U.S. Govetinment Chief Financial 

Officers Council 

The members of the U.S. Government Chief 

Financial Officers (CFO) Council-the CFOs and 

Deputy CFOs of all the 24 largest federal agencies and 

senior officials of the Office of Management and Budget 

and the Department of the Treasury-work 

collaboratively to improve financial management in the 

U.S. Government. The CFO Council has become a 

strong force for active cooperation among agencies 

dealing with common problems. Its composition of both 

political appointees and senior career civil servants 

ensures collaboration and continuity of effort. 

Under the Chief Financial Officers Act of. 1990, the 

CFO Council was established to advise and coordinate 

the activities of the agencies of its members on such 

matters as consolidation and modernization of financial 

systems, improved quality of financial information, 

financial data and information standards, internal . 

controls, legislation affecting financial operations and 

organizations, and other financial management matters. 

The CFO Act legislated broad authority for each 

CFO to oversee all financial management activities 

relating to the programs and operations of the agency. 

With this authority, the CFO will ensure that sound 

financial management practices are applied in all 

organizational components of his or her agency and that 

modem automated financial systems and tools are used. 

Specific CFO authority varies agency by agency, but 

may include some or all of the following financial and 

general management components: budget formulation 

and execution, facilities or property management, 

financial operations and analysis, financial,systems, 

grants management, information resources management, 

personnel, and procurement. Information of the CFO 

Council can be found at its website: 

www.financenet.gov/financenetlfedlcfo/cfo.htm 

The Joint Financial Management 

Improvement Program 

The JFMIP is a joint and cooperative undertaking of the 

U.S. Department of the Treasury, the General Accounting 

Office, the Office of Management and Budget, and the Office 

of Personnel Management working in cooperation with each 

other and other agencies to improve financial management 

practices in government. The Program was given statutory 

authorization in the Budget and Accounting Procedures Act 

of 1950 (31 USC 65). Leadership and program guidance are 

provided by the four Principals of the JFMIP-Comptroller 

General of the United States, Secretary of the Treasury, and 

the Directors of the Office of Management and Budget, and 

the Office of Personnel Management. Each Principal 

designates a representative to serve on the JFMIP Steering 

Committee, which is responsible for the general direction of 

the!Program. The JFMIPExecufive Director, and a program 

’ agency representative (who serves for 2 years) are also on the 

Steering Committee. 

.The Program promotes strategies and guides financial 

management improvement across government; reviews and 

coordina?es central agencies activities and policy 

promulgations; and acts as catalyst and clearinghouse for 

sharing and disseminating information about good financial 

management practices. This information sharing is done 

through conferences and other educational events, 

newsletters, meetings with interagency groups and agency 

personnel, and through FinanceNet, an electronic 

clearinghouse on the Internet. 

The JFMIP has worked on interagency projects that 

developed a financial systems framework and financial 

systems requirements. For the future JFMIP plans to assist 

federal agencies in improving their financial systems through 

its Program Management Office. The Office will work on 

revising the federal government’s requirements definition, 

testing, and acquisition processes; the first target of 

opportunity is core financial systems. The objectives of the 

Office are to develop systems requirements, communicate 

and explain federal and agency needs, provide agencies and 

vendors information to improve financial systems, ensure that 

products meet relevant system requirements, and simplify the 

procurement process. 

Information on JFMIP can be found at its website: 

www.financenet.gov/financenet/fed/jfmip/jfmip.htm or call 

202/5 12-920 1. 
Foreword 

Core Competencies in Financial Management for Information Technology 

Personnel Implementing Financial Systems in the Federal Government is the third 

document in a series of Core Competencies publications developed jointly by the Chief 

Financial Officers Council and the Joint Financial Management Improvement Program. 

It is intended for the use of information technology (IT) personnel working on financial 

systems and defines the key developmental goals and training activities for IT personnel 

to achieve a working level of competence in financial management. 

The CFO Council and the Office of Management and Budget identified 

improvement of Federal financial management systems as the number one priority in 

their jointly published Federal Financial Management Status Report and Five Year Plan, 

July 1995. Indeed, the degree of success that any Federal agency or department has in 

achieving its financial program goals and objectives hinges on the utility and 

effectiveness of its financial management systems. Ready access to financial data and 

accurate, timely reports are essential for managers to determine the costs of their program 

services and products in an environment increasingly characterized by business-type 

analysis and evaluation of program performance. 

With the full implementation of the Government Performance and Results Act 

(GPRA) of 1993, agencies will be required to report to Congress on their progress in 

achieving the performance goals contained in their strategic plans. Agencies will 

measure progress in achieving program performance indicators that are measurable both 

qualitatively and quantitatively. To do this, each agency will need to develop financial 

management information systems that capture both financial and program specific 

information that can be reported in an understandable, clear and concise way. These 

reports will be Congress’s primary tool in reviewing budget requests and determining 

further funding. Federal financial management systems also will need to conform to the 

new accounting and system standards prescribed in the Chief Financial Officers Act of 

1990, the Information Technology Management Reform Act of 1996, and the Federal 

Financial Management Improvement Act of 1996 (FFMIA). 

