framework for federal financial management system checklist · financial management system and, as...

United States General Accounting Office

GAO Financial Management Series

May 1998

Framework for FederalFinancial ManagementSystem Checklist

Systems Reviewed Underthe Federal FinancialManagementImprovement Act of 1996

GAO/AIMD-98-21.2.1

PREFACE

B-278190

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, amongother things, that agencies implement and maintain management systems thatsubstantially comply with federal financial management systems requirements. Theserequirements are detailed in the Financial Management Systems Requirements seriesissued by the Joint Financial Management Improvement Program (JFMIP) and in Office ofManagement and Budget (OMB) guidance (Circular A-127 and September 9, 1997implementation guidance).

To assist in reviews of financial management systems under the requirements of FFMIA,we are issuing three checklists concurrently as practice aids. Two of the checklistsreflect the system requirements defined by JFMIP, while the third checklist is based onthe JFMIP framework document. The third checklist describes a single, integratedfinancial management system and, as set forth in the JFMIP framework document, isprimarily a reference source rather than a standard-setting document.

This checklist reflects JFMIP's Framework for Federal Financial Management SystemRequirements. Although the framework document is primarily a reference tool ratherthan a standard-setting document, it is intended to promote understanding of key financialmanagement systems concepts and requirements, especially as they relate to systemintegration.1 This checklist is not required to be used in assessing system integration. Itis provided as a practice aid available for use as a tool by experienced staff. When used,this checklist, the JFMIP source document, and the two previously mentioned OMBdocuments (Circular A-127 and the September 9, 1997, implementation guidance) shouldbe referred to concurrently.

Experienced judgment must be applied in the interpretation and application of this guideto enable the user to consider the impact of the completed checklist on the entirefinancial management systems framework and whether that system as a whole issubstantially and appropriately integrated.

As technology progresses, new applications emerge replacing older, less efficient and lesseffective ones. Policies and procedures in effect under older technologies give way tonew and different processes. Judgment must be used when assessing an agency's systems

1The JFMIP documents and OMB Circular A-127, Financial Management Systems, requireeach agency to establish and maintain a single integrated financial management system.

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

framework against the JFMIP guidance in order to recognize when new and differenttechnologies, although not specified in the framework, achieve the objectives of theJFMIP systems requirements.

The JFMIP systems requirements series supersedes the standards previously issued inappendix III, "Systems Standards," Title 2, "Accounting," of the GAO Policy andProcedures Manual for Guidance of Federal Agencies.

Additional copies of this checklist can be obtained from Room 1100, 700 4th St. NW, U.S.General Accounting Office, Washington, D.C. 20548, or by calling (202) 512-6000, or TDD(202) 512-2537. It is also available on the Internet on GAO's Home Page (www.gao.gov)under "Special Publications."

Gene L. DodaroAssistant Comptroller GeneralAccounting and Information Management Division

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

CONTENTS

Preface 1

Overview 5Authoritative Guidance 6How to Use This Checklist 7

Requirements Checklist 9Processes 11Data Stewardship 20Management Information 36System Architecture 53Internal Control 61Implementing Integrated Model 75

Figure

Figure 1: Agency Systems Architecture 5

Abbreviations

CASE computer aided software engineeringFFMIA Federal Financial Management Improvement Act of 1996FTE full time equivalentGSA General Services AdministrationJFMIP Joint Financial Management Improvement ProgramOMB Office of Management and BudgetOPM Office of Personnel ManagementSGL standard general ledger


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OVERVIEW

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, amongother things, that agencies implement and maintain financial management systems thatsubstantially comply with federal financial management systems requirements. Thesesystem requirements are detailed in the Financial Management Systems Requirementsseries issued by the Joint Financial Management Improvement Program (JFMIP) andOffice of Management and Budget (OMB) Circular A-127, Financial Management Systems. JFMIP requirements series identify (1) a framework for financial management systems, (2)core financial systems requirements, and (3) 16 other systems supporting agencyoperations. Figure 1 illustrates how these elements fit together in an agency systemsarchitecture.

Figure 1: Agency Systems Architecture

Source: JFMIP Federal Financial Management System Requirements documents.


To date, JFMIP has issued the framework and core documents and 7 of the 16 systemsidentified in the architecture (See figure 1.).2 The framework is unique in that it is theonly document in the requirement series intended primarily as a reference tool ratherthan a standard-setting document. It summarizes the relationship between the otherdocuments in the series. Specifically, the framework

"describes what is meant by a single, integrated financial management system at afederal agency and how the financial management systems throughout thegovernment can work together to support consistent, accurate information flows toall information users. It demonstrates how financial management systems supportthe management and operation of the federal government. Further, it summarizesthe relationship between the other documents issued in the Federal FinancialManagement System Requirements series published by the JFMIP."3

In December 1997, GAO issued eight exposure drafts proposing checklists for the theneight documents in the JFMIP series. In early 1998, JFMIP decided to initiate projects toupdate two of those documents (systems related to employee travel and payroll) and toassess three others (systems related to seized/forfeited assets, direct loans, and loanguarantees) to determine the extent updates may be needed, and if needed, to initiaterevisions. When the two documents are updated and the three are either updated ordetermined not to need revision, GAO will issue related final checklists.

Until the revisions are completed, the exposure drafts reflecting the existing five systemrequirements documents will be available for use to the extent agencies wish to applythem. Also, in February 1998, JFMIP issued Managerial Cost Accounting SystemsRequirements. GAO will develop a checklist of those requirements.

Authoritative Guidance

OMB Circular A-127 and OMB's Implementation Guidance for the Federal FinancialManagement Improvement Act (FFMIA) of 1996, issued September 9, 1997, provide thebasis for assessing compliance with the FFMIA requirement for agencies to implementand maintain financial management systems that comply substantially with federalrequirements. OMB's September 1997 implementation guidance identifies various criteriathat an agency must meet to be in substantial compliance with these requirements. Oneof the criteria listed in the OMB guidance is the JFMIP systems requirements series.

2Thus far, the series includes the (1) Framework for Federal Financial ManagementSystems, (2) Core Financial System Requirements, (3) Inventory System Requirements, (4)Seized/Forfeited Asset System Requirements, (5) Direct Loan System Requirements, (6)Guaranteed Loan System Requirements, (7) Travel System Requirements, (8) Personnel-Payroll System Requirements, and (9) Managerial Cost Accounting System Requirements.

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


The source of all the questions in this checklist is the Joint Financial ManagementImprovement Program Federal Financial Management System Requirements Frameworkfor Federal Financial Management Systems (FFMSR-0, January 1995).

How to Use This Guide

OMB's 1997 implementation guidance provides indicators for chief financial officers andinspectors general to assist them in determining whether agency's financial managementsystems substantially comply with federal financial management systems requirements. The annual assurance statement required pursuant to section 4 of the Federal Managers'Financial Integrity Act is one of those indicators. Agencies can use GAO's checklists tohelp determine annual compliance with section 4 of the act.

Filling out this checklist will allow agencies to systematically determine whether theappropriate level of integration is achieved. In determining the extent of integration,agencies should assess the results of the completed checklist on the systems frameworktaken as a whole. "No" answers should not be viewed by themselves or taken out ofcontext. Rather, "no" answers should be assessed as to the impact on the overall systemand the extent to which the "no" answers inhibit the entire system from meetingnecessary integration.

