United States General Accounting Office

GAO Financial Management Series

May 1998 Framework for Federal

Financial Management

System Checklist

Systems Reviewed Under

the Federal Financial

Management

Improvement Act of 1996

GAO/AIMD-98-21.2.1

 

PREFACE

B-278190

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, among

other things, that agencies implement and maintain management systems that

substantially comply with federal financial management systems requirements. These

requirements are detailed in the Financial Management Systems Requirements series

issued by the Joint Financial Management Improvement Program (JFMIP) and in Office of

Management and Budget (OMB) guidance (Circular A-127 and September 9, 1997

implementation guidance).

To assist in reviews of financial management systems under the requirements of FFMIA,

we are issuing three checklists concurrently as practice aids. Two of the checklists

reflect the system requirements defined by JFMIP, while the third checklist is based on

the JFMIP framework document. The third checklist describes a single, integrated

financial management system and, as set forth in the JFMIP framework document, is

primarily a reference source rather than a standard-setting document.

This checklist reflects JFMIP's Framework for Federal Financial Management System

Requirements. Although the framework document is primarily a reference tool rather

than a standard-setting document, it is intended to promote understanding of key financial

management systems concepts and requirements, especially as they relate to system

integration.1

 This checklist is not required to be used in assessing system integration. It

is provided as a practice aid available for use as a tool by experienced staff. When used,

this checklist, the JFMIP source document, and the two previously mentioned OMB

documents (Circular A-127 and the September 9, 1997, implementation guidance) should

be referred to concurrently.

Experienced judgment must be applied in the interpretation and application of this guide

to enable the user to consider the impact of the completed checklist on the entire

financial management systems framework and whether that system as a whole is

substantially and appropriately integrated.

As technology progresses, new applications emerge replacing older, less efficient and less

effective ones. Policies and procedures in effect under older technologies give way to

new and different processes. Judgment must be used when assessing an agency's systems

 

1The JFMIP documents and OMB Circular A-127, Financial Management Systems, require

each agency to establish and maintain a single integrated financial management system.

GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
framework against the JFMIP guidance in order to recognize when new and different

technologies, although not specified in the framework, achieve the objectives of the

JFMIP systems requirements.

The JFMIP systems requirements series supersedes the standards previously issued in

appendix III, "Systems Standards," Title 2, "Accounting," of the GAO Policy and

Procedures Manual for Guidance of Federal Agencies.

Additional copies of this checklist can be obtained from Room 1100, 700 4th St. NW, U.S.

General Accounting Office, Washington, D.C. 20548, or by calling (202) 512-6000, or TDD

(202) 512-2537. It is also available on the Internet on GAO's Home Page (www.gao.gov)

under "Special Publications."

Gene L. Dodaro

Assistant Comptroller General

Accounting and Information Management Division

Page 3 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

CONTENTS

Preface 1

Overview 5

Authoritative Guidance 6

How to Use This Checklist 7

Requirements Checklist 9

Processes 11

Data Stewardship 20

Management Information 36

System Architecture 53

Internal Control 61

Implementing Integrated Model 75

Figure

Figure 1: Agency Systems Architecture 5

Abbreviations

CASE computer aided software engineering

FFMIA Federal Financial Management Improvement Act of 1996

FTE full time equivalent

GSA General Services Administration

JFMIP Joint Financial Management Improvement Program

OMB Office of Management and Budget

OPM Office of Personnel Management

SGL standard general ledger

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Page 5 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

OVERVIEW

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, among

other things, that agencies implement and maintain financial management systems that

substantially comply with federal financial management systems requirements. These

system requirements are detailed in the Financial Management Systems Requirements

series issued by the Joint Financial Management Improvement Program (JFMIP) and

Office of Management and Budget (OMB) Circular A-127, Financial Management Systems. 

JFMIP requirements series identify (1) a framework for financial management systems, (2)

core financial systems requirements, and (3) 16 other systems supporting agency

operations. Figure 1 illustrates how these elements fit together in an agency systems

architecture.

Figure 1: Agency Systems Architecture

Source: JFMIP Federal Financial Management System Requirements documents.

Page 6 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
To date, JFMIP has issued the framework and core documents and 7 of the 16 systems

identified in the architecture (See figure 1.).2

 The framework is unique in that it is the

only document in the requirement series intended primarily as a reference tool rather

than a standard-setting document. It summarizes the relationship between the other

documents in the series. Specifically, the framework

"describes what is meant by a single, integrated financial management system at a

federal agency and how the financial management systems throughout the

government can work together to support consistent, accurate information flows to

all information users. It demonstrates how financial management systems support

the management and operation of the federal government. Further, it summarizes

the relationship between the other documents issued in the Federal Financial

Management System Requirements series published by the JFMIP."3

In December 1997, GAO issued eight exposure drafts proposing checklists for the then

eight documents in the JFMIP series. In early 1998, JFMIP decided to initiate projects to

update two of those documents (systems related to employee travel and payroll) and to

assess three others (systems related to seized/forfeited assets, direct loans, and loan

guarantees) to determine the extent updates may be needed, and if needed, to initiate

revisions. When the two documents are updated and the three are either updated or

determined not to need revision, GAO will issue related final checklists.

Until the revisions are completed, the exposure drafts reflecting the existing five system

requirements documents will be available for use to the extent agencies wish to apply

them. Also, in February 1998, JFMIP issued Managerial Cost Accounting Systems

Requirements. GAO will develop a checklist of those requirements.

Authoritative Guidance

OMB Circular A-127 and OMB's Implementation Guidance for the Federal Financial

Management Improvement Act (FFMIA) of 1996, issued September 9, 1997, provide the

basis for assessing compliance with the FFMIA requirement for agencies to implement

and maintain financial management systems that comply substantially with federal

requirements. OMB's September 1997 implementation guidance identifies various criteria

that an agency must meet to be in substantial compliance with these requirements. One

of the criteria listed in the OMB guidance is the JFMIP systems requirements series.

 

2Thus far, the series includes the (1) Framework for Federal Financial Management

Systems, (2) Core Financial System Requirements, (3) Inventory System Requirements, (4)

Seized/Forfeited Asset System Requirements, (5) Direct Loan System Requirements, (6)

Guaranteed Loan System Requirements, (7) Travel System Requirements, (8) PersonnelPayroll System Requirements, and (9) Managerial Cost Accounting System Requirements.

3Framework for Federal Financial Management Systems, January 1995, JFMIP, p. 3.

Page 7 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
The source of all the questions in this checklist is the Joint Financial Management

Improvement Program Federal Financial Management System Requirements Framework

for Federal Financial Management Systems (FFMSR-0, January 1995).

How to Use This Guide

OMB's 1997 implementation guidance provides indicators for chief financial officers and

inspectors general to assist them in determining whether agency's financial management

systems substantially comply with federal financial management systems requirements. 

The annual assurance statement required pursuant to section 4 of the Federal Managers'

Financial Integrity Act is one of those indicators. Agencies can use GAO's checklists to

help determine annual compliance with section 4 of the act.