Information technology (IT) personnel, working in cooperation with financial 

system analysts, play crucial roles in developing and maintaining effective financial 

management systems. It is important that each of these professions acquire a working 

knowledge of the other’s discipline to optimize cooperation and understanding in the 

development, maintenance, operation, and acquisition of the kinds of financial 

management systems required by the new legislation. This Core Competencies 

document has been prepared to support such cooperation and understanding. 
. ..-.-- - 
List of Abbreviations 

CFO Chief Financial Officer 

CFO Act Chief Financial Officers Act of 1990 

CIO 

c 

Chief Information Officer 2 : ‘I) 

i 

COTR 

FASAB 

F.&IA 

Contracting Officer’s Technical ,Representative’. ‘. ’ 

,’ ,F~~eral Accounti~g,Stan~a~~s A-~~isbrj; Bard , 

Federal Financial Management Improvement Act of 1998 

FFMSR 

FMS 

GAO 

GPRA 

GSA 

IT 

ITMRA 

JFMIP \ 

OMB 

SFFAS 

USDA 

(. I 

Federal Financial Management System Requirements ’ ’ ’ 

Financial Management Service, Department of the Treasury 

General Accounting Office 

Government Performance and Results Act of 1993 

General Services Administration 

Information Technology 

Information Technology Management Reform Act 

Joint Financial Management Improvement Program 

Office of Management and Budget 

Statement of Federal Financial Accounting Standards 

U.S. Department of Agriculture 
Foreword . 

Introduction I :, : 

Financial Core Competencies for Entry- and Mid-Level IT Personnel 

I 

Financial Core Compqtencies $or: Senior IT Mariagers an4 Supgrvi!ors 

t Sl ,,’ 

Specialized Kno\)rlpdge Requir$ for,Financia! .Mayzgement Systems j 

,. 

” I 

. . 1 

3 

‘i! 

1.1 

Training .I .,,’ ;’ ,:, ; :.- ,’ i. ,’ ,.’ I)‘/ ‘,: 16 

I 

Major Contributors 17 ?.. ), ., 

‘, : t * / _. (. 

c 

.1 

: 

ii 
Background “, .’ ; ] ,i,‘ ,,, .. ; ;: .‘:“, ,:,., 

I- 

;= 

/:‘.. A governmentwide training symposium held in 1994 provided the impetus for 

establishi.ng ~gove,mnent&+de core:co,mpetencies for ‘alllevels’ of, financial .management 

personnel, ! The. first effort, resulted.in,‘the @@mework for @& $‘pp~eten’c&f~~ 

,... ,. 

i- 

,- 

CFO Council thexrsuggested that firiancial’inanage;nentcomektenci~s,~~ defined for ,~ 

program managers in ‘light ‘of the ne$ r&luirements placed, on them by the ‘CPI$+. The 

resultant C&-e’ Co&bet&c@ in~.,Fiyi$&/ i@&&e~eti~ for P&$-a@ ik&igLv-s’ip the 

, Federal Go+e&zhe+i *as published in April ‘1997:[ The Council~had also ‘recom,mended I 

: that financial A Cl?0 : core co,mpete&ies be identified for ‘financial system analysts. 

: 

’ ‘, Council Sub-c~~mittee: ~~~f~;;iied -li’ December 1996 ,t~ devalb~ these e~mpe~~t;cies. 

After a fe$ discussi&;i, th;;>;;;~:co;lng$t& cdncluded th;; .& rbles & he tin~L.al 

system analyst and the computer system analyst (computer specialist) supporting :Z 

financial systems, yere blending together; Indeed, neither discipline could continue to fi 

operate as it, had in the, past:,‘.i)ne d~ct~~ihl:‘fu~~~ibnal,‘r~~uirements; the other deciding on .e 

technological solutions, sometimes’ almost independently of each other,’ It became clear 

that in‘order to produce’fi~~~~i~l.‘~~~~~~;,sollitiond that work%e financial system.analyst I 

ne&ds ‘an in-depth’ ci?&iXiji$ of,fiianiial ‘tiaGaiegiit kd a $,+fihg I<howiedge ‘of IT, 

while the IT professional must have an in-depth knowledge of IT,and a working 

knowledge,of financial management. These two disciplines working together is a critical 

factor for the effective design, development, implementation and operation of financial 

management systems. 

Purpose of this Document ‘. 

: 

The objective of this document is to set forth recommended core competencies in 

financial management for IT personnel who are responsible for building and maintaining 

financial systems to foster collaborative work among IT and financial management 

professionals. 

The target audiences are IT personnel at all levels of experience., The document 

identifies general, areas of competency and, within these, specific learning objectives or 

developmental goals. ‘Financial management core competencies for entry-level and midlevel personnel are presented together, and those specific learning objectives or 

developmental goals that apply only to the mid-level are so identified. Financial core 

competencies for senior level ,personnel are presented separately; it is assumed that the 

senior level personnel have mastered the entry- and mid-level competencies, 

Further, it.is understood that this document identifies only financial management 

core competencies for the IT professional and not the IT knowledge and skills which 

1 
constitute the IT professional’s primary professional knowledge and skills. For example;., 

project planning competencies are not addressed in this document. 

