Transcription

Federal FinanacialManagementSystemRequirementsOFFM - NO - 0105February 2005

Table of ContentsAcronyms .viiIntroduction . 1Federal Financial Management Framework . 3Federal Financial Management System Requirements (FFMSR) Model . 3Framework Goals. 4Requirements Guidelines. 5Applicability . 5Management Controls. 5Requirements Testing. 5Requirements Interpretation . 6Core Financial System Requirements Overview . 7System Overview . 7Core Financial System Functional Requirements Summary . 9System Management Function . 11Accounting Classification Management Process . 11Document and Transaction Control Process . 14Document Referencing and Modification Process . 17System-Generated Transactions Process . 18Audit Trails Process . 20General Ledger Management Function . 21General Ledger Account Definition Process . 21Transaction Definition Process . 22General Ledger Update and Editing Process . 23Upward/Downward Spending Adjustment Process . 24General Ledger Analysis and Reconciliation Process . 25Accounting Period Maintenance and Closing Process . 26Funds Management Function . 28Budget Planning Process. 28Budget Preparation Process . 29Budget Authority Process . 31Funds Distribution Process . 32Funds Control Process . 33Funds Status Process. 37Payment Management Function . 39Payee Information Maintenance Process . 40Accounts Payable Process . 42Core Financial System Requirementsiii

Table of ContentsInvoicing Process. 43Disbursing Process . 46Payment Follow-Up Process. 52Receivable Management Function . 57Customer Information Maintenance Process. 58Receivable Establishment Process. 59Debt Management Process . 62Cost Management Function. 67Cost Setup and Accumulation Process. 67Cost Distribution Process. 68Cost Reporting Process . 69Fund Balance with Treasury Management Function . 71Treasury Information Maintenance Process . 71Payment Confirmation Process . 72Reconciliation and Reporting Process . 73Reporting Function. 77General Reporting Process. 77Internal Reporting . 78External Reporting . 82Metric Tracking System Reporting. 83Core Financial System Technical Requirements . 85General Design/Architecture. 85Infrastructure. 86User Interfaces. 87Interoperability . 88Workflow/Messaging. 90Document Management. 91Internet Access . 92Security . 93Operations . 94Ad Hoc Query . 96Documentation. 97System Performance . 99Appendix A—ReferencesAppendix B—GlossaryAppendix C—Summary of Standard External Reports from Core Financial SystemsAppendix D—Requirement Drafting GuidelinesCore Financial System Requirementsiv

Table of ContentsIllustrationsIllustration 1: FFMSR Components .4Illustration 2: Core System Functions .8Illustration 3: Technical Requirement Groupings .9Core Financial System Requirementsv

AcronymsACCACEACHACRALCANSIAPIATBBETCBPACCDCCD NSECSEDIEFTFACTS IFACTS g Classification CodeAccounting Classification ElementAutomated Clearing HouseAgency Confirmation ReportAgency Location CodeAmerican National Standards InstituteApplication Program InterfaceAdjusted Trial BalanceBusiness Event Type CodeBlanket Purchase AgreementCash Concentration or DisbursementCash Concentration or Disbursement Plus AddendumCentral Contractor RegistrationChief Financial OfficerChief Financial Officers CouncilCode of Federal RegulationsCash Management Improvement ActContracting Office(r) Technical RepresentativeCommercial Off-the-ShelfCorporate Trade ExchangeDoing Business AsDebt Collection Improvement Act of 1996Document Management AllianceDisbursing Office(r)Department of JusticeDeposit Ticket/Deposit VoucherData Universal Numbering SystemElectronic Certification SystemElectronic Data InterchangeElectronic Funds TransferFederal Agencies Centralized Trial Balance System IFederal Agencies Centralized Trial Balance System IIFederal Acquisition RegulationFederal Accounting Standards Advisory BoardFund Balance with TreasuryFederal Financial Management Improvement Act of 1996Federal Financial Management System RequirementsFederal Managers’ Financial Integrity Act of 1982Department of the Treasury Financial Management ServiceFreight On BoardFull-Time EquivalentGeneral Accounting OfficeCore Financial System Requirementsvii

PDFPKIPPDPPD . SGLVIMVPNWFMCXMLGovernment Management Reform Act of 1994Government Online Accounting Link SystemGovernment Performance and Results Act of 1993Governmentwide Financial Report SystemGeneral Services AdministrationGovernmentwide AccountingIntegrated Acquisition EnvironmentInformation Access System (GOALS II)International Direct DepositIntra-governmental Transaction ExchangeIntra-governmental Payment and Collection SystemInternal Revenue ServiceInformation TechnologyMessaging API-WorkflowMetric Tracking SystemMultiple Virtual SystemNational Automated Clearing House AssociationNational Institute of Standards and TechnologyOpen Document Architecture/Open Document Interface FormatOpen Document Management ArchitectureOffice of Federal Financial ManagementOffice of Management and BudgetOnline Payment and Collection SystemOperating SystemPortable Document FormatPrivate Key InfrastructurePrearranged Payment and DepositPrearranged Payment and Deposit Plus AddendumRegional Finance CenterRouting Transit NumberSecure Payment SystemStatements of Federal Financial Accounting StandardsStandard Generalized Markup LanguageTreasury Appropriation Fund SymbolTreasury Account SymbolTransmission Control Protocol/Internet ProtocolTreasury Financial ManualTaxpayer Identification NumberTreasury Report on ReceivablesUnited States CodeU.S. Standard General LedgerVendor Independent MessagingVirtual Private NetworkWorkflow Management CoalitionExtensible Markup LanguageCore Financial System Requirementsviii

