Benefit System Requirements
Checklist for Reviewing Systems under the Federal Financial Management Improvement Act (Supersedes GAO-02-762G) Gao ID: GAO-04-22G October 1, 2003This publication supersedes GAO-02-762G, Benefit System Requirements: Checklist for Reviewing Systems under the Federal Financial Management Improvement Act, September 2002. 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 Benefit System (JFMIP-SR-01-01, September 2001), to assist (1) agencies in implementing and monitoring their benefit systems and (2) managers and auditors in reviewing their benefit systems to determine if they substantially comply with FFMIA. Among the types of benefit programs covered by these systems would be those for retirement, disability, death, survivor, and others not related to health care. There is no requirement that this checklist be used in assessing benefit 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. 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 benefit system and whether the system, as a whole, substantially complies with requirements.
GAO-04-22G, Benefit System Requirements: Checklist for Reviewing Systems under the Federal Financial Management Improvement Act
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United States General Accounting Office:
October 2003:
GAO:
Benefit System Requirements:
Checklist for Reviewing Systems under the Federal Financial Management
Improvement Act:
GAO-04-22G:
PREFACE:
October 2003:
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 Benefit System
Requirements (JFMIP-SR-01-01, September 2001), to assist (1) agencies
in implementing and monitoring their benefit systems and (2) managers
and auditors in reviewing their benefit systems to determine if they
substantially comply with FFMIA. Among the types of benefit programs
covered by these systems would be those for retirement, disability,
death, survivor, and others not related to health care.
There is no requirement that this checklist be used in assessing
benefit 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
benefit system and whether the system, as a whole, substantially
complies with requirements.
This checklist exposure draft is available on the Internet on GAO's
home page (http://www.gao.gov) under "Other Publications" and the
subheading "Accounting and Financial Management." Copies of the JFMIP
document can be downloaded from the JFMIP Web site (http://
www.jfmip.gov) under "JFMIP Documents" and the subheading "System
Requirements.":
Signed by:
Jeffrey C. Steinhoff:
Managing Director:
Financial Management and Assurance:
CONTENTS:
Overview:
Overview: Authoritative Guidance:
Overview: How to Use This Checklist:
Benefit System Requirements:
Benefit System Requirements: Functional Requirements: Claims
Acceptance and Tracking:
Benefit System Requirements: Functional Requirements: Claims
Processing:
Benefit System Requirements: Functional Requirements: Claims
Processing: Administrative Process:
Benefit System Requirements: Functional Requirements: Claims
Processing: Eligibility Determination Processes:
Benefit System Requirements: Functional Requirements: Claims
Processing: Computational Processes:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Payee Information Maintenance Process:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Payment Warehousing Process:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Funds Availability Editing:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Commitments:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Obligations and Expenditures:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Analysis:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Payment Execution Process:
Benefit System Requirements: Functional Requirements: Benefit Payment
Administration: Payment Confirmation and Follow-up Process:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management: Recovery Receivable Establishment Process:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management: Recovery Receivable Servicing Process:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management: Collection Process:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management: Offset:
Benefit System Requirements: Functional Requirements: Recovery
Receivable Management: Funds Control:
Benefit System Requirements: Functional Requirements: Accounting for
Benefit Transactions:
Benefit System Requirements: Functional Requirements: Accounting for
Benefit Transactions: Entity Definition:
Benefit System Requirements: Functional Requirements: Accounting for
Benefit Transactions: Account Definition:
Benefit System Requirements: Functional Requirements: Accounting for
Benefit Transactions: Transaction Definition and Processing:
Benefit System Requirements: Functional Requirements: Accounting for
Benefit Transactions: Audit Trails:
Benefit System Requirements: Functional Requirements: Reporting:
Benefit System Requirements: Functional Requirements: Reporting:
External Reporting:
Benefit System Requirements: Functional Requirements: Reporting:
Internal Reporting:
Benefit System Requirements: Functional Requirements: Reporting:
Performance Reporting:
Benefit System Requirements: Functional Requirements: Reporting:
Compulsory Notifications:
Benefit System Requirements: Functional Requirements: Interfaces:
Benefit System Requirements: Functional Requirements: Interfaces:
Internal Interfaces:
Benefit System Requirements: Functional Requirements: Interfaces:
External Interfaces:
Benefit System Requirements: Functional Requirements: Quality
Assurance and Maintenance:
Benefit System Requirements: Functional Requirements: Technical
Functions:
Benefit System Requirements: Functional Requirements: Technical
Functions: General:
Benefit System Requirements: Functional Requirements: Technical
Functions: Security and Internal Controls:
Benefit System Requirements: Functional Requirements: Technical
Functions: Access to Information:
Benefit System Requirements: Functional Requirements: Technical
Functions: Data Entry:
Benefit System Requirements: Functional Requirements: Technical
Functions: Archiving and Purging:
Information Stores:
Information Stores: Application Information Stores:
Information Stores: Application Information Stores: Universal Data
Elements:
Information Stores: Application Information Stores: Federally
Administered Retirement Benefit Systems:
Information Stores: Application Information Stores: Federal Employment
Retirement Benefit Systems:
Information Stores: Application Information Stores: Disability
Benefits:
Information Stores: Application Information Stores: Death Benefits:
Information Stores: Application Information Stores: Survivor Benefits:
Information Stores: Other Benefits:
Information Stores: Other Benefits: Claimant Master Record Information
Store:
Information Stores: Other Benefits: Financial Information Store:
Figure 1: Agency Financial Management Systems Architecture:
Related GAO Products:
ABBREVIATIONS:
ACH: automated clearinghouse:
ALC: agency location code:
CDO: chief disbursing officer:
CFO: chief financial officer:
C.F.R.: Code of Federal Regulations:
CSRS: Civil Service Retirement System:
DCA: Debt Collection Act of 1982:
DCIA: Debt Collection Improvement Act of 1996:
DOD: Department of Defense:
DOL: Department of Labor:
EFT: electronic funds transfer:
FACTS: Federal Agencies' Centralized Trial Balance System:
FASAB: Federal Accounting Standards Advisory Board:
FERS: Federal Employees Retirement System:
FFMIA: Federal Financial Management Improvement Act of 1996:
FMS: Financial Management Service:
FFMSR: Federal Financial Management System Requirements:
GMRA: Government Management Reform Act of 1994:
GPRA: Government Performance and Results Act of 1993:
HHS: Department of Health and Human Services:
IVR: interactive voice response:
IRS: Internal Revenue Service:
JFMIP: Joint Financial Management Improvement Program:
OMB: Office of Management and Budget:
OPM: Office of Personnel Management:
RRB: Railroad Retirement Board:
SFFAS: Statement of Federal Financial Accounting Standards:
SGL: U.S. Standard General Ledger:
SSA: Social Security Administration:
SSN: Social Security number:
TAFS: Treasury account fund symbol:
TFM: Treasury Financial Manual:
TIN: taxpayer identification number:
TOP: Treasury Offset Program:
U.S.C.: United States Code:
VA: Department of Veterans Affairs:
OVERVIEW:
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) [FOOTNOTE 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 (including the benefit system
requirements), 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). [FOOTNOTE 2] Figure 1 is the JFMIP model that illustrates
how these systems interrelate in an agency's overall systems
architecture.
Figure 1: Agency Financial Management Systems Architecture:
[See PDF for image]
Source: JFMIP Benefit System Requirements (September 2001).
[End of figure]
To date, JFMIP has issued 13 of the 15 functional requirements shown in
figure 1. [FOOTNOTE 3]
We are issuing this checklist--which reflects JFMIP's first issuance of
the Benefit System Requirements (JFMIP-SR-01-01, September 2001)--to
assist (1) agencies in implementing and monitoring their benefit
system(s) and (2) managers and auditors in reviewing agency benefit
systems to determine if they substantially comply with FFMI:
A. Five categories of federal benefit programs covered by these system
requirements are retirement, disability, death, survivor, and a
catchall covering things such as education benefits.
This checklist is not a requirement. It is provided as a tool for use
by experienced staff. This checklist; the JFMIP source document; OMB
Circular A-127, Financial Management Systems; and OMB's Revised
Implementation Guidance for the Federal Financial Management
Improvement Act (FFMIA) of 1996, 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 benefit system and
whether the system, as a whole, substantially complies with
requirements.
Authoritative Guidance:
OMB Circular A-127 and OMB's January 4, 2001, Revised Implementation
Guidance for the Federal Financial Management Improvement Act provide
the basis for assessing compliance with the FFMIA requirements. The OMB
guidance identifies various criteria that an agency 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 Benefit
System Requirements (JFMIP-SR-01-01, September 2001). The JFMIP
document acknowledges that benefit system functionality does not
necessarily reside in a single software application or functional
system. In fact, benefit information may reside in or may be calculated
in a number of applications or systems. The benefit system described in
the JFMIP document may consist of all these applications and/or
systems, their interfaces, and the processes required to manage a
benefit properly. It should be noted that the checklist is based on the
existing published JFMIP standards and that changes in laws,
regulations, and standards and practices since the standards were
issued are not included in the checklist.
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 substantial compliance with system
requirements under FFMI:
A. 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 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 value-added 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 chief financial officers
(CFO) and inspectors general with a means for determining whether their
agencies' financial management systems substantially comply with
federal financial management system requirements. The annual reporting
required by 31 U.S.C. § 3512(d) is one means of assisting agencies in
determining of substantial compliance. Agencies can also use this
checklist as a tool to help determine compliance with federal financial
management system requirements.
Completing this checklist will allow agencies to systematically
determine whether specific systems requirements are being met. In
determining substantial compliance, agencies should assess the results
of the completed checklist based on the benefit 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 benefit system provides for the
capability described in the question. For each "Yes" answer, the third
column should contain a brief description of how the benefit 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 explanation and, where
applicable, a reference to any related supporting documentation (e.g.,
the agency is working on modifying or implementing its benefit system
to have the capability available in subsequent years; management
believes the capability is not cost-effective and will not enhance the
benefit system's ability to manage operations). 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 benefit system and the extent to which the "No" answers inhibit
the entire benefit 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.
