Federal Financial Management System Requirements

1 Federal Financial Management System Requirements OFFM-NO-0106. January 2006. Abbreviations x Core Financial System Requirements Abbreviations x Core Financial System Requirements Contents Abbreviations ..vii Introduction .. 1. Federal Financial Management 2. FFMSR MODEL .. 2. FRAMEWORK GOALS .. 3. Requirements Interpretation 4. MANDATORY VERSUS VALUE-ADDED Requirements .. 4. INTERNAL CONTROL Requirements .. 5. QUERY VERSUS REPORT Requirements .. 5. Requirements 6. Core Financial System Overview .. 8. CORE System FUNCTIONS .. 8. CORE Financial System FUNCTIONAL Requirements SUMMARY .. 9. System Management Function .. 11. ACCOUNTING CLASSIFICATION 11. DOCUMENT AND TRANSACTION CONTROL PROCESS .. 13. DOCUMENT REFERENCING AND MODIFICATION PROCESS .. 17. System -GENERATED TRANSACTIONS PROCESS .. 20. AUDIT TRAILS PROCESS .. 22.

2 general Ledger Management Function .. 24. general LEDGER ACCOUNT DEFINITION PROCESS .. 24. TRANSACTION DEFINITION 25. general LEDGER UPDATING AND EDITING PROCESS .. 26. UPWARD/DOWNWARD SPENDING ADJUSTMENT PROCESS .. 27. general LEDGER ANALYSIS AND RECONCILIATION PROCESS .. 28. Core Financial System Requirements iii Contents ACCOUNTING PERIOD MAINTENANCE AND CLOSING PROCESS .. 29. Financial REPORTING PROCESS .. 30. Budgetary Resource Management 34. BUDGET PLANNING PROCESS .. 34. BUDGET PREPARATION PROCESS .. 35. BUDGET AUTHORITY PROCESS .. 37. FUNDS DISTRIBUTION PROCESS .. 38. FUNDS CONTROL PROCESS .. 40. FUNDS STATUS PROCESS .. 43. Payment Management Function .. 46. PAYEE INFORMATION MAINTENANCE PROCESS .. 46. ACCOUNTS PAYABLE PROCESS .. 49. INVOICING PROCESS .. 50. DISBURSING PROCESS .. 53. PAYMENT FOLLOW-UP PROCESS.

3 59. Receivable Management 62. CUSTOMER INFORMATION MAINTENANCE PROCESS .. 63. RECEIVABLES AND BILLING 64. DEBT Management PROCESS .. 67. COLLECTIONS AND OFFSETS PROCESS .. 70. Cost Management Function .. 73. COST SETUP AND ACCUMULATION PROCESS .. 73. COST DISTRIBUTION PROCESS .. 74. COST REPORTING PROCESS .. 75. Fund Balance with Treasury Management 76. TREASURY INFORMATION MAINTENANCE PROCESS .. 76. PAYMENT CONFIRMATION PROCESS .. 77. RECONCILIATION AND REPORTING PROCESS .. 78. Core Financial System Requirements iv Contents Technical System Requirements .. 82. general DESIGN/ architecture .. 82. 83. USER INTERFACES .. 84. INTEROPERABILITY .. 85. WORKFLOW/MESSAGING .. 86. DOCUMENT Management .. 87. INTERNET ACCESS .. 88. SECURITY .. 88. 90. AD HOC QUERY .. 91. DOCUMENTATION .. 93. System PERFORMANCE .. 94. Appendix A References Appendix B Requirement Drafting Guidelines Appendix C Standard Core Financial System Reports Appendix D Contributors Figures Figure 1: FFMSR Components.

4 2. Figure 2: System Functions .. 8. Figure 3: Technical Requirement Groupings .. 9. Core Financial System Requirements v Contents Core Financial System Requirements vi Abbreviations ACC Accounting Classification Code ACE Accounting Classification Element ACH Automated Clearing House ACR Agency Confirmation Report ALC Agency Location Code ANSI American National Standards Institute API Application Program Interface ATB Adjusted Trial Balance BEA Budget Enforcement Act of 1990. BETC Business Event Type Code BPA Blanket Purchase Agreement CCD Cash Concentration or Disbursement CCD+ Cash Concentration or Disbursement Plus Addendum CCR Central Contractor Registration CFO Chief Financial Officer CFOC Chief Financial Officers Council CFR Code of Federal Regulations CMIA Cash Management Improvement Act COTR Contracting Office(r) Technical Representative COTS Commercial Off-the-Shelf CTX Corporate Trade Exchange CVF Current Value of Funds DBA Doing Business As DCIA Debt Collection Improvement Act of 1996.