In the checklist, two columns follow each question. Use the first column to answer eachquestion "yes," "no," or "na." Use the second column to explain your answer. A "yes"answer should indicate that the agency's system or systems provide for the capabilitydescribed in the question. For each "yes" answer, the second column should contain abrief description of how the system(s) contain the capability and should also refer to asource that explains or shows the capability.

A "no" answer indicates that the capability does not exist. For a "no" answer, the secondcolumn should provide an explanation and, where applicable, a reference to any relatedsupporting documentation. Such explanations could include the following examples: (1)the agency is working on modifying or implementing its system(s) to have the capabilityavailable in subsequent years or (2) management believes the capability is not costeffective and will not enhance the systems' ability to manage operations. Cost-benefitstudies that support each explanation should be identified in the explanation column. Ifthere are no cost-benefit studies or other support, a full explanation should be provided.

Not every guide may apply to each agency. Further, while a guide may be applicable toan agency, certain questions within the guide may not be applicable. Answer suchnonapplicable question(s) with "na" and provide an appropriate explanation in the secondcolumn.


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FRAMEWORK FOR FEDERAL FINANCIAL MANAGEMENT

SYSTEMS

JFMIP's framework document presents an integrated financial management system thatsupports budget, accounting, and cost needs essential for complying with laws andpolicies.

The six elements of the framework for federal financial management systems arediscussed below. The first five comprise an integrated model whose individual parts mustwork together to create an effective integrated information system. Changing any part ofthe model will affect the other parts. The sixth element is the implementation of themodel.

1. The scope of the functions to be supported: the processes in programexecution to support program delivery/financing and financial event processingnecessary to carry out programmatic objectives. (The checklist questions forthis area are drawn from pp. 14-24 of the source document.)

2. How data quality will be assured: data stewardship to manage the data withinthe financial management systems. Data stewardship provides the linkbetween program execution processes, information, and systems architectureto ensure that appropriate information is collected, classified, maintainedaccurately, and reported in a timely manner. (The checklist questions for thisarea are drawn from pp. 25-34 of the source document.)

3. The information to be processed: management information for programexecution to capture and classify information on the status and use of financialresources at federal agencies, the efficiency of government operations, theeffectiveness of program delivery, and individual financial events occurringduring program execution. The information architecture includes both eventlevel and reporting level architectures. (The checklist questions for this areaare drawn from pp. 35-46 of the source document.)

4. How systems fit together to support the functions: system architecture forprogram execution to support program execution processes and the effectiveand efficient collection, maintenance, and reporting of managementinformation. (The checklist questions for this area are drawn from pp. 47-56 ofthe source document.)

5. Safeguards needed to ensure the integrity of operations and data: internalcontrol to provide reasonable assurance of the effectiveness and efficiency of


FRAMEWORK FOR FEDERAL FINANCIAL MANAGEMENT

SYSTEMS

operations in meeting basic business objectives, the reliability of financialreporting, and compliance with applicable laws and regulations. (The checklistquestions for this area are drawn from pp. 57-64 of the source document.)

6. Implementing the integrated model for financial management systems: theimportant areas for consideration in planning, designing, implementing,operating, and maintaining an integrated financial management system.4 (Thechecklist questions for this area are drawn from pp. 65-77 of the sourcedocument.)

The checklist questions follow the JFMIP source document. It should be noted that notall questions will apply in all situations and, as with the use of any checklist, professionaljudgment should be exercised. Using the JFMIP source document and its glossary alongwith the two previously mentioned OMB documents will help ensure that the user iscognizant of the background information necessary to fully understand the questions.

4GAO has developed a standardized methodology for evaluating critical issues associatedwith automated systems development and operations--the System Assessment Framework(SAF). The methodology is also available to agencies on request.


Framework for Federal Financial Management Systems

Processes Yes/no

NA

Explanation

Integration of Program Delivery/Financing with Transaction Tracking (Seeillustration III-7, page 22 of source document.)

1. Is the agency's transferpayments function integratedwith the following transactiontracking functions:

-- receivables/collections?-- payables/disbursements?

2. Is the agency's grants andsubsidies function integratedwith the followingtransaction trackingfunctions:

-- receivables/collections?-- payables/disbursements?-- property accounting?

3. Is the agency's loans functionintegrated with the followingtransaction trackingfunctions:

-- receivables/collections?-- payables/disbursements?-- property accounting?



Processes Yes/no

NA

Explanation

4. Is the agency's insurancefunction integrated with thefollowing transaction trackingfunctions:


5. Is the agency's personnelfunction integrated with thefollowing transaction trackingfunctions:

-- payroll?-- travel?

6. Is the agency's acquisitionfunction integrated with thefollowing transaction trackingfunctions:

-- payables/disbursements?-- property accounting?-- inventory accounting?

7. Is the agency's propertymanagement functionintegrated with the propertyaccounting?



Processes Yes/no

NA

Explanation

8. Is the agency's inventorymanagement functionintegrated with the inventoryaccounting?

9. Is the agency's taxationfunction integrated with thefollowing transaction trackingfunctions:


10. Is the agency's fee and otherrevenue generation functionsintegrated with the followingtransaction trackingfunctions:


11. Is the agency's public debtfunction integrated with thefollowing transaction trackingfunctions:




Processes Yes/no

NA

Explanation

12. Is the agency's deposit fundsfunction integrated with thefollowing transaction trackingfunctions:


13. Is the agency'sintragovernmental collectionsfunction integrated with thefollowing transaction trackingfunctions:


Integration of Budget Formulation and Transaction Tracking with Financial

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

14. Is the agency's budgetformulation functionintegrated with the followingfinancial accountabilityfunctions:

-- budget execution?-- financial accounting?-- cost accounting?



Processes Yes/no

NA

Explanation

15. Is the agency's receivables/collections functionintegrated with the followingfinancial accountabilityfunctions:

-- budget execution?-- financial accounting?-- cash management?

16. Is the agency's payables/disbursements functionintegrated with the followingfinancial accountabilityfunctions:

-- budget execution?-- financial accounting?-- cash management?-- cost accounting?

17. Is the agency's payrollfunction integrated with thefollowing financialaccountability functions:




Processes Yes/no

NA

Explanation

18. Is the agency's travelfunction integrated with thefollowing financialaccountability functions:


19. Is the agency's propertyaccounting functionintegrated with the followingfinancial accountabilityfunctions:

-- financial accounting?-- cost accounting?

20. Is the agency's inventoryaccounting functionintegrated with the followingfinancial accountabilityfunctions:

-- financial accounting?-- cost accounting?



Processes Yes/no

NA

Explanation

Integration Among Functions in the Same Category (See illustration III-9, page 24of source document.)

21. Is the agency's receivables/collections functionintegrated with thepayables/disbursementstransaction tracking function?

22. Is the agency's payables/disbursements functionintegrated with thereceivables/collectionstransaction tracking function?

23. Is the agency's payrollfunction integrated with thefollowing other transactiontracking functions:


24. Is the agency's travelfunction integrated with thefollowing other transactiontracking functions:

-- receivables/collections?-- payables/disbursements?-- payroll?



Processes Yes/no

NA

Explanation

25. Is the agency's propertyaccounting functionintegrated with thereceivables/collectionstransaction tracking function?

26. Is the agency's inventoryaccounting functionintegrated with thereceivables/collectionstransaction tracking function?

27. Is the agency's grants andsubsidies function integratedwith the propertymanagement programfunction?

28. Is the agency's loans functionintegrated with the propertymanagement programfunction?

29. Is the agency's acquisitionfunction integrated with thefollowing other programfunction:

-- property management?-- inventory management?



