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entitled 'Core Financial System Requirements: Checklist for Reviewing 
Systems under the Federal Financial Management Improvement Act' which 
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Exposure Draft:

July 2004:

CORE FINANCIAL SYSTEM REQUIREMENTS:

Checklist for Reviewing Systems under the Federal Financial Management 
Improvement Act:

GAO-04-763G:

July 2004:

The Federal Financial Management Improvement Act of 1996 (FFMIA) 
requires, among other things, that agencies implement and maintain 
financial management systems that substantially comply with federal 
financial management system requirements. These requirements are 
detailed in the Federal Financial Management System Requirements series 
issued by the Joint Financial Management Improvement Program (JFMIP) 
and in the guidance issued by the Office of Management and Budget 
(OMB): Circular A-127, Financial Management Systems, and the January 4, 
2001, Revised Implementation Guidance for the Federal Financial 
Management Improvement Act (FFMIA) of 1996. JFMIP intends for the 
requirements to promote understanding of key financial management 
systems concepts and requirements, to provide a framework for 
establishing integrated financial management systems to support program 
and financial managers, and to describe specific requirements of 
financial management systems.

We are issuing this checklist, which reflects JFMIP's revised Core 
Financial System Requirements (JFMIP-SR-02-01, November 2001), to 
assist (1) financial systems analysts, systems accountants, systems 
developers, program managers, and others who design, develop, 
implement, operate, or maintain financial management systems and (2) 
management and auditors in reviewing agency core systems to determine 
if the systems substantially comply with FFMIA.

There is no requirement that this checklist be used in assessing core 
financial systems. Rather, it is provided as a tool for use by 
experienced staff and is one in a series of documents we have issued to 
assist agencies in improving or maintaining effective operations. (See 
the last page of this document for a list of related products.) This 
checklist, the JFMIP source document, and the two previously mentioned 
OMB documents should be used concurrently. Those using this tool must 
apply experienced judgment in its interpretation and application. They 
must consider the impact of the completed checklist on an entire core 
system and whether the system, as a whole, substantially complies with 
requirements.

This checklist exposure draft is available on the GAO Web site 
(http://www.gao.gov) under "Reports and Testimony," browsing by the 
topic "Financial Management." JFMIP's source document can be downloaded 
from the JFMIP Web site (http://www.jfmip.gov) under "JFMIP Documents" 
and the subheading "System Requirements."

Please send comments on this exposure draft by August 31, 2004, to 
McCoy Williams, Director, Financial Management and Assurance, U.S. 
Government Accountability Office, 441 G Street, N.W., Room 5089, 
Washington, D.C. 20548.

Signed by:

Jeffrey C. Steinhoff:

Managing Director:

Financial Management and Assurance:

[End of letter]

Contents:

Preface:

Overview:

Overview: Authoritative Guidance:

Overview: How to Use This Checklist:

Core Financial System Requirements:

Core Financial System Requirements: Functional Requirements:

Core Financial System Requirements: Functional Requirements: Core 
Financial System Management Function:

Core Financial System Requirements: Functional Requirements: 
Accounting Classification Management Process:

Core Financial System Requirements: Functional Requirements: 
Transaction Control Process:

Core Financial System Requirements: General Ledger Management Function:

Core Financial System Requirements: General Ledger Management Function: 
General Ledger Account Definition Process:

Core Financial System Requirements: General Ledger Management Function: 
Accruals, Closing, and Consolidation Process:

Core Financial System Requirements: General Ledger Management Function: 
General Ledger Analysis and Reconciliation Process:

Core Financial System Requirements: Funds Management Function:

Core Financial System Requirements: Funds Management Function: Budget 
Preparation Process:

Core Financial System Requirements: Funds Management Function: Budget 
Formulation Process:

Core Financial System Requirements: Funds Management Function: Funds 
Allocation Process:

Core Financial System Requirements: Funds Management Function: Budget 
Execution Process:

Core Financial System Requirements: Funds Management Function: Funds 
Control Process:

Core Financial System Requirements: Payment Management Function:

Core Financial System Requirements: Payment Management Function: Payee 
Information Maintenance Process:

Core Financial System Requirements: Payment Management Function: 
Payment Warehousing Process:

Core Financial System Requirements: Payment Management Function: 
Payment Execution Process:

Core Financial System Requirements: Payment Management Function: 
Payment Confirmation and Follow-up Process:

Core Financial System Requirements: Receivable Management Function:

Core Financial System Requirements: Receivable Management Function: 
Customer Information Maintenance Process:

Core Financial System Requirements: Receivable Management Function: 
Receivable Establishment Process:

Core Financial System Requirements: Receivable Management Function: 
Debt Management Process:

Core Financial System Requirements: Receivable Management Function: 
Collection Process:

Core Financial System Requirements: Cost Management Function:

Core Financial System Requirements: Cost Management Function: Cost 
Setup and Accumulation Process:

Core Financial System Requirements: Cost Management Function: Cost 
Recognition Process:

Core Financial System Requirements: Cost Management Function: Cost 
Distribution Process:

Core Financial System Requirements: Cost Management Function: Working 
Capital and Revolving Fund Process:

Core Financial System Requirements: Reporting Function:

Core Financial System Requirements: Reporting Function: General 
Reporting Process:

Core Financial System Requirements: Reporting Function: External 
Reporting:

Core Financial System Requirements: Reporting Function: Internal 
Reporting:

Core Financial System Requirements: Reporting Function: Ad Hoc Query:

Technical Requirements:

Technical Requirements: General Design/Architecture:

Technical Requirements: Infrastructure:

Technical Requirements: User Interfaces:

Technical Requirements: Interoperability:

Technical Requirements: Workflow/Messaging:

Technical Requirements: Document Management:

Technical Requirements: Internet Access:

Technical Requirements: Security:

Technical Requirements: Operations and Computing Performance:

Related GAO Products:

Figure 1: Agency Systems Architecture:

[End of Contents]

Abbreviations:

ACH: Automated Clearing House:

ALC: agency location code:

API: application program interface:

CCD: Cash Concentration or Disbursement:

CCD+: Cash Concentration or Disbursement Plus Addendum:

CCR: Central Contractor Registration:

C.F.R.: Code of Federal Regulations:

COTR: Contract Officer's Technical Representative:

COTS: commercial-off-the-shelf:

CTX: Corporate Trade Exchange:

DUNS: Data Universal Numbering System:

ECS: Electronic Certification System:

EFT: Electronic Funds Transfer:

FACTS: Federal Agencies Centralized Trial Balance System::

FASAB: Federal Accounting Standards Advisory Board:

FFMIA: Federal Financial Management Improvement Act of 1996:

FMS: Financial Management Service:

IPAC: Intra-governmental Payment and Collection System:

IRS: Internal Revenue Service:

IT: information technology:

JFMIP: Joint Financial Management Improvement Program:

NIST: National Institute of Standards and Technology:

OMB: Office of Management and Budget:

PPD: Prearranged Payment and Deposit:

PPD+: Prearranged Payment and Deposit Plus Addendum:

RTN: routing transit number:

SGL: U.S. Government Standard General Ledger:

SFFAS: Statements of Federal Financial Accounting Standards:

TAS: treasury account symbol:

TAFS: treasury account fund symbol:

TFM: Treasury Financial Manual:

TIN: taxpayer identification number:

U.S.C.: United States Code:

XML: Extensible Markup Language:

[End of Abbreviations]

Overview:

The Federal Financial Management Improvement Act of 1996 (FFMIA) 
requires, among other things, that agencies implement and maintain 
financial management systems that substantially comply with federal 
financial management system requirements. These requirements are 
detailed in the Federal Financial Management System Requirements series 
issued by the Joint Financial Management Improvement Program (JFMIP) 
[Footnote 1] and in Circular A-127, Financial Management Systems, 
issued by the Office of Management and Budget (OMB). The JFMIP 
requirements document describes the federal financial system 
architecture as consisting of (1) core financial systems; (2) other 
financial and mixed systems, not all of which are applicable to all 
agencies; (3) shared systems; and (4) departmental executive 
information systems (systems to provide management information to all 
levels of management). [Footnote 2] Figure 1 is the JFMIP model that 
illustrates how these systems interrelate in an agency's overall 
systems architecture.

Figure 1: Agency Systems Architecture:

[See PDF for image]

[End of figure]

To date, JFMIP has issued 13 of the 15 functional requirements shown in 
figure 1. [Footnote 3] We are issuing this checklist, which reflects 
JFMIP's revised Core Financial System Requirements (JFMIP-SR-02-01, 
November 2001) and the Addendum to Core Financial System Requirements 
(March 2004), to assist (1) financial systems analysts, systems 
accountants, systems developers, program managers, and others who 
design, develop, implement, operate, or maintain financial management 
systems and (2) management and auditors in reviewing agency core 
systems to determine if the systems substantially comply with FFMIA.

This checklist is not a requirement. It is provided as a tool for use 
by experienced staff. This checklist; the JFMIP source document, Core 
Financial System Requirements (JFMIP-SR-02-01, November 2001); OMB 
Circular A-127, Financial Management Systems; and OMB's Revised 
Implementation Guidance for the Federal Financial Management 
Improvement Act (FFMIA), issued January 4, 2001, should be used 
concurrently. Staff members who use this tool must apply experienced 
judgment in its interpretation and application. They must consider the 
impact of the completed checklist on the entire core financial system 
and whether the system, as a whole, substantially complies with 
requirements.

Authoritative Guidance:

OMB Circular A-127, Financial Management Systems, and OMB's January 4, 
2001, Revised Implementation Guidance for the Federal Financial 
Management Improvement Act provide the guidance for assessing 
compliance with FFMIA requirements. The OMB guidance identifies various 
criteria that agency systems must meet to substantially comply with 
these requirements. One set of criteria listed in the OMB guidance is 
the JFMIP system requirements series.

The source of all the questions in this checklist is the JFMIP Core 
Financial System Requirements (JFMIP-SR-02-01, November 2001) and the 
Addendum to Core Financial System Requirements (March 2004). The JFMIP 
document and the addendum represent the latest update to the core 
document first issued in January 1988. These updates reflect recent 
changes in laws and regulations and in governmentwide reporting 
systems, such as the Department of the Treasury's Federal Agencies 
Centralized Trial Balance System (FACTS) II, and the OMB policy 
requiring agencies to use the Intragovernmental Transaction Exchange 
Portal for executing certain types of financial transactions. The 
updates also clarify some existing requirements, delete redundant or 
outdated requirements, incorporate value-added requirements, change 
the priority (i.e., mandatory or value added) of certain requirements, 
and add new requirements to reflect the current needs of federal 
agencies.

The JFMIP Core Financial Systems Requirements document is the basis for 
evaluating core financial system software for compliance with JFMIP 
requirements. It is done through a testing process that links test 
scenarios to the JFMIP requirements. JFMIP tests commercial software 
functionality against these requirements and qualifies the software as 
meeting mandatory requirements. JFMIP also uses this process to test 
government agency software compliance for those agencies that provide 
accounting systems to other government agencies on a cross-service 
agreement.

The JFMIP document segregates functional requirements into two general 
categories--mandatory and value-added. The mandatory requirements 
describe what the system must do. They consist of the minimum 
acceptable functionality necessary to establish a system and are based 
on federal laws, regulations, directives, or judicial decisions. 
Mandatory requirements are those against which agency heads are to 
evaluate their systems to determine the systems' substantial compliance 
with FFMIA. These requirements apply to existing systems in operation 
and new systems planned or under development. The checklist uses "M" 
immediately following the question to indicate a mandatory system 
requirement.

The value-added requirements describe optional features or 
characteristics and may consist of any combination of the following:

(1) using state-of-the-art technology, (2) employing the preferred or 
best business practices, or (3) meeting the special management needs of 
an individual agency. Agencies should consider value-added features 
when judging systems options. The need for these value-added features 
in agency systems is left to the discretion of each agency head. The 
checklist uses "V" immediately following the question to indicate that 
the item is value-added and not mandatory.

How to Use This Checklist:

OMB's 2001 implementation guidance provides the agency heads and 
inspectors general with a means for determining whether their agencies' 
financial management systems substantially comply with federal 
financial management system requirements. Agencies can use this 
checklist as a tool to help determine compliance with federal financial 
management system requirements as well as to assist in their annual 
reporting on such compliance as required by 31 U.S.C.  3512(d).

Completing this checklist will allow agencies to systematically 
determine whether specific systems requirements are being met. In 
determining compliance with FFMIA requirements, agencies should assess 
the results of the completed checklist based on the core financial 
system requirements taken as a whole.

The checklist contains three columns with the first citing the 
question. Use the second column to answer each question "Yes," "No," or 
"N/A." Use the third column to explain your answer. A "Yes" answer 
should indicate that the agency's core financial system provides for 
the capability described in the question. For each "Yes" answer, the 
third column should contain a brief description of how the core 
financial system satisfies that capability and should also refer to a 
source that explains or shows the capability.

A "No" answer indicates that the capability does not exist. For a "No" 
answer, the third column should provide an explanation [Footnote 4] 
and, where applicable, a reference to any related supporting 
documentation. Cost-benefit studies or support for a "No" answer should 
be identified in the explanation column. If there are no cost-benefit 
studies or other support, a full explanation should be provided.

"No" answers should not be viewed individually or taken out of context. 
Rather, "No" answers should be assessed as to their impact on the 
overall core financial system and the extent to which the "No" answers 
inhibit the entire core financial system from achieving compliance. 
Certain questions within the checklist may not be applicable to the 
agency. Answer these question(s) with "N/A" and provide an appropriate 
explanation in the third column.

This checklist is designed to capture the JFMIP requirements in a 
format that can be used to easily determine the JFMIP requirements that 
are applicable to federal financial management systems. The JFMIP 
requirements form the foundation for a system evaluation effort, and 
agencies must determine and document the agency-specific requirements 
that must be developed to best meet their needs while ensuring that the 
JFMIP requirements are fulfilled. This is consistent with how the JFMIP 
requirements should be used in an agency's effort to develop or 
implement a financial management system.

Moreover, systems requirements continually evolve as new laws and 
regulations are promulgated. Because there may be a time lag between 
the issuance of new laws and regulations and when the JFMIP systems 
requirements documents are updated, this checklist may also not include 
all relevant laws and regulations that should be considered when 
evaluating a system. Therefore, consideration must be given to 
identifying any changes in laws and regulations that could impact the 
requirements included in this checklist.

[End of Overview]

Core Financial System Requirements:

Government core financial systems, as an integral component of the 
federal agency systems architecture (see fig. 1), are relied on to 
control and support the key financial management functions of an 
agency. The core financial system receives data from other financial 
and mixed systems and from direct user input, and provides data and 
supports processing for other systems. JFMIP's Core Financial System 
Requirements document provides functional requirements for financial 
managers, program managers, and others to control and account for 
federal programs as defined in governmentwide statutes, regulations, 
and guidelines. It is divided into two major sections, "functional 
requirements" and "technical requirements," which are described below.

* Functional requirements have been established to provide the basic 
information and control needed to carry out financial management 
functions; manage the financial operations of an agency; and report on 
the agency's financial status to central agencies, Congress, and the 
public. This includes data needed to prepare the principal financial 
statements for federal agencies in accordance with OMB Bulletin No. 01-
09, Form and Content of Agency Financial Statements. The major 
functions supported by a core financial system are discussed below:

1. Core financial system management consists of the processes necessary 
to maintain the financial system in a manner that is consistent with 
established financial management laws, regulations, and policy. This 
function sets the framework for all other core financial system 
functions.

2. General ledger management is the central function of the core 
financial system. The general ledger is the highest level of 
summarization and must maintain account balances by the accounting 
classification elements established in the core financial system 
management function.

3. Funds management is the function that ensures that the agency does 
not obligate or disburse funds in excess of those appropriated or 
authorized.

4. Payment management is the function that provides appropriate control 
over all payments made by or on behalf of the agency.

5. Receivable management is the function that supports activities 
associated with recognizing and recording debts due to the government, 
performing follow-up actions to collect on these debts, and recording 
agency cash receipts.

6. Cost management is the function that attempts to measure the total 
cost and revenue of federal programs and their various elements, 
activities, and outputs.

7. Reporting is the function that provides timely and useful financial 
information to support management's fiduciary role, budget formulation 
and execution functions, fiscal management of program delivery and 
program decision making, and internal and external reporting 
requirements.

* Technical requirements have been established to help ensure that a 
core financial system is capable of meeting a wide variety of workload 
processing demands; provide transaction processing integrity and 
general operating reliability; incorporate standard installation, 
configuration, and operating procedures; and do not conflict with other 
administrative/program systems or other agency-established information 
technology (IT) standards. The JFMIP source document categorizes the 
technical requirements as (1) general design/architecture, (2) 
infrastructure, (3) user interfaces, (4) interoperability, (5) 
workflow/messaging, (6) document management, (7) Internet access, (8) 
security, and (9) operations and computing performance.

