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Evaluating the Acquisition and Operation of Information Systems

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Evaluating the Acquisition and Operation of Information Systems United States General Accounting Office Information Management and GAO Technology Division July lYS6 Evaluating the Acquisition and Operation of Information Systems Technical Guideline 2 Preface The federal government is becoming increasin ly dependent on information technology to meet its mission an cf program goals, presentin new challenges for the audit community. Collective 7 y, the government is the single largest user of information technology in the world and spends billions of dollars annually on its information resources--hardware, software, data, and people. This growing reliance on information technology emphasizes the need to economically acquire, develop, operate, and maintain information resources to effectively and efficiently achieve a ency mission and objectives. The Information Management and f ethnology Division (IMTEC) is the General Accountmg Office’s (GAO) focal point for evaluating how well the government manages its substantial investment in information resources. This guide provides GAO and IMTEC staff, as well as other interested officials in the federal audit community, with a logical framework for evaluating government agencies’ ac uisition and operation of computer-based information systems. i!t is structured around a matrix that outlines two broad information system life cycle phases--acquisition/development and operation/ maintenance--as they relate to five basic ob ectives, As described in the guide, agencies should achieve the fo1 lowing objectives in acquiring and operating their information systems: l Ensure system effectiveness. l Promote system economy and efficiency. l Protect data integrity. l Safeguard information resources. l Comply with laws and regulations. The guide also provides general criteria for evaluating agencies’ performance in achieving these objectives by hi hlightin key practices that should occur during the system li I?e cycle. l! he appendix is a convenient reference to the most si ificant laws, regulations, and standards that affect the federa $ information processing environment. This guide supplements and does not replace any other GAO policies or procedures. It may be updated as necessary. Page 1 Evaluating the Acquisition and Operation of Information Systems Preface I hope that IMTEX staff and other users of this guide will find the framework resented here beneficial in performing their work. It should heP p us meet the audit challenge of ensunng that federal policies and procedures foster good information management, and that agencies maximize the return on their information technology investment. &PDirector, &formation Management and Technology Division . Page a Evaluating the Acquisition and Oparath of Information Systems Contents Preface Chapter 1 Role of the Guide in Organization and Content of the Guide Information System Using the Guide Evaluations - Chapter 2 Information System Definition Underlying Concepts Information System Life Cycle The Five Basic Objectives - Relationship Between the Life Cycle and the Five Basic Ob’ectives Agency Practices to A thieve the Five Basic Objectives Chapter 3 16 Environmental Practices La Foundation for 16 System Acquisition/ Meeting the Five Basic 0 ii jectives Development- Strategic ADP Management Practices 16 Practices to Meet the Tactical ADP Mana ement Practices Five Basic Objectives Specific Practices Aid in s valuating Acquisition/ :i Development Pro’ects Requirements iI efinition 20 Analysis of Alternatives Acquisition Process ;oo Software Engineerin 21 Environmental and Speci fBlc Practices Help 21 Achieve the Five Basic Objectives Ensuring System Effectiveness 21 Promoting Economy and Efficiency Protectin Data Integrity i: Safeguar d ing Information Resources 25 Complying with Laws and Regulations 25 Page 3 Evaluating the Acquisition and Operation of Information Systams Contents Chapter 4 System Operation/ Environmental Practices Help Agencies Achieve the Five Basic Objectives Maintenance- Data Center Operations Practices to Meet the Ca acity Management Five Basic Objectives Te Pecommunications Management Data Center Security Spe&fi;i&ces Focus on Individual Application Application Control Framework Environmental and Specific Practices Help :: Achieve the Five Basic Objectives Ensuring S stem Effectiveness Promoting H conomy and Efficiency Protectin Data Integrity Safeguar f ing Information Resources Complying with Laws and Regulations Chapter 5 Crosswalk to Linkage Between the Guide and GAO’s Job 2 Management Framework Additional Guidance Linkage Between the Guide and Available Criteria 41 A pendix 42 T/fe Compliance Laws, Regulations, and Directives OMB Circulars ii Objective--Key Laws, GAO Standards 46 