Processes Yes/no

NA

Explanation

30. Is the agency's propertymanagement functionintegrated with theacquisition program function?

31. Is the agency's inventorymanagement functionintegrated with theacquisition program function?



Data stewardship Yes/no

NA

Explanation

1. Has the agency received fromthe central agenciesresponsible for collectinggovernmentwide data clearcommunication of thegovernmentwide datarequirements and clearinstructions for the collectionof such data?

2. Is the agency data providedto central agencies verifiedby the central agencies toensure that data collected arein compliance with reportingrequirements?




NA

Explanation

3. Is the Office of Managementand Budget (OMB)

-- establishing governmentpolicies for collection andreporting ofgovernmentwideinformation?

-- ensuring integrity andconsistency ingovernmentwidedefinitions, includingmaintaining a mastergovernmentwide datadictionary?

-- coordinating among OMB,Treasury, and theprogram agencies thedetermination ofacceptable parameters forcollecting government-wide data?




NA

Explanation

4. Are the Department of theTreasury and other centralagencies (such as GeneralServices Administration(GSA) and Office ofPersonnel Management(OPM))

-- maintaining thegovernmentwide financialinformation systemsinfrastructure?

-- collecting the programagency financial datanecessary to meet thecentral agencies'information requirements?

-- supporting government-wide data integrity byvalidating (a) compliancewith reportingrequirements and (b) thereasonableness of thedata provided withinpredefined parameters?




NA

Explanation

5. Are program agencies andtheir program managers, asoperational data stewards foragency data necessary tocarry out the programmission(s) of the agency,recording and reporting onagency financial events inconformance withgovernment policies andagency needs, andmaintaining the integrity ofthe agency data created by

-- processing the financialtransactions?

-- collecting and recordingthe agency information?

-- maintaining datadictionaries supportingthe agencywide dataclassification structurethat complies withgovernmentwide policyand agency informationrequirements?

-- providing timely,complete, accurate andconsistent financialinformation on agencyresources and operations?




NA

Explanation

6. Does the agency ensure theintegrity of

-- data provided to thecentral agencies, theCongress, and externalorganizations?

-- data available to internalmanagement for decision-making?

7. Does the agency provideassurance that agency datacollection and reportingprocesses are in compliancewith governmentwide policiesand regulations and meet theagency's unique mission andmanagement objectives?

8. Does the agency ensure thata logical data architecture iscontained within the financialmanagement system and isconsistent with criticalinformation requirements,such as the Standard GeneralLedger? (This includes themigration to new standardsand approval andimplementation of changes.)




NA

Explanation

9. Has the agency obtained datarequirements from varioussources and converted therequirements into coding andjournal entry standards foroperational users of thesystem?

10. Has the agency obtainedfunctional data requirementsand assured that consistentnaming conventions aremaintained within theprogramming and tables foreach element defined?

11. Has the agency assured thatthe system is able to acceptand process the data comingto it from its many differentsources?

12. Has the agency ensured that(a) data have been preparedunder sufficient generalledger controls and (b) thesystem transaction validationedits are performed prior toupdating the system? (Thisincludes maintenance of localdatabases and data feedswhen necessary.)




NA

Explanation

13. Does the agency provide useraccess to the system throughthe use of predefined reports,ad hoc reports, or raw dataqueries?

14. Are independent auditorsable to review and verifywhether (a) agency reportsfairly present the financialposition and results ofoperations, (b) internalcontrols are adequate, and(c) laws and regulations havebeen complied with?

15. Are agency certifying officialsable to ensure the availabilityof funds and propriety ofpayments?

16. Are agency managers actingas certifying officials able toattest to the accuracy ofreports?

17. Are inspectors general ableto report on programoperations?




NA

Explanation

18. Does the agency's controlover financial data integrityrequire

-- the application ofbalancing rules tomaintain controlequations that support theaccounting principles andstandards for the entity?

-- identification oftransaction sources toallow tracing of generalledger balances to originaltransactions?

-- recognition of the periodto which a transactionapplies consistent withnormal business andtransaction cycles?

-- sufficient detail capturedfrom events to supportproper classifications andsummarizations offinancial information?

19. Does the agency's dataarchitecture provideclassifications to supportbudgetary control?




NA

Explanation

20. Does the agency's chart ofaccounts include a completelisting of the accountnumbers used to support thecontrol needed to ensure thatresources used do not exceedresources authorized?

21. Does the posting of financialevents to the agency'sfinancial managementsystems create balances inthe agency's general ledgerthat reflect the status ofbudget execution?

22. Are the agency's accountnumbers--which areestablished to managebudgetary resources at levelsmore detailed than thoseestablished by appropriationlegislation--consistent withthe appropriationrequirements?

23. Does the agency collect dataconsistent with the basicaccounting equation?




NA

Explanation

24. Does the agency's chart ofaccounts include a completelisting of the accountnumbers used to support

-- the basic accountingequation?

-- reporting to centralagencies?

-- preparation of financialstatements?

-- specific agencymanagement reportingneeds?

25. Are the agency's accountnumbers--which areestablished to track financialevents at levels more detailedthan those established forcentral agency reportingpurposes--consistent with thegovernmentwide financialclassifications?

26. Does the agency's posting offinancial events to itsfinancial managementsystems create balances inthe general ledger that reflectthe financial position of theentity based on theaccounting equation?




NA

Explanation

27. Does the agency's dataarchitecture provideclassifications to supportmanagement of the cash ofthe federal government andreporting of cash activity?

28. Does the agency's chart ofaccounts, at a minimum, havecodes to provide controltotals to track cash activityby receiving or disbursinglocation? (This function linksthe budget execution andfinancial accountingfunctions by examining theimpact of obtaining and usingresources on the cashposition of the agency.)

29. Does the agency's dataarchitecture provideclassifications to capture costdata to support managerialcost accounting? (Thisfunction must link to budgetexecution and financialaccounting functions toensure proper control overcost information.)




NA

Explanation

30. Does the agency's chart ofaccounts have codes toprovide control totals tomaintain control over costsand to reconcile with otherfeeder systems that may beused to accumulate costs?

31. Does the agency ensure thatdata provided to centralagencies are consistent withthe requirements forgovernmentwide informationand that such information iscomparable with otheragencies?

32. Does the agency apply the U.S. Government StandardGeneral Ledger (SGL)at thetransaction level? (Theprimary purpose of the SGL (as defined by the SGL Boardand maintained by theDepartment of the Treasury)is to standardize federalagency accounting, tosupport the external reportsand financial statementsrequired by OMB andTreasury, and to providecomparable informationamong agencies.)




NA

Explanation

33. Does the agency maintain anagency level SGL asprescribed by the centralagencies? The basic types ofaccounts are

-- Budgetary-- Proprietary-- Memorandum

34. Are additional detailedaccounts that may berequired by the agencyconsistent with theconceptual frameworkprescribed in the SGL?

35. Is information accessiblefrom the agency's generalledger using the SGLaccounts?

36. Is detailed informationmaintained in systems otherthan the agency's generalledger, at a minimum,accessible based on the SGLclassification with assurancethat the summarized data aremaintained in the generalledger?