Conclusions and Recommendations 

2 
Financial Core’~oikipetencies.;f~~ Entry; and AN-Level: IT 

Personnel. ,,. . . .:: .. ‘.~_ sc ,,.$ ).,! ,,” ,.,: ,,?I ,. ,:: : ,, :, (: ‘. 

_ I i., h.,.. ,:, _,I: . “.a .I .,, . . . ‘-: .,. .,,,, .: :, 

:, ;;:: s ‘r I ‘P.,.,,i ,I,., 1.- ,, I > 

The following are target levels of compete&es for entry{, and mid-level IT 

personnel. They are described as knowledge,, skii&, and abilities; however, possession of 

“. a level 6~~understa~ding,:knowle,dge:~“~n~:skill,algne~.~pes n$acco,mplish the work, 

Competencies are evidenced by thkiqapplicslti9n:and!can,,!be developed only through a 

.,’ mix .of,.o,n-t.he-job JeFperie,nce:in structured work ,gssignments and third-party provided 

training.,’ 

_. ”

* 

!, ll,i F’:,‘: : ” , ; ,’ :j ? i; !. ‘, 1 ,, ), ; : -: 

) .f ;,:; ,.The competencies ,~~.,c!us~~ee~‘intp,thk ,followjng;$rou$;: Accounting; Financial 

Systems; ,Legal~,, ~~roc,edlral, and RegylatoalFrame\llork; Agency/Qrganization Specific; 

‘.and,General Business; ‘Cornrnlmjc.~~l,on,.and Leadership: The,competencies apply to both 

entry- and mid-level unless specifically stated otherwise.,;: ‘,‘:‘, *)j.: I ~‘, 

Accounting Competencies 

Basic accounting ,concepts and principles 

:<- ‘, .’ 0. ,:;, ,I, General .knowledge of, double-enfy accounting. concepts ofdebits and 

j., ,/ 

. credits,’ including,single,uansaction entry i-esultingin multiple postings. 

a ,.. ‘/ General,knowledge of the differe,nt methods ofaccounting including 

.:, i: .‘_l,_’ ::; ,accrual, obligation,, and cost. “.. ! ,.,, : 

;-. ~ .> ;.’ 

., ~’ /., _. ‘I ,. 

Federal &counting conce&‘and principles 

; .‘, /. ‘./, ‘,,. “ 

, ::. ; 

l General knowledge of the. requirements of the :Stangl~d..General,~~edger 

(SGL). Understanding of the structure of general ledger accounts required 

: ‘, ’ ofalliagencies. ,. I, : , ,:. :‘.:,, ,, 

, 

l General understanding of the structural relationship between the budgetary 

,., *, and (proprietary SGL accounts: .t; ., 

, . ., Ii ;; 

l General understanding ofhow financial transaction8 affect SGL accounts. 

a General knowledge of Federal Accounting Standards, Advisory Board 

(FASAB) financial accounting concepts and standards. (Mid-level) 

:,, 
r-. 

&-. 

l General knowledge .of the techniques used to assure that financial’ “’ ;.I I .’ 

transactions and files are fully processed (e.g., hash dollar and item ! 

.,_ 

counts).. Mid-level ITxpersonnel should have a thorough understanding of 

i; [=’ 

, ‘.’ su& te&iiijie$ ; I:,; .: /’ r,., ’ ‘/ ; ; _ i I- 

:. ‘, , ‘;‘,‘,i, :. f ,; -‘., .’ 1 ; ‘j,! : i . ;: (,,, (,_” ;..;j .;: ~ ,,,‘; !. ,,, 

/’ 0 :. General knowledge’ offinahcial~systemscontrol~re~or& and files that are F; 

’ :‘j,., .$kd. iti +-&k the data,.~~tegiity~l'within &e gr&&s,- !Mi;&level IT., .J 

, I .’ 

/’ ., ‘. I’::. ’personnel should havea thorough understanding~ofthese reports and files. I 

i*;i;, ;: 

l 

: /,, General understanding of the-types of functional and technical security ,.’ 

_ 

-controls used to,limit &x&s mtiifi’nancial coml$tter files, tables, and data. i’ ,.‘. ,,, ,‘I, ‘. .Thls.incliid~s'c'cdntrbls: “fdr iiu~6;sk8;of~~ep~~ririg &&tio& $d:that an 

..I _. : .! +ifi&Qidu& doesi pot ha~k'solC,~~~~roli~~d'dv~~sighj~of the.secufity of 

financial &tai (Mid-l&el) ',i:, ,','I ; 1' ,,,, ',' $3" ,:'. '_I ~ 

.", 

Financial Systems Competencies ,’ - ,’ ;,: ’ ,/’ ;.‘,-, 

Financial sys&s’ functionalities .. ‘, :ii : I),’ 11 .i t,s:‘ti. ,$ ‘;.i :::,i:ii ;‘,:, ‘,,,‘, I;,:: *‘y, -,, , ,, 

,:.,.: .A,:. ,-:! :,. 

