Each appointing authority is responsible for determining whether positions within the appointing authority are sensitive, and may designate those positions as sensitive positions. Each appointing authority who designates a position as sensitive shall be responsible for all of the following: Notification to the employee in the position of the designation of the position as sensitive and of requirements for testing in accordance with Regulation .04 of this chapter; Maintenance of documentation of the reasons for the designation; Presentation of the reasons for the designation in administrative or judicial proceedings; and Provision of reports to the Secretary, to be submitted following the end of each fiscal quarter, listing each position, as identified by position identification number, that has been designated as sensitive along with the reasons for the designation.