BENEFIT SYSTEM REQUIREMENTS:
The benefit system requirements document provides high-level functional
requirements for benefit systems that can help financial managers,
program managers, and others control and account for federal benefit
programs as defined in government and agency-specific statutes,
regulations, guidelines, and need assessments. The benefit system
requirements document is divided into two major sections, "functional
requirements" and "information stores--required data elements," which
are described below.
1. Functional requirements identify the major activities that are
characteristic of the federal benefit system. A benefit system tracks
the life of benefit claims from initial receipt through final payment
and maintains a complete history of financial activity relating to
those claims. The federal benefit system primarily consists of nine
major functions and the data processed by those functions. The
functions identified by the JFMIP source document are (1) claims
acceptance and tracking, (2) claims processing, (3) benefit payment
administration, (4) recovery receivable management, (5) accounting for
benefit transactions, (6) reporting, (7) interfaces, (8) quality
assurance and maintenance, and (9) technical functions.
2. Information stores--required data elements refers to the grouping of
related types of data. The term information store (rather than database
or file) is used to avoid any reference to the technical or physical
infrastructure of the data storage medium. Actual data storage
(physical databases and files) must be determined by each agency during
system development and implemented based upon the benefit program's
statutory requirements as well as the agency's technical environment,
processing volumes, organizational structure, and degree of system
centralization or decentralization. The JFMIP source document divides
the required data elements into four major groupings. They are (1)
application information stores, (2) claimant master record store, (3)
program criteria store, and (4) financial information store.
The checklist questions follow the JFMIP source document, JFMIP-SR-01-
01, September 2001, and 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) of 1996,
issued January 4, 2001, will help ensure that the user is cognizant of
the background information necessary to fully understand the questions.
Functional Requirements: Claims Acceptance and Tracking:
1. Does the benefit system capture all applicable and mandatory data
elements (i.e., universal and appropriate) as specified in the
Application Information Stores section of the benefit systems
requirements document (JFMIP-SR-01-01)? M (p. 14); [FOOTNOTE 5]
2. Does the benefit system maintain all data elements specified in the
Application Information Stores section so information is readily
accessible through standard online queries [FOOTNOTE 6] or reports
until approval [FOOTNOTE 7] or denial of the claim? M (p. 14);
3. By fiscal year 2003, will the benefit system provide for electronic
acceptance of benefit applications? M (p. 14);
4. If an agency anticipates electronic receipt of 50,000 or more
submittals of a particular form, will the benefit system allow multiple
methods of electronic signatures for the submittal of each form,
whenever feasible and appropriate? M (p. 14);
Functional Requirements: Claims Acceptance and Tracking:
5. Does the benefit system provide for the electronic acknowledgment of
electronic forms that are successfully submitted? M (p. 14);
6. Does the benefit system capture various correspondences, including
due process requests submitted by various electronic mediums, and does
it automatically associate the correspondence with a specific claim
plan of action? M (p. 14);
7. For manually submitted correspondence, does the benefit system link
the correspondence for the required action to one of the following:
a. the specific application or:
b. the existing claimant master record? M (p. 14);
8. When electronic methods (e.g., Web-based communications) are used to
facilitate claim form acceptance, does the benefit system incorporate
input and completeness controls to ensure that only complete
applications [FOOTNOTE 8] are accepted by the system? M (p. 14);
9. Does the benefit system user have the ability to flag a claimant's
paper-based application as incomplete and to suspend further processing
of the application until it is properly completed as specified by
program requirements? M (p.14);
10. Does the benefit system store incomplete applications in accordance
with agency policies and automatically purge incomplete applications
after a specified period? M (p. 14);
11. For each claim, does the benefit system associate a unique
identifier (e.g., initials or user code) of the employee assigned to
review the claim? M (p.14);
12. Does the benefit system utilize an alternative application
procedure that accommodates persons with disabilities? M (p.14);
13. Does the benefit system provide capabilities to track the status of
due process or other appeal proceedings, when applicable, after an
initial claim has been denied? M (p.14);
14. Does the benefit system maintain a record of pending claims and the
status of other information, including:
a. where in the process an ongoing claim is located,
b. who is holding the claim,
c. what actions are needed to complete the claim,
d. whether additional information is needed, and:
e. accommodation of explanation codes to indicate the reason why the
claim is pending? V (p. 15);
15. Does the benefit system allow the user to update the status of
pending claims and other information? V (p. 15);
Functional Requirements: Claims Processing: Administrative Process:
16. Does the benefit system utilize claimant data that have been
submitted electronically automatically without manual intervention? M
(p. 15);
17. Does the benefit system have the ability to date and time stamp due
process requests and other time-sensitive correspondence that have been
received through electronic mediums? M (p. 15);
18. Does the benefit system accommodate automated case workload
distribution by providing for various claim routing options [FOOTNOTE
9] as determined and maintained by the system administrator? M (p. 15);
19. Does the benefit system indicate if the benefit payment calculation
or verification thereof has occurred manually? M (p. 15);
20. Does the benefit system either provide the user with the ability to
update a claimant's master record with the results of a manual claim
validation or manual verification of the benefit amount or allow for
the creation of a new master record, if none exists? M (p. 15);
21. Does the benefit system have the ability to capture the information
needed from the claimant in order to complete an incomplete claim? M
(p. 15);
22. Does the benefit system provide for electronic approvals of claims
at all levels of the approval process, whenever feasible? M (p. 15);
23. Does the benefit system incorporate a notification mechanism that
informs users (i.e., claim evaluators and supervisors) when an
application has not completed processing within a time frame that can
be specified by the agency? M (p. 15);
24. Does the benefit system facilitate user queries [FOOTNOTE 10] on
individual claims? M (p. 16);
25. Does the benefit system accommodate explanation codes to indicate
why a claim has been denied? M (p. 16);
26. Does the benefit system automatically create a claimant master
record [FOOTNOTE 11] using the claimant information for initial claims
that are approved, when a master record for the claimant did not
previously exist? M (p. 16);
27. Does the benefit system automatically update an existing claimant
master record [FOOTNOTE 12] to reflect the status (i.e., pending,
approved, or rejected) of additional claims for other benefits the
agency administers that are sought by the claimant? M (p. 16);
28. Does the benefit system automatically merge the mandatory claimant
data maintained in the application information stores [FOOTNOTE 13]
into the appropriate master record after a claim has been approved and
a claimant master record has been established? M (p. 16);
29. Does the benefit system provide capability to generate statistics
on approved and rejected claim applications? M (p. 16);
30. Does the benefit system provide capabilities to accept, identify,
track, and report manual overrides of system-generated acceptance/
rejection recommendations? M (p. 16);
31. Does the benefit system allow a user, who has proper access, to
reverse or affirm an initial decision regarding the denial of a benefit
and process the claim accordingly? M (p. 16);
32. Does the benefit system provide capabilities to review all prior
employee notations or decisions made while processing a benefit claim?
M (p. 16);
33. Does the benefit system provide capabilities to record an estimated
completion date for pending claims? V (p. 16);
34. Does the benefit system have the ability, where multiple claims
exist for the same claimant, to process the claims sequentially based
on order of precedence? V (p. 16);
Functional Requirements: Claims Processing: Eligibility Determination
Processes:
35. Does the benefit system have the ability to automatically compare
information contained in application(s) that have been submitted by a
claimant against agency program eligibility criteria (i.e., screen
applications for eligibility)? M (p. 16);
36. Does the benefit system have the ability to accept the manual
validation of a claim? M (p. 16);
37. Does the benefit system have the ability to provide for maintaining
separate eligibility criteria and processing routines by type of claim?
M (p. 16);
38. Does the benefit system provide for the establishment of various
age limitations, depending on the type of benefit, for automatic
verification of program eligibility? [FOOTNOTE 14] M (p. 16);
39. Does the benefit system have the ability to cross-validate
applicant information against data maintained for other benefit payment
programs? [FOOTNOTE 15] M (p. 17);
40. Does the benefit system provide features to indicate that an
applicant has submitted the required evidence? [FOOTNOTE 16] M (p. 17);
41. Does the benefit system provide features to create and maintain a
system record of accepted and rejected claim applications? M (p. 17);
42. Does the benefit system provide tools to check the appropriate data
files to determine whether the applicant has submitted a duplicate
application or had a recent benefit application rejected? M (p. 17);
43. Whenever legally permitted, does the benefit system provide
features to determine whether payments being made to the claimant in
relation to other internal benefit payment programs affect the
claimant's eligibility or payment amount for the benefit under
consideration? M (p. 17);
44. Does the benefit system allow the user to suspend processing of a
claim while verifying questionable information and to release the
suspended status as appropriate? M (p. 17);
45. Does the benefit system provide the ability to inform an applicant
of potential eligibility for other internal benefit payment programs? V
(p. 17);
46. Does the benefit system have the ability to automatically validate
survivor applicant information against information about the deceased/
former spouse or related former guardian that is maintained in a master
record database? V (p. 17);
47. When permitted by statute, does the benefit system automatically
validate dates of employment, earnings, and other claimant-specific
data provided on the application for benefits against the work history
and earnings information reported to central agencies such as the
Internal Revenue Service (IRS), Social Security Administration (SSA),
and Office of Personnel Management (OPM)? V (p. 17);
Functional Requirements: Claims Processing: Computational Processes:
48. Does the benefit system have the ability to determine if the
effective date of the claim has been reached, [FOOTNOTE 17] and does it
have the ability to initiate subsequent processing? M (p. 17);
49. Does the benefit system provide features to compute the amount of
both recurring and nonrecurring benefit payments based on all available
information? [FOOTNOTE 18] M (p. 17);
50. Does the benefit system determine the ending date for recurring
payments of limited duration? M (p. 17);
51. When processing an approved claim for benefits, such as retirement,
disability, death, survivor, and other claims, does the benefit system
calculate the amount of recurring payment, or does it capture the
amount of the claimant's recurring payment that has been determined
externally? M (p. 17);
52. Does the benefit system provide flexibility in maintaining pay
rates? [FOOTNOTE 19] M (p. 17);
53. Does the benefit system provide for adjusting the amount of payment
when the claimant is receiving offsetting monetary amounts? [FOOTNOTE
20] M (p. 17);
54. For federal and uniformed service retirement systems, does the
benefit system identify whether the claimant retired under provisions
of a voluntary separation incentive, and does it capture the amount of
the incentive? M (p. 18);
55. For federal and uniformed service retirement systems, does the
benefit system compute the base amount of retirement pay by determining
the "highest paid 36 [FOOTNOTE 21] months of paid service?" M (p. 18);
56. Does the benefit system determine the creditable years of service
based on dates of employment or active military service? M (p. 18);
57. Does the benefit system provide features to calculate the
claimant's and/or related dependent's age based on the birth date
provided in an application or other verified source for subsequent use
in determining claimant eligibility? M (p. 18);
58. Does the benefit system provide for user defined reasonableness or
tolerable limit checks on the amounts of benefit payments that are
calculated by the system? M (p. 18);
59. Does the benefit system flag or suspend processing of a claim that
fails reasonableness edits to facilitate manual verification of the
amount computed? M (p. 18);
60. Does the benefit system enable approved users to resume processing
a claim that was suspended for failing a reasonableness edit once it
has been verified as accurate? M (p. 18);
61. Does the benefit system allow a user to initiate the calculation of
a claimant's benefit amount at any time based on claimant data existing
at the time the request is made? M (p. 18);
62. Does the benefit system have the ability to record the amount of
manually computed benefit payments? M (p. 18);
63. Does the benefit system provide for an automatic system-initiated
calculation or recalculation of benefit amount by claim type that is
based on a specific user-defined event, such as claim validation and
approval, court order, or claimant-initiated withholding change? M (p.