All of the checklist questions come from the JFMIP source document, 
JFMIP-SR-02-02, November 2001, and the March 2004 Addendum. Page number 
references follow each of the questions. It should be noted that not 
all questions will apply in all situations, and as with the use of any 
checklist, professional judgment should be exercised. Using the JFMIP 
source document and its "Appendix B: Glossary," which defines terms 
used, along with OMB Circular A-127, Financial Management Systems, and 
OMB's Revised Implementation Guidance for the Federal Financial 
Management Improvement Act (FFMIA), issued January 4, 2001, will help 
ensure that the user is aware of the background information necessary 
to fully understand the questions.

[End of Introduction to Core Financial System Requirements]

Functional Requirements: Core Financial System Management Function: 
Accounting classification management process: [Footnotes 5, 6]

1. To support the accounting classification management process, does 
the core financial system provide the capability to classify accounting 
transactions by the following:

a. treasury account symbol/treasury account fund symbol (TAS/TAFS),

b. internal fund code,

c. budget fiscal year,

d. accounting quarter and month,

e. program,

f. organization,

g. project,

h. activity,

i. cost center,

j. object class,

k. budget function (and subfunction code), and:

l. remaining U. S. Government Standard General Ledger (SGL) attributes 
not specified above? M (p. 18); [Footnote 7]

2. Does the core financial system provide the capability to define 
additional accounting classification elements and classify and report 
accounting transactions by each type of element? M (p. 18);

3. Does the core financial system provide the capability to achieve 
consistency in budget and accounting classifications and 
synchronization between those classifications and the organizational 
structure, including the maintenance of data relationships between the 
following:

a. budget formulation classifications (budget function and subfunction 
classification codes, per OMB Circular No. A-11, Preparation, 
Submission and Execution of the Budget),

b. budget execution and accounting classifications (e.g., TAS/TAFS, 
internal fund, program, project, and activity), and:

c. the agency's organizational structure? M (p. 18);

4. Does the core financial system have the capability to provide a fund 
structure that identifies a TAS/TAFS established by OMB and Treasury? M 
(p. 18);

5. Does the core financial system provide the capability to accommodate 
additional detail below the TAS level, such as an internal fund code to 
support fiscal year accounting and appropriation subaccounts used for 
reporting to Treasury? M (p. 18);

6. Does the core financial system provide the capability to 
differentiate among the type of budgeting, accounting, and reporting 
treatments to be used based on various TAS/TAFS characteristics? M (p. 
18);

7. At a minimum, does the core financial system provide the capability 
to support the following fund characteristics in accordance with 
Treasury and OMB reporting and budget execution requirements:

a. fund type, such as general fund, deposit fund, trust fund, special 
fund, revolving fund, or receipt account;

b. funding source, such as borrowing authority, contract authority, 
direct appropriation, or spending authority from offsetting 
collections;

c. budget status, such as on budget, off budget, or financing account; 
and:

d. TAS/TAFS status, such as annual, multiyear, and no year? M (p. 18);

8. Does the core financial system have the capability to provide a 
program structure with sufficient levels of detail to allow reporting 
for all categories on which budgetary decisions are made, whether 
legally binding, as in appropriation limitations, or in the nature of 
policy guidance, as in presidential pass backs and congressional markup 
tables? M (pp. 18 & 19);

9. Does the core financial system provide the capability to establish 
an organizational structure based on responsibility segments, such as 
bureaus, divisions, and branches? M (p. 19);

10. Does the core financial system provide the capability to tie 
responsible organizational units to programs, projects, and activities? 
M (p. 19);

11. Does the core financial system provide the capability to support 
the management of multiple agency location codes (ALC) and associate 
the appropriate ALC with each transaction involving fund balance with 
Treasury to facilitate external reporting [Footnote 8] and 
reconciliation with Treasury? M (p. 19);

12. Does the core financial system have the capability to provide a 
project structure that is independent of the other accounting 
classification elements to allow multiple organizations, programs, and 
funding sources to be associated with a project? M (p. 19);

13. Does the core financial system have the capability to provide an 
object class structure consistent with the standard object class codes 
contained in OMB Circular No. A-11? M (p. 19);

14. Does the core financial system have the capability to provide 
flexibility to accommodate additional levels (lower) in the object 
class structure? M (p. 19);

15. Does the core financial system provide the capability to process 
additions, changes, and deletions to elements of the accounting 
classification design, and related valid domain values within 
accounting classifications, without extensive program or system changes 
(e.g., through online table updates)? M (p. 19);

16. Does the core financial system provide the capability to allow the 
user to enter, edit, and store accounting classification table changes 
so that the changes automatically become effective at any future date 
determined by the user? M (p. 19);

17. Does the core financial system have the capability to reject or 
suspend interfaced transactions that contain accounting classification 
elements or domain values that have been deactivated or discontinued? M 
(p. 19);

18. Does the core financial system have the capability to provide a 
revenue source code structure to identify and classify types of revenue 
and receipts as defined [Footnote 9] by the user? V (p. 19);

19. Does the core financial system provide the capability to validate 
all transactions involving Treasury and other disbursing centers for 
valid combinations of ALC and TAS/TAFS, as defined by the user? V (p. 
19);

20. Does the core financial system provide the capability to derive the 
full accounting classifications from abbreviated user input [Footnote 
10] so that user input is minimized, data entry is made easier, and 
errors are controlled and reduced? V (p. 19);

21. Does the core financial system have the capability to provide for 
an automated method to reclassify accounting data at the document level 
when a restructuring of the existing values pertaining to the mandatory 
accounting classification elements is needed? V (p. 19);

22. Does the core financial system provide the capability to maintain 
an audit trail from the original postings to the final posting? V (p. 
19);

[End of section]

Functional Requirements: Core Financial System Management Function: 
Transaction control process: Transaction definition and processing: 
[Footnotes 11, 12]

23. To support the transaction definition and processing activity, does 
the core financial system provide the capability to use standard 
transactions when recording accounting events? M (p. 20);

24. Do the standard transactions specify the postings to the general 
ledger accounts, and update document balances and any related tables, 
such as available funding? M (p. 20);

25. Does the core financial system provide the capability to allow the 
user to include proprietary, budgetary, and memorandum accounts in the 
definition of a standard transaction? M (p. 20);

26. Does the core financial system provide the capability to record 
transactions consistent with SGL posting rules? M (p. 20);

27. Does the core financial system provide the capability to reject a 
transaction or provide a warning message when attempting to post a 
transaction that would cause general ledger debits and credits to be 
out of balance at a level below the TAS/TAFS, such as internal fund or 
organization level? M (p. 20);

28. Does the core financial system provide the capability to allow 
users to define and maintain standard rules that control general ledger 
account postings [Footnote 13] for all accounting events? M (p. 20);

29. Does the core financial system provide the capability to enable 
users to selectively require, omit, or set a default value for 
individual accounting classification [Footnote 14] elements? M (p. 20);

30. Does the core financial system provide the capability to update all 
applicable general ledger account balances (i.e., budgetary, 
proprietary and memorandum accounts) based on a single input 
transaction? M (p. 21);

31. Does the core financial system have the capability to define, 
generate, and post compound general ledger debit and credit entries for 
a single transaction? M (p. 21);

32. Does the core financial system provide the capability to 
accommodate at least 10 debit and credit pairs or 20 accounts when 
defining and processing a single transaction? M (p. 21);

33. Does the core financial system provide the capability to allow 
users to define and process system-generated transactions, such as 
automated accruals (e.g., payroll accrual entries), preclosing and 
closing entries, cost assignment transactions, recurring payments, and 
transactions that generate other transactions when a single transaction 
is not sufficient? M (p. 21);

34. Does the core financial system provide the capability to 
automatically liquidate, partially or in full, the balance of open 
documents by line item? M (p. 21); [Footnote 15]

35. Does the core financial system provide the capability to 
automatically determine and record the amount of upward or downward 
adjustments to existing obligations [Footnote 16] upon liquidation, 
cancellation, or other adjustment? M (p. 21);

36. When adjustments are made to existing obligations or previously 
recorded expenditures, does the core financial system automatically 
distinguish between upward and downward adjustments to unexpired and 
expired budget authority, and generate the appropriate general ledger 
postings, without user intervention? M (p. 21);

37. Relative to expired funds, does the core financial system have the 
capability to provide an overrideable error message when attempting to 
post (previously unrecorded) obligations to current year general ledger 
obligation accounts (such as SGL accounts 4801 or 4802)? M (p. 21);

38. When recording adjustments to prior year obligations (including 
previously expended authority), does the core financial system provide 
the capability to automatically classify upward and downward 
adjustments [Footnote 17] as paid and or unpaid according to the status 
of the related obligation or expenditure? M (p. 21);

39. Does the core financial system provide the capability to control 
the correction and reprocessing of all erroneous transactions through 
the use of error/suspense files? M (p. 21);

40. Does the core financial system provide the capability to maintain 
erroneous transactions until either corrected and posted or deleted at 
the specific request of a user? M (p. 21);

41. Does the core financial system have the capability to provide 
immediate, online notification to the user of erroneous transactions, 
the reason for the errors, and the ability to enter corrections online? 
M (p. 21);

42. Does the core financial system have the capability to provide 
controls to prevent the creation of duplicate transactions? M (p. 21); 
[Footnote 18]

43. Does the core financial system have the capability to provide a 
warning message when the user attempts to input an external vendor 
invoice number that has already been recorded for the related vendor? M 
(p. 21);

44. Does the core financial system provide the capability to validate 
the fields [Footnote 19] for all accounting classification elements 
required to process the transaction prior to posting? M (p. 22);

45. Does the core financial system provide the capability to enter, 
edit, and store transactions in the current accounting period for 
automatic processing in a future accounting period? M (p. 22);

46. Does the core financial system provide the capability to put 
transactions in a hold status (saved, but not processed or posted) 
within the core system (i.e., importing transactions from a spreadsheet 
or database application is not acceptable)? M (p. 22);

47. Does the core financial system provide the capability to allow 
users to select held transactions and continue processing at a later 
date? M (p. 22);

48. Does the core financial system provide the capability to capture 
the six-digit trading partner code (as specified by Treasury) when 
processing all transactions that directly involve another federal 
entity (i.e., both parties to a transaction are federal entities)? M 
(p. 22);

49. For all transactions, does the core financial system provide the 
capability to capture transaction dates (effective date of the 
transaction) and posting dates (date transaction posted to general 
ledger)? M (p. 22);

50. Does the core financial system provide the capability to 
automatically determine the posting date from the system date for all 
transactions? M (p. 22);

51. Does the core financial system provide the capability to 
automatically associate a default accounting period for each 
transaction, while allowing for user override? M (p. 22);

52. Does the core financial system provide the capability to 
automatically reverse entries by the following parameters:

a. transaction or document type,

b. date range,

c. schedule numbers,

d. transaction identification number (i.e., document number) range, 
and:

e. trading partner? M (p. 22);

53. Does the core financial system provide the capability to post to 
the current and prior months concurrently until the prior month closing 
is complete? M (p. 22);

54. Does the core financial system have the capability to provide and 
maintain online queries and reports on balances separately for the 
current and prior months? M (p. 22);

55. At a minimum, does the core financial system provide the capability 
to maintain balances online for both the current and prior months until 
the prior month closing is complete? M (p. 22);

56. Does the core financial system provide the capability to post to 
the current fiscal year and prior fiscal year concurrently until prior 
year-end closing is complete? M (p. 22);

57. Does the core financial system have the capability to provide and 
maintain online queries and reports on balances separately for the 
current and prior fiscal years? M (p. 22);

58. At a minimum, does the core financial system have the capability to 
provide and maintain online balances for both the current and prior 
fiscal years until the prior fiscal year closing is complete? M (p. 
22);

59. Does the core financial system provide the capability to perform 
validation checks for use of certain general ledger accounts associated 
with specific Record Type 7 authority, such as imprest fund or 
borrowing authority, prior to posting a transaction? V (p. 22);

60. Does the core financial system provide the capability to have all 
functions of the system, including budgeting, spending, accounts 
payable, and accounts receivable, process and track transactions in 
both foreign currency and U.S. dollars? V (p. 23);

61. Does the core financial system provide the capability to calculate 
progress payments to foreign vendors based on current exchange rates? V 
(p. 23);

[End of section]

Functional Requirements: Core Financial System Management Function: 
Transaction control process: Audit trails: [Footnote 20]

62. To support the audit trail activity, does the core financial system 
have the capability to provide audit trails to trace transactions from 
their initial source [Footnote 21] through all stages of related system 
processing? M (p. 23);

63. Does the core financial system provide the capability to select 
items for review based on user-defined criteria by type of transaction 
(e.g., by obligation transactions, vendor, or date range)? M (p. 23); 
[Footnote 22]

64. Does the core financial system have the capability to provide audit 
trails that identify document input, change, approval, and deletions by 
user? M (p. 23);

[End of section]

Functional Requirements: General Ledger Management Function: General 
ledger account definition process: [Footnote 23]

65. To support the general ledger account definition process, does the 
core financial system provide the capability to allow users to define 
and maintain a chart of accounts consistent with the SGL, including 
account titles and the basic numbering structure? M (p. 25);

66. Does the core financial system provide the capability to 
incorporate proprietary, budgetary, and memorandum (credit reform) 
accounts in the system, and maintain the relationships between SGL 
accounts as described in the current Treasury Financial Manual (TFM) 
Supplement? M (p. 25);

67. Does the core financial system have the capability to provide SGL 
control accounts for detailed subsidiary accounts in the core or 
external systems? M (p. 25);

68. Does the core financial system provide the capability to create 
additional subaccounts to the SGL for agency-specific tracking and 
control that will summarize to the appropriate SGL accounts? M (p. 25);

69. Does the core financial system provide the capability to capture 
SGL attribute information required for both FACTS I and FACTS II 
reporting as specified by the current supplement(s) to the TFM? M (p. 
25);

70. Does the core financial system have the capability to provide 
flexibility so that the system can adapt to changes in reporting 
requirements of FACTS I and FACTS II? M (p. 25); [Footnote 24]

71. Does the core financial system provide the capability to process 
additions, deletions, and changes to the chart of accounts without 
extensive program or system changes, (e.g., through online table 
updates)? M (p. 25);

72. Does the core financial system provide the capability to prohibit 
new transactions from posting to general ledger accounts that have been 
deactivated? M (p. 25);

[End of section]

Functional Requirements: General Ledger Management Function: Accruals, 
closing, and consolidation process: [Footnote 25]

73. To support the accruals, closing, and consolidation process, does 
the core financial system provide the capability to allow for accruals 
relating to contracts or other items that cross fiscal years? M (p. 
25);

74. Does the core financial system provide the capability to 
automatically generate selected recurring accrual entries and reversals 
in subsequent accounting periods (e.g., payroll accrual)? M (p. 26);

75. Does the core financial system provide the capability to close an 
accounting period and prohibit subsequent postings to the closed 
period? M (p. 26);

76. Does the core financial system provide the capability to 
automatically determine an accounting period's opening balances based 
on the prior accounting period's closing balances, without user 
intervention or adjustment? M (p. 26);

77. Does the core financial system provide the capability to accomplish 
the rollover of general ledger balances in a detailed manner that 
maintains the SGL attribute information required to satisfy FACTS I and 
FACTS II reporting requirements? M (p. 26);

78. Does the core financial system provide the capability to perform 
multiple preliminary year-end closings, while maintaining the 
capability to post current and prior period data? M (p. 26);

79. Does the core financial system provide the capability to 
automatically generate fiscal year-end preclosing and closing entries 
as they relate to fund types? M (p. 26);

80. Does the core financial system have the capability to provide for 
an automated year-end rollover of appropriate system tables into the 
new fiscal year? M (p. 26);

[End of section]

Functional Requirements: General Ledger Management Function: General 
ledger analysis and reconciliation process: [Footnote 26]

81. To support the general ledger analysis and reconciliation process, 
does the core financial system provide the capability to compare 
amounts in the general ledger accounts with the amounts in the related 
subsidiary records and create reports for those accounts that are out 
of balance? M (p. 26);

82. Is the capability described in the previous question available for 
all open accounting period balances and at frequencies defined by the 
user, such as daily, weekly, and monthly? M (p. 26);

83. Does the core financial system provide the capability to perform 
online "drill downs" from general ledger summary balances to detail 
transactions and referenced documents (e.g., purchase orders and 
receiving reports)? M (p. 26);

84. Does the core financial system provide the capability to record 
subsequent activity related to a closed document under a unique 
document ID and provide an audit trail that associates the new activity 
with the transaction history of the original document? M (p. 26);

[End of section]

Functional Requirements: Funds Management Function: Budget preparation 
process: [Footnotes 27, 28]

85. To support the budget preparation process, does the core financial 
system provide the capability to establish and maintain operating/
financial plans at or below the level of funds control? M (p. 28);

86. Does the core financial system provide the capability to establish 
operating/financial plans by month and quarter at any level of the 
organizational structure specified by the user? M (p. 28);

87. Does the core financial system provide the capability to track and 
report on the use of funds against operating/financial plans? M (p. 
28);