Regulations, and Federal Information Processing Standards 48 Standards Publications VIPS PUBS) Tables Tab .e 2.1: Ke Activities in the Information 10 )ystem Li tye Cycle Tad .e 2.2: Relationshi Between the Five Basic 13 Objectives and the % formation System Life Cycle Tad .e I. 1: Key Laws, Regulations, and Directives- 44 1telationship to the Other Information lystem Objectives Tab .e 1.2: Key OMB Circulars and GAO Standards-- 47 1lelationship to the Other Information lystem Objectives Tai .e 1.3: Key FIPS PUBS--Relationship to the 51 4kher Information System Objectives Page 4 Evaluating the Acquisition and Operation of Information Systems Contents Figures Figure 2.1: Structure of the Guide--Chapters 3 and 4 Show Relationship Between Key Practices and the Five Basic Objectives Abbreviations ADP automatic data recessing DOD De artment of 8 efense PIPS PUBS Fe Bera1 Information Processing Standards Publications FIRMR Federal Information Resources Management Regulation GAO General Accounting Off&e IMTEC Information Management and Technology Division NSDD National Security Decision Directive OMB Office of Management and Budget Page 5 Evaluating tha Acquisition and Operation of Information Systems Chapter 1 Role of the Guide In Information System Evaluations As the focal point for the General Accounting Offrice’s (GAO) data recessing and telecommunications work, the Information K anagement and Technolo Division (IMTEX) evaluates policy, management, and teeBK nology issues on an agency-specific and a governmentwide basis. Auditing system acquisitions and operations at individual agencies consumes the bulk of IMTEC’s staff resources and lays the foundation for identifyin and assessing governmentwide issues and problems. I M#E C’s primar goal in performing this work is to determine if a encies are ma %ing sound managerial, technical, and economica f decisions in acquiring and using automated systems. To help achieve our goal, this guide provides a logical framework for evaluating system ac uisitions and operations. More specifically, it is intende %to l direct and focus IMTEX’s agency-specific work; l guide staff in defining, planning, and communicating audit objectives; and l provide a consistent structure for developing governmentwide issues. While the guide does not describe in detail the exact tasks required to perform an audit, it does provide arameters for our work by (1) defining objectives agencies shouP d achieve in acquiring and operating computer-based systems and (2) highlighting some key criteria for measuring agency performance in meeting the objectives. Organization and The chapters of the guide follow a logical sequence--from broad Content of the Guide concepts and management issues to more specific system life cycle phases and the respective agency practices that should be in place. Following this introductory chapter, chapter 2 describes some fundamental concepts that form the backbone of this guide: our definition of a computer-based system and its life c cle; a description of the five basic objectives that agencies si!i ould meet in acquiring and operating these systems; and a definition of the key categories of practices, or internal control techniques, that are important to achieving the five objectives. The remaining chapters show the relationship between the life cycle phases and each of the five objectives, highlighting key Page 6 Evaluating the Acquisition and Operation of Information Syster C hapkr 1 Role of the Guide in Information System Evaluations practices that should be performed. Chapter 3 provides an overview of the system acquisition/development life cycle phase and the practices needed to meet each of the five basic objectives, while chapter 4 provides similar information on the system operation/maintenance life cycle phase. The final chapter links the guide to GAO’s job planning and management process and to available criteria. Using the Guide We intend for this guide to be used primaril by GAO staff responsible for auditing data recessing an B telecommunications issues at specific agencies an cracross the government. However, it may also prove useful to individuals outside GAO, including a ency internal audit staff, inspectors general staff, and ef ectronic data processing managers and personnel involved in developing and operating information systems. The guide provides broad parameters for determining whether computer-based systems meet or will meet five basic objectives. It familiarizes auditors with the various phases of the life c cle process and allows flexibility for zeroing m on the ap licab r e life cycle phase of the system under review. This guide sft ould be particularly useful early in the audit process, in establishing audit objectives, identifying potential problem areas, and determining the scope and extent of more detailed audit work. Pam 7 Evaluating the
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