NA

Explanation

37. Is the agency able to provideassurance that data collectedand reported are accurateand follow governmentpolicies? (One level ofassurance of the accuracyand integrity of data isprovided by the attainment ofan unqualified opinion on theaudited annual financialstatements and internalcontrols.)

38. Is there assurance of theintegrity of the agency'sbudget execution data, costdata, performance measures,and data that are immaterialor not within the scope of afinancial statement audit forother reasons?




NA

Explanation

39. Is the program agencyproviding further internalassurance over the quality,integrity, and usability of dataat all levels? (Suchassurances can be providedthrough good procedures toensure that (a) data areaccurately recorded andprocessed through thefinancial managementsystems, (b) periodic reviewsare conducted to ensureprocedures are beingfollowed, and (c) proceduresare continually beingimproved.)

40. Do the agency's proceduresinclude

-- work tasks andapplication systemssupporting the worktasks?

-- training of personnel?-- participation of users at

all levels in developingand implementing changesto processes?

-- timely assistance whenenvironmental changesrequire adjustments toprocesses?




NA

Explanation

41. Has the agency consideredthe following factors inmanaging financialmanagement system data:

-- data storage mediumused?

-- degree of datadistribution?

-- security requirements?

42. Are agency financialmanagement system data thatare considered to be federalgovernment records managedin accordance withprocedures pursuant to theFederal Records Act?

43. Are agency data maintainedat distributed locationscontrolled to ensureconsistency with datamaintained in other parts ofthe system?



Management information Yes/no

NA

Explanation

1. Does the agency useconsistent definitions for dataclassification throughout thefinancial event collection andreporting processes?

2. Are data element names,definitions, formats, domains,uses, and attributes specifiedwhen establishing datarequirements used by theagency's financialmanagement systems?

3. Has the agency incorporatedOMB and Treasuryinformation requirements intoits financial managementsystems?

4. Does the agency's event levelarchitecture provide for theproper classification of dataat the point of original entryto support all the elements ofthe reporting levelarchitecture?




NA

Explanation

5. Does the agency's event levelarchitecture

-- provide for appropriatetransaction identificationand control?

-- eliminate the need forredundant data collectionprocesses for multiplereporting levelarchitecturerequirements?

-- support the collection ofcomplete transaction datawhen a financial eventoccurs?

6. Do the agency's transactiondata about an individualfinancial event include

-- transaction control datafor tracking the event?

-- financial data forclassifying the type offinancial activity?

-- program activity data forcapturing relatednonfinancialcharacteristics?




NA

Explanation

7. Does the agency's reportingprovide information of valueto users in terms of

-- scope?-- level of detail?-- timing?-- content?-- presentation format?




NA

Explanation

8. Does the agency's reportinglevel architecture summarizetransaction data and providethe financial, operations, andprogram informationnecessary for internal andexternal reporting?(Examples of financialinformation, which includesbudget information, are fundsappropriated, obligations, taxrevenue received, andresources invested in realproperty. Examples ofoperations information arefull-time equivalent (FTE)information, aging ofaccounts receivables, promptpay statistics, and timelypayment of travelreimbursement. Examples ofprogram information aretypes of beneficiaries, loansissued, and propertypurchased.)

9. Does the reportingcomponent of the agency'sreporting level architectureprovide users access tounderstandable informationabout what the government isdoing and how well it isdoing it?




NA

Explanation

10. Does the agency's financialreporting provide informationon the financial condition ofthe federal government ateither a point in time or overa period of time?

11. Does the agency'sperformance reportinganswer the question; Howeffective and efficient areoperations and programs?(Performance reporting mayuse data from sources otherthan the financialmanagement systems (e.g.,economic indicators, crimerates) to measure how well aprogram is doing.)

12. Is the agency's informationarchitecture supported by a series of structures thatorganize the data containedin the event level architectureand the reporting levelarchitecture so thatmeaningful and usefulinformation can be obtained(see illustration V-3 on page40 of the source document)?




NA

Explanation

13. Do the agency's financial andrelated informationclassification structurescollect information on

-- the financial status ofgovernment operationsand the use of financialresources (financialinformation)?

-- the efficiency ofoperations (operationsinformation)?

-- the effectiveness ofdelivery (programinformation)?

-- individual financial events(transaction)?

(Collectively, this informationis used to support financialand performance reportingrequirements.)

14. Does the agency's reportingstructure provide thenecessary access toinformation captured by thefinancial managementsystems using the financialand related informationclassification structures?




NA

Explanation

15. Does the agency havestandardized and consistentlydefined data elements in thetransaction classificationstructure which are linked byappropriate encodingrelationships with thesummary informationclassification structure toprovide the bridge betweenthe event level datarequirements and thesummary level informationrequirements?

16. Does the agency's summaryinformation classificationstructure which supports thesummary level informationrequirements, assemble thedata into meaningfulcategories that can be madeaccessible for a variety ofreporting purposes?




NA

Explanation

17. Do the agency transactionclassification structure of theevent level architecture andthe summary informationclassification structure andreporting structure of thereporting level architecturework together to provide thenecessary description offinancial events to ensure theintegrity of financial andrelated information collectedand reported?

18. Are the data elements toproperly track and classify afinancial event contained inthe agency's transactionclassification structure andare they categorized asfinancial, program activity, ortransaction control data?




NA

Explanation

19. Does the agency's transactionclassification structure trackindividual transactions andrelate them to financialevents? (The elements offinancial data (e.g., fund,object class, dollar amount)and program activity data(e.g., activity type, programunit) within the transactionclassification structureprovide the minimum dataneeded to derive the fullclassification for financial,operations, and programinformation.)

20. Does the transaction controldata within the agency'stransaction classificationstructure provide the audittrail for financial events andmay it also be used to assessperformance? (Transactioncontrol data include suchelements as transactionsource, document/referencenumber, transaction ID orcontrol number, transactiontype, effective date, andposting date.)




NA

Explanation

21. Does the agency's summaryinformation classificationstructure consist of threeseparate but relatedclassification structures, i.e.,financial, operations, andprogram informationclassification structures?(These three classificationstructures are used tocategorize summary levelfinancial, operations, andprogram informationnecessary for users tounderstand the financialimplications of decisionsmade and to trackperformance of operationsand programs.)

22. Does the agency's financialinformation classificationstructure provide forcollecting budget andfinancial information for

-- reporting?-- ensuring financial

accountability?-- linking budget formulation

and budget execution?




NA

Explanation

23. Does the agency's financialinformation classificationstructure contain the

-- organization unit?-- funding identification?-- accounting categorization?-- program?-- cash tracking?-- special descriptors?-- accumulators?

24. Is the organization unit thelevel at which financialinformation is consolidatedand reported within theagency or externally tocentral agencies? (Anorganization unit may alsorepresent a level at whichfinancial information isfurther consolidated bycentral agencies after it isreported by programagencies.)

25. Is the agency's fundingidentification used to controlthe formulation andexecution of the budget?(These elements are usuallyassigned during the budgetformulation process.)




NA

Explanation

26. Are accounting categorizationelements used to track theagency's assets, liabilities,equity, and the sources anduses of funds?

27. Does the agency use programelements to support theaggregation of financialinformation related tospecific activities orpurposes?

28. Does the agency use cashtracking elements to controlthe cash flow processesassociated with paymentsand deposits at Treasury orother authorized depositoryarrangements?

29. Does the agency use specialdescriptors (additionaldescriptive elements at alevel below those requiredfor controlling or trackingfunds) to further aggregateand describe data streams?