Filling out this checklist will allow agencies to systematically determine whether the

appropriate level of integration is achieved. In determining the extent of integration,

agencies should assess the results of the completed checklist on the systems framework

taken as a whole. "No" answers should not be viewed by themselves or taken out of

context. Rather, "no" answers should be assessed as to the impact on the overall system

and the extent to which the "no" answers inhibit the entire system from meeting

necessary integration.

In the checklist, two columns follow each question. Use the first column to answer each

question "yes," "no," or "na." Use the second column to explain your answer. A "yes"

answer should indicate that the agency's system or systems provide for the capability

described in the question. For each "yes" answer, the second column should contain a

brief description of how the system(s) contain the 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 second

column should provide an explanation and, where applicable, a reference to any related

supporting documentation. Such explanations could include the following examples: (1)

the agency is working on modifying or implementing its system(s) to have the capability

available in subsequent years or (2) management believes the capability is not cost

effective and will not enhance the systems' ability to manage operations. Cost-benefit

studies that support each explanation should be identified in the explanation column. If

there are no cost-benefit studies or other support, a full explanation should be provided.

Not every guide may apply to each agency. Further, while a guide may be applicable to

an agency, certain questions within the guide may not be applicable. Answer such

nonapplicable question(s) with "na" and provide an appropriate explanation in the second

column.

Page 8 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
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Page 9 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

FRAMEWORK FOR FEDERAL FINANCIAL MANAGEMENT

SYSTEMS

 

JFMIP's framework document presents an integrated financial management system that

supports budget, accounting, and cost needs essential for complying with laws and

policies.

The six elements of the framework for federal financial management systems are

discussed below. The first five comprise an integrated model whose individual parts must

work together to create an effective integrated information system. Changing any part of

the model will affect the other parts. The sixth element is the implementation of the

model.

1. The scope of the functions to be supported: the processes in program

execution to support program delivery/financing and financial event processing

necessary to carry out programmatic objectives. (The checklist questions for

this area are drawn from pp. 14-24 of the source document.)

2. How data quality will be assured: data stewardship to manage the data within

the financial management systems. Data stewardship provides the link

between program execution processes, information, and systems architecture

to ensure that appropriate information is collected, classified, maintained

accurately, and reported in a timely manner. (The checklist questions for this

area are drawn from pp. 25-34 of the source document.)

3. The information to be processed: management information for program

execution to capture and classify information on the status and use of financial

resources at federal agencies, the efficiency of government operations, the

effectiveness of program delivery, and individual financial events occurring

during program execution. The information architecture includes both event

level and reporting level architectures. (The checklist questions for this area

are drawn from pp. 35-46 of the source document.)

4. How systems fit together to support the functions: system architecture for

program execution to support program execution processes and the effective

and efficient collection, maintenance, and reporting of management

information. (The checklist questions for this area are drawn from pp. 47-56 of

the source document.)

5. Safeguards needed to ensure the integrity of operations and data: internal

control to provide reasonable assurance of the effectiveness and efficiency of

Page 9 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

FRAMEWORK FOR FEDERAL FINANCIAL MANAGEMENT

SYSTEMS

 

operations in meeting basic business objectives, the reliability of financial

reporting, and compliance with applicable laws and regulations. (The checklist

questions for this area are drawn from pp. 57-64 of the source document.)

6. Implementing the integrated model for financial management systems: the

important areas for consideration in planning, designing, implementing,

operating, and maintaining an integrated financial management system.4

 (The

checklist questions for this area are drawn from pp. 65-77 of the source

document.)

The checklist questions follow the JFMIP source document. 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 glossary along

with the two previously mentioned OMB documents will help ensure that the user is

cognizant of the background information necessary to fully understand the questions.

 

4GAO has developed a standardized methodology for evaluating critical issues associated

with automated systems development and operations--the System Assessment Framework

(SAF). The methodology is also available to agencies on request.

Page 10 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

Integration of Program Delivery/Financing with Transaction Tracking (See

illustration III-7, page 22 of source document.)

 1. Is the agency's transfer

payments function integrated

with the following transaction

tracking functions:

-- receivables/collections?

-- payables/disbursements?

 2. Is the agency's grants and

subsidies function integrated

with the following

transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

-- property accounting?

 3. Is the agency's loans function

integrated with the following

transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

-- property accounting?

Page 11 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

 4. Is the agency's insurance

function integrated with the

following transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

 5. Is the agency's personnel

function integrated with the

following transaction tracking

functions:

-- payroll?

-- travel?

 6. Is the agency's acquisition

function integrated with the

following transaction tracking

functions:

-- payables/disbursements?

-- property accounting?

-- inventory accounting?

 7. Is the agency's property

management function

integrated with the property

accounting?

Page 12 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

 8. Is the agency's inventory

management function

integrated with the inventory

accounting?

 9. Is the agency's taxation

function integrated with the

following transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

10. Is the agency's fee and other

revenue generation functions

integrated with the following

transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

11. Is the agency's public debt

function integrated with the

following transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

Page 13 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

12. Is the agency's deposit funds

function integrated with the

following transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

13. Is the agency's

intragovernmental collections

function integrated with the

following transaction tracking

functions:

-- receivables/collections?

-- payables/disbursements?

Integration of Budget Formulation and Transaction Tracking with Financial

Accountability (See illustration III-8, page 23 of source document.)

14. Is the agency's budget

formulation function

integrated with the following

financial accountability

functions:

-- budget execution?

-- financial accounting?

-- cost accounting?

Page 14 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

15. Is the agency's receivables/

collections function

integrated with the following

financial accountability

functions:

-- budget execution?

-- financial accounting?

-- cash management?

16. Is the agency's payables/

disbursements function

integrated with the following

financial accountability

functions:

-- budget execution?

-- financial accounting?

-- cash management?

-- cost accounting?

17. Is the agency's payroll

function integrated with the

following financial

accountability functions:

-- budget execution?

-- financial accounting?

-- cost accounting?

Page 15 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

18. Is the agency's travel

function integrated with the

following financial

accountability functions:

-- budget execution?

-- financial accounting?

-- cost accounting?

19. Is the agency's property

accounting function

integrated with the following

financial accountability

functions:

-- financial accounting?

-- cost accounting?

20. Is the agency's inventory

accounting function

integrated with the following

financial accountability

functions:

-- financial accounting?

-- cost accounting?

Page 16 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

Integration Among Functions in the Same Category (See illustration III-9, page 24

of source document.)

21. Is the agency's receivables/

collections function

integrated with the

payables/disbursements

transaction tracking function?

22. Is the agency's payables/

disbursements function

integrated with the

receivables/collections

transaction tracking function?

23. Is the agency's payroll

function integrated with the

following other transaction

tracking functions:

-- receivables/collections?

-- payables/disbursements?

24. Is the agency's travel

function integrated with the

following other transaction

tracking functions:

-- receivables/collections?

-- payables/disbursements?

-- payroll?

Page 17 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

25. Is the agency's property

accounting function

integrated with the

receivables/collections

transaction tracking function?