‘. Workjng~ kriowledge%f the overall~functionality%f :the financial system(s) 

3" "' :~~d.~e'i~di~idual'syieei~~ bufipdfis afid.in~eerfa&$Q',with other systems. 

h 

:+'!‘ i 3 : At the ~d~l&el, .&or&&'l&GwI&ge df:tht',o~~'aiiiiation~ s' val-ious 

financial systems’ functionalities. Comprehension of how a change in one, 

system affects other systems and how all the interfaces between systems, 

work. I. o;‘, ,: ‘. ,.*i.: .‘,; /,.I j ” / ;’ ‘J I 

: Fin$incial re@irements,and’, IT solutions~ : ‘. ,:’ (, ‘. : : 

VI’ .i i: r*. ,4’,, ,, .,_ ;. ‘. ’ ,1 : : (, 

0 Ability to identify and analyze softWare tools that facilitate the processing 

or retrieval of financial data. (Mid-level) <I’, ( ‘/. 

., i ‘:i’,:,t ,I ” ,:, ., ‘_ 

I l Ability to identify and communicate technological solution alternatives, 

including costs and time,frames, to financial managers and program 

1 managers for mutual ‘decision-making. (Mid-level) .I 

’ 

Legal, fVocedura1, and Regulittory Compbtencies ‘, .. ,I :. . : 

. . .’ : : ‘. ..’ ; . . ,‘. 

0’ Knowledge of legislative and regulatory requirements applicable to the 

organization’s financial systems and practices, when appropriate. 1 

I 
0 I General, understanding of, relevant laths and, regulations suchias; the ; 1 

requirements of OMB Circular A-127, GPFL4, the CFO Act and their 

ieffects withinthe .Agency:; (Mid4evel) ‘. 

!:i” ‘/,,’ 

a General understanding of E&P guidance contained in JFMP 

:- ‘,, Framework for Eederal Financial .Systems and!JFMIP Federal Financial 

‘, .,i System Requirem,ents; when appropriate. ii : .-I ‘I :’ i :, ,t ,L,. . . . 

0 General understanding of 1TMRA of 1996 which provides criteria for 

: : ..‘. .’ ‘,!, ‘,:,J; developing. and-.maintainingfinancial systems and.related policies and 

: (, ., ,’ ‘:proced,ures.,‘(Mid-~evel); ! ! ;: :,:” .:, .:,:-” 

f 

0 General understanding of how the agency~,formulates its*budget and-the, I ; 

Congressional and OMB appropriation process. (Mid-level) 

‘,, :z ij >I.. ,., *.. ,.I’.’ I :J! 0 : .$:a’.. ,. \‘.$‘4- ., ,‘,,. .,p : ,<., ‘* :‘( 

l Understanding of sources of :fundingand .the appropriation process 

including associated terminology such as authorizations, apportionments, 

allotments, commitments,. obligations, and ,expenditures. (Mid-level) ’ 

Financial Systems Oversight and Management Controls ,Competencies 

l Ability to work with financial auditors and financial systems analysts to 

audit automated financial systems, respond to findings, and apply 

improvements to these systems. (Mid-level) 

/ 

Agency/Organization ,Specific Competencies 

Mission and Strategic Plan 

0 Knowledge of the agency/organization’s structure, mission; function, and 

major components and the requirements of the agency’s strategic plan. 

Organization’s business practices 

a 

1 

,Working knowledge of the organization’s business practices as they relate 

to the financial system(s) theiindividual supports. ‘; . 

Thorough knowledge of business practices related to the financial 

system’s operations required-to effectively work with financial and 

program staffs in importing and/or reengineering financial management 

systems. (Mid-level) 

5 
General Business;, Communication, Andy Leadership Competencies 1 

e .!. I- ‘! I ., 

l Ability to apply knowledge of business process re-engineering and 

analysis for efficient operations. (Mid-level) 

. 

‘. ,o Ability: to communicate with financial and program staffs and other end 

users for the purpose of determining financial management needs. (Midlevel) 

. .; :, 

,., .:),:m,,- : . . ! ,. 

‘, ‘;’ .’ l ,-“$ ‘Understanding of team building approaches and skills and ability to apply 

them in te’ams made up of differentfunctional disciplines. (Mid-level) 

Acqu;i;rition and Contract Manizggme@ Cbmpetencigs .‘: 

..’ : ‘. , :, :,/$ .’ .,I ,:t: ;j !. ., “~’ ,;. 6 .( .’ 

0 Working knowledge of acquisition models; e.g., franchising, outsourcing, 

,i +. ‘Fperformance-based contracting. (Mid-level) 

_,” ,, ,,, ‘;‘_ ‘.,,,<. .’ ? ‘s,, ,. 

!: 0 .Know.ledge of COTR requirements. (Mid-level), 

‘. 

/;’ :. 