NA

Explanation

30. Does the agency use financialaccumulators (i.e., financialamounts and relatedinformation (e.g., units orlabor hours) aggregated fromfinancial events reflectingtime periods (e.g., daily,monthly, prior year orcurrent year), anticipatedactivity (e.g., budgets orobligations), or analyticscenarios (e.g., percentagereduction in spending orchanging inflation factor)?




NA

Explanation

31. Does the agency's operationsinformation structure capturethe following types ofinformation:

-- operations unit, that is theidentification of anoperation to bemonitored?

-- activity type, thatidentifies the activity tobe measured within anoperations unit toaccurately diagnoseproblem areas or areasneeding improvements inefficiency?

-- efficiency measures, thatreflect the volume,frequency, or timingassociated with an activitytype?

-- standards, that set thetargets for performancemeasurement?

-- accumulators(operations), that trackevent occurrencesaccording to theefficiency measuresreflecting time periods(e.g., daily, monthly, prioryear, or current year) tosupport trend analysis?




NA

Explanation

32. Do the data elements for theagency's program informationclassification include

-- the nonfinancial datanecessary to support theGovernment Performanceand Results Act of 1993?

-- the program unit, that isthe program level wherethe activity is to bemeasured?

-- effectiveness measures,that reflect resourcesapplied and the outputsand outcomes achieved bya program unit?

-- goals and objectives, thatdescribe management'sprojected outputs,outcomes, and results?

-- program accumulators that enable quantifiablemeasures used todetermine theeffectiveness of programactivities?




NA

Explanation

33. Does the agency's reportingstructure supportrequirements for reportingand providing information on

-- the financial status ofgovernment operationsand the use of financialresources (financialreporting)?

-- the effectiveness andefficiency of delivery(performance reporting)?

34. Does the agency's reportingstructure facilitate analysis offinancial, operations, andprogram information byidentifying and reportingvariances between actualresults and plans?




NA

Explanation

35. Does the agency's reportingstructure allow for theincorporation of data fromsources other than thefinancial managementsystems and reportinformation consistently andat the appropriate levels ofdetail for users throughoutthe government who need tounderstand the financialimplications of programactivity?

36. Does the agency's reportingstructure support reportingrequirements of the CFO Actof 1990, the GovernmentPerformance and Results Actof 1993, the GovernmentManagement Reform Act of1994, and relatedimplementing guidance?



Systems architecture Yes/no

NA

Explanation

1. Do agency systems retain thetransaction level detailneeded to support centralfinancial information?

2. Does the agency receiveinformation from the centralfinancial information systemson the status of funds anddifferences between thecentral financial informationsystems and the agency'sfinancial managementsystems?

3. Is the agency's financialmanagement system linkedelectronically to the centralcash processing systems?

4. Is the agency's financialmanagement informationreconciled periodically withthe central financialinformation?




NA

Explanation

5. Do the agency's financialmanagement systems trackfinancial events andsummarize information to

-- support the mission of theagency?

-- provide for adequatemanagement reporting?

-- support agency levelpolicy decisions necessaryto carry out fiduciaryresponsibilities?

-- support the preparation ofauditable financialstatements?

6. Do the agency's financialmanagement systems fall intothese four categories?

-- Core financial systems-- Other financial and mixed

systems-- Shared systems-- Departmental executive

information systems

7. Are the agency systemslinked together electronicallyto be effective and efficient?




NA

Explanation

8. Does the agency providesummary data from itssystems to central systems topermit summaries ofmanagement information andagency financial performanceinformation on agovernmentwide basis?

9. Is the agency's systemsarchitecture consistent withgovernmentwide standardsand requirements?




NA

Explanation

10. Does the agency systemsarchitecture have thefollowing components of asingle, integrated financialmanagement system:

-- Core financial system?-- Personnel/payroll system?-- Travel system?-- Seized/forfeited asset

system?-- Direct loan system?-- Guaranteed loan system?-- Benefit payment system?-- Insurance claim system?-- Grant system?-- Inventory system?-- Property management

system?-- Acquisition system?-- Revenue system?-- Budget formulation

system?-- Managerial cost

accounting system?-- Financial reporting

system?-- Departmental executive

information system?

(Some types are notapplicable to all agenciesbecause their missions andprograms do not require thattype of support.)




NA

Explanation

11. Has the agency identifiedhow its financial managementsystems support the financialevent processing andprogram delivery/mechanismsto form the single integratedfinancial managementsystem, as demonstrated byexamples in illustration VI-3on page 55 of the sourcedocument?

12. Do the agency's financialmanagement systems havethe following characteristicsnecessary for integration:

-- Common data elements?-- Common transaction

processing?-- Consistent internal

controls?-- Efficient transaction

entry?




NA

Explanation

13. Does the agency use standarddata classifications(definitions and formats)established and used forrecording financial eventsand common data elementsto meet reportingrequirements and, to theextent possible, usedthroughout the agency for thecollection, storage, andretrieval of financialinformation?

14. Has the agency incorporatedgovernmentwide informationstandards (such as the U.S.Government StandardGeneral Ledger) and otherexternal reportingrequirements into itsstandard data classificationrequirements?

15. Does the agency use commonprocesses for processingsimilar kinds of transactionsthroughout the system toenable these transactions tobe reported in a consistentmanner?




NA

Explanation

16. Are the agency's internalcontrols over data entry,transaction processing, andreporting applied consistentlythroughout the system toensure the validity ofinformation and protection offederal governmentresources?

17. Do the agency's financialsystem designs eliminateunnecessary duplication oftransaction entry? (Whereverappropriate, data needed bythe system to support thefinancial function shall beentered only once. Otherparts of the system shall beupdated through electronicmeans consistent with thetiming requirements ofnormal business/transactioncycles.)

18. Is the user able to have oneview into the agency'ssystems so that at whateverlevel the individual is usingthe system, he or she can getto the information neededefficiently and effectivelythrough electronic means?




NA

Explanation

19. Are easy reconciliationsbetween agency systemswhere interface linkages areappropriate maintained toensure the accuracy of thedata?

20. Does the physical design ofthe agency's system consider

-- the agency'sorganizational philosophy?

-- the technical capabilitiesavailable?

-- the most appropriatemanner to achieve thenecessary single,integrated financialmanagement system forthe agency?



Internal control Yes/no

NA

Explanation

1. Do the agency's financialmanagement systems

-- contain a sufficientnumber of appropriate,cost-effective controls tosafeguard assets?

-- ensure accurateaggregation and reportingof information?

-- support theaccomplishment oforganizational objectives?

2. Are the agency's controls

-- built into systems design?-- periodically checked for

effectiveness andrelevancy?

3. Does the agency balancesafeguards necessary toensure the integrity ofoperations and data with theneed to make accessible,timely, and accurate dataavailable to managers andothers needing financialinformation?




NA

Explanation

4. Do the agency's internalcontrol procedures supportits ability to prepare financialstatements that are fairlypresented in conformity withgenerally accepted or otherrelevant and appropriateaccounting principles andregulatory requirements?

5. Are all five interrelatedcomponents of internalcontrol (control environment,risk assessment, controlactivities, information andcommunication, andmonitoring) present andfunctioning effectively for theagency to conclude thatinternal control is effective?

6. Does the agency use riskassessment to identify andanalyze risks relevant to theachievement of the entity'sobjectives? (Risk assessmentforms a basis for determininghow the risks should bemanaged.)




