GAO-02-762G Benefit System Requirements: Checklist for Reviewing Systems … · 2011-09-30 · Page...

a

GAOUnited States General Accounting Office

Exposure Draft

September 2002 BENEFIT SYSTEM REQUIREMENTS

Checklist for Reviewing Systems under the Federal Financial Management Improvement Act

GAO-02-762G

Page 1 GAO-02-762G – Benefit System Requirements Checklist – Exposure Draft (9/02)

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PREFACE

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September 2002

The Federal Financial Management Improvement Act of 1996 (FFMIA) requires, amongother things, that agencies implement and maintain financial management systems thatsubstantially comply with federal financial management system requirements. Theserequirements are detailed in the Federal Financial Management System Requirementsseries issued by the Joint Financial Management Improvement Program (JFMIP) and inthe 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 financialmanagement systems concepts and requirements, to provide a framework for establishingintegrated 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 monitoringtheir benefit systems and (2) managers and auditors in reviewing their benefit systems todetermine if they substantially comply with FFMIA. Among the types of benefit programscovered by these systems would be those for retirement, disability, death, survivor, andother.

This checklist is not required to be used in assessing benefit systems. Rather, it isprovided as a tool for use by experienced staff and is one in a series of documents wehave issued to assist agencies in improving or maintaining effective operations. (See thelast page of this document for a list of related products.) This checklist, the JFMIPsource document, and the two previously mentioned OMB documents should be usedconcurrently. Those using this tool must apply experienced judgment in its interpretationand application. They must consider the impact of the completed checklist on an entirebenefit system and whether the system, as a whole, substantially complies withrequirements.

Additional copies of the checklist can be obtained from the U.S. General AccountingOffice by calling (202) 512-6000 or TDD (202) 512-2537. This checklist exposure draft isavailable on the Internet on GAO’s home page (http://www.gao.gov) under “OtherPublications” and the subheading “Accounting and Financial Management.” Copies of theJFMIP document can be downloaded from the JFMIP Web site at http://www.jfmip.gov

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

Jeffrey C. SteinhoffManaging DirectorFinancial Management and Assurance

http://www.gao.gov/

Page 2 GAO-02-762G - Benefit System Requirements Checklist – Exposure Draft (9/02)

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CONTENTS

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Page Number

Overview 5

Authoritative Guidance 6How to Use This Checklist 7

Benefit System Requirements 8

Functional Requirements 9

Claims Acceptance and Tracking 9Claims Processing 13Benefit Payment Administration 24Recovery Receivable Management 47Accounting for Benefit Transactions 60Reporting 70Interfaces 79Quality Assurance and Maintenance 83Technical Functions 88

Information Stores 99

Application Information Stores 99Claimant Master Record Information Store 111Financial Information Store 113

Figure 1: Agency Systems Architecture 5

Related Products 115


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CONTENTS

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Abbreviations

ACH automated clearinghouseALC agency location codeCDO chief disbursing officerCFO chief financial officerCFR Code of Federal RegulationsCSRS Civil Service Retirement SystemDCA Debt Collection Act of 1982DCIA Debt Collection Improvement Act of 1996DOD Department of DefenseDOL Department of LaborEFT electronic funds transferFACTS Federal Agencies’ Centralized Trial Balance SystemFASAB Federal Accounting Standards Advisory BoardFERS Federal Employees Retirement SystemFFMIA Federal Financial Management Improvement Act of 1996FFMSR Federal Financial Management System RequirementsFMS Financial Management ServiceGMRA Government Management Reform Act of 1994GPRA Government Performance and Results Act of 1993HHS Department of Health and Human ServicesIVR interactive voice responseIRS Internal Revenue ServiceJFMIP Joint Financial Management Improvement ProgramOMB Office of Management and BudgetOPM Office of Personnel ManagementRRB Railroad Retirement BoardSFFAS Statement of Federal Financial Accounting StandardsSGL U.S. Standard General Ledger

SSA Social Security AdministrationSSN Social Security NumberTAFS Treasury account fund symbolTFM Treasury Financial Manual

TIN taxpayer identification numberTOP Treasury Offset ProgramUSC United States Code VA Department of Veterans Affairs


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OVERVIEW

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FFMIA requires, among other things, that agencies implement and maintain financialmanagement systems that substantially comply with federal financial managementsystem requirements. These requirements are detailed in the Federal FinancialManagement System Requirements series issued by the Joint Financial ManagementImprovement Program (JFMIP)1 and in Circular A-127, Financial Management Systems,

issued by the Office of Management and Budget (OMB). The JFMIP requirementsdocument describes the federal financial system architecture as consisting of (1) corefinancial systems, (2) other financial and mixed systems (including the benefit systemrequirements), not all of which are applicable to all agencies, (3) shared systems, and (4)departmental executive information systems (systems to provide managementinformation to all levels of management).2 Figure 1 is the JFMIP model that illustrateshow these systems interrelate in an agency's overall systems architecture.

Figure 1: Agency Financial Management Systems Architecture

Departmental Executive Information System

Workstation Support Tools

GuaranteedLoan

System

DirectLoan

System

SeizedProperty

& ForfeitedAsset

System

TravelSystem Human Resources

& PayrollSystem

Non-financialSystems

BudgetFormulation

SystemNon-IncomeTax Revenue

SystemAcquisition

System

PropertyManagement

System

InventorySystem

GrantSystem

Insurance ClaimSystem

FinancialReportingSystem

CoreFinancialSystem

Managerial Cost Accounting

Benefit System

Source: JFMIP Benefit System Requirements (September 2001).

1JFMIP 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 practicesthroughout the government. The program was initiated in 1948 by the Secretary of the Treasury, the Director of the Bureauof the Budget (now OMB), and the Comptroller General. The JFMIP was authorized by the Budget and AccountingProcedures Act of 1950 (subsequently codified at 31 U.S.C. 3511 (d)). The Civil Service Commission, now the Office ofPersonnel Management, joined JFMIP in 1966.2JFMIP has also issued the Framework for Federal Financial Management Systems (FFMSR-0, January 1995), whichdefines the framework for establishing and maintaining financial management systems to support management and deliverprograms of the federal government. GAO published a companion checklist, Framework for Federal Financial

Management System Checklist (GAO/AIMD-98-21.2.1, May 1998).


To date, JFMIP has issued 11 of the 15 functional requirements shown in figure 1. 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 implementingand monitoring their benefit system(s) and (2) managers and auditors in reviewingagency benefit systems to determine if they substantially comply with FFMIA. Fivecategories of federal benefit programs covered by these system requirements areretirement, disability, death, survivor, and a catch all covering things such as educationbenefits.

This checklist is not a requirement. However, it is provided as a tool for use byexperienced 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 applyexperienced judgment in its interpretation and application. They must consider theimpact 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; OMB circulars A-123 and A-130 that are cited in A-127; and OMB’sJanuary 4, 2001, Revised Implementation Guidance for the Federal Financial

Management Improvement Act provide the basis for assessing compliance with theFFMIA requirements. The OMB guidance identifies various criteria that an agency mustmeet to substantially comply with these requirements. One set of criteria listed in theOMB 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 acknowledgesthat benefit system functionality does not necessarily reside in a single softwareapplication or functional system. In fact, benefit information may reside in or may becalculated in a number of applications or systems. The benefit system described in theJFMIP 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 thechecklist 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 includedin the checklist.

The JFMIP document segregates functional requirements into two general categories—mandatory and value-added. The mandatory requirements describe what the systemmust do. They consist of the minimum acceptable functionality necessary to establish asystem and are based on federal laws, regulations, directives, or judicial decisions.Mandatory requirements are those against which agency heads are to evaluate theirsystems to determine substantial compliance with system requirements under FFMIA.These requirements apply to existing systems in operation and new systems planned or

3Thus far, the series includes the (1) Core Financial System Requirements, (2) Inventory System Requirements, (3)Seized Property and Forfeited Assets System Requirements, (4) Direct Loan System Requirements, (5) Guaranteed Loan

System Requirements, (6) Travel System Requirements, (7) Human Resources & Payroll Systems Requirements, (8)System Requirements for Managerial Cost Accounting, (9) Grant Financial System Requirements, (10) Property

Management Systems Requirements, (11) Benefit System Requirements, and (12) Acquisition/Financial Systems

Interface Requirements.


under development. The checklist uses “M” immediately following the question toindicate a mandatory system requirement.

The value-added requirements describe optional features and may consist of anycombination of the following: (1) using state-of-the-art technology, (2) employing thepreferred or best business practices, or (3) meeting the special management needs of anindividual agency. Agencies should consider value-added features when judging systemsoptions. The need for these value-added features in agency systems is left to thediscretion of each agency head. The checklist uses “V” immediately following thequestion 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) andinspectors general with a means for determining whether their agencies’ financialmanagement systems substantially comply with federal financial management systemrequirements. The annual reporting required by 31 U.S.C. 3512(d) is one means ofassisting agencies in the determination of substantial compliance. Agencies can also usethis checklist as a tool to help determine compliance with federal financial managementsystem requirements.

Completing this checklist will allow agencies to systematically determine whetherspecific systems requirements are being met. In determining substantial compliance,agencies should assess the results of the completed checklist based on the benefit systemrequirements taken as a whole.

The checklist contains three columns with the first citing the question. Use the secondcolumn to answer each question “yes,” “no,” or “na.” Use the third column to explainyour answer. A “yes” answer should indicate that the agency’s benefit system providesfor the capability described in the question. For each “yes” answer, the third columnshould contain a brief description of how the benefit system satisfies that capability andshould 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 thirdcolumn should provide an explanation and, where applicable, a reference to any relatedsupporting documentation (e.g., the agency is working on modifying or implementing itsbenefit system to have the capability available in subsequent years; management believesthe capability is not cost-effective and will not enhance the benefit system’s ability tomanage operations). Cost-benefit studies or support for a “no” answer should beidentified 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 theextent to which the “no” answers inhibit the entire benefit system from achievingcompliance.

Certain questions within the checklist may not be applicable to the agency. Answer thesequestion(s) with “na” and provide an appropriate explanation in the third column.


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BENEFIT SYSTEM REQUIREMENTS

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The benefit system requirements document provides high-level functional requirementsfor benefit systems that can help financial managers, program managers, and otherscontrol and account for federal benefit programs as defined in government and agency-specific statutes, regulations, guidelines, and need assessments. The benefit systemrequirements 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 thefederal benefit system. A benefit system tracks the life of benefit claims frominitial receipt through final payment and maintains a complete history of financialactivity relating to those claims. The federal benefit system primarily consists ofnine major functions and the data processed by those functions. The functionsidentified by the JFMIP source document are (1) claims acceptance and tracking,(2) claims processing, (3) benefit payment administration, (4) recovery receivablemanagement, (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 typesof data. The term information store (rather than database or file) is used to avoidany reference to the technical or physical infrastructure of the data storagemedium. Actual data storage (physical databases and files) must be determined byeach agency during system development and implemented based upon the benefitprogram’s statutory requirements as well as the agency’s technical environment,processing volumes, organizational structure, and degree of system centralizationor decentralization. The JFMIP source document divides the required dataelements into four major groupings. They are (1) application information stores,(2) claimant master record store, (3) program criteria store, and (4) financialinformation store.