88. Does the core financial system provide the capability to prepare 
operating/financial plans based on multiple measures, including 
obligations, costs, labor hours, and full-time equivalents? V (p. 29);

89. Does the core financial system provide the capability to modify/
revise an existing operating/financial plan by line item? V (p. 29);

90. Does the core financial system provide the capability to maintain 
original and modified operating/financial plans? V (p. 29);

91. Does the core financial system provide the capability to identify 
legal and administrative limitations on funds in operating/financial 
plans? V (p. 29);

92. Does the core financial system provide the capability to generate 
allotments and suballotments (including limitations based on approved 
changes to operating/financial plans)? V (p. 29);

93. Does the core financial system provide the capability to enter 
operating/financial plans for future operating periods? V (p. 29);

94. Does the core financial system provide the capability to roll 
future plans into active budget plans based on future date or retrieval 
function? V (p. 29);

[End of section]

Functional Requirements: Funds Management Function: Budget formulation 
process: [Footnote 29]

95. To support the budget formulation process, does the core financial 
system provide the capability to report information for all categories 
on which budgetary decisions are made, whether legally binding (e.g., 
appropriation limitations) or in the nature of policy guidance and 
decision making (e.g., Presidential/OMB pass backs, congressional 
markup documents, or internal agency decisions)? V (p. 29);

96. Does the core financial system have the capability to populate the 
budget formulation system with prior-year budgeted and actual amounts? 
V (p. 29);

97. Does the core financial system provide the capability to perform 
projections of obligations, income, and expenditures at any level of 
the organizational structure (e.g., projecting obligations based on 
prior periods and applying these to a future period)? V (p. 29);

98. Does the core financial system provide the capability to adjust 
projection rates (e.g., 90 percent, 100 percent, and 110 percent) and 
exclude specified obligations from projection? V (p. 30);

99. Does the core financial system provide the capability to create, 
store, and modify payroll forecasts, including anticipated monthly 
compensation and benefits, at the individual employee level? V (p. 30);

100. Does the core financial system provide the capability to 
incorporate overhead distribution as part of budget formulation? V (p. 
30);

101. Does the core financial system provide the capability to develop 
budgets online and via upload from spreadsheets? V (p. 30);

102. Does the core financial system provide the capability to prepare 
budget submission guidance, budget narratives, and budget briefing 
packages online and via upload from desktop software applications? V 
(p. 30);

103. Does the core financial system provide the capability to 
distribute budget submission guidance to subordinate organizations 
electronically? V (p. 30);

104. Does the core financial system provide the capability to establish 
and maintain multiple budget cycles? V (p. 30);

105. Does the core financial system provide the capability to tie 
budget formulation to the agency's stated goals and objectives required 
by the Government Performance and Results Act of 1993? V (p. 30);

[End of section]

Functional Requirements: Funds Management Function: Funds allocation 
process: [Footnote 30]

106. To support the funds allocation process, does the core financial 
system provide the capability to record funding and related budget 
execution documents (e.g., warrants, apportionments, and allotments) 
and limitations? M (p. 30);

107. Does the core financial system provide the capability to control 
the use of funds against limitations consistent with appropriation and 
authorization language and administrative limitations established by 
agency management? M (p. 30);

108. Does the core financial system provide the capability to 
distribute, track, and control funds at various levels, based on the 
elements of the accounting classification and project structure? M (p. 
30);

109. Does the core financial system provide the capability to verify 
that funds distributed do not exceed the amount of funds available for 
allotment or suballotment at each distribution level? M (p. 30);

110. Does the core financial system provide the capability to support 
subchapter IV of chapter 15 of title 31, [Footnote 31] United States 
Code (closing accounts), by assuring that amounts paid out of current 
year funds to cover obligations made against a closed account do not 
exceed 1 percent of the current year appropriation? M (p. 30);

111. Does the core financial system provide the capability to record 
and control all types of budgetary authority, including appropriations, 
spending authority from offsetting collections, borrowing authority, 
and contract authority? M (p. 31);

112. Does the core financial system provide the capability to identify 
the type of authority and track obligations by funding source? M (p. 
31);

113. Does the core financial system provide the capability to record 
the expiration and cancellation of appropriation authority in 
accordance with OMB Circular A-11, Preparation, Submission, and 
Execution of the Budget, Part 4 [Footnote 32] and the SGL? M (p. 31);

114. Does the core financial system provide the capability to account 
for spending transactions at a lower level in the accounting 
classification than they are budgeted? M (p. 31);

115. Does the core financial system provide the capability to account 
for budgetary resources at a lower level in the accounting 
classification than they are budgeted and controlled? M (p. 31);

116. Does the core financial system provide the capability to prepare 
and electronically transmit SF-132s (Apportionment and Reapportionment 
Schedules and associated financial information) to OMB? M (p. 31);

117. Does the core financial system provide the capability to store 
prepared requests as submitted for future use? M (p. 31);

118. Does the core financial system provide the capability to generate 
budgetary data in the format required by OMB's MAX [Footnote 33] 
system? V (p. 31);

119. Does the core financial system provide the capability to 
automatically prepare the formal allotment and suballotment documents 
and electronically distribute them to subordinate organizations? V (p. 
31);

120. Does the core financial system provide the capability to create 
continuing resolution funding levels based on a percentage of prior-
year funding? V (p. 31);

[End of section]

Functional Requirements: Funds Management Function: Budget execution 
process: [Footnote 34]

121. To support the budget execution process, does the core financial 
system provide the capability to record budget authority at multiple 
[Footnote 35] levels of distribution? M (p. 31);

122. Does the core financial system provide the capability to track and 
record all changes to budget authority at multiple levels of 
distribution, including rescissions, supplementals, transfers between 
TAS/TAFS, reprogramming, limitations, and changes to continuing 
resolutions prior to appropriation enactment? M (p. 31);

123. Does the core financial system provide the capability to track 
actual amounts and verify commitments and obligations against the 
budget as revised, consistent with each budget distribution level? M 
(p. 32);

124. Does the core financial system provide the capability to modify 
funding distribution (including apportionments and allotments) at 
multiple organizational levels? M (p. 32);

125. Does the core financial system provide the capability to manage 
and control prior-year funds in the current year? M (p. 32);

126. Does the core financial system provide the capability to establish 
and maintain user-defined variance tolerances by document type, 
percentage, and a "not-to-exceed" dollar threshold? M (p. 32);

127. Does the core financial system provide the capability to 
automatically withdraw (or cancel) uncommitted and unobligated 
allotments and suballotments for all or selected TAS/TAFS at the end of 
a specific fiscal period? M (p. 32);

128. Does the core financial system provide the capability to 
automatically withdraw (or cancel) uncommitted and unobligated 
allotments and suballotments for selected organizations at the end of a 
specific fiscal period? M (p. 32);

129. Does the core financial system provide the capability to 
distribute the annual budget in accordance with the latest SF-132, 
Apportionment and Reapportionment Schedule, approved by OMB? M (p. 32);

130. Does the core financial system provide the capability to request 
approval for reprogramming as well as to request additional funds 
outside the periodic budget review process? V (p. 32);

131. Does the core financial system provide the capability to allow 
requests identified in the previous question to be submitted, reviewed, 
revised, and approved, with approval updating current operating 
budgets? V (p. 32);

[End of section]

Functional Requirements: Funds Management Function: Funds control 
process: Funds availability editing: [Footnotes 36, 37]

132. To support the funds availability editing activity, does the core 
financial system provide the capability to establish and modify 
multiple levels of funds control using elements of defined accounting 
classifications, including object class, program, organization, 
project, and fund? M (p. 33);

133. Does the core financial system provide the capability to establish 
and modify the system's response (either reject a transaction or 
provide a warning) to the failure of funds availability edits for each 
transaction type? M (p. 33);

134. Does the core financial system provide the capability to perform 
online inquiry of funds availability prior to the processing of 
spending transactions (commitments, obligations, and expenditures)? M 
(p. 33);

135. Does the core financial system provide the capability to determine 
funds availability based on whether funds cited are current, expired, 
or canceled and record appropriate accounting entries when deobligation 
of expired funding occurs? M (p. 33);

136. Does the core financial system provide the capability to disallow 
the use of deobligated prior-year funds for current year expenditures? 
M (p. 33);

137. Does the core financial system provide the capability to record 
transactions that affect the availability of funds, including 
commitments, obligations, and expenditures? M (p. 33);

138. Does the core financial system have the capability to provide for 
modification to spending documents (commitments, obligations and 
expenditures), including ones that change the dollar amount or the 
accounting classification cited? M (p. 33);

139. Does the core financial system provide the capability to check for 
funds availability when changes are made? M (p. 33);

140. Does the core financial system have the capability to notify users 
online when transactions fail funds availability edits and make the 
rejected transactions [Footnote 38] available for corrective action? M 
(p. 33);

141. Does the core financial system provide the capability to override 
funds availability edits, including automatically releasing and 
processing transactions previously rejected for exceeding user-defined 
tolerances? M (p. 33);

142. Does the core financial system provide the capability to produce a 
report or otherwise notify management of the overobligation of funds? M 
(p. 33);

143. Does the core financial system provide the capability to 
automatically update all appropriate budgetary accounts, tables, or 
both to ensure that the system always maintains and reports the current 
status of funds? M (p. 33);

144. Does the core financial system provide the capability to check for 
funds availability when the obligation exceeds the commitment or when 
the expenditure (upon receipt or disbursement) exceeds the obligation 
due to quantity or price variances, additional shipping charges, etc., 
within tolerances? M (p. 33);

145. Does the core financial system have the capability to provide 
online notification when tolerances are exceeded? M (p. 33);

146. When variances are within tolerances, does the core financial 
system provide the capability to process and adjust the obligation 
accordingly? M (p. 33);

147. Does the core financial system provide the capability to allow for 
available fund balances to be based on reimbursable customer orders 
accepted? M (p. 33);

148. In the case of reimbursable orders from the public, does the core 
financial system provide the capability to ensure that an advance also 
be received before additional funding authority is recorded? M (p. 33);

149. Does the core financial system provide the capability to track all 
activity related to an individual reimbursable agreement? M (p. 33);

150. When recording commitments, obligations, and expenditures incurred 
in support of reimbursable agreements, does the core financial system 
provide the capability to check for funds availability against the 
amount authorized by the agreement and the corresponding start and end 
dates? M (pp. 33 & 34);

151. Does the core financial system provide the capability to record 
and maintain reimbursable agreements (e.g., interagency agreements) so 
that monthly, quarterly, and fiscal-year-to-date as well as inception-
to-date information can be presented? M (p. 34);

152. Does the core financial system provide the capability to 
automatically notify users when funds availability is reduced by 
transactions from external systems (e.g., credit card payments and 
payroll)? V (p. 34);

[End of section]

Functional Requirements: Funds Management Function: Funds control 
process: Commitments: [Footnote 39]

153. To support the commitment activity, does the core financial system 
provide the capability to capture and maintain the following 
information related to each commitment document, including amendments:

a. requisition number,

b. appropriate accounting classification values, and:

c. estimated amounts? M (p. 34);

154. Does the core financial system provide the capability to input 
line item detail for commitment documents, including item description, 
unit price, quantity of goods and services, accounting information, and 
amounts? M (p. 34);

155. Does the core financial system provide the capability to future-
date, store, and automatically post commitment documents at the 
appropriate date? M (p. 34);

156. Does the core financial system provide the capability to subject 
commitment documents to edit and validation procedures prior to 
posting? M (p. 34);

157. Does the core financial system have the capability to provide 
notification when commitment transactions are posted? M (p. 34);

158. Does the core financial system provide the capability to close 
commitments by document and line item under the following 
circumstances:

a. automatically by the system upon issuance of an obligating document,

b. by an authorized user, and:

c. automatically as part of the year-end preclosing process? M (p. 34);

[End of section]

Functional Requirements: Funds Management Function: Funds control 
process: Obligations: [Footnote 40]

159. To support the obligation activity, does the core financial system 
provide the capability to record obligations for which there is no 
related commitment? M (p. 35);

160. Does the core financial system provide the capability to maintain 
information related to obligation documents and related amendments, 
including obligating document number and type, vendor information, 
accounting classification elements, referenced commitment (if 
applicable), and dollar amounts? M (p. 35);

161. Does the core financial system provide the capability to future-
date, store, and automatically post obligation documents at the 
appropriate date? M (p. 35);

162. Does the core financial system provide the capability to subject 
obligation documents to edit and validation procedures prior to 
posting? M (p. 35);

163. Does the core financial system have the capability to provide 
notification when obligation transactions are posted? M (p. 35);

164. Does the core financial system provide the capability to enter 
recurring obligation transactions that will be automatically posted at 
various, intervals, such as monthly, quarterly, or a specific number of 
days determined by the user? M (p. 35);

165. Does the core financial system provide the capability to allow 
multiple commitments to be combined into one obligating document? M (p. 
35);

166. Does the core financial system provide the capability to allow one 
commitment document to be split between multiple obligating documents? 
M (p. 35);

167. Does the core financial system provide the capability to reference 
multiple funding sources on a single commitment or obligation? M (p. 
35);

168. Does the core financial system provide the capability to allow 
authorized modifications and cancellations of posted obligating 
documents? M (p. 35);

169. Does the core financial system provide online access to all 
obligations by selection criteria (e.g., document number, vendor 
number, and accounting classification elements)? M (p. 35);

170. Does the core financial system have the capability to provide the 
capability to maintain an online history file of closed-out documents 
for a user-defined period? M (p. 35);

171. Does the core financial system provide the capability to allow the 
vendor used on an obligation to be different from suggested vendor 
recorded on the related commitment document? M (p. 35);

172. Does the core financial system provide the capability to close 
obligation documents under the following circumstances:

a. automatically, by the system upon final payment for goods or 
services, or:

b. by an authorized user? M (p. 35);

173. Upon the closing of an obligation, does the core financial system 
provide the capability to automatically classify any deobligation of 
excess funds to the appropriate budgetary status (i.e., expired, 
unexpired, available for obligation, or unavailable)? M (p. 35);

174. Does the core financial system provide the capability to record 
and maintain contracts and grants and related financial activity so 
that fiscal year-to-date and inception-to-date information can be 
presented? M (p. 36);

175. Does the core financial system provide the capability to record 
blanket purchase agreements and record, control, and track records of 
call? M (p. 36);

176. Does the core financial system provide the capability to record, 
control, and track delivery orders against a contract limitation? M (p. 
36);

177. Does the core financial system provide the capability to record 
advance payments made, such as travel advances, contract advances, and 
grants? M (p. 36);

178. Does the core financial system provide the capability to ensure 
that an obligation exists prior to recording an advance? M (p. 36);

179. Does the core financial system provide the capability to record 
expenditures claimed against advance payments made, and automatically 
liquidate the advance either partially or fully, as appropriate? M (p. 
36);

180. Does the core financial system provide the capability to allow the 
recording of advance refunds? M (p. 36);

181. Does the core financial system provide the capability to 
automatically link transactions in the spending chain, and bring 
forward accounting and nonfinancial information from one document to 
another, when the previously accepted document is referenced (e.g., 
commitment to obligation or obligation to receiving report)? M (p. 36);

182. Does the core financial system provide the capability to maintain 
the following additional data fields for each obligating document:

a. requester's name,

b. telephone number of requester,

c. contract number/General Services Administration schedule number,

d. deliver to location (e.g., room number or division),

e. comment field,

f. contact name,

g. name of contract officer's technical representative (COTR),

h. COTR telephone number,

i. prompt pay indicator,

j. approval date, and:

k. discount payment terms? V (p. 36);

[End of section]

Functional Requirements: Funds Management Function: Funds control 
process: Analysis: [Footnote 41]

183. To support the analysis activity, does the core financial system 
provide the capability to maintain current information on commitments 
and obligations according to the required accounting classification 
elements? M (p. 36); [Footnote 42]

184. Does the core financial system provide the capability to produce 
detailed listings and summary reports of commitments, obligations, and 
expenditures by the elements of the defined accounting classifications? 
M (p. 36);

185. Does the core financial system have the capability to provide 
control features that ensure that the amounts reflected in the fund 
control structure agree with the related general ledger account 
balances at the end of each update cycle? M (p. 37);

186. Does the core financial system provide the capability to maintain 
historical data on all commitment, obligation, payment, and collection 
transactions? M (p. 37);

187. Does the core financial system provide the capability to maintain 
open documents to show the status of commitments, obligations, 
accruals, and disbursements by document line item? M (p. 37);

188. Does the core financial system provide the ability to perform 
document cross-referencing in which a user can query on any document 
and identify the document numbers of associated transactions in the 
processing "chain"? M (p. 37); [Footnote 43]

[End of section]

Functional Requirements: Payment Management Function: Payee 
information maintenance process: [Footnotes 44, 45]

