FINAL+EXAM+REVISED

LTMS 530 Final Exam Angela Rupert 1. What does the acronyms RFI and RFP stand for? Please explain the process of the RFP and give 3 reasons why the RFP process is important. (30 points) **Request for Information (RFI ) and Request for ****  Procurement(RFP) ** are often associated with the vendor bid process for project budgeting. Typically the RFI is used before the RFP.  A RFI is an** informal ** document, similar to an outline for an essay. Its purpose for the project manager is to ** request information ** from vendors in order to receive requirements for a project’s implementation. Often, a RFI is used as a discovery document to help assess the project requirements for both buyer and seller. For smaller projects, sometimes the RFI may only document used in the bid process. A RFI is not a legal binding contract.  ** RFQ/RFP ** Request for Proposals(RFP) or Request for Quotes(RFQ) are more formal documents then RFI’s and are often created after the RFI phase. Often they require authoring from project officers with specialized certifications and may have some legal binding consequences if poorly defined. RFP’s typically include the following: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Project goals and objectives <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Project Requirements <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Timelines <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Evaluation Methods <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo2; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Pricing Templates <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> **<span style="font-family: Arial,sans-serif; font-size: 12pt;">The RFP process is very important for the following reasons: ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l10 level1 lfo18; text-indent: -.25in;">**<span style="font-family: Arial,sans-serif; font-size: 12pt;">1. ****<span style="font-family: Arial,sans-serif; font-size: 12pt;">The buyer is often able to negotiate a better price due to the competitive nature of the RFP process ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">** <span style="font-family: Arial,sans-serif; font-size: 12pt;">2. Increases accuracy by carefully analyzing the project components ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">** <span style="font-family: Arial,sans-serif; font-size: 12pt;">3. Helps us prioritize our requirements ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">** <span style="font-family: Arial,sans-serif; font-size: 12pt;">4. Enables us to define each step more clearly  ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="font-family: Arial,sans-serif; font-size: 12pt;">5. Breaks down the timeline and milestones **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="font-family: Arial,sans-serif; font-size: 12pt;">6. Dissects the pricing structure to analyze ways to cut costs **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="font-family: Arial,sans-serif; font-size: 12pt;">7. Prepares for the contract phase **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">The RFI process is important because: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Can get a ** ballpark price **relatively quickly <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Project cost **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> might be more than anticipated, project could be dropped! <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Vendor doesn’t lose big money calculating a custom estimate <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Can indicate whether there is a lot of ** competitive interest ** for the project <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">May be able to get a better idea of how the timeline is going to pan out <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Prepares the vendor **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> for an actual RFP <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l11 level1 lfo3; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Vendor selection criteria may be too stringent <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Typically, vendors will require some of the following information in their RFI. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Introduction <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">RFI purpose <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Response Guidelines <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Background <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Timeline <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l16 level1 lfo4; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Vendor selection criteria <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;"> In return, project managers usually request the following information from the vendor <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Contact information <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Experience <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">References <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Project Outline <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Components <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Documentation proposals <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Training requirements <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l0 level2 lfo5; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">maintenance service requirements (if any) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">**<span style="color: black; font-family: Arial,sans-serif;">The Budgeting Process is usually done annually and typically begins 2 to 3 weeks before the fiscal year. Most companies base it on the previous year’s spending and calculate the current company needs by department. ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">**<span style="color: black; font-family: Arial,sans-serif;">The budgeting process works like this: ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Review Previous Years Budget <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Track Items <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Personnel <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Staff Compensation (Salary, bonus, overtime, etc) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Benefits <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Recruiting(AGENCIES, ADS, ETC) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Bonuses/Training <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Education/training <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Consultants/temporary help <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Hardware <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Upgrades <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Maintenance and Support <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">New Equipment <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Leases/Rentals <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Replacement Components <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Software <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">New Software (applications, operating system, utilities, etc.) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Maintenance and Support <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Upgrades <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">License renewals <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Telecommunication services <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Dial up services <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Service Fees <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Leased Items <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Frame Relay <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">ISP services <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Supplies <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Printer consumables (paper toner) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Miscellaneous cables <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Basic office supplies <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Travel and Entertainment <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Conferences <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Off site travel to branch offices and new sites <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Miscellaneous <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Books and subscriptions <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Membership dues for professional organizations <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Postage <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Depreciation <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Hardware <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Software <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Physical Plant <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Furniture <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">