The checklist questions follow the JFMIP source document, JFMIP-SR-01-01 September2001, and page number references follow each of the questions. It should be noted thatnot 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 necessaryto fully understand the questions.

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Benefit System Requirements

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Functional RequirementsClaims Acceptance and

Tracking

Yes/no/

na Explanation

1. Does the benefit system captureall applicable and mandatorydata elements (i.e., universaland appropriate) as specified inthe Application InformationStores4 section of thisdocument?5 M (p. 14)6

2. Does the benefit systemmaintain all data elementsspecified in the ApplicationInformation Stores section soinformation is readily accessiblethrough standard on-linequeries7 or reports untilapproval8 or denial of the claim?M (p. 14)

3. By fiscal year 2003, will thebenefit system provide forelectronic acceptance of benefitapplications? M (p. 14)

4. If an agency anticipateselectronic receipt of 50,000 ormore submittals of a particularform, will the benefit systemallow multiple methods ofelectronic signatures for thesubmittal of each form,whenever feasible andappropriate? M (p. 14)

4Application information stores refers to all data recorded from the source document(s) used in determining eligibility aswell as the status of the review and approval of the application5See questions 333 through 387.6Unless otherwise indicated, the page number reference is to JFMIP-SR-01-01.7These are specified in the claims processing section. See questions 16 through 65.8Approval would result in the establishment of a master record.

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Tracking

Yes/no/

na Explanation

5. Does the benefit system providefor the electronicacknowledgment of electronicforms that are successfullysubmitted? M (p. 14)

6. Does the benefit system capturevarious correspondences,including due process requestssubmitted by various electronicmediums, and does itautomatically associate thecorrespondence with a specificclaim plan of action? M (p. 14)

7. For manually submittedcorrespondence, does thebenefit system link thecorrespondence for the requiredaction to one of the following:

a. the specific application or

b. the existing claimant masterrecord? M (p. 14)

8. When electronic methods (e.g.,Web-based communications)are used to facilitate claim formacceptance, does the benefitsystem incorporate input andcompleteness controls toensure that only complete9

applications are accepted by thesystem? M (p. 14)

9. Does the benefit system userhave the ability to flag aclaimant’s paper-basedapplication as incomplete andto suspend further processing

9The claimant fills in all the required fields.

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Tracking

Yes/no/

na Explanation

of the application until it isproperly completed as specifiedby program requirements? M(p.14)

10. Does the benefit system storeincomplete applications inaccordance with agencypolicies and automaticallypurge incomplete applicationsafter a specified period? M (p.14)

11. For each claim, does the benefitsystem associate a uniqueidentifier (e.g., initials or usercode) of the employee assignedto review the claim? M (p. 14)

12. Does the benefit system utilizean alternative applicationprocedure that accommodatespersons with disabilities (e.g.,blind, missing limbs)? M (p. 14)

13. Does the benefit system providecapabilities to track the statusof due process or other appealproceedings, when applicable,after an initial claim has beendenied? M (p. 14)

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Tracking

Yes/no/

na Explanation

14. Does the benefit systemmaintain a record of pendingclaims and the status of otherinformation, including

a. where in the process anongoing claim is located,

b. who is holding the claim,

c. what actions are needed tocomplete the claim,

d. whether additionalinformation is needed, and

e. accommodation ofexplanation codes toindicate the reason why theclaim is pending? V (p. 15)

15. Does the benefit system allowthe user to update the status ofpending claims and otherinformation? V (p. 15)

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Functional RequirementsClaims Processing

Administrative Process

Yes/no/

na Explanation

16. Does the benefit system utilizeclaimant data that have beensubmitted electronically in anautomated fashion withoutmanual intervention? M (p. 15)

17. Does the benefit system havethe ability to date and timestamp due process requests andother time-sensitivecorrespondence that have beenreceived through electronicmediums? M (p. 15)

18. Does the benefit systemaccommodate automated caseworkload distribution byproviding for various claimrouting options10 as determinedand maintained by the systemadministrator? M (p. 15)

10For example, does it provide for the ability to route claims for manual validation?

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Yes/no/

na Explanation

19. Does the benefit systemindicate if the benefit paymentcalculation or verificationthereof has occurred manually?M (p. 15)

20. Does the benefit system either

provide the user with the abilityto update a claimant’s masterrecord with the results of amanual claim validation ormanual verification of thebenefit amount or allow for thecreation of a new masterrecord, if none exists? M (p.15)

21. Does the benefit system havethe ability to capture theinformation needed from theclaimant in order to completean incomplete claim? M (p. 15)

22. Does the benefit system providefor electronic approvals ofclaims at all levels of theapproval process, wheneverfeasible? M (p. 15)

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Yes/no/

na Explanation

23. Does the benefit systemincorporate a notificationmechanism that informs users(i.e., claim evaluators andsupervisors) when anapplication has not completedprocessing within a time framethat can be specified by theagency? M (p. 15)

24. Does the benefit systemfacilitate user queries11 onindividual claims? M (p. 16)

25. Does the benefit systemaccommodate explanationcodes to indicate the reasonwhy a claim has been denied?M (p. 16)

26. Does the benefit systemautomatically create a claimantmaster record12 using theclaimant information for initialclaims that are approved, whena master record for the claimantdid not previously exist? M (p.16)

11For example, are data retrievable by query of full name and social security number (SSN) or taxpayer identificationnumber (TIN)?12The master record must contain all of the mandatory data as specified in the requirements under “Claimant Master RecordInformation Store” section of the Benefit Systems Requirements (see questions 388 through 393).

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Yes/no/

na Explanation

27. Does the benefit systemautomatically update anexisting claimant masterrecord13 to reflect the status(i.e., pending, approved, orrejected) of additional claimsfor other benefits the agencyadministers that are sought bythe claimant? M (p. 16)

28. Does the benefit systemautomatically merge themandatory claimant datamaintained in the applicationinformation stores14 into theappropriate master record aftera claim has been approved anda claimant master record hasbeen established? M (p. 16)

29. Does the benefit system providecapability to generate statisticson approved and rejected claimapplications? M (p. 16)

30. Does the benefit system providecapabilities to accept, identify,track, and report manualoverrides of system-generatedacceptance/rejectionrecommendations? M (p. 16)

13This occurs when the claimant already receives a different type of benefit administered by the agency.14This refers to all data recorded from the source document used in determining eligibility, and it also includes the status ofthe review and approval of the application. See JFMIP-SR-01-01, p. 42, first paragraph.

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Yes/no/

na Explanation

31. Does the benefit system allow auser, who has proper access, toreverse or affirm an initialdecision regarding the denial ofa benefit and process the claimaccordingly? M (p. 16)

32. Does the benefit system providecapabilities to review all prioremployee notations or decisionsmade while processing a benefitclaim? M (p. 16)

33. Does the benefit system providecapabilities to record anestimated completion date forpending claims? V (p. 16)

34. Does the benefit system havethe ability, where multipleclaims exist for the sameclaimant, to process the claimssequentially based on order ofprecedence? V (p. 16)


Eligibility Determination

Processes

Yes/no/

na Explanation

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Processes

Yes/no/

na Explanation

35. Does the benefit system havethe ability to automaticallycompare information containedin application(s) that have beensubmitted by a claimant againstagency program eligibilitycriteria (i.e., screen applicationsfor eligibility)? M (p. 16)

36. Does the benefit system havethe ability to accept the manualvalidation of a claim? M (p. 16)

37. Does the benefit system havethe ability to provide formaintaining separate eligibilitycriteria and processing routinesby type of claim? M (p. 16)

38. Does the benefit system providefor the establishment of variousage limitations, depending onthe type of benefit, forautomatic verification ofprogram eligibility?15 M (p. 16)

39. Does the benefit system havethe ability to cross-validateapplicant information againstdata maintained for otherbenefit payment programs?16 M(p. 17)

15For example, does the system allow for age attainment verification to determine whether one is eligible for Social SecurityAdministration retirement benefits?16For example, can the system ensure that an applicant has not filed for multiple conflicting benefits?

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Processes

Yes/no/

na Explanation

40. Does the benefit system providefeatures to indicate that anapplicant has submitted therequired evidence?17 M (p. 17)

41. Does the benefit system providefeatures to create and maintaina system record of accepted andrejected claim applications? M(p. 17)

42. Does the benefit system providetools to check the appropriatedata files to determine whetherthe applicant has submitted aduplicate application or had arecent benefit applicationrejected? M (p. 17)

43. Whenever legally permitted,does the benefit system providefeatures to determine whetherpayments being made to theclaimant in relation to otherinternal benefit paymentprograms affect the claimant’seligibility or payment amountfor the benefit underconsideration? M (p. 17)

44. Does the benefit system allowthe user to suspend processingof a claim while verifyingquestionable information and torelease the suspended status asappropriate? M (p. 17)

17For example, does the system allow the user to record receipt of a school certification pertaining to a claimant ordependent child?

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Processes

Yes/no/

na Explanation

45. Does the benefit system providethe ability to inform anapplicant of potential eligibilityfor other internal benefitpayment programs? V (p. 17)

46. Does the benefit system havethe ability to automaticallyvalidate survivor applicantinformation against informationabout the deceased/formerspouse or related formerguardian that is maintained in amaster record database? V (p.17)

47. When permitted by statute, doesthe benefit systemautomatically validate dates ofemployment, earnings, andother claimant-specific dataprovided on the application forbenefits against the workhistory and earningsinformation reported to centralagencies such as the InternalRevenue Service (IRS), SocialSecurity Administration (SSA),and Office of PersonnelManagement (OPM)? V (p. 17)

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Computational Processes

Yes/no/

na Explanation

48. Does the benefit system havethe ability to determine if theeffective date of the claim hasbeen reached,18 and does it havethe ability to initiate subsequentprocessing? M (p. 17)

49. Does the benefit system providefeatures to compute the amountof both recurring andnonrecurring benefit paymentsbased on all availableinformation?19 M (p. 17)

50. Does the benefit systemdetermine the ending date forrecurring payments of limitedduration? M (p. 17)

51. When processing an approvedclaim for benefits, such asretirement, disability, death,survivor, and other claims, doesthe benefit system calculate theamount of recurring payment,or does it capture the amount ofthe claimant’s recurringpayment that has beendetermined externally? M (p.17)

52. Does the benefit system provideflexibility in maintaining payrates?20 M (p. 17)

18For example, can it determine the effective date of a retirement claim?19For example, can it determine this using applicant data and specific benefit program criteria?20For example, does it use tables that are easily maintained by the user?

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Yes/no/

na Explanation

53. Does the benefit system providefor adjusting the amount ofpayment when the claimant isreceiving offsetting monetaryamounts?21 M (p. 17)

54. For federal and uniformedservice retirement systems,does the benefit system identifywhether the claimant retiredunder provisions of a voluntaryseparation incentive, and does itcapture the amount of theincentive? M (p. 18)

55. For federal and uniformedservice retirement systems,does the benefit systemcompute the base amount ofretirement pay by determiningthe “highest paid 3622 months ofpaid service?” M (p. 18)

56. Does the benefit systemdetermine the creditable yearsof service based on dates ofemployment or active militaryservice? M (p. 18)

21For example, is military retired pay offset on a dollar-for-dollar basis against veterans compensation, and for individualsunder age 65, are social security benefits offset at a predetermined ratio for every dollar earned by claimant above theestablished threshold amount?22This can also be any other number as required by law, regulation, or statute.