18);
64. Does the benefit system provide for automated routines that access
claimant master record data to facilitate calculating the amount of
benefits due claimants? M (p. 18);
65. Does the benefit system provide features to calculate and send
overpayment information [FOOTNOTE 22] to the receivables and
collections subsidiary ledger? M (p. 18);
Functional Requirements: Benefit Payment Administration: Payee
Information Maintenance Process:
66. Does the benefit system maintain payee information that includes
data to support obligation, accounts payable, and disbursement
processes? M (p. 19);
67. Does the benefit system support payments made to parties who act as
agents for the payee without changing permanent claimant information
that is maintained in the claimant's master record, such as the
claimant's name, address, or financial institution? M (p. 19);
68. Does the benefit system allow the user to capture the current tax
status, number of exemptions, and other information requested on
applicable IRS withholding forms (i.e., W-4P, W-4S, and W-4V)? M (p.
19);
69. Does the benefit system maintain detailed information for each
payee to comply with IRS reporting requirements? [FOOTNOTE 23] M (p.
19);
70. Does the benefit system provide the capability to automatically
update payee records to reflect changes related to the automated
clearinghouse (ACH) or electronic funds transfer (ETF)? [FOOTNOTE 24] M
(p. 19);
71. Does the benefit system, at a minimum, accumulate actual payments
for each payee annually? M (p. 19);
72. Does the benefit system provide search capability for payee
information (e.g., payee name)? M (p. 19);
73. Does the benefit system produce payee lists based on agency-defined
criteria (e.g., payee name and SSN)? M (p. 19);
74. Does the benefit system maintain, as part of the claimant's master
record, a complete history of all financial transactions executed for
each payee receiving benefits under the claim holder's master record?
[FOOTNOTE 25] M (p. 20);
75. For all active payees, does the benefit system make the financial
transaction history data of the most recent 18 months available for
online query and review? M (p. 20);
76. Does the benefit system allow for maintaining deposit account
information on at least two financial institutions for a single payee?
V (p. 20);
Functional Requirements: Benefit Payment Administration: Payment
Warehousing Process:
77. Does the benefit system have the ability to determine whether the
benefit payment is a nonrecurring payment? M (p. 20);
78. Does the benefit system automatically determine the due date and
amount of benefit payments? M (p. 20);
79. Does the benefit system reestablish payables for voided checks or
EFTs that were not successful? M (p. 20);
80. Does the benefit system allow for reversing the accounting
transaction leading to the disbursement and reestablishing a payable,
as appropriate? M (p. 20);
81. Does the benefit system allow anticipated obligation or expenditure
transactions so that documents may be entered early, stored, and posted
at the appropriate date? V (p. 20);
82. Does the benefit system subject these documents to edit and
validation procedures [FOOTNOTE 26] prior to posting? V (p. 20);
83. If the anticipated obligation does not occur, does the benefit
system permit the user to delete the transaction without posting it? V
(p. 20);
Functional Requirements: Benefit Payment Administration: Funds
Availability Editing:
84. Does the benefit system allow for the recording of funding
transactions? [FOOTNOTE 27] M (p. 21);
85. Does the benefit system include adequate controls to prevent
recording obligations or expenditure transactions that exceed available
balances? M (p. 21);
86. Does the benefit system also support recording obligations or
expenditures that exceed available balances based on proper management
approval? [FOOTNOTE 28] M (p. 21);
87. Does the benefit system provide for designated authorities to
establish and modify the system's response [FOOTNOTE 29] to the failure
of a funds availability edit? M (p. 21);
88. Does the benefit system record the financial impact of all
transactions that affect the availability of funds, such as
commitments, obligations, expenditures, and the establishment of, and
collections against, recovery receivables? M (p. 21);
89. Does the benefit system automatically update all appropriate
budgetary tables and ledger account balances (when applicable) to
ensure that the system always maintains and reports the current status
of funds for all open accounting periods? M (p. 21);
90. Does the benefit system provide for designated authorities to
establish and modify the level of funds control using the elements of
the classification structure, including object class, program,
organization, project, and fund? V (p. 21);
91. Does the benefit system provide the ability to produce an online
status of funds report down to the lowest level of the organizational
structure, including amounts available or allotted, open commitments,
open obligations, expenditures, and balance available? V (p. 21);
Functional Requirements: Benefit Payment Administration: Commitments:
92. Does the benefit system allow commitment transactions to be entered
online from multiple locations? V (p. 21);
93. Does the benefit system maintain information related to each
commitment transaction? [FOOTNOTE 30] V (p. 21);
94. Does the benefit system provide for modifications to commitment
transactions, including ones that change the dollar amount or the
accounting classification elements cited? V (p. 22);
95. Does the benefit system allow for commitment transactions to be
future-dated, stored, and posted on the appropriate date? V (p. 22);
96. Does the benefit system close open commitments under the following
circumstances:
a. by the system upon issuance of an obligating document,
b. by an authorized user, and:
c. as part of the year-end closing if the commitment is in an annual
appropriation or in the last year of a multiyear appropriation? V (p.
22);
97. Does the benefit system provide the capability to support
commitment accounting based on agency needs? V (p. 22);
Functional Requirements: Benefit Payment Administration: Obligations
and Expenditures:
98. Does the benefit system update budgetary tables to reflect
obligations based on obligating documents and liquidate, at the user's
request, the related commitments, either partially or fully? M (p. 22);
99. Does the benefit system update budgetary tables to reflect
obligations for which there are no related commitments? M (p. 22);
100. Does the benefit system maintain information related to each
obligation document, including amendments? M (p. 22);
101. At a minimum, does the benefit system capture the following:
a. obligating document number and type,
b. accounting classification elements, as appropriate,
c. referenced commitment, if applicable,
d. other identification, including benefit payee SSN or TIN, and:
e. dollar amounts? M (p. 22);
102. Does the benefit system allow obligation documents to be entered
online and from multiple locations? M (p. 22);
103. Does the benefit system allow authorized modifications and
cancellations of posted obligation documents? M (p. 22);
104. Does the benefit system provide online access to all unliquidated
obligations by selection criteria (e.g., document number)? M (p. 22);
105. Does the benefit system maintain an online history file of closed-
out documents for a user-defined period? M (p. 22);
106. Does the benefit system close open obligating documents to
accommodate both of the following circumstances:
a. automatically when classifying an unliquidated obligation to an
expenditure, or:
b. by an authorized user? M (p. 22);
107. Does the benefit system allow multiple commitments to be combined
into one obligation or expenditure document and one commitment document
to be split into various obligating or expenditure documents? V (p.
22);
Functional Requirements: Benefit Payment Administration: Analysis:
108. Does the benefit system maintain current information on
obligations according to the classification elements established by the
agency on a fund-by-fund basis? M (p. 23);
109. Does the benefit system sort and provide online access to both
summary level and detailed information, based on the defined level of
funds control, for those transactions that represent obligations and
expenditures? M (p. 23);
110. Does the benefit system provide control features that ensure the
amounts reflected in the fund control structure agree with the general
ledger account balances at the end of each update cycle? M (p. 23);
111. Does the benefit system track the use of funds against operating
or financial plans? V (p. 23);
Functional Requirements: Benefit Payment Administration: Payment
Execution Process (Agencies with Delegated Disbursing Authority):
112. If the agency has delegated disbursing authority, [FOOTNOTE 31]
does the benefit system support of the reporting and other requirements
specified in volume I of the Treasury Financial Manual (TFM), Part 4,
as exemplified by the following?
a. Report all disbursements made under the delegation in the agency's
payment accounting reports to the Financial Management Service (FMS)
using the appropriate agency accounting codes, as authorized by FMS.
[FOOTNOTE 32]
b. Submit timely, accurate check issuance data to FMS no later than the
close of business of the week in which the issue dates occur and at
month's end. [FOOTNOTE 33]
c. Comply with applicable Treasury offset guidelines established under
the authority of 31 U.S.C. § 3716(c). [FOOTNOTE 34]
d. Comply with FMS guidelines concerning applicable requirements, to
include a payee's TIN on payment vouchers in accordance with 31 U.S.C.
§ 3325(d). [FOOTNOTE 35]
e. Comply with all applicable EFT system requirements, including those
related to message authentication and enhanced security, unless
explicitly waived in writing by the chief disbursing officer (CDO). M
(pp. 23 & 24);
Functional Requirements: Benefit Payment Administration: Payment
Execution Process: (All Other Agencies);
113. Does the benefit system automatically identify and select payments
to be disbursed in a particular payment cycle based on their due dates?
