a

GAO

United States Government Accountability Office

Exposure Draft

July 2004 CORE FINANCIAL 

SYSTEM 

REQUIREMENTS

Checklist for 

Reviewing Systems 

under the Federal 

Financial Management 

Improvement Act

GAO-04-763G
______________________________________________________________________________ 

PREFACE 

______________________________________________________________________________ 

July 2004 

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

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

substantially comply with federal financial management system requirements. These 

requirements are detailed in the Federal Financial Management System Requirements 

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

the guidance issued by the Office of Management and Budget (OMB): Circular A-127, 

Financial Management Systems, and the January 4, 2001, Revised Implementation 

Guidance for the Federal Financial Management Improvement Act (FFMIA) of 1996. 

JFMIP intends for the requirements to promote understanding of key financial 

management systems concepts and requirements, to provide a framework for 

establishing integrated financial management systems to support program and financial 

managers, and to describe specific requirements of financial management systems. 

We are issuing this checklist, which reflects JFMIP’s revised Core Financial System 

Requirements (JFMIP-SR-02-01, November 2001), to assist (1) financial systems analysts, 

systems accountants, systems developers, program managers, and others who design, 

develop, implement, operate, or maintain financial management systems and 

(2) management and auditors in reviewing agency core systems to determine if the 

systems substantially comply with FFMIA. 

There is no requirement that this checklist be used in assessing core financial systems. 

Rather, it is provided as a tool for use by experienced staff and is one in a series of 

documents we have issued to assist agencies in improving or maintaining effective 

operations. (See the last page of this document for a list of related products.) This 

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

documents should be used concurrently. Those using this tool must apply experienced 

judgment in its interpretation and application. They must consider the impact of the 

completed checklist on an entire core system and whether the system, as a whole, 

substantially complies with requirements. 

This checklist exposure draft is available on the GAO Web site (http://www.gao.gov) 

under “Reports and Testimony,” browsing by the topic “Financial Management.” JFMIP’s 

source document can be downloaded from the JFMIP Web site (http://www.jfmip.gov)

under “JFMIP Documents” and the subheading “System Requirements.” 

Please send comments on this exposure draft by August 31, 2004, to McCoy Williams, 

Director, Financial Management and Assurance, U.S. Government Accountability Office, 

441 G Street, N.W., Room 5089, Washington, D.C. 20548. 

Jeffrey C. Steinhoff 

Managing Director 

Financial Management and Assurance 
(BLANK)
______________________________________________________________________________ 

CONTENTS 

______________________________________________________________________________ 

Page 3 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Page

Preface............................................................................................................................ 1

Overview ........................................................................................................................ 6

Authoritative Guidance........................................................................................ 7

How to Use This Checklist .................................................................................. 8

Core Financial System Requirements ...................................................................... 10 

Functional Requirements ....................................................................................... 13

Core Financial System Management Function............................................... 13

Accounting Classification Management Process ................................... 13

Transaction Control Process .................................................................... 19

General Ledger Management Function ........................................................... 28

General Ledger Account Definition Process .......................................... 28

Accruals, Closing, and Consolidation Process ....................................... 30

General Ledger Analysis and Reconciliation Process ........................... 32

Funds Management Function ........................................................................... 33

Budget Preparation Process ..................................................................... 33

Budget Formulation Process .................................................................... 35

Funds Allocation Process.......................................................................... 37

Budget Execution Process........................................................................ 40

Funds Control Process .............................................................................. 42

Payment Management Function....................................................................... 55

Payee Information Maintenance Process................................................ 55

Payment Warehousing Process ................................................................ 59

Payment Execution Process ..................................................................... 66

Payment Confirmation and Follow-up Process...................................... 76

Receivable Management Function ................................................................... 80

Customer Information Maintenance Process......................................... 80

Receivable Establishment Process .......................................................... 82

Debt Management Process........................................................................ 85

Collection Process ..................................................................................... 91

Cost Management Function .............................................................................. 94

Cost Setup and Accumulation Process.................................................... 94

Cost Recognition Process ......................................................................... 96

Cost Distribution Process ......................................................................... 98

Working Capital and Revolving Fund Process ....................................... 99
______________________________________________________________________________ 

CONTENTS 

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Page 4 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Page

Reporting Function .......................................................................................... 101

General Reporting Process ..................................................................... 101

External Reporting................................................................................... 102

Internal Reporting .................................................................................... 104

Ad Hoc Query............................................................................................ 110

Technical Requirements....................................................................................... 112

General Design/Architecture........................................................................... 112

Infrastructure .................................................................................................... 116

User Interfaces.................................................................................................. 118

Interoperability ................................................................................................. 121

Workflow/Messaging........................................................................................ 124

Document Management................................................................................... 126

Internet Access ................................................................................................. 127

Security .............................................................................................................. 128

Operations and Computing Performance...................................................... 130

Related GAO Products ............................................................................................. 134

Figure 1: Agency Systems Architecture ..................................................................... 6 
______________________________________________________________________________ 

ABBREVIATIONS 

______________________________________________________________________________ 

Page 5 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

ACH Automated Clearing House 

ALC agency location code 

API application program interface 

CCD Cash Concentration or Disbursement 

CCD+ Cash Concentration or Disbursement Plus Addendum 

CCR Central Contractor Registration 

C.F.R. Code of Federal Regulations

COTR Contract Officer’s Technical Representative 

COTS commercial-off-the-shelf 

CTX Corporate Trade Exchange 

DUNS Data Universal Numbering System 

ECS Electronic Certification System 

EFT Electronic Funds Transfer 

FACTS Federal Agencies Centralized Trial Balance System 

FASAB Federal Accounting Standards Advisory Board 

FFMIA Federal Financial Management Improvement Act of 1996 

FMS Financial Management Service 

IPAC Intra-governmental Payment and Collection System 

IRS Internal Revenue Service 

IT information technology 

JFMIP Joint Financial Management Improvement Program 

NIST National Institute of Standards and Technology

OMB Office of Management and Budget 

PPD Prearranged Payment and Deposit 

PPD+ Prearranged Payment and Deposit Plus Addendum 

RTN routing transit number 

SGL U.S. Government Standard General Ledger

SFFAS Statements of Federal Financial Accounting Standards 

TAS treasury account symbol 

TAFS treasury account fund symbol 

TFM Treasury Financial Manual

TIN taxpayer identification number 

U.S.C. United States Code 

XML Extensible Markup Language
______________________________________________________________________________ 

OVERVIEW 

______________________________________________________________________________ 

Page 6 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

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

among other things, that agencies implement and maintain financial management 

systems that substantially comply with federal financial management system 

requirements. These requirements are detailed in the Federal Financial 

Management System Requirements series issued by the Joint Financial 

Management Improvement Program (JFMIP)1 and in Circular A-127, Financial 

Management Systems, issued by the Office of Management and Budget (OMB). 

The JFMIP requirements document describes the federal financial system 

architecture as consisting of (1) core financial systems; (2) other financial and 

mixed systems, not all of which are applicable to all agencies; (3) shared systems; 

and (4) departmental executive information systems (systems to provide 

management information to all levels of management).2

 Figure 1 is the JFMIP 

model that illustrates how these systems interrelate in an agency's overall systems 

architecture. 

Figure 1: Agency Systems Architecture

 

1

JFMIP is a joint undertaking of the Office of Management and Budget (OMB), GAO, the Department of the 

Treasury, and the Office of Personnel Management (OPM), working in cooperation with each other and with 

operating agencies to improve financial management practices throughout the government. The program was 

initiated in 1948 by the Secretary of the Treasury, the Director of the Bureau of the Budget (now OMB), and 

the Comptroller General. JFMIP was authorized by the Budget and Accounting Procedures Act of 1950 

(subsequently codified at 31 U.S.C. § 3511 (d)). The Civil Service Commission, now OPM, joined JFMIP in 

1966. 

2

JFMIP has also issued the Framework for Federal Financial Management Systems (JFMIP-SR-01-04, April 

2004), which is the foundation document for the JFMIP Financial Management System Requirements that sets 

forth the vision, desired capabilities, performance outcomes, environment, and other attributes that all 

federal financial management systems must be designed to support. 
______________________________________________________________________________ 

OVERVIEW 

______________________________________________________________________________ 

Page 7 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

To date, JFMIP has issued 13 of the 15 functional requirements shown in figure 1.3

We are issuing this checklist, which reflects JFMIP’s revised Core Financial 

System Requirements (JFMIP-SR-02-01, November 2001) and the Addendum to 

Core Financial System Requirements (March 2004), to assist (1) financial 

systems analysts, systems accountants, systems developers, program managers, 

and others who design, develop, implement, operate, or maintain financial 

management systems and (2) management and auditors in reviewing agency core 

systems to determine if the systems substantially comply with FFMIA. 

This checklist is not a requirement. It is provided as a tool for use by experienced 

staff. This checklist; the JFMIP source document, Core Financial System 

Requirements (JFMIP-SR-02-01, November 2001); OMB Circular A-127, Financial 

Management Systems; and OMB’s Revised Implementation Guidance for the 

Federal Financial Management Improvement Act (FFMIA), issued January 4, 

2001, should be used concurrently. Staff members who use this tool must apply 

experienced judgment in its interpretation and application. They must consider 

the impact of the completed checklist on the entire core financial system and 

whether the system, as a whole, substantially complies with requirements. 

Authoritative Guidance 

OMB Circular A-127, Financial Management Systems, and OMB’s January 4, 

2001, Revised Implementation Guidance for the Federal Financial Management 

Improvement Act provide the guidance for assessing compliance with FFMIA 

requirements. The OMB guidance identifies various criteria that agency systems 

must meet to substantially comply with these requirements. One set of criteria 

listed in the OMB guidance is the JFMIP system requirements series. 

The source of all the questions in this checklist is the JFMIP Core Financial 

System Requirements (JFMIP-SR-02-01, November 2001) and the Addendum to 

Core Financial System Requirements (March 2004). The JFMIP document and 

the addendum represent the latest update to the core document first issued in 

January 1988. These updates reflect recent changes in laws and regulations and in 

governmentwide reporting systems, such as the Department of the Treasury’s 

Federal Agencies Centralized Trial Balance System (FACTS) II, and the OMB 

policy requiring agencies to use the Intragovernmental Transaction Exchange 

 

3

Thus far, the series includes the (1) System Requirements for Managerial Cost Accounting (February 1998); 

(2) Human Resources and Payroll System Requirements (April 1999); (3) Direct Loan System 

Requirements (June 1999); (4) Travel System Requirements (July 1999); (5) Seized Property and Forfeited 

Assets System Requirements (December 1999); (6) Guaranteed Loan System Requirements (March 2000);

(7) Grant Financial System Requirements (June 2000); (8) Property Management System Requirements

(October 2000); (9) Benefit System Requirements (September 2001); (10) Core Financial System 

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

1999); (11) Acquisitions Financial System Requirements (June 2002); (12) Revenue System Requirements

(January 2003); and (13) Inventory, Supplies, and Materials System Requirements (August 2003),

which supercedes the 1995 Inventory System Requirements (June 1995). Functional requirements for budget 

formulation and insurance claims systems have not yet been issued. 
______________________________________________________________________________ 

OVERVIEW 

______________________________________________________________________________ 

Page 8 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Portal for executing certain types of financial transactions. The updates also 

clarify some existing requirements, delete redundant or outdated requirements, 

incorporate value-added requirements, change the priority (i.e., mandatory or 

value added) of certain requirements, and add new requirements to reflect the 

current needs of federal agencies. 

The JFMIP Core Financial Systems Requirements document is the basis for 

evaluating core financial system software for compliance with JFMIP 

requirements. It is done through a testing process that links test scenarios to the 

JFMIP requirements. JFMIP tests commercial software functionality against these 

requirements and qualifies the software as meeting mandatory requirements. 

JFMIP also uses this process to test government agency software compliance for 

those agencies that provide accounting systems to other government agencies on 

a cross-service agreement. 

The JFMIP document segregates functional requirements into two general 

categories—mandatory and value-added. The mandatory requirements describe 

what the system must do. They consist of the minimum acceptable functionality 

necessary to establish a system and are based on federal laws, regulations, 

directives, or judicial decisions. Mandatory requirements are those against which 

agency heads are to evaluate their systems to determine the systems’ substantial 

compliance with FFMIA. These requirements apply to existing systems in 

operation and new systems planned or under development. The checklist uses 

“M” immediately following the question to indicate a mandatory system 

requirement. 

The value-added requirements describe optional features or characteristics and 

may consist of any combination of the following: (1) using state-of-the-art 

technology, (2) employing the preferred or best business practices, or (3) meeting 

the special management needs of an individual agency. Agencies should consider 

value-added features when judging systems options. The need for these valueadded features in agency systems is left to the discretion of each agency head. The 

checklist uses “V” immediately following the question to indicate that the item is 

value-added and not mandatory. 

How to Use This Checklist 

OMB’s 2001 implementation guidance provides the agency heads and inspectors 

general with a means for determining whether their agencies’ financial 

management systems substantially comply with federal financial management 

system requirements. Agencies can use this checklist as a tool to help determine 

compliance with federal financial management system requirements as well as to 

assist in their annual reporting on such compliance as required by 31 U.S.C. § 

3512(d). 
______________________________________________________________________________ 

OVERVIEW 

______________________________________________________________________________ 

Page 9 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Completing this checklist will allow agencies to systematically determine whether 

specific systems requirements are being met. In determining compliance with 

FFMIA requirements, agencies should assess the results of the completed 

checklist based on the core financial system requirements taken as a whole. 

The checklist contains three columns with the first citing the question. Use the 

second column to answer each question “Yes,” “No,” or “N/A.” Use the third 

column to explain your answer. A “Yes” answer should indicate that the agency’s 

core financial system provides for the capability described in the question. For 

each “Yes” answer, the third column should contain a brief description of how the 

core financial system satisfies that capability and should also refer to a source 

that explains or shows the capability. 

A “No” answer indicates that the capability does not exist. For a “No” answer, the 

third column should provide an explanation4

 and, where applicable, a reference to 

any related supporting documentation. Cost-benefit studies or support for a “No” 

answer should be identified in the explanation column. If there are no cost-benefit 

studies or other support, a full explanation should be provided. 

“No” answers should not be viewed individually or taken out of context. Rather, 

“No” answers should be assessed as to their impact on the overall core financial 

system and the extent to which the “No” answers inhibit the entire core financial 

system from achieving compliance. Certain questions within the checklist may not 

be applicable to the agency. Answer these question(s) with “N/A” and provide an 

appropriate explanation in the third column.

This checklist is designed to capture the JFMIP requirements in a format that can 

be used to easily determine the JFMIP requirements that are applicable to federal 

financial management systems. The JFMIP requirements form the foundation for a 

system evaluation effort, and agencies must determine and document the agencyspecific requirements that must be developed to best meet their needs while

ensuring that the JFMIP requirements are fulfilled. This is consistent with how the 

JFMIP requirements should be used in an agency’s effort to develop or implement 

a financial management system. 

Moreover, systems requirements continually evolve as new laws and regulations 

are promulgated. Because there may be a time lag between the issuance of new 

laws and regulations and when the JFMIP systems requirements documents are 

updated, this checklist may also not include all relevant laws and regulations that 

should be considered when evaluating a system. Therefore, consideration must be 

given to identifying any changes in laws and regulations that could impact the 

requirements included in this checklist.

 

4

For example, the agency is working on modifying or implementing its core financial system to have the 

capability available in subsequent years; management believes the capability is not cost-effective and will not 

enhance the core financial system’s ability to manage operations.
______________________________________________________________________________ 

CORE FINANCIAL SYSTEM REQUIREMENTS 

______________________________________________________________________________ 

Page 10 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Government core financial systems, as an integral component of the federal 

agency systems architecture (see fig. 1), are relied on to control and support the 

key financial management functions of an agency. The core financial system 

receives data from other financial and mixed systems and from direct user input, 

and provides data and supports processing for other systems. JFMIP’s Core 

Financial System Requirements document provides functional requirements for 

financial managers, program managers, and others to control and account for 

federal programs as defined in governmentwide statutes, regulations, and 

guidelines. It is divided into two major sections, “functional requirements” and 

“technical requirements,” which are described below. 

• Functional requirements have been established to provide the basic 

information and control needed to carry out financial management functions; 

manage the financial operations of an agency; and report on the agency’s 

financial status to central agencies, Congress, and the public. This includes 

data needed to prepare the principal financial statements for federal agencies 

in accordance with OMB Bulletin No. 01-09, Form and Content of Agency 

Financial Statements. The major functions supported by a core financial 

system are discussed below: 

1. Core financial system management consists of the processes 

necessary to maintain the financial system in a manner that is consistent 

with established financial management laws, regulations, and policy. This 

function sets the framework for all other core financial system functions. 

2. General ledger management is the central function of the core 

financial system. The general ledger is the highest level of summarization 

and must maintain account balances by the accounting classification 

elements established in the core financial system management function. 

3. Funds management is the function that ensures that the agency does 

not obligate or disburse funds in excess of those appropriated or 

authorized. 

4. Payment management is the function that provides appropriate control 

over all payments made by or on behalf of the agency. 

5. Receivable management is the function that supports activities 

associated with recognizing and recording debts due to the government, 

performing follow-up actions to collect on these debts, and recording 

agency cash receipts. 

6. Cost management is the function that attempts to measure the total cost 

and revenue of federal programs and their various elements, activities, 

and outputs. 

7. Reporting is the function that provides timely and useful financial 

information to support management’s fiduciary role, budget formulation 

and execution functions, fiscal management of program delivery and 

program decision making, and internal and external reporting 

requirements. 
______________________________________________________________________________ 

CORE FINANCIAL SYSTEM REQUIREMENTS 

______________________________________________________________________________ 

Page 11 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

• Technical requirements have been established to help ensure that a core 

financial system is capable of meeting a wide variety of workload processing 

demands; provide transaction processing integrity and general operating 

reliability; incorporate standard installation, configuration, and operating 

procedures; and do not conflict with other administrative/program systems or 

other agency-established information technology (IT) standards. The JFMIP 

source document categorizes the technical requirements as (1) general 

design/architecture, (2) infrastructure, (3) user interfaces, (4) interoperability, 

(5) workflow/messaging, (6) document management, (7) Internet access, (8) 

security, and (9) operations and computing performance. 