189. To support the payee information maintenance process, does the 
core financial system provide the capability to maintain payee (vendor) 
information to support obligation, accounts payable, and disbursement 
processes, including the following:

a. vendor name (legal name and "doing business as" (DBA), as 
appropriate);

b. tax identification number (TIN);

c. vendor ID number (agency assigned);

d. data universal numbering system (DUNS) number, including the 
maintenance of the ability to associate multiple DUNS numbers to a TIN;

e. organization type that can accommodate Central Contractor 
Registration (CCR) published business rules for organization types, 
such as sole proprietorship/individual, partnership, or employee;

f. business type that can accommodate CCR published business rules for 
business type, such as federal agency or local government;(continued)g. 
federal versus nonfederal indicator for FACTS reporting;

h. ALC number (for federal vendors);

i. six-digit trading partner code (for federal vendors);

j. multiple payment methods, such as electronic funds transfer (EFT) or 
check;

k. three or more "remit to" addresses (to facilitate payments to 
vendors not required to register in CCR);

l. three or more separate instances of banking information required to 
execute an EFT transaction, such as account and routing transit 
numbers;

m. for CCR vendors (i.e., organizations that are required to register 
in the CCR), DUNS + Four for each instance of banking information;

n. bank account type (checking or savings);

o. three or more contact names and telephone numbers (i.e., accommodate 
contact types defined as "mandatory" in CCR business rules);

p. third-party information, such as payee TIN for notice of assignment, 
as appropriate;

q. subject to prompt pay indicator;

r. Internal Revenue Service (IRS) Form 1099 indicator;(continued):

s. W-2 indicator;

t. CCR indicator (required or exempt);

u. CCR status (i.e., active, inactive, or unregistered);

v. comment field;

w. date of last update; and:

x. User ID of last update? M (Addendum to Core Financial Management 
System, March 31, 2004, p. 2 of 3);

190. Does the core financial system provide the capability to support 
payments made to third parties (payees) that act as agents for the 
payee (vendor)? M (p. 39);

191. Does the core financial system provide the capability to maintain 
information needed to produce IRS Forms 1099 for the principal party 
rather than the agent? M (p. 39);

192. Does the core financial system provide the capability to prevent 
the duplicate entry of vendor records (e.g., by editing vendor ID 
numbers or vendor names.)? M (p. 39);

193. Does the core financial system have the capability to provide an 
online warning message to the user when duplication is identified? M 
(p. 39);

194. Does the core financial system provide the capability to track and 
maintain a history of changes to the vendor file, including vendor 
additions and purges, and changes to vendor-specific information, such 
as payment address, bank account and routing information, and payment 
type? M (p. 39);

195. Does the core financial system provide the capability to maintain 
an audit trail of payments made to historical vendor information? M (p. 
39);

196. Does the core financial system provide the capability to query and 
report on payee information by user-defined criteria, such as payee 
name, payee number, and IRS Form 1099 reporting status? M (p. 40);

197. Does the core financial system provide the capability to activate 
and deactivate vendors that meet user-selected criteria (e.g., length 
of time with no activity)? M (p. 40);

198. To support an agency's use of CCR by providing the ability to 
import and automatically process data that are pertinent to the core 
financial system, does the system provide the capability to:

a. automatically update the mandatory payee information [Footnote 46] 
in existing vendor records to reflect the relevant changes contained in 
the daily updates provided by the CCR via extract files;

b. accommodate the data definitions (e.g., data types, field names, and 
field lengths) used in CCR for all fields that are common in both the 
CCR and the core vendor file;

c. prevent users' from manually updating the data fields [Footnote 47] 
that relate to vendors that are required to register in the CCR? M 
(Addendum to Core Financial Management System, March 31, 2004, p. 3 of 
3);

[End of section]

Functional Requirements: Payment Management Function: Payment 
warehousing process: [Footnote 48]

199. To support the payment warehousing process, does the core 
financial system provide the capability to record an accrued liability 
upon receipt and acceptance of goods and services and properly identify 
the item as a capital asset, expense, prepaid expense, or construction 
in progress? M (p. 40);

200. Does the core financial system provide the capability to record 
"full" or "partial" receipt and acceptance of goods and services by 
line item? M (p. 40);

201. Does the core financial system provide the capability to 
automatically update the funds control and budget execution balances to 
reflect changes in the status of obligations and expended 
appropriations, as well as changes in amounts? M (p. 40);

202. Does the core financial system provide the capability to warehouse 
payment vouchers for future scheduling? M (p. 40);

203. Does the core financial system provide the capability to allow a 
warehoused payment to be modified, canceled, and put on hold? M (p. 
40);

204. Does the core financial system provide the capability to 
automatically match invoices to obligations and receiving reports by 
document and line item? M (p. 41);

205. Does the core financial system have the capability to provide for 
two-way matching (obligation and invoice) and three-way matching 
(obligation, receiving report, and receipt of invoice)? M (p. 41);

206. Does the core financial system provide the capability to process 
"obligate and pay" transactions where payment scheduling and obligation 
occur simultaneously? M (p. 41);

207. Does the core financial system provide the capability to reference 
multiple obligations on a single invoice document? M (p. 41);

208. Does the core financial system provide the capability to set up 
recurring payments in the system and automatically schedule items 
(e.g., contracts or leases) for payment on an interval determined by 
the user (i.e., weekly, biweekly, monthly, quarterly, or a specified 
number of days)? M (p. 41);

209. Does the core financial system provide the capability to modify 
recurring payment information for changes in agreement terms, amounts, 
frequency, and so forth? M (p. 41);

210. Does the core financial system provide the capability to capture, 
store, and process the following information for each vendor invoice, 
for audit trail, research, and query purposes:

a. invoice number;

b. invoice date;

c. invoice receipt date;

d. invoice due date;

e. invoice amount;

f. unit price and quantity;

g. description;

h. discount terms, as applicable;

i. obligating document reference(s); and:

j. vendor identification number and address code? M (p. 41);

211. Does the core financial system provide the capability to edit the 
TIN field to ensure that it is a nine-digit numeric field, does not 
include dashes, and is not all zeroes? M (p. 41);

212. Does the core financial system provide the capability to allow for 
overriding for agency-specific requirements for the TIN field? M (p. 
41);

213. Does the core financial system provide the capability to 
accommodate an invoice number field of up to 30 characters or the 
current requirement of I TFM-6-5000, Administrative Accounting System 
Requirements? M (p. 41);

214. Does the core financial system provide the capability to determine 
the due date and amount of vendor payments in accordance with Title 5, 
Part 1315 of the C.F.R., which states, in part, that for agencies 
subject to prompt payment requirements, payment is due on one of the 
following dates:

a. 30 days after the receipt of a proper invoice for services and 
nondairy products,

b. 10 days after the receipt of a proper invoice for dairy products,

c. the date specified in the contract,

d. in accordance with discount terms when discounts are offered and 
taken, or:

e. in accordance with accelerated payments methods? M (p. 41);

215. Does the core financial system provide the capability to manually 
override a system-calculated payment due date? M (p. 41);

216. Does the core financial system provide the capability to split an 
invoice into multiple payments on the appropriate due dates when items 
on the invoice have different due dates or discount terms? M (p. 41);

217. Does the core financial system provide the capability to record 
discount terms and automatically determine whether taking the discount 
is economically justified as defined in I TFM-6-8040, Disbursements? M 
(p. 41);

218. Does the core financial system provide the capability to record 
additional shipping and other charges to adjust the payment amount, if 
they are authorized and within variance tolerances? M (p. 42);

219. Does the core financial system provide the capability to record 
obligations, expenses, assets, and so forth associated with payments 
made through use of imprest funds, third-party drafts, and government 
credit cards? M (p. 42);

220. Does the core financial system provide the capability to establish 
payables to replenish the imprest fund? M (p. 42);

221. Does the core financial system provide the capability to record 
detailed transactions associated with credit card purchases? M (p. 42);

222. Does the core financial system provide the capability to allow 
users to change accounting classification information by line item for 
specific transactions involving credit card purchases? M (p. 42);

223. Does the core financial system provide the capability to schedule 
payments of advances, prepaid expenses, loans, and grants, with the 
appropriate accounting entries for each? M (p. 42);

224. Does the core financial system provide the capability to establish 
payables and make payments on behalf of another agency, citing the 
other agency's funding information? M (p. 42);

225. For each disbursement made on behalf of another agency, does the 
core financial system have the capability to provide the information 
required [Footnote 49] by central agency systems [Footnote 50] to the 
appropriate central agency system? M (p. 42);

226. Does the core financial system provide the capability to record 
expense or assets when goods have been received, or services have been 
performed, for items that were funded by advances, prepaid expenses, 
and grants as well as make the appropriate liquidations? M (p. 42);

227. Does the core financial system provide the capability to verify 
funds availability and to automatically update funds control account 
balances, table balances, or both to reflect obligation changes? M (p. 
42);

228. Does the core financial system provide the capability to indicate 
if a payment is "partial" or "final"? M (p. 42);

229. If payment is final, does the core financial system provide the 
capability to automatically deobligate any unliquidated balances? M (p. 
42);

230. Does the core financial system provide the capability to 
automatically generate a payment voucher if the purchase order matches 
the receiver information, and provide this option as a function of the 
matching process? V (p. 42);

231. Does the core financial system provide the capability to use the 
fast payment clause indicator on the obligating document to determine 
whether an accelerated payment is to be made? V (p. 42);

232. Does the core financial system provide the capability to compare 
discount terms on the invoice with discount terms on the related 
obligating document? V (p. 42);

233. In comparing discount terms on the invoice with discount terms on 
the related obligating document, does the core financial system provide 
the capability to notify the user when differences are identified? V 
(p. 42);

234. Does the core financial system have the capability to provide a 
system-generated letter or e-mail to the vendor stating the reason for 
rejection or "notice of intent to disallow" an invoice within 7 days of 
receipt of invoice? V (p. 42);

[End of section]

Functional Requirements: Payment Management Function: Payment 
execution process: [Footnote 51]

235. To support the payment execution process, does the core financial 
system provide the capability to automatically identify and select 
payments to be disbursed in a particular payment cycle based on their 
due dates? M (p. 43);

236. Does the core financial system have the capability to provide for 
online review and certification by an authorized certifying officer? M 
(p. 43);

237. Does the core financial system provide the capability to 
automatically compute amounts to be disbursed, including discounts, 
interest, and penalties, in accordance with Title 5, Part 1315, of the 
C.F.R.? M (p. 43);

238. Does the core financial system provide the capability to generate 
the appropriate transactions to reflect the payment deductions and 
additions? M (p. 43);

239. Does the core financial system provide the capability to 
automatically apply interest and discounts across multiple accounting 
lines on an invoice in the same rule used to apply the original 
payment? M (p. 43);

240. Does the core financial system provide the capability to apply the 
appropriate Treasury interest rate tables (e.g., prompt pay rate and 
current value of funds rate)? M (p. 43);

241. Does the core financial system provide the capability to capture 
prompt payment information required by Title 5, Part 1315, of the 
C.F.R., including discounts taken, discounts lost, and interest paid? M 
(p. 43);

242. Does the core financial system provide the capability to 
automatically include relevant identification information on each 
remittance, including:

a. vendor invoice number(s);

b. obligating document number or other reference number; and:

c. discount, interest, and offset amounts, as applicable? M (p. 43);

243. Does the core financial system provide the capability to record 
user comments for each voucher/invoice? M (p. 43);

244. Does the core financial system have the capability to provide for 
up to 9,999 line items per invoice? M (p. 43);

245. Does the core financial system provide the capability to record 
reason codes for returned and adjusted invoices, lost discounts, and 
late payments? M (p. 43);

246. Does the core financial system provide the capability to track the 
status of invoices in the payment process, including those that were 
not accepted and returned to the vendor and those that are awaiting 
administrative approval? M (p. 43);

247. Does the core financial system provide the capability to maintain 
the time and aging of approvals in relation to payments? M (p. 43);

248. Does the core financial system have the capability to provide for 
various forms of payment to be used (i.e., check or EFT)? M (p. 43); 
[Footnote 52]

249. Does the core financial system provide the capability to capture, 
store, and process information needed to create EFT payments in 
accordance with Treasury standards, including the following:

a. American Bankers Association Routing Transit Number (RTN),

b. recipient bank account number, and:

c. bank account type (checking or savings)? M (p. 43);

250. In processing information needed to create EFT payments in 
accordance with Treasury standards, does the core financial system also 
provide the capability to identify employees versus companies to ensure 
use of correct Automated Clearing House (ACH) formats? M (p. 43);

251. Does the core financial system provide the capability to generate 
ACH payments in the following formats:

a. corporate trade exchange (CTX) (820 or Flat File),

b. cash concentration or disbursement (CCD),

c. cash concentration or disbursement plus addendum (CCD+),

d. prearranged payment and deposit (PPD), and:

e. prearranged payment and deposit plus addendum (PPD+)? M (p. 43);

252. Does the core financial system provide the capability to ensure 
that employee ACH payments are generated only as PPD or PPD+ payments? 
M (p. 44);

253. Does the core financial system provide the capability to ensure 
that vendor ACH payments are generated only as CCD, CCD+, or CTX 
formats? M (p. 44);

254. Does the core financial system provide the capability to prohibit 
the creation of an ACH payment in any format (PPD, PPD+, CCD+, or CTX) 
that does not contain a RTN and an account number? M (p. 44);

255. Does the core financial system provide the capability to 
consolidate multiple payments to a single payee in accordance with TFM 
prescribed limitations? M (p. 44); [Footnote 53]

256. Does the core financial system provide the capability to itemize 
all payments covered by the one check or EFT (CTX only), while allowing 
for separate checks to a payee? M (p. 44);

257. Does the core financial system provide the capability to create 
check files and EFT payment files in all formats [Footnote 54] using 
different media? M (p. 44); [Footnote 55]

258. Does the core financial system provide the following edits on the 
RTN field:

a. prohibition of fewer or more than nine characters,

b. allowance for only numeric characters, and:

c. prohibition of the entry of all zeroes in this field? M (p. 44);

259. Does the core financial system provide the capability to edit RTNs 
against the data supplied in the financial organization master file (or 
other verified update file) to ensure the validity of the check digit 
(Modulus 10 check)? M (p. 44);

260. Does the core financial system provide the capability to edit the 
invoice number field to ensure it is populated? M (p. 44);

261. Does the core financial system provide the capability to prohibit 
the generation of a (vendor) payment that does not contain properly 
structured remittance information on the addendum? M (p. 44);

262. Does the core financial system provide the capability to generate 
multiple payments using the same invoice number to accommodate utility 
and telecommunication companies' use of an account number as a 
recurring invoice number? M (p. 44);

263. Does the core financial system provide the capability to edit the 
ALC field to ensure it is an eight-digit numeric field, and does it 
allow for override? M (p. 44); [Footnote 56]

264. Does the core financial system provide the capability to create 
one check file regardless of payee type, be it employee or vendor? M 
(p. 44);

265. Does the core financial system provide the capability to combine 
payment files from multiple ALCs into a single file for transmission to 
Treasury? M (p. 44);

266. Does the core financial system provide the capability to provide 
summary totals (i.e., items and dollars) by ALC and for the entire file 
for certification purposes? M (p. 44);

267. Does the core financial system provide the capability to make CTX 
payments using a separate file? M (p. 44);

268. Does the core financial system provide the capability to balance 
CTX payment transactions (i.e., the sum of all the remittance records 
must equal the transaction total)? M (p. 44);

269. For CTX payment transactions, does the core financial system 
provide the capability for the file to include a valid settlement date 
(i.e., next business day or later)? M (p. 44);

270. For CTX payment transactions, does the core financial system 
provide the capability for the file to accommodate the inclusion of 
credit memorandums? M (p. 44);

271. Does the core financial system provide the capability to schedule 
and disburse U.S. dollar payments (SF 1166) through Treasury's 
Electronic Certification System (ECS)? M (p. 44);

272. For U.S. dollar payments through the Treasury's ECS, does the core 
financial system provide the capability to limit each schedule to 60 
payments and each ECS terminal to 100 schedules per day? M (p. 44);

273. Does the core financial system provide the capability to process 
payment transactions from other systems, such as payroll and travel? M 
(p. 45);

274. Does the core financial system provide the capability to identify 
whether a disbursement has already been made and record the appropriate 
accounting entries? M (p. 45);

275. Does the core financial system provide the capability to schedule 
those disbursements not already made for payment through the core 
financial system? M (p. 45);

276. Does the core financial system provide the capability to 
automatically generate transactions to reflect disbursement activity 
initiated by other agencies and recorded in central agency electronic 
systems (such as the On-line Payment and Collection System and the 
Intra-governmental Payment and Collection System (IPAC)? M (p. 45);

277. Does the core financial system provide the capability to capture 
related information [Footnote 57] required by the central agency system 
for each transaction? M (p. 45);

278. Does the core financial system provide the capability to flag 
vouchers selected for payment that will disburse a fund into a negative 
cash position? M (p. 45); [Footnote 58]

279. Does the core financial system provide the capability to process 
credit memorandums for returned goods or other adjustments? M (p. 45);

280. Does the core financial system provide the capability to apply the 
credit to the specific obligation that resulted in the credit, reducing 
the expenditure attributed to that obligation? M (p. 45);