[FOOTNOTE 36] M (p. 24);
114. Does the benefit system provide a function for review and
certification by an authorized certifying officer? M (p. 24);
115. Does the benefit system allow changes to payment schedules by
authorized staff prior to acceptance by the disbursing office? M (p.
24);
116. Does the benefit system allow specific payments selected for
disbursement to be excluded from the payment cycle and held for later
payment? M (p. 24);
117. Does the benefit system automatically distinguish taxable benefit
payments from nontaxable payments? M (p. 24);
118. Does the benefit system automatically compute net amounts to be
disbursed after taking into account the following:
a. withholdings,
b. interest,
c. garnishments,
d. other offsets, as needed, in accordance with applicable regulations?
M (p. 24);
119. Does the benefit system also generate the appropriate transactions
to reflect the computed deductions and additions? M (p. 24);
120. Does the benefit system collect information on interest paid, if
applicable, and record the amounts to the proper ledger account? M (p.
24);
121. Does the benefit system calculate totals by agency location code
(ALC) and Treasury account fund symbol (TAFS) for inclusion on the
payment schedule? M (p. 24);
122. Does the benefit system sort individual payment detail by TAFS to
enable SF-224 reconciliation? M (p. 24);
123. Does the benefit system provide for various forms of payment to be
used (e.g., check or EFT)? M (p. 24);
124. Does the benefit system support Treasury-specific standards for
format of check and EFT payment requests? M (p. 24);
125. Does the benefit system automatically update payment records based
on updates recorded in the payee's master record, such as changes of
address or changes in deposit account information? M (p. 24);
126. Does the benefit system allow a payment request to be removed from
the automated scheduling stream and scheduled as a manual payment by an
authorized official? M (p. 24);
127. Does the benefit system allow the user to trigger an immediate
benefit payment for "emergency" situations? [FOOTNOTE 37] M (p. 24);
128. Does the benefit system provide the capability to schedule and
make payments in various forms [FOOTNOTE 38] as required by an agency's
disbursing offices, including physical media? [FOOTNOTE 39] M (p. 24);
129. Does the benefit system allow for cancellation of an entire
payment schedule, or a single payment within a schedule, after payments
are scheduled and prior to actual disbursement by Treasury? M (p. 24);
130. Does the benefit system provide offset features, if applicable, to
reduce the payment amount due a claimant in accordance with applicable
laws, regulations, and provisions of the Treasury Offset Program (TOP)?
M (p. 24);
131. Does the benefit system properly record the impact [FOOTNOTE 40]
of the entire amount of the transaction in both budgetary and
proprietary terms? M (p. 24);
132. Does the benefit system provide for reissuing payments for
misplaced payments and lost or stolen checks? M (p. 24);
133. Does the benefit system automatically consolidate amounts due a
benefit claimant when the claimant is entitled to more than one benefit
administered by the same agency? V (p. 25);
134. Does the benefit system itemize per Treasury specifications all
payments covered by one check or EFT on a payment advice or addendum to
the EFT file? V (p. 25);
135. Does the benefit system allow for the splitting of a single
benefit payment into separate bank accounts (i.e., allotments)
[FOOTNOTE 41] as indicated on the claimant's direct deposit request
form? V (p. 25);
136. Does the benefit system provide for making payments in a foreign
currency? V (p. 25);
Functional Requirements: Benefit Payment Administration: Payment
Confirmation and Follow-up Process:
137. Does the benefit system update master record information resulting
from payments made by the core system, if applicable? M (p. 25);
138. If original checks are lost, stolen, or destroyed, does the
benefit system allow the user to record the outcome of the Treasury
search when recertified checks are issued? M (p. 25);
139. Does the benefit system 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 the appropriate disbursing office, and:
c. payment issued by the appropriate disbursing office? M (p. 25);
140. Does the benefit system provide for comparison of the agency's
payment schedule and the disbursing office's accomplished schedule? M
(p. 25);
141. Does the benefit system update the payment information when
confirmation is received from the disbursing office, including the paid
schedule number, check numbers or trace numbers, date and amount of
payment, and payment method? M (p. 25);
142. Does the benefit system maintain a history of every payment,
including the following information:
a. authorizing document number,
b. payment schedule number,
c. payment date,
d. payment address, and:
e. TAFS charged? M (p. 25);
143. Does the benefit system provide online access to claimant and
payment information? M (p. 25);
144. Does the benefit system provide online access to open documents
based on agency selection criteria? M (p. 25);
145. Does the benefit system produce IRS 1099s in IRS acceptable form
[FOOTNOTE 42] when required by IRS regulations? [FOOTNOTE 43] M (p.
25);
146. Does the benefit system automatically liquidate the related
liability or the in-transit amount when payment confirmation updates
the system? M (p. 25);
Functional Requirements: Recovery Receivable Management: Recovery
Receivable Establishment Process:
147. Does the benefit system record the establishment of receivables in
the claimant's master record? M (p. 26);
148. Does the benefit system provide for the establishment of
receivables in other systems, such as centralized accounts receivable
systems, that are based on individual claim holder debts? M (p. 26);
149. Does the benefit system provide the capability for a user to
select the reason the receivable is being recorded from a domain of
recognized reasons? M (p. 26);
150. Does the benefit system support the establishment and tracking of
receivables to be paid under installment plans, including plans for
which payments have been rescheduled? M (p. 26);
151. Does the benefit system provide the capability for a user to
record the beginning and ending dates of the payment period as well as
the frequency and amount of each payment? M (p. 26);
152. Does the benefit system calculate, generate, and post the required
ledger entries for receivables resulting from duplicate payments or
erroneous payments as well as the corresponding expenditure reductions
or other offsets? M (p. 26);
153. Does the benefit system print bills accommodating the generation
of standard forms and turnaround documents (i.e., as a remittance
advice)? M (p. 26);
154. Does the benefit system allow customized text in generated billing
documents? M (p. 26);
155. Does the benefit system provide features to notify overpaid
individuals (or a claimant's estate) of the following:
a. the amount overpaid and how and when overpayment occurred,
b. the right to appeal the overpayment determination,
c. the required recovery, and:
d. the right to request a waiver of recovery? M (pp. 26 & 27);
156. Does the benefit system record adjustments, both increases and
decreases (i.e., noncash credits), and post them to a claimant's master
record? M (p. 27);
157. Does the benefit system date the bills with the system-generated
date or with the date provided by the authorized user? M (p. 27);
158. Does the benefit system accept transactions that generate
receivables from other systems in a standard format for entry into the
benefits system? M (p. 27);
159. Does the benefit system print statements as well as bills? V (p.
27);
Functional Requirements: Recovery Receivable Management: Recovery
Receivable Servicing Process:
160. Does the benefit system maintain detailed information by account
(i.e., individual) sufficient to provide audit trails and to support
billing and research activities? M (p. 27);
161. Does the benefit system update each master record when billing
documents are generated and collections are received? M (p. 27);
162. Does the benefit system provide online query capability to
receivable and account information? M (p. 27);
163. Does the benefit system provide information concerning the age of
receivables, on a summary basis as well as an individual basis, to
allow for management and prioritization of collection activities? M (p.
27);
164. Does the benefit system provide automatic calculation and
assessment of interest, administrative charges, and penalty charges, as
applicable, on overdue receivables? M (p. 27);
165. Does the benefit system allow for the waiver of the charges with
appropriate authority? M (p. 27);
166. Does the benefit system identify and report receivables that meet
predetermined criteria for bad debt provisions or write-off? M (p. 27);
167. Does the benefit system maintain data for receivables referred to
other federal agencies and/or outside organizations for collections? M
(p. 27);
168. Does the benefit system automatically initiate transactions to
record the write-off of delinquent or uncollectible receivables
(including interest, penalties, and administrative charges) based on
user-defined criteria? M (p. 27);
169. Does the benefit system also maintain data to monitor closed
accounts? M (p. 27);
170. Does the benefit system produce dunning (collection) letters for
overdue receivables in accordance with Treasury requirements and
existing legislation? M (p. 27);
171. Does the benefit system allow authorized users to customize the
dunning process parameters and dunning letter text? M (p. 27);
172. Does the benefit system provide information to allow either manual
or automated reporting of delinquent accounts to commercial credit
bureaus and referral to collection agencies or other appropriate
governmental organizations? M (p. 27);
173. Does the benefit system maintain information needed to support
reporting required by IRS? M (p. 27);
174. Does the benefit system maintain a history of billings and
receipts for each receivable and account in accordance with agency
requirements? M (p. 28);
175. Does the benefit system match receipts to the appropriate
receivables and update system balances? M (p. 28);
176. Does the benefit system provide the ability to apply receipts to
more than one receivable? M (p. 28);
177. Does the benefit system update receivable balances document by
document, classifying and posting against principal, interest, and
administrative fees as required by OMB Circular A-129, [FOOTNOTE 44]
Managing Federal Credit Programs? M (p. 28);
178. Does the benefit system identify receivables that have been
reduced by some means other than cash collections, such as waivers or
write-offs? M (p. 28);
179. Does the benefit system provide for reestablishment of a
receivable for checks returned due to insufficient funds? M (p. 28);
Functional Requirements: Recovery Receivable Management Collection
Process:
180. Does the benefit system record complete and partial receipts
according to the Debt Collection Act of 1982 (DCA), Debt Collection
Improvement Act of 1996 (DCIA), as well as any applicable regulations?
M (p. 28);
181. Does the benefit system record deposits and related debit vouchers
for reconciliation to deposit confirmation information provided by
Treasury or the banking system? M (p. 28);
182. Specifically, does the benefit system provide the user the
capability to record the deposit ticket or debit voucher document
amount, number, and date? M (p. 28);
183. If a claimant's master record is located when recording a deposit,
does the benefit system provide the capability to display all active
receivable accounts of record that are related to the claimant? M (p.