All of the checklist questions come from the JFMIP source document, JFMIP-SR02-02, November 2001, and the March 2004 Addendum. Page number references 

follow each of the questions. It should be noted that not all questions will apply in 

all situations, and as with the use of any checklist, professional judgment should 

be exercised. Using the JFMIP source document and its “Appendix B: Glossary,” 

which defines terms used, along with OMB Circular A-127, Financial 

Management Systems, and OMB’s Revised Implementation Guidance for the 

Federal Financial Management Improvement Act (FFMIA), issued January 4, 

2001, will help ensure that the user is aware of the background information 

necessary to fully understand the questions. 
Page 12 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

(BLANK)
_____________________________________________________________________________ 

Core Financial System Requirements 

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Page 13 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

1. To support the accounting classification 

management process, does the core 

financial system provide the capability to 

classify accounting transactions by the 

following: 

a. treasury account symbol/treasury 

account fund symbol (TAS/TAFS), 

b. internal fund code, 

c. budget fiscal year, 

d. accounting quarter and month, 

e. program, 

f. organization, 

g. project, 

h. activity, 

i. cost center, 

j. object class, 

k. budget function (and subfunction code), 

and 

l. remaining U. S. Government Standard 

General Ledger (SGL) attributes not 

specified above? M (p. 18)7

 

 

5

The core financial system management function ensures that the capability exists for capturing, classifying, 

processing, storing, and retrieving the financial data federal agencies use in their daily operations. It 

establishes the reporting entity and framework for ensuring that data are shared among components of an 

agency’s single integrated financial management system. This function also ensures that transactions are 

processed in a uniform and consistent manner. 

6

The accounting classification is a subset of the agency financial information classification structure, which 

also includes financially related personnel information, performance measurement information, and other 

financial information needed by the agency. It provides the means for categorizing financial information along 

several dimensions as needed to support financial management and reporting functions. The data elements a 

particular agency includes in its accounting classification will depend on data aggregation requirements for 

preparation of financial statements under the Chief Financial Officers Act, the appropriation structure, and 

other reporting and management needs of the agency. 

7

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

Core Financial System Requirements 

_____________________________________________________________________________

Page 14 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

2. Does the core financial system provide the 

capability to define additional accounting 

classification elements and classify and 

report accounting transactions by each type 

of element? M (p. 18) 

 

3. Does the core financial system provide the 

capability to achieve consistency in budget 

and accounting classifications and 

synchronization between those 

classifications and the organizational 

structure, including the maintenance of data 

relationships between the following: 

a. budget formulation classifications 

(budget function and subfunction 

classification codes, per OMB Circular 

No. A-11, Preparation, Submission 

and Execution of the Budget), 

b. budget execution and accounting 

classifications (e.g., TAS/TAFS, 

internal fund, program, project, and 

activity), and 

c. the agency’s organizational structure? 

M (p. 18) 

 

4. Does the core financial system have the 

capability to provide a fund structure that 

identifies a TAS/TAFS established by OMB 

and Treasury? M (p. 18) 

 

5. Does the core financial system provide the 

capability to accommodate additional detail 

below the TAS level, such as an internal 

fund code to support fiscal year accounting 

and appropriation subaccounts used for 

reporting to Treasury? M (p. 18) 

 
_____________________________________________________________________________ 

Core Financial System Requirements 

_____________________________________________________________________________

Page 15 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

6. Does the core financial system provide the 

capability to differentiate among the type of 

budgeting, accounting, and reporting 

treatments to be used based on various 

TAS/TAFS characteristics? M (p. 18) 

 

7. At a minimum, does the core financial 

system provide the capability to support the 

following fund characteristics in accordance 

with Treasury and OMB reporting and 

budget execution requirements: 

a. fund type, such as general fund, 

deposit fund, trust fund, special fund, 

revolving fund, or receipt account; 

b. funding source, such as borrowing 

authority, contract authority, direct 

appropriation, or spending authority 

from offsetting collections; 

c. budget status, such as on budget, off 

budget, or financing account; and 

d. TAS/TAFS status, such as annual, 

multiyear, and no year? M (p. 18) 

 

8. Does the core financial system have the 

capability to provide a program structure 

with sufficient levels of detail to allow 

reporting for all categories on which 

budgetary decisions are made, whether 

legally binding, as in appropriation 

limitations, or in the nature of policy 

guidance, as in presidential pass backs and 

congressional markup tables? M (pp. 18 & 

19) 

 

9. Does the core financial system provide the 

capability to establish an organizational 

structure based on responsibility segments, 

such as bureaus, divisions, and branches? M

(p. 19) 

 
_____________________________________________________________________________ 

Core Financial System Requirements 

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Page 16 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

10. Does the core financial system provide the 

capability to tie responsible organizational 

units to programs, projects, and activities? 

M (p. 19) 

 

11. Does the core financial system provide the 

capability to support the management of 

multiple agency location codes (ALC) and 

associate the appropriate ALC with each 

transaction involving fund balance with 

Treasury to facilitate external reporting8

 and 

reconciliation with Treasury? M (p. 19) 

 

12. Does the core financial system have the 

capability to provide a project structure that 

is independent of the other accounting 

classification elements to allow multiple 

organizations, programs, and funding 

sources to be associated with a project? M

(p. 19) 

 

13. Does the core financial system have the 

capability to provide an object class 

structure consistent with the standard 

object class codes contained in OMB 

Circular No. A-11? M (p. 19) 

 

14. Does the core financial system have the 

capability to provide flexibility to 

accommodate additional levels (lower) in 

the object class structure? M (p. 19) 

 

15. Does the core financial system provide the 

capability to process additions, changes, 

and deletions to elements of the accounting 

classification design, and related valid 

domain values within accounting 

classifications, without extensive program 

or system changes (e.g., through online 

table updates)? M (p. 19) 

 

 

8

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

Core Financial System Requirements 

_____________________________________________________________________________

Page 17 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

16. Does the core financial system provide the 

capability to allow the user to enter, edit, 

and store accounting classification table 

changes so that the changes automatically 

become effective at any future date 

determined by the user? M (p. 19) 

 

17. Does the core financial system have the 

capability to reject or suspend interfaced 

transactions that contain accounting 

classification elements or domain values 

that have been deactivated or discontinued? 

M (p. 19) 

 

18. Does the core financial system have the 

capability to provide a revenue source code 

structure to identify and classify types of 

revenue and receipts as defined9

 by the 

user? V (p. 19) 

 

19. Does the core financial system provide the 

capability to validate all transactions 

involving Treasury and other disbursing 

centers for valid combinations of ALC and 

TAS/TAFS, as defined by the user? V (p. 19) 

 

20. Does the core financial system provide the 

capability to derive the full accounting 

classifications from abbreviated user input10

so that user input is minimized, data entry is 

made easier, and errors are controlled and 

reduced? V (p. 19) 

 

 

9

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

performed. 

10Examples of methods include entering "shorthand codes," using a keyboard function to look up additional 

elements, "clicking" on a "pop-up menu," and scanning a bar code. 
_____________________________________________________________________________ 

Core Financial System Requirements 

_____________________________________________________________________________

Page 18 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function5

Accounting classification6 management 

process 

Yes, 

No, 

or 

N/A

Explanation

21. Does the core financial system have the 

capability to provide for an automated 

method to reclassify accounting data at the 

document level when a restructuring of the 

existing values pertaining to the mandatory 

accounting classification elements is 

needed? V (p. 19) 

 

22. Does the core financial system provide the 

capability to maintain an audit trail from the 

original postings to the final posting? V (p. 

19) 

 
_____________________________________________________________________________ 

Core Financial System Requirements 

_____________________________________________________________________________

Page 19 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

23. To support the transaction definition and 

processing activity, does the core financial 

system provide the capability to use 

standard transactions when recording 

accounting events? M (p. 20) 

 

24. Do the standard transactions specify the 

postings to the general ledger accounts, and 

update document balances and any related 

tables, such as available funding? M (p. 20) 

 

25. Does the core financial system provide the 

capability to allow the user to include 

proprietary, budgetary, and memorandum 

accounts in the definition of a standard 

transaction? M (p. 20) 

 

26. Does the core financial system provide the 

capability to record transactions consistent 

with SGL posting rules? M (p. 20) 

 

27. Does the core financial system provide the 

capability to reject a transaction or provide 

a warning message when attempting to post 

a transaction that would cause general 

ledger debits and credits to be out of 

balance at a level below the TAS/TAFS, such 

as internal fund or organization level? M (p. 

20) 

 

 

11The transaction control process defines, maintains, and executes the posting and editing rules for 

transactions that are processed in the core financial system. The core financial system must be able to 

process and record transactions originally entered into it as well as transactions originating in other 

systems. In order to provide the basis for central financial control, the core system must track such 

transactions and related information. The transaction control process is further categorized as transaction 

definition and processing activities and audit trail activities. 

12SGL accounting transactions typically update multiple budgetary and proprietary accounts based on a 

single accounting event. The core financial system must ensure that transactions are controlled properly to 

provide reasonable assurance that the recording, processing, and reporting of financial data are properly 

performed and that the completeness and accuracy of authorized transactions are ensured. 
_____________________________________________________________________________ 

Core Financial System Requirements 

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Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

28. Does the core financial system provide the 

capability to allow users to define and 

maintain standard rules that control general 

ledger account postings13 for all accounting 

events? M (p. 20) 

 

29. Does the core financial system provide the 

capability to enable users to selectively 

require, omit, or set a default value for 

individual accounting classification14

elements? M (p. 20) 

 

30. Does the core financial system provide the 

capability to update all applicable general 

ledger account balances (i.e., budgetary, 

proprietary and memorandum accounts) 

based on a single input transaction? M (p. 

21) 

 

31. Does the core financial system have the 

capability to define, generate, and post 

compound general ledger debit and credit 

entries for a single transaction? M (p. 21) 

 

32. Does the core financial system provide the 

capability to accommodate at least 10 debit 

and credit pairs or 20 accounts when 

defining and processing a single 

transaction? M (p. 21) 

 

 

13The process of defining posting rules can be accomplished in a variety of ways, including, but not limited 

to, using transaction codes, screen “templates,” and derivation rules. 

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

expense. 
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Core Financial System Requirements 

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Page 21 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

33. Does the core financial system provide the 

capability to allow users to define and 

process system-generated transactions, such 

as automated accruals (e.g., payroll accrual 

entries), preclosing and closing entries, cost 

assignment transactions, recurring 

payments, and transactions that generate 

other transactions when a single transaction 

is not sufficient? M (p. 21) 

 

34. Does the core financial system provide the 

capability to automatically liquidate, 

partially or in full, the balance of open 

documents by line item?15 M (p. 21) 

 

35. Does the core financial system provide the 

capability to automatically determine and 

record the amount of upward or downward 

adjustments to existing obligations16 upon 

liquidation, cancellation, or other 

adjustment? M (p. 21) 

 

36. When adjustments are made to existing 

obligations or previously recorded 

expenditures, does the core financial system 

automatically distinguish between upward 

and downward adjustments to unexpired 

and expired budget authority, and generate 

the appropriate general ledger postings, 

without user intervention? M (p. 21) 

 

 

15This capability will be used in the liquidation of various documents, such as commitments, obligations, 

undelivered orders, payables, receivables, and advances, upon the processing of subsequent related 

transactions (e.g., liquidate an obligation upon entry of the related receiving report). 

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

modules or systems. 
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Core Financial System Requirements 

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Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

37. Relative to expired funds, does the core 

financial system have the capability to 

provide an overrideable error message when 

attempting to post (previously unrecorded) 

obligations to current year general ledger 

obligation accounts (such as SGL accounts 

4801 or 4802)? M (p. 21) 

 

38. When recording adjustments to prior year 

obligations (including previously expended 

authority), does the core financial system 

provide the capability to automatically 

classify upward and downward 

adjustments17 as paid and or unpaid 

according to the status of the related 

obligation or expenditure? M (p. 21) 

 

39. Does the core financial system provide the 

capability to control the correction and 

reprocessing of all erroneous transactions 

through the use of error/suspense files? M

(p. 21) 

 

40. Does the core financial system provide the 

capability to maintain erroneous 

transactions until either corrected and 

posted or deleted at the specific request of a 

user? M (p. 21) 

 

41. Does the core financial system have the 

capability to provide immediate, online 

notification to the user of erroneous 

transactions, the reason for the errors, and 

the ability to enter corrections online? M 

(p. 21) 

 

 

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

modules or systems. 
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Core Financial System Requirements 

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Page 23 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

42. Does the core financial system have the 

capability to provide controls to prevent the 

creation of duplicate transactions?18 M (p. 

21) 

 

43. Does the core financial system have the 

capability to provide a warning message 

when the user attempts to input an external 

vendor invoice number that has already 

been recorded for the related vendor? M (p. 

21) 

 

44. Does the core financial system provide the 

capability to validate the fields19 for all 

accounting classification elements required 

to process the transaction prior to posting? 

M (p. 22) 

 

45. Does the core financial system provide the 

capability to enter, edit, and store 

transactions in the current accounting 

period for automatic processing in a future 

accounting period? M (p. 22) 

 

46. Does the core financial system provide the 

capability to put transactions in a hold 

status (saved, but not processed or posted) 

within the core system (i.e., importing 

transactions from a spreadsheet or database 

application is not acceptable)? M (p. 22) 

 

47. Does the core financial system provide the 

capability to allow users to select held 

transactions and continue processing at a 

later date? M (p. 22) 

 

 

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

number). 

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

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Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

48. Does the core financial system provide the 

capability to capture the six-digit trading 

partner code (as specified by Treasury) 

when processing all transactions that 

directly involve another federal entity (i.e., 

both parties to a transaction are federal 

entities)? M (p. 22) 

 

49. For all transactions, does the core financial 

system provide the capability to capture 

transaction dates (effective date of the 

transaction) and posting dates (date 

transaction posted to general ledger)? M (p. 

22) 

 

50. Does the core financial system provide the 

capability to automatically determine the 

posting date from the system date for all 

transactions? M (p. 22) 

 

51. Does the core financial system provide the 

capability to automatically associate a 

default accounting period for each 

transaction, while allowing for user 

override? M (p. 22) 

 

52. Does the core financial system provide the 

capability to automatically reverse entries 

by the following parameters: 

a. transaction or document type, 

b. date range, 

c. schedule numbers, 

d. transaction identification number 

(i.e., document number) range, 

and 

e. trading partner? M (p. 22) 

 
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Core Financial System Requirements 

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Page 25 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

53. Does the core financial system provide the 

capability to post to the current and prior 

months concurrently until the prior month 

closing is complete? M (p. 22) 

 

54. Does the core financial system have the 

capability to provide and maintain online 

queries and reports on balances separately 

for the current and prior months? M (p. 22) 

 

55. At a minimum, does the core financial 

system provide the capability to maintain 

balances online for both the current and 

prior months until the prior month closing is 

complete? M (p. 22) 

 

56. Does the core financial system provide the 

capability to post to the current fiscal year 

and prior fiscal year concurrently until prior 

year-end closing is complete? M (p. 22) 

 

57. Does the core financial system have the 

capability to provide and maintain online 

queries and reports on balances separately 

for the current and prior fiscal years? M (p. 

22) 

 

58. At a minimum, does the core financial 

system have the capability to provide and 

maintain online balances for both the 

current and prior fiscal years until the prior 

fiscal year closing is complete? M (p. 22) 

 

59. Does the core financial system provide the 

capability to perform validation checks for 

use of certain general ledger accounts 

associated with specific Record Type 7 

authority, such as imprest fund or 

borrowing authority, prior to posting a 

transaction? V (p. 22) 

 
_____________________________________________________________________________ 

Core Financial System Requirements 

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Functional Requirements 

Core Financial System Management 

Function 

Transaction control process11

Transaction definition and processing12

Yes, 

No, 

or 

N/A

Explanation

60. Does the core financial system provide the 

capability to have all functions of the 

system, including budgeting, spending, 

accounts payable, and accounts receivable, 

process and track transactions in both 

foreign currency and U.S. dollars? V (p. 23) 

 

61. Does the core financial system provide the 

capability to calculate progress payments to 

foreign vendors based on current exchange 

rates? V (p. 23) 

 
_____________________________________________________________________________ 

Core Financial System Requirements 

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Page 27 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Core Financial System Management 

Function 

Transaction control process 

Audit trails20

Yes, 

No, 

or 

N/A

Explanation

62. To support the audit trail activity, does the 

core financial system have the capability to 

provide audit trails to trace transactions 

from their initial source21 through all stages 

of related system processing? M (p. 23) 

 

63. Does the core financial system provide the 

capability to select items for review based 

on user-defined criteria by type of 

transaction (e.g., by obligation transactions, 

vendor, or date range)? 22 M (p. 23) 

 

64. Does the core financial system have the 

capability to provide audit trails that 

identify document input, change, approval, 

and deletions by user? M (p. 23) 

 

 

20Adequate audit trails are critical to providing support for transactions and balances maintained by the core 

financial system. While audit trails are essential to auditors and system evaluators, they are also necessary 

for day-to-day operation of the system. For example, they allow for the detection and systematic correction 

of errors. 

21The initial source may be source documents, transactions originating from other systems (e.g., feeder 

systems), or internal system generated transactions. 

22Examples of reasons to select items are payment certification and financial statement audits. 
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Core Financial System Requirements 

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Functional Requirements 

General Ledger Management Function 

General ledger account definition process23

Yes, 

No, 

or 

N/A

Explanation

65. To support the general ledger account 

definition process, does the core financial 

system provide the capability to allow users 

to define and maintain a chart of accounts 

consistent with the SGL, including account 

titles and the basic numbering structure? M

(p. 25) 

 

66. Does the core financial system provide the 

capability to incorporate proprietary, 

budgetary, and memorandum (credit 

reform) accounts in the system, and 

maintain the relationships between SGL 

accounts as described in the current 

Treasury Financial Manual (TFM) 

Supplement? M (p. 25) 

 

67. Does the core financial system have the 

capability to provide SGL control accounts 

for detailed subsidiary accounts in the core 

or external systems? M (p. 25) 

 

68. Does the core financial system provide the 

capability to create additional subaccounts 

to the SGL for agency-specific tracking and 

control that will summarize to the 

appropriate SGL accounts? M (p. 25) 

 

69. Does the core financial system provide the 

capability to capture SGL attribute 

information required for both FACTS I and 

FACTS II reporting as specified by the 

current supplement(s) to the TFM? M (p. 