281. If a credit is not fully liquidated by one payment, does the core 
financial system provide the capability to maintain the balance of the 
credit (e.g., as an account receivable) for application against a 
future payment? M (p. 45);

282. Does the core financial system provide the capability to create 
the appropriate notice to the vendor that a credit has been applied to 
the affected payment? M (p. 45);

283. Does the core financial system provide the capability to apply 
credits against subsequent disbursements to the same vendor regardless 
of the funding source? M (p. 45);

284. Does the core financial system provide the capability to allow for 
the exclusion of payments from agency offset based on user-defined 
criteria, including funding source, object class, vendor type, and 
vendor number? M (p. 45);

285. Does the core financial system provide the capability to provide, 
generate, and maintain a sequential numbering system for scheduling 
payments to the disbursing office? M (p. 45);

286. Does the core financial system provide the capability to assign 
different schedule number ranges for different payment types, such as 
travel schedules, transportation schedules, payroll schedules, and 
vendor schedules? M (p. 45);

287. Does the core financial system provide the capability to require 
each payment schedule number to be unique? M (p. 45);

288. Does the core financial system provide the capability to report 
totals by TAS/TAFS on each payment schedule/file? M (p. 45);

289. Does the core financial system provide the capability to cancel an 
entire payment schedule, or a single payment within a payment schedule, 
prior to transmission to Treasury; allow for reversal of an entire 
schedule in a single, interactive action; and perform the appropriate 
accounting reversals? M (p. 45);

290. Does the core financial system provide the capability to cancel an 
entire payment schedule prior to actual disbursement by or upon 
rejection by Treasury; allow for reversal of an entire schedule in a 
single, interactive action; and perform the appropriate accounting 
reversals? M (p. 45);

291. When consolidating multiple payments to a single payee, does the 
core financial system provide the capability to include the TAS/TAFS 
associated with each payment in the payment file? V (p. 45);

292. When combining payment files for multiple ALCs into a single file 
for transmission to Treasury, does the core financial system provide 
the capability to provide summary totals by TAS/TAFS? V (p. 45);

293. Does the core financial system provide the capability to provide 
National Automated Clearing House Association payment formats for non-
Treasury disbursing offices? V (p. 46);

294. Does the core financial system provide the capability to split a 
single payment into separate bank accounts? V (p. 46); [Footnote 59]

295. Does the core financial system have the capability to provide 
statistical sampling capabilities to support agency payment 
certification? V (p. 46);

296. Does the core financial system provide the capability to identify 
and report payment and deposit amounts at a level of detail suitable 
for reporting large-dollar notifications, as described in I TFM-6-8500, 
Cash Forecasting Requirements? V (p. 46);

[End of section]

Functional Requirements: Payment Management Function: Payment 
confirmation and follow-up process: [Footnote 60]

297. To support the payment confirmation and follow-up process, does 
the core financial system have the capability to provide information 
about each payment to reflect the stage of the scheduling process that 
the payment has reached and the date each step was reached for the 
following processing steps:

a. payment scheduled,

b. schedule sent to appropriate disbursing office, and:

c. payment issued by appropriate disbursing office? M (p. 46);

298. For each payment made, does the core financial system provide the 
capability to maintain a history of the following information:

a. vendor invoice number;

b. invoice amount;

c. vendor identification number;

d. vendor name;

e. payment address or banking information;

f. payment amount;

g. interest paid, when applicable;

h. discount taken, when applicable;

i. offset made, when applicable;

j. payment method, such as check or EFT;

k. referenced obligation number; and:

l. appropriation charged? M (p. 46);

299. Does the core financial system provide the capability to 
automatically update the payment information when confirmation is 
received from the disbursing office, including the paid schedule 
number, payment date, and check number or trace number? M (p. 46);

300. Does the core financial system provide the capability to 
automatically liquidate the in-transit amount and reclassify budgetary 
accounts from unpaid to paid when the payment confirmation updates the 
system? M (p. 47);

301. Does the core financial system provide the capability to record 
more than one check range for a payment schedule, along with a break in 
check numbers? M (p. 47);

302. Does the core financial system have the capability to provide 
online access to vendor and payment information? M (p. 47);

303. Does the core financial system have the capability to provide 
online access to open documents based on agency selection criteria, 
including the accounting classification elements, document number, and 
vendor number? M (p. 47);

304. Does the core financial system provide the capability to reverse 
disbursement transactions for voided checks or for other payments that 
have not been negotiated? M (p. 47);

305. Does the core financial system provide the capability to produce 
IRS Forms 1099 [Footnote 61] in accordance with IRS regulations 
[Footnote 62] and current IRS acceptable format, including hard copy 
and electronic form? M (p. 47);

306. Does the core financial system provide the capability to 
electronically download monthly "Fund Balance with Treasury" and 
activity recorded by Treasury (and related warrant information) for 
comparison to cash activity in the agency's general ledger, and can the 
system produce a report of differences? M (p. 47);

307. Does the core financial system provide the capability to include 
the TAS/TAFS charged and the associated amount(s) in the history of 
each payment made by the core financial system? V (p. 47);

308. Does the core financial system have the capability to provide an 
automated interface to the Department of the Treasury system containing 
paid schedule data? V (p. 47); [Footnote 63]

309. Does the core financial system have the capability to provide 
written notification to payees (e.g., vendors and travelers) of 
payments made by disbursing offices? V (p. 47);

310. Does the core financial system provide the capability to allow for 
agency flexibility in defining the contents of the notifications? V (p. 
47);

311. Does the core financial system have the capability to provide e-
mail notification to employees of travel payments made by disbursing 
office? V (p. 47);

312. Does the core financial system provide the capability to track and 
report on aged, unmatched vendor invoices? V (p. 47);

313. Does the core financial system provide the capability to track and 
report on spending agencywide by state and congressional district? V 
(p. 47);

[End of section]

Functional Requirements: Receivable Management Function: Customer 
information maintenance process: [Footnotes 64, 65]

314. To support the customer information maintenance process, does the 
core financial system provide the capability to maintain customer 
information to support receivable management processes, including, at a 
minimum the following:

a. customer name,

b. customer ID number,

c. customer type (federal agency, state/local government, commercial 
entity, individual, or employee),

d. TIN,

e. customer address,

f. contact names,

g. contact telephone number,

h. federal versus nonfederal indicator,(continued)i. six-digit trading 
partner codes,

j. ALC number (for federal customers),

k. IRS Form 1099 indicator,

l. comment field,

m. date of last update,

n. user ID of last update, and:

o. DUNS number? M (p. 49);

315. Does the core financial system provide the capability to maintain 
customer account information for audit trail purposes and to support 
billing, reporting, and research activities, including the following:

a. account number;

b. account balance;

c. associated customer ID number;

d. date due and age of accounts receivable; and:

e. reimbursable order number, travel order number, and so forth, where 
applicable? M (p. 49);

[End of section]

Functional Requirements: Receivable Management Function: Receivable 
establishment process: [Footnote 66]

316. To support the receivable establishment process, does the core 
financial system provide the capability to record the establishment of 
receivables along with the corresponding revenues, expense reductions, 
or other offsets? M (p. 50);

317. Does the core financial system provide the capability to accept 
transactions that generate receivables from other systems in a standard 
format for entry into the core financial system? M (p. 50);

318. Does the core financial system provide the capability to support 
the calculation and establishment of accounts receivable based upon 
billing source, event and time period, and type of claim? M (p. 50);

319. Does the core financial system provide the capability to 
automatically generate related bills [Footnote 67] to customers? M (p. 
50);

320. Does the core financial system provide the capability to establish 
receivables and credit memorandums from vendors to which the agency has 
made duplicate or erroneous payments? M (p. 50);

321. Does the core financial system provide the capability to uniquely 
identify multiple types of bills (e.g., overpayment and user-fee-based) 
and the supporting data used to verify the specific charges? M (p. 50);

322. Does the core financial system provide the capability to 
automatically establish receivables to be paid under installment plans, 
including plans for which payments have been rescheduled? M (p. 50);

323. Does the core financial system provide the capability to generate 
flexible repayment schedules for delinquent indebtedness? M (p. 50);

324. Does the core financial system provide the capability to record 
billings and collections by line item in order to identify unique 
accounting classification codes? M (p. 50);

325. Does the core financial system provide the capability to support 
bills and collections between federal agencies through the use of 
electronic systems, such as IPAC? M (p. 50);

326. Does the core financial system have the capability to provide 
supporting data to agencies billed that can be used to verify the 
charges? M (p. 50);

327. Does the core financial system provide the capability to print 
bills, accommodating the generation of standard forms, such as SF-1080s 
or SF-1081s, and turnaround documents to be used as remittance advice? 
M (p. 50);

328. Does the core financial system provide the capability to allow for 
customized text in generated billing documents? M (p. 50);

329. Does the core financial system provide the capability to date the 
bills with the system-generated date or with the date supplied by the 
user? M (p. 50);

330. Does the core financial system provide the capability to 
consolidate multiple accounts receivable for a customer onto one bill? 
M (p. 50);

331. Does the core financial system provide the capability to allow 
transactions related to manually prepared bills to be entered by 
authorized personnel? M (p. 51);

332. Does the core financial system provide the capability to record 
adjustments to bills and post to customer accounts? M (p. 51);

333. Does the core financial system provide the capability to generate 
monthly statements to customers showing account activity? M (p. 51);

[End of section]

Functional Requirements: Receivable Management Function: Debt 
management process: [Footnote 68]

334. To support the debt management process, does the core financial 
system provide the capability to maintain data on individual 
receivables and referenced transactions supporting the receivable? M 
(p. 51);

335. Does the core financial system provide the capability to maintain 
accounts for reimbursable orders and identify government and 
nongovernment accounts that are designated as advance funding? M (p. 
51);

336. Does the core financial system provide the capability to update 
each customer account when:

a. billing documents are generated;

b. collections are received;

c. interest, penalty, or administrative fees are applied; and:

d. amounts are written off or offset? M (p. 51);

337. Does the core financial system provide the capability to 
automatically calculate interest charges using the appropriate Treasury 
late payment charge rate and user-defined criteria, such as customer 
and customer type? M (p. 51);

338. Does the core financial system provide the capability to 
automatically generate a separate line item for interest charges on the 
customer bill? M (p. 51);

339. Does the core financial system provide the capability to allow the 
user to specify administrative and penalty amounts and record these 
amounts to different accounting classification elements, for which the 
principle amount is recorded? M (p. 51);

340. Does the core financial system provide the capability to 
automatically apply these charges to customer accounts and generate 
separate line items for the charges on the customer bills? M (p. 51);

341. Does the core financial system provide the capability to 
automatically generate dunning (collection) letters for overdue 
receivables when accounts become delinquent, and incorporate, as 
appropriate, due process notices for referring delinquent accounts? M 
(p. 51);

342. Does the core financial system provide the capability to customize 
the dunning process parameters and dunning letter text? M (p. 51);

343. Does the core financial system provide the capability to provide 
information on the age of receivables to allow for management and 
prioritization of collection activities? M (p. 51);

344. For receivables aging, does the core financial system provide the 
capability to include aging information on individual receivables and 
on a summary basis, such as by customer, type of customer, fund, and 
general ledger account? M (pp. 51 & 52);

345. Does the core financial system provide the capability to identify 
and report receivables that meet predetermined criteria for write-off 
or referral and generate the appropriate entries? M (p. 52);

346. Does the core financial system provide the capability to 
automatically calculate (as a percentage of gross receivables or 
related revenues) and record the allowance for loss on accounts 
receivable? M (p. 52);

347. Does the core financial system have the capability to provide 
information to allow for the automated reporting of delinquent accounts 
to commercial credit bureaus? M (p. 52);

348. Does the core financial system provide the capability to 
automatically create files of delinquent accounts for electronic 
submission to collection agencies and appropriate governmental 
organizations? M (p. 52);

349. Does the core financial system provide the capability to maintain 
data for receivables referred to other federal agencies and outside 
organizations for collection? M (p. 52);

350. Does the core financial system provide the capability to record 
the waiver and write-off of receivables, including interest, penalties, 
and administrative charges? M (p. 52);

351. Does the core financial system provide the capability to maintain 
data to monitor closed accounts? M (p. 52);

352. Does the core financial system provide the capability to track and 
report on the date and nature of a change in the status of an account 
receivable, including the following:

a. in forbearance or in formal appeals process,

b. in foreclosure,

c. in wage garnishment,

d. rescheduled,

e. waived/unwaived,

f. eligible for referral to Treasury for offset,

g. referred to Treasury for offset,

h. eligible for internal offset,

i. eligible for referral to Treasury or a designated debt collection 
enter for cross-servicing,

j. referred to Treasury for cross-servicing,

k. referred to a private collection agency,

l. referred to the Department of Justice,

m. offset,

n. suspended,

o. compromised,

p. written-off, and:

q. closed out? M (p. 52);

353. Does the core financial system provide the capability to perform 
online queries of account activity (billing, collection, and 
adjustment) by customer and receivable? M (p. 52);

354. Does the core financial system provide the capability to perform 
online queries of miscellaneous cash receipts (applied to any Treasury 
fund symbol) by customer, when identified, and by accounting period? M 
(p. 52);

355. Does the core financial system provide the capability to uniquely 
record, classify, and report on reimbursable funds, based on customer 
and customer agreement number, including:

a. billing limit,

b. amount obligated,

c. amount expended,

d. amount billed,

e. advanced amount (unearned revenue), and:

f. earnings and collections received? M (pp. 52 & 53);

356. Does the core financial system provide the capability to support 
the ability to query and report on the items referred to in the 
previous question by any of the accounting classification elements, 
such as fund or object class? M (p. 53);

357. Does the core financial system provide the capability to 
automatically produce IRS Form 1099-Cs in the amounts of debts forgiven 
that meet or exceed a user-defined dollar threshold? M (p. 53); 
[Footnote 69]

[End of section]

Functional Requirements: Receivable Management Function: Collection 
process: [Footnote 70]

358. To support the collections process, does the core financial system 
provide the capability to automatically record the application of 
complete and partial payments made by the debtor on a delinquent debt 
to administrative fees, penalties, interest, and then to principal, 
unless otherwise stated in program statute? M (p. 53);

359. Does the core financial system provide the capability to record 
revenues, expenditure reductions, or other appropriate offsets 
associated with collections for which no receivable was previously 
established? M (p. 53);

360. Does the core financial system provide the capability to apply 
collections [Footnote 71] back to the specific contract or purchase 
order award to reduce cumulative payments and expenditures? M (p. 53);

361. Does the core financial system provide the capability to record 
the receipt of an advance repayment and an advance from others with a 
reference to the related reimbursable agreement obligation, regardless 
of whether an account receivable was previously established? M (p. 53);

362. Does the core financial system provide the capability to process 
cash or credit card collections? M (p. 53);

363. Does the core financial system provide the capability to match 
collections to the appropriate receivables and update related bills and 
customer accounts? M (p. 53);

364. Does the core financial system provide the capability to record 
information associated with a collection at the time funds are applied 
to an open receivable document, including the deposit ticket number and 
date and ALC? M (p. 53);

365. Does the core financial system provide the capability to support 
the receipt of collection files from banks for application to open 
receivables? M (p. 53);

366. Does the core financial system provide the capability to record 
collections received against advance payments made? M (p. 53);

367. Does the core financial system provide the capability to apply 
collections to more than one receivable? M (p. 53);

368. Does the core financial system provide the capability to reopen 
closed accounts to record collections after a waiver or write-off of a 
receivable has been recorded? M (p. 53);

369. Does the core financial system provide the capability to 
electronically download monthly deposit and debit voucher confirmation 
information from Treasury and the banking system for comparison to 
activity in the agency's general ledger, and produce a report of 
differences? M (p. 54);

370. Does the core financial system provide the capability to support 
the receipt of payment offset information from Treasury? M (p. 54);

371. Does the core financial system provide the capability to apply 
offset collections to open receivables and generate the appropriate 
accounting entries to record the collection? M (p. 54);

372. Does the core financial system have the capability to 
automatically offset payments to vendors for amounts due to the agency? 
M (p. 54); [Footnote 72]

373. When an entire payment is offset, does the core financial system 
provide the capability to create the appropriate notice to the vendor 
that the offset has been made? M (p. 54);

374. Does the core financial system provide the capability to record 
TAS/TAFS(s) associated with collections received on deposit tickets and 
debit vouchers? V (p. 54);

375. When downloading monthly deposit and debit voucher confirmation 
information from Treasury and the banking system for comparison to the 
agency general ledger, does the core financial system provide the 
capability to include both the TAS/TAFS(s) and the associated 
amount(s)? V (p. 54);

376. Does the core financial system provide the capability to interface 
with CA$HLINK, [Footnote 73] in order to reconcile Treasury recorded 
collections to the collections recorded in the core financial system 
and generate exception reports? V (p. 54);

[End of section]

Functional Requirements: Cost Management Function: Cost setup and 
accumulation process: [Footnotes 74, 75]