26. Is the agency's inventory

accounting function

integrated with the

receivables/collections

transaction tracking function?

27. Is the agency's grants and

subsidies function integrated

with the property

management program

function?

28. Is the agency's loans function

integrated with the property

management program

function?

29. Is the agency's acquisition

function integrated with the

following other program

function:

-- property management?

-- inventory management?

Page 18 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

30. Is the agency's property

management function

integrated with the

acquisition program function?

31. Is the agency's inventory

management function

integrated with the

acquisition program function?

Page 19 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 1. Has the agency received from

the central agencies

responsible for collecting

governmentwide data clear

communication of the

governmentwide data

requirements and clear

instructions for the collection

of such data?

 2. Is the agency data provided

to central agencies verified

by the central agencies to

ensure that data collected are

in compliance with reporting

requirements?

Page 20 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 3. Is the Office of Management

and Budget (OMB)

 -- establishing government

policies for collection and

reporting of

governmentwide

information?

 -- ensuring integrity and

consistency in

governmentwide

definitions, including

maintaining a master

governmentwide data

dictionary?

 -- coordinating among OMB,

Treasury, and the

program agencies the

determination of

acceptable parameters for

collecting governmentwide data?

Page 21 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 4. Are the Department of the

Treasury and other central

agencies (such as General

Services Administration

(GSA) and Office of

Personnel Management

(OPM)) 

-- maintaining the

governmentwide financial

information systems

infrastructure?

 -- collecting the program

agency financial data

necessary to meet the

central agencies'

information requirements?

-- supporting governmentwide data integrity by

validating (a) compliance

with reporting

requirements and (b) the

reasonableness of the

data provided within

predefined parameters?

Page 22 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 5. Are program agencies and

their program managers, as

operational data stewards for

agency data necessary to

carry out the program

mission(s) of the agency,

recording and reporting on

agency financial events in

conformance with

government policies and

agency needs, and

maintaining the integrity of

the agency data created by

-- processing the financial

transactions?

-- collecting and recording

the agency information?

-- maintaining data

dictionaries supporting

the agencywide data

classification structure

that complies with

governmentwide policy

and agency information

requirements?

-- providing timely,

complete, accurate and

consistent financial

information on agency

resources and operations?

Page 23 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 6. Does the agency ensure the

integrity of

-- data provided to the

central agencies, the

Congress, and external

organizations?

-- data available to internal

management for decisionmaking?

 7. Does the agency provide

assurance that agency data

collection and reporting

processes are in compliance

with governmentwide policies

and regulations and meet the

agency's unique mission and

management objectives?

 8. Does the agency ensure that

a logical data architecture is

contained within the financial

management system and is

consistent with critical

information requirements,

such as the Standard General

Ledger? (This includes the

migration to new standards

and approval and

implementation of changes.)

Page 24 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

 9. Has the agency obtained data

requirements from various

sources and converted the

requirements into coding and

journal entry standards for

operational users of the

system?

10. Has the agency obtained

functional data requirements

and assured that consistent

naming conventions are

maintained within the

programming and tables for

each element defined?

11. Has the agency assured that

the system is able to accept

and process the data coming

to it from its many different

sources?

12. Has the agency ensured that

(a) data have been prepared

under sufficient general

ledger controls and (b) the

system transaction validation

edits are performed prior to

updating the system? (This

includes maintenance of local

databases and data feeds

when necessary.)

Page 25 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

13. Does the agency provide user

access to the system through

the use of predefined reports,

ad hoc reports, or raw data

queries?

14. Are independent auditors

able to review and verify

whether (a) agency reports

fairly present the financial

position and results of

operations, (b) internal

controls are adequate, and

(c) laws and regulations have

been complied with?

15. Are agency certifying officials

able to ensure the availability

of funds and propriety of

payments?

16. Are agency managers acting

as certifying officials able to

attest to the accuracy of

reports?

17. Are inspectors general able

to report on program

operations?

Page 26 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

18. Does the agency's control

over financial data integrity

require

-- the application of

balancing rules to

maintain control

equations that support the

accounting principles and

standards for the entity?

-- identification of

transaction sources to

allow tracing of general

ledger balances to original

transactions?

-- recognition of the period

to which a transaction

applies consistent with

normal business and

transaction cycles?

-- sufficient detail captured

from events to support

proper classifications and

summarizations of

financial information?

19. Does the agency's data

architecture provide

classifications to support

budgetary control?

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Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

20. Does the agency's chart of

accounts include a complete

listing of the account

numbers used to support the

control needed to ensure that

resources used do not exceed

resources authorized?

21. Does the posting of financial

events to the agency's

financial management

systems create balances in

the agency's general ledger

that reflect the status of

budget execution?

22. Are the agency's account

numbers--which are

established to manage

budgetary resources at levels

more detailed than those

established by appropriation

legislation--consistent with

the appropriation

requirements?

23. Does the agency collect data

consistent with the basic

accounting equation?

Page 28 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

24. Does the agency's chart of

accounts include a complete

listing of the account

numbers used to support

-- the basic accounting

equation?

-- reporting to central

agencies?

-- preparation of financial

statements?

-- specific agency

management reporting

needs?

25. Are the agency's account

numbers--which are

established to track financial

events at levels more detailed

than those established for

central agency reporting

purposes--consistent with the

governmentwide financial

classifications?

26. Does the agency's posting of

financial events to its

financial management

systems create balances in

the general ledger that reflect

the financial position of the

entity based on the

accounting equation?

Page 29 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

27. Does the agency's data

architecture provide

classifications to support

management of the cash of

the federal government and

reporting of cash activity?

28. Does the agency's chart of

accounts, at a minimum, have

codes to provide control

totals to track cash activity

by receiving or disbursing

location? (This function links

the budget execution and

financial accounting

functions by examining the

impact of obtaining and using

resources on the cash

position of the agency.)

29. Does the agency's data

architecture provide

classifications to capture cost

data to support managerial

cost accounting? (This

function must link to budget

execution and financial

accounting functions to

ensure proper control over

cost information.)

Page 30 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

30. Does the agency's chart of

accounts have codes to

provide control totals to

maintain control over costs

and to reconcile with other

feeder systems that may be

used to accumulate costs?

31. Does the agency ensure that

data provided to central

agencies are consistent with

the requirements for

governmentwide information

and that such information is

comparable with other

agencies?

32. Does the agency apply the 

U.S. Government Standard

General Ledger (SGL)at the

transaction level? (The

primary purpose of the SGL 

(as defined by the SGL Board

and maintained by the

Department of the Treasury)

is to standardize federal

agency accounting, to

support the external reports

and financial statements

required by OMB and

Treasury, and to provide

comparable information

among agencies.)

Page 31 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

33. Does the agency maintain an

agency level SGL as

prescribed by the central

agencies? The basic types of

accounts are

-- Budgetary

-- Proprietary

-- Memorandum

34. Are additional detailed

accounts that may be

required by the agency

consistent with the

conceptual framework

prescribed in the SGL?

35. Is information accessible

from the agency's general

ledger using the SGL

accounts?