25) 

 

 

23The general ledger account definition process establishes the general ledger account structure for the 

agency consistent with the SGL and establishes the transaction edit and posting rules to record financial 

events. 
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Core Financial System Requirements 

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Functional Requirements 

General Ledger Management Function 

General ledger account definition process23

Yes, 

No, 

or 

N/A

Explanation

70. Does the core financial system have the 

capability to provide flexibility so that the 

system can adapt to changes in reporting 

requirements of FACTS I and FACTS II?24 M

(p. 25) 

 

71. Does the core financial system provide the 

capability to process additions, deletions, 

and changes to the chart of accounts 

without extensive program or system 

changes, (e.g., through online table 

updates)? M (p. 25) 

 

72. Does the core financial system provide the 

capability to prohibit new transactions from 

posting to general ledger accounts that have 

been deactivated? M (p. 25) 

 

 

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

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Functional Requirements 

General Ledger Management Function 

Accruals, closing, and consolidation 

process25

Yes, 

No, 

or 

N/A

Explanation

73. To support the accruals, closing, and 

consolidation process, does the core 

financial system provide the capability to 

allow for accruals relating to contracts or 

other items that cross fiscal years? M (p. 25) 

 

74. Does the core financial system provide the 

capability to automatically generate 

selected recurring accrual entries and 

reversals in subsequent accounting periods 

(e.g., payroll accrual)? M (p. 26) 

 

75. Does the core financial system provide the 

capability to close an accounting period and 

prohibit subsequent postings to the closed 

period? M (p. 26) 

 

76. Does the core financial system provide the 

capability to automatically determine an 

accounting period’s opening balances based 

on the prior accounting period’s closing 

balances, without user intervention or 

adjustment? M (p. 26) 

 

77. Does the core financial system provide the 

capability to accomplish the rollover of 

general ledger balances in a detailed manner 

that maintains the SGL attribute information 

required to satisfy FACTS I and FACTS II 

reporting requirements? M (p. 26) 

 

78. Does the core financial system provide the 

capability to perform multiple preliminary 

year-end closings, while maintaining the 

capability to post current and prior period 

data? M (p. 26) 

 

 

25This process creates accrual transactions (adjusting) and closing entries needed at the end of a period 

(month or year) for reporting purposes. It also controls and executes period-end system processes needed 

by the system to open a new reporting period, such as rolling forward account balances or reversing certain 

year-end entries. This process supports the preparation of consolidated financial statements by identifying 

information needed in that process. 
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Core Financial System Requirements 

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Functional Requirements 

General Ledger Management Function 

Accruals, closing, and consolidation 

process25

Yes, 

No, 

or 

N/A

Explanation

79. Does the core financial system provide the 

capability to automatically generate fiscal 

year-end preclosing and closing entries as 

they relate to fund types? M (p. 26) 

 

80. Does the core financial system have the 

capability to provide for an automated yearend rollover of appropriate system tables 

into the new fiscal year? M (p. 26) 

 
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Core Financial System Requirements 

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Functional Requirements 

General Ledger Management Function 

General ledger analysis and reconciliation 

process26

Yes, 

No, 

or 

N/A

Explanation

81. To support the general ledger analysis and 

reconciliation process, does the core 

financial system provide the capability to 

compare amounts in the general ledger 

accounts with the amounts in the related 

subsidiary records and create reports for 

those accounts that are out of balance? M

(p. 26) 

 

82. Is the capability described in the previous 

question available for all open accounting 

period balances and at frequencies defined 

by the user, such as daily, weekly, and 

monthly? M (p. 26) 

 

83. Does the core financial system provide the 

capability to perform online "drill downs" 

from general ledger summary balances to 

detail transactions and referenced 

documents (e.g., purchase orders and 

receiving reports)? M (p. 26) 

 

84. Does the core financial system provide the 

capability to record subsequent activity 

related to a closed document under a unique 

document ID and provide an audit trail that 

associates the new activity with the 

transaction history of the original 

document? M (p. 26) 

 

 

26This process supports the control functions of the SGL. The core financial system must provide 

information to use in determining that balances in the general ledger control accounts agree with more 

detailed subsidiary accounts and for reconciling system balances with financial information contained in 

reports from Treasury and other agencies. 
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Core Financial System Requirements 

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Functional Requirements 

Funds Management Function27

Budget preparation process28

Yes, 

No, 

or 

N/A

Explanation

85. To support the budget preparation process, 

does the core financial system provide the 

capability to establish and maintain 

operating/financial plans at or below the 

level of funds control? M (p. 28) 

 

86. Does the core financial system provide the 

capability to establish operating/financial 

plans by month and quarter at any level of 

the organizational structure specified by the 

user? M (p. 28) 

 

87. Does the core financial system provide the 

capability to track and report on the use of 

funds against operating/financial plans? M

(p. 28) 

 

88. Does the core financial system provide the 

capability to prepare operating/financial 

plans based on multiple measures, including 

obligations, costs, labor hours, and full-time 

equivalents? V (p. 29) 

 

89. Does the core financial system provide the 

capability to modify/revise an existing 

operating/financial plan by line item? V (p. 

29) 

 

90. Does the core financial system provide the 

capability to maintain original and modified 

operating/financial plans? V (p. 29) 

 

 

27The funds management function must support agency policies on internal funds allocation methods and 

controls. An agency will likely have many other systems in addition to the core financial system that affect 

funds management. For example, procurement and travel systems generate documents that commit and 

obligate funds. These systems typically access the funds availability editing activity before allowing an 

obligation to be incurred, such as when entering into a contract. However, in some cases, such as payroll, 

this may not be practical. 

28Budget preparation is the process of establishing initial agency operating/financial plans and updating 

them as necessary throughout the fiscal year. An operating/financial plan is a blueprint for using financial 

resources during any given fiscal period or series of periods. The function includes reporting on the use of 

resources against these plans throughout the year. 
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Core Financial System Requirements 

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Functional Requirements 

Funds Management Function27

Budget preparation process28

Yes, 

No, 

or 

N/A

Explanation

91. Does the core financial system provide the 

capability to identify legal and 

administrative limitations on funds in 

operating/financial plans? V (p. 29) 

 

92. Does the core financial system provide the 

capability to generate allotments and 

suballotments (including limitations based 

on approved changes to operating/financial 

plans)? V (p. 29) 

 

93. Does the core financial system provide the 

capability to enter operating/financial plans 

for future operating periods? V (p. 29) 

 

94. Does the core financial system provide the 

capability to roll future plans into active 

budget plans based on future date or 

retrieval function? V (p. 29) 

 
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Core Financial System Requirements 

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Functional Requirements 

Funds Management Function 

Budget formulation process29

Yes, 

No, 

or 

N/A

Explanation

95. To support the budget formulation process, 

does the core financial system provide the 

capability to report information for all 

categories on which budgetary decisions are 

made, whether legally binding (e.g., 

appropriation limitations) or in the nature of 

policy guidance and decision making (e.g., 

Presidential/OMB pass backs, congressional 

markup documents, or internal agency 

decisions)? V (p. 29) 

 

96. Does the core financial system have the 

capability to populate the budget 

formulation system with prior-year 

budgeted and actual amounts? V (p. 29) 

 

97. Does the core financial system provide the 

capability to perform projections of 

obligations, income, and expenditures at 

any level of the organizational structure 

(e.g., projecting obligations based on prior 

periods and applying these to a future 

period)? V (p. 29) 

 

98. Does the core financial system provide the 

capability to adjust projection rates (e.g., 90 

percent, 100 percent, and 110 percent) and 

exclude specified obligations from 

projection? V (p. 30) 

 

99. Does the core financial system provide the 

capability to create, store, and modify 

payroll forecasts, including anticipated 

monthly compensation and benefits, at the 

individual employee level? V (p. 30) 

 

 

29Budget formulation is the process of assembling estimates for the upcoming fiscal year for transmittal to 

OMB and the congressional appropriations committees, preparing justification materials to support those 

estimates, and defending those estimates formally (at OMB and congressional hearings) and informally 

(through staff contacts with these entities). 
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Core Financial System Requirements 

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Functional Requirements 

Funds Management Function 

Budget formulation process29

Yes, 

No, 

or 

N/A

Explanation

100. Does the core financial system provide the 

capability to incorporate overhead 

distribution as part of budget formulation? V

(p. 30) 

 

101. Does the core financial system provide the 

capability to develop budgets online and via 

upload from spreadsheets? V (p. 30) 

 

102. Does the core financial system provide the 

capability to prepare budget submission 

guidance, budget narratives, and budget 

briefing packages online and via upload 

from desktop software applications? V (p. 

30) 

 

103. Does the core financial system provide the 

capability to distribute budget submission 

guidance to subordinate organizations 

electronically? V (p. 30) 

 

104. Does the core financial system provide the 

capability to establish and maintain multiple 

budget cycles? V (p. 30) 

 

105. Does the core financial system provide the 

capability to tie budget formulation to the 

agency’s stated goals and objectives 

required by the Government Performance 

and Results Act of 1993? V (p. 30) 

 
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Functional Requirements 

Funds Management Function 

Funds allocation process30

Yes, 

No, 

or 

N/A

Explanation

106. To support the funds allocation process, 

does the core financial system provide the 

capability to record funding and related 

budget execution documents (e.g., warrants, 

apportionments, and allotments) and 

limitations? M (p. 30) 

 

107. Does the core financial system provide the 

capability to control the use of funds against 

limitations consistent with appropriation 

and authorization language and 

administrative limitations established by 

agency management? M (p. 30) 

 

108. Does the core financial system provide the 

capability to distribute, track, and control 

funds at various levels, based on the 

elements of the accounting classification 

and project structure? M (p. 30) 

 

109. Does the core financial system provide the 

capability to verify that funds distributed do 

not exceed the amount of funds available 

for allotment or suballotment at each 

distribution level? M (p. 30) 

 

110. Does the core financial system provide the 

capability to support subchapter IV of 

chapter 15 of title 31,31 United States Code 

(closing accounts), by assuring that 

amounts paid out of current year funds to 

cover obligations made against a closed 

account do not exceed 1 percent of the 

current year appropriation? M (p. 30) 

 

 

30The funds allocation process records an agency’s budgetary resources and supports the establishment of 

budgetary limitations at each of the levels required within the agency (e.g., apportionments and 

allocations). The higher levels, such as appropriation, apportionment, and allotment, have the weight of 

legal authority behind the limitations. Lower levels of control are generally used for internal management 

purposes. 

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

Funds Management Function 

Funds allocation process30

Yes, 

No, 

or 

N/A

Explanation

111. Does the core financial system provide the 

capability to record and control all types of 

budgetary authority, including 

appropriations, spending authority from 

offsetting collections, borrowing authority, 

and contract authority? M (p. 31) 

 

112. Does the core financial system provide the 

capability to identify the type of authority 

and track obligations by funding source? M

(p. 31) 

 

113. Does the core financial system provide the 

capability to record the expiration and 

cancellation of appropriation authority in 

accordance with OMB Circular A-11, 

Preparation, Submission, and Execution 

of the Budget, Part 432 and the SGL? M (p. 

31) 

 

114. Does the core financial system provide the 

capability to account for spending 

transactions at a lower level in the 

accounting classification than they are 

budgeted? M (p. 31) 

 

115. Does the core financial system provide the 

capability to account for budgetary 

resources at a lower level in the accounting 

classification than they are budgeted and 

controlled? M (p. 31) 

 

116. Does the core financial system provide the 

capability to prepare and electronically 

transmit SF-132s (Apportionment and 

Reapportionment Schedules and associated 

financial information) to OMB? M (p. 31) 

 

 

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

Instructions in Budget Execution. 
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Core Financial System Requirements 

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Functional Requirements 

Funds Management Function 

Funds allocation process30

Yes, 

No, 

or 

N/A

Explanation

117. Does the core financial system provide the 

capability to store prepared requests as 

submitted for future use? M (p. 31) 

 

118. Does the core financial system provide the 

capability to generate budgetary data in the 

format required by OMB's MAX33 system? V

(p. 31) 

 

119. Does the core financial system provide the 

capability to automatically prepare the 

formal allotment and suballotment 

documents and electronically distribute 

them to subordinate organizations? V (p. 31) 

 

120. Does the core financial system provide the 

capability to create continuing resolution 

funding levels based on a percentage of 

prior-year funding? V (p. 31) 

 

 

33Used to support the federal budget process, the OMB MAX Budget Information System is used to collect, validate, 

analyze, model, and publish information. Perhaps the most visible end product of the MAX system is the Budget of the 

United States Government, also known as the President’s budget. 
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Functional Requirements 

Funds Management Function 

Budget execution process34

Yes, 

No, 

or 

N/A

Explanation

121. To support the budget execution process, 

does the core financial system provide the 

capability to record budget authority at 

multiple35 levels of distribution? M (p. 31) 

 

122. Does the core financial system provide the 

capability to track and record all changes to 

budget authority at multiple levels of 

distribution, including rescissions, 

supplementals, transfers between 

TAS/TAFS, reprogramming, limitations, and 

changes to continuing resolutions prior to 

appropriation enactment? M (p. 31) 

 

123. Does the core financial system provide the 

capability to track actual amounts and 

verify commitments and obligations against 

the budget as revised, consistent with each 

budget distribution level? M (p. 32) 

 

124. Does the core financial system provide the 

capability to modify funding distribution 

(including apportionments and allotments) 

at multiple organizational levels? M (p. 32) 

 

125. Does the core financial system provide the 

capability to manage and control prior-year 

funds in the current year? M (p. 32) 

 

126. Does the core financial system provide the 

capability to establish and maintain userdefined variance tolerances by document 

type, percentage, and a “not-to-exceed” 

dollar threshold? M (p. 32) 

 

 

34The budget execution process is the most detailed level of an agency’s funds control and consists of 

processes needed to ensure that the agency’s funds control systems are fully supported by its accounting 

systems. It also consists of processes needed to track an agency’s budget authority and manage prior-year 

funds in the current year. Allotment systems should be designed so that responsibility for budget control is 

placed at the highest practical organizational level consistent with effective and efficient management and 

control. 

35There must be at least five organizational levels. 
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Functional Requirements 

Funds Management Function 

Budget execution process34

Yes, 

No, 

or 

N/A

Explanation

127. Does the core financial system provide the 

capability to automatically withdraw (or 

cancel) uncommitted and unobligated 

allotments and suballotments for all or 

selected TAS/TAFS at the end of a specific 

fiscal period? M (p. 32) 

 

128. Does the core financial system provide the 

capability to automatically withdraw (or 

cancel) uncommitted and unobligated 

allotments and suballotments for selected 

organizations at the end of a specific fiscal 

period? M (p. 32) 

 

129. Does the core financial system provide the 

capability to distribute the annual budget in 

accordance with the latest SF-132, 

Apportionment and Reapportionment

Schedule, approved by OMB? M (p. 32) 

 

130. Does the core financial system provide the 

capability to request approval for 

reprogramming as well as to request 

additional funds outside the periodic budget 

review process? V (p. 32) 

 

131. Does the core financial system provide the 

capability to allow requests identified in the 

previous question to be submitted, 

reviewed, revised, and approved, with 

approval updating current operating 

budgets? V (p. 32) 

 
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Functional Requirements 

Funds Management Function 

Funds control process36

Funds availability editing37

Yes, 

No, 

or 

N/A

Explanation

132. To support the funds availability editing 

activity, does the core financial system 

provide the capability to establish and 

modify multiple levels of funds control 

using elements of defined accounting 

classifications, including object class, 

program, organization, project, and fund? M

(p. 33) 

 

133. Does the core financial system provide the 

capability to establish and modify the 

system’s response (either reject a 

transaction or provide a warning) to the 

failure of funds availability edits for each 

transaction type? M (p. 33) 

 

134. Does the core financial system provide the 

capability to perform online inquiry of funds 

availability prior to the processing of 

spending transactions (commitments, 

obligations, and expenditures)? M (p. 33) 

 

135. Does the core financial system provide the 

capability to determine funds availability 

based on whether funds cited are current, 

expired, or canceled and record appropriate 

accounting entries when deobligation of 

expired funding occurs? M (p. 33) 

 

136. Does the core financial system provide the 

capability to disallow the use of deobligated 

prior-year funds for current year 

expenditures? M (p. 33) 

 

 

36This process records transactions affecting the resources and status accounts in the budgetary section of 

the SGL. It also provides appropriate warnings and controls to ensure that budgetary limitations are not 

exceeded. The funds control process consists of (1) funds availability editing, (2) commitments, 

(3) obligations, and (4) analysis. 

37This activity verifies that sufficient funds are available at the various control levels specified in the funds 

allocation process for each processed transaction that may affect available fund balances. If sufficient funds 

are not available, notification is provided so that appropriate action may be taken. 
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Functional Requirements 

Funds Management Function 

Funds control process36

Funds availability editing37

Yes, 

No, 

or 

N/A

Explanation

137. Does the core financial system provide the 

capability to record transactions that affect 

the availability of funds, including 

commitments, obligations, and 

expenditures? M (p. 33) 

 

138. Does the core financial system have the 

capability to provide for modification to 

spending documents (commitments, 

obligations and expenditures), including 

ones that change the dollar amount or the 

accounting classification cited? M (p. 33) 

 

139. Does the core financial system provide the 

capability to check for funds availability 

when changes are made? M (p. 33) 

 

140. Does the core financial system have the 

capability to notify users online when 

transactions fail funds availability edits and 

make the rejected transactions38 available 

for corrective action? M (p. 33) 

 

141. Does the core financial system provide the 

capability to override funds availability 

edits, including automatically releasing and 

processing transactions previously rejected 

for exceeding user-defined tolerances? M

(p. 33) 

 

142. Does the core financial system provide the 

capability to produce a report or otherwise 

notify management of the overobligation of 

funds? M (p. 33) 

 

 

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

modules or systems. 
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Functional Requirements 

Funds Management Function 

Funds control process36

Funds availability editing37

Yes, 

No, 

or 

N/A

Explanation

143. Does the core financial system provide the 

capability to automatically update all 

appropriate budgetary accounts, tables, or 

both to ensure that the system always 

maintains and reports the current status of 

funds? M (p. 33) 

 

144. Does the core financial system provide the 

capability to check for funds availability 

when the obligation exceeds the 

commitment or when the expenditure (upon 

receipt or disbursement) exceeds the 

obligation due to quantity or price 

variances, additional shipping charges, etc., 

within tolerances? M (p. 33) 

 

145. Does the core financial system have the 

capability to provide online notification 

when tolerances are exceeded? M (p. 33) 

 

146. When variances are within tolerances, does 

the core financial system provide the 

capability to process and adjust the 

obligation accordingly? M (p. 33) 

 

147. Does the core financial system provide the 

capability to allow for available fund 

balances to be based on reimbursable 

customer orders accepted? M (p. 33) 

 

148. In the case of reimbursable orders from the 

public, does the core financial system 

provide the capability to ensure that an 

advance also be received before additional 

funding authority is recorded? M (p. 33) 

 

149. Does the core financial system provide the 

capability to track all activity related to an 

individual reimbursable agreement? M (p. 

33) 

 
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Functional Requirements 

Funds Management Function 

Funds control process36

Funds availability editing37

Yes, 

No, 

or 

N/A

Explanation

150. When recording commitments, obligations, 

and expenditures incurred in support of 

reimbursable agreements, does the core 

financial system provide the capability to 

check for funds availability against the 

amount authorized by the agreement and 

the corresponding start and end dates? M

(pp. 33 & 34) 

 

151. Does the core financial system provide the 

capability to record and maintain 

reimbursable agreements (e.g., interagency 

agreements) so that monthly, quarterly, and 

fiscal-year-to-date as well as inception-todate information can be presented? M (p. 