NA

Explanation

7. Does the agency determinehow much risk is to beprudently accepted and striveto maintain risk within theselevels?

8. Does the agency useobjective setting as aprecondition to riskassessment?

9. Are the types of controlsbuilt into the agency'ssystems commensurate with

-- the significance of risks?-- the likelihood or

frequency of risksoccurring?

-- management's assessmentof what actions need tobe taken to manage risks?




NA

Explanation

10. Is the agency's choice ofinternal controls based on anumber of risk factorsincluding, but not limited to,the

-- inherent nature of theinformation?

-- possible consequences ofincorrect information?

-- needed degree ofreliability of theinformation?

-- cost-effectiveness of usinga particular control andthe relative effectivenessand efficiency ofalternative controls?

-- vulnerability of assets toloss or misuse?

11. Are control activities (thepolicies and procedures thathelp ensure that managementdirectives are carried out)used to help ensure thatnecessary actions are takento address risks to achievethe agency's objectives?




NA

Explanation

12. Does the agency use controlactivities throughout theorganization, at all levels, andin all functions?

13. Does the agency use thefollowing two broadgroupings of informationsystems control activities:

-- general controls, whichapply to all financialmanagement systems andhelp ensure theircontinued, properoperation?

-- application controls,which includecomputerized capabilitieswithin the applicationsoftware and relatedmanual procedures tocontrol the processing ofvarious types oftransactions?




NA

Explanation

14. Do the agency's generalcontrols include controlsover

-- data center operations?-- system software

acquisition andmaintenance?

-- access security?-- application system

development andmaintenance?

(These controls apply to allsystems--mainframe, client/server, and end-usercomputing environments.)

15. Do the agency's data centeroperations controls include

-- job setup and scheduling?-- operator actions?-- backup and recovery

procedures?-- contingency or disaster

recovery planning?




NA

Explanation

16. Do the agency's systemsoftware controls includeeffective controls over

-- acquisition?-- implementation and

maintenance of systemsoftware--the operatingsystem?

-- database managementsystems?

-- telecommunicationssoftware?

-- security software?-- utilities that run the

system and allowapplications to function?




NA

Explanation

17. Do the agency's accesssecurity controls protect thesystem, including

-- prevention ofunauthorized access todata, whether by entityemployees or others?

-- physical protection ofassets (including building,rooms, machines,magnetic media) from allunauthorized persons?

-- recording and review ofall attempts atunauthorized access?

-- prevention of disclosureof critical data duringcommunications?

18. Do the agency's applicationsystem development andmaintenance controls providethe control structure fordeveloping systems andappropriate control overchanges to systems?




NA

Explanation

19. Do the agency's applicationcontrols manage applicationprocessing and help toensure the completeness andaccuracy of transactionprocessing, authorization, andvalidity?

20. Do the agency's authorizationcontrols provide reasonableassurance that (a)transactions, (b) events fromwhich they arise, and (c)procedures under which theyare processed are authorizedin accordance with laws,regulations, and managementpolicy?

21. Do the agency's approvalcontrols provide reasonableassurance that appropriateindividuals approve recordedtransactions in accordancewith management's generalor specific criteria?




NA

Explanation

22. Do the agency's segregationof duties controls effectivelyreduce the opportunity forsomeone to perpetrate orconceal errors orirregularities in the normalcourse of duties?

23. Do the agency's controls overthe design and use ofdocuments and recordsprovide reasonable assurancethat transactions and eventsare properly documented,recorded, and auditable?

24. Does the agency haveadequate safeguards overaccess to and use of assetsand records to protect themagainst physical harm, theft,loss, misuse, or unauthorizedalteration?

25. Does the agency useindependent check controls--including statistical samplingand post-event managementreviews--to provideindependent assurance of thevalidity, accuracy, andcompleteness of processeddata?




NA

Explanation

26. Do the agency'scomputerized edit checksconsist of format, existence,reasonableness, and otherchecks on the data which arebuilt into each applicationduring its development?

27. Is pertinent informationidentified, captured andcommunicated in a form andtime frame that enablesagency staff to carry out theirresponsibilities?

28. Do the agency's informationsystems produce reportscontaining operational,financial, and compliancerelated information thatmakes it possible to run andcontrol the entity?




NA

Explanation

29. Does the agency ensurequality of information withcontrols over

-- recognition andmeasurement of recordedamounts?

-- summarization ofaccounting and budgetarydata?

-- rights and obligations ofthe entity?

-- presentation anddisclosure of information?

30. Are the agency's internalcontrol systems monitored toassess the quality of theirperformance over time?

31. Is the agency's system qualityassessment accomplishedthrough ongoing monitoringactivities, separateevaluations, or a combinationof the two?

32. Are the agency's chieffinancial officer and its otheraccounting officers central tothe way managementexercises control?




NA

Explanation

33. Is it clear that all personnelare responsible forcommunicating upward theagency's operating problemsand noncompliance with lawsand regulations?

34. Are the inspector general andexternal auditors contributingto the achievement of theagency's objectives andplaying an important role inhelping management evaluatethe effectiveness of controlstructures?

35. Do the agency's internalcontrols balance the riskassessment of the benefits ofcontrols against their costs indetermining the scope anddepth of controls needed toensure the integrity of dataused in decision-making andin deterring fraud, waste, andabuse?




NA

Explanation

36. Do the internal controlsprovide reasonable assurancethat the agency is makingprogress toward achieving itsobjectives, recognizing that(a) controls can becircumvented by collusion ormanagement overrides of thesystem and (b) to the extentthat losses may occur,effective financial reportingcontrols exist to properlyreflect the loss information inthe financial statements,thereby alerting users toconsider the need for action?



Implementing the integrated

model for financial

management systems

Yes/no

NA

Explanation

1. Are the agency's financialmanagement system plansconsistent with its strategicplan for the organization anddoes the strategic plan havetop-level support andcommitment?

2. Is strategic informationmanagement a part of theagency's strategic planningefforts? (A good reference inaddressing strategicinformation management isthe Executive Guide:Improving MissionPerformance ThroughStrategic InformationManagement and Technologyissued by the GeneralAccounting Office (May1994).)




model for financial

management systems

Yes/no

NA

Explanation

3. Does the agency's financialmanagement system planningsupport the overall strategicdirection of the organization'sfinancial managementactivities and is it consistentin approach and timing withthe plans for informationresource management andtechnology?

4. Do the agency's financialmanagement system planningefforts consider the

-- possibilities andimplications of improvedcommunications acrossorganizationalboundaries?

-- sharing of informationbetween operating unitsand systems?

-- ability to streamlineprocesses throughout anorganization?




model for financial

management systems

Yes/no

NA

Explanation

5. Are standard planning andcontrol approaches, such aslife cycle methodologies andscreen design standards

-- adopted for design,development,implementation, andoperation of the agency'sfinancial managementsystems?

-- consistent across allagency financialapplications and in agreement with itstechnical architecture andoverall systemdevelopment approach?

6. Does the agency's planningprocess consider datacontained in and processessupported by existingsystems? (Improvement plansmust account for theseexisting systems byincorporating theirprocessing requirements andreplacing them or interfacingtheir data with newerapplications.)




model for financial

management systems

Yes/no

NA

Explanation

7. Does the agency havelong-range system planningthat defines and prioritizesprojects, identifies resourcesneeded (time, staff,technology, skill, funding,etc.), and schedules projectsto balance resourcerequirements and functionalneeds?