28);
184. If a user is not able to locate an existing receivable in the
master record of the person making a payment and the document being
recorded is a deposit ticket item, does the benefit system provide the
capability to associate the collection of funds to the claimant's
master record, if one exists? M (p. 28);
185. Does the benefit system provide features to record the method of
recovery? [FOOTNOTE 45] M (p. 28);
186. In order to suspend collection activities associated with the
receivable, does the benefit system provide the capability to flag a
claimant's receivable record to reflect due process status? M (p. 28);
187. Does the benefit system automatically allow collection activities
to resume when due process has expired or the flag has been reversed? M
(p. 28);
188. Does the benefit system capture whether the receivable has been
petitioned or discharged in connection with bankruptcy proceedings? M
(p. 28);
189. Does the benefit system provide for processing cash or credit card
receipts against outstanding receivables? V (p. 28);
Functional Requirements: Recovery Receivable Management: Offset:
190. Does the benefit system provide the ability to report overdue
receivables with associated SSN or TIN data to Treasury for possible
offset? M (p. 29);
191. Does the benefit system allow for offset of funds due to
delinquent indebtedness through the following:
a. administrative offset,
b. federal employee salary offset, and:
c. income tax refund offset? M (p. 29);
192. Does the benefit system comply with the requirements of the IRS
Tax Refund Offset Program and TOP requirements? M (p. 29);
193. Does the benefit system provide the capability for a user to
record the effective date of the offset plan? M (p. 29);
194. Does the benefit system incorporate logic to reflect the legal
authority as to whether the payment type may be reduced by offset or is
exempt from TOP or other offsets? M (p. 29);
195. Can the benefit system exclude certain receivables [FOOTNOTE 46]
automatically from the offset function? M (p. 29);
196. Does the benefit system automatically subject receivables to
offset, which had been previously excluded because of due process and
bankruptcy status, once status has been resolved? M (p. 29);
197. Does the benefit system provide the capability for a user to
select from a domain of offset program participants? [FOOTNOTE 47] V
(p. 29);
198. If the desired offset program recipient does not exist as a
participant, does the benefit system provide the capability for the
user to create a participant record? V (p. 29);
199. When a retirement account has both garnishment and former spouse
deductions, does the benefit system identify bankruptcy debt so that it
is bypassed when computing the legally mandated 65 percent maximum
deduction amount? V (p. 29);
Functional Requirements: Recovery Receivable Management: Funds
Control:
200. Does the benefit system properly record the budgetary effect on
U.S. Standard General Ledger (SGL) balances for all transactions
typically involved with receivable management? [FOOTNOTE 48] M (p. 30);
Functional Requirements: Accounting for Benefit Transactions: Entity
Definition:
201. Does the benefit system allow for recording transactions in
multiple TAFS and various fund types? [FOOTNOTE 49] M (p. 30);
202. Does the benefit system accommodate reporting for multiple
programs within a TAFS, based on accounting classification elements?
[FOOTNOTE 50] M (p. 30);
Functional Requirements: Accounting for Benefit Transactions: Account
Definition:
203. Does the benefit system use account titles consistent with the
account titles provided in the SGL? M (p. 31);
204. Does the benefit system use account definitions consistent with
the account definitions provided in the SGL? M (p. 31);
205. Does any expansion in the chart of accounts roll up to the
accounts as defined in the SGL? [FOOTNOTE 51] M (p. 31);
206. Does the benefit system provide subsidiary ledger support for SGL
accounts? M (p. 31);
207. Does the benefit system also support reconciliation of SGL control
accounts to their respective subsidiary records by accounting period? M
(p. 31);
208. Does the benefit system provide the capability to create
additional subaccounts to the general ledger for agency-specific
tracking and control? M (p. 31);
209. Do these subaccounts roll up to the SGL accounts? M (p. 31);
Functional Requirements: Accounting for Benefit Transactions:
Transaction Definition and Processing:
210. Does the benefit system use standard transactions to record
accounting events and to control the related updating of other
information [FOOTNOTE 52] maintained in the system? M (p. 31);
211. Does the benefit system allow standard transactions, including
system-generated transactions, to be established, modified, or deleted
by authorized personnel? M (p. 31);
212. Does the benefit system allow changes to be traced? M (p. 31);
213. Does the benefit system generate and post compound debit and
credit entries to the SGL accounts? M (p. 31);
214. Does the benefit system update both budgetary and proprietary SGL
accounts based on a single input transaction? M (p. 31);
215. Does the benefit system provide the capability to add, modify, and
maintain editing and posting rules through systems tables controlled by
authorized personnel? M (p. 31);
216. Does the benefit system perform integrity checks on batches
received via interfaces? M (p. 31);
217. Do the integrity checks include batch numbers to detect duplicate
or skipped batches and the validity of header and trailer records?
[FOOTNOTE 53] M (p. 31);
218. Does the benefit system process transactions consistent with SGL
account descriptions and postings? M (p. 31);
219. Does the benefit system process system-generated transactions,
such as the following:
a. automated payment scheduling,
b. accruals,
c. closing entries,
d. recurring payments, and:
e. transactions that generate other transactions in those cases in
which a single transaction is not sufficient? M (p. 32);
220. Does the benefit system automatically liquidate, partially or in
full, balances of preceding documents when entering dependent
documents? M (p. 32);
221. Is this capability used in the liquidation of commitments,
obligations, payables, receivables, or other items, as appropriate?
[FOOTNOTE 54] M (p. 32);
222. Does the benefit system provide control over the correction and
reprocessing of all erroneous transactions through the use of error
files or suspense accounts? M (p. 32);
223. Are erroneous transactions maintained and tracked until corrected,
posted, or deleted at the specific request of an authorized user? M (p.
32);
224. Does the benefit system support management controls to ensure the
following?
a. Transactions are processed in accordance with government and agency-
prescribed standards and procedures.
b. The integrity of data in the system is maintained.
c. Access is restricted to authorized users. M (p. 32);
225. Does the benefit system provide transaction edits that control, at
a minimum, fund availability, account structure, and tolerance levels
between related transactions, such as between an obligation and its
related accrual? M (p. 32);
226. Does the benefit system provide controls to prevent the creation
of duplicate transactions? M (p. 32);
227. Does the benefit system post to the current and prior accounting
months concurrently until the prior month closing? M (p. 32);
228. Does the benefit system maintain and provide online queries and
reports on balances separately for the current and prior months? M (p.
32);
229. At a minimum, does the benefit system maintain balances online for
both the current and prior months until the prior month closing? M (p.
32);
230. Does the benefit system provide the capability to enter and store
for future processing any transactions in the current month for
processing in the subsequent month? V (p. 32);
Functional Requirements: Accounting for Benefit Transactions: Audit
Trails:
231. Does the benefit system provide audit trails to trace transactions
from the following:
a. source documents,
b. original input,
c. other systems,
d. system generated transactions, and:
e. internal assignment transactions through the system? M (p. 32);
232. Does the benefit system provide transaction details to support
account balances? M (p. 32);
233. Does the benefit system provide audit trails to trace source
documents and transactions through successive levels of summarization
to the financial statements and reverse? M (p. 32);
234. Does the benefit 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. 32);
235. Does the benefit system provide for all types of transactions the
capability to select items for review based on user-defined criteria?
[FOOTNOTE 55] M (p. 32);
236. Does the benefit system provide audit trails that identify the
following actions by the originator:
a. document input,
b. changes,
c. approvals, and:
d. deletions? M (p. 32);
237. Does the benefit system provide the capability to record the user
identification, date, and time updated for each transaction affecting
the general and subsidiary accounts? M (p. 33);
Functional Requirements: Reporting: External Reporting:
238. Does the benefit system maintain accounting data to support
reporting in accordance with FASAB accounting standards and OMB and
Treasury reporting requirements? [FOOTNOTE 56] M (p. 33);
239. Does the benefit system provide summarized data electronically to
systems used by the agency for decision support? M (p. 33);
240. Does the benefit system provide for the preparation of external
reports, such as those required by Treasury and OMB? [FOOTNOTE 57] M
(p. 33);
241. Does the benefit system report events and transactions according
to the accounting classification elements established and within a
given accounting period? [FOOTNOTE 58] M (p. 34);
242. Does the benefit system maintain the information required for
program performance, financial performance, and financial management
performance measures needed for budgeting, program management, and
financial statement presentation? M (p. 34);
243. Does the benefit system provide the capability to produce all
relevant reports, statements, or returns required by IRS, including
year-end 1099 statements? M (p. 34);
244. Does the benefit system allow a user to request a reissued tax
statement for the current or previous year? M (p. 34);
245. Does the benefit system provide for an automated methodology of
data manipulation and data exportation? V (p. 34);
246. Does the benefit system provide for automatic translation of
foreign currency payments based on the exchange rate specified by the
user? [FOOTNOTE 59] V (p. 34);
247. Does the benefit system allow a user to request a reissued tax
statement for the previous 3 years? V (p. 34);
Functional Requirements: Reporting: Internal Reporting:
248. Does the benefit system provide for the production of formatted
reports? M (p. 34);
249. Does the benefit system allow for the reformatting of reports to
allow for the following attributes:
a. the presentation of different sorts of information,
b. the presentation of only specific information in the format
selected,
c. the summarization of data, and:
d. the modification of report formats to tailor the reports to the
specific requirements of the user? M (p. 34);
250. Does the benefit system provide for program cost accounting data
to support reporting requirements specified in OMB Bulletin No. 01-09,
Form and Content of Agency Financial Statements? M (p. 34);
251. Does the benefit system provide for program cost accounting data
to support the decision-making process in managing an agency's
programs, which includes the following features?
a. Cost reports to be used in the analysis of programmatic activities.
b. Schedules and operating statements based on the accounting
classification elements and agency criteria.
c. Meaningful cost information needed to support performance measures.
d. Ability to transfer cost information directly to and from other
systems. M (p. 34);
252. Does the benefit system determine the cost of information for
comparison to other program data to determine compliance with planned
budgeted activities? V (p. 35);
253. Does the benefit system support the use of historical data to
conduct variance analysis? V (p. 35);
Functional Requirements: Reporting: Performance Reporting:
254. Does the benefit system provide features to compute and maintain
performance trends, such as the following?
a. Number and dollar value of benefit payments made.
b. Average benefit payment.
c. Benefit payments made by operating levels and geographic region. M
(p. 35);
255. Does the benefit system provide features to compute and maintain
efficiency measures to help determine the effective use of agency
resources, [FOOTNOTE 60] such as the following measurements?
a. Number of applications processed.
b. Number of awards.
