“This report provides statistics and analysis of the system of classification and declassification based on ISOO’s review of Departments’ and Agencies’ programs. It also contains the status of agency self-assessment reporting, the cost of security classification activity, and the National Industrial Security Program. I have also incorporated the required annual report on the development of the Controlled Unclassified Information program into this report. ISOO fulfills Executive Agent (EA) responsibilities for the Controlled Unclassified Information (CUI) Program, which were designated by Executive Order 13556 to the National Archives and Records Administration. During the past year, as EA, ISOO successfully advanced its policy development strategy, worked with the Office of Management and Budget to issue guidance for the Executive branch on submission of information types as CUI categories, established a CUI Advisory Council to improve consultative functions, and is currently completing a draft implementing directive. When the directive is incorporated into the Code of Federal Regulations, the EA plans to issue a National Implementation Plan for the Executive branch, providing a timeline detailing phases of implementation for all agencies. With regard to its oversight of Classified National Security Information, ISOO continues to develop and refine its ability to monitor agency efforts to perform self-assessment of their classified information programs. The agency self-inspection reports were much more responsive in this, the third year of detailed reporting required by E.O. 13526. This improvement is due, in large part, to the use of a new reporting form. Further improvement is needed in the quality of the reports from some agencies. ISOO will continue to use the self-inspection reporting process and its on-site assessment authority to prompt agencies to evaluate and improve their classified national security information programs. The Interagency Security Classification Appeals Panel continued adjudicating declassification appeals and posting the decisions on a publicly available website. The growing collection of over 250 documents now online fulfills the Order’s requirement that the Panel inform senior agency officials and the public of its decisions on mandatory declassification review appeals and classification challenges. This tool also helps agencies to conduct more consistent and accurate declassification reviews. The National Industrial Security Program Policy Advisory Committee (NISPPAC) made meaningful improvements in the areas of personnel security clearances and certification and accreditation of information systems. The NISPPAC continues to ensure the requirements for the protection of classified information by the private sector are consistent with those established by the Order. ISOO continues its role on the Senior Information Sharing and Safeguarding Steering Committee, leading efforts to incorporate the requirements of the National Insider Threat Policy, and related responses to unauthorized disclosures, into the National Industrial Security Program policy and guidance.”