“This report provides statistics and analysis of the system of classification and declassification based on ISOO’s review of Departments’ and Agencies’ programs, including agency self-reporting. It also contains information with respect to industrial security in the private sector as required by Executive Order 12829, as amended, “National Industrial Security Program.” This year, we have incorporated our cost report on security classification activities into this consolidated annual report. Overall, reported costs for Government and industry combined are $10.96 billion. This is a decrease from last year of $1.66 billion, or 13 percent. Agencies completed the first executive branch-wide Fundamental Classification Guidance Review in FY 2012, a major investment in combating over-classification and limiting secrecy to only that information truly necessary to protect the national security. Twenty-five agencies with original classification authority conducted comprehensive reviews of their classification guidance, streamlining and consolidating 3,103 classification guides, to reflect current circumstances. ISOO also completed its five-year on-site assessment of agency declassification programs. This oversight and assistance program garnered significant measureable improvements in the quality of declassification reviews conducted by departments and agencies across the executive branch. ISOO will continue its assessment program in a form that sustains this high level of quality. ISOO continues to develop and refine its ability to monitor agency efforts at self-assessment. For two years we have worked vigorously to help agencies improve the coverage and quality of their self-inspection programs, as required by the Order. ISOO’s analysis of these efforts also contributes to the White House Senior Information Sharing and Safeguarding Steering Committee’s annual report to you.”