6 
Financfal Core$.Competencies for Senior IT Managers and 

Supervisoys’ ” ’ 

The IT professional is now at the level of managing projects from conception to 

implementation and is most.often responsible for the management and supervision of an 

organization devoted to.; financial management systems acquisition, implementation, and 

operation. Typically; the IT manager is heavily involved with such activities as 

procurement and ,Contracting Officer’s, Technical Representative, (COTR) functions,. 

resource management, budget allocation, planning, systems ,architecture and integration. 

At this level, skills in leadership, management and communication are essential for 

: success. Further competence in the following areas of financial management is 

necessary. 

Financial Systems Competencies . 

,. _’ 

l I@owledge.of organization’s financial systems, including legislative, 

administrative and regulatory requirements, in order to manage the 

integration of these systems within the organization’s environment. (/ 

l Knowledge of government-wide standards for the exchange of financial 

information. 

.‘, 

? Ability to identify and interpret planning requirements resulting from 

legislation and oversight agencies’ directives. 

l Ability to define roles and responsibilities of oversight and partnering 

organizations within.and,outside the bure,au/agency (such as Treasury, 

GAO, GSA and OMB for external oversight and the CIOKFO within the 

. Department and agency) as necessary to carry out new requirements. 

. 

l A. general understanding of JFMP Framework for Federal Financial 

Systems and JFA4IP Federal Financial System Requirements. 

Agency, Budg$ing and Resource Management Competencies 

.: . 

l ,Obtain thorough understanding of the concepts of strategic planning. 

l Identify organizational,priorities and relate them to resource and budget 

allocation. 

‘. ._ 

,j’ ,.,; .I, ; ,: 

l Rlan, manage resources, and budget for financial systems development 

and implementation. Evaluate costs and allocate resources necessary to 

develop/implement financial software solutions. 

7 
l :, 

. . Demonstrate the ‘capacity to:.de\l~~ilpp;and~monitor;.pla?s ona .general ,basis 1 

for the development/implementation of financial software solutions. ,, ,:: 

: ;.i ( ,,,.,; “, 

IT Solutions Competencies : ‘.# 

_j. ; i. 

. ,‘,: Evaluate proposed IT solutions ,and communicate technological solution 

alternatives including costs and’time frames, to2financial managers and 

$$,jram managers for mutual, decision making;. Identify efficient IRM 

” solutions for organizational manual-processes, functional needs,Z’or 

i probIkm resolution. ) ’ ‘” ; ( : 1: ,I’ / : :j!,,. ‘: ,‘. 

‘,,‘. ‘.?’ j: .;;.. ./ 1 .” ,.,,’ I, ‘I :::/. .:, ‘,, .’ % : 

,e’ * Stay abreast of current technologiesand’how they can’assist’~withfinancia1 

systems technological s.olutions. ,‘. ,I 

a Understand the inner technologic~ wo&i@s df'~~~~nan;cia‘l"system6 !:I: ‘,’ 

including design, security, change .management, backup and recovery 

procedures,,and updated documentation procedures:: ’ ( , : .,,; .’ I. 

i Relate potential impacts of technological solutions on the organization in 

terms of efficiencies introduced, manual processes eliminated, and cost 

:, : and resource savings: 

a Build effective collaboration among IT personnel, financial system 

’ analysts, financial,managers; and,program managers when discussing 

technological solutions. ’ \ : r’,‘, : 

I.. l 4 * Evaluate financial software’vs. organizational needs. Understand methods 

forevaluation of ‘financial software. 

> ‘: ‘. a .’ ” .’ 

a” Understand the procurement process for fiurchasing financial software. 

0 Demonstrate capability to establish a working relationship with providers 

of financial.software. I’. ‘,’ 

l Understand the concepts and techniques of cross-servicing, outsourcing. ; : 

and franchising as they relate to the organization’s needs and support for 

financial systems. S 

Financial Systems Oversight and Management Controls Competencies 

.:_ 

0 Identify financial system improvements through the auditing process and 

apply technological solutions to strengthenthe system. 

l Apply the concepts of business process re-engineering to the entire 

8 
‘, f$ranci,al operation. to conform as much as. possible to the,capabilities ,of 

the financial software package selected for implementation. . 

; ‘.. 

Aciphition and Contract Management Competencies 

[ ” ,: ,, ‘,/ 

’ 0 ‘_ Understand IT contract management models and methods, including past 

,, performance evaluation. , 

, ‘_ ..): : 

;.: ,, ..,, _ ‘., :,>r ;j,,. ,., .: .’ ‘- ,.: ..a 

1 ia L&m,fl acqbisition: best practices. ’ ” ’ L j ,, : ; 1 ; 

1 ‘. ,“, . . I, : i :;. I 

. ./ :.: ., : 3; 

0 Apply knowledge of ,alternative acquisition models, (e.g., franchising, 

contracting out, performance-based contracting). 

