oversight

2004

Published by the Farm Credit Administration, Office of Inspector General on 2004-09-30.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                            FARM CREDIT ADMINISTRATION

                        AGREED-UPONPROCEDURESREPORT:
                          FEDERAL INFORMAnON SECURITY
                           MANAGEMENT ACT EVALUAnON

                                        SEPTEMBER30, 2004




HARPER, RAJNS, KNIGHT & COMPANY, P.A.
   CERTIFIED PUBLIC ACCOUNTANTS
       RIDGELAND, MISSISSIPPI
                                            CONTENTS

                                                                 PAGE

IndependentAccountants'Reporton Applying Agreed-UponProcedures    3

]~xhibit I -Objectives, Scope and MethodoJogy                     5

]:!.xhjbjt II -OMB,   FISMA Reportjng Template                    8




                                                                   2
                                         Independent Accountant's Report
                                       on Applying Agreed-Upon Procedures


    The InspectorGeneral
    Farm Credit Administration

    We have perfonned the procedures summarized below that were agreed to by the Fann Credit
    Administration's Office of Inspector General, solely to assist you with the FY 2004 evaluation of the
    Fann Credit Administration's (FCA) security program and practices. This engagement was conducted in
    accordance with Statements on Standards for Attestation engagements established by the American
    Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility
    of those parties specified in this report. Consequently, we make no representation regarding the
    sufficiency of the procedures described below either for the purpose for which this report has been
    requested or for any other purpose.

    The system evaluations were performed in accordance with NIST Self-assessmentguide. The Office of
    Inspector General, supported by Harper, Rains, Knight & Co. P.A., the independent evaluator, determined
    the critical elements that represent essential tasks for establishing compliance with FISMA, and the
    guidelines issued by OMB, GAO, CIO Council, and NIST for each control category, including:

            documentedsecuritypolicies;
            documentedsecurityprocedures;
            implementedsecurityproceduresand controls;
            testedandreviewedsecurityproceduresandcontrols;and
            fully integratedsecurityproceduresandcontrols.
    For eachcontrolcategory,the evaluatordeterminedthe associatedobjectives,risks, and critical.activities,
    as well as related control techniquesand evaluationconcernsspecificto FCA's information technology
    environmentthrough:

            Review of informationsecuritypolicies and procedures;
            Inquiries ofFCA personnel;
            Observationof systemaccesscontrols;
            Review of systemdocumentationincluding securityplans,softwarechangerequestsand
            approvals,securitylogs and audittrails.
    We used the requirementsand criteria found in GAO's Federal Information SystemControls Audit
    Manual (FISCAM), OMB Circular A-130, Appendix III, "Security of FederalAutomated Information
    Resources,"currentNIST guidance,andthe CIa Council Frameworkto performour evaluation.

    In our evaluation we considered the following mission critical systems:

            Federal Financial System (FFS)
            PersonneJ/Payrol,JSystem
            Consolidated Reporting System
            Windows 2000 Network
            Lotus Domino (Notes)

                            Harper, Rains, Kniaht &..Company, P.A. .Certified   Public Accountants. Consultants
                                                                                                                          3
                    One Hundred Concourse. 1052 Hiahland Colony Parkway, Suite 100 .fudaeland,        Mississippi 39157
                                 Telephone 601.605.0722     .Facsimile 601.605.0733     .www.hrkcpa.com

.
The Inspector General
F'ann Credit Administration -continued


Our proceduresdid not revealany information securitycontrol mattersthatwe deemedto be significant
deficienciesthat mustbe reportedunderFISMA. The resultsof our infoTmationsecurityprogramand
practicesevaluationare summarizedin Exhibit II.

We were not engaged to, and did not conduct an examination, the objective of which would be the
expression of an opinion on the Farm Credit Administration's security program and practices.
Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you.




                                                                                                    4
Exhibit I -Objectives, Scope and Methodology

llle Office of Inspector General, supported by a contract with Harper, Rains, Knight & Co. P.A.,
perfonned an independentevaluationof the Fann Credit Administration's(FCA or Agency) infonnation
securityprogramandpracticesfor FY 2004.

A..   General   Overview


      FCA is an independent agency in the executive branch of the U. S. Government. ]t is responsible for
      the regulation and examination of the banks, associations, and related entities that collectively
      comprise what is known as the Farm Credit System (System); FCA promulgates regulatjons to
       implement the Farm Credit Act of 1971, and examines System institutions for compliance with the
      Act, reguJatjons,and safe and sound banking practices.

      FCA has less than 300 employees. The Agency headquarters are in McLean, Virginia. It has field
      examination offices in McLean, Virginia; Bloomington, Minnesota; Dallas, Texas; Denver, Colorado;
      and Sacramento, California.


B Mission Critical Systems
      FCA is a single program agency with five mission critical systems. Mission critical systems are
      defined as any telecommunications or information system used or operated by an agency or by a
      contractor of an agency, or organization on behalf of an agency that processes any information, the
      loss, misuse, disclosure, or unauthorized access to or modification of, would have a debilitating
      impact on the mission of an agency. In FYO4 and FYO3, all mission critical systems were evaluated.