c. Number of denials. M (p. 35);
256. Does the benefit system provide features to compute, for the
entire claimant population, the length of time claimants have received
benefits? [FOOTNOTE 61] M (p. 35);
257. Does the benefit system provide features to automatically compute
and maintain efficiency measures such as the following?
a. Administrative cost per application approved.
b. Time required to process a claim application. V (p. 35);
Functional Requirements: Reporting: Compulsory Notifications:
258. Does the benefit system provide for issuing standard notices for a
variety of user-defined events? [FOOTNOTE 62] M (p. 35);
259. Does the benefit system allow the user to add custom text for each
standard correspondence type? M (p. 35);
260. Does the benefit system allow the user to record that the U.S.
Postal Service has returned correspondence as undeliverable? M (p. 35);
261. Does the benefit system automatically capture various electronic
correspondences, including due process requests submitted through
various electronic mediums, and associate them to the specific claim
and required action? M (p. 36);
262. For manually submitted correspondence, does the benefit system
provide for capturing such requests and associating them with the
specific claim and required action? M (p. 36);
Functional Requirements: Reporting: Compulsory Notifications:
263. Does the benefit system have the ability to capture or record the
date on which a request for appeals-related information is received
from a claimant or an authorized representative? M (p. 36);
Functional Requirements: Interfaces: Internal Interfaces:
264. Does the benefit system provide the capability to interface with
the agency core accounting system to record the accounting impact of
financial activity at the SGL level daily to support consolidated
financial reporting? M (p. 36);
265. Does the benefit system provide standard input record format(s)
for interface of transactions from other systems? M (p. 36);
266. Does the benefit system subject all transactions from interfacing
systems to its system edits, validations, and error correction
procedures? M (p. 36);
267. Does the benefit system maintain and track erroneous transactions
until corrected, posted, or deleted by an authorized user? M (p. 36);
268. When a major benefit system function is performed by the core
system, does the benefit system provide the capability to automatically
update detailed claimant-related information that is maintained in the
core system? [FOOTNOTE 63] M (p. 36);
269. Does the benefit system provide the capability to interface with
the agency's cost accounting system? M (p. 36);
270. Does the benefit system provide a two-way interface with the core
system for purposes of funds control and funds availability
verification? V (p. 36);
Functional Requirements: Interfaces: External Interfaces:
271. Does the benefit system provide capabilities allowing interface
with central agency financial systems, [FOOTNOTE 64] such as the
capability to:
a. receive and read the deposit reconciliation file from Treasury and
produce a report of the matched data and differences,
b. produce a file of all hold check transactions as they are created
and periodically transmit the hold check file to Treasury,
c. produce and transfer a file of changes to EFT payments previously
forwarded to Treasury for release,
d. produce and transfer a file of changes to be made to the home
address file in Treasury,
e. receive and process the data on the returned check file sent by
Treasury's recertification system, including generating returned check
transactions and updating account data, and:
f. receive and automatically process an ACH update file (containing
changes to EFT information) from Treasury or other sources on a
recurring basis? M (p. 37);
272. Does the benefit system receive information from SSA records to
verify an applicant's name, SSN, and income information, when legally
permitted? V (p. 37);
273. Does the benefit system provide features to verify an applicant's
income against civil service annuity, military retirement, and IRS
earnings records, when legally permitted? V (p. 37);
Functional Requirements: Quality Assurance and Maintenance:
274. Does the benefit system provide capabilities to select benefit
claims based on agency program evaluation criteria, such as dollar
thresholds and duration of benefit payment, for subsequent review? M
(p. 37);
275. Does the benefit system provide the ability to monitor and update
a claimant's master records to reflect changes in circumstances
affecting a claimant's eligibility or the amount of the payment? M (p.
37);
276. Does the benefit system provide capabilities to capture claimant
(or relative) reported matters such as the following changes?
a. Death.
b. Change in amount of earned or unearned income.
c. Change in residence.
d. Marriage, divorce, or separation.
e. Absence from the United States.
f. Change in disability condition.
g. Eligibility for other benefits.
h. Change in net worth or resources of the claimant.
i. Change in school attendance.
j. Change in composition of household.k. Change in citizenship or alien
status. M (pp. 37 & 38);
277. Does the benefit system provide for recording and maintaining a
customer service representative's notes or comments that can be linked
to the claimant's master record? M (p. 38);
278. Does the benefit system provide features to record death
information provided from voluntary sources? [FOOTNOTE 65] M (p. 38);
279. Does the benefit system provide capabilities to record the method
[FOOTNOTE 66] used to independently verify the death of a claimant
before terminating benefits? M (p. 38);
280. Does the benefit system provide the ability to maintain a schedule
of continuing disability reviews at the individual claim level, if
applicable? M (p. 38);
281. Does the benefit system also provide the ability to maintain the
status of a schedule of continuing disability reviews within the
claimant's master record? M (p. 38);
282. Does the benefit system provide capabilities to track the status
of appeal proceedings when a change is made affecting a current
claimant's level of benefits? M (p. 38);
283. Does the benefit system provide features to record termination of
benefit payments, including the following notations:
a. event or reason for termination, such as death or increase in
income, and:
b. date of event (and thus effective date of benefit cessation)? M (p.
38);
284. Does the benefit system provide features to determine if benefits
are commensurate with a claimant's gender? V (p. 38);
285. Does the benefit system have the ability to select benefit payment
calculations based on statistical sampling techniques for the purpose
of verifying calculations? V (p. 38);
286. Does the benefit system provide the ability to generate a random
sample of claimants to periodically survey their satisfaction with the
agency's benefit claims process? [FOOTNOTE 67] V (p. 38);
287. Does the benefit system allow users to suspend payment to
claimants when fraud is suspected, or when a death has been reported
but not yet verified by an authoritative source (e.g., SSA)? V (p. 38);
288. Does the benefit system allow users to cancel a previously
recorded suspected death of a claimant and place the claimant back in a
payment status, if appropriate? V (p. 38);
Functional Requirements: Technical Functions: General:
289. Does the benefit system provide for system back up and recovery in
accordance with relevant OMB circulars? M (p. 38);
290. Does the benefit system adhere to the applicable final Electronic
and Information Technology Accessibility Standards [FOOTNOTE 68] issued
by the Architectural and Transportation Barriers Compliance Board? M
(pp. 38 & 39);
291. Does the benefit system allow users to input parameters required
to run batch jobs in a production mode either daily, monthly,
quarterly, or yearly? M (p. 39);
292. Does the benefit system provide all users the capability to
perform a "print screen" function? M (p. 39);
Functional Requirements: Technical Functions: Security and Internal
Controls:
293. Does the benefit system provide flexible security facilities to
control user access at varying degrees, including the following:
a. overall system access,
b. capability to perform specific functions, such as inquiries and
updates, and:
c. access to certain functionalities? M (p. 39);
294. Does the benefit system provide capability to define access to
specific functions by named user, class of user, and position? M (p.
39);
295. Does the benefit system provide for multiple levels of approvals
based on user-defined criteria, including dollar limits and type of
document processed? M (p. 39);
296. Does the benefit system provide the capability to perform
reconciliation routines for internal participant accounts, ledgers, and
funds? M (p. 39);
297. Does the benefit system have the capability to identify
unsuccessful reconciliations via an error log or error report? M (p.
39);
298. Does the benefit system establish appropriate administrative,
technical, and physical safeguards to ensure the security and
confidentiality of records? M (p. 39);
299. Do these safeguards protect the records against anticipated
threats or hazards to their security or integrity that could result in
substantial harm, embarrassment, inconvenience, or unfairness to any
individual on whom information is maintained? M (p. 39);
300. Does the benefit system provide a mechanism to monitor changes in
software coding and the responsible individual (authorized user)? M (p.
39);
Functional Requirements: Technical Functions: Access to Information:
301. Does the benefit system comply with the disclosure provisions of
the Privacy Act of 1974, [FOOTNOTE 69] as amended? M (p. 39);
302. Does the benefit system allow for the information contained in the
system to be queried and detailed data to be presented, as requested? M
(p. 39);
303. Does the benefit system's query capability allow for user-defined
criteria when accessing data for open or closed accounting periods? M
(p. 39);
304. Does the benefit system provide users with access to online
guidance or help for performing system functions? M (p. 39);
305. If a claimant's or claim holder's record is not located via query,
does the benefit system display a message indicating that the
transaction cannot be completed and that further research is required?
M (p. 39);
306. Does the benefit system present information resulting from system
queries in an understandable format for nontechnical users? M (p. 39);
307. Does the benefit system also present information resulting from
system queries in an unformatted fashion for more technically
proficient users? M (p. 39);
308. Does the benefit system provide the capability to access
historical data records that are removed from online viewing, including
items such as the following?
a. Individual benefit payments.
b. Receivables.
c. Collection data. M (p. 39);
309. Does the benefit system allow users to design extract files for
their specific requirements? M (p. 40);
310. Does the benefit system allow users to perform table look-ups and
expansion of codes when needed to clarify the information contained
within the results of system queries or reports? M (p. 40);
311. Does the benefit system provide features (i.e., matching programs)
to facilitate verification using information extracted from the system
for comparison against benefit programs administered by other agencies,
when legally permitted? M (p. 40);
312. Does the benefit system facilitate the analysis of information
contained in the system by allowing analysts to obtain report
information and the results of system queries in data files that can be
transferred to other applications or analytical tools? M (p. 40);
313. Does the benefit system provide for easy access to historical
files for comparative, analytical, and trend information? M (p. 40);
314. Does the benefit system provide for self-service, claimant-
initiated requests that can perform the following functions?
a. Enable the claimants to request the reissuance of misplaced payments
using a Web browser.
b. Enable the claimants to access decision tree functions to help guide
them through self-service transactions through a Web browser.
c. Have pop-up windows to help annuitants when making changes to files
through a Web browser.
d. Enable claimant to complete forms using a Web browser.
e. Have the ability to verify the claimant security information through
a Web browser.
f. Provide access to claimant retirement-related data through
interactive voice response (IVR).
g. Make IVR available for claimant inquiries 24 hours a day, 7 days a
week, with the exception of scheduled outages.
h. Allow claimants to initiate changes to their accounts through IVR.