0 Demonstrate the capacity to act as COTR of IT contracts, including 

budgeting, monitoring of performance, verification and payment of 

invoices, allocation of funding, and resolution of issues. 
Spkdiaiized Ktiiiwledge Requir@d for Finan@i Management Systems :, ‘. “-. : ,;_., : I,’ I ,>-: ) 

‘.i I. . * : ’ 

In certain instances, such as analysis, design, and development of financ’ial 

(( ,., ; ::, :‘, 

( managementsystems, the IT professional: will be.required:to develop specialized 

knowledge related to the unique requirements .of the particularsystem. The matrix that 

follows identifies,various financial systems common throughout the government and lists 

the specialized knowledge required for those persons engaged in: the development of 

those systems. It highlights the basic financial knowledge that IT personnel should I 

,;.i,facquire in order to perform their dutieseffectively. “,: ; .i ,, ;i j ,c 

. . 

10 

,I, 
. 

SPECIALIZED KNOWLEDGE REQUIRED IfOR FINANCIAL MANAGEMENT 

SYSTEMS 

SYSTEM TYPE DESCRIPTION SPECIALIZED KNOWLEDGE REQUIRED* 

Acquisition Supports the acquisition process of obtaining goods and services. It SFFAS l-- Accounting for Selected Assets and Liabilities 

prepares and tracks the status of requisitions, small purchase orders, SFFAS 3 -- Accounting for Inventory and Related Property 

and contracts; records and validates the receipt of goods and services; SFFAS 4 -- Managerial Cost Accounting Concepts and Standards for the 

and provides information to the core financial system for matching Federal Government 

invoices and issuing payments. SFFAS 6 -- Accounting for Property, Plant, and Equipment 

48 CFR, Chapter 1 -- Federal Acquisition Regulations 

Benefit Payment Supports payments of social insurance benefits and other transfer SFFAS l-- Accounting for Selected Assets and Liabilities 

payments. .- . 

_. .__ 

. ..’ SOFAS 5 -- Accounting for Liabilities of the Federal Government 

Black Lung Benefits Act 

1 Railroad Retirement Act of 1974 ,_ ,_ _ 

.’ ,* : USC Title 42, Chapter 7 -- Social Security .’ 

Budget Formulation Supports the agency’s prepiiration’of budget information during-the OMB ‘. Circular A-1 1 -- Preparation and Submission of Budget Estimates 

budget formulation process. ‘It supports the establishment of a baseline 

from which to build the budget, track&i&l submissions and 

O&E3 Circular A-34 -~‘Instruct&ns on Budget Execution 

-. 

. _ 

modifications to the budget, provides budget data for inclusion in the 

FMS Publication-- Budgetary&counting in theFederal Government 

Priirciples of Appropriation Law ’ 

President’s Budget, and tracks the status of the budget request as it 

moves through the process until,enactment of appropriations. 

./:, -. 

, ,. 

. ~. . . . . 

.. 

Core Financial Forms the-backbone for the agency’s‘mtegrated finat@ ma&agement 

system. It provides common processing,routiites, supports common 

All FASAB Accounting Concepts’atid Standards ; 

data! for critical financial management functions affecting the entire 

U.S. Government Standard General Ledger -_ , 

agency, and maintains the required financial da&integrity control over 

SGL Crosswalks to Financial Reports 

financial transactions, resource balances, and other financial systems. 

JFMIP FFMSR-l-- Core Financial System Requirements 

OMB Circular, A-34 -- Instructions on Budget Execu.tion 

The core fmancial system supports general ledger management, funds 

management, payment management, receipt management, and cost 

FlvIS Publication :: Budgetary Accounting in .the Federal Gove&nent 

management. 

‘Federal Agencies.? .Cent@&d Trial-ba@ce System Requirements 

.I _ 

‘. : :-,;..y.:.,: :.- ‘: : :’ 

. .: : : 

1 

-: -:. :; ,. : 

. . . . ., _ _ . _. 1.-. -__. ,. _ 
SPECIALIZED KNOWLEDGE REQUIRED FOR FINANCIAL MANAGEMENT 

SYSTEMS 

Cost Accounting Supports the accumulation and reporting of financial and related 

information in accordance with requirements of OMB’s Bulletin on 

SFFAS 4 -- Managerial Cost Accounting. Concepts and Standards for the 

Federal Government 

“Form and Content of Fmancial Statements.” The system provides SFFAS 7 -- Accounting for Revenue and Other Financing Sources and 

information for. the annual and other periodic reporting of summary 

fmancml and related information~including au&t t&s to systems of - 

Concepts for Reconciling Budgetary and Financial .~ .,... 

original entry and adjustments. 

Accounting 

Government Perfon&ceand.Results Act of I993 

_ Government ,Management Reform Act of 1994 ‘. 

I JFMIP FFMSR:8 :- I&nageri~CostAccounting System Requirements 

Acnvity E@xi Costing 

Direct Loan Supports the management of d&t loan program&m which dkct -. 

disbursements are made to an approved b&o&r and’ the agency 

SFFAS 2 -- Account&for Direct Loans and Loan Guarantees 

servi;es md couects he f&k* ly~p$o& & &&4;.;f l6%.&. SFPAS~ 3 -2 Accounting for Inventory ‘a@Related Property J 

. - 

extension, account servicing,~ portfofiom@tgement, ‘%td;de@rquent .. 