      In accordance with the Federal Information Security Management Act (FISMA)              and OMB's
      implementation guidance, we evaluated the following mission critical systems.

           Major Applications
          a     FederalFinancial System(FFS)
                FFS is the major application that supports all FCA core accountingfunctions including
                budgetexecution,accountspayable,disbursements,purchasing,travel, accountsreceivable,
                generalledger, documenttracking, project cost accounting,and externalreporting. FFS is a
                mainframe computerfinancial managementsystem.FFS is processedby the United States
                Geological Survey (USGS)/NationalBusiness Center(NBC), and American Management
                Systems, Inc. (AMS). The FFS software is owned and maintained by AMS. AMS is
                responsible for providing developmentactivities including regular upgrades,fixes, and
                requestedenhancements   to maintainthe core FFS software.NBC personnelare responsible
                for defining and developingprocessesto retrieve or receive data from externalsourcesto
                develop correspondingprogramsthat enableFFS to load the data accordingly.FCA' s FFS
                securityadministrator,locatedin the Office of Chief FinancialOfficer (OCFO)is responsible
                for managingsecurityaccesscontrol to the FFS agencyapplication.The FFS was placed in
                productionin June2001.

           b. Payro]] Servicesfrom National FinanceCenter(NFC)

                USDA's National Finance Center (NFC) located in New Orleans, Louisiana provides the
                Personnel/Payroll System (PPS) to FCA. The NFC provides distributed application and
                telecommunications support for the remote site located in McLean, Virginia. NFC developed
                a "master security plan" for the general support system in New Orleans. FCA's Office of the
                Chief Administrative Officer (OCAO) maintains a security plan for the remote system at
                FCA that incorporates provisions of the master security plan.
                                                                                                         5
                c.   ConsolidatedReportingSystem(CRS)

                     CRS is a major application that supports FCA operations. CRS is an Oracle re.]ational
                     database containing financial and statistical information on active and inactive Farm Credit
                     Institutions. CRS contains three distinct subsystems that are Can Report, Loan Account
                     Reporting System (LARS), and Web-based CRS Reports:

                     .   Call Report is comprised of financial information including a statementof condition,
                         statementof income,and supportingschedulesthat is collected quarterly from the Farm
                         Credit System(FCS) Institutions. Call Report subsystemis monitored, analyzed, and
                         assessedby FCA examiners and financial analysts to ensure that the integrity and
                         confidentialityof financialdataaremaintained.

                         LARS databasecontains specific loans of Farm Credit System (FCS) Lender Institutions.
                         Institutions submit the data quarterly to the FCA via diskette or zip file. The loan data are
                         loaded using SQLLoader, and are then verified and va.Jidatedby FCA personnel.

                         Web-based CRS Reports is an FCA developed application using the JavaScript front-end
                         interface and an Oracle databaseback-end application. The reports are bui1t via using e-
                         Reporting Suite, and are availab1e on the FCA's Web site. The Freedom of Jnformation
                         Act (FOJA) versions of the reports are available to the public. The non-FOJA versions of
                         the reports are available to userswho are authorized to view their institution data.


                Missjon Critic a] Genera] Support Systems

                a. Windows2000

                     Windows 2000 is an operating system or the core program of a computer that allows the other
                     programs and applications to operate. Windows 2000 is fully integrated with networking
                     capabilities and was designed for client/server computing to facilitate user workstation
                     connections to servers and the sharing of information and services among computers.

                     Wjndows 2000 Server is the prjmary operating system insta]}ed on substantia]}y a]} servers in
                     the FCA network. Addjtiona]}y, Windows 2000 and XP are insta]}ed on agency laptop and
                     desktop computers where they function as a client to the FCA network as we]} as a stand-
                     alone operating system for the cljent hardware. Through Windows 2000/XP, users can access
                     network services such as file servers, e-mail, the Internet, applications and shared hardware
                     such as printers.

                     Lotus Domino (Notes)

                     Lotus Domino (Notes)applicationis databasesystemsoftwareownedandmaintainedby the
                     FCA. The applicationsupportsthe daily administrativetasksincluding e-mail, group
                     discussion,calendaringand scheduling,databasemanagement,   forms, and workflow of FCA.

        c.   Methodology
             The systemevaluationswere performedin accordancewith NIST Self-assessment    guide. The Office
             of InspectorGeneral,supportedby Harper, Rains, Knight & Co. P.A., the independentevaluator,
             determined the critical elements that representessentialtasks for establishingcompliance with
             FISMA, and the guidelinesissuedby OMB, GAO, CIa Council, and NIST for eachcontrolcategory,
             including:
                     documentedsecuritypolicies;
                     documentedsecurityprocedures;
                     implementedsecurityproceduresandcontrols;
                     testedandreviewedsecurityproceduresandcontrols;and
                     fully integratedsecurityproceduresandcontrols.
                                                                                                                    6


....
b.
2.  .
For each control category, the evaluator determined the associated objectives, risks, and critical
ac1:ivities,as well as related control techniques and evaluation concerns specific to FCA's information
tec;hnology environment.