Has the agency followed the minimum steps (outlined in questions 8 through 15)needed for the successful planning of financial management systems projects?

8. For its financial managementactivity, has the agency (a)developed overall objectives that are consistent with theprogram and policy needs ofthe agency and (b) definedthe supporting systemsneeded?

9. Has the agency assessedexisting financialmanagement systems andobtained input from usersabout needed improvements?




model for financial

management systems

Yes/no

NA

Explanation

10. Has the agency determinedhow financial managementsystems are to (a) share dataand processing with otherinformation systems and (b)be supported by theinformation technologyinfrastructure? (This stepmay include comparing(benchmarking) operationsboth within and outside ofthe government.)

11. Has the agency establishedclear roles andresponsibilities for all theparties necessary toaccomplish the overallobjectives of ensuring that(a) senior executives supportdesired efforts, (b) projectmanagers are given clearresponsibilities, (c) projectscopes are understood, and(d) issue resolution processesare in place to resolveconflicts (policy, procedural,resource, or organizational)?




model for financial

management systems

Yes/no

NA

Explanation

12. Has the agency identifiedprojects that can meetspecified objectives andachieve the envisioned targetsystem environment?

13. Has the agency set prioritiesand selected projects fromalternatives? (This shouldinvolve getting direct inputfrom top-level management,decisionmakers in theorganization (including theCFO, chief informationofficer, and programmanagers) and otherstakeholders.)

14. Has the agency determinedresources needed tocomplete the selectedprojects?

15. Has the agency developed aproject schedule and budgets,including milestones anddeadlines?




model for financial

management systems

Yes/no

NA

Explanation

16. Does the agency, as part ofcarrying out its project plan,periodically report onprogress to both seniormanagement and the projectteam so that everyone isinformed, issues are managedas they arise, and desiredoutcomes are achieved?

17. Are agency planners anddevelopers applyingarchitectural design,synthesis, and coordinationto achieve the goal ofsystems that will worktogether?

18. Have agency planners anddevelopers developed atop-down overview of theprocesses and the data to beused?

19. Are the data employed byseparately developed agencysystems compatible andderived from the sameoverall data model?




model for financial

management systems

Yes/no

NA

Explanation

20. Has the agency coordinatedthe perspectives and views ofteams and team memberswithin individual projects,between the various stages ofa development path (verticalintegration), and amongmultiple projects occurring inparallel (horizontalintegration)?

21. Has the agency followedrelevant federal government,commercial, or otherapproved standards forindividual financialmanagement systems, asapplicable?

22. Does the agency usestandardized internalinterfaces between modules,programs, and subsystems?

23. Has the agency considereddistributed computing,client/server, and cooperativeprocessing methods that takeadvantage of new complexcomputing capabilities nowavailable to support systems?




model for financial

management systems

Yes/no

NA

Explanation

24. Does the agency performtransaction edits close to thepoints of entry to facilitateresearch and corrections?

25. Does the agency validate allcomponents of the dataclassification structure whentransactions are entered intothe financial managementsystem?

26. Does the agency use commontables for account, program,vendor, and other codes thatare accessed by allapplications of the integratedfinancial management systemand related systems?




model for financial

management systems

Yes/no

NA

Explanation

27. Has the agency consideredthe more complicated tasksof

-- managingtelecommunications?

-- maintaining versioncontrol over software andhardware?

-- ensuring data integrityand consistencythroughout the system?

-- providing effective usertraining anddocumentation whenmoving from large,monolithic centralizedsystems to systems madeup of many smallcomponents spread acrossa network?

28. For its diverse hardware andsoftware, has the agencyformed a seamless,integrated solution that meetsa variety of needs byintegrating networks withstandardized interfaces?




model for financial

management systems

Yes/no

NA

Explanation

29. Has the agency consideredinformation accessibility andcomputer accommodation forthe disabled?

30. Does the agency'sdevelopmental approachsupport the overall vision forthe target financialmanagement systemsenvironment, and is itconsistent with applicablestandards?

31. Can an incrementaldevelopment approachprovide benefits to systemcustomers relatively quicklywhile moving toward longerterm objectives?

32. Can new system capabilitiesbe tested on a pilot basis toassure workability andacceptance beforecommitting an organization'sresources to an inadequate orinappropriate solution?




model for financial

management systems

Yes/no

NA

Explanation

33. Is the agency using businessprocess reengineering (BPR)as an effective way toidentify and accomplishneeded changes that may besignificant in nature?

34. Has the agency addressed theissue of managing changewhen financial systemsdevelopment projects areundertaken?




model for financial

management systems

Yes/no

NA

Explanation

35. Has the agency consideredthe following alternativestrategies for developmentapproaches:

-- upgrading or refurbishingexisting systems?

-- implementing off-the-shelfpackaged software withor without modifications?

-- entering into a cross-servicing or supportarrangement with anotherfederal organization?

-- contracting out systemfunctions?

-- custom developing a newsystem or otherpossibilities identifiedduring the planningprocess?

36. Has the agency prepared ananalysis of alternatives basedon objective criteria andidentified pros and cons?




model for financial

management systems

Yes/no

NA

Explanation

37. Has the agency determinedthe most advantageousapproach based oncomparing costs, benefits,and risks associated with allfeasible alternatives?

38. Is the agency's plan for thecustom development ofsystems applications used asa last resort and only afterconsideration of allappropriate software options?

39. Has the agency consideredusing Computer-AidedSoftware Engineering (CASE)tools to improve control overthe design and developmentprocess, and/or RapidApplication Developmenttechniques such asprototyping to improve useracceptance where customdevelopment is required?




model for financial

management systems

Yes/no

NA

Explanation

40. Has the agency's systemsecurity been established andmaintained following thecomputer security policiesset forth in appendix III toOMB Circular A-130, Securityof Federal AutomatedInformation Systems?

41. Does the agency's computersecurity program include

-- assignment ofresponsibility for security?

-- environment securityplans?

-- review of securitycontrols?

-- training?-- personnel screening?-- incident response

capability?




model for financial

management systems

Yes/no

NA

Explanation

42. Is the agency's user trainingprogram flexible enough tomeet various levels of userneeds (such as seniormanagement,mid-management, andfinancial personnel), basedon their roles andresponsibilities within theorganization?

43. Does the agency's trainingprogram address these threegroups of individuals:

-- systems personnel(computer specialists andanalysts)?

-- operations personnel(computer operators)?

-- users (financialmanagement and programpersonnel)?




model for financial

management systems

Yes/no

NA

Explanation

44. Does the agency's trainingprogram for systemspersonnel address thetechnical environment(hardware and software)used to develop the financialmanagement system, as wellas the policies andprocedures for maintainingthe system (fixes andenhancements)?

45. Does agency's trainingprogram for operationspersonnel address the actualoperation of the computer(s)supporting the financialmanagement system, withspecific attention directedtoward how to operate thecomputer and what to do ifcertain problem situations,such as power or systemfailures, occur?

46. Does agency's training foruser personnel address theusers entering the data(input) and the users who areusing the data presented inmanagement reports (output)for decision-making?




model for financial

management systems

Yes/no

NA

Explanation

47. Has the agency consideredtraining selected individualsto serve as a core cadre oftrainers and then having thecore trainers train others intheir organizational units?