36. Is detailed information

maintained in systems other

than the agency's general

ledger, at a minimum,

accessible based on the SGL

classification with assurance

that the summarized data are

maintained in the general

ledger?

Page 32 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

37. Is the agency able to provide

assurance that data collected

and reported are accurate

and follow government

policies? (One level of

assurance of the accuracy

and integrity of data is

provided by the attainment of

an unqualified opinion on the

audited annual financial

statements and internal

controls.)

38. Is there assurance of the

integrity of the agency's

budget execution data, cost

data, performance measures,

and data that are immaterial

or not within the scope of a

financial statement audit for

other reasons?

Page 33 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

39. Is the program agency

providing further internal

assurance over the quality,

integrity, and usability of data

at all levels? (Such

assurances can be provided

through good procedures to

ensure that (a) data are

accurately recorded and

processed through the

financial management

systems, (b) periodic reviews

are conducted to ensure

procedures are being

followed, and (c) procedures

are continually being

improved.)

40. Do the agency's procedures

include

-- work tasks and

application systems

supporting the work

tasks?

-- training of personnel?

-- participation of users at

all levels in developing

and implementing changes

to processes?

-- timely assistance when

environmental changes

require adjustments to

processes?

Page 34 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Data stewardship Yes/no

NA

Explanation

41. Has the agency considered

the following factors in

managing financial

management system data:

-- data storage medium

used?

-- degree of data

distribution?

-- security requirements?

42. Are agency financial

management system data that

are considered to be federal

government records managed

in accordance with

procedures pursuant to the

Federal Records Act?

43. Are agency data maintained

at distributed locations

controlled to ensure

consistency with data

maintained in other parts of

the system?

Page 35 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

 1. Does the agency use

consistent definitions for data

classification throughout the

financial event collection and

reporting processes?

 2. Are data element names,

definitions, formats, domains,

uses, and attributes specified

when establishing data

requirements used by the

agency's financial

management systems?

 3. Has the agency incorporated

OMB and Treasury

information requirements into

its financial management

systems?

 4. Does the agency's event level

architecture provide for the

proper classification of data

at the point of original entry

to support all the elements of

the reporting level

architecture?

Page 36 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

 5. Does the agency's event level

architecture

-- provide for appropriate

transaction identification

and control?

-- eliminate the need for

redundant data collection

processes for multiple

reporting level

architecture

requirements?

-- support the collection of

complete transaction data

when a financial event

occurs?

 6. Do the agency's transaction

data about an individual

financial event include

-- transaction control data

for tracking the event?

-- financial data for

classifying the type of

financial activity?

-- program activity data for

capturing related

nonfinancial

characteristics?

Page 37 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

 7. Does the agency's reporting

provide information of value

to users in terms of

-- scope?

-- level of detail?

-- timing?

-- content?

-- presentation format?

Page 38 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

 8. Does the agency's reporting

level architecture summarize

transaction data and provide

the financial, operations, and

program information

necessary for internal and

external reporting?

(Examples of financial

information, which includes

budget information, are funds

appropriated, obligations, tax

revenue received, and

resources invested in real

property. Examples of

operations information are

full-time equivalent (FTE)

information, aging of

accounts receivables, prompt

pay statistics, and timely

payment of travel

reimbursement. Examples of

program information are

types of beneficiaries, loans

issued, and property

purchased.)

 9. Does the reporting

component of the agency's

reporting level architecture

provide users access to

understandable information

about what the government is

doing and how well it is

doing it?

Page 39 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

10. Does the agency's financial

reporting provide information

on the financial condition of

the federal government at

either a point in time or over

a period of time?

11. Does the agency's

performance reporting

answer the question; How

effective and efficient are

operations and programs?

(Performance reporting may

use data from sources other

than the financial

management systems (e.g.,

economic indicators, crime

rates) to measure how well a

program is doing.)

12. Is the agency's information

architecture supported by a 

series of structures that

organize the data contained

in the event level architecture

and the reporting level

architecture so that

meaningful and useful

information can be obtained

(see illustration V-3 on page

40 of the source document)?

Page 40 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

13. Do the agency's financial and

related information

classification structures

collect information on

-- the financial status of

government operations

and the use of financial

resources (financial

information)?

-- the efficiency of

operations (operations

information)?

-- the effectiveness of

delivery (program

information)?

-- individual financial events

(transaction)? 

(Collectively, this information

is used to support financial

and performance reporting

requirements.)

14. Does the agency's reporting

structure provide the

necessary access to

information captured by the

financial management

systems using the financial

and related information

classification structures?

Page 41 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

15. Does the agency have

standardized and consistently

defined data elements in the

transaction classification

structure which are linked by

appropriate encoding

relationships with the

summary information

classification structure to

provide the bridge between

the event level data

requirements and the

summary level information

requirements?

16. Does the agency's summary

information classification

structure which supports the

summary level information

requirements, assemble the

data into meaningful

categories that can be made

accessible for a variety of

reporting purposes?

Page 42 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

17. Do the agency transaction

classification structure of the

event level architecture and

the summary information

classification structure and

reporting structure of the

reporting level architecture

work together to provide the

necessary description of

financial events to ensure the

integrity of financial and

related information collected

and reported?

18. Are the data elements to

properly track and classify a

financial event contained in

the agency's transaction

classification structure and

are they categorized as

financial, program activity, or

transaction control data?

Page 43 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

19. Does the agency's transaction

classification structure track

individual transactions and

relate them to financial

events? (The elements of

financial data (e.g., fund,

object class, dollar amount)

and program activity data

(e.g., activity type, program

unit) within the transaction

classification structure

provide the minimum data

needed to derive the full

classification for financial,

operations, and program

information.)

20. Does the transaction control

data within the agency's

transaction classification

structure provide the audit

trail for financial events and

may it also be used to assess

performance? (Transaction

control data include such

elements as transaction

source, document/reference

number, transaction ID or

control number, transaction

type, effective date, and

posting date.) 

Page 44 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

21. Does the agency's summary

information classification

structure consist of three

separate but related

classification structures, i.e.,

financial, operations, and

program information

classification structures?

(These three classification

structures are used to

categorize summary level

financial, operations, and

program information

necessary for users to

understand the financial

implications of decisions

made and to track

performance of operations

and programs.)

22. Does the agency's financial

information classification

structure provide for

collecting budget and

financial information for

-- reporting?

-- ensuring financial

accountability?

-- linking budget formulation

and budget execution?

Page 45 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

23. Does the agency's financial

information classification

structure contain the

-- organization unit?

-- funding identification?

-- accounting categorization?

-- program?

-- cash tracking?

-- special descriptors?

-- accumulators?

24. Is the organization unit the

level at which financial

information is consolidated

and reported within the

agency or externally to

central agencies? (An

organization unit may also

represent a level at which

financial information is

further consolidated by

central agencies after it is

reported by program

agencies.)

25. Is the agency's funding

identification used to control

the formulation and

execution of the budget?

(These elements are usually

assigned during the budget

formulation process.)