<span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Consultants <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Overhead <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Telephone <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Rent <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Utilities <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Reviewers for Budget <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">By Upper Management <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">By IT Staff <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Overestimate budget by a certain degree <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Gives room to cut if you need to reduce spending <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Gives room for unanticipated expenses <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Increases likelihood that you will be in budget by end of year (great for bonus structure) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Defending budget approval <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Explain why needing something will help achieve objective and that the objective is important <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Steer clear from tech talk <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Explain the consequences for budget rejections <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Tracking and Revising Budget <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Check monthly report for accuracy and errors <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Categories on Monthly Report <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Budgeted amount <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Actual amount for the month <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Actual amount year to date <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Variance against budget (over/under) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Variance against last year <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Revising Budget (Updates) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">One or two opportunities during the year (not always) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Include projects that weren’t expected during the initial budgeting process <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Eliminate or reduce cost for budget that were scaled down <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Update estimates based on other changes (vendor prices, expansion, size of project, etc) <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif; font-size: 12pt;">Demonstrate anticipated cost reduction <span style="color: black; font-family: Arial,sans-serif;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="color: black; font-family: Arial,sans-serif;">Reviewers for your budget-It should be your vice president or the director. You want as many eyes and minds involved with your budget as possible. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Estimating (and Overestimating) your numbers <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Overestimating <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Gives you more room to cut if upper management asked to reduce spending. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">It gives you room for those unanticipated expenses that invariably crop up. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">It increases the likelihood that you’ll be within budget for the year, which could be a critical factor in determining your bonus or merit increases. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> **<span style="color: black; font-family: Arial,sans-serif;">Getting Approval **<span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Summaries are a general practice and give a high level overview of your budget to your superiors using more words than numbers talk about how any cuts would cause the problems. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> **<span style="color: black; font-family: Arial,sans-serif;">Track and Revising the budget **<span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Budgeted amount <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Actual amount for the month <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Actual amount year-to-date <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Variance against budget (an over/under amount indicating how well you are doing compared to the expected amount based on your original budget). <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Revising the budget <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Include projects that weren’t expected during the initial budgeting process. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Eliminate or reduce costs for projects that were cancelled or scaled down since the initial budget was proposed. <span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="color: black; font-family: Arial,sans-serif;">Update budget <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">2. <span style="font-family: "Arial","sans-serif";">What is the difference between a capital expenditure and an operating expense? (20 points) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Budgets are typically calculated annually and are generally broken down into two different categories. Capital expense and operational expense are treated as two very different creatures in the accounting process. Capital expenditures are items that are typically tangible and depreciate slowly over time. Operational expenses are recurring expenses that keep the daily operations of the business running. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;">** <span style="font-family: Arial,sans-serif; font-size: 12pt;"> Capital Expenditure Details: ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Certain hardware and other items with short life are accounted for a little differently in some companies. A professional grade projector may depreciate more quickly than an executive desk. Some companies will pay the full price of the projector, but distribute the value over the expected life of the equipment. For example, the projector might cost $7000 and has a life expectancy of 7 years. Each year, the capital expenditure cost report will impact the books by $1000 for the following seven years. Spreading out the costs over a longer period of time is a way for companies to access much needed equipment yet stay within budget. The following lists some examples of capital expenditures included in a budget. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Furniture Copiers <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Building (if owned) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Hardware <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Software <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Furniture <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Equipment <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Servers <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Routers <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Switches <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Hardware <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Software <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Licenses <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l9 level1 lfo6; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Copier <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;">**<span style="font-family: Arial,sans-serif; font-size: 12pt;">Operational expenditures **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> are operational cost to run the business and are typically the largest portion of the annual budget. Operational expenditures feature items that recur monthly or value is short term. Salary, maintenance and utilities come to mind most often when discussing operational expenditures. The advantages of calculating most operational cost are that they are recurring. Typically operational expenditures can be determined by the previous year’s actual budget. Company budgets calculate costs periodically in a monthly, quarterly or annual schedule. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Not all operational expenditures are recurring. Implementation of a customer service training program, tuition and implementation costs of internally created interpretive media shorts are an example. Here are some additional examples: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Salaries <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Benefits <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Professional Organizations <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Telecommunication <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Consultants <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Service Contracts <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Tuition <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Internet Leases <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Interest <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Copier paper <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Ink <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Cleaning supplies <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Lawyer expenses <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Travel Office supplies <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Utilities <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Insurance <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Maintenance repairs <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l13 level1 lfo7; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Marketing <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">3. <span style="font-family: "Arial","sans-serif";">What is the most expensive line item in most budgets? (20 points) <span style="font-family: "Arial","sans-serif";">Operational expenditures are typically more expensive then capitals expenditures. The largest line item is compenstion(payroll). <span style="font-family: "Arial","sans-serif";">This includes <span style="font-family: "Arial","sans-serif";">Salary <span style="font-family: "Arial","sans-serif";">Benefits <span style="font-family: "Arial","sans-serif";">Bonuses <span style="font-family: "Arial","sans-serif";">Training <span style="font-family: "Arial","sans-serif";">Tuition reimbursements <span style="font-family: "Arial","sans-serif";">Health/medical insurance <span style="font-family: "Arial","sans-serif";">Consultant fees <span style="font-family: "Arial","sans-serif";">Service technicians <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">4. <span style="font-family: "Arial","sans-serif";">Explain the two benefits of Time and Materials contracts and also two benefits of a fixed price contract. (20 points) <span style="font-family: "Arial","sans-serif";"> <span style="font-family: "Arial","sans-serif";">Time and Materials Contract are alternatives to maintenance contracts. <span style="font-family: Arial,sans-serif;">1. <span style="font-family: "Arial","sans-serif";">Only billed for when you need a service call <span style="font-family: Arial,sans-serif;">2. <span style="font-family: "Arial","sans-serif";">Can save money by forgoing hardware maintenance contracts <span style="font-family: "Arial","sans-serif";">Fixed Price contract <span style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;">** <span style="font-family: "Arial","sans-serif";">Benefits: ** <span style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l1 level1 lfo16; text-indent: -.25in;"><span style="font-family: Arial,sans-serif;">1. <span style="font-family: "Arial","sans-serif";">Vendors give greater priority calls <span style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l1 level1 lfo16; text-indent: -.25in;"><span style="font-family: Arial,sans-serif;">2. <span style="font-family: "Arial","sans-serif";">Convenient for costly repairs <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">5. <span style="font-family: "Arial","sans-serif";">Explain three reasons for an Acceptable Use Policy (AUP) and list the important components of an AUP. (25 points) <span style="font-family: Arial,sans-serif; font-size: 12pt;">Over the past decade, government ** security ** and ** privacy **policies have had an overhaul. ** Acceptable Use ** policies were more clearly defined. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level1 lfo19; text-indent: -.25in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">1. ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Personal identifying information **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> such as medical, financial and school records must be signed by users when checking them out in the workplace. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level1 lfo19; text-indent: -.25in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">2. <span style="font-family: Arial,sans-serif; font-size: 12pt;">These private files are ** not available for every employee ** in the organization to use. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level1 lfo19; text-indent: -.25in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">3. <span style="font-family: Arial,sans-serif; font-size: 12pt;">There must be a ** specific reason ** for the employee to access them such as an ** emergency contact ** if the employee becomes gravely ill. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">Acceptable Use (of IT) Policy: ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">Define how it should or shouldn’t be used ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;">**<span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">Uses employees signatures ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">Enforce compliance laws <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;">Inventory items should be documented. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto;"><span style="color: black; font-family: Arial,sans-serif; font-size: 10pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;">Medical information privacy has had a high profile over the last ten years due to the passing of the Health Insurance Portability and Accountability Act (HIPPA) and the Child Protection Act. Hippa has strict regulations promoting the privacy and security of medical records. Most school personnel can’t just walk up to student records to view what medications a student takes unless they NEED to know the information to perform their job. If they have a good reason to know, such as the school nurse trying to identify a student’s allergies, they can sign the front of the student record file, state the purpose and look at the necessary information. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">6. <span style="font-family: "Arial","sans-serif";">Please define the following: <span style="font-family: Arial,sans-serif;">a. <span style="font-family: "Arial","sans-serif";">Sarbanes-Oxley (10 points) <span style="font-family: Arial,sans-serif; font-size: 12pt;">In 2002, Senator Paul S. Sarbanes and Representative Michael G. Oxley sponsored the Public Company Accounting Reform and Investor Protection Act. Now known as the ** Sarbanes-Oxley Act, ** it is considered by some government leaders as the most significant change to ** US securities law ** since the 1930’s. The Sabranes-Oxley act: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Enforces a form of checks and balances to enhance **financial disclosures** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Ensures the integrity of financial statements <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Requires companies to establish and maintain financial reporting procedures <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;">The SOX act mandates ethical independent **auditing activities** in order to combat corporate fraud. The SOX act specifies that the ** same public certified accountant ** should ** NOT ** be used at every audit. In order for auditing activities to become more transparent, corporations must maintain: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l14 level1 lfo9; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Annual assessment on the effectiveness of the ** reporting procedures ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l14 level1 lfo9; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Section 404 assessment ** auditing **compliance procedures <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l14 level1 lfo9; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Mandatory rotation **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> of ** Certified Public Accountants ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l14 level1 lfo9; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Managed ** assessments ** of internal controls <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">b. <span style="font-family: "Arial","sans-serif";">HIPAA (10 points) <span style="font-family: Arial,sans-serif; font-size: 12pt;"> ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">HIPPA **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> regulations cover ** three groups ** of individual or corporate entities. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo10; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Health plans **<span style="font-family: Arial,sans-serif; font-size: 12pt;">(insurance and medical plans) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo10; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Healthcare Providers **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> (like hospitals, doctors, etc.) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo10; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Healthcare clearinghouses **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> (billing services, processor of health info, etc.) <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;">HIPPA can effect inside AND outside of the medical industry, (** non-medical industry ** employers would want to make sure that they are ** compliant **). HIPAA ** security rule ** is designed to assure ** confidentiality ** of Protected Health Info ** (PFI) ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l17 level1 lfo11; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">PFI includes identifiable or even reasonably ** identifiable info. ** <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l17 level1 lfo11; text-indent: -.25in;"> · ** <span style="font-family: Arial,sans-serif; font-size: 12pt;">Privacy Rule  **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> of HIPAA is intended to protect the privacy of all Individually Identifiable Health Info ** (IIHI) ** <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">c. <span style="font-family: "Arial","sans-serif";">Patriot Act (10 points) <span style="font-family: Arial,sans-serif; font-size: 12pt;">After the terrorist attacks of 9/11, the United States ** Government **passed the Uniting <span style="font-family: Arial,sans-serif; font-size: 12pt;">Strengthening America by Providing Appropriate Tools Required to Intercept & Obstruct Terrorism ** (PATRIOT) Act ** of 2001. The Patriot Act allows law enforcement to use many of the same techniques that were already in service to investigate organized crime. The Patriot act allows **MORE communication** about citizens **between various law enforcement agencies** in order to fight crime and terror. The patriot act enables: <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> **<span style="font-family: Arial,sans-serif; font-size: 12pt;">New technology procedures **<span style="font-family: Arial,sans-serif; font-size: 12pt;"> are now more clearly defined in the Patriot Act allowing law enforcement to fight terrorism more efficiently. <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;">The ** private sector ** has felt the impact of these changes as well. ID requirements have tightened across the nation. Financial institutions face ** stricter ID requirements ** and are now under the obligation to ** document customer Identification ** more closely. When opening new accounts, institutions must take measures to determine whether the customer appears on any list of terrorist suspects. <span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="font-family: Arial,sans-serif; font-size: 12pt;">An ** IT manager ** of these types of institutions must install** systems ** for ** tracking and documenting **such activities in case of an audit. If no systems are installed, the corporation can face ** severe penalties **, especially in the event if a crime WAS to appear. IT must install secure systems for backing information up and ** maintaining archives **. Over time, archives must be freshened on new hard drives as they often have a shelf life with an expiration date. Long term ** maintenance **plans must be authored and compliant with federal regulations, such as the amount of time a financial institution must maintain bank transactions. IT managers must be well versed in a variety of various policies and ** systems of implementation ** in order to ** comply ** with them. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">7. <span style="font-family: "Arial","sans-serif";">As a CEO, list three reasons why would you want your CIO/Director of Technology to report directly to you? (15 points) <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Generally organizations have an internal structure for delegating responsibilities. The larger the organization, the greater the responsibility level it takes to run it. CEO’s are considered the leaders of the organization. Depending on the size of the organization, a CEO will typically have several department heads under them. Often, department heads are called Vice Presidents. Vice presidents have managers and employees that work under them. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">In the past, most technology directors, or CIO’s would report to the Chief Financial Officer. This caused a lot of problems with communication. The CIO’ was not generally allowed to the department head meetings to find out the current company trends with their IT needs. They would have to get the information from the CFO. The CFO might play down the problems of the organization in order to keep the costs down. The CIO would not always get the pertinent information needed to run the organization. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Today, the trend is becoming more popular to change the reporting structure of the CIO to the CEO. This benefits the CEO because she doesn’t have to worry about communication and the needs of the department heads being incorrectly filtered through the CFO. She can be sure that the CIO is taking appropriate notes during the meetings. The CIO must align his technology plan to the organizational plan at every step. A CEO is assured that there will be technological support at each step of the process in order to meet the company goals and objectives. <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;"> <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">The CEO will find that her organization will run much smoother due to fewer errors. Her departments will be more synchronized as the CIO integrates communication portals between each. The CEO can delegate multi-departmental technology issues to the CIO more directly. Other benefits from the CEO perspective include: <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Timely information flow <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Reliable information <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Problems before they get too big <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Collaboration between the department heads and the CIO <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Reduction in abuses of low priority technology projects due to the CIO’s elevated status <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Current technology trends brought to the table by the CIO <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Sends a message to stakeholder that technology is important to the company <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Same page on executing technology plans <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">Anticipated costs in the near future <span style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l7 level1 lfo14; text-indent: -.25in;"> · <span style="font-family: Arial,sans-serif; font-size: 12pt;">CIO’s elevated status will give him more respect from employees, providing an additional layer of efficiency <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">8. <span style="font-family: "Arial","sans-serif";">List three reasons why it is important for students in class to experience the latest technologies in the learning environment? (15 points) <span style="font-family: "Arial","sans-serif";">Students of all ages more than ever are coming into the dawn of a new era. The information era is hitting students at such a fast rate that some skills that were considered cutting edge just a few years ago, are already predicted to become obsolete. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: "Arial","sans-serif";">Newer, fresher, quicker and more complicated technologies pop to the surface every day. Now there are so many sub-fields of technology that it would be impossible to know them all. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">1. <span style="font-family: "Arial","sans-serif";">Most students entering the workforce must have two or three mainstream software skills before even being considered for the job. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">2. <span style="font-family: "Arial","sans-serif";">Additional software experience is sometimes what gets the foot in the door for an interview, depending on the position. <span style="font-family: "Arial","sans-serif";">Today, students experience the latest technologies in the university environment with direct instruction. Some students don’t have this option and take these types of courses online through asynchronous video tutorials such as Lynda.com. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">3. <span style="font-family: "Arial","sans-serif";">For those students that are already in a career, technology courses could be the key to getting a promotion. <span style="font-family: Arial,sans-serif;">4. <span style="font-family: "Arial","sans-serif";">Learning a new software system that increases the productivity in an organization could be what motivates their supervisors to give them the job. <span style="font-family: Arial,sans-serif;">5. <span style="font-family: "Arial","sans-serif";">Now the infinite possibilities with software and web based tools can actually be used to help students learn their course material better and employees learn their job better. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: Arial,sans-serif;">9. <span style="font-family: "Arial","sans-serif";">Why do most projects fail to meet the deadline or come in under budget? (15 points) <span style="font-family: "Arial","sans-serif";"> <span style="font-family: "Arial","sans-serif";">Projects differ from daily operation procedures in that it has a beginning and an end. Projects can vary in size, time and length. Projects that are most successful follow a well-defined project plan. Projects that are not successful may lack communication among stakeholders and leaders. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: "Arial","sans-serif";">Some projects have a poorly defined scope. The scope is similar to a bubble that encompasses the project. It includes all of the steps involved in the budget process. It encompasses the defined set of objectives and goals in the beginning and keeps project participants on track. Scope defines the limits of the project and stakeholders should not ask for anything above and beyond them. Asking for additional items or services throughout the project can cause scope creep. <span style="font-family: "Arial","sans-serif";"> <span style="font-family: "Arial","sans-serif";">Changes to the project scope sometimes can’t be helped. However, before changes are agreed upon, it is recommended that all processes and consequences be thoroughly outlined. All changes must be considered carefully and should be in agreement with each participant involved.
 * Capital expenditure**** s ** are considered by some as company assets. Most items like tables, bookshelves and chairs, have a useful life and depreciate very slowly over time. Some items, like real estate, wall art or antique furniture may even appreciate in value. Capital expenditures are major expenses and are generally inventoried. IT departments typically have large capital expenditure expenses such as hardware and software. Many companies assign a minimum amount such as $500 to minimize capital expense paperwork. Even if a smaller item like a stapler or a letter opener may last several years, it won’t make the capital expenditure list unless it meets the minimum dollar amount. However, bulk purchases of grouped items (like $10,000 in hard-drives for 100 employees) may be considered by some companies as capital expenditures.
 * <span style="font-family: "Arial","sans-serif";">Benefits: **
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l3 level1 lfo13;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Security agencies to use sophisticated surveillance techniques
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l3 level1 lfo13;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Law enforcement to conduct undetected investigations
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l3 level1 lfo13;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Federal agents, such as the FBI and CIA are now able to **subpoena business records** for suspected terrorists more readily
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l15 level1 lfo12;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Security agencies have far less red tape to **get search warrants** for suspected terrorists then before.
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l15 level1 lfo12;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Victims of **computer trespassing** can seek the assistance of enforcement agencies to **monitor computer hackers**.
 * <span style="line-height: normal; margin-bottom: .0001pt; 0in margin-bottom: 0in; mso-list: l15 level1 lfo12;"><span style="font-family: Arial,sans-serif; font-size: 12pt;">Conspiracy penalties and statues of limitations have been adjusted accordingly.