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Yes/no/

na Explanation

57. Does the benefit system providefeatures to calculate theclaimant’s and/or relateddependent’s age based on thebirth date provided in anapplication or other verifiedsource for subsequent use indetermining claimant eligibility?M (p. 18)

58. Does the benefit system providefor user definedreasonableness or tolerablelimit checks on the amounts ofbenefit payments that arecalculated by the system? M (p.18)

59. Does the benefit system flag orsuspend processing of a claimthat fails reasonableness editsto facilitate manual verificationof the amount computed? M (p.18)

60. Does the benefit system enableapproved users to resumeprocessing a claim that wassuspended for failing areasonableness edit once it hasbeen verified as accurate? M(p. 18)

61. Does the benefit system allow auser to initiate the calculationof a claimant’s benefit amountat any time based on claimantdata existing at the time therequest is made? M (p. 18)

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Yes/no/

na Explanation

62. Does the benefit system havethe ability to record the amountof manually computed benefitpayments? M (p. 18)

63. Does the benefit system providefor an automatic system-initiated calculation and/orrecalculation of benefit amountby claim type that is based on aspecific user-defined event suchas claim validation andapproval, court order, claimant-initiated withholding change,etc.? M (p. 18)

64. Does the benefit system providefor automated routines thataccess claimant master recorddata to facilitate calculating theamount of benefits dueclaimants? M (p. 18)

65. Does the benefit system providefeatures to calculate and sendoverpayment information23 tothe receivables and collectionssubsidiary ledger? M (p. 18)

23Overpayment information includes date of occurrence, claimant name, and overpayment amount.

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Functional RequirementsBenefit Payment

Administration

Payee Information Maintenance

Process

Yes/no/

na Explanation

66. Does the benefit systemmaintain payee informationthat includes data to supportobligation, accounts payable,and disbursement processes?M (p. 19)

67. Does the benefit systemsupport payments made toparties who act as agents forthe payee without changingpermanent claimantinformation that is maintainedin the claimant’s masterrecord, such as the claimant’sname, address, or financialinstitution? M (p. 19)

68. Does the benefit system allowthe user to capture thecurrent tax status, number ofexemptions, and otherinformation requested onapplicable IRS withholdingforms (i.e., W-4P, W-4S, andW-4V)? M (p. 19)

69. Does the benefit systemmaintain detailed informationfor each payee to comply withIRS reporting requirements?24

M (p. 19)

24For example, does the system maintain information needed for 1099 reporting, including SSN or TIN? In cases wherepayments are made to third parties who are serving in fiduciary capacities, does the system maintain 1099 information forthe principal party rather that the agent?

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Administration


Process

Yes/no/

na Explanation

70. Does the benefit systemprovide the capability toautomatically update payeerecords to reflect automatedclearinghouse (ACH) orelectronic funds transfer(ETF) related changes?25 M(p. 19)

71. Does the benefit system, at aminimum, accumulate actualpayments for each payeeannually? M (p. 19)

72. Does the benefit systemprovide search capability forpayee information (e.g., payeename)? M (p. 19)

73. Does the benefit systemproduce payee lists based onagency-defined criteria (e.g.,payee name and SSN)? M (p.19)

74. Does the benefit systemmaintain, as part of theclaimant’s master record, acomplete history of allfinancial transactionsexecuted for each payeereceiving benefits under theclaim holder’s masterrecord?26 M (p. 20)

25Treasury, financial institutions, or other sources may supply these updates periodically.26This includes payments, collections, waivers, or offsets resulting from overpayments.

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Administration


Process

Yes/no/

na Explanation

75. For all active payees, does thebenefit system make thefinancial transaction historydata of the most recent 18months available for on-linequery and review? M (p. 20)

76. Does the benefit system allowfor maintaining depositaccount information on atleast two financial institutionsfor a single payee? V (p. 20)

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Administration

Payment Warehousing Process

Yes/no/

na Explanation

77. Does the benefit system havethe ability to determinewhether the benefit paymentis a nonrecurring payment?M (p. 20)

78. Does the benefit systemautomatically determine thedue date and amount ofbenefit payments? M (p. 20)

79. Does the benefit systemreestablish payables forvoided checks or EFTs thatwere not successful? M (p.20)

80. Does the benefit system allowfor reversing the accountingtransaction leading to thedisbursement andreestablishing a payable, asappropriate? M (p. 20)

81. Does the benefit system allowanticipated obligation orexpenditure transactions sothat documents may beentered early, stored, andposted at the appropriatedate? V (p. 20)

82. Does the benefit systemsubject these documents27 toedit and validationprocedures prior to posting?V (p. 20)

27Please refer to the previous question.

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______________________________________________________________________________



Administration

Payment Warehousing Process

Yes/no/

na Explanation

83. If the anticipated obligationdoes not occur, does thebenefit system permit theuser to delete the transactionwithout posting it? V (p. 20)

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______________________________________________________________________________



Administration

Funds Availability Editing

Yes/no/

na Explanation

84. Does the benefit system allowfor the recording of fundingtransactions?28 M (p. 21)

85. Does the benefit systeminclude adequate controls toprevent recording obligationsor expenditure transactionsthat exceed availablebalances? M (p. 21)

86. Does the benefit system alsosupport recording obligationsor expenditures that exceedavailable balances based onproper managementapproval?29 M (p. 21)

87. Does the benefit systemprovide for designatedauthorities to establish andmodify the system’sresponse30 to the failure of afunds availability edit? M (p.21)

88. Does the benefit systemrecord the financial impact ofall transactions that affect theavailability of funds, such ascommitments, obligations,expenditures, and theestablishment of, andcollections against, recoveryreceivables? M (p. 21)

28This includes recording internal allocations or allotments from within the agency.29That is, does the system provide the capabilities and controls for authorized users to override funds availability edits?30That is, does the system either reject the transaction or provide a warning?

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______________________________________________________________________________



Administration

Funds Availability Editing

Yes/no/

na Explanation

89. Does the benefit systemautomatically update allappropriate budgetary tablesand ledger account balances(when applicable) to ensurethat the system alwaysmaintains and reports thecurrent status of funds for allopen accounting periods? M(p. 21)

90. Does the benefit systemprovide for designatedauthorities to establish andmodify the level of fundscontrol using the elements ofthe classification structure,including object class,program, organization,project, and fund? V (p. 21)

91. Does the benefit systemprovide the ability to producean on-line status of fundsreport down to the lowestlevel of the organizationalstructure, including amountsavailable or allotted, opencommitments, openobligations, expenditures, andbalance available? V (p. 21)

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______________________________________________________________________________



Administration

Commitments

Yes/no/

na Explanation

92. Does the benefit system allowcommitment transactions tobe entered on line frommultiple locations? V (p. 21)

93. Does the benefit systemmaintain information relatedto each commitmenttransaction?31 V (p. 21)

94. Does the benefit systemprovide for modifications tocommitment transactions,including ones that changethe dollar amount or theaccounting classificationelements cited? V (p. 22)

95. Does the benefit system allowfor commitment transactionsto be future-dated, stored, andposted on the appropriatedate? V (p. 22)

96. Does the benefit system closeopen commitments under thefollowing circumstances:

a. by the system upon issuanceof an obligating document,

b. by an authorized user, and

c. as part of the year-endclosing if the commitment isin an annual appropriationor in the last year of amultiyear appropriation? V(p. 22)

31At a minimum, does the system capture accounting classification elements and estimated amounts?

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______________________________________________________________________________



Administration

Commitments

Yes/no/

na Explanation

97. Does the benefit systemprovide the capability tosupport commitmentaccounting based on agencyneeds? V (p. 22)

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______________________________________________________________________________



Administration

Obligations and Expenditures

Yes/no/

na Explanation

98. Does the benefit systemupdate budgetary tables toreflect obligations based onobligating documents andliquidate, at the user’srequest, the relatedcommitments, either partiallyor fully? M (p. 22)

99. Does the benefit systemupdate budgetary tables toreflect obligations for whichthere are no relatedcommitments? M (p. 22)

100. Does the benefit systemmaintain information relatedto each obligation document,including amendments? M (p.22)

101. At a minimum, does thebenefit system capture thefollowing:

a. obligating documentnumber and type;

b. accounting classificationelements, as appropriate;

c. referenced commitment, ifapplicable;

d. other identification,including benefit payeeSSN or TIN; and

e. dollar amounts? M (p. 22)

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______________________________________________________________________________



Administration


Yes/no/

na Explanation

102. Does the benefit system allowobligation documents to beentered on-line and frommultiple locations? M (p. 22)

103. Does the benefit system allowauthorized modifications andcancellations of postedobligation documents? M (p.22)

104. Does the benefit systemprovide on-line access to allunliquidated obligations byselection criteria (e.g.,document number)? M (p.22)

105. Does the benefit systemmaintain an on-line historyfile of closed-out documentsfor a user-defined period? M(p. 22)

106. Does the benefit system closeopen obligating documents toaccommodate both of thefollowing circumstances:

a. automatically whenclassifying an unliquidatedobligation to anexpenditure and

b. by an authorized user? M(p. 22)

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______________________________________________________________________________



Administration


Yes/no/

na Explanation

107. Does the benefit system allowmultiple commitments to becombined into one obligationor expenditure document andone commitment document tobe split into various obligatingor expenditure documents?V (p. 22)

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______________________________________________________________________________



Administration

Analysis

Yes/no/

na Explanation

108. Does the benefit systemmaintain current informationon obligations according tothe classification elementsestablished by the agency ona fund-by-fund basis? M (p.23)

109. Does the benefit system sortand provide on-line access toboth summary level anddetailed information, basedon the defined level of fundscontrol, for those transactionsthat represent obligations andexpenditures? M (p. 23)

110. Does the benefit systemprovide control features thatensure the amounts reflectedin the fund control structureagree with the general ledgeraccount balances at the endof each update cycle? M (p.23)

111. Does the benefit system trackthe use of funds againstoperating or financial plans?V (p. 23)

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Administration

Payment Execution Process

(Agencies with Delegated

Disbursing Authority)

Yes/no/

na Explanation

112. If the agency has delegateddisbursing authority,32 doesthe benefit system support ofthe reporting and otherrequirements specified inVolume I of the Treasury

Financial Manual (TFM),Part 4, as exemplified by thefollowing?

a. Report all disbursementsmade under the delegationin the agency’s paymentaccounting reports to theFinancial ManagementService (FMS) using theappropriate agencyaccounting codes, asauthorized by FMS.33

b. Submit timely, accuratecheck issuance data toFMS no later than theclose of business of theweek in which the issuedates occur and at month’send. (See I TFM 4-6025.10.)34

c. Comply with applicableTreasury offset guidelinesestablished under the

32Some agencies have “delegated disbursing authority” and can print checks or make EFTs without using Treasury as anintermediary. Title 31 U.S.C., section 3321(b) provides that, for economy and efficiency, the Secretary of the Treasury maydelegate the authority to disburse public money to officers and employees of other federal agencies.33As stated in section 10025 of the TFM the agency must submit immediately to the chief disbursing officer (CDO) anyirregularity in accounts involving disbursement activity. Furthermore, the agency is responsible for resolving anyirregularities or discrepancies associated with such reports.34FMS must receive this information within the required time frame to carry out its check reconciliation responsibilitiesproperly, to decline final payment, or to reclaim payment on certain improperly negotiated Treasury checks or counterfeitchecks. See 31 Code of Federal Regulations (CFR) Part 240.