48. Do agency trainers possess athorough working knowledgeof the system (hardware,software, required inputs, andoutputs) and the policies andprocedures in place relatedto the system?

49. Do the agency trainersunderstand not only thefinancial managementsystem, but also the generaloperation of computers(mainframe and personalcomputers)?

50. Are the agency trainersskilled communicators,capable of keeping theaudience attentive, whileclearly providing thenecessary level ofinstruction?




model for financial

management systems

Yes/no

NA

Explanation

51. Do the agency trainersrecognize what levels ofdetail are appropriate,depending on the skills of thestudents?

52. In developing andimplementing trainingprograms, has the agencyconsidered using electronicmedia and other technologyto facilitate training forindividuals in the mosteffective and efficientmanner?

53. Does the agency use andreview on a regular basiscarefully developedevaluations that allow thestudents to clearly identifystrengths and deficiencies inthe training program,including the effectiveness ofthe trainer?

54. Is the agency'sdocumentation geared to thelevels of the end users andtheir roles andresponsibilities within theorganization?




model for financial

management systems

Yes/no

NA

Explanation

55. Is the agency'sdocumentation user friendlyand kept up-to-date, and doesit include all of theinformation needed tooperate the softwareeffectively within the agencyenvironment?

56. Does the agency have, as aminimum, the following typesof financial managementsystems documentation:

-- systems documentation?-- operations

documentation?-- user documentation?

57. Does the agency test thedeliverables of a financialsystem project to ensure theintegrity of the system?




model for financial

management systems

Yes/no

NA

Explanation

58. Does the agency's testingprocess involve

-- software?-- training materials?-- documentation?-- changes to edit tables?-- inter- and intra-system

module interfaces?-- screens?-- reports?-- operating procedures?-- equipment?

59. Is the agency project leaderensuring that testing isperformed and that the mostappropriate testing programis applied to the situation?

60. Is the agency conductingsystem testing at variousstages of the implementationprocess, and is it adequate toensure that the systems willmeet agreed-to user needs?




model for financial

management systems

Yes/no

NA

Explanation

61. Does the agency testingverify the following:

Software FunctionalCapabilities-- screens and reports are

working?-- software executes as

required?-- documentation and

training materials reflectthe software capabilities?

User Acceptance-- software functions meet

user requirements?-- automated processes

support desired workprocesses?

System Acceptance-- system works with

expected volumes?-- system interfaces work

properly?-- automated conversion

processes convert dataproperly?

-- software works in theproduction environment?




model for financial

management systems

Yes/no

NA

Explanation

62. Has the agency establishedappropriate approval criteriafor each type of testing sincequality testing and review arecritical to financial systemsimplementation success?

63. Has the agency takenappropriate precautions toensure that test andproduction environments areseparated?

64. Is the agency using thefollowing three elements intransitioning to a newfinancial management system:

-- using change managementto assist in organizationaladjustments necessary totake proper advantage ofa new system?

-- installing new softwareand procedures to supportthe new way work will beperformed?

-- eliminating the oldsystems, includingsoftware, procedures, andpolicies?




model for financial

management systems

Yes/no

NA

Explanation

65. Is the agency takingadvantage of opportunities tostreamline processes,produce more meaningfuland accurate information,and automate tasks, therebyallowing better analysis anddecision-making andimproving service delivery?

66. Does the agency'smanagement recognize thatrisks need to be assumed ifbenefits are to be achievedand is it aware of the risk ofcontinuing with the "statusquo"?

67. Have the agency's managers,employees, and others beenprepared to use the newlyimplemented system?

68. Has the agency consideredwhether the preparation ofphysical sites is required?

69. Has the agency converteddata from its old systems or created new data if required?




model for financial

management systems

Yes/no

NA

Explanation

70. Has the agency sought theopinions of all participants inthe process (a) beforefinalizing a new system and(b) on implementation?

71. Has the agency provided fortraining and documentationupdates throughout the life ofthe system?

72. Has the agency consideredthe three primary techniquesfor transitioning to a newsystem:

-- Incrementalimplementation beginningwith a pilot(s) andphasing in operations byorganization or function?

-- Stopping the operations ofthe old system andstarting the new system atonce?

-- Running the new and existing systems inparallel?




model for financial

management systems

Yes/no

NA

Explanation

73. Does the agency's choice of transitioning method considerthe benefits and risks of eachmethod, resources availablefor implementation, andimpact on the organizationaffected by the change?

74. Is the agency fully using thecapabilities of the newsystem and processes, andhas it discontinued theoperation of the old system?

75. Is the agency's team oftrained computer andfinancial systems analystsinvolved in the developmentof the system providingpost-implementation support?

76. Is the agency's post-implementation team,separate from the help deskrole, assessing theimplementation of the systemand making improvementrecommendations to projectmanagers?




model for financial

management systems

Yes/no

NA

Explanation

77. Is the post-implementationteam considering andproviding feedback to thesystems developers andanalysts on adjustmentssuggested by the users?

78. Are all parties associatedwith the maintenance andoperations of the agency'sfinancial managementsystems ensuring that designconcepts are sustainedthroughout the life cycle ofsystems and that the systemsoperate to meet the changingneeds of the users?




model for financial

management systems

Yes/no

NA

Explanation

79. Are agency support personnelavailable to

-- maintain userdocumentation?

-- adjust security privileges?-- reconcile interfacing

system feeds?-- maintain systems tables?-- conduct ongoing user

training in systemoperations?

-- assist in the testing ofchanges to the systems?

-- enable year-end andspecial operationsactivities?

80. Are the individualsresponsible for monitoringand managing the productionand operations of theagency's financial systemsensuring that any systemproblems are fullyunderstood and that controlbreeches are correctedpromptly?




model for financial

management systems

Yes/no

NA

Explanation

81. Are the initial standardizedreports followingimplementation of the agencyfinancial system sufficient tomeet management needs?

82. Does the agency constantlyreview its financial systemsto determine adjustmentsnecessary to meet the needsof the organizational andfunctional environments?

83. Are the agency's changerequests adequatelycoordinated and analyzed toensure consistency withagency policy, userrequirements, andimplementation schedules?

84. Does the agency's approvalprocess reflect itsappropriate priorities?

85. Does the agency's changecontrol process include amechanism for settingpriorities?




model for financial

management systems

Yes/no

NA

Explanation

86. Does the agency have theability to track and controlthese priotorized changes?

87. Is the agency ensuring thatchanges are made in anorderly manner and thatmodification schedules aremet?

88. Do the agency's changecontrol procedures clearlydefine, for all parties, thenature of the changesrequired and ensure

-- adequate documentationof the specific changesand problems?

-- appropriate approvals?-- timely resolution of

change requests?




model for financial

management systems

Yes/no

NA

Explanation

89. Have changes to thefollowing been coordinatedwith the agency's financialsystems manager:

-- the operating system?-- database software?-- telecommunication

services?-- hardware platforms?-- applications software?

90. Does the agency have astructured methodology formanaging the configurationof software, hardware, data,telecommunications, andprocedures?

91. Does the agency track,control, and coordinatesoftware versions used bymultiple organizations("common version controlover software" as used inOMB Circular A-127)?




model for financial

management systems

Yes/no

NA

Explanation

92. Are agency changes tosoftware identified andgrouped into identifiablesoftware releases andsub-releases under versioncontrol?

93. Does the agency's versioncontrol also coordinatechanges to other componentsof the system?

(922250)


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