34) 

 

152. Does the core financial system provide the 

capability to automatically notify users 

when funds availability is reduced by 

transactions from external systems (e.g., 

credit card payments and payroll)? V (p. 34) 

 
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Functional Requirements 

Funds Management Function 

Funds control process 

Commitments39

Yes, 

No, 

or 

N/A

Explanation

153. To support the commitment activity, does 

the core financial system provide the 

capability to capture and maintain the 

following information related to each 

commitment document, including 

amendments: 

a. requisition number, 

b. appropriate accounting classification 

values, and 

c. estimated amounts? M (p. 34) 

 

154. Does the core financial system provide the 

capability to input line item detail for 

commitment documents, including item 

description, unit price, quantity of goods 

and services, accounting information, and 

amounts? M (p. 34) 

 

155. Does the core financial system provide the 

capability to future-date, store, and 

automatically post commitment documents 

at the appropriate date? M (p. 34) 

 

156. Does the core financial system provide the 

capability to subject commitment 

documents to edit and validation 

procedures prior to posting? M (p. 34) 

 

157. Does the core financial system have the 

capability to provide notification when 

commitment transactions are posted? M 

(p. 34) 

 

 

39Commitments are an optional stage of fund reservations prior to the establishment of an obligation. This 

activity records commitment documents, such as requisitions. Commitments can be a useful tool in funds 

management by helping users to anticipate future procurements. They should be used when helpful to an 

agency’s management process, but are not necessary, or even appropriate, for all situations. However, the 

core financial management system must provide the capability to use this stage of funds control. 
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Functional Requirements 

Funds Management Function 

Funds control process 

Commitments39

Yes, 

No, 

or 

N/A

Explanation

158. Does the core financial system provide the 

capability to close commitments by 

document and line item under the following 

circumstances: 

a. automatically by the system upon 

issuance of an obligating document, 

b. by an authorized user, and 

c. automatically as part of the year-end 

preclosing process? M (p. 34) 

 
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Functional Requirements 

Funds Management Function 

Funds control process 

Obligations40

Yes, 

No, 

or 

N/A

Explanation

159. To support the obligation activity, does the 

core financial system provide the capability 

to record obligations for which there is no 

related commitment? M (p. 35) 

 

160. Does the core financial system provide the 

capability to maintain information related to 

obligation documents and related 

amendments, including obligating document 

number and type, vendor information, 

accounting classification elements, 

referenced commitment (if applicable), and 

dollar amounts? M (p. 35) 

 

161. Does the core financial system provide the 

capability to future-date, store, and 

automatically post obligation documents at 

the appropriate date? M (p. 35) 

 

162. Does the core financial system provide the 

capability to subject obligation documents 

to edit and validation procedures prior to 

posting? M (p. 35) 

 

163. Does the core financial system have the 

capability to provide notification when 

obligation transactions are posted? M (p. 

35) 

 

164. Does the core financial system provide the 

capability to enter recurring obligation 

transactions that will be automatically 

posted at various, intervals, such as 

monthly, quarterly, or a specific number of 

days determined by the user? M (p. 35) 

 

 

40OMB Circular A-11 defines an obligation as a binding agreement that will result in outlays, immediately or 

in the future. Budgetary resources must be available before obligations can be incurred legally. Examples 

are amounts of orders placed, contracts awarded, services received, and similar transactions that will 

require payments during the same or a future period. Such amounts include outlays for which obligations 

had not been previously recorded and reflect adjustments for differences between obligations previously 

recorded and actual outlays to liquidate those obligations. 
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Functional Requirements 

Funds Management Function 

Funds control process 

Obligations40

Yes, 

No, 

or 

N/A

Explanation

165. Does the core financial system provide the 

capability to allow multiple commitments to 

be combined into one obligating document? 

M (p. 35) 

 

166. Does the core financial system provide the 

capability to allow one commitment 

document to be split between multiple 

obligating documents? M (p. 35) 

 

167. Does the core financial system provide the 

capability to reference multiple funding 

sources on a single commitment or 

obligation? M (p. 35) 

 

168. Does the core financial system provide the 

capability to allow authorized modifications 

and cancellations of posted obligating 

documents? M (p. 35) 

 

169. Does the core financial system provide 

online access to all obligations by selection 

criteria (e.g., document number, vendor 

number, and accounting classification 

elements)? M (p. 35) 

 

170. Does the core financial system have the 

capability to provide the capability to 

maintain an online history file of closed-out 

documents for a user-defined period? M 

(p. 35) 

 

171. Does the core financial system provide the 

capability to allow the vendor used on an 

obligation to be different from suggested 

vendor recorded on the related commitment 

document? M (p. 35) 

 
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Functional Requirements 

Funds Management Function 

Funds control process 

Obligations40

Yes, 

No, 

or 

N/A

Explanation

172. Does the core financial system provide the 

capability to close obligation documents 

under the following circumstances: 

a. automatically, by the system upon 

final payment for goods or services, or 

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

 

173. Upon the closing of an obligation, does the 

core financial system provide the capability 

to automatically classify any deobligation of 

excess funds to the appropriate budgetary 

status (i.e., expired, unexpired, available for 

obligation, or unavailable)? M (p. 35) 

 

174. Does the core financial system provide the 

capability to record and maintain contracts 

and grants and related financial activity so 

that fiscal year-to-date and inception-to-date 

information can be presented? M (p. 36) 

 

175. Does the core financial system provide the 

capability to record blanket purchase 

agreements and record, control, and track 

records of call? M (p. 36) 

 

176. Does the core financial system provide the 

capability to record, control, and track 

delivery orders against a contract 

limitation? M (p. 36) 

 

177. Does the core financial system provide the 

capability to record advance payments 

made, such as travel advances, contract 

advances, and grants? M (p. 36) 

 

178. Does the core financial system provide the 

capability to ensure that an obligation exists 

prior to recording an advance? M (p. 36) 

 
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Functional Requirements 

Funds Management Function 

Funds control process 

Obligations40

Yes, 

No, 

or 

N/A

Explanation

179. Does the core financial system provide the 

capability to record expenditures claimed 

against advance payments made, and 

automatically liquidate the advance either 

partially or fully, as appropriate? M (p. 36) 

 

180. Does the core financial system provide the 

capability to allow the recording of advance 

refunds? M (p. 36) 

 

181. Does the core financial system provide the 

capability to automatically link transactions 

in the spending chain, and bring forward 

accounting and nonfinancial information 

from one document to another, when the 

previously accepted document is referenced 

(e.g., commitment to obligation or 

obligation to receiving report)? M (p. 36) 

 
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Functional Requirements 

Funds Management Function 

Funds control process 

Obligations40

Yes, 

No, 

or 

N/A

Explanation

182. Does the core financial system provide the 

capability to maintain the following 

additional data fields for each obligating 

document: 

a. requester’s name, 

b. telephone number of requester, 

c. contract number/General Services 

Administration schedule number, 

d. deliver to location (e.g., room number 

or division), 

e. comment field, 

f. contact name, 

g. name of contract officer’s technical 

representative (COTR), 

h. COTR telephone number, 

i. prompt pay indicator, 

j. approval date, and 

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

 
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Funds Management Function 

Funds control process 

Analysis41

Yes, 

No, 

or 

N/A

Explanation

183. To support the analysis activity, does the 

core financial system provide the capability 

to maintain current information on 

commitments and obligations according to 

the required accounting classification 

elements?42 M (p. 36) 

 

184. Does the core financial system provide the 

capability to produce detailed listings and 

summary reports of commitments, 

obligations, and expenditures by the 

elements of the defined accounting 

classifications? M (p. 36) 

 

185. Does the core financial system have the 

capability to provide control features that 

ensure that the amounts reflected in the 

fund control structure agree with the related 

general ledger account balances at the end 

of each update cycle? M (p. 37) 

 

186. Does the core financial system provide the 

capability to maintain historical data on all 

commitment, obligation, payment, and 

collection transactions? M (p. 37) 

 

187. Does the core financial system provide the 

capability to maintain open documents to 

show the status of commitments, 

obligations, accruals, and disbursements by 

document line item? M (p. 37) 

 

 

41The analysis activity provides information necessary to support analysis of the funds management 

function. It provides information on funds availability at the levels defined and compares data in the funds 

management function to data in other functions to ensure consistency. 

42The required accounting classification elements are listed in question one under the accounting 

classification management process within the core financial management system function. 
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Functional Requirements 

Funds Management Function 

Funds control process 

Analysis41

Yes, 

No, 

or 

N/A

Explanation

188. Does the core financial system provide the 

ability to perform document crossreferencing in which a user can query on 

any document and identify the document 

numbers of associated transactions in the 

processing "chain"?43 M (p. 37) 

 

 

43For example, querying on a purchase order would provide any amendments to purchase orders, receiving 

reports, requisitions, and invoices; querying on a receivable would provide any associated cash receipts. 
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Functional Requirements 

Payment Management Function44

Payee information maintenance process45

Yes, 

No, 

or 

N/A

Explanation

189. To support the payee information 

maintenance process, does the core 

financial system provide the capability to 

maintain payee (vendor) information to 

support obligation, accounts payable, and 

disbursement processes, including the 

following: 

a. vendor name (legal name and “doing 

business as” (DBA), as appropriate); 

b. tax identification number (TIN); 

c. vendor ID number (agency assigned); 

d. data universal numbering system 

(DUNS) number, including the 

maintenance of the ability to associate 

multiple DUNS numbers to a TIN; 

e. organization type that can 

accommodate Central Contractor 

Registration (CCR) published 

business rules for organization types, 

such as sole proprietorship/individual, 

partnership, or employee; 

f. business type that can accommodate 

CCR published business rules for 

business type, such as federal agency 

or local government; 

(continued) 

 

 

44These requirements apply to all payments processed through the core system. Depending on an agency’s 

system architecture, specific activities performed relating to payments may be supported by other systems 

that provide transaction data to the core financial system for control and management purposes. For 

example, payroll systems usually trigger the actual disbursement process to pay employees through direct 

deposit or by check, and send only the expense and disbursement information to the core financial system 

for recording by the general ledger, funds control, and cost management processes. Likewise, large loan 

and grant programs might be supported by systems that maintain their own detailed information on payees 

and payments and send transaction data to the core financial system. 

45The term “payee” is used here to include any entity to which disbursement may be made, for example, 

individuals and organizations providing goods and services, employees, grant recipients, loan recipients, 

and other government agencies. In an integrated system, payee information needed to make payments 

should be coordinated with information needed for other purposes and in other systems. 
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Functional Requirements 

Payment Management Function44

Payee information maintenance process45

Yes, 

No, 

or 

N/A

Explanation

g. federal versus nonfederal indicator for 

FACTS reporting; 

h. ALC number (for federal vendors); 

i. six-digit trading partner code (for 

federal vendors); 

j. multiple payment methods, such as 

electronic funds transfer (EFT) or 

check; 

k. three or more “remit to” addresses (to 

facilitate payments to vendors not 

required to register in CCR); 

l. three or more separate instances of 

banking information required to 

execute an EFT transaction, such as 

account and routing transit numbers; 

m. for CCR vendors (i.e., organizations 

that are required to register in the 

CCR), DUNS + Four for each instance 

of banking information; 

n. bank account type (checking or 

savings); 

o. three or more contact names and 

telephone numbers (i.e., 

accommodate contact types defined 

as “mandatory” in CCR business 

rules); 

p. third-party information, such as payee 

TIN for notice of assignment, as 

appropriate; 

q. subject to prompt pay indicator; 

r. Internal Revenue Service (IRS) Form 

1099 indicator; 

(continued) 
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Functional Requirements 

Payment Management Function44

Payee information maintenance process45

Yes, 

No, 

or 

N/A

Explanation

s. W-2 indicator; 

t. CCR indicator (required or exempt); 

u. CCR status (i.e., active, inactive, or 

unregistered); 

v. comment field; 

w. date of last update; and 

x. User ID of last update? M (Addendum 

to Core Financial Management 

System, March 31, 2004, p. 2 of 3) 

190. Does the core financial system provide the 

capability to support payments made to 

third parties (payees) that act as agents for 

the payee (vendor)? M (p. 39) 

 

191. Does the core financial system provide the 

capability to maintain information needed to 

produce IRS Forms 1099 for the principal 

party rather than the agent? M (p. 39) 

 

192. Does the core financial system provide the 

capability to prevent the duplicate entry of 

vendor records (e.g., by editing vendor ID 

numbers or vendor names.)? M (p. 39) 

 

193. Does the core financial system have the 

capability to provide an online warning 

message to the user when duplication is 

identified? M (p. 39) 

 

194. Does the core financial system provide the 

capability to track and maintain a history of 

changes to the vendor file, including vendor 

additions and purges, and changes to 

vendor-specific information, such as 

payment address, bank account and routing 

information, and payment type? M (p. 39) 

 
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Functional Requirements 

Payment Management Function44

Payee information maintenance process45

Yes, 

No, 

or 

N/A

Explanation

195. Does the core financial system provide the 

capability to maintain an audit trail of 

payments made to historical vendor 

information? M (p. 39) 

 

196. Does the core financial system provide the 

capability to query and report on payee 

information by user-defined criteria, such as 

payee name, payee number, and IRS Form 

1099 reporting status? M (p. 40) 

 

197. Does the core financial system provide the 

capability to activate and deactivate vendors 

that meet user-selected criteria (e.g., length 

of time with no activity)? M (p. 40) 

 

198. To support an agency’s use of CCR by 

providing the ability to import and 

automatically process data that are 

pertinent to the core financial system, does 

the system provide the capability to 

a. automatically update the mandatory 

payee information46 in existing vendor 

records to reflect the relevant changes 

contained in the daily updates provided 

by the CCR via extract files; 

b. accommodate the data definitions (e.g., 

data types, field names, and field 

lengths) used in CCR for all fields that 

are common in both the CCR and the 

core vendor file; 

c. prevent users’ from manually updating 

the data fields47 that relate to vendors 

that are required to register in the CCR? 

M (Addendum to Core Financial 

Management System, March 31, 2004, 

p. 3 of 3) 

 

 

46The mandatory payee information is detailed in question 189. 

47The mandatory data fields are detailed in question 189. 
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Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

199. To support the payment warehousing 

process, does the core financial system 

provide the capability to record an accrued 

liability upon receipt and acceptance of 

goods and services and properly identify the 

item as a capital asset, expense, prepaid 

expense, or construction in progress? M 

(p. 40) 

 

200. Does the core financial system provide the 

capability to record "full" or "partial" receipt 

and acceptance of goods and services by 

line item? M (p. 40) 

 

201. Does the core financial system provide the 

capability to automatically update the funds 

control and budget execution balances to 

reflect changes in the status of obligations 

and expended appropriations, as well as 

changes in amounts? M (p. 40) 

 

202. Does the core financial system provide the 

capability to warehouse payment vouchers 

for future scheduling? M (p. 40) 

 

203. Does the core financial system provide the 

capability to allow a warehoused payment 

to be modified, canceled, and put on hold? 

M (p. 40) 

 

204. Does the core financial system provide the 

capability to automatically match invoices 

to obligations and receiving reports by 

document and line item? M (p. 41) 

 

 

48The payment warehousing process recognizes and records payments due to another entity in the near 

term. These payments may be due for any of several reasons, for example, as a result of receiving goods and 

services in accordance with contract terms, under a loan or grant agreement, as an advance payment for 

goods or services to be provided in the future, or as a progress payment under a construction contract. 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

205. Does the core financial system have the 

capability to provide for two-way matching 

(obligation and invoice) and three-way 

matching (obligation, receiving report, and 

receipt of invoice)? M (p. 41) 

 

206. Does the core financial system provide the 

capability to process "obligate and pay" 

transactions where payment scheduling and 

obligation occur simultaneously? M (p. 41) 

 

207. Does the core financial system provide the 

capability to reference multiple obligations 

on a single invoice document? M (p. 41) 

 

208. Does the core financial system provide the 

capability to set up recurring payments in 

the system and automatically schedule 

items (e.g., contracts or leases) for payment 

on an interval determined by the user (i.e., 

weekly, biweekly, monthly, quarterly, or a 

specified number of days)? M (p. 41) 

 

209. Does the core financial system provide the 

capability to modify recurring payment 

information for changes in agreement terms, 

amounts, frequency, and so forth? M (p. 41) 

 
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Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

210. Does the core financial system provide the 

capability to capture, store, and process the 

following information for each vendor 

invoice, for audit trail, research, and query 

purposes: 

a. invoice number; 

b. invoice date; 

c. invoice receipt date; 

d. invoice due date; 

e. invoice amount; 

f. unit price and quantity; 

g. description; 

h. discount terms, as applicable; 

i. obligating document reference(s); and 

j. vendor identification number and 

address code? M (p. 41) 

 

211. Does the core financial system provide the 

capability to edit the TIN field to ensure that 

it is a nine-digit numeric field, does not 

include dashes, and is not all zeroes? M (p. 

41) 

 

212. Does the core financial system provide the 

capability to allow for overriding for agencyspecific requirements for the TIN field? M

(p. 41) 

 

213. Does the core financial system provide the 

capability to accommodate an invoice 

number field of up to 30 characters or the 

current requirement of I TFM-6-5000, 

Administrative Accounting System 

Requirements? M (p. 41) 

 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

214. Does the core financial system provide the 

capability to determine the due date and 

amount of vendor payments in accordance 

with Title 5, Part 1315 of the C.F.R., which 

states, in part, that for agencies subject to 

prompt payment requirements, payment is 

due on one of the following dates: 

a. 30 days after the receipt of a proper 

invoice for services and nondairy 

products, 

b. 10 days after the receipt of a proper 

invoice for dairy products, 

c. the date specified in the contract, 

d. in accordance with discount terms 

when discounts are offered and taken, 

or 

e. in accordance with accelerated 

payments methods? M (p. 41) 

 

215. Does the core financial system provide the 

capability to manually override a systemcalculated payment due date? M (p. 41) 

 

216. Does the core financial system provide the 

capability to split an invoice into multiple 

payments on the appropriate due dates 

when items on the invoice have different 

due dates or discount terms? M (p. 41) 

 

217. Does the core financial system provide the 

capability to record discount terms and 

automatically determine whether taking the 

discount is economically justified as defined 

in I TFM-6-8040, Disbursements? M (p. 41) 

 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

218. Does the core financial system provide the 

capability to record additional shipping and 

other charges to adjust the payment 

amount, if they are authorized and within 

variance tolerances? M (p. 42) 

 

219. Does the core financial system provide the 

capability to record obligations, expenses, 

assets, and so forth associated with 

payments made through use of imprest 

funds, third-party drafts, and government 

credit cards? M (p. 42) 

 

220. Does the core financial system provide the 

capability to establish payables to replenish 

the imprest fund? M (p. 42) 

 

221. Does the core financial system provide the 

capability to record detailed transactions 

associated with credit card purchases? M

(p. 42) 

 

222. Does the core financial system provide the 

capability to allow users to change 

accounting classification information by line 

item for specific transactions involving 

credit card purchases? M (p. 42) 

 

223. Does the core financial system provide the 

capability to schedule payments of 

advances, prepaid expenses, loans, and 

grants, with the appropriate accounting 

entries for each? M (p. 42) 

 
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Core Financial System Requirements 

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Page 64 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

224. Does the core financial system provide the 

capability to establish payables and make 

payments on behalf of another agency, 

citing the other agency’s funding 

information? M (p. 42) 

 

225. For each disbursement made on behalf of 

another agency, does the core financial 

system have the capability to provide the 

information required49 by central agency 

systems50 to the appropriate central agency 

system? M (p. 42) 

 

226. Does the core financial system provide the 

capability to record expense or assets when 

goods have been received, or services have 

been performed, for items that were funded 

by advances, prepaid expenses, and grants 

as well as make the appropriate 

liquidations? M (p. 42) 

 

227. Does the core financial system provide the 

capability to verify funds availability and to 

automatically update funds control account 

balances, table balances, or both to reflect 

obligation changes? M (p. 42) 

 

228. Does the core financial system provide the 

capability to indicate if a payment is 

“partial” or “final”? M (p. 42) 

 

229. If payment is final, does the core financial 

system provide the capability to 

automatically deobligate any unliquidated 

balances? M (p. 42) 

 

 

49For example, purchase order number or reimbursable agreement number and the ALC. 