______________________________________________________________________________


______________________________________________________________________________



Administration


(Agencies with Delegated

Disbursing Authority)

Yes/no/

na Explanation

authority of 31 U.S.C.3716(c).35

d. Comply with FMSguidelines concerningapplicable requirements, toinclude a payee’s TIN onpayment vouchers inaccordance with 31 U.S.C.3325(d).36

e. Comply with all applicableEFT system requirements,including those related tomessage authenticationand enhanced security,unless explicitly waived inwriting by the chiefdisbursing officer. M (pp.23 & 24)

35Under 31 U.S.C. 3716 ( c), an authorized disbursing official is allowed to reduce recipient benefits by administrative offsetto satisfy a creditor agency claim “…certified to the Secretary of the Treasury.”36“The head of an executive agency or an officer or employee of an executive agency … shall include with each certifiedvoucher submitted to a disbursing official pursuant to this section the taxpayer identifying number of each person to whompayment may be made under the voucher.”

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______________________________________________________________________________



Administration


(All Other Agencies)

Yes/no/

na Explanation

113. Does the benefit systemautomatically identify andselect payments to bedisbursed in a particularpayment cycle based on theirdue dates?37 M (p. 24)

114. Does the benefit systemprovide a function for reviewand certification by anauthorized certifying officer?M (p. 24)

115. Does the benefit system allowchanges to paymentschedules by authorized staffprior to acceptance by thedisbursing office? M (p. 24)

116. Does the benefit system allowspecific payments selected fordisbursement to be excludedfrom the payment cycle andheld for later payment? M (p.24)

117. Does the benefit systemautomatically distinguishtaxable benefit paymentsfrom nontaxable payments?M (p. 24)

37Questions 113 through 136 are applicable only to agencies for which Treasury does the actual disbursing.

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______________________________________________________________________________



Administration



Yes/no/

na Explanation

118. Does the benefit systemautomatically compute netamounts to be disbursed aftertaking into account thefollowing:

a. withholdings,

b. interest,

c. garnishments,

d. other offsets, as needed,in accordance withapplicable regulations? M(p. 24)

119. Does the benefit system alsogenerate the appropriatetransactions to reflect thecomputed deductions andadditions? M (p. 24)

120. Does the benefit systemcollect information oninterest paid, if applicable,and record the amounts to theproper ledger account? M (p.24)

121. Does the benefit systemcalculate totals by agencylocation code (ALC) andTreasury account fundsymbol (TAFS) for inclusionon the payment schedule? M(p. 24)

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______________________________________________________________________________



Administration



Yes/no/

na Explanation

122. Does the benefit system sortindividual payment detail byTAFS to enable SF-224reconciliation? M (p. 24)

123. Does the benefit systemprovide for various forms ofpayment to be used (i.e.,check or EFT)? M (p. 24)

124. Does the benefit systemsupport Treasury-specificstandards for format of checkand EFT payment requests?M (p. 24)

125. Does the benefit systemautomatically update paymentrecords based on updatesrecorded in the payee’smaster record, such aschanges of address orchanges in deposit accountinformation? M (p. 24)

126. Does the benefit system allowa payment request to beremoved from the automatedscheduling stream andscheduled as a manualpayment by an authorizedofficial? M (p. 24)

127. Does the benefit system allowthe user to trigger animmediate benefit paymentfor “emergency”38 situations?M (p. 24)

38Emergency situations are defined by the administering agency.

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______________________________________________________________________________



Administration



Yes/no/

na Explanation

128. Does the benefit systemprovide the capability toschedule and make paymentsin various forms39 as requiredby an agency’s disbursingoffices, including physicalmedia40 (e.g., tape andelectronic transfer)? M (p.24)

129. Does the benefit system allowfor cancellation of an entirepayment schedule, or a singlepayment within a schedule,after payments are scheduledand prior to actualdisbursement by Treasury? M(p. 24)

130. Does the benefit systemprovide offset features, ifapplicable, to reduce thepayment amount due aclaimant in accordance withapplicable laws, regulations,and provisions of theTreasury Offset Program(TOP)? M (p. 24)

131. Does the benefit systemproperly record the impact41

of the entire amount of thetransaction in both budgetaryand proprietary terms? M (p.24)

39For example, can payments be scheduled or made with ACH or SF-1166?40Physical media include tape or EFT.41That is, does the system record whether, for example, (1) the entire amount is expensed, (2) payables or cash accountsreflect net outlay, and (3) budgetary resources are increased by the amount of nonfederal receivables collected?

______________________________________________________________________________


______________________________________________________________________________



Administration



Yes/no/

na Explanation

132. Does the benefit systemprovide for reissuingpayments for misplacedpayments and lost or stolenchecks? M (p. 24)

133. Does the benefit systemautomatically consolidateamounts due a benefitclaimant when the claimant isentitled to more than onebenefit administered by thesame agency? V (p. 25)

134. Does the benefit systemitemize per Treasuryspecifications all paymentscovered by one check or EFTon a payment advice oraddendum to the EFT file? V(p. 25)

135. Does the benefit system allowfor the splitting of a singlebenefit payment into separatebank accounts (i.e.,allotments)42 as indicated onthe claimant’s direct depositrequest form? V (p. 25)

136. Does the benefit systemprovide for making paymentsin a foreign currency? V (p.25)

42That is, does the system allow for a minimum of one allotment in addition to the primary deposit account?

______________________________________________________________________________


______________________________________________________________________________



Administration

Payment Confirmation and

Follow-up Process

Yes/no/

na Explanation

137. Does the benefit systemupdate master recordinformation resulting frompayments made by the coresystem, if applicable? M (p.25)

138. If original checks are lost,stolen, or destroyed, does thebenefit system allow the userto record the outcome of theTreasury search whenrecertified checks are issued?M (p. 25)

139. Does the benefit systemprovide information abouteach payment to reflect thestage of the schedulingprocess that the payment hasreached and the date eachstep was reached for thefollowing processing steps:

a. payment scheduled,

b. schedule sent to theappropriate disbursingoffice, and

c. payment issued by theappropriate disbursingoffice? M (p. 25)

140. Does the benefit systemprovide for comparison ofthe agency’s paymentschedule and the disbursingoffice’s accomplishedschedule? M (p. 25)

______________________________________________________________________________


______________________________________________________________________________



Administration


Follow-up Process

Yes/no/

na Explanation

141. Does the benefit systemupdate the paymentinformation whenconfirmation is received fromthe disbursing office,including the paid schedulenumber, check numbers ortrace numbers, date andamount of payment, andpayment method? M (p. 25)

142. Does the benefit systemmaintain a history of everypayment including thefollowing information:

a. authorizing documentnumber,

b. payment schedulenumber,

c. payment date,

d. payment address, and

e. TAFS charged? M (p. 25)

143. Does the benefit systemprovide on-line access toclaimant and paymentinformation? M (p. 25)

______________________________________________________________________________


______________________________________________________________________________



Administration


Follow-up Process

Yes/no/

na Explanation

144. Does the benefit systemprovide on-line access toopen documents based onagency selection criteria? M(p. 25)

145. Does the benefit systemproduce IRS 1099s in IRSacceptable form43 whenrequired by IRS regulations?44

M (p. 25)

146. Does the benefit systemautomatically liquidate therelated liability or the in-transit amount when paymentconfirmation updates thesystem? M (p. 25)

43IRS acceptable form would be, for example, hard copy or magnetic tape.44For example, IRS 1099s are required for miscellaneous payments of over $600 to individuals.

______________________________________________________________________________


______________________________________________________________________________


Functional RequirementsRecovery Receivable

Management

Recovery Receivable

Establishment Process

Yes/no/

na Explanation

147. Does the benefit systemrecord the establishment ofreceivables in the claimant’smaster record? M (p. 26)

148. Does the benefit systemprovide for the establishmentof receivables in othersystems, such as centralizedaccounts receivable systems,that are based on individualclaim holder debts? M (p. 26)

149. Does the benefit systemprovide the capability for auser to select the reason thereceivable is being recordedfrom a domain of recognizedreasons? M (p. 26)

150. Does the benefit systemsupport the establishment andtracking of receivables to bepaid under installment plans,including plans for whichpayments have beenrescheduled? M (p. 26)

151. Does the benefit systemprovide the capability for auser to record the beginningand ending dates of thepayment period as well as thefrequency and amount of eachpayment? M (p. 26)

______________________________________________________________________________


______________________________________________________________________________



Management

Recovery Receivable


Yes/no/

na Explanation

152. Does the benefit systemcalculate, generate, and postthe required ledger entries forreceivables resulting fromduplicate payments orerroneous payments as wellas the correspondingexpenditure reductions orother offsets? M (p. 26)

153. Does the benefit system printbills accommodating thegeneration of standard formsand turnaround documents(i.e., as a remittance advice)?M (p. 26)

154. Does the benefit system allowcustomized text in generatedbilling documents? M (p. 26)

155. Does the benefit systemprovide features to notifyoverpaid individuals (or aclaimant’s estate) of thefollowing:

a. the amount overpaid andhow and whenoverpayment occurred,

b. the right to appeal theoverpaymentdetermination,

c. the required recovery, and

d. the right to request awaiver of recovery? M(pp. 26 & 27)

______________________________________________________________________________


______________________________________________________________________________



Management

Recovery Receivable


Yes/no/

na Explanation

156. Does the benefit systemrecord adjustments, bothincreases and decreases (i.e.,noncash credits), and postthem to a claimant’s masterrecord? M (p. 27)

157. Does the benefit system datethe bills with the system-generated date or with thedate provided by theauthorized user? M (p. 27)

158. Does the benefit systemaccept transactions thatgenerate receivables fromother systems in a standardformat for entry into thebenefits system? M (p. 27)

159. Does the benefit system printstatements as well as bills? V(p. 27)

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______________________________________________________________________________



Management

Recovery Receivable Servicing

Process

Yes/no/

na Explanation

160. Does the benefit systemmaintain detailed informationby account (i.e., individual)sufficient to provide audittrails and to support billingand research activities? M (p.27)

161. Does the benefit systemupdate each master recordwhen billing documents aregenerated and collections arereceived? M (p. 27)

162. Does the benefit systemprovide on-line querycapability to receivable andaccount information? M (p.27)

163. Does the benefit systemprovide informationconcerning the age ofreceivables, on a summarybasis as well as an individualbasis, to allow formanagement andprioritization of collectionactivities? M (p. 27)

164. Does the benefit systemprovide automatic calculationand assessment of interest,administrative charges, andpenalty charges, asapplicable, on overduereceivables? M (p. 27)