Page 46 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

26. Are accounting categorization

elements used to track the

agency's assets, liabilities,

equity, and the sources and

uses of funds?

27. Does the agency use program

elements to support the

aggregation of financial

information related to

specific activities or

purposes?

28. Does the agency use cash

tracking elements to control

the cash flow processes

associated with payments

and deposits at Treasury or

other authorized depository

arrangements?

29. Does the agency use special

descriptors (additional

descriptive elements at a

level below those required

for controlling or tracking

funds) to further aggregate

and describe data streams?

Page 47 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

30. Does the agency use financial

accumulators (i.e., financial

amounts and related

information (e.g., units or

labor hours) aggregated from

financial events reflecting

time periods (e.g., daily,

monthly, prior year or

current year), anticipated

activity (e.g., budgets or

obligations), or analytic

scenarios (e.g., percentage

reduction in spending or

changing inflation factor)?

Page 48 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

31. Does the agency's operations

information structure capture

the following types of

information:

-- operations unit, that is the

identification of an

operation to be

monitored?

-- activity type, that

identifies the activity to

be measured within an

operations unit to

accurately diagnose

problem areas or areas

needing improvements in

efficiency?

-- efficiency measures, that

reflect the volume,

frequency, or timing

associated with an activity

type?

-- standards, that set the

targets for performance

measurement?

-- accumulators

(operations), that track

event occurrences

according to the

efficiency measures

reflecting time periods

(e.g., daily, monthly, prior

year, or current year) to

support trend analysis? 

Page 49 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

32. Do the data elements for the

agency's program information

classification include

-- the nonfinancial data

necessary to support the

Government Performance

and Results Act of 1993?

-- the program unit, that is

the program level where

the activity is to be

measured?

 -- effectiveness measures,

that reflect resources

applied and the outputs

and outcomes achieved by

a program unit?

 -- goals and objectives, that

describe management's

projected outputs,

outcomes, and results?

 -- program accumulators 

that enable quantifiable

measures used to

determine the

effectiveness of program

activities?

Page 50 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

33. Does the agency's reporting

structure support

requirements for reporting

and providing information on

-- the financial status of

government operations

and the use of financial

resources (financial

reporting)?

-- the effectiveness and

efficiency of delivery

(performance reporting)?

34. Does the agency's reporting

structure facilitate analysis of

financial, operations, and

program information by

identifying and reporting

variances between actual

results and plans?

Page 51 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Management information Yes/no

NA

Explanation

35. Does the agency's reporting

structure allow for the

incorporation of data from

sources other than the

financial management

systems and report

information consistently and

at the appropriate levels of

detail for users throughout

the government who need to

understand the financial

implications of program

activity?

36. Does the agency's reporting

structure support reporting

requirements of the CFO Act

of 1990, the Government

Performance and Results Act

of 1993, the Government

Management Reform Act of

1994, and related

implementing guidance?

 

Page 52 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

 1. Do agency systems retain the

transaction level detail

needed to support central

financial information?

 2. Does the agency receive

information from the central

financial information systems

on the status of funds and

differences between the

central financial information

systems and the agency's

financial management

systems?

 3. Is the agency's financial

management system linked

electronically to the central

cash processing systems?

 4. Is the agency's financial

management information

reconciled periodically with

the central financial

information?

Page 53 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

 5. Do the agency's financial

management systems track

financial events and

summarize information to

-- support the mission of the

agency?

-- provide for adequate

management reporting?

-- support agency level

policy decisions necessary

to carry out fiduciary

responsibilities?

-- support the preparation of

auditable financial

statements?

 6. Do the agency's financial

management systems fall into

these four categories?

-- Core financial systems

-- Other financial and mixed

systems

-- Shared systems

-- Departmental executive

information systems

 7. Are the agency systems

linked together electronically

to be effective and efficient?

Page 54 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

 8. Does the agency provide

summary data from its

systems to central systems to

permit summaries of

management information and

agency financial performance

information on a

governmentwide basis?

 9. Is the agency's systems

architecture consistent with

governmentwide standards

and requirements?

Page 55 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

10. Does the agency systems

architecture have the

following components of a

single, integrated financial

management system:

-- Core financial system?

-- Personnel/payroll system?

-- Travel system?

-- Seized/forfeited asset

system?

-- Direct loan system?

-- Guaranteed loan system?

-- Benefit payment system?

-- Insurance claim system?

-- Grant system?

-- Inventory system?

-- Property management

system?

-- Acquisition system?

-- Revenue system?

-- Budget formulation

system?

-- Managerial cost

accounting system?

-- Financial reporting

system?

-- Departmental executive

information system?

(Some types are not

applicable to all agencies

because their missions and

programs do not require that

type of support.)

Page 56 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

11. Has the agency identified

how its financial management

systems support the financial

event processing and

program delivery/mechanisms

to form the single integrated

financial management

system, as demonstrated by

examples in illustration VI-3

on page 55 of the source

document?

12. Do the agency's financial

management systems have

the following characteristics

necessary for integration:

-- Common data elements?

-- Common transaction

processing?

-- Consistent internal

controls?

-- Efficient transaction

entry? 

Page 57 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

13. Does the agency use standard

data classifications

(definitions and formats)

established and used for

recording financial events

and common data elements

to meet reporting

requirements and, to the

extent possible, used

throughout the agency for the

collection, storage, and

retrieval of financial

information?

14. Has the agency incorporated

governmentwide information

standards (such as the U.S.

Government Standard

General Ledger) and other

external reporting

requirements into its

standard data classification

requirements?

15. Does the agency use common

processes for processing

similar kinds of transactions

throughout the system to

enable these transactions to

be reported in a consistent

manner?

Page 58 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

16. Are the agency's internal

controls over data entry,

transaction processing, and

reporting applied consistently

throughout the system to

ensure the validity of

information and protection of

federal government

resources?

17. Do the agency's financial

system designs eliminate

unnecessary duplication of

transaction entry? (Wherever

appropriate, data needed by

the system to support the

financial function shall be

entered only once. Other

parts of the system shall be

updated through electronic

means consistent with the

timing requirements of

normal business/transaction

cycles.)

18. Is the user able to have one

view into the agency's

systems so that at whatever

level the individual is using

the system, he or she can get

to the information needed

efficiently and effectively

through electronic means? 

Page 59 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Systems architecture Yes/no

NA

Explanation

19. Are easy reconciliations

between agency systems

where interface linkages are

appropriate maintained to

ensure the accuracy of the

data?

20. Does the physical design of

the agency's system consider

-- the agency's

organizational philosophy?

-- the technical capabilities

available?

-- the most appropriate

manner to achieve the

necessary single,

integrated financial

management system for

the agency?

Page 60 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

 1. Do the agency's financial

management systems

-- contain a sufficient

number of appropriate,

cost-effective controls to

safeguard assets?

-- ensure accurate

aggregation and reporting

of information?

-- support the

accomplishment of

organizational objectives?

 2. Are the agency's controls

-- built into systems design?

-- periodically checked for

effectiveness and

relevancy?