50For example, Online Payment and Collection System or Intra-governmental Payment and Collection 

System. 
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Core Financial System Requirements 

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Page 65 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Payment Management Function 

Payment warehousing process48

Yes, 

No, 

or 

N/A

Explanation

230. Does the core financial system provide the 

capability to automatically generate a 

payment voucher if the purchase order 

matches the receiver information, and 

provide this option as a function of the 

matching process? V (p. 42) 

 

231. Does the core financial system provide the 

capability to use the fast payment clause 

indicator on the obligating document to 

determine whether an accelerated payment 

is to be made? V (p. 42) 

 

232. Does the core financial system provide the 

capability to compare discount terms on the 

invoice with discount terms on the related 

obligating document? V (p. 42) 

 

233. In comparing discount terms on the invoice 

with discount terms on the related 

obligating document, does the core financial 

system provide the capability to notify the 

user when differences are identified? V (p. 

42) 

 

234. Does the core financial system have the 

capability to provide a system-generated 

letter or e-mail to the vendor stating the 

reason for rejection or "notice of intent to 

disallow" an invoice within 7 days of receipt 

of invoice? V (p. 42) 

 
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Core Financial System Requirements 

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Page 66 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

235. To support the payment execution process, 

does the core financial system provide the 

capability to automatically identify and 

select payments to be disbursed in a 

particular payment cycle based on their due 

dates? M (p. 43) 

 

236. Does the core financial system have the 

capability to provide for online review and 

certification by an authorized certifying 

officer? M (p. 43) 

 

237. Does the core financial system provide the 

capability to automatically compute 

amounts to be disbursed, including 

discounts, interest, and penalties, in 

accordance with Title 5, Part 1315, of the 

C.F.R.? M (p. 43) 

 

238. Does the core financial system provide the 

capability to generate the appropriate 

transactions to reflect the payment 

deductions and additions? M (p. 43) 

 

239. Does the core financial system provide the 

capability to automatically apply interest 

and discounts across multiple accounting 

lines on an invoice in the same rule used to 

apply the original payment? M (p. 43) 

 

240. Does the core financial system provide the 

capability to apply the appropriate Treasury 

interest rate tables (e.g., prompt pay rate 

and current value of funds rate)? M (p. 43) 

 

241. Does the core financial system provide the 

capability to capture prompt payment 

information required by Title 5, Part 1315, of 

the C.F.R., including discounts taken, 

discounts lost, and interest paid? M (p. 43) 

 

 

51The payment execution process supports activities required to make a payment that was warehoused or to 

record a payment made by another system. 
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Core Financial System Requirements 

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Page 67 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

242. Does the core financial system provide the 

capability to automatically include relevant 

identification information on each 

remittance, including 

a. vendor invoice number(s); 

b. obligating document number or other 

reference number; and 

c. discount, interest, and offset amounts, 

as applicable? M (p. 43) 

 

243. Does the core financial system provide the 

capability to record user comments for each 

voucher/invoice? M (p. 43) 

 

244. Does the core financial system have the 

capability to provide for up to 9,999 line 

items per invoice? M (p. 43) 

 

245. Does the core financial system provide the 

capability to record reason codes for 

returned and adjusted invoices, lost 

discounts, and late payments? M (p. 43) 

 

246. Does the core financial system provide the 

capability to track the status of invoices in 

the payment process, including those that 

were not accepted and returned to the 

vendor and those that are awaiting 

administrative approval? M (p. 43) 

 

247. Does the core financial system provide the 

capability to maintain the time and aging of 

approvals in relation to payments? M (p. 43) 

 

248. Does the core financial system have the 

capability to provide for various forms of 

payment to be used (i.e., check or EFT)?52 M

(p. 43) 

 

 

52An EFT could occur via Automated Clearing House or wire, for example. 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

249. Does the core financial system provide the 

capability to capture, store, and process 

information needed to create EFT payments 

in accordance with Treasury standards, 

including the following: 

a. American Bankers Association 

Routing Transit Number (RTN), 

b. recipient bank account number, and 

c. bank account type (checking or 

savings)? M (p. 43) 

 

250. In processing information needed to create 

EFT payments in accordance with Treasury 

standards, does the core financial system 

also provide the capability to identify 

employees versus companies to ensure use 

of correct Automated Clearing House (ACH) 

formats? M (p. 43) 

 

251. Does the core financial system provide the 

capability to generate ACH payments in the 

following formats: 

a. corporate trade exchange (CTX) (820 

or Flat File), 

b. cash concentration or disbursement 

(CCD), 

c. cash concentration or disbursement 

plus addendum (CCD+), 

d. prearranged payment and deposit 

(PPD), and 

e. prearranged payment and deposit plus 

addendum (PPD+)? M (p. 43) 

 

252. Does the core financial system provide the 

capability to ensure that employee ACH 

payments are generated only as PPD or 

PPD+ payments? M (p. 44) 

 
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Page 69 GAO-04-763G – Core Financial System Requirements Checklist – Exposure Draft (07/04) 

Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

253. Does the core financial system provide the 

capability to ensure that vendor ACH 

payments are generated only as CCD, CCD+, 

or CTX formats? M (p. 44) 

 

254. Does the core financial system provide the 

capability to prohibit the creation of an ACH 

payment in any format (PPD, PPD+, CCD+, 

or CTX) that does not contain a RTN and an 

account number? M (p. 44) 

 

255. Does the core financial system provide the 

capability to consolidate multiple payments 

to a single payee in accordance with TFM 

prescribed limitations?53 M (p. 44) 

 

256. Does the core financial system provide the 

capability to itemize all payments covered 

by the one check or EFT (CTX only), while 

allowing for separate checks to a payee? M

(p. 44) 

 

257. Does the core financial system provide the 

capability to create check files and EFT 

payment files in all formats54 using different 

media? 55 M (p. 44) 

 

258. Does the core financial system provide the 

following edits on the RTN field: 

a. prohibition of fewer or more than nine 

characters, 

b. allowance for only numeric 

characters, and 

c. prohibition of the entry of all zeroes in 

this field? M (p. 44) 

 

 

53Currently, TFM prescribed limitations are up to 14 lines of 55 characters each for check payment and up to 

9,999 lines of 80 characters each for CTX payment. 

54CTX (820 or Flat File), CCD, CCD+, PPD, and PPD+. 

55The various media include telecommunications, tape, direct entry to Electronic Certification System 

(ECS), and third-party upload through ECS. 
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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

259. Does the core financial system provide the 

capability to edit RTNs against the data 

supplied in the financial organization master 

file (or other verified update file) to ensure 

the validity of the check digit (Modulus 10 

check)? M (p. 44) 

 

260. Does the core financial system provide the 

capability to edit the invoice number field to 

ensure it is populated? M (p. 44) 

 

261. Does the core financial system provide the 

capability to prohibit the generation of a 

(vendor) payment that does not contain 

properly structured remittance information 

on the addendum? M (p. 44) 

 

262. Does the core financial system provide the 

capability to generate multiple payments 

using the same invoice number to 

accommodate utility and 

telecommunication companies’ use of an 

account number as a recurring invoice 

number? M (p. 44) 

 

263. Does the core financial system provide the 

capability to edit the ALC field to ensure it is 

an eight-digit numeric field, and does it 

allow for override?56 M (p. 44) 

 

264. Does the core financial system provide the 

capability to create one check file 

regardless of payee type, be it employee or 

vendor? M (p. 44) 

 

265. Does the core financial system provide the 

capability to combine payment files from 

multiple ALCs into a single file for 

transmission to Treasury? M (p. 44) 

 

 

56For example, by agencies that have their own disbursing authority. 
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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

266. Does the core financial system provide the 

capability to provide summary totals (i.e., 

items and dollars) by ALC and for the entire 

file for certification purposes? M (p. 44) 

 

267. Does the core financial system provide the 

capability to make CTX payments using a 

separate file? M (p. 44) 

 

268. Does the core financial system provide the 

capability to balance CTX payment 

transactions (i.e., the sum of all the 

remittance records must equal the 

transaction total)? M (p. 44) 

 

269. For CTX payment transactions, does the 

core financial system provide the capability 

for the file to include a valid settlement date 

(i.e., next business day or later)? M (p. 44) 

 

270. For CTX payment transactions, does the 

core financial system provide the capability 

for the file to accommodate the inclusion of 

credit memorandums? M (p. 44) 

 

271. Does the core financial system provide the 

capability to schedule and disburse U.S. 

dollar payments (SF 1166) through 

Treasury’s Electronic Certification System 

(ECS)? M (p. 44) 

 

272. For U.S. dollar payments through the 

Treasury’s ECS, does the core financial 

system provide the capability to limit each 

schedule to 60 payments and each ECS 

terminal to 100 schedules per day? M (p. 44) 

 

273. Does the core financial system provide the 

capability to process payment transactions 

from other systems, such as payroll and 

travel? M (p. 45) 

 
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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

274. Does the core financial system provide the 

capability to identify whether a 

disbursement has already been made and 

record the appropriate accounting entries? 

M (p. 45) 

 

275. Does the core financial system provide the 

capability to schedule those disbursements 

not already made for payment through the 

core financial system? M (p. 45) 

 

276. Does the core financial system provide the 

capability to automatically generate 

transactions to reflect disbursement activity 

initiated by other agencies and recorded in 

central agency electronic systems (such as 

the On-line Payment and Collection System 

and the Intra-governmental Payment and 

Collection System (IPAC)? M (p. 45) 

 

277. Does the core financial system provide the 

capability to capture related information57

required by the central agency system for 

each transaction? M (p. 45) 

 

278. Does the core financial system provide the 

capability to flag vouchers selected for 

payment that will disburse a fund into a 

negative cash position?58 M (p. 45) 

 

279. Does the core financial system provide the 

capability to process credit memorandums 

for returned goods or other adjustments? M 

(p. 45) 

 

280. Does the core financial system provide the 

capability to apply the credit to the specific 

obligation that resulted in the credit, 

reducing the expenditure attributed to that 

obligation? M (p. 45) 

 

 

57For example, purchase order number, reimbursable agreement number, and ALC. 

58Reimbursable work can result in this type of transaction with appropriate authority. 
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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

281. If a credit is not fully liquidated by one 

payment, does the core financial system 

provide the capability to maintain the 

balance of the credit (e.g., as an account 

receivable) for application against a future 

payment? M (p. 45) 

 

282. Does the core financial system provide the 

capability to create the appropriate notice 

to the vendor that a credit has been applied 

to the affected payment? M (p. 45) 

 

283. Does the core financial system provide the 

capability to apply credits against 

subsequent disbursements to the same 

vendor regardless of the funding source? M 

(p. 45) 

 

284. Does the core financial system provide the 

capability to allow for the exclusion of 

payments from agency offset based on userdefined criteria, including funding source, 

object class, vendor type, and vendor 

number? M (p. 45) 

 

285. Does the core financial system provide the 

capability to provide, generate, and maintain 

a sequential numbering system for 

scheduling payments to the disbursing 

office? M (p. 45) 

 

286. Does the core financial system provide the 

capability to assign different schedule 

number ranges for different payment types, 

such as travel schedules, transportation 

schedules, payroll schedules, and vendor 

schedules? M (p. 45) 

 

287. Does the core financial system provide the 

capability to require each payment schedule 

number to be unique? M (p. 45) 

 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

288. Does the core financial system provide the 

capability to report totals by TAS/TAFS on 

each payment schedule/file? M (p. 45) 

 

289. Does the core financial system provide the 

capability to cancel an entire payment 

schedule, or a single payment within a 

payment schedule, prior to transmission to 

Treasury; allow for reversal of an entire 

schedule in a single, interactive action; and 

perform the appropriate accounting 

reversals? M (p. 45) 

 

290. Does the core financial system provide the 

capability to cancel an entire payment 

schedule prior to actual disbursement by or 

upon rejection by Treasury; allow for 

reversal of an entire schedule in a single, 

interactive action; and perform the 

appropriate accounting reversals? M (p. 45) 

 

291. When consolidating multiple payments to a 

single payee, does the core financial system 

provide the capability to include the 

TAS/TAFS associated with each payment in 

the payment file? V (p. 45) 

 

292. When combining payment files for multiple 

ALCs into a single file for transmission to 

Treasury, does the core financial system 

provide the capability to provide summary 

totals by TAS/TAFS? V (p. 45) 

 
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Functional Requirements 

Payment Management Function 

Payment execution process51

Yes, 

No, 

or 

N/A

Explanation

293. Does the core financial system provide the 

capability to provide National Automated 

Clearing House Association payment 

formats for non-Treasury disbursing offices? 

V (p. 46) 

 

294. Does the core financial system provide the 

capability to split a single payment into 

separate bank accounts?59 V (p. 46) 

 

295. Does the core financial system have the 

capability to provide statistical sampling 

capabilities to support agency payment 

certification? V (p. 46) 

 

296. Does the core financial system provide the 

capability to identify and report payment 

and deposit amounts at a level of detail 

suitable for reporting large-dollar 

notifications, as described in I TFM-6-8500, 

Cash Forecasting Requirements? V (p. 46) 

 

 

59For example, when making benefit payments to recipients. 
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Functional Requirements 

Payment Management Function 

Payment confirmation and follow-up 

process60

Yes, 

No, 

or 

N/A

Explanation

297. To support the payment confirmation and 

follow-up process, does the core financial 

system have the capability to provide 

information about each payment to reflect 

the stage of the scheduling process that the 

payment has reached and the date each step 

was reached for the following processing 

steps: 

a. payment scheduled, 

b. schedule sent to appropriate 

disbursing office, and 

c. payment issued by appropriate 

disbursing office? M (p. 46) 

 

 

60The payment confirmation and follow-up process confirms that disbursements were made as anticipated 

and supports inquiries from vendors regarding payments and reporting requirements relating to the 

payment management function. 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment confirmation and follow-up 

process60

Yes, 

No, 

or 

N/A

Explanation

298. For each payment made, does the core 

financial system provide the capability to 

maintain a history of the following 

information: 

a. vendor invoice number; 

b. invoice amount; 

c. vendor identification number; 

d. vendor name; 

e. payment address or banking 

information; 

f. payment amount; 

g. interest paid, when applicable; 

h. discount taken, when applicable; 

i. offset made, when applicable; 

j. payment method, such as check or 

EFT; 

k. referenced obligation number; and 

l. appropriation charged? M (p. 46) 

 

299. Does the core financial system provide the 

capability to automatically update the 

payment information when confirmation is 

received from the disbursing office, 

including the paid schedule number, 

payment date, and check number or trace 

number? M (p. 46) 

 

300. Does the core financial system provide the 

capability to automatically liquidate the intransit amount and reclassify budgetary 

accounts from unpaid to paid when the 

payment confirmation updates the system? 

M (p. 47) 

 
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Functional Requirements 

Payment Management Function 

Payment confirmation and follow-up 

process60

Yes, 

No, 

or 

N/A

Explanation

301. Does the core financial system provide the 

capability to record more than one check 

range for a payment schedule, along with a 

break in check numbers? M (p. 47) 

 

302. Does the core financial system have the 

capability to provide online access to 

vendor and payment information? M (p. 47) 

 

303. Does the core financial system have the 

capability to provide online access to open 

documents based on agency selection 

criteria, including the accounting 

classification elements, document number, 

and vendor number? M (p. 47) 

 

304. Does the core financial system provide the 

capability to reverse disbursement 

transactions for voided checks or for other 

payments that have not been negotiated? M 

(p. 47) 

 

305. Does the core financial system provide the 

capability to produce IRS Forms 109961 in 

accordance with IRS regulations62 and 

current IRS acceptable format, including 

hard copy and electronic form? M (p. 47) 

 

306. Does the core financial system provide the 

capability to electronically download 

monthly “Fund Balance with Treasury” and 

activity recorded by Treasury (and related 

warrant information) for comparison to 

cash activity in the agency’s general ledger, 

and can the system produce a report of 

differences? M (p. 47) 

 

 

61Such as IRS Form 1099-INT, Form 1099-MISC, Form 1099-C, and Form 1099-G. 

62For example, when payment to a sole proprietor for services performed (not including cost of 

merchandise) exceeds a specified dollar amount (e.g., $600), the system would produce a Form 1099-MISC. 
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Core Financial System Requirements 

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Functional Requirements 

Payment Management Function 

Payment confirmation and follow-up 

process60

Yes, 

No, 

or 

N/A

Explanation

307. Does the core financial system provide the 

capability to include the TAS/TAFS charged 

and the associated amount(s) in the history 

of each payment made by the core financial 

system? V (p. 47) 

 

308. Does the core financial system have the 

capability to provide an automated interface 

to the Department of the Treasury system 

containing paid schedule data?63 V (p. 47) 

 

309. Does the core financial system have the 

capability to provide written notification to 

payees (e.g., vendors and travelers) of 

payments made by disbursing offices? V (p. 