JFMfP PFMSRL5 -i’Dire& Loan System Requirements 

OklB Circuhtr A-129 -- Pohcies f&Federal Credit Programs a&Nondebt collection. 

i. :; 

. . 

. :. Tax Receivables 

Federal Credit Reform Act of .1990 

Debt Collection Improvement ‘&of -1996 

. : : : .1. ., 

Financial Reporting Supports the accumulation and reporting of fmancial’andrelated F;Lzt& sac. 2 .:; jE&, &.j ~$.~l~y 

information in accordance with requirementsof Oh& Bulletin-on ChlB Bulletin No..97101 ii Formats and Instructions’for the Form and _ 

“Form and Content of Pinanc~ai Statements.” The system provides : ,. 1 Content of Agency Fmanciai Statements 

information for the annual and other periodic reporting of summary U.S. Govermnent S.tandard General Ledger 

financial and related information including audit trails-to systems of SGL Crosswalks to Financial Reports 

original entry and adjustments. Federal Agencies’~Centralized Trial-balance System Requirements 

. . ’ _: 

: ,._ ~ : . . 

- _ 
SPECIALIZED KNOWLEDGE REQUIRED FOR FINANCIAL MANAGEMENT 

SYSTEMS 

Grant Supports providing grants and subsidies made to state and local 

governments; other organizations, or individuals 

., 

. 

.’ 

SFFAS l-- Accounting for Selected Assets and Liabilities 

‘. OMB Circular A-21 -- Cost Principles for Educational Institutions 

OMB Circular A-87 -- Cost Principles for State and Local Governments 

OMB Circular A- 122 -- Cost Principles for Non-Profit Organizations 

OMB Circular A-102 -- Grants and Cooperative Agreements with State 

_. 

: ,& Local ,Govemments 

OMB Circular A-l 10 -- Uniform Administrative Requirements for 

Grants & Cooperative Agreements With 

Institutions of Higher Education, Hospitals, & 

Other -Non-Profit ,Organizations _-- 

Grants Management Common Rule ‘(GMCR) 

Guaranteed Loan Supports the management of guaranteed loan programs, which use SFFAS 2 ---Accounting for Direct Loans and Loan Guarantees 

private sector lenders, to originate and service loans, with all or a 

portion of the interest and loan repayment guaranteed ,by the federal 

SFFAS 3 -- Accounting for Inventory and Related Property 

JFMIP FFMSR-6 -- Guaranteed Loan System Requirements 

government in case of borrower default. It-supports the functions of. ~ OMB Circular A- 129 -- Policies for Federal Credit Programs and -Nonlender management, guarantee extension and maintenance, portfolio ‘Tax Receivables 

management, acquired loan servicing, and delinquent debt collection. Federal Credit, Reform Act of 1990 

Debt Collection Act of 1982 (as amended) 

. Debt Collection Improvement Act of 1996 

Insurance Claim Supports payments of insurance claims under deposit insurance; SFFAS 5 -- Accounting .for Liabilities of the*Federal Government 

- -pension-benefit-guarantees, crop insurance, and other programs in ’ USC Title 7, Chapter 36 --- Crop Insurance 

, irrhich the government provides protection-against specified risks. .USC Title 29; Chapter’1 8 ;- Employment Retirement Income Security 

P&gram 

i USC Title 42, Chapter 50 -- National Flood Insurance 

USC Title-12, Chapter 16 -1 Federal Deposit Insurance Corporation 

Inventory Supports me management of inventory held for sale or used in the SFFAS 3 -; Accounting for Inventory and Related Property 

production of goods and services for sale. It supports the functions of SFFAS 4 -- ManagerialCost Accounting Concepts and Standards for the 

needs determination, inventory in storage, inventory in production, : I ’ . FederalGovermnent 

inventory disposition, and program planning and monitoring; 4l’CFR, Chapter 101, Part 101-27 -- Inventory Management 

:. JFMIP FFMSR-7 -- Inventory Systems Requirements 

,’ ‘48 CFR, Chapter l‘--’ Federal Acquisition Regulations 

: 
SPECIALIZED KNOWLEDGE REQUIRED FOR FINANCIAL MANAGEMENT 

SYSTEMS 

Personnel/Payroll \ Supports the agency’s management of human resources. It maintains 

data on employees and positions, supports personnel actions and 

-SFFAS l-- Accounting for Selected Assets and Liabilities 

decisions, captures time and attendance information, and performs 

SFFAS 4 -- Managerial. Cost Accotinting~ Concepts’arid Standards for the 

Federal Government. 

leave lid payroll computations (including retirement- contributions). SPFAS 5 1- Accounting *for Liabilitiesof the Federal Government I~ t JFMIP j?FMSRZ {: Personnel Payroll System Requirements 

USC Title 5 arid-Title:29 “-: ’ :, .I 

CSRS, MRS, and FERS Regulations 

Property Supports physical and accounting control over fmed and movable 

Management assets of the federal government. 

IRS, State, and Local Taz Regulations.Related to Mandatory Deductions 

:.r. 

