declassification Activity in Fiscal Year 2004, 
as Measured by the Number of Pages Declassified: 

[See PDF for image] 

Source: GAO's analysis of ISOO data. 

[End of figure] 

Executive Order 12958, as amended, stipulates that on December 31, 
2006, and on December 31 of every year thereafter, classified records 
that are (1) at least 25 years old and (2) of permanent historical 
value shall in general be automatically declassified, whether or not 
they have been reviewed. The Executive Order sets a record's date of 
origination as the time of original classification, and it also exempts 
certain types of information from automatic declassification, such as 
information related to the application of intelligence sources and 
methods. The automatic declassification deadline for records containing 
information classified by more than one agency, such as the Army and 
the Air Force or the Army and the Central Intelligence Agency, is 
December 31, 2009, and for special media it is December 31, 2011. For 
the most part, only the originating agency can declassify its own 
information. Consequently, if the Army discovers classified information 
that was originated by the U.S. State Department, the Army must alert 
the State Department and refer the information to the State Department 
for resolution. The Executive Order describes special media as 
microforms, motion pictures, audiotapes, videotapes, or comparable 
media that make its review for possible declassification exemptions 
"more difficult or costly."[Footnote 26] The ISOO directive mirrors 
these requirements and directs ISOO, in conjunction with its parent 
organization, the National Archives and Records Administration, and 
other concerned agencies to develop a standardized process for 
referring records containing information classified by more than one 
agency across the federal government. 

Army, Navy/Marine Corps, and Air Force classification officials told us 
that they face a variety of challenges impacting their ability to meet 
the target dates of 2009 for reviewing records referred to them, and of 
2011 for reviewing special media. Based on information provided by 
officials from the military services and the National Archives and 
Records Administration who are responsible for the automatic 
declassification effort, it appears that three obstacles hinder their 
progress toward meeting these deadlines. DOD's ability to remove these 
obstacles without the involvement of other federal agencies is limited. 
First, there is no federal government standard for annotating 
classified records that contain information classified by more than one 
agency. For example, two non-DOD agencies both annotate their records 
with a "D" and an "R," but for opposite purposes. That is, one of the 
agencies uses a "D" to denote "deny automatic declassification" and an 
"R" to denote "release," while the other agency uses a "D" to denote 
"declassify" and an "R" to denote "retain." The National Archives and 
Records Administration and various interagency working groups and task 
forces have sought a federal government standard, but National Archives 
officials told us that they were not optimistic that agencies would 
reach agreement soon. According to these officials, the lack of a 
federal government standard has contributed to the inadvertent release 
of classified information. 

Second, there is no central location within DOD or the federal 
government for storing records eligible for automatic declassification 
that contain information classified by multiple DOD components or non- 
DOD agencies. To review records originated by the four military 
services, agencies must send personnel trained to evaluate information 
for declassification suitability to as many as 14 different sites where 
the records are stored. For example, the Air Force has records eligible 
for automatic declassification at storage sites located in Ohio, 
Alabama, and Texas (see figure 4). National Archives officials pointed 
out that consolidating the records at fewer sites may be more 
efficient, and likely more cost-effective. 

Figure 4: Locations of Army, Navy, Air Force, and Marine Corps 
Automatic Declassification Sites: 

[See PDF for image] 

Sources: DOD; Copyright Corel Corp. All rights reserved (map). 

[End of figure] 

A third factor that may cause DOD to miss meeting the Executive Order 
deadlines is the lack of a common database that federal government 
agencies can use to track the status of records containing information 
classified by more than one agency. The ISOO directive allows federal 
government agencies to utilize electronic databases to notify other 
agencies of their referrals; however, agencies have created their own 
databases that operate independently of one another. In commenting on a 
draft of this report, DOD officials stated that, despite the lack of 
federal government standards, the department has been a leading 
proponent of working collaboratively with other federal agencies to 
meet automatic declassification deadlines. We cannot confirm the 
accuracy of DOD's characterization because DOD's relationship with 
other agencies involved in automatic declassification was not part of 
our review. 

