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Chapter 9500

Revised Federal Financial Management System Requirements for Fiscal Reporting

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This chapter notifies agencies of the revised Federal Financial Management System Requirements.  

Section 9510—Introduction

One purpose of the Federal Financial Management Improvement Act of 1996 (FFMIA) was to provide for the establishment of uniform financial systems, standards, and reporting. In support of this purpose, the Financial Systems Integration Office (FSIO), previously the Joint Financial Management Improvement Program (JFMIP), developed and issued core financial system requirements and administered a software certification program to evaluate financial system software for compliance with the requirements. Activities to implement FFMIA became increasingly burdensome over time and offered limited flexibility to reduce the cost, risk, and complexity of financial system modernizations. To remedy these issues, the Office of Management and Budget (OMB) assigned the Department of the Treasury (Treasury) the responsibility of developing and maintaining a revised set of financial management system requirements.

Section 9515—Authority

For agencies subject to the Chief Financial Officers Act of 1990 (CFO Act), this Treasury Financial Manual (TFM) chapter provides guidance for using these requirements when determining compliance with the Federal Financial Management Improvement Act of 1996 (FFMIA).

Section 9520—Requirements

Appendix 1 below contains the revised Federal Financial Management System Requirements that Treasury updated, in consultation with federal departments and agencies and other financial management stakeholders. The updated requirements are revised to:

  • focus on business outcomes rather than technology,
  • be neutral to how an agency achieves the financial management business outcomes (e.g., software, shared services),
  • emphasize financial management outcomes unique to the federal government (e.g., funds control), and
  • apply to both administrative systems and programmatic systems that support financial management business outcomes (that is, “mixed systems”).

Agencies should use the Federal Financial Management System Requirements in the pre-acquisition, acquisition, and implementation of new financial management solutions (manual or automated). In addition, agencies should use the Federal Financial Management System Requirements in accordance with Appendix D (Compliance with the Federal Financial Management Improvement Act of 1996) to OMB Circular A-123 (Management’s Responsibility for Enterprise Risk Management and Internal Control). Appendix D is a new appendix to Circular A-123 and contains an outcome-based approach to assess FFMIA compliance through a series of financial management goals that are common to all agencies.

Supplemental Information: As managing partner for the Financial Management Line of Business (FMLoB), Treasury’s Office of Financial Innovation and Transformation has developed a set of FM Standard References, which include the Federal Financial Management System Requirements and other documents, to guide agencies in improving the cost, quality, and performance of federal financial activities and solutions (Financial Management Standards).

Contact  

Direct questions regarding this chapter to:
Department of the Treasury
Bureau of the Fiscal Service
Financial Innovation and Transformation
3201 Pennsy Drive, Building E
Landover, MD 20785
Email: FMSC@fiscal.treasury.gov

Appendices Listing

Appendix No. Title
1 Federal Financial Management System Requirements

Summary of Updates in This Release

Section No.

Section Title

Summary of Change

All 

Authority

Corrected grammar and eliminated unnecessary passive voice

9510

Introduction

Move content previously under 9520 – Background to 9510- Introduction

Appendix 1

1.1.3.3; 1.3.1.1; 1.3.1.2; 1.3.2.2

Updated authoritative reference by adding SFFAS 56: Classified Activities

Appendix 1

1.1.5.1

Updated authoritative reference by removing TFM Volume 1, Part 6, Chapter 4000 Intragovernmental Transaction Applications - Intragovernmental Payment and Collection (IPAC) and Government Invoicing (G-Invoicing), and adding TFM Volume I, Part 2, Chapter 4700 Federal Entity Reporting Requirements for the Financial Report of the United States Government

Appendix 1

1.2.1.1; 1.2.1.2; 1.4.1.1

Updated authoritative reference by adding SFFAS 55: Amending Inter-entity Cost Provisions and removing SFFAS 30: Inter-Entity Cost Implementation: Amending SFFAS 4, Managerial Cost Accounting Standards and Concepts.

 

Appendix 1

1.3.2.2

Updated requirement description to include reference to the FASAB Handbook
Appendix 1 2.1.3.1, 2.2.1.1; 2.2.1.2, 2.2.5.5 Updated authoritative reference section numbering.
Appendix 1 2.2.1.1, 2.2.1.3 Updated the requirement description to include 48 CFR
Appendix 1 2.2.1.1 Updated the authoritative reference by changing FAR Subpart 4.11, System for Award Management (SAM) to 48 CFR 4.11, System for Award Management (SAM), and adding 48 CFR Federal Acquisitions Regulations System (FARS)
Appendix 1 2.2.1.2; 2.2.1.3; 2.2.2.1; 2.2.2.2; 2.2.4.1 Updated the authoritative reference by adding 48 CFR 32, Contract Financing
Appendix 1 2.2.4.1; 2.2.5.1; 2.2.5.2; 2.2.5.6, 2.2.6.1 Updated authoritative reference hyperlinks.