The evaluation was conducted in accordance with the requirements and criteria found in GAO's
FISCAM, OMB Circular A-J30, Appendix III, "Security of Federal Automated Information
Resources," current NlST guidance, the CJO Council Framework. We used this information to
ev::lluate FCA's practices and addressedthe above five control areasto be considered in determining
colmpliance with FJSMA. For each critical element, the evaluator made a summary determination as
to the effectiveness of FCA's related controls. If the controls for one or more of each category's
critical elements were found ineffective, then the controls for the entire category are not likely to be
effective. The evaluator exercised its professional judgment in making such determinations.

The evaluation focused on the actual performance of the Agency's security program and practices and
not on how the Agency measures its performance in its own annual evaluations. The Agency's
se(;urity controls were evaluated for programs and practices including testing the effectiveness of
se(;urity controls for Agency systems or a subset of systems as required. The evaluator performed
FI:SMA evaluations in accordance with Federal guidance, e.g., NIST Self-Assessment Guide for
Inj~rmation Technology Systems.

Our procedures did not reveal any information security control matters that we deemed to be
si!!~ificant deficiencies that must be reported under FISMA.

During FY 2004 FCA OIG performed an inspection of the Office of the Chief Financial Officer" s
project management practices over two information systems that are currently in the implementation
phase. That inspection revealed several weaknessesthat OIG has communicated to management in a
separate report. We considered OIG's findings during this evaluation and determined that they do not
indicate significant deficiencies that must be reported under FISMA. However, OIG's findings are
indicative of reportable conditions that OCFO must address in a POA&M.




                                                                                                      7
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          0.2. Answer Yes or No, and then evaluate the degree to which the configuration requirements                      address the patching       of security vulnerabilities.        If
          appropriate or necessary, include comments in the Comment area provided below.




                                                                                                                                       Yes
                                                                                                                                                         Almost Always, or 96-
                                      a. Windows XP Professional
                                                             --                                                                         Yes              100% of the time
                ,                     b. Windows NT                                                                                               -Almost         Always,      orOO=-
              ~c~
                                                                                                                                        Yes              100% of the timeIC_.-AI-;~;AI~-;~~,-~;-96~,

                                      c. Windows 2000 Professional
                                                                                                                                                         100%    of the time
                                                                      -                                                                -Y~~-
                               "
                                      d. Windows 2000
                       "       -..'                            0-    ,,'                                                                N/A                                          ~-
                                                                                                                                                         Almost Always, or 96-
                                      e. Windows 2000 Server,',:';
                                                                                                                                        Yes              100% of the time
                           "                            -
                                      f. Windows 2003 Server
                "--   .;                              -                                                                                 N/A

                                      g. Solaris
                                                                                                                                        NfA

                                      h. HP-UX
                                                                                                                                        N/A

                                      i.   Linux
                                                                                                                                        N/A

                                      j. Cisco Router 10S                                                                               Yes       '- --*~~~r96~                            .
                                                                                                                                              I

                                                                                                                                        Yes       I      100%    of the time

                                                                                                                                        N/A



                    D.2. Do the configuration requirements implemented above in D.1.a-f., address patching of                                            Almost Always, or 96-
                    security vulnerabilities?                                                                                           Yes              100% of the time

     Comments:
     Workstations connected to FCA's network utilize either Windows 2000 or XP as their operating systems. FCA OCIO has developed specific security
     configurations that are applied to the workstations before they are delivered to the user. The configurations include local security policies that aid in
     protecting the workstation from unauthorized users and that prevent authorized users from making major changes to the operating system. Another
     example is a domain system policy that prevents the user from accessing or modifying the registry. OCIO system administrators        have considered the
     Windows 2000 and XP configuration guidelines contained in NIST SP 800-43 and 800-68 and modified those configurations based on FCA specific
      environmental        considerations.
      Windows 2000 Server is the primary operating system installed on substantially all servers in the FCA network. Cisco is the primary supplier of
      routers and switches used in FCA's network. FCA OCIO has developed specific security configurations for its network equipment using baseline
      security measures from vendors and others sources and modified them for FCA specific environmental factors.

      FCA maintains an active program for identifying and remediation of security vulnerabilities.    A cornerstone of the program is a Lotus Notes database
      utilized by OCIO for collecting information on announced security vulnerabilities relating to the hardware and software currently in use at FCA. The
      database also facilitates tracking of the status of efforts to patch the vulnerabilities. FCA aGiO monitors several sources for vulnerabilities including
      vendor and US CERT bulletins.      Identified vulnerabilities are posted to the Notes database and appropriate staff is assigned to take necessary
      actions. Required patches are pushed to all workstations using system management software. Additionally, FCA utilizes automated methods to
      ensure that current updates to its anti-virus software              are installed on its servers and workstations.




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