Conclusions: 

The Under Secretary of Defense for Intelligence has delegated the 
execution and oversight of information security to the DOD component 
level. This decentralized approach, coupled with inconsistency in the 
implementation of components' information security programs, has 
resulted in wide variance in the quality of these programs. For 
example, the OUSD(I) does not directly monitor components' compliance 
with federal and DOD training, self-inspection, and documentation 
requirements stipulated in Executive Order 12958, as amended; the ISOO 
directive; and the DOD regulation. Inadequate classification management 
training, self-inspections, and security classification guide 
documentation among the various DOD components increase the risk of (1) 
poor classification decisions and marking errors, similar to what we 
observed in our OSD document review; (2) restricting access to 
information that does not pose a threat to national security; and (3) 
releasing information to the general public that should still be 
safeguarded. 

OUSD(I) oversight could reduce the likelihood of classification errors. 
For example, if OUSD(I) ensured that components evaluated the quality 
and effectiveness of training and periodically included document 
reviews in their self-inspections, prevalent classification errors 
could be addressed through annual refresher training that derivative 
classifiers complete. Evaluating the quality of training can assist 
components in targeting scarce resources on coursework that promotes 
learning and reduces misclassification. Although the results of our 
review of a sample of OSD documents cannot be generalized 
departmentwide, we believe these results coupled with the weaknesses in 
training, self-inspections, and documentation that we found at numerous 
components and subordinate commands increases the likelihood that 
documents are not being classified in accordance with established 
procedures. 

DOD's estimate of how many original and derivative classification 
decisions it makes annually is unreliable because it is based on data 
from the DOD components that were derived using different assumptions 
about what should be included and about data collection and estimating 
techniques. Still, this estimate is reported to the President and to 
the public, and it is routinely cited in congressional testimony by DOD 
officials and freedom of information advocates as authoritative. During 
our review, OUSD(I) decided to resume its practice of reviewing 
components' classification estimates before they are submitted to ISOO. 
If properly implemented, this review could improve data reliability to 
some extent, but only if it addresses the underlying lack of uniformity 
in how the individual DOD components are collecting and manipulating 
their data to arrive at their estimates. 

The automatic declassification provision in Executive Order 12958, as 
amended, requires agencies generally to declassify records that are 25 
years old or more and that no longer require protection. The Army, 
Navy/Marine Corps, and Air Force reported they are on track to review 
all of the documents they classified before the deadline; however, they 
are less likely to complete their review of the untold number of 
records containing information classified by other DOD components and 
non-DOD agencies by the deadlines set in the Executive Order. As the 
deadlines pass and these records are automatically declassified, 
information that could still contain national security information 
becomes more vulnerable to disclosure. DOD's ability to meet these 
deadlines is jeopardized both by conditions beyond and conditions 
within its direct control. For example, DOD cannot require non-DOD 
agencies to adopt a national standard for annotating classified 
records, but it can take action to streamline the process of reviewing 
records containing information classified by more than one DOD 
component. 

Recommendations for Executive Action: 

To reduce the risk of misclassification and create greater 
accountability across the department, we recommend that the Secretary 
of Defense direct the Under Secretary of Defense for Intelligence to: 

* establish a centralized oversight process for monitoring components' 
information security programs to ensure that they satisfy federal and 
DOD requirements. This oversight could include requiring components to 
report on the results of self-inspections or other actions, targeted 
document reviews, and/or reviews by the DOD Inspector General and 
component audit agencies. 

* to issue a revised Information Security Program regulation to ensure 
that: 

- those personnel who are authorized to and who actually perform 
classification actions, receive training that covers the fundamental 
classification principles as defined in the Under Secretary's 
memorandum of November 30, 2004 and that completion of such training is 
a prerequisite for these personnel to exercise this authority; 

- the frequency, applicability, and coverage of self-inspections, and 
the reporting of inspection results are based on explicit criteria; 
and: 

- authorized individuals can access up-to-date security classification 
guides necessary to derivatively classify information accurately. 

To support informed decision making with regard to information 
security, we recommend that the Secretary of Defense direct the Under 
Secretary of Defense for Intelligence to institute quality assurance 
measures to ensure that components implement consistently the DOD 
guidance on estimating the number of classification decisions, thereby 
increasing the accuracy and reliability of these estimates. 

To assist DOD in its efforts to meet automatic declassification 
deadlines, we recommend that the Secretary of Defense direct the Under 
Secretary of Defense for Intelligence to evaluate the merits of 
consolidating records eligible for automatic declassification that 
contain information classified by multiple DOD components at fewer than 
the current 14 geographically dispersed sites. 