______________________________________________________________________________


______________________________________________________________________________



Management


Process

Yes/no/

na Explanation

165. Does the benefit system allowfor the waiver of the chargeswith appropriate authority?M (p. 27)

166. Does the benefit systemidentify and reportreceivables that meetpredetermined criteria for baddebt provisions or write-off?M (p. 27)

167. Does the benefit systemmaintain data for receivablesreferred to other federalagencies and/or outsideorganizations for collections?M (p. 27)

168. Does the benefit systemautomatically initiatetransactions to record thewrite-off of delinquent oruncollectible receivables(including interest, penalties,and administrative charges)based on user-definedcriteria? M (p. 27)

169. Does the benefit system alsomaintain data to monitorclosed accounts? M (p. 27)

170. Does the benefit systemproduce dunning (collection)letters for overduereceivables in accordancewith Treasury requirementsand existing legislation? M(p. 27)

______________________________________________________________________________


______________________________________________________________________________



Management


Process

Yes/no/

na Explanation

171. Does the benefit system allowauthorized users to customizethe dunning processparameters and dunning lettertext? M (p. 27)

172. Does the benefit systemprovide information to alloweither manual or automatedreporting of delinquentaccounts to commercialcredit bureaus and referral tocollection agencies or otherappropriate governmentalorganizations? M (p. 27)

173. Does the benefit systemmaintain information neededto support reporting requiredby IRS? M (p. 27)

174. Does the benefit systemmaintain a history of billingsand receipts for eachreceivable and account inaccordance with agencyrequirements? M (p. 28)

175. Does the benefit systemmatch receipts to theappropriate receivables andupdate system balances? M(p. 28)

______________________________________________________________________________


______________________________________________________________________________



Management


Process

Yes/no/

na Explanation

176. Does the benefit systemprovide the ability to applyreceipts to more than onereceivable? M (p. 28)

177. Does the benefit systemupdate receivable balancesdocument by document,classifying and postingagainst principal, interest, andadministrative fees asrequired by OMB Circular A-129,45 Managing Federal

Credit Programs? M (p. 28)

178. Does the benefit systemidentify receivables that havebeen reduced by some meansother than cash collections,such as waivers or write-offs?M (p. 28)

179. Does the benefit systemprovide for reestablishment ofa receivable for checksreturned due to insufficientfunds? M (p. 28)

45OMB Circular A-129 prescribes policies and procedures for justifying, designing, and managing federal credit programs,including collecting nontax receivables such as overpayments to beneficiaries.

______________________________________________________________________________


______________________________________________________________________________



Management

Collection Process

Yes/no/

na Explanation

180. Does the benefit systemrecord complete and partialreceipts according to the DebtCollection Act of 1982 (DCA),Debt Collection ImprovementAct of 1996 (DCIA), as well asother applicable regulations?M (p. 28)

181. Does the benefit systemrecord deposits and relateddebit vouchers forreconciliation to depositconfirmation informationprovided by Treasury or thebanking system? M (p. 28)

182. Specifically, does the benefitsystem provide the user thecapability to record thedeposit ticket or debitvoucher document amount,number, and date? M (p. 28)

183. If a claimant’s master recordis located when recording adeposit, does the benefitsystem provide the capabilityto display all active receivableaccounts of record that arerelated to the claimant? M (p.28)

______________________________________________________________________________


______________________________________________________________________________



Management

Collection Process

Yes/no/

na Explanation

184. If a user is not able to locatean existing receivable in themaster record of the personmaking a payment and thedocument being recorded is adeposit ticket item, does thebenefit system provide thecapability to associate thecollection of funds to theclaimant’s master record, ifone exists? M (p. 28)

185. Does the benefit systemprovide features to record themethod of recovery?46 M (p.28)

186. In order to suspend collectionactivities associated with thereceivable, does the benefitsystem provide the capabilityto flag a claimant’s receivablerecord to reflect due processstatus? M (p. 28)

187. Does the benefit systemautomatically allow collectionactivities to resume when dueprocess has expired or theflag has been reversed? M (p.28)

188. Does the benefit systemcapture whether thereceivable has beenpetitioned and/or dischargedin connection withbankruptcy proceedings? M(p. 28)

46The method of recovery includes payment, internal offset, TOP, compromise settlement, and civil suit.

______________________________________________________________________________


______________________________________________________________________________



Management

Collection Process

Yes/no/

na Explanation

189. Does the benefit systemprovide for processing cashor credit card receipts againstoutstanding receivables? V(p. 28)

______________________________________________________________________________


______________________________________________________________________________



Management

Offset

Yes/no/

na Explanation

190. Does the benefit systemprovide the ability to reportoverdue receivables withassociated SSN or TIN data toTreasury for possible offset?M (p. 29)

191. Does the benefit system allowfor offset of funds due todelinquent indebtednessthrough the following:

a. administrative offset,

b. federal employee salaryoffset, and

c. income tax refund offset?M (p. 29)

192. Does the benefit systemcomply with the requirementsof the IRS Tax Refund OffsetProgram and TOPrequirements? M (p. 29)

193. Does the benefit systemprovide the capability for auser to record the effectivedate of the offset plan? M (p.29)

194. Does the benefit systemincorporate logic to reflectthe legal authority as towhether the payment typemay be reduced by offset or isexempt from TOP or otheroffsets? M (p. 29)

______________________________________________________________________________


______________________________________________________________________________



Management

Offset

Yes/no/

na Explanation

195. Can the benefit systemexclude certain receivables47

automatically from the offsetfunction? M (p. 29)

196. Does the benefit systemautomatically subjectreceivables to offset, whichhad been previously excludedbecause of due process andbankruptcy status, oncestatus has been resolved? M(p. 29)

197. Does the benefit systemprovide the capability for auser to select from a domainof offset programparticipants?48 V (p. 29)

198. If the desired offset programrecipient does not exist as aparticipant, does the benefitsystem provide the capabilityfor the user to create aparticipant record? V (p. 29)

199. When a retirement accounthas both garnishment andformer spouse deductions,does the benefit systemidentify bankruptcy debt sothat it is bypassed whencomputing the legallymandated 65 percentmaximum deduction amount?V (p. 29)

47For example, does the system exclude receivables that are in due process status or those that relate to bankruptcy filings?48An offset program participant is the recipient of the amount to be offset against a claimant’s benefit payments.

______________________________________________________________________________


______________________________________________________________________________



Management

Funds Control

Yes/no/

na Explanation

200. Does the benefit systemproperly record the budgetaryeffect on U.S. Standard

General Ledger (SGL)balances for all transactionstypically involved withreceivable management?49 M(p. 30)

49For example, receivable management would include establishing a receivable, adjusting receivables, collections andoffsets, as well as waivers and write-offs.

______________________________________________________________________________


______________________________________________________________________________


Functional RequirementsAccounting for Benefit

Transactions

Entity Definition

Yes/no/

na Explanation

201. Does the benefit system allowfor recording transactions inmultiple TAFS and variousfund types?50 M (p. 30)

202. Does the benefit systemaccommodate reporting formultiple programs within aTAFS, based on accountingclassification elements?51 M(p. 30)

50This includes annual, multiyear, and no-year appropriations as well as trust funds.51Accounting classification elements include, for example, organization level and cost center.

______________________________________________________________________________


______________________________________________________________________________



Transactions

Account Definition

Yes/no/

na Explanation

203. Does the benefit system useaccount titles consistent withthe account titles provided inthe SGL? M (p. 31)

204. Does the benefit system useaccount definitions consistentwith the account definitionsprovided in the SGL? M (p.31)

205. Does any expansion in thechart of accounts roll up tothe accounts as defined in theSGL?52 M (p. 31)

206. Does the benefit systemprovide subsidiary ledgersupport for SGL accounts? M(p. 31)

207. Does the benefit system alsosupport reconciliation of SGLcontrol accounts to theirrespective subsidiary recordsby accounting period? M (p.31)

208. Does the benefit systemprovide the capability tocreate additional subaccountsto the general ledger foragency-specific tracking andcontrol? M (p. 31)

52A pseudocode can be used instead of the exact SGL account numbers, providing the account descriptions and postingrules are the same as those used in the SGL for relevant transactions.

______________________________________________________________________________


______________________________________________________________________________



Transactions

Account Definition

Yes/no/

na Explanation

209. Do these subaccounts roll upto the SGL accounts? M (p.31)

______________________________________________________________________________


______________________________________________________________________________



Transactions

Transaction Definition and

Processing

Yes/no/

na Explanation

210. Does the benefit system usestandard transactions torecord accounting events andto control the relatedupdating of otherinformation53 maintained inthe system? M (p. 31)

211. Does the benefit system allowstandard transactions,including system-generatedtransactions, to beestablished, modified, ordeleted by authorizedpersonnel? M (p. 31)

212. Does the benefit system allowchanges to be traced? M (p.31)

213. Does the benefit systemgenerate and post compounddebit and credit entries to theSGL accounts? M (p. 31)

214. Does the benefit systemupdate both budgetary andproprietary SGL accountsbased on a single inputtransaction? M (p. 31)

215. Does the benefit systemprovide the capability to add,modify, and maintain editingand posting rules throughsystems tables controlled byauthorized personnel? M (p.31)

53This could include values in tables, such as available funding.

______________________________________________________________________________


______________________________________________________________________________



Transactions


Processing

Yes/no/

na Explanation

216. Does the benefit systemperform integrity checks onbatches received viainterfaces? M (p. 31)

217. Do the integrity checksinclude batch numbers todetect duplicate or skippedbatches and the validity ofheader and trailer records?54

M (p. 31)

218. Does the benefit systemprocess transactionsconsistent with SGL accountdescriptions and postings?55

M (p. 31)

219. Does the benefit systemprocess system-generatedtransactions, such as thefollowing:

a. automated paymentscheduling,

b. accruals,

c. closing entries,

d. recurring payments, and

e. transactions that generateother transactions in thosecases where a singletransaction is notsufficient? M (p. 32)

54This ensures that counts and amounts in trailer records agree with records in the batch.55Use of other than SGL account numbers (i.e., a pseudocode) is acceptable providing the account descriptions and postingrules are the same as those used in U.S. SGL for relevant transactions.

______________________________________________________________________________


______________________________________________________________________________



Transactions


Processing

Yes/no/

na Explanation

220. Does the benefit systemautomatically liquidate,partially or in full, balances ofpreceding documents whenentering dependentdocuments? M (p. 32)

221. Is this capability used in theliquidation of commitments,obligations, payables,receivables, or other items, asappropriate?56 M (p. 32)

222. Does the benefit systemprovide control over thecorrection and reprocessingof all erroneous transactionsthrough the use of error filesand/or suspense accounts? M(p. 32)

223. Are erroneous transactionsmaintained and tracked untilcorrected, posted, or deletedat the specific request of anauthorized user? M (p. 32)

56For example, when expending an existing obligation the balance of the open obligation must be automatically reduced bythe amount expended.