SFFAS 6 :- Accounting for Property, Plant, and Equipment 

SFFAS 8 -- Supplementary Stewardship Reporting 

48 CFR, Chapter-l -; Federal Acquisition Regulations 

Revenue Supports the billing, collection, and detailed reporting of taxes, fees, 

and other revenues of the federal government. 

SFFAS 7 -- Accounting for Revenueand Other Financing Sources and 

Concepts for Reconciling-Budgetary and Financial 

’ accounting 

.- 

: 

SFFAS 8 ;- Supplementary Stewardship Reporting 

: FMS Publication -- Budgetary Accounting in the Federal Government -- 

Reimbursable Supplement 

Seized/Forfeited Supports the management of property or other assets-seized and/or. SFFAS 3 -- Accounting for Inventoryand Related Property 

Asset forfeited to the federal government by federal law enforcement i SPPAS 7, -- Accounting for Revenue and Other Financing. Sources and 

agencies: It tracks the status of a seized asset from thetime of seizure, Concepts f&ReconcilingBudgetary and Financial 

through various processing steps, which-may-include forfeiture, until ‘Accounting 

; final disposition of the asset. JFMIP FFSMR-4 --Seized/Forfeited: Asset System Requirements 

- / 

: 

Travel Supports the agency’s management of travel and transportation SFFAS I--.Accounting for Selected ‘Assets and Liabilities 

activities and expenses. It prepares and tracks the status of travel / OMB Circ&r A-127 -- Financial Management Systems : . . 

orders, advances, and vouchers as they go through the various stages : JFhiIP FFMSR:3 --:TravelSystem Requirements ^ 

of preparation, approval, and processing. Federal Travel Regulations y- 4 1: CFR ‘301- 304 

IRS.Regulations related to Relocation Tax YNlowances : 

., 

, * 

* The references citkd are examples as of the date of publication of this documknt,and are subject to a&lit&s or,reVisions;; ‘.’ 

A. ‘. L 

_ . 
Training 

There are numerous courses available within each agency, from established 

educational institutions, and from professional education vendors for the competencies 

described in this document. Classroom instruction is very important in order to acquire 

understanding of principles, processes, and techniques. This knowledge: must be .: I 

reinforced by practical applications leading toward achievement of these competencies. 

Information technology professionals will also benefit: from, management training in 

leadership, quality management, team management and oral and written 

communications. These skills will facilitate application of both IT and. financial \ 

management competencies. 

:.. 

Specific training courses will not be listed here because they frequently change. 

Training sources are abundant and include the Treasury Department’s, Center for Applied 

Financial Management, the USDA Graduate School, colleges and universities, and 

private vendors. The Internet is an excellent resource for finding specialized training 

courses and seminars offered by both private and public sector organizations. 

FinanceNet maintains a current list of training and development courses and providers 

which can be accessed at the following URL: http://www.financenet.gov. 

The following example illustrates a practical progression of undergraduate course 

requirements that can be used to accomplish some,of the competencies: 

Introduction to Financial Accounting; 

Introduction to Managerial Accounting; 

The Accounting Process; 

Accounting Systems; 

Managerial Cost Accounting; and, 

Financial Statement Auditing. 

, 

15 
Appendix 

Majsr Contributors to This Document 

. ‘,,:. ., 

Led by: “John ‘Ob&ut, Department of Labor ,. . 

Doris Chew,“;Tomt Financial’Management Improvement Program 1 .>:~’ _’ . .!, .- 

William Faustman, Environmental Protection Agency ‘: : .i; / : : 

Aldona Fitch, Department of Labor. ’ ,‘>,. ‘:. :. ‘I ,: 

._ 

.,.. 

Mark Holdrege, Bureau of the Census, Department of Labor 

.., ._,. 

Greg James, Department of Labor ’ :I :,. 

John Sander, Department ofState “, .r. -^ 

Clarence Smith, Department of the,Interior 

, 

This document was developed under the auspices of the CFO Council and JFMIP: 

: : 

Kenneth M. Bresnahan; Acting Chief Financial Officer, Department of the. Labor 

and Chair, Human Resources Committee I c ,, ,,.,: 

Karen Cleary Alderman, Executive Director, JF.MfP _’ 

r i

_::, -,, 

16 
Requests for Publications / 

JFMIP documents may be accessed electronically on FinanceNet Internet site: 

http://www.financenet.gov/financenet/fed/jfmip/jfmip.htm 

The JFMIP uses the General Accounting Office’s Document Distribution Center to fulfill 

publication requests which are made after mail list distribution. The first copy of each 

publication requested is free. Additional copies are $2 each. Orders for 100 or more 

copies to be mailed to a single address are discounted 25%. Orders should be sent to the 

following address accompanied by a check or money order made out to the 

Superintendent of Documents, when necessary. 

Orders by mail: 

U.S. General Accounting Office 

PO Box 37050 

Washington, DC 20013 

Orders may also be placed by calling 20215 

202/5 12-2537. 

12-6000, by fax 202i5 12-6061 or TDD