377. To support the cost setup and accumulation process, does the core 
financial system provide the capability to use the agency's accounting 
classification elements to identify and establish unique cost objects 
for the purpose of cost and revenue capture, accumulation, and 
reporting? M (p. 56);

378. Does the core financial system provide the capability to allocate 
and distribute the full cost [Footnote 76] and revenue of cost objects 
as defined in Statement of Federal Financial Accounting Standard 
(SFFAS) No. 4? M (p. 56);

379. Does the core financial system provide the capability to allocate 
and distribute the full cost of goods and services provided by one 
federal entity to another? M (p. 56);

380. Does the core financial system provide the capability to track 
current cost information against prior month and prior year-to-date 
cost data for selected cost objects as well as to track progress 
against predetermined plans? M (p. 56);

381. Does the core financial system provide the capability to identify 
all costs incurred by the agency in support of activities of revolving 
funds, trust funds, or commercial functions, including the applicable 
portions of any related salaries and expense accounts identified with 
those activities? M (p. 56);

382. Does the core financial system provide the capability to 
accumulate nonfinancial data relating to cost objects, such as output 
units, to allow the calculation of both total and unit costs? M (p. 
56);

383. Does the core financial system provide the capability to transfer 
and trace cost data directly to and from other cost systems/
applications that produce or allocate cost information? M (p. 56);

384. Does the core financial system provide the capability to calculate 
prices, fees, and user charges for reimbursable agreements and other 
purposes using full cost, consistent with the guidance of OMB Circular 
No. A-25, User Charges? M (p. 56);

[End of section]

Functional Requirements: Cost Management Function: Cost recognition 
process: [Footnote 77]

385. To support the cost recognition process, does the core financial 
system provide the capability to use the accrual basis of accounting 
when recognizing costs and revenue? M (p. 57);

386. Does the core financial system provide the capability to recognize 
costs in the period when the events occurred regardless of when 
ordered, received, or paid for? M (p. 57);

387. Does the core financial system provide the capability to recognize 
revenue when earned? M (p. 57);

388. Does the core financial system provide the capability to associate 
with the appropriate cost objects the reductions of balances, such as 
inventories, prepaid expenses, and advance payments, as the balances 
are used or liquidated? M (p. 57);

389. Does the core financial system provide the capability to identify 
and record costs incurred by each cost object, including input of costs 
from feeder systems, such as inventory, travel, property management 
(depreciation), or payroll? M (p. 57);

390. Does the core financial system provide the capability to assign 
indirect costs on a cause-and-effect basis or allocate costs through 
any reasonable and consistent basis, such as a percentage of total cost 
incurred, direct labor hours used, square footage, or metered usage? M 
(p. 57);

391. Does the core financial system provide the capability to perform 
multilayer overhead distributions that are user defined (at least three 
levels of distribution), using multiple rates, fixed amount, and other 
appropriate allocation methods? M (p. 57);

[End of section]

Functional Requirements: Cost Management Function: Cost distribution 
process: [Footnote 78]

392. To support the cost distribution process, does the core financial 
system provide the capability to distribute information [Footnote 79] 
on costs and revenue associated with cost objects? M (p. 58);

393. Does the core financial system have the capability to provide 
consistent information [Footnote 80] on financial, budget, and program 
matters in different reports? M (p. 58);

394. Does the core financial system provide the capability to use 
historical information to conduct variance and time-series analyses and 
to demonstrate the fairness and appropriateness of rates and charges 
that are based on actual historical costs? M (p. 58);

395. Does the core financial system provide the capability to 
distribute costs to other cost objects regardless of how they were 
originally assigned? M (p. 58);

396. Does the core financial system have the capability to provide an 
audit trail that traces a transaction from its origin to the final cost 
object(s)? M (p. 58);

[End of section]

Functional Requirements: Cost Management Function: Working capital and 
revolving fund process: [Footnote 81]

397. To support the revolving fund function, does the core financial 
system provide the capability to use cost management in revolving 
funds, including working capital programs? M (p. 58);

398. Does the core financial system provide the capability to allocate 
working capital and revolving fund costs across organization and 
program lines and generate appropriate journal entries? M (p. 58);

399. Does the core financial system provide the capability to create 
and track the funding associated with cost objects [Footnote 82] and 
provide funding status on fiscal-year-to-date and project-inception-
to-date bases? M (p. 58);

400. Does the core financial system provide the capability to support 
the aggregation of project cost and funding information to a higher 
level? M (p. 58); [Footnote 83]

401. Does the core financial system provide the capability to verify 
funds availability for orders placed against a specific contract, work 
order, or agreement for a particular customer of the revolving fund 
operation? M (p. 59);

[End of section]

Functional Requirements: Cost Management Function: Working capital and 
revolving fund process:

402. Does the core financial system provide the capability to support 
funding of revolving fund contracts, work orders, and projects through 
the use of advances, prepayments, or reimbursements? M (p. 59);

[End of section]

Functional Requirements: Reporting Function: General reporting 
process: [Footnotes 84, 85]

403. To support the financial reporting process, does the core 
financial system provide the capability to produce reports and 
transmittable files using data maintained by the core financial 
management system? M (p. 60);

404. Does the core financial system provide the capability to report on 
financial activity by any element of accounting classification? M (p. 
60); [Footnote 86]

405. Does the core financial system provide the capability to report 
the financial information required for program management performance 
reporting? V (p. 61);

[End of section]

Functional Requirements: Reporting Function: External reporting:

406. To support the external reporting process, does the core financial 
system have the capability to provide data in hard copy and the 
electronic formats required by the Department of the Treasury for the 
following reports:

a. Financial Management Service (FMS) Form 224, Statement of Cash 
Transactions;

b. FMS Form 1219, Statement of Accountability; and:

c. FMS Form 1220, Statement of Transactions According to 
Appropriations, Funds, and Receipt Accounts? M (p. 61);

407. Does the core financial system provide the capability to provide 
data in the electronic formats required by the Department of the 
Treasury for FACTS I and FACTS II reporting? M (p. 61);

408. Does the core financial system provide the capability to produce a 
monthly SF-133, Report on Budget Execution and Budgetary Resources, in 
the hard copy and electronic formats required by OMB? M (p. 61);

409. Does the core financial system provide the capability to perform 
the validation edits specified by Treasury to ensure the accuracy of 
data transmitted for FACTS I and FACTS II reporting on a monthly basis, 
at a minimum? M (p. 61); [Footnote 87]

410. Does the core financial system provide the capability to automate 
the preparation of consolidated financial statements as required by OMB 
Bulletin 01-09, Form and Content of Agency Financial Statements? M (p. 
61);

[End of section]

Functional Requirements: Reporting Function: Internal reporting:

411. To support the internal reporting process, does the core financial 
system provide the capability to produce a report of transaction-level 
details for the TAS/TAFS totals reported on FMS Form 224, Statement of 
Cash Transactions? M (p. 62);

412. For each TAS/TAFS that is subject to FACTS II reporting 
requirements, does the core financial system provide the capability to 
produce a daily online available funds report(s)? M (p. 62);

413. For the available funds reporting, does the core financial system 
provide the capability for reporting within the following parameters:

a. "internal fund,"

b. budget object class,

c. organization,

d. program,

e. project, and:

f. activity? M (p. 62);

414. When reporting on funds availability at the internal fund level, 
does the core financial system provide the capability to report data on 
budget execution as follows, including a summary at the TAS/TAFS level 
with total amounts for each data element listed below:

a. total resources (by budget fiscal year and by authority type, 
including warrant information) as follows:

i. total authority brought forward,(continued):

ii. total appropriated for the budget fiscal year,

iii. total contract authority,

iv. total borrowing authority (realized and unrealized), and:

v. total estimated and total actual spending authority from offsetting 
collections;

b. funding distribution, including:

i. total not yet apportioned,

ii. total apportioned,

iii. total allotted, and:

iv. total allowances;

c. spending activity, including:

i. total amount of commitments,

ii. total obligations (including paid and unpaid), and:

iii. total expenditures (including paid and unpaid); and:

d. balances available, such as:

i. balance of apportionments available for allotment,

ii. balance of allowance available for commitment (uncommitted), and:

iii. balance of allowances available for obligation (unobligated)? M 
(p. 62);

415. When reporting on funds availability by organization, budget 
object class, program, project and activity level, does the core 
financial system provide the capability to report on budget execution 
as follows, including a summary at the TAS/TAFS level with total 
amounts for each data element listed below:

a. funding distribution, including:

i. total not yet apportioned,

ii. total apportioned,

iii. total allotted, and:

iv. total allowances;

b. spending activity, including:

i. total amount of commitments,

ii. total obligations (including paid and unpaid), and:

iii. total expenditures (including paid and unpaid);

c. balances available, such as:

i. balance of apportionments available for allotment,

ii. balance of allowance available for commitment (uncommitted), and:

iii. balance of allowances available for obligation (unobligated)? M 
(p. 62);

416. Does the core financial system have the capability to provide 
online summary trial balances at the internal fund, organization, and 
TAS/TAFS levels? M (p. 63);

417. Do the online summary trial balances provide the following minimum 
data elements for each general ledger account:

a. the balance at the beginning of the accounting period,

b. the total amount of debits for the accounting period,

c. the total amount of credits for the accounting period, and:

d. the cumulative ending balance for the accounting period? M (p. 63);

418. Does the core financial system have the capability to provide 
grand totals for TAS/TAFS for beginning balance, current period 
activity, and ending balance columns? M (p. 63);

419. Does the core financial system provide the capability to produce 
both preclosing and postclosing trial balances at year-end? M (p. 63);

420. Does the core financial system provide the capability to support 
FACTS I and FACTS II reporting and analysis by producing online trial 
balances at the internal fund, organization, and TAS/TAFS levels? M (p. 
63);

421. Does the core financial system have the capability to produce 
trial balances that provide the related official SGL account number for 
each general ledger account? M (p. 63);

422. Does the core financial system have the capability to produce 
trial balances that provide the following items at the SGL-attribute 
level [Footnote 88] for each general ledger account:

a. the balance at the beginning of the accounting period,

b. the total amount of debits for the current accounting period,

c. the total amount of credits for the accounting period, and:

d. the cumulative ending balance for the accounting period? M (p. 63);

423. Does the core financial system have the capability to provide 
grand totals for each TAS/TAFS for beginning balance, current period 
activity, and ending balance columns? M (p. 63);

424. Does the core financial system provide the capability to produce 
both preclosing and postclosing trial balances at year-end? M (p. 63);

425. Does the core financial system have the capability to provide an 
online transaction register at the internal fund, organization, and 
TAS/TAFS level for each accounting period that provides the following 
data elements:

a. fiscal year,

b. TAS/TAFS,

c. internal fund,

d. document number,

e. document entry date,

f. document entry time,

g. document entry user ID,

h. document transaction date,

i. debit account number,

j. debit account object class,

k. debit amount,

l. credit account number,

m. credit account,

n. object class,

o. SGL attribute domain headings, and:

p. SGL attribute values associated with the transaction? M (p. 63);

426. Does the core financial system provide the capability for the 
online transaction register report, referred to in the previous 
question, to include all transactions occurring within the accounting 
period specified? M (p. 63);

[End of section]

Functional Requirements: Reporting Function: Ad hoc query: [Footnote 
89]

427. To effectively support ad hoc data access, does the core financial 
system provide an integrated data query facility that supports ad hoc 
query access to agency financial data sources? M (p. 64);

428. Does the core financial system provide data analysis reporting 
tools? M (p. 64);

429. Does the core financial system allow users to create and submit 
parameter-based query scripts or to store them in a common library for 
future use? M (p. 64);

430. Does the core financial system allow users to run queries online 
or in batch mode and to stage output for later access by authorized 
users? M (p. 64);

431. Does the core financial system allow users to automatically 
distribute copies of report/query results via e-mail to multiple pre-
identified individuals or groups? M (p. 64);

432. Does the core financial system provide run-time controls to limit 
"runaway" queries and large data download requests? M (p. 64);

433. Does the core financial system support graphical output display on 
the desktop? M (p. 64);

434. Does the core financial system's output display also support 
dynamic report reformatting, regrouping, and drill-down to detail 
records from summary report lines? M (p. 64);

435. Does the core financial system allow authorized users to download 
selected financial data? M (p. 64);

436. Is the core financial system's download capability able to 
automatically reformat downloaded information for direct access by 
common desktop applications (e.g., ASCII formatted)? M (p. 64);

437. Does the core financial system provide the ability to preview a 
report, form, or other query result before printing? M (p. 65);

438. Does the core financial system support access to current year and 
historical financial data? M (p. 65);

439. To provide additional ad hoc data access functionality, does the 
core financial system have the following ad hoc query interface 
features:

a. graphical display of data sources;

b. the ability to "point and click" on selectable table, data, and link 
objects for inclusion in a custom query;

c. an active data dictionary to provide users with object definitions;

d. the ability to share user-developed query scripts with other 
authorized agency users; e. query optimization; and:

f. online help? V (p. 65);

[End of section]

Technical Requirements: General Design/Architecture: [Footnote 90]

440. Is the core financial system modular in design? M (p. 66);

441. Does the core financial system utilize open-systems architecture? 
M (p. 66);

442. Is the core financial system upgradeable by core system module to 
accommodate changes in laws, regulations, best practices, and new 
technology? M (p. 66);

443. Is the core financial system a commercially available product, 
subject to regular maintenance based on vendor-developed and scheduled 
software releases? M (p. 66);

444. Does the core financial system include internal transaction 
processing controls, including the capability in the event of a system 
failure to automatically:

a. back out of incompletely processed transactions,

b. restore the system to its last consistent state before the failure 
occurred, and:

c. reapply all incomplete transactions previously submitted by the 
user? M (p. 67);

445. Does the core financial system enforce internal database 
consistency during all online and batch update operations, including 
distributed databases, if applicable? M (p. 67);

446. Does the core financial system have fully documented restart 
capabilities for the application's online and batch processing 
components? M (p. 67);

447. Does the core financial system segment batch jobs to facilitate 
their recovery in the event of a system failure? M (p. 67);

448. Does the core financial system include complete installation, 
operating, and system maintenance documentation covering the following:

a. product installation and configuration steps;

b. application access procedures;

c. user screen layout and content;

d. transaction entry procedures;

e. batch job setup, processing, and recovery/restart procedures;

f. error codes with full descriptions and recovery steps;

g. standard report layout and content,

h. internal processing controls;

i. application security;

j. operating specifications and system flowcharts;

k. database entity relationships, table formats, and data element 
descriptions; and:

l. program module descriptions? M (p. 67);

449. Does the core financial system include revised documentation 
concurrent with the distribution of new software releases? M (p. 67);

450. Does the core financial system employ common error handling 
routines across functional modules and present error messages that 
allow the user or system operator to respond to reported problems? M 
(p. 67);

451. Is the agency able to customize the common error message text? M 
(p. 67);

452. Does the core financial system generate output information to 
formats specified by functional requirements? M (p. 67);

453. In cases where a functional requirement does not specify an output 
format, is the required information viewable using the application's 
online user interface by default? M (p. 67);

454. Can the agency customize the core financial system to meet its 
specific business/accounting needs using agency-supplied application 
configuration and operating parameters? M (p. 67);

455. Does the core financial system provide fault-free performance in 
the processing of date and date-related data (including calculating, 
comparing, and sequencing) by all hardware and software products 
included as part of the application, both individually and in 
combination (i.e., year 2000 compliance)? M (p. 67);

456. Does the core financial system include an integrated relational, 
structured query-language-compliant database? V (p. 68);

457. Does the core financial system simultaneously process online 
transactions and transactions submitted via system interface? V (p. 
68);

[End of section]

Technical Requirements: Infrastructure:

458. Does the core financial system identify all software and hardware 
products needed by an agency to install, operate, access, and maintain 
the application, including the identification of distinct products that 
are intended to be purchased or licensed as part of the product 
licensing agreement? M (p. 68); [Footnote 91]

459. Does the core financial system utilize transaction control/
Internet communications protocol for application, database, and 
workstation connectivity? M (p. 68);

460. At a minimum, does the core financial system support application 
client operation on a 32-bit, Microsoft Windows-compatible operating 
system? M (p. 68);

461. Does the core financial system operate in a mainframe environment 
(e.g., Multiple Virtual System, Operating System 390)? V (p. 68);

462. Does the core financial system operate in a server-computing 
environment running under UNIX or NT (e.g., Windows Server 2000)? V (p. 
68);

463. Does the core financial system support application client 
operation on an Apple Macintosh Windows-compatible operating system? V 
(p. 68);

464. Does the core financial system support application client 
operation on a UNIX operating system? V (p. 68);

465. Does the core financial system support automated touch-tone 
telephone access for standardized, commonly requested inquiries (such 
as payment status)? V (p. 68);

466. Does the core financial system support automated fax-back access 
for standardized, commonly requested documents (such as account 
statements)? V (p. 69);

467. Does the core financial system provide the capability to accept 
barcoded documents? V (p. 69);

468. Does the core financial system include a report spooling 
capability to enable online viewing, reprinting, and permanent 
archiving of requested reports? V (p. 69);