 3. Does the agency balance

safeguards necessary to

ensure the integrity of

operations and data with the

need to make accessible,

timely, and accurate data

available to managers and

others needing financial

information?

Page 61 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

 4. Do the agency's internal

control procedures support

its ability to prepare financial

statements that are fairly

presented in conformity with

generally accepted or other

relevant and appropriate

accounting principles and

regulatory requirements? 

 5. Are all five interrelated

components of internal

control (control environment,

risk assessment, control

activities, information and

communication, and

monitoring) present and

functioning effectively for the

agency to conclude that

internal control is effective?

 6. Does the agency use risk

assessment to identify and

analyze risks relevant to the

achievement of the entity's

objectives? (Risk assessment

forms a basis for determining

how the risks should be

managed.)

Page 62 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

 7. Does the agency determine

how much risk is to be

prudently accepted and strive

to maintain risk within these

levels?

 8. Does the agency use

objective setting as a

precondition to risk

assessment?

 9. Are the types of controls

built into the agency's

systems commensurate with

-- the significance of risks?

-- the likelihood or

frequency of risks

occurring?

-- management's assessment

of what actions need to

be taken to manage risks?

Page 63 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

10. Is the agency's choice of

internal controls based on a

number of risk factors

including, but not limited to,

the

-- inherent nature of the

information?

-- possible consequences of

incorrect information?

-- needed degree of

reliability of the

information?

-- cost-effectiveness of using

a particular control and

the relative effectiveness

and efficiency of

alternative controls?

-- vulnerability of assets to

loss or misuse?

11. Are control activities (the

policies and procedures that

help ensure that management

directives are carried out)

used to help ensure that

necessary actions are taken

to address risks to achieve

the agency's objectives?

Page 64 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

12. Does the agency use control

activities throughout the

organization, at all levels, and

in all functions?

13. Does the agency use the

following two broad

groupings of information

systems control activities:

-- general controls, which

apply to all financial

management systems and

help ensure their

continued, proper

operation?

-- application controls,

which include

computerized capabilities

within the application

software and related

manual procedures to

control the processing of

various types of

transactions?

Page 65 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

14. Do the agency's general

controls include controls

over

-- data center operations?

-- system software

acquisition and

maintenance?

-- access security?

-- application system

development and

maintenance?

(These controls apply to all

systems--mainframe, client/

server, and end-user

computing environments.)

15. Do the agency's data center

operations controls include

-- job setup and scheduling?

-- operator actions?

-- backup and recovery

procedures?

-- contingency or disaster

recovery planning?

Page 66 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

16. Do the agency's system

software controls include

effective controls over

-- acquisition?

-- implementation and

maintenance of system

software--the operating

system?

-- database management

systems?

-- telecommunications

software?

-- security software?

-- utilities that run the

system and allow

applications to function?

Page 67 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

17. Do the agency's access

security controls protect the

system, including

-- prevention of

unauthorized access to

data, whether by entity

employees or others?

-- physical protection of

assets (including building,

rooms, machines,

magnetic media) from all

unauthorized persons?

-- recording and review of

all attempts at

unauthorized access?

-- prevention of disclosure

of critical data during

communications?

18. Do the agency's application

system development and

maintenance controls provide

the control structure for

developing systems and

appropriate control over

changes to systems?

Page 68 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

19. Do the agency's application

controls manage application

processing and help to

ensure the completeness and

accuracy of transaction

processing, authorization, and

validity?

20. Do the agency's authorization

controls provide reasonable

assurance that (a)

transactions, (b) events from

which they arise, and (c)

procedures under which they

are processed are authorized

in accordance with laws,

regulations, and management

policy?

21. Do the agency's approval

controls provide reasonable

assurance that appropriate

individuals approve recorded

transactions in accordance

with management's general

or specific criteria?

Page 69 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

22. Do the agency's segregation

of duties controls effectively

reduce the opportunity for

someone to perpetrate or

conceal errors or

irregularities in the normal

course of duties?

23. Do the agency's controls over

the design and use of

documents and records

provide reasonable assurance

that transactions and events

are properly documented,

recorded, and auditable?

24. Does the agency have

adequate safeguards over

access to and use of assets

and records to protect them

against physical harm, theft,

loss, misuse, or unauthorized

alteration?

25. Does the agency use

independent check controls--

including statistical sampling

and post-event management

reviews--to provide

independent assurance of the

validity, accuracy, and

completeness of processed

data?

Page 70 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

26. Do the agency's

computerized edit checks

consist of format, existence,

reasonableness, and other

checks on the data which are

built into each application

during its development?

27. Is pertinent information

identified, captured and

communicated in a form and

time frame that enables

agency staff to carry out their

responsibilities?

28. Do the agency's information

systems produce reports

containing operational,

financial, and compliance

related information that

makes it possible to run and

control the entity?

Page 71 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

29. Does the agency ensure

quality of information with

controls over

-- recognition and

measurement of recorded

amounts?

-- summarization of

accounting and budgetary

data?

-- rights and obligations of

the entity?

-- presentation and

disclosure of information?

30. Are the agency's internal

control systems monitored to

assess the quality of their

performance over time?

31. Is the agency's system quality

assessment accomplished

through ongoing monitoring

activities, separate

evaluations, or a combination

of the two?

32. Are the agency's chief

financial officer and its other

accounting officers central to

the way management

exercises control?

Page 72 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

33. Is it clear that all personnel

are responsible for

communicating upward the

agency's operating problems

and noncompliance with laws

and regulations? 

34. Are the inspector general and

external auditors contributing

to the achievement of the

agency's objectives and

playing an important role in

helping management evaluate

the effectiveness of control

structures?

35. Do the agency's internal

controls balance the risk

assessment of the benefits of

controls against their costs in

determining the scope and

depth of controls needed to

ensure the integrity of data

used in decision-making and

in deterring fraud, waste, and

abuse?

Page 73 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Internal control Yes/no

NA

Explanation

36. Do the internal controls

provide reasonable assurance

that the agency is making

progress toward achieving its

objectives, recognizing that

(a) controls can be

circumvented by collusion or

management overrides of the

system and (b) to the extent

that losses may occur,

effective financial reporting

controls exist to properly

reflect the loss information in

the financial statements,

thereby alerting users to

consider the need for action?

Page 74 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

 1. Are the agency's financial

management system plans

consistent with its strategic

plan for the organization and

does the strategic plan have

top-level support and

commitment?

 2. Is strategic information

management a part of the

agency's strategic planning

efforts? (A good reference in

addressing strategic

information management is

the Executive Guide:

Improving Mission

Performance Through

Strategic Information

Management and Technology

issued by the General

Accounting Office (May

1994).)

Page 75 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

 3. Does the agency's financial

management system planning

support the overall strategic

direction of the organization's

financial management

activities and is it consistent

in approach and timing with

the plans for information

resource management and

technology?

 4. Do the agency's financial

management system planning

efforts consider the

-- possibilities and

implications of improved

communications across

organizational

boundaries?

-- sharing of information

between operating units

and systems?

-- ability to streamline

processes throughout an

organization?