Agency Comments and Our Evaluation: 

In commenting on a draft of this report, DOD concurred with all six 
recommendations; however, the department expressed concern that we did 
not accurately portray the Navy's program for managing its security 
classification guides. Upon further review, we modified table 3 in the 
report and accompanying narrative to indicate that the Navy (1) does 
have a centralized library containing paper copies of its security 
classification guides, and (2) is developing an automated database to 
make its classification guides available to authorized users 
electronically. We disagree with the department's assertion that the 
Navy is tracking its classification guides to ensure that they are 
reviewed at least once every 5 years for currency and are updated 
accordingly. Based on our discussions with Navy information security 
officials, including the Retrieval and Analysis of Navy (K)lassified 
Information (RANKIN) Program Manager, and observing a demonstration of 
the spreadsheet used to catalog security classification guide holdings, 
we saw no evidence to suggest that currency of guides is being 
systematically tracked. With respect to our fifth recommendation that 
focuses on how DOD estimates the number of classification decisions it 
makes each year, we endorsed the department's decision to continue 
scrutinizing its components' estimates before consolidating and 
submitting them to ISOO. However, we continue to believe that OUSD(I) 
should augment its after-the-fact review with measures to ensure that 
components follow a similar process to derive their classification 
decisions estimates, such as standardizing the types of records to be 
included. Adopting a consistent methodology across the department and 
from year to year should improve the reliability and accuracy of this 
estimate that is reported to the President. 

DOD also provided technical comments for our consideration in the final 
report, which we incorporated as appropriate. DOD's formal comments are 
reprinted in appendix II. 

We are sending copies of this report to the Secretaries of Defense, the 
Army, the Navy, and the Air Force; the Commandant of the Marine Corps; 
and the Directors of the Defense Intelligence Agency, the National 
Geospatial-Intelligence Agency, and the National Security Agency. We 
will also make copies available to others upon request. In addition, 
this report will be available at no charge on the GAO Web site at 
[Hyperlink, http://www.gao.gov]. If you or your staff have any 
questions concerning this report, please contact me at (202) 512-5431 
or dagostinod@gao.gov. Contact points for our Offices of Congressional 
Relations and Public Affairs may be found on the last page of this 
report. GAO staff who made major contributions to this report are 
listed in appendix III. 

Sincerely yours, 

Signed by: 

Davi M. D'Agostino: 
Director, Defense Capabilities and Management: 

[End of section] 

Appendix I Scope and Methodology: 

To conduct our review of the Department of Defense's (DOD's) 
information security program, we met with officials and obtained 
relevant documentation from the following DOD components and 
subordinate commands: 

* Department of the Army, Office of the Deputy Chief of Staff for 
Intelligence, Arlington, Virginia; 

- U.S. Army Intelligence and Security Command, Fort Belvoir, Virginia; 

- U.S. Army Materiel Command, Fort Belvoir, Virginia; 

- U.S. Army Research, Development and Engineering Command, Aberdeen 
Proving Ground, Maryland; 

* Department of the Navy, Office of the Chief of Naval Operations, 
Arlington, Virginia; 

- Naval Sea Systems Command, Washington, D.C; 

- Naval Surface Warfare Center Dahlgren Division, Dahlgren, Virginia; 

- Naval Air Systems Command, Patuxent River, Maryland; 

* Department of the Air Force Air and Space Operations, Directorate of 
Security Forces, Information Security Division, Rosslyn, Virginia; 

- Air Force Air Combat Command, Langley Air Force Base, Virginia; 

- Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio; 

- 88th Security Forces Squadron, Wright-Patterson Air Force Base, Ohio; 

* Headquarters, U.S. Marine Corps, Arlington, Virginia; 

- U.S. Marine Forces, Atlantic, Norfolk Naval Base, Virginia; 

* Headquarters, U.S. Central Command, MacDill Air Force Base, Florida; 

* Headquarters, U.S. Special Operations Command, MacDill Air Force 
Base, Florida; 

* National Geospatial-Intelligence Agency, multiple sites in the 
Washington, D.C. metropolitan area; 

* Defense Intelligence Agency, Washington, D.C; 

* National Security Agency, Fort Meade, Maryland; and: 

* Headquarters, Defense Technical Information Center, Fort Belvoir, 
Virginia. 