______________________________________________________________________________


______________________________________________________________________________



Transactions


Processing

Yes/no/

na Explanation

224. Does the benefit systemsupport management controlsto ensure the following?

a. Transactions areprocessed in accordancewith government andagency-prescribedstandards and procedures.

b. The integrity of data in thesystem is maintained.

c. Access is restricted toauthorized users. M (p.32)

225. Does the benefit systemprovide transaction edits thatcontrol, at a minimum, fundavailability, accountstructure, and tolerance levelsbetween related transactions,such as between an obligationand its related accrual? M (p.32)

226. Does the benefit systemprovide controls to preventthe creation of duplicatetransactions? M (p. 32)

227. Does the benefit system postto the current and prioraccounting monthsconcurrently until the priormonth closing? M (p. 32)

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Transactions


Processing

Yes/no/

na Explanation

228. Does the benefit systemmaintain and provide on-linequeries and reports onbalances separately for thecurrent and prior months? M(p. 32)

229. At a minimum, does thebenefit system maintainbalances on line for both thecurrent and prior monthsuntil the prior month closing?M (p. 32)

230. Does the benefit systemprovide the capability to enterand store for futureprocessing any transactions inthe current month forprocessing in the subsequentmonth? V (p. 32)

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______________________________________________________________________________



Transactions

Audit Trails

Yes/no/

na Explanation

231. Does the benefit systemprovide audit trails to tracetransactions from thefollowing:

a. source documents,

b. original input,

c. other systems,

d. system generatedtransactions, and

e. internal assignmenttransactions through thesystem? M (p. 32)

232. Does the benefit systemprovide transaction details tosupport account balances? M(p. 32)

233. Does the benefit systemprovide audit trails to tracesource documents andtransactions throughsuccessive levels ofsummarization to thefinancial statements andreverse? M (p. 32)

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______________________________________________________________________________



Transactions

Audit Trails

Yes/no/

na Explanation

234. Does the benefit systemprovide audit trails to identifychanges made to systemparameters and tables thatwould affect the processingor reprocessing of anyfinancial transactions? M (p.32)

235. Does the benefit systemprovide for all types oftransactions the capability toselect items for review basedon user-defined criteria?57 M(p. 32)

236. Does the benefit systemprovide audit trails thatidentify the following actionsby the originator:

a. document input,

b. changes,

c. approvals, and

d. deletions? M (p. 32)

237. Does the benefit systemprovide the capability torecord the user identification,date, and time updated foreach transaction affecting thegeneral and subsidiaryaccounts? M (p. 33)

57Examples of selection criteria are accounting period, amount, and payee.

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Functional RequirementsReporting

External Reporting

Yes/no/

na Explanation

238. Does the benefit systemmaintain accounting data tosupport reporting inaccordance with FASABaccounting standards andOMB and Treasury reportingrequirements?58 M (p. 33)

239. Does the benefit systemprovide summarized dataelectronically to systems usedby the agency for decisionsupport? M (p. 33)

240. Does the benefit systemprovide for the preparation ofexternal reports such as thoserequired by Treasury andOMB?59 M (p. 33)

241. Does the benefit systemreport events andtransactions according to theaccounting classificationelements established andwithin a given accountingperiod?60 M (p. 34)

58Of particular significance are data needed when preparing actuarial estimates for financial statement preparation incompliance with the reporting requirements specified by SFFAS 5 and 17. For example, does the system facilitate historicaltrend analysis of various data elements as determined by the agency?59For example, does the system pass the data needed to prepare reports required by the Federal Agencies’ Centralized TrialBalance System (FACTS) I, FACTS II, SF-224 (when appropriate), and financial statements to the core financial system?60This includes providing the ability to automatically assign cost by a major program to facilitate preparation of theStatement of Net Costs in accordance with OMB’s Bulletin 01-09, Form and Content of Agency Financial Statements.

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External Reporting

Yes/no/

na Explanation

242. Does the benefit systemmaintain the informationrequired for programperformance, financialperformance, and financialmanagement performancemeasures needed forbudgeting, programmanagement, and financialstatement presentation? M(p. 34)

243. Does the benefit systemprovide the capability toproduce all relevant reports,statements, or returnsrequired by IRS, includingyear-end 1099 statements? M(p. 34)

244. Does the benefit system allowa user to request a reissuedtax statement for the currentor previous year? M (p. 34)

245. Does the benefit systemprovide for an automatedmethodology of datamanipulation and dataexportation? V (p. 34)

246. Does the benefit systemprovide for automatictranslation of foreigncurrency payments based onthe exchange rate specifiedby the user?61 V (p. 34)

61That is, does the system determine the appropriate amount of corresponding U.S. dollars when recording transactions forpayments made in foreign currency?

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External Reporting

Yes/no/

na Explanation

247. Does the benefit system allowa user to request a reissuedtax statement for the previous3 years? V (p. 34)

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Internal Reporting

Yes/no/

na Explanation

248. Does the benefit systemprovide for the production offormatted reports? M (p. 34)

249. Does the benefit system allowfor the reformatting of reportsto allow for the followingattributes:

a. the presentation ofdifferent sorts ofinformation,

b. the presentation of onlyspecific information in theformat selected,

c. the summarization of data,and

d. the modification of reportformats to tailor thereports to the specificrequirements of the user?M (p. 34)

250. Does the benefit systemprovide for program costaccounting data to supportreporting requirementsspecified in OMB’s Form and

Content of Agency Financial

Statements? M (p. 34)

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Internal Reporting

Yes/no/

na Explanation

251. Does the benefit systemprovide for program costaccounting data to supportthe decision-making processin managing an agency’sprograms, which includes thefollowing features?

a. Cost reports to be used inthe analysis ofprogrammatic activities.

b. Schedules and operatingstatements based on theaccounting classificationelements and agencycriteria.

c. Meaningful costinformation needed tosupport performancemeasures.

d. Ability to transfer costinformation directly to andfrom other systems. M (p.34)

252. Does the benefit systemdetermine the cost ofinformation for comparison toother program data todetermine compliance withplanned budgeted activities?V (p. 35)

253. Does the benefit systemsupport the use of historicaldata to conduct varianceanalysis? V (p. 35)

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Performance Reporting

Yes/no/

na Explanation

254. Does the benefit systemprovide features to computeand maintain performancetrends such as the following?

a. Number and dollar valueof benefit payments made.

b. Average benefit payment.

c. Benefit payments made byoperating levels andgeographic region. M (p.35)

255. Does the benefit systemprovide features to computeand maintain efficiencymeasures to help determinethe effectiveness of use ofagency resources62 such as thefollowing measurements?

a. Number of applicationsprocessed.

b. Number of awards.

c. Number of denials. M (p.35)

256. Does the benefit systemprovide features to compute,for the entire claimantpopulation, the length of timeclaimants have receivedbenefits?63 M (p. 35)

62Measures should cover agency resources at both the local and national levels.63For example, can the system generate reports showing the number of individuals receiving benefits by duration (e.g., 1 to5 years, 6 to 10 years)?

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Performance Reporting

Yes/no/

na Explanation

257. Does the benefit systemprovide features toautomatically compute andmaintain efficiency measuressuch as the following?

a. Administrative cost perapplication approved.

b. Time required to process aclaim application. V (p.35)

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Compulsory Notifications

Yes/no/

na Explanation

258. Does the benefit systemprovide for issuing standardnotices for a variety of user-defined events?64 M (p. 35)

259. Does the benefit system allowthe user to add custom textfor each standardcorrespondence type? M (p.35)

260. Does the benefit system allowthe user to record that theU.S. Postal Service hasreturned correspondence asundeliverable? M (p. 35)

261. Does the benefit systemautomatically capture variouselectronic correspondences,including due processrequests submitted throughvarious electronic mediums,and associating [them] to thespecific claim and requiredaction? M (p. 36)

262. For manually submittedcorrespondence, does thebenefit system provide forcapturing such requests andassociating [them] with thespecific claim and requiredaction? M (p. 36)

64For example, does the system provide capabilities to notify a claimant of decisions affecting payment amount or cessationof payments?

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Compulsory Notifications

Yes/no/

na Explanation

263. Does the benefit system havethe ability to capture orrecord the date on which arequest for appeals-relatedinformation is received from aclaimant or an authorizedrepresentative? M (p. 36)

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______________________________________________________________________________


Functional RequirementsInterfaces

Internal Interfaces

Yes/no/

na Explanation

264. Does the benefit systemprovide the capability tointerface with the agency coreaccounting system to recordthe accounting impact offinancial activity at the SGLlevel daily to supportconsolidated financialreporting? M (p. 36)

265. Does the benefit systemprovide standard input recordformat(s) for interface oftransactions from othersystems? M (p. 36)

266. Does the benefit systemsubject all transactions frominterfacing systems to itssystem edits, validations, anderror correction procedures?M (p. 36)

267. Does the benefit systemmaintain and track erroneoustransactions until corrected,posted, or deleted by anauthorized user? M (p. 36)

268. When a major benefit systemfunction is performed by thecore system, does the benefitsystem provide the capabilityto automatically updatedetailed claimant-relatedinformation that is maintainedin the core system?65 M (p.36)

65For example, could the benefit system automatically update detailed claimant information, such as individual payable andreceivable records, if they were maintained in the core accounting system?

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Internal Interfaces

Yes/no/

na Explanation

269. Does the benefit systemprovide the capability tointerface with the agency’scost accounting system? M(p. 36)

270. Does the benefit systemprovide a two-way interfacewith the core system forpurposes of funds control andfunds availability verification?V (p. 36)

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External Interfaces

Yes/no/

na Explanation

271. Does the benefit systemprovide capabilities allowinginterface with central agencyfinancial systems66 such as,for example, the capabilitiesto

a. receive and read thedeposit reconciliation filefrom Treasury andproduce a report of thematched data anddifferences;

b. produce a file of all holdcheck transactions as theyare created andperiodically transmit thehold check file toTreasury;

c. produce and transfer a fileof changes to EFTpayments previouslyforwarded to Treasury forrelease;

d. produce and transfer a fileof changes to be made tothe home address file inTreasury;

e. receive and process thedata on the returned checkfile sent by Treasury’srecertification system,including generatingreturned checktransactions and updatingaccount data; and

f. receive and automatically 66These systems include those at the Department of the Treasury’s FMS and IRS, OMB, and OPM.