i. Have the ability to support multiple languages (e.g., English and
Spanish). V (p. 40);
Functional Requirements: Technical Functions: Data Entry:
315. Does the benefit system utilize various automated input devices
when hard copy applications and correspondence are received, such as,
for example, the utilization, whenever feasible, of optical recognition
devices, digital imaging tools, or other input streamlining technology
when processing standard hard copy applications or other required
correspondence? M (p. 40);
316. Does the benefit system support both batch and real-time online
data entry, and does it use the same edit and update rules, as
appropriate, for each mode? M (p. 40);
317. Does the benefit system support simultaneous data entry or access
by multiple users in a variety of access modes? M (p. 40);
318. Do the benefit system user entry and query screens support
validation of entered codes? M (p. 40);
319. Does the benefit system assist users in determining correct codes
if an invalid code is entered? M (p. 40);
320. Does the benefit system provide for inquiry by the user to verify
valid codes during the data entry process? M (p. 40);
321. Does the benefit system provide the capability to display inputs
required to complete transactions by a user based on the selection of
transaction type? M (p. 40);
322. Whenever possible, does the benefit system utilize keystroke-
reducing tools such as drop-down menus to reduce the chance of data
entry error? M (p. 40);
323. Does the benefit system display a message to the user notifying
him or her of the acceptance or rejection of each transaction once all
inputs are completed? M (p. 41);
324. Does the benefit system identify erroneous inputs with corrective
recommendations? V (p. 41);
325. Does the benefit system provide the capability for financial users
to create comments relating to all types of transactions using free-
form text? V (p. 41);
Functional Requirements: Technical Functions: Archiving and Purging:
326. Does the benefit system provide an automated means for permanently
storing electronic data? M (p. 41);
327. Does the benefit system archive transactions and related
information needed for audit trails in a format accessible by audit
software? M (p. 41);
328. Does the benefit system provide the authorized system
administrator with the flexibility to determine whether records are to
be archived or purged? M (p. 41);
329. Does the benefit system allow selective action on the documents
that meet the criteria for being archived or purged? M (p. 41);
330. Does the benefit system include the capability to establish and
maintain user-defined archival criteria? M (p. 41);
331. Does the benefit system retain its records in accordance with
federal regulations established by the National Archives and Records
Administration, GAO, and others? M (p. 41);
332. Does the benefit system prevent the purging of transactions prior
to the proper period in accordance with regulations governing the
retention of documents and transactions? M (p. 41);
Information Stores: Application Information Stores: Universal Data
Elements:
333. Does the benefit system capture the name and address of the claim
holder? [FOOTNOTE 70] M (p. 42);
334. Does the benefit system capture the SSN of the claim holder? M (p.
42);
335. Does the benefit system capture the birth date of the claim
holder? M (p. 42);
336. Does the benefit system capture the date of the initial claim? M
(p. 42);
337. Does the benefit system capture claimant information, if other
than the claim holder, including the following information:
a. name, address, SSN, and birth date and:
b. claimant's relationship to claim holder? [FOOTNOTE 71] M (p. 42);
338. Does the benefit system capture the name and relationship of a
representative payee, including estate executors or legal guardians,
when applicable? M (p. 42);
339. Does the benefit system capture the specific benefit for which the
claim is made? M (p. 42);
340. Does the benefit system capture the claimant address? M (p. 42);
341. Does the benefit system capture bank information for direct
deposit, including, if applicable, the American Bankers Association
routing number, claimant bank account number, and account type? M (p.
42);
342. Does the benefit system capture the type of evidence or proof
required and submitted, when applicable? M (p. 42);
343. Does the benefit system capture the status of the claim (e.g.,
approved, pending, or denied)? M (p. 42);
344. Do benefit systems relating to taxable programs capture
information needed to determine the withholding amount, such as the
following:
a. withholding status, [FOOTNOTE 72]
b. tax number of withholding allowances,
c. backup withholding, and:
d. additional voluntary amount of tax withholding? M (p. 42);
345. If a benefit system is used in administering "means tested
programs," does it capture the following information?
a. Claimant wages, salaries, and other income that are considered in
determining eligibility and/or benefit amounts.
b. Types and amounts of assets owned by the claimant, which are
considered in determining eligibility and/or benefit amounts. M (p.
43);
346. Does the benefit system capture the gender of a claimant?
[FOOTNOTE 73] V (p. 43);
Information Stores: Application Information Stores: Federally
Administered Retirement Benefit Systems:
347. Does the benefit system capture the effective date of retirement?
M (p. 43);
348. Does the benefit system capture the claim holder or claimant
dependency information? [FOOTNOTE 74] M (p. 43);
349. Does the benefit system capture the dates of creditable employment
[FOOTNOTE 75] of the claim holder? M (p. 43);
350. Does the benefit system capture historical earnings data [FOOTNOTE
76] of the claim holder required for determining eligibility or the
amount of benefits? M (p. 43);
351. Does the benefit system capture total participant and employer
contributions to the retirement plan made on behalf of the participant?
M (p. 43);
352. Does the benefit system capture current balance of vested employee
and employer contributions? V (p. 44);
353. Does the benefit system capture other names, such as a maiden
name, the claim holder has used? V (p. 44);
354. Does the benefit system capture the phone number of the claimant?
V (p. 44);
355. Does the benefit system capture any other unique identifying
number? V (p. 44);
356. Does the benefit system capture the date of final separation? M
(p. 44);
357. Does the benefit system capture lump sum [FOOTNOTE 77]
distributions versus annuity distributions? M (p. 44);
358. Does the benefit system capture annuity selection? [FOOTNOTE 78] M
(p. 44);
359. Does the benefit system capture present marital status? M (p. 44);
360. Does the benefit system capture spouse's name, date of birth, SSN,
and date of marriage, when applicable? M (p. 44);
361. Does the benefit system capture the name, date of birth, SSN, and
dates of marriage and divorce of former spouses who have court-ordered
annuities? M (p. 44);
362. Does the benefit system capture the percentage or dollar amount of
a court-ordered former spouse annuity? M (p. 44);
363. Does the benefit system capture the highest pay scale, (grade)
level, or amount of highest salary and related dates? M (p. 44);
364. Does the benefit system capture the voluntary separation monetary
incentive? M (p. 44);
Information Stores: Application Information Stores: Disability
Benefits:
365. Does the benefit system capture the type of disability or
disability code? M (p. 44);
366. Does the benefit system capture the date of disability onset or
injury? M (p. 44);
367. Does the benefit system capture the degree of impairment or
diagnosis? M (p. 44);
368. Does the benefit system capture the name of examining physician? M
(p. 44);
369. Does the benefit system capture where the claimant's injury
occurred? M (p. 44);
370. Does the benefit system capture whether the disability was caused
by employment or was related to military service? V (p. 45);
371. Does the benefit system capture the student status of the claimant
or dependent(s) (e.g., full-time)? V (p. 45);
Information Stores: Application Information Stores: Death Benefits:
372. Does the benefit system capture claimant's relation to claim
holder? M (p. 45);
373. Does the benefit system capture the dates of creditable employment
of the claim holder, including military service, when used in
determining eligibility and the amount of benefits? M (p. 45);
374. Does the benefit system capture claimant dependency information
when it affects the benefit amount? M (p. 45);
375. Does the benefit system capture the date married, when applicable?
M (p. 45);
376. Does the benefit system capture the date divorced, when
applicable? M (p. 45);
377. Does the benefit system capture the date of claim holder death? M
(p. 45);
378. Does the benefit system capture the claimant's or claim holder's
dependent(s) student status? [FOOTNOTE 79] V (p. 45);
Information Stores: Application Information Stores: Survivor Benefits:
379. Does the benefit system capture the claimant's relation to the
claim holder? M (p. 45);
380. Does the benefit system capture the dates of creditable employment
of the claim holder, [FOOTNOTE 80] including military service when used
in determining eligibility and the amount of benefits? M (p. 45);
381. Does the benefit system capture claim holder or claimant
dependency information? [FOOTNOTE 81] M (p. 45);
382. Does the benefit system capture the date [the claim holder was]
married, when applicable? [FOOTNOTE 82] M (p. 45);
383. Does the benefit system capture the date [the claim holder was]
divorced, when applicable? [FOOTNOTE 83] M (p. 45);
384. Does the benefit system capture the date of claim holder death? M
(p. 45);
385. Does the benefit system capture the student status? [FOOTNOTE 84]
M (p. 45);
Information Stores: Application Information Stores: Other Benefits:
386. Does the benefit system capture universal data elements [FOOTNOTE
85] only? M (p. 46);
387. Does the benefit system capture the student status [FOOTNOTE 86]
of the claimant or dependent(s)? V (p. 46);
Information Stores: Claimant Master Record Information Store:
388. Does the benefit system maintain all applicable mandatory data
elements [FOOTNOTE 87] specified within the application information
data stores? M (p. 46);
389. Does the benefit system maintain general information, such as the
following:
a. case status,
b. benefit type, and:
c. chronology of key dates? M (p. 46);
390. Does the benefit system maintain, as appropriate, award data, such
as the following:
a. total award,
b. monthly gross payment, and:
c. net monthly payment? M (p. 46);
391. Does the benefit system maintain payment history, such as the
following:
a. prior disbursements,
b. collections, including principal and interest, and:
c. accruals? M (p. 46);
392. Does the benefit system maintain special collection activity, such
as the following:
a. delinquent debt collection activity and:
b. status? M (p. 46);
393. Does the benefit system maintain general data, such as demographic
data other than those specified in the application information stores?
[FOOTNOTE 88] V (p. 46);
Information Stores: Financial Information Store:
394. Does the benefit system maintain the present interest rate per the
Department of the Treasury? M (p. 46);
395. Does the benefit system maintain the daily exchange rate for
relevant [FOOTNOTE 89] currencies? V (p. 47);
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.
Standards for Internal Control in the Federal Government. GAO/AIMD-00-
21.3.1. Washington, D.C.: November 1999.
Determining Performance and Accountability Challenges and High Risks.
GAO-01-159SP. Washington, D.C.: November 2000.
Financial Management Systems;
Property Management Systems: Requirements Checklist. GAO-02-171G.