47) 

 

310. Does the core financial system provide the 

capability to allow for agency flexibility in 

defining the contents of the notifications? V 

(p. 47) 

 

311. Does the core financial system have the 

capability to provide e-mail notification to 

employees of travel payments made by 

disbursing office? V (p. 47) 

 

312. Does the core financial system provide the 

capability to track and report on aged, 

unmatched vendor invoices? V (p. 47) 

 

313. Does the core financial system provide the 

capability to track and report on spending 

agencywide by state and congressional 

district? V (p. 47) 

 

 

63That is, the Government On-line Accounting Link System Regional Finance Center Agency Link or its 

successor. 
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Functional Requirements 

Receivable Management Function64

Customer information maintenance process65

Yes, 

No, 

or 

N/A

Explanation

314. To support the customer information 

maintenance process, does the core 

financial system provide the capability to 

maintain customer information to support 

receivable management processes, 

including, at a minimum the following: 

a. customer name, 

b. customer ID number, 

c. customer type (federal agency, 

state/local government, commercial 

entity, individual, or employee), 

d. TIN, 

e. customer address, 

f. contact names, 

g. contact telephone number, 

h. federal versus nonfederal indicator, 

(continued) 

 

 

64Receivables are established to account for amounts due from others as the result of performance of 

services by the agency, delivery of goods sold, the passage of time (e.g., interest earned); loans made to 

others that must be repaid; or other actions. Receivables are accounted for as assets until funds are 

collected or are determined to be uncollectible in whole or in part. Additionally, some receipts may be 

collected without the prior establishment of a receivable, as in the case of goods sold for cash. Depending 

on an agency’s system architecture, servicing and collection activities for some receivables may be 

supported by other systems that provide data to the core financial system. This would be particularly 

appropriate for receivables resulting from large programs with complex supporting data requirements, such 

as loan programs, grant programs, or fee-for-service programs. Servicing and collection for receivables with 

simpler requirements for supporting data, such as those resulting from erroneous payments, may be 

supported directly by the core financial system with no support by other systems. 

65The word “customer” is used here to include any entity that owes a debt to the agency, including 

contractors, employees, grantees, loan recipients, and other government agencies. Agency payees, or 

vendors, as defined in the payment management function section, may become customers of the agency, in 

the event that duplicate or overpayments occur. The customer information maintenance process involves 

the maintenance of customer information (name, address, etc.), identification of the type of customer from 

which collection is due, and the recording of trading partner codes used in the elimination of 

intragovernmental activity from financial statements. The process ensures that customer TINs are captured 

in order to report overdue receivables for potential offset and to provide for IRS Form 1099 reporting of 

debts written off. 
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Functional Requirements 

Receivable Management Function64

Customer information maintenance process65

Yes, 

No, 

or 

N/A

Explanation

i. six-digit trading partner codes, 

j. ALC number (for federal customers), 

k. IRS Form 1099 indicator, 

l. comment field, 

m. date of last update, 

n. user ID of last update, and 

o. DUNS number? M (p. 49) 

315. Does the core financial system provide the 

capability to maintain customer account 

information for audit trail purposes and to 

support billing, reporting, and research 

activities, including the following: 

a. account number; 

b. account balance; 

c. associated customer ID number; 

d. date due and age of accounts 

receivable; and 

e. reimbursable order number, travel 

order number, and so forth, where 

applicable? M (p. 49) 

 
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Core Financial System Requirements 

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Functional Requirements 

Receivable Management Function 

Receivable establishment process66

Yes, 

No, 

or 

N/A

Explanation

316. To support the receivable establishment 

process, does the core financial system 

provide the capability to record the 

establishment of receivables along with the 

corresponding revenues, expense 

reductions, or other offsets? M (p. 50) 

 

317. Does the core financial system provide the 

capability to accept transactions that 

generate receivables from other systems in a 

standard format for entry into the core 

financial system? M (p. 50) 

 

318. Does the core financial system provide the 

capability to support the calculation and 

establishment of accounts receivable based 

upon billing source, event and time period, 

and type of claim? M (p. 50) 

 

319. Does the core financial system provide the 

capability to automatically generate related 

bills67 to customers? M (p. 50) 

 

320. Does the core financial system provide the 

capability to establish receivables and credit 

memorandums from vendors to which the 

agency has made duplicate or erroneous 

payments? M (p. 50) 

 

321. Does the core financial system provide the 

capability to uniquely identify multiple types 

of bills (e.g., overpayment and user-feebased) and the supporting data used to 

verify the specific charges? M (p. 50) 

 

 

66The receivable establishment process supports activities to record receivables in the system as they are 

recognized and to produce bills for amounts due to the agency. 

67Bases used for billing may include (1) percentage of reimbursable obligations, accrued expenditures, or 

costs, using data recorded by the cost accumulation function; (2) fee schedules for goods or services 

provided; and (3) payment schedules or other agreements with other entities. 
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Functional Requirements 

Receivable Management Function 

Receivable establishment process66

Yes, 

No, 

or 

N/A

Explanation

322. Does the core financial system provide the 

capability to automatically establish 

receivables to be paid under installment 

plans, including plans for which payments 

have been rescheduled? M (p. 50) 

 

323. Does the core financial system provide the 

capability to generate flexible repayment 

schedules for delinquent indebtedness? M 

(p. 50) 

 

324. Does the core financial system provide the 

capability to record billings and collections 

by line item in order to identify unique 

accounting classification codes? M (p. 50) 

 

325. Does the core financial system provide the 

capability to support bills and collections 

between federal agencies through the use of 

electronic systems, such as IPAC? M (p. 50) 

 

326. Does the core financial system have the 

capability to provide supporting data to 

agencies billed that can be used to verify the 

charges? M (p. 50) 

 

327. Does the core financial system provide the 

capability to print bills, accommodating the 

generation of standard forms, such as SF1080s or SF-1081s, and turnaround 

documents to be used as remittance advice? 

M (p. 50) 

 

328. Does the core financial system provide the 

capability to allow for customized text in 

generated billing documents? M (p. 50) 

 

329. Does the core financial system provide the 

capability to date the bills with the systemgenerated date or with the date supplied by 

the user? M (p. 50) 

 
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Functional Requirements 

Receivable Management Function 

Receivable establishment process66

Yes, 

No, 

or 

N/A

Explanation

330. Does the core financial system provide the 

capability to consolidate multiple accounts 

receivable for a customer onto one bill? M 

(p. 50) 

 

331. Does the core financial system provide the 

capability to allow transactions related to 

manually prepared bills to be entered by 

authorized personnel? M (p. 51) 

 

332. Does the core financial system provide the 

capability to record adjustments to bills and 

post to customer accounts? M (p. 51) 

 

333. Does the core financial system provide the 

capability to generate monthly statements to 

customers showing account activity? M (p. 

51) 

 
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Core Financial System Requirements 

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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

334. To support the debt management process, 

does the core financial system provide the 

capability to maintain data on individual 

receivables and referenced transactions 

supporting the receivable? M (p. 51) 

 

335. Does the core financial system provide the 

capability to maintain accounts for 

reimbursable orders and identify 

government and nongovernment accounts 

that are designated as advance funding? M 

(p. 51) 

 

336. Does the core financial system provide the 

capability to update each customer account 

when 

a. billing documents are generated; 

b. collections are received; 

c. interest, penalty, or administrative 

fees are applied; and 

d. amounts are written off or offset? M 

(p. 51) 

 

337. Does the core financial system provide the 

capability to automatically calculate interest 

charges using the appropriate Treasury late 

payment charge rate and user-defined 

criteria, such as customer and customer 

type? M (p. 51) 

 

338. Does the core financial system provide the 

capability to automatically generate a 

separate line item for interest charges on 

the customer bill? M (p. 51) 

 

 

68The debt management process involves the maintenance of account information on individual accounts 

receivable. The process supports activities to age receivables, calculate interest and record penalties and 

administrative charges on overdue debt, pursue collection of amounts due, liquidate receivables, record 

adjustments to receivables, maintain a proper allowance for uncollectible amounts, and record write-offs. 
_____________________________________________________________________________ 

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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

339. Does the core financial system provide the 

capability to allow the user to specify 

administrative and penalty amounts and 

record these amounts to different 

accounting classification elements, for 

which the principle amount is recorded? M 

(p. 51) 

 

340. Does the core financial system provide the 

capability to automatically apply these 

charges to customer accounts and generate 

separate line items for the charges on the 

customer bills? M (p. 51) 

 

341. Does the core financial system provide the 

capability to automatically generate dunning 

(collection) letters for overdue receivables 

when accounts become delinquent, and 

incorporate, as appropriate, due process 

notices for referring delinquent accounts? M 

(p. 51) 

 

342. Does the core financial system provide the 

capability to customize the dunning process 

parameters and dunning letter text? M (p. 

51) 

 

343. Does the core financial system provide the 

capability to provide information on the age 

of receivables to allow for management and 

prioritization of collection activities? M (p. 

51) 

 

344. For receivables aging, does the core 

financial system provide the capability to 

include aging information on individual 

receivables and on a summary basis, such as 

by customer, type of customer, fund, and 

general ledger account? M (pp. 51 & 52) 

 
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Core Financial System Requirements 

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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

345. Does the core financial system provide the 

capability to identify and report receivables 

that meet predetermined criteria for writeoff or referral and generate the appropriate 

entries? M (p. 52) 

 

346. Does the core financial system provide the 

capability to automatically calculate (as a 

percentage of gross receivables or related 

revenues) and record the allowance for loss 

on accounts receivable? M (p. 52) 

 

347. Does the core financial system have the 

capability to provide information to allow 

for the automated reporting of delinquent 

accounts to commercial credit bureaus? M 

(p. 52) 

 

348. Does the core financial system provide the 

capability to automatically create files of 

delinquent accounts for electronic 

submission to collection agencies and 

appropriate governmental organizations? M 

(p. 52) 

 

349. Does the core financial system provide the 

capability to maintain data for receivables 

referred to other federal agencies and 

outside organizations for collection? M 

(p. 52) 

 

350. Does the core financial system provide the 

capability to record the waiver and write-off 

of receivables, including interest, penalties, 

and administrative charges? M (p. 52) 

 

351. Does the core financial system provide the 

capability to maintain data to monitor 

closed accounts? M (p. 52) 

 
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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

352. Does the core financial system provide the 

capability to track and report on the date 

and nature of a change in the status of an 

account receivable, including the following: 

a. in forbearance or in formal appeals 

process, 

b. in foreclosure, 

c. in wage garnishment, 

d. rescheduled, 

e. waived/unwaived, 

f. eligible for referral to Treasury for 

offset, 

g. referred to Treasury for offset, 

h. eligible for internal offset, 

i. eligible for referral to Treasury or a 

designated debt collection enter for 

cross-servicing, 

j. referred to Treasury for crossservicing, 

k. referred to a private collection 

agency, 

l. referred to the Department of Justice, 

m. offset, 

n. suspended, 

o. compromised, 

p. written-off, and 

q. closed out? M (p. 52) 

 
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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

353. Does the core financial system provide the 

capability to perform online queries of 

account activity (billing, collection, and 

adjustment) by customer and receivable? M 

(p. 52) 

 

354. Does the core financial system provide the 

capability to perform online queries of 

miscellaneous cash receipts (applied to any 

Treasury fund symbol) by customer, when 

identified, and by accounting period? M (p. 

52) 

 

355. Does the core financial system provide the 

capability to uniquely record, classify, and 

report on reimbursable funds, based on 

customer and customer agreement number, 

including 

a. billing limit, 

b. amount obligated, 

c. amount expended, 

d. amount billed, 

e. advanced amount (unearned 

revenue), and 

f. earnings and collections received? M 

(pp. 52 & 53) 

 

356. Does the core financial system provide the 

capability to support the ability to query and 

report on the items referred to in the 

previous question by any of the accounting 

classification elements, such as fund or 

object class? M (p. 53) 

 
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Functional Requirements 

Receivable Management Function 

Debt management process68

Yes, 

No, 

or 

N/A

Explanation

357. Does the core financial system provide the 

capability to automatically produce IRS 

Form 1099-Cs in the amounts of debts 

forgiven that meet or exceed a user-defined 

dollar threshold?69 M (p. 53) 

 

 

69For example, $600 or more. 
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Functional Requirements 

Receivable Management Function 

Collection process70

Yes, 

No, 

or 

N/A

Explanation

358. To support the collections process, does the 

core financial system provide the capability 

to automatically record the application of 

complete and partial payments made by the 

debtor on a delinquent debt to 

administrative fees, penalties, interest, and 

then to principal, unless otherwise stated in 

program statute? M (p. 53) 

 

359. Does the core financial system provide the 

capability to record revenues, expenditure 

reductions, or other appropriate offsets 

associated with collections for which no 

receivable was previously established? M 

(p. 53) 

 

360. Does the core financial system provide the 

capability to apply collections71 back to the 

specific contract or purchase order award 

to reduce cumulative payments and 

expenditures? M (p. 53) 

 

361. Does the core financial system provide the 

capability to record the receipt of an 

advance repayment and an advance from 

others with a reference to the related 

reimbursable agreement obligation, 

regardless of whether an account receivable 

was previously established? M (p. 53) 

 

362. Does the core financial system provide the 

capability to process cash or credit card 

collections? M (p. 53) 

 

363. Does the core financial system provide the 

capability to match collections to the 

appropriate receivables and update related 

bills and customer accounts? M (p. 53) 

 

 

70The collections process supports activities to record the receipt of funds either by currency (e.g., cash or 

EFT) or check and the deposit of such funds in accordance with Treasury and agency regulations. The 

process also provides for the receipt of payment offset information from Treasury and its application to the 

appropriate accounts receivable. 

71For example, upon the refund of erroneous payments. 
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Functional Requirements 

Receivable Management Function 

Collection process70

Yes, 

No, 

or 

N/A

Explanation

364. Does the core financial system provide the 

capability to record information associated 

with a collection at the time funds are 

applied to an open receivable document, 

including the deposit ticket number and 

date and ALC? M (p. 53) 

 

365. Does the core financial system provide the 

capability to support the receipt of 

collection files from banks for application to 

open receivables? M (p. 53) 

 

366. Does the core financial system provide the 

capability to record collections received 

against advance payments made? M (p. 53) 

 

367. Does the core financial system provide the 

capability to apply collections to more than 

one receivable? M (p. 53) 

 

368. Does the core financial system provide the 

capability to reopen closed accounts to 

record collections after a waiver or write-off 

of a receivable has been recorded? M (p. 53) 

 

369. Does the core financial system provide the 

capability to electronically download 

monthly deposit and debit voucher 

confirmation information from Treasury and 

the banking system for comparison to 

activity in the agency’s general ledger, and 

produce a report of differences? M (p. 54) 

 

370. Does the core financial system provide the 

capability to support the receipt of payment 

offset information from Treasury? M (p. 54) 

 
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Core Financial System Requirements 

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Functional Requirements 

Receivable Management Function 

Collection process70

Yes, 

No, 

or 

N/A

Explanation

371. Does the core financial system provide the 

capability to apply offset collections to open 

receivables and generate the appropriate 

accounting entries to record the collection? 

M (p. 54) 

 

372. Does the core financial system have the 

capability to automatically offset payments 

to vendors for amounts due to the agency?72

M (p. 54) 

 

373. When an entire payment is offset, does the 

core financial system provide the capability 

to create the appropriate notice to the 

vendor that the offset has been made? M (p. 

54) 

 

374. Does the core financial system provide the 

capability to record TAS/TAFS(s) associated 

with collections received on deposit tickets 

and debit vouchers? V (p. 54) 

 

375. When downloading monthly deposit and 

debit voucher confirmation information 

from Treasury and the banking system for 

comparison to the agency general ledger, 

does the core financial system provide the 

capability to include both the TAS/TAFS(s) 

and the associated amount(s)? V (p. 54) 

 

376. Does the core financial system provide the 

capability to interface with CA$HLINK,73 in 

order to reconcile Treasury recorded 

collections to the collections recorded in 

the core financial system and generate 

exception reports? V (p. 54) 

 

 

72For example, outstanding accounts receivable, credit memorandum, and open advances. 

73A Treasury system used to manage and monitor the collection of government revenues and report the 

balances to federal agencies. 
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Functional Requirements 

Cost Management Function74

Cost setup and accumulation process75

Yes, 

No, 

or 

N/A

Explanation

377. To support the cost setup and accumulation 

process, does the core financial system 

provide the capability to use the agency’s 

accounting classification elements to 

identify and establish unique cost objects 

for the purpose of cost and revenue capture, 

accumulation, and reporting? M (p. 56) 

 

378. Does the core financial system provide the 

capability to allocate and distribute the full 

cost76 and revenue of cost objects as defined 

in Statement of Federal Financial 

Accounting Standard (SFFAS) No. 4? M (p. 

56) 

 

379. Does the core financial system provide the 

capability to allocate and distribute the full 

cost of goods and services provided by one 

federal entity to another? M (p. 56) 

 

380. Does the core financial system provide the 

capability to track current cost information 

against prior month and prior year-to-date 

cost data for selected cost objects as well as 

to track progress against predetermined 

plans? M (p. 56) 

 

 

74The level of sophistication of the cost management function needed by an agency depends on the 

requirements of the agency and the operational nature of the programs involved. For example, if an 

agency’s primary mission is to produce a product or service for sale, the costing function typically will be 

accomplished in the managerial cost accounting system that is integrated with the core financial system. 

Programs with less crucial cost information needs might perform cost management functions by analytical 

or sampling methods. However, in any core system, certain basic functions must be present. The cost 

management function consists of (1) cost setup and accumulation, (2) cost recognition, (3) cost 

distribution, and (4) working capital and revolving fund. 

75The cost setup and accumulation process identifies and tracks cost data associated with the specific cost 

objects required by management. This process provides for the establishment of identifiers for the desired 

cost objects in the processes, systems, and applications that make up the accounting system, and for the 

subsequent collection of cost data. A cost object is any activity, output, outcome, or item whose cost and 

revenue are to be measured, such as organizational units, programs, projects, activities, targeted outputs, 

specific contracts, specific customers, and work orders. 

76Full cost includes support costs provided by other responsibility segments, both internal and external; 

identifiable support costs provided by other government agencies, such as pension and other retirement 

benefits; unfunded costs, such as accrued annual leave, that accrue in the current reporting period; 

depreciation expense; and amortization costs. 
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Functional Requirements 

Cost Management Function74

Cost setup and accumulation process75

Yes, 

No, 

or 

N/A

Explanation

381. Does the core financial system provide the 

capability to identify all costs incurred by 

the agency in support of activities of 

revolving funds, trust funds, or commercial 

functions, including the applicable portions 

of any related salaries and expense 

accounts identified with those activities? M 

(p. 56) 

 

382. Does the core financial system provide the 

capability to accumulate nonfinancial data 

relating to cost objects, such as output 

units, to allow the calculation of both total 

and unit costs? M (p. 56) 

 

383. Does the core financial system provide the 

capability to transfer and trace cost data 

directly to and from other cost 

systems/applications that produce or 

allocate cost information? M (p. 56) 

 

384. Does the core financial system provide the 

capability to calculate prices, fees, and user 

charges for reimbursable agreements and 

other purposes using full cost, consistent 

with the guidance of OMB Circular No. A-25, 

User Charges? M (p. 56) 

 
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Functional Requirements 

Cost Management Function 

Cost recognition process77

Yes, 

No, 

or 

N/A

Explanation

385. To support the cost recognition process, 

does the core financial system provide the 

capability to use the accrual basis of 

accounting when recognizing costs and 

revenue? M (p. 57) 

 

386. Does the core financial system provide the 

capability to recognize costs in the period 

when the events occurred regardless of 

when ordered, received, or paid for? M (p. 