The information security programs of these nine components, 
collectively, were responsible for about 83 percent of the department's 
classification decisions each of the last 3 fiscal years that data are 
available (2002 through 2004). We selected the information security 
programs of three Army, three Navy, three Air Force, and one Marine 
Corps subordinate command because they had among the largest number of 
classification decisions for their component during the fiscal year 
2002 through 2004 time period. 

To examine whether DOD's implementation of its information security 
management program in the areas of training, self-inspections, and 
security classification guide management effectively minimizes the risk 
of misclassification, we compared the DOD components' and subordinate 
commands' policies and practices with federal and DOD requirements, 
including Executive Order 12958, Classified National Security 
Information, as amended; Information Security Oversight Office (ISOO) 
Directive 1, Classified National Security Information; and DOD 
Information Security Program regulation 5200.1-R. Additionally, we 
visited the Defense Security Service Academy in Linthicum, Maryland, to 
discuss DOD training issues, and the Defense Technical Information 
Center at Fort Belvoir, Virginia, to discuss the availability of 
current security classification guides. We also met with officials from 
the Congressional Research Service, the Federation of American 
Scientists, and the National Classification Management Society to 
obtain their perspectives on DOD's information security program and on 
misclassification of information in general. 

To assess the extent to which DOD personnel in five offices of the 
Office of the Secretary of Defense (OSD) followed established 
procedures for classifying information, to include correctly marking 
classified information, we examined 111 documents classified from 
September 22, 2003 to June 30, 2005. Because the total number of 
classified documents held by DOD is unknown, we could not pursue a 
probability sampling methodology to produce results that could be 
generalized to either OSD or DOD. The September 22, 2003 start date was 
selected because it coincides with when the ISOO directive that 
implements the Executive Order went into effect. OSD was selected among 
the DOD components because it has been the recipient of fewer ISOO 
inspections than most of the other DOD components, and we expected 
comparatively greater compliance with the Executive Order since DOD's 
implementing regulation, DOD 5200.1-R, was published by an OSD office. 
We selected the following five OSD offices located in Washington, D.C. 
to sample: 

* Office of the Director of Program Analysis and Evaluation; 

* Office of the Under Secretary of Defense for Policy; 

* Office of the Under Secretary of Defense for Acquisition, Technology 
and Logistics; 

* Office of the Assistant Secretary of Defense for Networks and 
Information Integration/Chief Information Officer; and: 

* Office of the Under Secretary of Defense Comptroller/Chief Financial 
Officer. 

These five offices were responsible for 84 percent of OSD's reported 
classification decisions (original and derivative combined) during 
fiscal year 2004. According to the Pentagon Force Protection Agency, 
the office responsible for collecting data on classification activity 
for OSD, we obtained 100 percent of these five office's classification 
decisions during the 21-month time period. Two GAO analysts 
independently reviewed each document using a 16-item checklist that we 
developed based on information in the Executive Order, and feedback 
from ISOO classification management experts. [Footnote 27] GAO analysts 
who participated in the document review completed the Defense Security 
Service Academy's online Marking Classified Information course and 
passed the embedded proficiency test. 

Each document was examined for compliance with classification 
procedures and marking requirements in the Executive Order. The two 
analysts' responses matched in more than 90 percent of the checklist 
items. On those infrequent occasions where the analysts' responses were 
dissimilar, a third GAO analyst conducted a final review. We examined 
the rationale cited by the classifier for classifying the information, 
and whether similar information within the same document and across 
multiple documents was marked in the same manner. We also performed 
Internet searches on official U.S. Government Web sites to determine if 
the information had been treated as unclassified. For those documents 
that we identified as containing questionable classification decisions, 
we met with security officials from the applicable OSD offices to 
obtain additional information and documentation. 

To assess the reliability of DOD's annual classification decisions 
estimate and the existence of material inconsistencies, we compared the 
guidance issued by ISOO and the Office of the Under Secretary of 
Defense for Intelligence on methods to derive this estimate with how 
DOD components and subordinate commands implemented this guidance. We 
also scrutinized the data to look for substantial changes in the data 
estimates reported by DOD components during fiscal years 2002 through 
2004. 