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External Interfaces

Yes/no/

na Explanation

process an ACH update file(containing changes toEFT information) fromTreasury or other sourceson a recurring basis? M(p. 37)

272. Does the benefit systemreceive information from SSArecords to verify anapplicant’s name, SSN, andincome information, whenlegally permitted? V (p. 37)

273. Does the benefit systemprovide features to verify anapplicant’s income againstcivil service annuity, militaryretirement, and IRS earningsrecords, when legallypermitted? V (p. 37)

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______________________________________________________________________________


Functional RequirementsQuality Assurance and

Maintenance

Yes/no/

na Explanation

274. Does the benefit systemprovide capabilities to selectbenefit claims based onagency program evaluationcriteria, such as dollarthresholds and duration ofbenefit payment, forsubsequent review? M (p. 37)

275. Does the benefit systemprovide the ability to monitorand update a claimant’smaster records to reflectchanges in circumstancesaffecting a claimant’seligibility or the amount of thepayment? M (p. 37)

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______________________________________________________________________________



Maintenance

Yes/no/

na Explanation

276. Does the benefit systemprovide capabilities tocapture claimant (or relative)reported matters such as thefollowing changes?

a. Death.

b. Change in amount ofearned or unearnedincome.

c. Change in residence.

d. Marriage, divorce, orseparation.

e. Absence from the UnitedStates.

f. Change in disabilitycondition.

g. Eligibility for otherbenefits.

h. Change in net worth orresources of the claimant.

i. Change in schoolattendance.

j. Change in composition ofhousehold.

k. Change in citizenship oralien status. M (pp. 37 &38)

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______________________________________________________________________________



Maintenance

Yes/no/

na Explanation

277. Does the benefit systemprovide for recording andmaintaining a customerservice representative’s notesor comments that can belinked to the claimant’smaster record? M (p. 38)

278. Does the benefit systemprovide features to recorddeath information providedfrom voluntary sources?67 M(p. 38)

279. Does the benefit systemprovide capabilities to recordthe method68 used toindependently verify thedeath of a claimant beforeterminating benefits? M (p.38)

280. Does the benefit systemprovide the ability to maintaina schedule of continuingdisability reviews at theindividual claim level, ifapplicable? M (p. 38)

281. Does the benefit system alsoprovide the ability to maintainthe status of a schedule ofcontinuing disability reviewswithin the claimant’s masterrecord? M (p. 38)

67Voluntary sources include, for example, returned checks, funeral home notification, and next of kin.68Methods for verifying death of a claimant include, for example, phone contact, signature verification, or personal contactwith next of kin.

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Maintenance

Yes/no/

na Explanation

282. Does the benefit systemprovide capabilities to trackthe status of appealproceedings when a change ismade affecting a currentclaimant’s level of benefits?M (p. 38)

283. Does the benefit systemprovide features to recordtermination of benefitpayments, including thefollowing notations:

a. event or reason fortermination, such as deathor increase in income, and

b. date of event (and thuseffective date of benefitcessation)? M (p. 38)

284. Does the benefit systemprovide features to determineif benefits are commensuratewith a claimant’s gender? V(p. 38)

285. Does the benefit system havethe ability to select benefitpayment calculations basedon statistical samplingtechniques for the purpose ofverifying calculations? V (p.38)

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______________________________________________________________________________



Maintenance

Yes/no/

na Explanation

286. Does the benefit systemprovide the ability to generatea random sample of claimantsto periodically survey theirsatisfaction with the agency’sbenefit claims process?69 V(p. 38)

287. Does the benefit system allowusers to suspend payment toclaimants when fraud issuspected, or when a deathhas been reported but not yetverified by an authoritativesource (e.g., SSA)? V (p. 38)

288. Does the benefit system allowusers to cancel a previouslyrecorded suspected death of aclaimant and place theclaimant back in a paymentstatus, if appropriate? V (p.38)

69Surveys would cover the claimant’s experience from initial contact with the agency to receipt of benefit payment.

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______________________________________________________________________________


Functional RequirementsTechnical Functions

General

Yes/no/

na Explanation

289. Does the benefit systemprovide for system back upand recovery in accordancewith relevant OMB circulars?M (p. 38)

290. Does the benefit systemadhere to the applicable finalElectronic and InformationTechnology AccessibilityStandards70 issued by theArchitectural andTransportation BarriersCompliance Board? M (pp.38 & 39)

291. Does the benefit system allowusers to input parametersrequired to run batch jobs in aproduction mode either daily,monthly, quarterly, or yearly?M (p. 39)

292. Does the benefit systemprovide all users thecapability to perform a “printscreen” function? M (p. 39)

70These standards address technical and functional performance criteria necessary for such technology to comply withsection 508 of the Rehabilitation Act Amendments of 1998.

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Security and Internal Controls

Yes/no/

na Explanation

293. Does the benefit systemprovide flexible securityfacilities to control useraccess at varying degrees,including the following:

a. overall system access,

b. capability to performspecific functions, such asinquiries and updates, and

c. access to certainfunctionalities? M (p. 39)

294. Does the benefit systemprovide capability to defineaccess to specific functionsby named user, class of user,and position? M (p. 39)

295. Does the benefit systemprovide for multiple levels ofapprovals based on user-defined criteria, includingdollar limits and type ofdocument processed? M (p.39)

296. Does the benefit systemprovide the capability toperform reconciliationroutines for internalparticipant accounts, ledgers,and funds? M (p. 39)

297. Does the benefit system havethe capability to identifyunsuccessful reconciliationsvia an error log or errorreport? M (p. 39)

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Security and Internal Controls

Yes/no/

na Explanation

298. Does the benefit systemestablish appropriateadministrative, technical, andphysical safeguards to ensurethe security andconfidentiality of records? M(p. 39)

299. Do these safeguards protectthe records againstanticipated threats or hazardsto their security or integritythat could result insubstantial harm,embarrassment,inconvenience, or unfairnessto any individual on whominformation is maintained? M(p. 39)

300. Does the benefit systemprovide a mechanism tomonitor changes in softwarecoding and the responsibleindividual?71 M (p. 39)

71The responsible individual is the authorized user.

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Access to Information

Yes/no/

na Explanation

301. Does the benefit systemcomply with the disclosureprovisions of the Privacy Actof 1974,72 as amended? M (p.39)

302. Does the benefit system allowfor the information containedin the system to be queriedand detailed data to bepresented, as requested? M(p. 39)

303. Does the benefit system’squery capability allow foruser-defined criteria whenaccessing data for open orclosed accounting periods?M (p. 39)

304. Does the benefit systemprovide users with access toon-line guidance or help forperforming system functions?M (p. 39)

305. If a claimant’s or claimholder’s record is not locatedvia query, does the benefitsystem display a messageindicating that the transactioncannot be completed and thatfurther research is required?M (p. 39)

306. Does the benefit systempresent information resultingfrom system queries in anunderstandable format fornontechnical users? M (p. 39)

725 U.S.C., section 552A.

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______________________________________________________________________________




Yes/no/

na Explanation

307. Does the benefit system alsopresent information resultingfrom system queries in anunformatted fashion for moretechnically proficient users?M (p. 39)

308. Does the benefit systemprovide the capability toaccess historical data recordsthat are removed from on-lineviewing, including items suchas the following?

a. Individual benefitpayments.

b. Receivables.

c. Collection data. M (p. 39)

309. Does the benefit system allowusers to design extract filesfor their specificrequirements? M (p. 40)

310. Does the benefit system allowusers to perform table look-ups and expansion of codeswhen needed to clarify theinformation contained withinthe results of system queriesor reports? M (p. 40)

______________________________________________________________________________


______________________________________________________________________________




Yes/no/

na Explanation

311. Does the benefit systemprovide features (i.e.,matching programs) tofacilitate verification usinginformation extracted fromthe system for comparisonagainst benefit programsadministered by otheragencies, when legallypermitted? M (p. 40)

312. Does the benefit systemfacilitate the analysis ofinformation contained in thesystem by allowing analyststo obtain report informationand the results of systemqueries in data files that canbe transferred to otherapplications or analyticaltools? M (p. 40)

313. Does the benefit systemprovide for easy access tohistorical files forcomparative, analytical, andtrend information? M (p. 40)

314. Does the benefit systemprovide for self-service,claimant-initiated Webbrowser requests that canperform the followingfunctions?

a. Enable the claimants torequest the reissuance ofmisplaced payments usinga Web browser.

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______________________________________________________________________________




Yes/no/

na Explanation

b. Enable the claimants toaccess decision treefunctions to help guidethem through self-servicetransactions through aWeb browser.

c. Have pop-up windows tohelp annuitants whenmaking changes to filesthrough a Web browser.

d. Enable the claimant tocomplete forms using aWeb browser.

e. Have the ability to verifythe claimant securityinformation through a Webbrowser.

f. Provide access to claimantretirement-related datathrough interactive voiceresponse (IVR).

g. Make IVR available forclaimant inquiries 24 hoursa day, 7 days a week withthe exception of scheduledoutages.

h. Allow the claimants toinitiate changes to theiraccounts through IVR.

i. Have the ability to supportmultiple languages (e.g.,English and Spanish). V(p. 40)

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Data Entry

Yes/no/

na Explanation

315. Does the benefit systemutilize various automatedinput devices when hard copyapplications andcorrespondence are received,such as, for example, theutilization, whenever feasible,of optical recognition devices,digital imaging tools, or otherinput streamlining technologywhen processing standardhard copy applications orother requiredcorrespondence? M (p. 40)

316. Does the benefit systemsupport both batch and real-time on-line data entry, anddoes it use the same edit andupdate rules, as appropriate,for each mode? M (p. 40)

317. Does the benefit systemsupport simultaneous dataentry or access by multipleusers in a variety of accessmodes? M (p. 40)

318. Do the benefit system userentry and query screenssupport validation of enteredcodes? M (p. 40)

319. Does the benefit system assistusers in determining correctcodes if an invalid code isentered? M (p. 40)

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______________________________________________________________________________



Data Entry

Yes/no/

na Explanation

320. Does the benefit systemprovide for inquiry by the userto verify valid codes duringthe data entry process? M (p.40)

321. Does the benefit systemprovide the capability todisplay inputs required tocomplete transactions by auser based on the selection oftransaction type? M (p. 40)

322. Whenever possible, does thebenefit system utilizekeystroke-reducing tools suchas dropdown menus to reducethe chance of data entryerror? M (p. 40)

323. Does the benefit systemdisplay a message to the usernotifying him or her of theacceptance or rejection ofeach transaction once allinputs are completed? M (p.41)

324. Does the benefit systemidentify erroneous inputs withcorrective recommendations?V (p. 41)

325. Does the benefit systemprovide the capability forfinancial users to createcomments relating to all typesof transactions using free-form text? V (p. 41)

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Archiving and Purging

Yes/no/

na Explanation

326. Does the benefit systemprovide an automated meansfor permanently storingelectronic data? M (p. 41)

327. Does the benefit systemarchive transactions andrelated information neededfor audit trails in a formataccessible by audit software?M (p. 41)

328. Does the benefit systemprovide the authorized systemadministrator with theflexibility to determinewhether records are to bearchived or purged? M (p. 41)

329. Does the benefit system allowselective action on thedocuments that meet thecriteria for being archived orpurged? M (p. 41)

330. Does the benefit systeminclude the capability toestablish and maintain user-defined archival criteria? M(p. 41)

331. Does the benefit systemretain its records inaccordance with federalregulations established by theNational Archives andRecords Administration,GAO, and others? M (p. 41)

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______________________________________________________________________________



Archiving and Purging

Yes/no/

na Explanation

332. Does the benefit systemprevent the purging oftransactions prior to theproper period in accordancewith regulations governingthe retention of documentsand transactions? M (p. 41)

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Page 100 GAO-02-762G - Benefit System Requirements Checklist – Exposure Draft(9/02)

Information StoresApplication Information

Stores

Universal Data Elements

Yes/no/

na Explanation

333. Does the benefit systemcapture the name and addressof the claim holder?73 M (p.42)

334. Does the benefit systemcapture the SSN of the claimholder? M (p. 42)

335. Does the benefit systemcapture the birth date of theclaim holder? M (p. 42)

336. Does the benefit systemcapture the date of the initialclaim? M (p. 42)

337. Does the benefit systemcapture claimant information,if other than the claim holder,including the followinginformation:

a. name, address, SSN, andbirth date and

b. claimant’s relationship toclaim holder, whendifferent from the claimholder?74 M (p. 42)

73The claim holder is the person on whose record the benefit is earned or due.74For example, a claimant may be a spouse, child, or dependent parent of a claim holder.