57) 

 

387. Does the core financial system provide the 

capability to recognize revenue when 

earned? M (p. 57) 

 

388. Does the core financial system provide the 

capability to associate with the appropriate 

cost objects the reductions of balances, 

such as inventories, prepaid expenses, and 

advance payments, as the balances are used 

or liquidated? M (p. 57) 

 

389. Does the core financial system provide the 

capability to identify and record costs 

incurred by each cost object, including input 

of costs from feeder systems, such as 

inventory, travel, property management 

(depreciation), or payroll? M (p. 57) 

 

390. Does the core financial system provide the 

capability to assign indirect costs on a 

cause-and-effect basis or allocate costs 

through any reasonable and consistent 

basis, such as a percentage of total cost 

incurred, direct labor hours used, square 

footage, or metered usage? M (p. 57) 

 

 

77Recognition of the effects of transactions in financial systems is fundamental to the accounting process. 

The recognition process determines when the results of an event are to be included in financial statements 

and ensures that the effects of similar events and transactions are accounted for consistently within the 

federal government. 
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Functional Requirements 

Cost Management Function 

Cost recognition process77

Yes, 

No, 

or 

N/A

Explanation

391. Does the core financial system provide the 

capability to perform multilayer overhead 

distributions that are user defined (at least 

three levels of distribution), using multiple 

rates, fixed amount, and other appropriate 

allocation methods? M (p. 57) 

 
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Core Financial System Requirements 

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Functional Requirements 

Cost Management Function 

Cost distribution process78

Yes, 

No, 

or 

N/A

Explanation

392. To support the cost distribution process, 

does the core financial system provide the 

capability to distribute information79

 on 

costs and revenue associated with cost 

objects? M (p. 58) 

 

393. Does the core financial system have the 

capability to provide consistent 

information80 on financial, budget, and 

program matters in different reports? M (p. 

58) 

 

394. Does the core financial system provide the 

capability to use historical information to 

conduct variance and time-series analyses 

and to demonstrate the fairness and 

appropriateness of rates and charges that 

are based on actual historical costs? M (p. 

58) 

 

395. Does the core financial system provide the 

capability to distribute costs to other cost 

objects regardless of how they were 

originally assigned? M (p. 58) 

 

396. Does the core financial system have the 

capability to provide an audit trail that 

traces a transaction from its origin to the 

final cost object(s)? M (p. 58) 

 

 

78The managerial cost accounting concepts and standards contained in SFFAS No. 4 are aimed at providing 

reliable and timely information on the full cost of programs, their activities, and outputs. The information is 

to be used by stakeholders, executives, and managers in making decisions about allocating resources, 

authorizing and modifying programs, and evaluating program performance. Program managers can also use 

the cost information for making managerial decisions to improve operating efficiency. Ultimately, the 

effectiveness of a cost management program lies in the way managers use the cost information asked for 

and reported to them. 

79Such as income statements and status of funds reports. 

80For example, bills generated for customers in the receivables system should match customer status 

reports generated by the cost management system for the same periods. 
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Functional Requirements 

Cost Management Function 

Working capital and revolving fund process81

Yes, 

No, 

or 

N/A

Explanation

397. To support the revolving fund function, does 

the core financial system provide the 

capability to use cost management in 

revolving funds, including working capital 

programs? M (p. 58) 

 

398. Does the core financial system provide the 

capability to allocate working capital and 

revolving fund costs across organization and 

program lines and generate appropriate 

journal entries? M (p. 58) 

 

399. Does the core financial system provide the 

capability to create and track the funding 

associated with cost objects82 and provide 

funding status on fiscal-year-to-date and 

project-inception-to-date bases? M (p. 58) 

 

400. Does the core financial system provide the 

capability to support the aggregation of 

project cost and funding information to a 

higher level?83 M (p. 58) 

 

401. Does the core financial system provide the 

capability to verify funds availability for 

orders placed against a specific contract, 

work order, or agreement for a particular 

customer of the revolving fund operation? 

M (p. 59) 

 

 

81Agencies may elect to use revolving funds, which include working capital funds and franchise funds, for 

their organizations. These funds require separate legislation and have charters that focus on specific 

purposes. Such charters have the potential to make program management much more flexible by lifting 

apportionment controls while adding operational safeguards. If an agency uses a revolving fund, the core 

financial system must be able to track service-level agreements, verify funds availability, bill customers, and 

measure costs. 

82For example, contracts, work orders, projects, or reimbursable agreements. 

83For example, the ability to link the costs of a set of related projects for a particular customer on one 

report. 
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Functional Requirements 

Cost Management Function 

Working capital and revolving fund process

Yes, 

No, 

or 

N/A

Explanation

402. Does the core financial system provide the 

capability to support funding of revolving 

fund contracts, work orders, and projects 

through the use of advances, prepayments, 

or reimbursements? M (p. 59) 

 
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Functional Requirements 

Reporting Function84

General reporting process85

Yes, 

No, 

or 

N/A

Explanation

403. To support the financial reporting process, 

does the core financial system provide the 

capability to produce reports and 

transmittable files using data maintained by 

the core financial management system? M 

(p. 60) 

 

404. Does the core financial system provide the 

capability to report on financial activity by 

any element of accounting classification?86

M (p. 60) 

 

405. Does the core financial system provide the 

capability to report the financial information 

required for program management 

performance reporting? V (p. 61) 

 

 

84Information maintained by the core financial system must be provided in a variety of formats to users 

according to their needs. Methods of providing information include online inquiries, extractable data files, 

and hard copy reports. These requirements could be satisfied by either application software that is part of 

the core financial system, generalized reporting/inquiry software that works with a variety of applications, 

or a combination of both. The reporting function consists of (1) general reporting process, (2) external 

reporting process, (3) internal reporting process, and (4) ad hoc query process. 

85Complete, reliable, consistent, timely, and useful financial management information on operations enables 

central management agencies, individual operating agencies, divisions, bureaus, and other subunits to 

(1) carry out their fiduciary responsibilities; (2) deter fraud, waste, and abuse of resources; and (3) facilitate 

efficient and effective delivery of programs by relating financial consequences to program performance. 86For example, individual or hierarchical organization code, or project code. 
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Functional Requirements 

Reporting Function 

External reporting 

Yes, 

No, 

or 

N/A

Explanation

406. To support the external reporting process, 

does the core financial system have the 

capability to provide data in hard copy and 

the electronic formats required by the 

Department of the Treasury for the 

following reports: 

a. Financial Management Service (FMS) 

Form 224, Statement of Cash 

Transactions; 

b. FMS Form 1219, Statement of 

Accountability; and 

c. FMS Form 1220, Statement of 

Transactions According to 

Appropriations, Funds, and Receipt 

Accounts? M (p. 61) 

 

407. Does the core financial system provide the 

capability to provide data in the electronic 

formats required by the Department of the 

Treasury for FACTS I and FACTS II 

reporting? M (p. 61) 

 

408. Does the core financial system provide the 

capability to produce a monthly SF-133, 

Report on Budget Execution and 

Budgetary Resources, in the hard copy and 

electronic formats required by OMB? M (p. 

61) 

 

409. Does the core financial system provide the 

capability to perform the validation edits 

specified by Treasury to ensure the 

accuracy of data transmitted for FACTS I 

and FACTS II reporting on a monthly basis, 

at a minimum?87 M (p. 61) 

 

 

87See the FACTS II Client Bulk Users Guide for examples. 
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Functional Requirements 

Reporting Function 

External reporting 

Yes, 

No, 

or 

N/A

Explanation

410. Does the core financial system provide the 

capability to automate the preparation of 

consolidated financial statements as 

required by OMB Bulletin 01-09, Form and 

Content of Agency Financial Statements? 

M (p. 61) 

 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

411. To support the internal reporting process, 

does the core financial system provide the 

capability to produce a report of 

transaction-level details for the TAS/TAFS 

totals reported on FMS Form 224, Statement 

of Cash Transactions? M (p. 62) 

 

412. For each TAS/TAFS that is subject to 

FACTS II reporting requirements, does the 

core financial system provide the capability 

to produce a daily online available funds 

report(s)? M (p. 62) 

 

413. For the available funds reporting, does the 

core financial system provide the capability 

for reporting within the following 

parameters: 

a. “internal fund,” 

b. budget object class, 

c. organization, 

d. program, 

e. project, and 

f. activity? M (p. 62) 

 

414. When reporting on funds availability at the 

internal fund level, does the core financial 

system provide the capability to report data 

on budget execution as follows, including a 

summary at the TAS/TAFS level with total 

amounts for each data element listed below: 

a. total resources (by budget fiscal year 

and by authority type, including 

warrant information) as follows: 

i. total authority brought 

forward, 

(continued) 

 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

ii. total appropriated for the 

budget fiscal year, 

iii. total contract authority, 

iv. total borrowing authority 

(realized and unrealized), 

and 

v. total estimated and total 

actual spending authority 

from offsetting collections; 

b. funding distribution, including 

i. total not yet apportioned, 

ii. total apportioned, 

iii. total allotted, and 

iv. total allowances; 

c. spending activity, including 

i. total amount of 

commitments, 

ii. total obligations (including 

paid and unpaid), and 

iii. total expenditures 

(including paid and 

unpaid); and 

d. balances available, such as 

i. balance of apportionments 

available for allotment, 

ii. balance of allowance 

available for commitment 

(uncommitted), and 

iii. balance of allowances 

available for obligation 

(unobligated)? M (p. 62) 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

415. When reporting on funds availability by 

organization, budget object class, program, 

project and activity level, does the core 

financial system provide the capability to 

report on budget execution as follows, 

including a summary at the TAS/TAFS level 

with total amounts for each data element 

listed below: 

a. funding distribution, including 

i. total not yet apportioned, 

ii. total apportioned, 

iii. total allotted, and 

iv. total allowances; 

b. spending activity, including 

i. total amount of 

commitments, 

ii. total obligations (including 

paid and unpaid), and 

iii. total expenditures 

(including paid and 

unpaid); 

c. balances available, such as 

i. balance of apportionments 

available for allotment, 

ii. balance of allowance 

available for commitment 

(uncommitted), and 

iii. balance of allowances 

available for obligation 

(unobligated)? M (p. 62) 

 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

416. Does the core financial system have the 

capability to provide online summary trial 

balances at the internal fund, organization, 

and TAS/TAFS levels? M (p. 63) 

 

417. Do the online summary trial balances 

provide the following minimum data 

elements for each general ledger account: 

a. the balance at the beginning of the 

accounting period, 

b. the total amount of debits for the 

accounting period, 

c. the total amount of credits for the 

accounting period, and 

d. the cumulative ending balance for the 

accounting period? M (p. 63) 

 

418. Does the core financial system have the 

capability to provide grand totals for 

TAS/TAFS for beginning balance, current 

period activity, and ending balance 

columns? M (p. 63) 

 

419. Does the core financial system provide the 

capability to produce both preclosing and 

postclosing trial balances at year-end? M 

(p. 63) 

 

420. Does the core financial system provide the 

capability to support FACTS I and FACTS II 

reporting and analysis by producing online 

trial balances at the internal fund, 

organization, and TAS/TAFS levels? M 

(p. 63) 

 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

421. Does the core financial system have the 

capability to produce trial balances that 

provide the related official SGL account 

number for each general ledger account? M

(p. 63) 

 

422. Does the core financial system have the 

capability to produce trial balances that 

provide the following items at the SGLattribute level88 for each general ledger 

account: 

a. the balance at the beginning of the 

accounting period, 

b. the total amount of debits for the 

current accounting period, 

c. the total amount of credits for the 

accounting period, and 

d. the cumulative ending balance for the 

accounting period? M (p. 63) 

 

423. Does the core financial system have the 

capability to provide grand totals for each 

TAS/TAFS for beginning balance, current 

period activity, and ending balance 

columns? M (p. 63) 

 

424. Does the core financial system provide the 

capability to produce both preclosing and 

postclosing trial balances at year-end? M (p. 

63) 

 

 

88That is, separate amounts whenever there is more than one attribute domain value within an SGL account. 
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Functional Requirements 

Reporting Function 

Internal reporting 

Yes, 

No, 

or 

N/A

Explanation

425. Does the core financial system have the 

capability to provide an online transaction 

register at the internal fund, organization, 

and TAS/TAFS level for each accounting 

period that provides the following data 

elements: 

a. fiscal year, 

b. TAS/TAFS, 

c. internal fund, 

d. document number, 

e. document entry date, 

f. document entry time, 

g. document entry user ID, 

h. document transaction date, 

i. debit account number, 

j. debit account object class, 

k. debit amount, 

l. credit account number, 

m. credit account, 

n. object class, 

o. SGL attribute domain headings, and 

p. SGL attribute values associated with 

the transaction? M (p. 63) 

 

426. Does the core financial system provide the 

capability for the online transaction register 

report, referred to in the previous question, 

to include all transactions occurring within 

the accounting period specified? M (p. 63) 

 
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Functional Requirements 

Reporting Function 

Ad hoc query89

Yes, 

No, 

or 

N/A

Explanation

427. To effectively support ad hoc data access, 

does the core financial system provide an 

integrated data query facility that supports 

ad hoc query access to agency financial data 

sources? M (p. 64) 

 

428. Does the core financial system provide data 

analysis reporting tools? M (p. 64) 

 

429. Does the core financial system allow users 

to create and submit parameter-based query 

scripts or to store them in a common library 

for future use? M (p. 64) 

 

430. Does the core financial system allow users 

to run queries online or in batch mode and 

to stage output for later access by 

authorized users? M (p. 64) 

 

431. Does the core financial system allow users 

to automatically distribute copies of 

report/query results via e-mail to multiple 

pre-identified individuals or groups? M 

(p. 64) 

 

432. Does the core financial system provide runtime controls to limit "runaway" queries and 

large data download requests? M (p. 64) 

 

433. Does the core financial system support 

graphical output display on the desktop? M 

(p. 64) 

 

434. Does the core financial system’s output 

display also support dynamic report 

reformatting, regrouping, and drill-down to 

detail records from summary report lines? 

M (p. 64) 

 

 

89While requirements associated with standard internal and external reporting are based on clearly defined 

financial management information needs, ad hoc query requirements are general in nature. The ability of an 

FMS package to provide for flexible data access is critical to enabling effective agency, program, and 

financial management in the face of change. 
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Functional Requirements 

Reporting Function 

Ad hoc query89

Yes, 

No, 

or 

N/A

Explanation

435. Does the core financial system allow 

authorized users to download selected 

financial data? M (p. 64) 

 

436. Is the core financial system’s download 

capability able to automatically reformat 

downloaded information for direct access 

by common desktop applications (e.g., 

ASCII formatted)? M (p. 64) 

 

437. Does the core financial system provide the 

ability to preview a report, form, or other 

query result before printing? M (p. 65) 

 

438. Does the core financial system support 

access to current year and historical 

financial data? M (p. 65) 

 

439. To provide additional ad hoc data access 

functionality, does the core financial system 

have the following ad hoc query interface 

features: 

a. graphical display of data sources; 

b. the ability to “point and click” on 

selectable table, data, and link objects 

for inclusion in a custom query; 

c. an active data dictionary to provide 

users with object definitions; 

d. the ability to share user-developed 

query scripts with other authorized 

agency users; 

e. query optimization; and 

f. online help? V (p. 65) 

 
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Technical Requirements90

General Design/Architecture 

Yes, 

No, 

or 

N/A 

Explanation

440. Is the core financial system modular in 

design? M (p. 66) 

 

441. Does the core financial system utilize opensystems architecture? M (p. 66)  

442. Is the core financial system upgradeable by 

core system module to accommodate 

changes in laws, regulations, best practices, 

and new technology? M (p. 66) 

 

443. Is the core financial system a commercially 

available product, subject to regular 

maintenance based on vendor-developed 

and scheduled software releases? M (p. 66) 

 

444. Does the core financial system include 

internal transaction processing controls, 

including the capability in the event of a 

system failure to automatically 

a. back out of incompletely processed 

transactions, 

b. restore the system to its last 

consistent state before the failure 

occurred, and 

c. reapply all incomplete transactions 

previously submitted by the user? M 

(p. 67) 

 

445. Does the core financial system enforce 

internal database consistency during all 

online and batch update operations, 

including distributed databases, if 

applicable? M (p. 67) 

 

 

90Technical requirements help ensure that a core financial system (1) is capable of meeting a wide variety of 

workload processing demands; (2) provides transaction processing integrity and general operating 

reliability; (3) uses standard procedures for installation, configuration, and operations; and (4) does not 

conflict with other administrative or program systems or other agency established IT standards. 
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Technical Requirements90

General Design/Architecture 

Yes, 

No, 

or 

N/A 

Explanation

446. Does the core financial system have fully 

documented restart capabilities for the 

application’s online and batch processing 

components? M (p. 67) 

 

447. Does the core financial system segment 

batch jobs to facilitate their recovery in the 

event of a system failure? M (p. 67) 

 

448. Does the core financial system include 

complete installation, operating, and system 

maintenance documentation covering the 

following: 

a. product installation and configuration 

steps; 

b. application access procedures; 

c. user screen layout and content; 

d. transaction entry procedures; 

e. batch job setup, processing, and 

recovery/restart procedures; 

f. error codes with full descriptions and 

recovery steps; 

g. standard report layout and content, 

h. internal processing controls; 

i. application security; 

j. operating specifications and system 

flowcharts; 

k. database entity relationships, table 

formats, and data element 

descriptions; and 

l. program module descriptions? M 

(p. 67) 

 
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Technical Requirements90

General Design/Architecture 

Yes, 

No, 

or 

N/A 

Explanation

449. Does the core financial system include 

revised documentation concurrent with the 

distribution of new software releases? M 

(p. 67) 

 

450. Does the core financial system employ 

common error handling routines across 

functional modules and present error 

messages that allow the user or system 

operator to respond to reported problems? 