[End of section]

Technical Requirements: User Interfaces: [Footnote 92]

469. Does the core financial system provide a consistent, Windows-
compatible, online user interface to all modules and integrated 
subsystems? V (p. 69);

470. Does interface consistency include the use of common command entry 
syntax, dialog window styles, data entry structures, and information 
presentation? V (p. 69);

471. Does the core financial system incorporate common graphical user 
interface characteristics such as the following:

a. mouse activated icons;

b. buttons;

c. scroll bars;

d. drop-down lists;

e. check boxes;

f. menu bars;

g. text boxes;

h. tool tips;

i. resizable windows; and:

j. cut, copy, and paste functions? V (p. 69);

472. Does the core financial system incorporate data entry features 
designed to reduce the amount of direct keying required to initiate 
transaction processing, such as the following:

a. the use of default values;

b. look-up tables;

c. automatic data recall;

d. single-function windows (e.g., one input screen per transaction);

e. the ability to pass common data from screen to screen;

f. highlighting of required fields;

g. auto tabs;

h. function keys (e.g., to retrieve previous data, invoke help 
facility, suspend transaction, or clear screen);

i. disabling of nonsupported function keys;

j. menu mode and an expert mode of screen navigation;

k. the ability to retrieve suspended transactions by user, document, 
vendor, and so forth;

l. transaction entry undo/redo;

m. context-sensitive online help; and:

n. the ability to select records from a list by scrolling or by typing 
in only part of an entry? V (p. 69 & 70);

473. Does the core financial system support desktop integration with 
other common workstation applications used for word processing, 
spreadsheets, data management, and graphics? V (p. 70);

474. Is the application help facility customizable by the agency? V (p. 
70);

475. Does the core financial system provide an application user 
interface that complies with the software application standards 
required by 29 U.S.C.  794d, [Footnote 93] as detailed in 36 C.F.R. 
1194, Subpart B? V (p. 70);

[End of section]

Technical Requirements: Interoperability: [Footnote 94]

476. To ensure that data can move effectively between the core 
financial system and other financial applications operated by the 
agency, does the core system include:

a. an application program interface (API) to accept and process 
financial data generated by external [Footnote 95] and other internal 
[Footnote 96] applications and:

b. the ability to export data required by governmentwide systems? M 
(Addendum to Core Financial Management System, March 31, 2004, p. 3 of 
3);

477. Does the API support the receipt and continued processing of 
transactions for all core accounting components as well as vendor 
information updates? M (Addendum to Core Financial Management System, 
March 31, 2004, p. 3 of 3);

478. Does the core financial system process API-submitted transactions 
using the same business rules, program logic, and edit table entries 
that are used by the application in editing transactions submitted 
online (e.g., via user interface)? M (p. 70);

479. Does the core financial system hold API-submitted transactions 
that do not pass required edits in suspense pending appropriate 
corrective action by the user? M (p. 70);

480. Does the API suspense process include the ability to:

a. view, update, or delete suspended transactions and:

b. automatically reprocess suspended transactions? M (p. 70);

481. Does the core financial system provide internal controls with the 
API (e.g., control totals and record counts) to ensure the integrity of 
received and processed transactions? M (p. 70);

482. For the API, does the core financial system generate transaction 
editing error records in a standard format defined by the vendor for 
return to the originating feeder application? M (p. 70); [Footnote 97]

483. Does the core financial system support direct electric data 
interchange translation compliant with American National Standards 
Institute X-12 standards to enable electronic data exchanges with 
designated trading partners, such as a bank credit card service 
provider, major supplier, or customer? V (p. 71);

484. Does the core financial system interface with the agency 
electronic communications system to distribute application-generated 
documents and messages electronically to either intranet or Internet 
users? V (p. 71);

485. Does the core financial system accept vendor invoices and other 
external originated transactions over the Internet (e.g., Extensible 
Markup Language (XML))? V (p. 71);

486. Does the core financial system support emerging XML-based 
specifications for the exchange of financial data, such as Extensible 
Business Reporting Language? V (p. 71);

[End of section]

Technical Requirements: Workflow/Messaging: [Footnote 98]

487. Does the core financial system provide an integrated workflow 
management capability, including generation and routing of internal 
forms, reports, and other financial documents, for online approval or 
subsequent processing? M (p. 71);

488. Does the core financial system enable authorized users to define 
workflow processes and business rules, including approval levels, and 
to modify workflow (e.g., assigning a proxy approving authority)? V (p. 
71);

489. Does the core financial system provide the capability to establish 
multiple levels of document approvals based on user-defined criteria 
including dollar amounts, types of items purchased, and document types? 
V (p. 71);

490. Does the core financial system provide an internal calendar or 
user-defined routing tables to generate rule-based or exception reports 
to support the generation of workflow messages? V (p. 71); [Footnote 
99]

491. Does the core financial system provide the ability to track 
approvals online by transaction, including the time, date, and 
approving party? V (p. 71);

492. Does the core financial system provide the capability to 
automatically generate electronic routing and status messages to 
individuals or groups? V (p. 72);

493. Does the core financial system support Workflow Management 
Coalition standards? V (p. 72);

494. Does the core financial system support Messaging API-Workflow 
standards? V (p. 72);

495. Does the core financial system support Vendor Independent 
Messaging standards? V (p. 72);

[End of section]

Technical Requirements: Document Management: [Footnote 100]

496. Does the core financial system support Document Management 
Alliance standards? V (p. 72);

497. Does the core financial system support Open Document Management 
Architecture standards? V (p. 72);

498. Does the core financial system support Open Document Architecture/
Open Document Interface Format standards? V (p. 72);

499. Does the core financial system support Portable Document Format 
standards? V (p. 72);

500. Does the core financial system support Standard Generalized Markup 
Language standards? V (p. 72);

501. Does the core financial system provide the capability to 
electronically image, index, store, and retrieve document reference 
material? V (p. 72); [Footnote 101]

502. Does the core financial system notify the user of the presence of 
associated document images and allow an on-screen display of this 
material? V (p. 72);

[End of section]

Technical Requirements: Internet Access: [Footnote 102]

503. Does the core financial system support secure Web browser access 
to all financial management system modules, including workflow-related 
features, for the purpose of entering new financial documents/
transactions and for reviewing/approving their processing? V (p. 73);

504. Does the core financial system support secure Internet access to 
the integrated ad hoc data query facility? V (p. 73);

505. Does the core financial system provide the capability to receive 
public payment collections via the Internet? V (p. 73); [Footnote 103]

506. Does the core financial system support the use of standard public 
key infrastructure technology to control access to sensitive data over 
the Internet? V (p. 73);

[End of section]

Technical Requirements: Security: [Footnote 104]

507. Does the core financial system have integrated security features 
that are configurable by the system administrator to control access to 
the application, functional modules, transactions, and data? M (p. 73);

508. Are the core financial system application's integrated security 
features compliant with the National Institute of Standards and 
Technology (NIST) security standards? M (p. 73);

509. Does the core financial system ensure that the agency's access 
policies are consistently enforced against all attempts made by users 
or other integrated system resources, including software used to submit 
ad hoc data query requests or to generate standard reports? M (p. 73);

510. Does the core financial system require the use of unique user IDs 
and passwords for authentication purposes? M (p. 73);

511. Are the core financial system passwords nonprinting and 
nondisplaying? M (p. 73);

512. Does the core financial system application allow for the 
following:

a. the enforcement of password standards, [Footnote 105]

b. the establishment of a specified period for password expiration, 
and:

c. the prohibition of recent password reuse? M (p. 73);

513. Does the core financial system enable the system administrator to 
define functional access rights [Footnote 106] and data access rights 
[Footnote 107] by assigned user ID, functional role, [Footnote 108] and 
owner organization? M (p. 73);

514. Does the core financial system permit the system administrator to 
assign multiple levels of approval to a single user, while preventing 
that user from applying more than one level of approval to a given 
document? M (p. 73);

515. Does the core financial system allow the system administrator to 
restrict access to sensitive data elements, such as social security 
numbers and banking information, by named user, groups of users, or 
functional role? M (p. 74);

516. Does the core financial system maintain an audit logging 
capability to record access activity, including the following:

a. all log-in/log-out attempts by user and workstation;

b. user-submitted transactions;

c. initiated processes;

d. system override events; and:

e. direct additions, changes, or deletions to application-maintained 
data? M (p. 74);

517. Does the core financial system provide the ability to query the 
audit log by type of access, date and time stamp range, user ID, or 
terminal ID? M (p. 74);

[End of section]

Technical Requirements: Operations and Computing Performance:

518. Does the core financial system include a process scheduling 
capability that enables the operator to initiate, monitor, and stop 
scheduled processes, such as online availability, batch jobs, and 
system maintenance? M (p. 74);

519. Does the core financial system provide online status messages 
indicating job or transaction type and name, when requested processing 
starts and completes, and system errors? M (p. 74);

520. Does the core financial system allow reports to be produced in the 
background while other system processing takes place? M (p. 74);

521. Does the core financial system provide the system administrator 
the ability to control the archiving process? M (p. 74);

522. Does the core financial system include the capability to establish 
and maintain user-defined archival criteria, such as date, accounting 
period, closed items, and vendors inactive for a specific time period? 
M (p. 74);

523. Does the core financial system allow selective action on those 
documents that meet the user-defined archival criteria? M (p. 74);

524. Does the core financial system retain archived data and system 
records in accordance with federal regulations established by the 
National Archives and Records Administration, GAO, and NIST? M (p. 75);

525. Does the core financial system provide the ability to selectively 
retrieve archived data based on user-defined criteria such as date, 
accounting period, or vendor? M (p. 75);

526. Does the core financial system maintain and report on productivity 
statistics about application usage? M (p. 75);

527. Does the core financial system provide audit trails to identify 
changes made to system parameters and tables that would affect the 
processing or reprocessing of any financial transactions? M (p. 75);

528. Does the core financial system provide computing performance 
metrics, for platforms and systems environments on which the 
application is certified to run? V (p. 75);

529. Do the core financial system's vendor-provided performance metrics 
describe the following:

a. transaction processing throughput capacity,

b. expected workstation client response time by transaction type,

c. data storage capacity, and:

d. limitations on concurrent user connectivity? V (p. 75);

530. Does the core financial system process an agency's projected 
accounting activity without affecting projected online response time? V 
(p. 75);

531. Does the core financial system complete routine batch processing 
[Footnote 109] within an agency-defined batch processing window? V (p. 
75);

532. Does the core financial system maintain the agency's current and 
historical financial data [Footnote 110] with no degradation to online 
or batch processing performance? V (p. 75);

533. Does the core financial system support concurrent access to 
functional modules by the agency's defined user community? V (p. 75);

534. Does the core financial system disclose processing jobs, steps, 
and dependencies that are required to operate the system on a daily, 
weekly, monthly, quarterly, and annual basis? V (p. 75);

535. Does the core financial system provide the capability to process 
batched transactions during online hours and accept online transactions 
from interfacing systems with no online performance degradation? V (p. 
75);

[End of section]

[End of checklist]

Related GAO Products:

These related products address two main categories: internal control 
and financial management systems. We have developed these guidelines 
and tools to assist agencies in improving or maintaining effective 
operations and financial management.

Internal Control:

Maintaining Effective Control Over Employee Time and Attendance 
Reporting. GAO-03-352G. Washington, D.C.: January 2003.

Streamlining the Payment Process While Maintaining Effective Internal 
Control. GAO/AIMD-00-21.3.2. Washington, D.C.: May 2000.

Internal Control Management and Evaluation Tool. GAO-01-1008G. 
Washington, D.C.: August 2001.

Determining Performance and Accountability Challenges and High Risks.
GAO-01-159SP. Washington, D.C.: November 2000.

Standards for Internal Control in the Federal Government.GAO/AIMD-00-
21.3.1. Washington, D.C.: November 1999.

Financial Management Systems Checklists:

Acquisition/Financial Systems Interface Requirements. GAO-04-650G. 
Washington, D.C.: June 2004.

Seized Property and Forfeited Assets Requirements. GAO-01-99G. 
Washington, D.C.: October 2000.

Benefit System Requirements. GAO-04-22G. Washington, D.C.: October 
2003.

Inventory System. GAO/AIMD-98-21.2.4. Washington, D.C.: May 1998.

Property Management Systems Requirements. GAO-02-171G. Washington, 
D.C.: December 2001.

Human Resources and Payroll Systems Requirements. GAO/AIMD-00-21.2.3. 
Washington, D.C.: March 2000.

Grant Financial System Requirements. GAO-01-911G. Washington, D.C.: 
September 2001.

System Requirements for Managerial Cost Accounting. GAO/AIMD-99-
21.2.9. Washington, D.C.: January 1999.

Guaranteed Loan System Requirements. GAO-01-371G. Washington, D.C.: 
March 2001.

Travel System Requirements. GAO/AIMD-00-21.2.8. Washington, D.C.: May 
2000.

[End of section]

(195030):

FOOTNOTES:

1. JFMIP is a joint undertaking of the Office of Management and Budget 
(OMB), GAO, the Department of the Treasury, and the Office of Personnel 
Management (OPM), working in cooperation with each other and with 
operating agencies to improve financial management practices throughout 
the government. The program was initiated in 1948 by the Secretary of 
the Treasury, the Director of the Bureau of the Budget (now OMB), and 
the Comptroller General. JFMIP was authorized by the Budget and 
Accounting Procedures Act of 1950 (subsequently codified at 31 U.S.C.  
3511 (d)). The Civil Service Commission, now OPM, joined JFMIP in 1966.

2. JFMIP has also issued the Framework for Federal Financial Management 
Systems (JFMIP-SR-01-04, April 2004), which is the foundation document 
for the JFMIP Financial Management System Requirements that sets forth 
the vision, desired capabilities, performance outcomes, environment, 
and other attributes that all federal financial management systems must 
be designed to support.

3. Thus far, the series includes the:

(1) System Requirements for Managerial Cost Accounting (February 1998);

(2) Human Resources and Payroll System Requirements (April 1999);

(3) Direct Loan System Requirements (June 1999);

(4) Travel System Requirements (July 1999);

(5) Seized Property and Forfeited Assets System Requirements (December 
1999);

(6) Guaranteed Loan System Requirements (March 2000);

(7) Grant Financial System Requirements (June 2000);

(8) Property Management System Requirements (October 2000);

(9) Benefit System Requirements (September 2001);

(10) Core Financial System Requirements (November 2001), which 
supercedes the 1999 Core Financial System Requirements (February 1999);

(11) Acquisitions Financial System Requirements (June 2002);

(12) Revenue System Requirements (January 2003); and (13) Inventory, 
Supplies, and Materials System Requirements (August 2003), which 
supercedes the 1995 Inventory System Requirements (June 1995). 
Functional requirements for budget formulation and insurance claims 
systems have not yet been issued.

4. For example, the agency is working on modifying or implementing its 
core financial system to have the capability available in subsequent 
years; management believes the capability is not cost-effective and 
will not enhance the core financial system's ability to manage 
operations.

5. The core financial system management function ensures that the 
capability exists for capturing, classifying, processing, storing, and 
retrieving the financial data federal agencies use in their daily 
operations. It establishes the reporting entity and framework for 
ensuring that data are shared among components of an agency's single 
integrated financial management system. This function also ensures that 
transactions are processed in a uniform and consistent manner.

6. The accounting classification is a subset of the agency financial 
information classification structure, which also includes financially 
related personnel information, performance measurement information, 
and other financial information needed by the agency. It provides the 
means for categorizing financial information along several dimensions 
as needed to support financial management and reporting functions. The 
data elements a particular agency includes in its accounting 
classification will depend on data aggregation requirements for 
preparation of financial statements under the Chief Financial Officers 
Act, the appropriation structure, and other reporting and management 
needs of the agency.

7. Unless otherwise indicated, page number references in the checklist 
are to JFMIP-SR-02-01.

8. For example, Financial Management Service (FMS) 224, Statement of 
Transactions.

9. For example, categories could be rental income, sales by product 
type, and income by type of service performed.

10. Examples of methods include entering "shorthand codes," using a 
keyboard function to look up additional elements, "clicking" on a "pop-
up menu," and scanning a bar code.

11. The transaction control process defines, maintains, and executes 
the posting and editing rules for transactions that are processed in 
the core financial system. The core financial system must be able to 
process and record transactions originally entered into it as well as 
transactions originating in other systems. In order to provide the 
basis for central financial control, the core system must track such 
transactions and related information. The transaction control process 
is further categorized as transaction definition and processing 
activities and audit trail activities.

12. SGL accounting transactions typically update multiple budgetary and 
proprietary accounts based on a single accounting event. The core 
financial system must ensure that transactions are controlled properly 
to provide reasonable assurance that the recording, processing, and 
reporting of financial data are properly performed and that the 
completeness and accuracy of authorized transactions are ensured.

13. The process of defining posting rules can be accomplished in a 
variety of ways, including, but not limited to, using transaction 
codes, screen "templates," and derivation rules.