Page 76 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

 5. Are standard planning and

control approaches, such as

life cycle methodologies and

screen design standards

-- adopted for design,

development,

implementation, and

operation of the agency's

financial management

systems?

-- consistent across all

agency financial

applications and in 

agreement with its

technical architecture and

overall system

development approach?

 6. Does the agency's planning

process consider data

contained in and processes

supported by existing

systems? (Improvement plans

must account for these

existing systems by

incorporating their

processing requirements and

replacing them or interfacing

their data with newer

applications.)

Page 77 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

 7. Does the agency have

long-range system planning

that defines and prioritizes

projects, identifies resources

needed (time, staff,

technology, skill, funding,

etc.), and schedules projects

to balance resource

requirements and functional

needs?

Has the agency followed the minimum steps (outlined in questions 8 through 15)

needed for the successful planning of financial management systems projects?

 8. For its financial management

activity, has the agency (a)

developed overall objectives 

that are consistent with the

program and policy needs of

the agency and (b) defined

the supporting systems

needed?

 9. Has the agency assessed

existing financial

management systems and

obtained input from users

about needed improvements?

Page 78 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

10. Has the agency determined

how financial management

systems are to (a) share data

and processing with other

information systems and (b)

be supported by the

information technology

infrastructure? (This step

may include comparing

(benchmarking) operations

both within and outside of

the government.)

11. Has the agency established

clear roles and

responsibilities for all the

parties necessary to

accomplish the overall

objectives of ensuring that

(a) senior executives support

desired efforts, (b) project

managers are given clear

responsibilities, (c) project

scopes are understood, and

(d) issue resolution processes

are in place to resolve

conflicts (policy, procedural,

resource, or organizational)?

Page 79 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

12. Has the agency identified

projects that can meet

specified objectives and

achieve the envisioned target

system environment?

13. Has the agency set priorities

and selected projects from

alternatives? (This should

involve getting direct input

from top-level management,

decisionmakers in the

organization (including the

CFO, chief information

officer, and program

managers) and other

stakeholders.)

14. Has the agency determined

resources needed to

complete the selected

projects?

15. Has the agency developed a

project schedule and budgets,

including milestones and

deadlines?

Page 80 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

16. Does the agency, as part of

carrying out its project plan,

periodically report on

progress to both senior

management and the project

team so that everyone is

informed, issues are managed

as they arise, and desired

outcomes are achieved?

17. Are agency planners and

developers applying

architectural design,

synthesis, and coordination

to achieve the goal of

systems that will work

together?

18. Have agency planners and

developers developed a

top-down overview of the

processes and the data to be

used?

19. Are the data employed by

separately developed agency

systems compatible and

derived from the same

overall data model?

Page 81 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

20. Has the agency coordinated

the perspectives and views of

teams and team members

within individual projects,

between the various stages of

a development path (vertical

integration), and among

multiple projects occurring in

parallel (horizontal

integration)?

21. Has the agency followed

relevant federal government,

commercial, or other

approved standards for

individual financial

management systems, as

applicable?

22. Does the agency use

standardized internal

interfaces between modules,

programs, and subsystems?

23. Has the agency considered

distributed computing,

client/server, and cooperative

processing methods that take

advantage of new complex

computing capabilities now

available to support systems?

Page 82 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

24. Does the agency perform

transaction edits close to the

points of entry to facilitate

research and corrections?

25. Does the agency validate all

components of the data

classification structure when

transactions are entered into

the financial management

system?

26. Does the agency use common

tables for account, program,

vendor, and other codes that

are accessed by all

applications of the integrated

financial management system

and related systems?

Page 83 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

27. Has the agency considered

the more complicated tasks

of

-- managing

telecommunications?

-- maintaining version

control over software and

hardware?

-- ensuring data integrity

and consistency

throughout the system?

-- providing effective user

training and

documentation when

moving from large,

monolithic centralized

systems to systems made

up of many small

components spread across

a network?

28. For its diverse hardware and

software, has the agency

formed a seamless,

integrated solution that meets

a variety of needs by

integrating networks with

standardized interfaces?

Page 84 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

29. Has the agency considered

information accessibility and

computer accommodation for

the disabled?

30. Does the agency's

developmental approach

support the overall vision for

the target financial

management systems

environment, and is it

consistent with applicable

standards?

31. Can an incremental

development approach

provide benefits to system

customers relatively quickly

while moving toward longer

term objectives?

32. Can new system capabilities

be tested on a pilot basis to

assure workability and

acceptance before

committing an organization's

resources to an inadequate or

inappropriate solution?

Page 85 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

33. Is the agency using business

process reengineering (BPR)

as an effective way to

identify and accomplish

needed changes that may be

significant in nature?

34. Has the agency addressed the

issue of managing change

when financial systems

development projects are

undertaken?

Page 86 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

35. Has the agency considered

the following alternative

strategies for development

approaches:

-- upgrading or refurbishing

existing systems?

-- implementing off-the-shelf

packaged software with

or without modifications?

-- entering into a crossservicing or support

arrangement with another

federal organization?

-- contracting out system

functions?

-- custom developing a new

system or other

possibilities identified

during the planning

process?

36. Has the agency prepared an

analysis of alternatives based

on objective criteria and

identified pros and cons?

Page 87 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

37. Has the agency determined

the most advantageous

approach based on

comparing costs, benefits,

and risks associated with all

feasible alternatives?

38. Is the agency's plan for the

custom development of

systems applications used as

a last resort and only after

consideration of all

appropriate software options?

39. Has the agency considered

using Computer-Aided

Software Engineering (CASE)

tools to improve control over

the design and development

process, and/or Rapid

Application Development

techniques such as

prototyping to improve user

acceptance where custom

development is required?

Page 88 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

40. Has the agency's system

security been established and

maintained following the

computer security policies

set forth in appendix III to

OMB Circular A-130, Security

of Federal Automated

Information Systems?

41. Does the agency's computer

security program include

-- assignment of

responsibility for security?

-- environment security

plans?

-- review of security

controls?

-- training?

-- personnel screening?

-- incident response

capability?

Page 89 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

42. Is the agency's user training

program flexible enough to

meet various levels of user

needs (such as senior

management,

mid-management, and

financial personnel), based

on their roles and

responsibilities within the

organization?

43. Does the agency's training

program address these three

groups of individuals:

-- systems personnel

(computer specialists and

analysts)?

-- operations personnel

(computer operators)?

-- users (financial

management and program

personnel)?

Page 90 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

44. Does the agency's training

program for systems

personnel address the

technical environment

(hardware and software)

used to develop the financial

management system, as well

as the policies and

procedures for maintaining

the system (fixes and

enhancements)?

45. Does agency's training

program for operations

personnel address the actual

operation of the computer(s)

supporting the financial

management system, with

specific attention directed

toward how to operate the

computer and what to do if

certain problem situations,

such as power or system

failures, occur?

46. Does agency's training for

user personnel address the

users entering the data

(input) and the users who are

using the data presented in

management reports (output)

for decision-making?