M (p. 67) 

 

451. Is the agency able to customize the common 

error message text? M (p. 67) 

 

452. Does the core financial system generate 

output information to formats specified by 

functional requirements? M (p. 67) 

 

453. In cases where a functional requirement 

does not specify an output format, is the 

required information viewable using the 

application’s online user interface by 

default? M (p. 67) 

 

454. Can the agency customize the core financial 

system to meet its specific 

business/accounting needs using agencysupplied application configuration and 

operating parameters? M (p. 67) 

 

455. Does the core financial system provide 

fault-free performance in the processing of 

date and date-related data (including 

calculating, comparing, and sequencing) by 

all hardware and software products 

included as part of the application, both 

individually and in combination (i.e., year 

2000 compliance)? M (p. 67) 

 

456. Does the core financial system include an 

integrated relational, structured querylanguage-compliant database? V (p. 68) 

 
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Technical Requirements90

General Design/Architecture 

Yes, 

No, 

or 

N/A 

Explanation

457. Does the core financial system 

simultaneously process online transactions 

and transactions submitted via system 

interface? V (p. 68) 

 
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Technical Requirements 

Infrastructure 

Yes, 

No, 

or 

N/A

Explanation

458. Does the core financial system identify all 

software and hardware products needed by 

an agency to install, operate, access, and 

maintain the application, including the 

identification of distinct products that are 

intended to be purchased or licensed as part 

of the product licensing agreement?91 M (p. 

68) 

 

459. Does the core financial system utilize 

transaction control/Internet 

communications protocol for application, 

database, and workstation connectivity? M 

(p. 68) 

 

460. At a minimum, does the core financial 

system support application client operation 

on a 32-bit, Microsoft Windows-compatible 

operating system? M (p. 68) 

 

461. Does the core financial system operate in a 

mainframe environment (e.g., Multiple 

Virtual System, Operating System 390)? V 

(p. 68) 

 

462. Does the core financial system operate in a 

server-computing environment running 

under UNIX or NT (e.g., Windows Server 

2000)? V (p. 68) 

 

463. Does the core financial system support 

application client operation on an Apple 

Macintosh Windows-compatible operating 

system? V (p. 68) 

 

464. Does the core financial system support 

application client operation on a UNIX 

operating system? V (p. 68) 

 

 

91The vendor is also required to identify products needed to meet any technical and functional requirement 

that must be acquired separately by the agency. 
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Technical Requirements 

Infrastructure 

Yes, 

No, 

or 

N/A

Explanation

465. Does the core financial system support 

automated touch-tone telephone access for 

standardized, commonly requested inquiries 

(such as payment status)? V (p. 68) 

 

466. Does the core financial system support 

automated fax-back access for standardized, 

commonly requested documents (such as 

account statements)? V (p. 69) 

 

467. Does the core financial system provide the 

capability to accept barcoded documents? V 

(p. 69) 

 

468. Does the core financial system include a 

report spooling capability to enable online 

viewing, reprinting, and permanent 

archiving of requested reports? V (p. 69) 

 
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Technical Requirements 

User Interfaces92

Yes, 

No, 

or 

N/A

Explanation

469. Does the core financial system provide a 

consistent, Windows-compatible, online 

user interface to all modules and integrated 

subsystems? V (p. 69) 

 

470. Does interface consistency include the use 

of common command entry syntax, dialog 

window styles, data entry structures, and 

information presentation? V (p. 69) 

 

471. Does the core financial system incorporate 

common graphical user interface 

characteristics such as the following: 

a. mouse activated icons; 

b. buttons; 

c. scroll bars; 

d. drop-down lists; 

e. check boxes; 

f. menu bars; 

g. text boxes; 

h. tool tips; 

i. resizable windows; and 

j. cut, copy, and paste functions? V 

(p. 69) 

 

 

92Technical user interface requirements specify how agency users and operators interact with the core 

financial system. 
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Technical Requirements 

User Interfaces92

Yes, 

No, 

or 

N/A

Explanation

472. Does the core financial system incorporate 

data entry features designed to reduce the 

amount of direct keying required to initiate 

transaction processing, such as the 

following: 

a. the use of default values; 

b. look-up tables; 

c. automatic data recall; 

d. single-function windows (e.g., one 

input screen per transaction); 

e. the ability to pass common data from 

screen to screen; 

f. highlighting of required fields; 

g. auto tabs; 

h. function keys (e.g., to retrieve 

previous data, invoke help facility, 

suspend transaction, or clear screen); 

i. disabling of nonsupported function 

keys; 

j. menu mode and an expert mode of 

screen navigation; 

k. the ability to retrieve suspended 

transactions by user, document, 

vendor, and so forth; 

l. transaction entry undo/redo; 

m. context-sensitive online help; and 

n. the ability to select records from a list 

by scrolling or by typing in only part 

of an entry? V (p. 69 & 70) 

 
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Technical Requirements 

User Interfaces92

Yes, 

No, 

or 

N/A

Explanation

473. Does the core financial system support 

desktop integration with other common 

workstation applications used for word 

processing, spreadsheets, data management, 

and graphics? V (p. 70) 

 

474. Is the application help facility customizable 

by the agency? V (p. 70) 

 

475. Does the core financial system provide an 

application user interface that complies 

with the software application standards 

required by 29 U.S.C. § 794d, 93 as detailed in 

36 C.F.R. 1194, Subpart B? V (p. 70) 

 

 

93Referred to as section 508 of the Rehabilitation Act in JFMIP document. 
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Technical Requirements 

Interoperability94

Yes, 

No, 

or 

N/A

Explanation

476. To ensure that data can move effectively 

between the core financial system and other 

financial applications operated by the 

agency, does the core system include 

a. an application program interface (API) 

to accept and process financial data 

generated by external95 and other 

internal96 applications and 

b. the ability to export data required by 

governmentwide systems? M 

(Addendum to Core Financial 

Management System, March 31, 2004, p. 

3 of 3) 

 

477. Does the API support the receipt and 

continued processing of transactions for all 

core accounting components as well as 

vendor information updates? M (Addendum 

to Core Financial Management System, 

March 31, 2004, p. 3 of 3) 

 

478. Does the core financial system process APIsubmitted transactions using the same 

business rules, program logic, and edit table 

entries that are used by the application in 

editing transactions submitted online (e.g., 

via user interface)? M (p. 70) 

 

479. Does the core financial system hold APIsubmitted transactions that do not pass 

required edits in suspense pending 

appropriate corrective action by the user? M 

(p. 70) 

 

 

94Financial transactions can be originated using external, feeder applications. Typically, these feeders are 

considered legacy systems and are based on older computing technologies. 

95For example, Intragovernmental Transaction Exchange and IPAC systems. 

96For example, the financial portion of mixed program systems, electronic data interchange translators, and 

modules such as travel or payroll. 
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Technical Requirements 

Interoperability94

Yes, 

No, 

or 

N/A

Explanation

480. Does the API suspense process include the 

ability to 

a. view, update, or delete suspended 

transactions and 

b. automatically reprocess suspended 

transactions? M (p. 70) 

 

481. Does the core financial system provide 

internal controls with the API (e.g., control 

totals and record counts) to ensure the 

integrity of received and processed 

transactions? M (p. 70) 

 

482. For the API, does the core financial system 

generate transaction editing error records in 

a standard format defined by the vendor for 

return to the originating feeder 

application?97

 M (p. 70) 

 

483. Does the core financial system support 

direct electric data interchange translation 

compliant with American National 

Standards Institute X-12 standards to enable 

electronic data exchanges with designated 

trading partners, such as a bank credit card 

service provider, major supplier, or 

customer? V (p. 71) 

 

484. Does the core financial system interface 

with the agency electronic communications 

system to distribute application-generated 

documents and messages electronically to 

either intranet or Internet users? V (p. 71) 

 

485. Does the core financial system accept 

vendor invoices and other external 

originated transactions over the Internet 

(e.g., Extensible Markup Language (XML))? 

V (p. 71) 

 

 

97That is, provide two-way interface support. 
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Technical Requirements 

Interoperability94

Yes, 

No, 

or 

N/A

Explanation

486. Does the core financial system support 

emerging XML-based specifications for the 

exchange of financial data, such as 

Extensible Business Reporting Language? V 

(p. 71) 

 
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Technical Requirements 

Workflow/Messaging98

Yes, 

No, 

or 

N/A

Explanation

487. Does the core financial system provide an 

integrated workflow management 

capability, including generation and routing 

of internal forms, reports, and other 

financial documents, for online approval or 

subsequent processing? M (p. 71) 

 

488. Does the core financial system enable 

authorized users to define workflow 

processes and business rules, including 

approval levels, and to modify workflow 

(e.g., assigning a proxy approving 

authority)? V (p. 71) 

 

489. Does the core financial system provide the 

capability to establish multiple levels of 

document approvals based on user-defined 

criteria including dollar amounts, types of 

items purchased, and document types? V (p. 

71) 

 

490. Does the core financial system provide an 

internal calendar or user-defined routing 

tables to generate rule-based or exception 

reports to support the generation of 

workflow messages?99 V (p. 71) 

 

491. Does the core financial system provide the 

ability to track approvals online by 

transaction, including the time, date, and 

approving party? V (p. 71) 

 

492. Does the core financial system provide the 

capability to automatically generate 

electronic routing and status messages to 

individuals or groups? V (p. 72) 

 

 

98Workflow/messaging includes technical requirements that collectively define how a core financial system 

automatically manages document processing and notifies agency staff of pending work (e.g., 

review/approval of pending accounting documents). 

99That is, notification of accounts payable office for invoices warehoused over 30 days with no matching 

receiving report. 
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Technical Requirements 

Workflow/Messaging98

Yes, 

No, 

or 

N/A

Explanation

493. Does the core financial system support 

Workflow Management Coalition standards? 

V (p. 72) 

 

494. Does the core financial system support 

Messaging API-Workflow standards? V (p. 

72) 

 

495. Does the core financial system support 

Vendor Independent Messaging standards? 

V (p. 72) 

 
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Technical Requirements 

Document Management100

Yes, 

No, 

or 

N/A

Explanation

496. Does the core financial system support 

Document Management Alliance standards? 

V (p. 72) 

 

497. Does the core financial system support 

Open Document Management Architecture 

standards? V (p. 72) 

 

498. Does the core financial system support 

Open Document Architecture/Open 

Document Interface Format standards? V 

(p. 72) 

 

499. Does the core financial system support 

Portable Document Format standards? V 

(p. 72) 

 

500. Does the core financial system support 

Standard Generalized Markup Language 

standards? V (p. 72) 

 

501. Does the core financial system provide the 

capability to electronically image, index, 

store, and retrieve document reference 

material?101 V (p. 72) 

 

502. Does the core financial system notify the 

user of the presence of associated 

document images and allow an on-screen 

display of this material? V (p. 72) 

 

 

100Document management includes technical requirements that define how the core financial system is to 

store and retrieve electronically formatted documents. 

101For example, signed contracts, purchase orders, and vendor invoices. 
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Technical Requirements 

Internet Access102

Yes, 

No, 

or 

N/A

Explanation

503. Does the core financial system support 

secure Web browser access to all financial 

management system modules, including 

workflow-related features, for the purpose 

of entering new financial 

documents/transactions and for 

reviewing/approving their processing? V (p. 

73) 

 

504. Does the core financial system support 

secure Internet access to the integrated ad 

hoc data query facility? V (p. 73) 

 

505. Does the core financial system provide the 

capability to receive public payment 

collections via the Internet?103 V (p. 73) 

 

506. Does the core financial system support the 

use of standard public key infrastructure 

technology to control access to sensitive 

data over the Internet? V (p. 73) 

 

 

102Technical requirements relating to Internet access represent a specialized infrastructure subset. These 

requirements generally define user connectivity options. 

103For example, Web-based collections via credit card. 
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Technical Requirements 

Security104

Yes, 

No, 

or 

N/A

Explanation

507. Does the core financial system have 

integrated security features that are 

configurable by the system administrator to 

control access to the application, functional 

modules, transactions, and data? M (p. 73) 

 

508. Are the core financial system application’s 

integrated security features compliant with 

the National Institute of Standards and 

Technology (NIST) security standards? M 

(p. 73) 

 

509. Does the core financial system ensure that 

the agency’s access policies are consistently 

enforced against all attempts made by users 

or other integrated system resources, 

including software used to submit ad hoc 

data query requests or to generate standard 

reports? M (p. 73) 

 

510. Does the core financial system require the 

use of unique user IDs and passwords for 

authentication purposes? M (p. 73) 

 

511. Are the core financial system passwords 

nonprinting and nondisplaying? M (p. 73) 

 

512. Does the core financial system application 

allow for the following: 

a. the enforcement of password 

standards,105

 

b. the establishment of a specified 

period for password expiration, and 

c. the prohibition of recent password 

reuse? M (p. 73) 

 

 

104This technical category defines internal and external access controls. 105For example, minimum length and use of alpha, numeric, and special characters. 
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Technical Requirements 

Security104

Yes, 

No, 

or 

N/A

Explanation

513. Does the core financial system enable the 

system administrator to define functional 

access rights106 and data access rights107 by 

assigned user ID, functional role,108 and 

owner organization? M (p. 73) 

 

514. Does the core financial system permit the 

system administrator to assign multiple 

levels of approval to a single user, while 

preventing that user from applying more 

than one level of approval to a given 

document? M (p. 73) 

 

515. Does the core financial system allow the 

system administrator to restrict access to 

sensitive data elements, such as social 

security numbers and banking information, 

by named user, groups of users, or 

functional role? M (p. 74) 

 

516. Does the core financial system maintain an 

audit logging capability to record access 

activity, including the following: 

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

workstation; 

b. user-submitted transactions; 

c. initiated processes; 

d. system override events; and 

e. direct additions, changes, or deletions 

to application-maintained data? M 

(p. 74) 

 

517. Does the core financial system provide the 

ability to query the audit log by type of 

access, date and time stamp range, user ID, 

or terminal ID? M (p. 74) 

 

 

106For example, to modules, transactions, and approval authorities. 107For example, record, create, read, update, and delete. 108For example, payable technician. 
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Technical Requirements 

Operations and Computing 

Performance 

Yes, 

No, 

or 

N/A

Explanation

518. Does the core financial system include a 

process scheduling capability that enables 

the operator to initiate, monitor, and stop 

scheduled processes, such as online 

availability, batch jobs, and system 

maintenance? M (p. 74) 

 

519. Does the core financial system provide 

online status messages indicating job or 

transaction type and name, when requested 

processing starts and completes, and system 

errors? M (p. 74) 

 

520. Does the core financial system allow reports 

to be produced in the background while 

other system processing takes place? M (p. 

74) 

 

521. Does the core financial system provide the 

system administrator the ability to control 

the archiving process? M (p. 74) 

 

522. Does the core financial system include the 

capability to establish and maintain userdefined archival criteria, such as date, 

accounting period, closed items, and 

vendors inactive for a specific time period? 

M (p. 74) 

 

523. Does the core financial system allow 

selective action on those documents that 

meet the user-defined archival criteria? M 

(p. 74) 

 

524. Does the core financial system retain 

archived data and system records in 

accordance with federal regulations 

established by the National Archives and 

Records Administration, GAO, and NIST? M 

(p. 75) 

 
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Technical Requirements 

Operations and Computing 

Performance 

Yes, 

No, 

or 

N/A

Explanation

525. Does the core financial system provide the 

ability to selectively retrieve archived data 

based on user-defined criteria such as date, 

accounting period, or vendor? M (p. 75) 

 

526. Does the core financial system maintain and 

report on productivity statistics about 

application usage? M (p. 75) 

 

527. Does the core financial system provide audit 

trails to identify changes made to system 

parameters and tables that would affect the 

processing or reprocessing of any financial 

transactions? M (p. 75) 

 

528. Does the core financial system provide 

computing performance metrics, for 

platforms and systems environments on 

which the application is certified to run? V 

(p. 75) 

 

529. Do the core financial system’s vendorprovided performance metrics describe the 

following: 

a. transaction processing throughput 

capacity, 

b. expected workstation client response 

time by transaction type, 

c. data storage capacity, and 

d. limitations on concurrent user 

connectivity? V (p. 75) 

 
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Technical Requirements 

Operations and Computing 

Performance 

Yes, 

No, 

or 

N/A

Explanation

530. Does the core financial system process an 

agency’s projected accounting activity 

without affecting projected online response 

time? V (p. 75) 

 

531. Does the core financial system complete 

routine batch processing109 within an 

agency-defined batch processing window? V 

(p. 75) 

 

532. Does the core financial system maintain the 

agency’s current and historical financial 

data110 with no degradation to online or 

batch processing performance? V (p. 75) 

 

533. Does the core financial system support 

concurrent access to functional modules by 

the agency's defined user community? V (p. 

75) 

 

534. Does the core financial system disclose 

processing jobs, steps, and dependencies 

that are required to operate the system on a 

daily, weekly, monthly, quarterly, and 

annual basis? V (p. 75) 

 

535. Does the core financial system provide the 

capability to process batched transactions 

during online hours and accept online 

transactions from interfacing systems with 

no online performance degradation? V (p. 

75) 

 

 

109For example, backups, nightly interface processing, core general ledger posting, table updates, standard reporting, 

and systems assurance. 

110For example, general ledger records, documents, transactions, lines, and vendor records. 
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Related GAO Products 

These related products address two main categories: internal control and financial 

management systems. We have developed these guidelines and tools to assist agencies in 

improving or maintaining effective operations and financial management. 

Internal Control 

Maintaining Effective Control Over 

Employee Time and Attendance 

Reporting. GAO-03-352G. Washington, 

D.C.: January 2003. 

Streamlining the Payment Process 

While Maintaining Effective Internal 

Control. GAO/AIMD-00-21.3.2. 

Washington, D.C.: May 2000.

Internal Control Management and 

Evaluation Tool. GAO-01-1008G. 

Washington, D.C.: August 2001. 

Determining Performance and 

Accountability Challenges and High 

Risks. GAO-01-159SP. Washington, 

D.C.: November 2000. 

Standards for Internal Control in the 

Federal Government.GAO/AIMD-00-

21.3.1. Washington, D.C.: November 

1999. 

 

Financial Management Systems Checklists 

Acquisition/Financial Systems 

Interface Requirements. GAO-04-650G. 

Washington, D.C.: June 2004. 

Seized Property and Forfeited Assets 

Requirements. GAO-01-99G. 

Washington, D.C.: October 2000. 

Benefit System Requirements. GAO-04-

22G. Washington, D.C.: October 2003. 

Inventory System. GAO/AIMD-98-

21.2.4. Washington, D.C.: May 1998. 

Property Management Systems 

Requirements. GAO-02-171G. 

Washington, D.C.: December 2001. 

Human Resources and Payroll 

Systems Requirements. GAO/AIMD-00-

21.2.3. Washington, D.C.: March 2000. 

Grant Financial System 

Requirements. GAO-01-911G. 

Washington, D.C.: September 2001. 

System Requirements for Managerial 

Cost Accounting. GAO/AIMD-99-21.2.9. 

Washington, D.C.: January 1999. 

Guaranteed Loan System 

Requirements. GAO-01-371G. 

Washington, D.C.: March 2001. 

Travel System Requirements.

GAO/AIMD-00-21.2.8. Washington, D.C.: 

May 2000. 

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