To determine the likelihood of DOD's meeting automatic declassification 
deadlines contained in Executive Order 12958, as amended, we met with 
officials from the Army, Navy/Marine Corps, and Air Force 
declassification offices. We decided to focus exclusively on the four 
military services, because, collectively they were responsible for more 
than 85 percent of the department's declassification activity during 
fiscal year 2004. We also met with ISOO officials to discuss their 
evaluation of DOD's progress towards meeting the Executive Order 
deadlines. To increase our understanding of the impediments that 
federal agencies in general, and DOD in particular, face with regard to 
satisfying automatic declassification deadlines, we met with 
declassification officials from the National Archives and Records 
Administration in College Park, Maryland. 

We met with ISOO officials to discuss the assignment's objectives and 
methodology, and received documents on relevant information security 
topics, including inspection reports. 

We conducted our work from March 2005 through February 2006 in 
accordance with generally accepted government auditing standards. 

[End of section] 

Appendix II: Comments from the Department of Defense: 

Office Of The Under Secretary Of Defense 5000 Defense Pentagon 
Washington, DC 20301-5000: 

JUN 12 2006: 

Ms. Davi M. D'Agostino:
Director, Defense Capabilities and Management: U.S. Government 
Accountability Office: 441 G Street, N.W.: 
Washington, DC 20548: 

Dear Ms. D'Agostino, 

Enclosed is the Department of Defense (DoD) response to the GAO draft 
report, "Managing Sensitive Information: DoD Can More Effectively 
Reduce the Risk of Classification Errors," dated May 11, 2006, (GAO 
Code 350684/GAO-06-706). 

The Department concurs with the GAO recommendations and has provided 
comments pertaining to the technical aspects discussed in the report. 

We appreciate the courtesies extended by your staff during this audit 
and their willingness to work with the Department on these matters. If 
you have any questions, please contact Mrs. Debbie Ross, Acting Deputy 
Director for Information Security Policy, at 703-571-0261. 

Sincerely, 

Signed by: 

Robert Andrews: 
Deputy Under Secretary of Defense: (Counterintelligence and Security): 

Enclosure: 
As stated: 

cc: 

DoD OIG: 

GAO Draft Report - Dated May 11, 2006 GAO CODE 350684/GAO-06-706: 

"Managing Sensitive Information: DoD Can More Effectively Reduce the 
Risk of Classification Errors" 

Department Of Defense Comments To The Recommendations: 

Recommendation 1: We recommend the Secretary of Defense direct the 
Under Secretary of Defense for Intelligence to establish a centralized 
oversight process for monitoring components' information security 
programs to ensure that they satisfy federal and DoD requirements. This 
oversight could include requiring components to report on the results 
of self-inspections or other actions, targeted document reviews, and/or 
reviews by the DoD Inspector General and component audit agencies. 

DOD Response: Concur based on the findings of the GAO audit and the 
Department's own observations on these matters when accompanying the 
Information Security Oversight Office on oversight visits to some of 
the Defense components. 

Recommendations 2-4: We recommend the Secretary of Defense direct the 
Under Secretary of Defense for Intelligence to issue a revised 
Information Security Program regulation to ensure that: 

* Those personnel who are authorized to and who actually perform 
classification actions, receive training that covers the fundamental 
classification principles as defined in the Under Secretary's 
memorandum of November 30, 2004 and that completion of such training is 
a prerequisite for these personnel to exercise this authority; 

* The frequency, applicability, and coverage of self-inspections, and 
the reporting of inspection results are based on explicit criteria; 
and, 

* Authorized individuals can access up-to-date security classification 
guides necessary to derivatively classify information accurately. 

DOD Response: Concur. The Department has a requirement for all 
classifiers to receive training prior to exercising classification 
authority. However, we are concerned that the report does not 
accurately portray the overall Navy program for managing security 
classification guidance. The report only indicates the results of how 
some Department of Navy (DON) commands maintain their Security 
Classification Guides (SCGs). It does not address the DON's centralized 
repository of SCGs, which is maintained by the Chief of Naval 
Operations (CNO (N09N2)), Retrieval and Analysis of Navy (K)lassified 
Information (RANKIN) Program Manager. The RANKIN Program Manager also 
tracks SCGs for currency. Technical accuracy is the responsibility of 
the Original Classification Authority (OCA). The DON issues SCGs via 
the OPNAVINST 5513 series. This program was described in detail to the 
GAO Auditor team, by the RANKIN Program Manager and the recently 
departed CNO (N09N2), Information Security Policy Branch Head, yet 
there is no mention of it in the report. Also, the RANKIN Program 
Manager is working on an automated solution, to post the DON's SCGs on 
a secure network. This site will be restricted to those personnel with 
a valid need-to-know, and will be centrally managed by the RANKIN 
Program Manager. The benefit of automating the SCGs is to reduce the 
amount of time spent by derivative classifiers to obtain current SCGs, 
better facilitate currency of SCGs via the OCA, increase protection of 
information, and aid derivative classifiers in the proper 
classification of information. It is appropriate and necessary to 
include this information in the report as well. 