IntroductionThis document is part of a series of publications entitled Federal Financial Management SystemRequirements (FFMSR). FFMSR specifies the mandatory functional and technical requirementsthat agency financial management systems must meet in order to be considered compliant withFederal standards as mandated by the Federal Financial Management Improvement Act (FFMIA).OMB Circular A-127, Financial Management Systems, sets forth general policies for federalfinancial management systems. Each agency is required to establish and maintain a singleintegrated financial management system. Each agency must have an ongoing financial systemsimprovement planning process and perform periodic reviews of its financial system capabilities. Inaddition, each agency must maintain financial management system components that comply withuniform Federal accounting concepts and standards promulgated by the Federal AccountingStandards Advisory Board (FASAB) in its Statements of Federal Financial Accounting Standards(SFFAS), which constitute generally accepted accounting principles for the Federal Government.Establishing governmentwide system requirements promotes a common understanding amongprivate- and public-sector financial managers and agency program managers regarding Coresystem functional and technical capabilities. Such requirements serve as a tool for the oversightagencies to evaluate systems. They help justify agency system improvements or replacements.They also help organize the private-sector market by communicating mandatory functionality thatcommercial software must provide to Federal agencies and identifying value-added featuresdesired by Federal agencies.The next section of this document sets forth the framework for the establishment andmaintenance of an integrated Federal financial management system. The Core specific financialsystem requirements are presented in detail in the functional and technical requirements sectionsthat follow. These requirements, which are reviewed and updated periodically, incorporate thelatest changes in laws and regulations governing Federal financial systems, such as the Intragovernmental Payment and Collection System (IPAC) and Central Contractor Registration (CCR).Appendices provide references, a glossary, a summary of external reporting requirements, andrequirements drafting guidelines.This document is being distributed as an exposure draft to solicit comments on the latestfunctional and technical requirements. Once it is republished, agencies and vendors will need toaddress the final version of all mandatory Core requirements when planning for new financialsystem acquisitions and development. (This paragraph will be omitted in the final publication.)Core Financial System Requirements1

Core Financial System Requirements2

Federal Financial Management FrameworkThe Framework for Federal Financial Management Systems document describes the basicelements of a model for integrating financial management systems in the Federal Government.It provides a foundation for all systems included in the FFMSR. The Framework wasrepublished in April 2004. This updated document description does the following: Explains how Federal financial management supports Federal agencies and the missionof government as an inherent component of the delivery of all Federal programs Sets forth financial management performance goals, outcomes, and desired capabilitiesand characteristics that future systems must be designed to meet Describes financial management functions, information flows, and systems that supportthe Federal agencies in carrying out programs Describes the agency and central agency roles Links financial management to program performance and describes how it supportsbudget and performance integration Presents the business needs, performance goals, and information architecture that drivefinancial system requirements.Federal Financial Management System Requirements(FFMSR) ModelThe current model comprises the Framework, Core, Managerial Cost Accounting, and 13subsidiary financial or mixed systems. Such systems must be able to provide consistent,standardized information for program managers, financial managers, agency executives, andoversight organizations, and must meet Federal statutes, regulations, and standards.Illustration 1 provides a view of the current financial management applications described by theFFMSR series. The system functions and technical requirement groupings that comprise theCore application are reflected later in Illustrations 2 and 3.Core Financial System Requirements3

Federal Financial Management ForfeitedAssetsManagerial CostAccountingTravelHumanResources& PayrollNon-FinancialBenefitCoreGeneral eGrantFinancialRevenueInventorySupplies lIllustration 1: FFMSR ComponentsFramework GoalsThe following financial management system performance goals, outlined in the Frameworkdocument, are applicable to all financial management systems. All financial managementsystems must do the following: Demonstrate compliance with accounting standards and requirements Provide timely, reliable, and complete financial management information for decisionmaking at all levels of government Meet downstream information and reporting requirements with transaction processingdata linked to transaction engines Accept standard information integration and electronic data to and from other internal,governmentwide, or private-sector processing environments Provide for “one-time” data entry and reuse of transaction data to support downstreamintegration, interfacing, or business and reporting requirements Build security, internal controls, and accountability into processes and provide an audittrail Be modular in design and built with reusability as an objective Meet the needs for greater transparency and ready sharing of information Scale to meet internal and external operational, reporting, and information requirementsfor both small and large entities.Core Financial System Requirements4

Requirements GuidelinesFinancial management system development and implementation efforts shall seek cost-effectiveand efficient solutions as required by OMB Circular A-130, Management of Federal InformationResources. Agencies are required to use commercial off-the-shelf (COTS) software to reducecosts, improve the efficiency and effectiveness of financial system improvement projects, andreduce the risks inherent in developing and implementing a new system. However, the agencyhas the ultimate responsibility for implementing sound financial management practices andsystems.ApplicabilityEach requirement is prioritized as being mandatory or value-added. Mandatory. Mandatory requirements describe what the system must do and consist ofthe minimum acceptable functionality necessary to establish a system or are based onFederal laws, regulations, and governmentwide consensus. Mandatory requirements arethose against which agency heads evaluate their systems to determine substantialcompliance with systems under FFMIA. These requirements apply to existing systemsand new systems that are planned or are under development. Value-added. Value-added requirements describe features or characteristics that mayconsist of any combination of the following: use state-of-the-art technology, employpreferred or best business practices, or meet the sp