______________________________________________________________________________


______________________________________________________________________________



Stores


Yes/no/

na Explanation

338. Does the benefit systemcapture the name andrelationship of arepresentative payee,including estate executors orlegal guardians, whenapplicable? M (p. 42)

339. Does the benefit systemcapture the specific benefitfor which the claim is made?M (p. 42)

340. Does the benefit systemcapture the claimant address?M (p. 42)

341. Does the benefit systemcapture bank information fordirect deposit including, ifapplicable, the AmericanBank Association routingnumber, claimant bankaccount number, and accounttype? M (p. 42)

342. Does the benefit systemcapture the type of evidenceor proof required andsubmitted, when applicable?M (p. 42)

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Stores


Yes/no/

na Explanation

343. Does the benefit systemcapture the status of the claim(e.g., approved, pending, ordenied)? M (p. 42)

344. Do benefit systems relating totaxable programs captureinformation needed todetermine the withholdingamount such as the following:

a. withholding status,75

b. tax number of withholdingallowances,

c. backup withholding, and

d. additional voluntaryamount of taxwithholding? M (p. 42)

75This does not necessarily equate to marital status (e.g., married, single, or exempt).

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Stores


Yes/no/

na Explanation

345. If a benefit system is used inadministering “means testedprograms,” does it capturethe following information?

a. Claimant wages, salaries,and other income that isconsidered in determiningeligibility and/or benefitamounts.

b. Types and amounts ofassets owned by theclaimant, which areconsidered in determiningeligibility and/or benefitamounts. M (p. 43)

346. Does the benefit systemcapture the gender of aclaimant?76 V (p. 43)

76This facilitates verifying a claimant’s identity.

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Stores

Federally Administered

Retirement Benefit Systems

Yes/no/

na Explanation

347. Does the benefit systemcapture the effective date ofretirement? M (p. 43)

348. Does the benefit systemcapture the claim holder orclaimant dependencyinformation?77 M (p. 43)

349. Does the benefit systemcapture the dates ofcreditable employment78 ofthe claim holder? M (p. 43)

350. Does the benefit systemcapture historical earningsdata79 of the claim holderrequired for determiningeligibility or the amount ofbenefits? M (p. 43)

351. Does the benefit systemcapture total participant andemployer contributions to theretirement plan made onbehalf of the participant? M(p. 43)

352. Does the benefit systemcapture current balance ofvested employee andemployer contributions? V(p. 44)

77For example, does the system capture whether the claim holder is the child or parent of the claimant and visa versa?78This also includes military service when used in determining eligibility and the amount of benefits.79For example, does the system capture previous annual wages and salary?

______________________________________________________________________________


______________________________________________________________________________



Stores

Federally Administered


Yes/no/

na Explanation

353. Does the benefit systemcapture other names, such asa maiden name, the claimholder has used? V (p. 44)

354. Does the benefit systemcapture the phone number ofthe claimant? V (p. 44)

355. Does the benefit systemcapture any other uniqueidentifying number? V (p. 44)

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Stores

Federal Employment Related


Yes/no/

na Explanation

356. Does the benefit systemcapture the date of finalseparation? M (p. 44)

357. Does the benefit systemcapture lump sum80

distributions versus annuitydistributions? M (p. 44)

358. Does the benefit systemcapture annuity selection?81

M (p. 44)

359. Does the benefit systemcapture present maritalstatus? M (p. 44)

360. Does the benefit systemcapture spouse’s name, dateof birth, SSN, and date ofmarriage, when applicable?M (p. 44)

361. Does the benefit systemcapture the name, date ofbirth, SSN, and dates ofmarriage and divorce offormer spouses who have acourt-ordered annuity? M (p.44)

362. Does the benefit systemcapture the percentage ordollar amount of court-ordered former spouseannuity? M (p. 44)

80Lump sum refers to refund of contributions.81For example, does the system whether the annuity selection is for self-only, self and reduced survivor, or self andmaximum survivor?

______________________________________________________________________________


______________________________________________________________________________



Stores

Federal Employment Related


Yes/no/

na Explanation

363. Does the benefit systemcapture the highest pay scale,(grade) level, or amount ofhighest salary and relateddates? M (p. 44)

364. Does the benefit systemcapture the voluntaryseparation monetaryincentive? M (p. 44)

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Stores

Disability Related Benefits

Yes/no/

na Explanation

365. Does the benefit systemcapture the type of disabilityor disability code? M (p. 44)

366. Does the benefit systemcapture the date of disabilityonset or injury? M (p. 44)

367. Does the benefit systemcapture the degree ofimpairment or diagnosis? M(p. 44)

368. Does the benefit systemcapture the name ofexamining physician? M (p.44)

369. Does the benefit systemcapture where the claimant’sinjury occurred? M (p. 44)

370. Does the benefit systemcapture whether the disabilitywas caused by employment orwas related to militaryservice? V (p. 45)

371. Does the benefit systemcapture the claimant’s ordependent(s)’ student status(e.g., full-time, yes or no)? V(p. 45)

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Stores

Death Benefits

Yes/no/

na Explanation

372. Does the benefit systemcapture claimant’s relation toclaim holder? M (p. 45)

373. Does the benefit systemcapture the dates ofcreditable employment of theclaim holder, includingmilitary service, when used indetermining eligibility and theamount of benefits? M (p. 45)

374. Does the benefit systemcapture claimant dependencyinformation when it affectsthe benefit amount? M (p. 45)

375. Does the benefit systemcapture the date married,when applicable? M (p. 45)

376. Does the benefit systemcapture the date divorced,when applicable? M (p. 45)

377. Does the benefit systemcapture the date of claimholder death? M (p. 45)

378. Does the benefit systemcapture the claimant’s and/orclaim holder’s dependent(s)student status?82 V (p. 45)

82For example, is the student full-time?

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Stores

Survivor Benefits

Yes/no/

na Explanation

379. Does the benefit systemcapture the claimant’srelation to the claim holder?M (p. 45)

380. Does the benefit systemcapture the dates ofcreditable employment of theclaim holder,83 includingmilitary service when used indetermining eligibility and theamount of benefits? M (p. 45)

381. Does the benefit systemcapture claim holder orclaimant dependencyinformation?84 M (p. 45)

382. Does the benefit systemcapture the date [the claimholder was] married, whenapplicable?85 M (p. 45)

383. Does the benefit systemcapture the date [the claimholder was] divorced, whenapplicable?86 M (p. 45)

384. Does the benefit systemcapture the date of claimholder death? M (p. 45)

385. Does the benefit systemcapture the student status?87

M (p. 45)

83For example, does the system capture military service when used in determining eligibility and the amount of benefits?84For example, does the system capture whether the claim holder has dependent children or parents?85That is, the claimant is a former spouse.86As above.87For example, is the claimant a full-time student?

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Stores

Other Benefits

Yes/no/

na Explanation

386. Does the benefit systemcapture universal dataelements88 only? M (p. 46)

387. Does the benefit systemcapture the student status89 ofthe claimant or dependent(s)?V (p. 46)

88These are covered in questions 333 through 346.89For example, is the student full-time?

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______________________________________________________________________________


Information StoresClaimant Master Record

Information Store

Yes/no/

na Explanation

388. Does the benefit systemmaintain all applicablemandatory data elements90

specified within theapplication information datastores? M (p. 46)

389. Does the benefit systemmaintain general informationsuch as the following:

a. case status,

b. benefit type, and

c. chronology of key dates?M (p. 46)

390. Does the benefit systemmaintain, as appropriate,award data, such as thefollowing:

a. total award,

b. monthly gross payment,and

c. net monthly payment? M(p. 46)

90That is, does the system maintain universal data elements and appropriate categorical information?

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______________________________________________________________________________


Information StoresClaimant Master Record

Information Store

Yes/no/

na Explanation

391. Does the benefit systemmaintain payment history,such as the following:

a. prior disbursements;

b. collections, includingprincipal and interest; and

c. accruals? M (p. 46)

392. Does the benefit systemmaintain special collectionactivity, such as the following:

a. delinquent debt collectionactivity and

b. status? M (p. 46)

393. Does the benefit systemmaintain general data such asdemographic data other thanthat specified in theapplication informationstores?91 V (p. 46)

91That is, does the system maintain information that has been historically used by the agency in preparing actuarialestimates for purposes such as forecasting and complying with financial statement reporting requirements and SFFAS 5and 17?

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Information StoresFinancial Information Store

Yes/no/

na Explanation

394. Does the benefit systemmaintain the present interestrate per the Department ofthe Treasury? M (p. 46)

395. Does the benefit systemmaintain the daily exchangerate for relevant 92 currencies?V (p. 47)

92That is, the currencies are specified by the agency.

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Page 115 GAO-02-762G – Benefit System Requirements Checklist – Exposure Draft (9/02)

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Related GAO Products

These related products address three main categories: internal control, financialmanagement systems, and financial reporting (accounting standards). We havedeveloped these guidelines and tools to assist agencies in improving or maintainingeffective operations and financial management.

Internal Control

Internal Control Management and

Evaluation Tool. GAO-01-1008G.Washington, D.C.: August 2001.

Streamlining the Payment Process While

Maintaining Effective Internal Control.

GAO/AIMD-00-21.3.2. Washington, D.C.:May 2000.

Determining Performance and

Accountability Challenges and High Risks,GAO-01-159SP. Washington, D.C.:November 2000.

Standards for Internal Control in the

Federal Government. GAO/AIMD-00-21.3.1.Washington, D.C.: November 1999.

Financial Management Systems

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.

Core Financial System Requirements

Checklist. GAO/AIMD-00-21.2.6.Washington, D.C.: February 2000.

Guaranteed Loan System Requirements

Checklist. GAO-010-371G. Washington,D.C.: March 2001.

System Requirements for Managerial Cost

Accounting Checklist. GAO/AIMD-99-21.2.9. Washington, D.C.: January 1999.

Seized Property and Forfeited Assets

Requirements Checklist. GAO-01-99G.Washington, D.C.: October 2000.

Inventory System Checklist. GAO/AIMD-98-21.2.4. Washington, D.C.: May 1998.

Travel System Requirements Checklist.

GAO/AIMD-00-21.2.8. Washington, D.C.:May 2000.

Framework for Federal Financial

Management System Checklist.GAO/AIMD-98-21.2.1. Washington, D.C.:May 1998.

Direct Loan System Requirements

Checklist. GAO/AIMD-00-21.2.6.Washington, D.C.: April 2000.

______________________________________________________________________________


______________________________________________________________________________


Financial Reporting (Accounting Standards)

Title 2 Standards Not Superceded by

FASAB Issuances. GAO-02-248G.Washington, D.C.: November 2001.

Checklist for Reports Prepared Under the

CFO Act (Section 1004 of the GAO/PCIE

Financial Audit Manual). Washington,D.C.: July 2001.

(193025)

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