Page 91 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

47. Has the agency considered

training selected individuals

to serve as a core cadre of

trainers and then having the

core trainers train others in

their organizational units?

48. Do agency trainers possess a

thorough working knowledge

of the system (hardware,

software, required inputs, and

outputs) and the policies and

procedures in place related

to the system?

49. Do the agency trainers

understand not only the

financial management

system, but also the general

operation of computers

(mainframe and personal

computers)?

50. Are the agency trainers

skilled communicators,

capable of keeping the

audience attentive, while

clearly providing the

necessary level of

instruction?

Page 92 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

51. Do the agency trainers

recognize what levels of

detail are appropriate,

depending on the skills of the

students?

52. In developing and

implementing training

programs, has the agency

considered using electronic

media and other technology

to facilitate training for

individuals in the most

effective and efficient

manner?

53. Does the agency use and

review on a regular basis

carefully developed

evaluations that allow the

students to clearly identify

strengths and deficiencies in

the training program,

including the effectiveness of

the trainer?

54. Is the agency's

documentation geared to the

levels of the end users and

their roles and

responsibilities within the

organization?

Page 93 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

55. Is the agency's

documentation user friendly

and kept up-to-date, and does

it include all of the

information needed to

operate the software

effectively within the agency

environment?

56. Does the agency have, as a

minimum, the following types

of financial management

systems documentation:

-- systems documentation?

-- operations 

documentation?

-- user documentation?

57. Does the agency test the

deliverables of a financial

system project to ensure the

integrity of the system?

Page 94 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

58. Does the agency's testing

process involve

-- software?

-- training materials?

-- documentation?

-- changes to edit tables?

-- inter- and intra-system

module interfaces?

-- screens?

-- reports?

-- operating procedures?

-- equipment?

59. Is the agency project leader

ensuring that testing is

performed and that the most

appropriate testing program

is applied to the situation?

60. Is the agency conducting

system testing at various

stages of the implementation

process, and is it adequate to

ensure that the systems will

meet agreed-to user needs?

Page 95 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

61. Does the agency testing

verify the following:

Software Functional

Capabilities

-- screens and reports are

working?

-- software executes as

required?

-- documentation and

training materials reflect

the software capabilities?

User Acceptance

-- software functions meet

user requirements?

-- automated processes

support desired work

processes?

System Acceptance

-- system works with

expected volumes?

-- system interfaces work

properly?

-- automated conversion

processes convert data

properly?

-- software works in the

production environment?

Page 96 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

62. Has the agency established

appropriate approval criteria

for each type of testing since

quality testing and review are

critical to financial systems

implementation success?

63. Has the agency taken

appropriate precautions to

ensure that test and

production environments are

separated?

64. Is the agency using the

following three elements in

transitioning to a new

financial management system:

-- using change management

to assist in organizational

adjustments necessary to

take proper advantage of

a new system?

-- installing new software

and procedures to support

the new way work will be

performed?

-- eliminating the old

systems, including

software, procedures, and

policies?

Page 97 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

65. Is the agency taking

advantage of opportunities to

streamline processes,

produce more meaningful

and accurate information,

and automate tasks, thereby

allowing better analysis and

decision-making and

improving service delivery?

66. Does the agency's

management recognize that

risks need to be assumed if

benefits are to be achieved

and is it aware of the risk of

continuing with the "status

quo"?

67. Have the agency's managers,

employees, and others been

prepared to use the newly

implemented system?

68. Has the agency considered

whether the preparation of

physical sites is required?

69. Has the agency converted

data from its old systems or 

created new data if required?

Page 98 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

70. Has the agency sought the

opinions of all participants in

the process (a) before

finalizing a new system and

(b) on implementation?

71. Has the agency provided for

training and documentation

updates throughout the life of

the system?

72. Has the agency considered

the three primary techniques

for transitioning to a new

system: 

-- Incremental

implementation beginning

with a pilot(s) and

phasing in operations by

organization or function?

-- Stopping the operations of

the old system and

starting the new system at

once?

-- Running the new and 

existing systems in

parallel?

Page 99 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

73. Does the agency's choice of 

transitioning method consider

the benefits and risks of each

method, resources available

for implementation, and

impact on the organization

affected by the change?

74. Is the agency fully using the

capabilities of the new

system and processes, and

has it discontinued the

operation of the old system?

75. Is the agency's team of

trained computer and

financial systems analysts

involved in the development

of the system providing

post-implementation support?

76. Is the agency's postimplementation team,

separate from the help desk

role, assessing the

implementation of the system

and making improvement

recommendations to project

managers?

Page 100 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

77. Is the post-implementation

team considering and

providing feedback to the

systems developers and

analysts on adjustments

suggested by the users?

78. Are all parties associated

with the maintenance and

operations of the agency's

financial management

systems ensuring that design

concepts are sustained

throughout the life cycle of

systems and that the systems

operate to meet the changing

needs of the users?

Page 101 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

79. Are agency support personnel

available to

-- maintain user

documentation?

-- adjust security privileges?

-- reconcile interfacing

system feeds?

-- maintain systems tables?

-- conduct ongoing user

training in system

operations?

-- assist in the testing of

changes to the systems?

-- enable year-end and

special operations

activities?

80. Are the individuals

responsible for monitoring

and managing the production

and operations of the

agency's financial systems

ensuring that any system

problems are fully

understood and that control

breeches are corrected

promptly?

Page 102 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

81. Are the initial standardized

reports following

implementation of the agency

financial system sufficient to

meet management needs? 

82. Does the agency constantly

review its financial systems

to determine adjustments

necessary to meet the needs

of the organizational and

functional environments?

83. Are the agency's change

requests adequately

coordinated and analyzed to

ensure consistency with

agency policy, user

requirements, and

implementation schedules?

84. Does the agency's approval

process reflect its

appropriate priorities?

85. Does the agency's change

control process include a

mechanism for setting

priorities?

Page 103 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

86. Does the agency have the

ability to track and control

these priotorized changes?

87. Is the agency ensuring that

changes are made in an

orderly manner and that

modification schedules are

met?

88. Do the agency's change

control procedures clearly

define, for all parties, the

nature of the changes

required and ensure

-- adequate documentation

of the specific changes

and problems?

-- appropriate approvals?

-- timely resolution of

change requests?

Page 104 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

89. Have changes to the

following been coordinated

with the agency's financial

systems manager:

-- the operating system?

-- database software?

-- telecommunication

services?

-- hardware platforms?

-- applications software?

90. Does the agency have a

structured methodology for

managing the configuration

of software, hardware, data,

telecommunications, and

procedures?

91. Does the agency track,

control, and coordinate

software versions used by

multiple organizations

("common version control

over software" as used in

OMB Circular A-127)?

Page 105 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)
 

Framework for Federal Financial Management Systems

Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

92. Are agency changes to

software identified and

grouped into identifiable

software releases and

sub-releases under version

control?

93. Does the agency's version

control also coordinate

changes to other components

of the system?

(922250)

Page 106 GAO/AIMD-98-21.2.1 - Framework System Checklist (5/98)


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