14. For example, a budget object class code value is not necessarily 
needed when recording depreciation expense.

15. This capability will be used in the liquidation of various 
documents, such as commitments, obligations, undelivered orders, 
payables, receivables, and advances, upon the processing of subsequent 
related transactions (e.g., liquidate an obligation upon entry of the 
related receiving report).

16. This is to include transactions entered directly to the core system 
and those received from interfaced modules or systems.

17. This is to include transactions entered directly to the core system 
and those received from interfaced modules or systems.

18. For example, prevent the use of the same unique transaction 
identification number (e.g., document number).

19. For example, fields pertaining to TAS/TAFS, object class, vendor 
code, and organization.

20. Adequate audit trails are critical to providing support for 
transactions and balances maintained by the core financial system. 
While audit trails are essential to auditors and system evaluators, 
they are also necessary for day-to-day operation of the system. For 
example, they allow for the detection and systematic correction of 
errors.

21. The initial source may be source documents, transactions 
originating from other systems (e.g., feeder systems), or internal 
system generated transactions.

22. Examples of reasons to select items are payment certification and 
financial statement audits.

23. The general ledger account definition process establishes the 
general ledger account structure for the agency consistent with the SGL 
and establishes the transaction edit and posting rules to record 
financial events.

24. For example, is the user able to add or modify valid values within 
an existing attribute domain?

25. This process creates accrual transactions (adjusting) and closing 
entries needed at the end of a period (month or year) for reporting 
purposes. It also controls and executes period-end system processes 
needed by the system to open a new reporting period, such as rolling 
forward account balances or reversing certain year-end entries. This 
process supports the preparation of consolidated financial statements 
by identifying information needed in that process.

26. This process supports the control functions of the SGL. The core 
financial system must provide information to use in determining that 
balances in the general ledger control accounts agree with more 
detailed subsidiary accounts and for reconciling system balances with 
financial information contained in reports from Treasury and other 
agencies.

27. The funds management function must support agency policies on 
internal funds allocation methods and controls. An agency will likely 
have many other systems in addition to the core financial system that 
affect funds management. For example, procurement and travel systems 
generate documents that commit and obligate funds. These systems 
typically access the funds availability editing activity before 
allowing an obligation to be incurred, such as when entering into a 
contract. However, in some cases, such as payroll, this may not be 
practical.

28. Budget preparation is the process of establishing initial agency 
operating/financial plans and updating them as necessary throughout the 
fiscal year. An operating/financial plan is a blueprint for using 
financial resources during any given fiscal period or series of 
periods. The function includes reporting on the use of resources 
against these plans throughout the year.

29. Budget formulation is the process of assembling estimates for the 
upcoming fiscal year for transmittal to OMB and the congressional 
appropriations committees, preparing justification materials to 
support those estimates, and defending those estimates formally (at OMB 
and congressional hearings) and informally (through staff contacts with 
these entities).

30. The funds allocation process records an agency's budgetary 
resources and supports the establishment of budgetary limitations at 
each of the levels required within the agency (e.g., apportionments and 
allocations). The higher levels, such as appropriation, apportionment, 
and allotment, have the weight of legal authority behind the 
limitations. Lower levels of control are generally used for internal 
management purposes.

31. Pub. L. No. 101-510.

32. OMB Circular A-11, Part 4, issued in June 2002 and revised in May 
and July of 2003, rescinded OMB Circular A-34, Instructions in Budget 
Execution.

33. Used to support the federal budget process, the OMB MAX Budget 
Information System is used to collect, validate, analyze, model, and 
publish information. Perhaps the most visible end product of the MAX 
system is the Budget of the United States Government, also known as the 
President's budget.

34. The budget execution process is the most detailed level of an 
agency's funds control and consists of processes needed to ensure that 
the agency's funds control systems are fully supported by its 
accounting systems. It also consists of processes needed to track an 
agency's budget authority and manage prior-year funds in the current 
year. Allotment systems should be designed so that responsibility for 
budget control is placed at the highest practical organizational level 
consistent with effective and efficient management and control.

35. There must be at least five organizational levels.

36. This process records transactions affecting the resources and 
status accounts in the budgetary section of the SGL. It also provides 
appropriate warnings and controls to ensure that budgetary limitations 
are not exceeded. The funds control process consists of:

(1) funds availability editing,

(2) commitments,

(3) obligations, and:

(4) analysis.

37. This activity verifies that sufficient funds are available at the 
various control levels specified in the funds allocation process for 
each processed transaction that may affect available fund balances. If 
sufficient funds are not available, notification is provided so that 
appropriate action may be taken.

38. This is to include transactions entered directly to the core system 
and those received from interfaced modules or systems.

39. Commitments are an optional stage of fund reservations prior to the 
establishment of an obligation. This activity records commitment 
documents, such as requisitions. Commitments can be a useful tool in 
funds management by helping users to anticipate future procurements. 
They should be used when helpful to an agency's management process, but 
are not necessary, or even appropriate, for all situations. However, 
the core financial management system must provide the capability to use 
this stage of funds control.

40. OMB Circular A-11 defines an obligation as a binding agreement that 
will result in outlays, immediately or in the future. Budgetary 
resources must be available before obligations can be incurred legally. 
Examples are amounts of orders placed, contracts awarded, services 
received, and similar transactions that will require payments during 
the same or a future period. Such amounts include outlays for which 
obligations had not been previously recorded and reflect adjustments 
for differences between obligations previously recorded and actual 
outlays to liquidate those obligations.

41. The analysis activity provides information necessary to support 
analysis of the funds management function. It provides information on 
funds availability at the levels defined and compares data in the funds 
management function to data in other functions to ensure consistency.

42. The required accounting classification elements are listed in 
question one under the accounting classification management process 
within the core financial management system function.

43. For example, querying on a purchase order would provide any 
amendments to purchase orders, receiving reports, requisitions, and 
invoices; querying on a receivable would provide any associated cash 
receipts.

44. These requirements apply to all payments processed through the core 
system. Depending on an agency's system architecture, specific 
activities performed relating to payments may be supported by other 
systems that provide transaction data to the core financial system for 
control and management purposes. For example, payroll systems usually 
trigger the actual disbursement process to pay employees through direct 
deposit or by check, and send only the expense and disbursement 
information to the core financial system for recording by the general 
ledger, funds control, and cost management processes. Likewise, large 
loan and grant programs might be supported by systems that maintain 
their own detailed information on payees and payments and send 
transaction data to the core financial system.

45. The term "payee" is used here to include any entity to which 
disbursement may be made, for example, individuals and organizations 
providing goods and services, employees, grant recipients, loan 
recipients, and other government agencies. In an integrated system, 
payee information needed to make payments should be coordinated with 
information needed for other purposes and in other systems.

46. The mandatory payee information is detailed in question 189.

47. The mandatory data fields are detailed in question 189.

48. The payment warehousing process recognizes and records payments due 
to another entity in the near term. These payments may be due for any 
of several reasons, for example, as a result of receiving goods and 
services in accordance with contract terms, under a loan or grant 
agreement, as an advance payment for goods or services to be provided 
in the future, or as a progress payment under a construction contract.

49. For example, purchase order number or reimbursable agreement number 
and the ALC.

50. For example, Online Payment and Collection System or Intra-
governmental Payment and Collection System.

51. The payment execution process supports activities required to make 
a payment that was warehoused or to record a payment made by another 
system.

52. An EFT could occur via Automated Clearing House or wire, for 
example.

53. Currently, TFM prescribed limitations are up to 14 lines of 55 
characters each for check payment and up to 9,999 lines of 80 
characters each for CTX payment.

54. CTX (820 or Flat File), CCD, CCD+, PPD, and PPD+.

55. The various media include telecommunications, tape, direct entry to 
Electronic Certification System (ECS), and third-party upload through 
ECS.

56. For example, by agencies that have their own disbursing authority.

57. For example, purchase order number, reimbursable agreement number, 
and ALC.

58. Reimbursable work can result in this type of transaction with 
appropriate authority.

59. For example, when making benefit payments to recipients.

60. The payment confirmation and follow-up process confirms that 
disbursements were made as anticipated and supports inquiries from 
vendors regarding payments and reporting requirements relating to the 
payment management function.

61. Such as IRS Form 1099-INT, Form 1099-MISC, Form 1099-C, and Form 
1099-G.

62. For example, when payment to a sole proprietor for services 
performed (not including cost of merchandise) exceeds a specified 
dollar amount (e.g., $600), the system would produce a Form 1099-MISC.

63. That is, the Government On-line Accounting Link System Regional 
Finance Center Agency Link or its successor.

64. Receivables are established to account for amounts due from others 
as the result of performance of services by the agency, delivery of 
goods sold, the passage of time (e.g., interest earned); loans made to 
others that must be repaid; or other actions. Receivables are accounted 
for as assets until funds are collected or are determined to be 
uncollectible in whole or in part. Additionally, some receipts may be 
collected without the prior establishment of a receivable, as in the 
case of goods sold for cash. Depending on an agency's system 
architecture, servicing and collection activities for some receivables 
may be supported by other systems that provide data to the core 
financial system. This would be particularly appropriate for 
receivables resulting from large programs with complex supporting data 
requirements, such as loan programs, grant programs, or fee-for-service 
programs. Servicing and collection for receivables with simpler 
requirements for supporting data, such as those resulting from 
erroneous payments, may be supported directly by the core financial 
system with no support by other systems.

65. The word "customer" is used here to include any entity that owes a 
debt to the agency, including contractors, employees, grantees, loan 
recipients, and other government agencies. Agency payees, or vendors, 
as defined in the payment management function section, may become 
customers of the agency, in the event that duplicate or overpayments 
occur. The customer information maintenance process involves the 
maintenance of customer information (name, address, etc.), 
identification of the type of customer from which collection is due, 
and the recording of trading partner codes used in the elimination of 
intragovernmental activity from financial statements. The process 
ensures that customer TINs are captured in order to report overdue 
receivables for potential offset and to provide for IRS Form 1099 
reporting of debts written off.

66. The receivable establishment process supports activities to record 
receivables in the system as they are recognized and to produce bills 
for amounts due to the agency.

67. Bases used for billing may include:

(1) percentage of reimbursable obligations, accrued expenditures, or 
costs, using data recorded by the cost accumulation function;

(2) fee schedules for goods or services provided; and:

(3) payment schedules or other agreements with other entities.

68. The debt management process involves the maintenance of account 
information on individual accounts receivable. The process supports 
activities to age receivables, calculate interest and record penalties 
and administrative charges on overdue debt, pursue collection of 
amounts due, liquidate receivables, record adjustments to receivables, 
maintain a proper allowance for uncollectible amounts, and record 
write-offs.

69. For example, $600 or more.

70. The collections process supports activities to record the receipt 
of funds either by currency (e.g., cash or EFT) or check and the 
deposit of such funds in accordance with Treasury and agency 
regulations. The process also provides for the receipt of payment 
offset information from Treasury and its application to the appropriate 
accounts receivable.

71. For example, upon the refund of erroneous payments.

72. For example, outstanding accounts receivable, credit memorandum, 
and open advances.

73. A Treasury system used to manage and monitor the collection of 
government revenues and report the balances to federal agencies.

74. The level of sophistication of the cost management function needed 
by an agency depends on the requirements of the agency and the 
operational nature of the programs involved. For example, if an 
agency's primary mission is to produce a product or service for sale, 
the costing function typically will be accomplished in the managerial 
cost accounting system that is integrated with the core financial 
system. Programs with less crucial cost information needs might perform 
cost management functions by analytical or sampling methods. However, 
in any core system, certain basic functions must be present. The cost 
management function consists of:

(1) cost setup and accumulation,

(2) cost recognition,

(3) cost distribution, and:

(4) working capital and revolving fund.

75. The cost setup and accumulation process identifies and tracks cost 
data associated with the specific cost objects required by management. 
This process provides for the establishment of identifiers for the 
desired cost objects in the processes, systems, and applications that 
make up the accounting system, and for the subsequent collection of 
cost data. A cost object is any activity, output, outcome, or item 
whose cost and revenue are to be measured, such as organizational 
units, programs, projects, activities, targeted outputs, specific 
contracts, specific customers, and work orders.

76. Full cost includes support costs provided by other responsibility 
segments, both internal and external; identifiable support costs 
provided by other government agencies, such as pension and other 
retirement benefits; unfunded costs, such as accrued annual leave, that 
accrue in the current reporting period; depreciation expense; and 
amortization costs.

77. Recognition of the effects of transactions in financial systems is 
fundamental to the accounting process. The recognition process 
determines when the results of an event are to be included in financial 
statements and ensures that the effects of similar events and 
transactions are accounted for consistently within the federal 
government.

78. The managerial cost accounting concepts and standards contained in 
SFFAS No. 4 are aimed at providing reliable and timely information on 
the full cost of programs, their activities, and outputs. The 
information is to be used by stakeholders, executives, and managers in 
making decisions about allocating resources, authorizing and modifying 
programs, and evaluating program performance. Program managers can also 
use the cost information for making managerial decisions to improve 
operating efficiency. Ultimately, the effectiveness of a cost 
management program lies in the way managers use the cost information 
asked for and reported to them.

79. Such as income statements and status of funds reports.

80. For example, bills generated for customers in the receivables 
system should match customer status reports generated by the cost 
management system for the same periods.

81. Agencies may elect to use revolving funds, which include working 
capital funds and franchise funds, for their organizations. These funds 
require separate legislation and have charters that focus on specific 
purposes. Such charters have the potential to make program management 
much more flexible by lifting apportionment controls while adding 
operational safeguards. If an agency uses a revolving fund, the core 
financial system must be able to track service-level agreements, verify 
funds availability, bill customers, and measure costs.

82. For example, contracts, work orders, projects, or reimbursable 
agreements.

83. For example, the ability to link the costs of a set of related 
projects for a particular customer on one report.

84. Information maintained by the core financial system must be 
provided in a variety of formats to users according to their needs. 
Methods of providing information include online inquiries, extractable 
data files, and hard copy reports. These requirements could be 
satisfied by either application software that is part of the core 
financial system, generalized reporting/inquiry software that works 
with a variety of applications, or a combination of both. The reporting 
function consists of (1) general reporting process, (2) external 
reporting process, (3) internal reporting process, and (4) ad hoc query 
process.

85. Complete, reliable, consistent, timely, and useful financial 
management information on operations enables central management 
agencies, individual operating agencies, divisions, bureaus, and other 
subunits to (1) carry out their fiduciary responsibilities;

(2) deter fraud, waste, and abuse of resources; and (3) facilitate 
efficient and effective delivery of programs by relating financial 
consequences to program performance.

86. For example, individual or hierarchical organization code, or 
project code.

87. See the FACTS II Client Bulk Users Guide for examples.

88. That is, separate amounts whenever there is more than one attribute 
domain value within an SGL account.

89. While requirements associated with standard internal and external 
reporting are based on clearly defined financial management information 
needs, ad hoc query requirements are general in nature. The ability of 
an FMS package to provide for flexible data access is critical to 
enabling effective agency, program, and financial management in the 
face of change.

90. Technical requirements help ensure that a core financial system:

(1) is capable of meeting a wide variety of workload processing 
demands;

(2) provides transaction processing integrity and general operating 
reliability;

(3) uses standard procedures for installation, configuration, and 
operations; and:

(4) does not conflict with other administrative or program systems or 
other agency established IT standards.

91. The vendor is also required to identify products needed to meet any 
technical and functional requirement that must be acquired separately 
by the agency.

92. Technical user interface requirements specify how agency users and 
operators interact with the core financial system.

93. Referred to as section 508 of the Rehabilitation Act in JFMIP 
document.

94. Financial transactions can be originated using external, feeder 
applications. Typically, these feeders are considered legacy systems 
and are based on older computing technologies.

95. For example, Intragovernmental Transaction Exchange and IPAC 
systems.

96. For example, the financial portion of mixed program systems, 
electronic data interchange translators, and modules such as travel or 
payroll.

97. That is, provide two-way interface support.

98. Workflow/messaging includes technical requirements that 
collectively define how a core financial system automatically manages 
document processing and notifies agency staff of pending work (e.g., 
review/approval of pending accounting documents).

99. That is, notification of accounts payable office for invoices 
warehoused over 30 days with no matching receiving report.

100. Document management includes technical requirements that define 
how the core financial system is to store and retrieve electronically 
formatted documents.

101. For example, signed contracts, purchase orders, and vendor 
invoices.

102. Technical requirements relating to Internet access represent a 
specialized infrastructure subset. These requirements generally define 
user connectivity options.

103. For example, Web-based collections via credit card.

104. This technical category defines internal and external access 
controls.

105. For example, minimum length and use of alpha, numeric, and special 
characters.

106. For example, to modules, transactions, and approval authorities.

107. For example, record, create, read, update, and delete.

108. For example, payable technician.

109. For example, backups, nightly interface processing, core general 
ledger posting, table updates, standard reporting, and systems 
assurance.

110. For example, general ledger records, documents, transactions, 
lines, and vendor records.

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