Recommendation 5: We recommend the Secretary of Defense direct the 
Under Secretary of Defense for intelligence to institute quality 
assurance measures to ensure that components implement the DoD guidance 
consistently, thereby increasing the accuracy and reliability of these 
estimates. 

DOD Response: Concur. The Department is already doing it with this 
iteration of data collection. 

Recommendation 6: We recommend the Secretary of Defense direct the 
Under Secretary of Defense for Intelligence to evaluate the merits of 
consolidating records eligible for automatic declassification that 
contain information classified by multiple DoD components at fewer than 
the current I4 geographically dispersed sites. 

DOD Response: Concur. The Department has advised the Information 
Security Oversight Office that we agree with this concept in theory at 
the national level. Also, the Military Departments are looking into the 
feasibility of setting up a DoD Declassification Referral Center to 
facilitate declassification reviews of records containing multiple DoD 
component equities. 

Technical Comments: 

GAO Highlights Page, 3rd Para. Replace everything after the first line 
with "of the considerable variance in how ISOO's guidance is 
implemented across the Department, and from year to year. Since 2002, 
responsibility for monitoring and assessing DoD component's data 
submission has passed between DoD and ISOO. OUSD(I) resumed 
consolidating the DoD response in 2005 to aid in identifying potential 
oversight issues. Reason: Provides correct background on this issue. 
Also, the data is not used by DoD to make resource decisions because 
DoD does not think the report provides sufficient information to do so. 

Page 6, 2nd Para, 3rd Sentence. Delete 3rd sentence and replace 
everything after the 5th sentence with "However, it has been DoD's 
practice to implement ISOO's guidance which allows each DoD component 
to determine who they should sample within their organization. This was 
also ISOO's practice when they were collecting data direct from DoD 
components during Fiscal Years 2002-2004. In fiscal year 2005, OUSD(I) 
resumed responsibility for scrutinizing the estimates of its components 
before consolidating and submitting them to ISOO for inclusion in its 
annual report to the President. Reason: Correctness. 

Page 7, 1st Para, 2nd Sentence. Add before last sentence, "It was noted 
that DoD has been one of the leading proponents in working 
collaboratively with other federal agencies to facilitate this process 
inspite of the lack of federal standards." Reason: Correct. 

Page 16, 1st Para, Last 2 Sentences. Delete. Reason: This information 
is irrelevant since these DoD components have their own training which 
may be just as adequate as the DSSA training. 

Page 20, Table 3. Last Column. For the Naval Sea Systems Command entry, 
change to "Currency of guides tracked centrally. Centralized paper 
index of paper guides maintained. Automated database being implemented 
by CNO." Reason: While they maybe behind in tracking the guides, they 
still have a system in place for central tracking and are working to 
get it current. 

[End of section] 

Appendix III: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Davi M. D'Agostino (202) 512-5431 or dagostinod@gao.gov. 

Acknowledgments: 

Ann Borseth, Mattias Fenton, Adam Hatton, Barbara Hills, David Keefer, 
David Mayfield, Jim Reid, Terry Richardson, Marc Schwartz, Cheryl 
Weissman, and Jena Whitley made key contributions to this report. 

FOOTNOTES 

[1] National security signifies the national defense or foreign 
relations of the United States. 

[2] Executive Order 12958, Classified National Security Information 
(1995) with its last amendment, Executive Order 13292, Further 
Amendment to Executive Order 12958, as Amended, Classified National 
Security Information (2003). 

[3] See title 44 United States Code, which generally defines a record 
as a book, paper, map, photograph, sound or video recording, machine 
readable material, computerized, digitized, or electronic information, 
regardless of the medium on which it is stored, or other documentary 
material, regardless of its physical form or characteristics. 