Washington, D.C.: December 2001. Human Resources and Payroll Systems
Requirements Checklist. GAO/AIMD-00-21.2.3. Washington, D.C.: March
2000.
Grant Financial System Requirements Checklist. GAO-01-911G.
Washington, D.C.: September 2001.
System Requirements for Managerial Cost Accounting Checklist. GAO/AIMD-
99-21.2.9. Washington, D.C.: January 1999.
Guaranteed Loan System Requirements Checklist. GAO-01-371G.
Washington, D.C.: March 2001.
Inventory System Checklist. GAO/AIMD-98-21.2.4. Washington, D.C.: May
1998.
Seized Property and Forfeited Assets Requirements Checklist. GAO-01-
99G. Washington, D.C.: October 2000.
Framework for Federal Financial Management System Checklist. GAO/AIMD-
98-21.2.1. Washington, D.C.: May 1998.
Travel System Requirements Checklist. GAO/AIMD-00-21.2.8. Washington,
D.C.: May 2000.
(195019):
FOOTNOTES
[1] JFMIP is a joint undertaking of 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 the Office of Personnel Management, joined JFMIP in
1966.
[2] JFMIP has also issued the Framework for Federal Financial
Management Systems (FFMSR-0, January 1995), which defines the framework
for establishing and maintaining financial management systems to
support management and deliver programs of the federal government. GAO
published a companion checklist, Framework for Federal Financial
Management System Checklist (GAO/AIMD-98-21.2.1, May 1998).
[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.
[4] Application information stores refers to all data recorded from the
source document(s) used in determining eligibility as well as the
status of the review and approval of the application. See questions 333
through 387.
[5] Unless otherwise indicated, the page number reference is to JFMIP-
SR-01-01.
[6] These are specified in the claims processing section. See questions
16 through 65.
[7] Approval would result in the establishment of a master record.
[8] The claimant fills in all the required fields.
[9] For example, does it provide for the ability to route claims for
manual validation?
[10] For example, are data retrievable by query of full name and Social
Security number (SSN) or taxpayer identification number (TIN)?
[11] The master record must contain all of the mandatory data as
specified in the requirements under "Claimant Master Record Information
Store" section of Benefit Systems Requirements (see questions 388
through 393).
[12] This occurs when the claimant already receives a different type of
benefit administered by the agency.
[13] This refers to all data recorded from the source document used in
determining eligibility, and it also includes the status of:
[14] For example, does the system allow for age attainment verification
to determine whether one is eligible for Social Security Administration
retirement benefits?
[15] For example, can the system ensure that an applicant has not filed
for multiple conflicting benefits?
[16] For example, does the system allow the user to record receipt of a
school certification pertaining to a claimant or dependent child?
[17] For example, can it determine the effective date of a retirement
claim?
[18] For example, can it determine this using applicant data and
specific benefit program criteria?
[19] For example, does it use tables that are easily maintained by the
user?
[20] For example, is military retired pay offset on a dollar-for-dollar
basis against veterans compensation, and for individuals under age 65,
are Social Security benefits offset at a predetermined ratio for every
dollar earned by the claimant above the established threshold amount?
[21] This can also be any other number as required by law or
regulation.
[22] Overpayment information includes date of occurrence, claimant
name, and overpayment amount.
[23] For example, does the system maintain information needed for 1099
reporting, including SSN or TIN? In cases where payments are made to
third parties who are serving in fiduciary capacities, does the system
maintain 1099 information for the principal party rather than the
agent?
[24] Treasury, financial institutions, or other sources may supply
these updates periodically.
[25] This includes payments, collections, waivers, or offsets resulting
from overpayments.
[26] Please refer to the previous question.
[27] This includes recording internal allocations or allotments from
within the agency.
[28] That is, does the system provide the capabilities and controls for
authorized users to override funds availability edits?
[29] That is, does the system either reject the transaction or provide
a warning?
[30] At a minimum, does the system capture accounting classification
elements and estimated amounts?
[31] Some agencies have "delegated disbursing authority" and can print
checks or make EFTs without using Treasury as an intermediary. 31
U.S.C. § 3321(b) provides that, for economy and efficiency, the
Secretary of the Treasury may delegate the authority to disburse public
money to officers and employees of other executive agencies.
[32] As stated in I TFM 4-10025, the agency must submit immediately to
the chief disbursing officer any irregularity in accounts involving
disbursement activity. Furthermore, the agency is responsible for
resolving any irregularities or discrepancies associated with such
reports.
[33] See I TFM 4-6020.10. FMS must receive this information within the
required time frame to carry out its check reconciliation
responsibilities properly, to decline final payment, or to reclaim
payment on certain improperly negotiated Treasury checks or counterfeit
checks. See 31 C.F.R. Part 240.
[34] Under 31 U.S.C. § 3716 (c), an authorized disbursing official is
allowed to reduce recipient benefits by administrative offset to
satisfy a creditor agency claim "—certified to the Secretary of the
Treasury.":
[35] "The head of an executive agency or an officer or employee of an
executive agency — shall include with each certified voucher submitted
to a disbursing official pursuant to this section the taxpayer
identifying number of each person to whom payment may be made under the
voucher.":
[36] Questions 113 through 136 are applicable only to agencies for
which Treasury does the actual disbursing.
[37] Emergency situations are defined by the administering agency.
[38] For example, can payments be scheduled or made with ACH or SF-
1166?
[39] Physical media include tape or EFT.
[40] That is, does the system record whether, for example, (1) the
entire amount is expensed, (2) payables or cash accounts reflect net
outlay, and (3) budgetary resources are increased by the amount of
nonfederal receivables collected?
[41] That is, does the system allow for a minimum of one allotment in
addition to the primary deposit account?
[42] IRS acceptable form would be, for example, hard copy or magnetic
tape.
[43] For example, IRS 1099s are required for miscellaneous payments of
over $600 to individuals.
[44] OMB Circular A-129 prescribes policies and procedures for
justifying, designing, and managing federal credit programs, including
collecting nontax receivables such as overpayments to beneficiaries.
[45] The method of recovery includes payment, internal offset, TOP,
compromise settlement, and civil suit.
[46] For example, does the system exclude receivables that are in due
process status or those that relate to bankruptcy filings?
[47] An offset program participant is the recipient of the amount to be
offset against a claimant's benefit payments.
[48] For example, receivable management would include establishing a
receivable, adjusting receivables, collections and offsets, as well as
waivers and write-offs.
[49] This includes annual, multiyear, and no-year appropriations as
well as trust funds.
[50] Accounting classification elements include, for example,
organization level and cost center.
[51] A pseudocode can be used instead of the exact SGL account numbers,
providing the account descriptions and posting rules are the same as
those used in the SGL for relevant transactions.
[52] This could include values in tables, such as available funding.
[53] This ensures that counts and amounts in trailer records agree with
records in the batch.
[54] For example, when expending an existing obligation the balance of
the open obligation must be automatically reduced by the amount
expended.
[55] Examples of selection criteria are accounting period, amount, and
payee.
[56] Of particular significance are data needed when preparing
actuarial estimates for financial statement preparation in compliance
with the reporting requirements specified by SFFAS 5 and 17. For
example, does the system facilitate historical trend analysis of
various data elements as determined by the agency?
[57] For example, does the system pass the data needed to prepare (1)
reports required by the Federal Agencies' Centralized Trial Balance
System (FACTS) I, FACTS II, SF-224 (when appropriate) and (2) financial
statements to the core financial system?
[58] This includes providing the ability to automatically assign cost
by a major program to facilitate preparation of the Statement of Net
Costs in accordance with OMB's Bulletin 01-09, Form and Content of
Agency Financial Statements.
[59] That is, does the system determine the appropriate amount of
corresponding U.S. dollars when recording transactions for payments
made in foreign currency?
[60] Measures should cover agency resources at both the local and
national levels.
[61] For example, can the system generate reports showing the number of
individuals receiving benefits by duration (e.g., 1 to 5 years or 6 to
10 years)?
[62] For example, does the system provide capabilities to notify a
claimant of decisions affecting payment amount or cessation of
payments?
[63] For example, could the benefit system automatically update
detailed claimant information, such as individual payable and
receivable records, if they were maintained in the core accounting
system?
[64] These systems include those at the Department of the Treasury's
FMS and IRS, OMB, and OPM.
[65] Voluntary sources include, for example, returned checks, funeral
home notification, and next of kin.
[66] Methods for verifying death of a claimant include, for example,
phone contact, signature verification, or personal contact with next of
kin.
[67] Surveys would cover the claimant's experience from initial contact
with the agency to receipt of benefit payment.
[68] These standards address technical and functional performance
criteria necessary for such technology to comply with section 508 of
the Rehabilitation Act of 1973, as amended.
[69] 5 U.S.C. § 552A (2000).
[70] The claim holder is the person on whose record the benefit is
earned or due.
[71] For example, a claimant may be a spouse, child, or dependent
parent of a claim holder.
[72] This does not necessarily mean marital status (e.g., married,
single, or exempt).
[73] This facilitates verifying a claimant's identity.
[74] For example, does the system capture whether the claim holder is
the child or parent of the claimant and vice versa?
[75] This also includes military service when used in determining
eligibility and the amount of benefits.
[76] For example, does the system capture previous annual wages and
salary?
[77] Lump sum refers to refund of contributions.
[78] For example, does the system capture whether the annuity selection
is for self-only, self and reduced survivor, or self and maximum
survivor?
[79] For example, is the student full-time?
[80] For example, does the system capture military service when used in
determining eligibility and the amount of benefits?
[81] For example, does the system capture whether the claim holder has
dependent children or parents?
[82] That is, the claimant is a former spouse.
[83] That is, the claimant is a former spouse.
[84] For example, is the claimant a full-time student?
[85] These are covered in questions 333 through 346.
[86] For example, is the student full-time?
[87] That is, does the system maintain universal data elements and
appropriate categorical information?
[88] That is, does the system maintain information that has been
historically used by the agency in preparing actuarial estimates for
purposes such as forecasting and complying with financial statement
reporting requirements and SFFAS 5 and 17?
[89] That is, the currencies are specified by the agency.
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