5 DMA Document Management Alliance DO Disbursing Office(r). DOJ Department of Justice DT/DV Deposit Ticket/Deposit Voucher DUNS Data Universal Numbering System ECS Electronic Certification System EDI Electronic Data Interchange EFT Electronic Funds Transfer FACTS I Federal Agencies Centralized Trial Balance System I. FACTS II Federal Agencies Centralized Trial Balance System II. FAR Federal Acquisition Regulation FASAB Federal Accounting Standards Advisory Board FAST Federal Account Symbols and Titles FBWT Fund Balance with Treasury FFMIA Federal Financial Management Improvement Act of 1996. FFMSR Federal Financial Management System Requirements FMFIA Federal Managers' Financial Integrity Act of 1982. FMS Department of the Treasury Financial Management Service vii Core Financial System Requirements Abbreviations FOB Free On Board FSB Financial Systems Branch FSC Federal Supply Classification FTE Full-Time Equivalent GAO general Accountability Office GMRA Government Management Reform Act of 1994.

6 GOALS Government Online Accounting Link System GPRA Government Performance and Results Act of 1993. GFRS Governmentwide Financial Report System GSA general Services Administration GWA Governmentwide Accounting IAE Integrated Acquisition Environment IAS Information Access System (GOALS II). IDD International Direct Deposit IGTE Intra-governmental Transaction Exchange IPAC Intra-governmental Payment and Collection System IRS Internal Revenue Service IT Information Technology MAPI-WF Messaging API-Workflow MIME Multipurpose Internet Mail Extensions MTS Metric Tracking System MVS Multiple Virtual System NACHA National Automated Clearing House Association NAICS North American Industry Classification System NARA National Archives and Records Administration NIST National Institute of Standards and Technology ODA/ODIF Open Document architecture /Open Document Interface Format ODMA Open Document Management architecture OFFM Office of Federal Financial Management OMB Office of Management and Budget OPAC Online Payment and Collection System OS Operating System PDF Portable Document Format PKI Private Key

7 Infrastructure PPD Prearranged Payment and Deposit PPD+ Prearranged Payment and Deposit Plus Addendum RFC Regional Finance Center PSC Product Service Code RTN Routing Transit Number SAM Shared Accounting Module SCS Secure Payment System SFFAS Statements of Federal Financial Accounting Standards SGML Standard Generalized Markup Language SIC Standard Industrial Classifications SQL Structured Query Language viii Core Financial System Requirements Abbreviations SPS Secure Payment System TAFS Treasury Appropriation Fund Symbol TAS Treasury Account Symbol TCP/IP Transmission Control Protocol/Internet Protocol TDO Treasury Disbursing Office TFM Treasury Financial Manual TIN Taxpayer Identification Number TROR Treasury Report on Receivables United States Code SGL Standard general Ledger VIM Vendor Independent Messaging VPN Virtual Private Network WFMC Workflow Management Coalition XML Extensible Markup Language ix Core Financial System Requirements Abbreviations x Core Financial System Requirements Introduction This document is part of a series of publications entitled Federal Financial Management System Requirements (FFMSR).

8 FFMSR specifies the mandatory functional and technical Requirements that agency Financial Management systems must meet in order to be considered compliant with Federal standards as mandated by the Federal Financial Management Improvement Act (FFMIA). OMB Circular A-127, Financial Management Systems, sets forth general policies for Federal Financial Management systems. Each agency is required to establish and maintain a single integrated Financial Management System . Each agency must have an ongoing Financial systems improvement planning process and perform periodic reviews of its Financial System capabilities. In addition, each agency must maintain Financial Management System components that comply with uniform Federal accounting concepts and standards promulgated by the Federal Accounting Standards Advisory Board (FASAB) in its Statements of Federal Financial Accounting Standards (SFFAS), which constitute generally accepted accounting principles for the Federal Government.

9 A complete list of laws, regulations and governmentwide standards that are addressed by specific Requirements can be found in Appendix A, References. Establishing governmentwide System Requirements promotes a common understanding among private- and public-sector Financial managers and agency program managers regarding Core System functional and technical capabilities. Such Requirements serve as a tool for the oversight agencies to evaluate systems. They help justify agency System improvements or replacements. They also help organize the private-sector market by communicating mandatory functionality that commercial software must provide to Federal agencies and identifying value-added features desired by Federal agencies. The next section of this document sets forth the framework for the establishment and maintenance of an integrated Federal Financial Management System .

10 The specific Core Financial System Requirements are presented in detail in the functional and technical Requirements sections that follow. These Requirements , which are reviewed and updated periodically, incorporate the latest changes in laws and regulations governing Federal Financial systems, such as the Intra- governmental Payment and Collection System (IPAC) and Central Contractor Registration (CCR). Appendices provide references, a glossary, a summary of external reporting Requirements , Requirements drafting guidelines and a list of agencies that participated in updating this document. Core Financial System Requirements 1. Federal Financial Management Framework The Framework for Federal Financial Management Systems document describes the basic elements of a model for integrating Financial Management systems in the Federal Government.