Information on High Risk Areas 41.1. Updating high risk areas. Information on high risk areas is required for oversight and review of agencies' actions to correct weaknesses or deficiencies and to determine funding levels. Agencies should prepare the required information based on the high risk area list in the latest annual budget and the most recent information provided to OMB on correcting high risk areas. If agencies believe that management initiatives should be added to the high risk list, they should contact their OMB representative. (a) Materials required.--Agencies with high risk areas on the OMB list are required to submit the information described below on high risk activities for CY and BY. Additional information may also be required by OMB representatives. An original and two copies of a schedule providing the following information are required, in the format of exhibit 41, for CY and BY: --the title of the high risk area; --the size of the program affected by the high risk area; --a brief description and, where possible, a quantification of the amount "at risk" (as defined below); --the "management investments" or funding levels for actions to correct high risk areas; and --a narrative explanation for the CY funding level and a narrative justification for the BY amounts. The schedule is required to be submitted by September 9. (b) Definitions.--Agencies will identify the program size, which may be the appropriation or funding level for the program as a whole, or for the system or inventory affected by the high risk area. For example, for the high risk area "Medicaid Management Systems", the program size is the appropriation for the Medicaid program; for "DOD Departmental and Service Contract Administration Controls over DOD Property in Private Contractor Possession", the program size is the estimate of Federal property in possession of DOD contractors. Agencies will also describe the effect of the high risk problem on the Federal government, including, where possible, quantification of the amount "at risk", (i.e., the potential dollar loss associated with failure to address the high risk area), and a description of the methodology used to develop the "at risk" amount. There is no standard methodology for computing amounts "at risk". Ideally, agencies should report the value of the Federal resources at risk, or a range or order of magnitude of the risk, if appropriate (see exhibit 41). The schedule will identify management investments or funding included in budget estimates for corrective actions in the high risk areas. For reporting purposes under this section, management investments are the critical, marginal funding levels needed to ensure that program funding is spent efficiently and effectively. The schedule should list by title and identification code (see section 20.3) the accounts that fund these management investments and the budget authority associated with each account.