[4] The Under Secretary of Defense for Intelligence position was 
established by the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Pub. L. No. 107-314 §901 (Dec. 2, 2002)). 

[5] DOD components include the Office of the Secretary of Defense, the 
military departments, the Chairman of the Joint Chiefs of Staff, the 
Combatant Commands, the Office of the Inspector General, the Defense 
Agencies, the DOD Field Activities, and all other organizational 
entities within DOD. 

[6] Managing Sensitive Information: Departments of Energy and Defense 
Policies and Oversight Could Be Improved, GAO-06-369 (Washington, D.C.: 
Mar. 7, 2006); Managing Sensitive Information: DOE and DOD Could 
Improve Their Policies and Oversight, GAO-06-531T (Washington, D.C.: 
Mar. 14, 2006). 

[7] Transportation Security Administration: Clear Policies and 
Oversight Needed for Designation of Sensitive Security Information, GAO-
05-677 (Washington, D.C.: June 29, 2005). 

[8] Information Sharing: The Federal Government Needs to Establish 
Policies and Processes for Sharing Terrorism-Related and Sensitive but 
Unclassified Information, GAO-06-385 (Washington, D.C.: Mar. 17, 2006). 

[9] Results from nonprobability samples cannot be used to make 
inferences about a population, because the chance of being selected as 
part of a nonprobability sample cannot be predicted. 

[10] The duplication or reproduction of existing classified information 
is not derivative classification. 

[11] Information may be originally classified only by the Secretary of 
Defense, the secretaries of the military departments, and other 
officials who have been specifically designated this authority in 
writing. By DOD regulation, delegation of original classification 
authority shall be limited to the minimum required for DOD to operate 
effectively, and to those officials who have a demonstrable and 
continuing need to exercise it. 

[12] ISOO is a component of the National Archives and Records 
Administration and receives its policy and program guidance from the 
National Security Council. 

[13] 32 C.F.R. Part 2001 (2003). 

[14] Executive Order 12958, as amended, defines declassification as the 
authorized change in the status of information from classified to 
unclassified. 

[15] Records of permanent historical value are Presidential records and 
agency records that the U.S. Archivist determines should be maintained 
permanently in accordance with title 44 United States Code. 

[16] The actual number of students completing academy courses in fiscal 
year 2004 is less than 16,000 because some students completed multiple 
courses. 

[17] J. William Leonard, Director, ISOO. "The Importance of Basics," 
remarks delivered at the National Classification Management Society's 
Annual Training Seminar, Reno, Nevada, June 15, 2004. 

[18] Memorandum from Stephen A. Cambone, Under Secretary of Defense for 
Intelligence, "Minimum Training Requirements for Original 
Classification Authorities and Derivative Classifiers," Nov. 30, 2004. 

[19] Based on information provided by OUSD(I) for end of fiscal year 
2003. 

[20] The actual number of DOD personnel who completed an academy 
information security course in fiscal years 2003 and 2004 is less than 
4,775 because some personnel completed multiple courses. 

[21] GAO Human Capital: A Guide for Assessing Strategic Training and 
Development Efforts in the Federal Government, GAO-04-546G (Washington, 
D.C.: Mar. 1, 2004). 

[22] Section C2.5.3.4 of DOD 5200.1-R, Information Security Program, 
January 1997 requires original classification authorities to submit two 
copies of each approved security classification guide to the center, 
except for guides containing highly sensitive information. According to 
DOD declassification officials, less than 5 percent of the department's 
classification guides are classified at the Top Secret level, or 
contain Sensitive Compartmented Information or Special Access Program 
information. 

[23] 32 C.F.R. §2001.20 (2003). 

[24] The five OSD offices that participated in our document review did 
not participate in any of the ISOO document reviews. 

[25] 429 is derived from the formula 26 x 33 ÷ 2 = 429, where 26 
represents the number of 2-week counting periods in a year, 33 is a 
multiplier to account for those commands among the Navy's 3,960 
commands that are not counted, and 2 is a divisor to account for those 
commands that have no classification activity, such as dental clinics 
and commissaries. 

[26] Executive Order 12958, as amended, §3.3.(e)(2). 

[27] 12 of the 16 checklist items applied to originally classified 
documents, and 13 of the 16 checklist items applied to derivatively 
classified documents. 

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