Requirements Definition of the Integrated Financial System

 

August 2003

 

Reference Number:  2003-10-179

 

 

This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

 

August 29, 2003

 

 

MEMORANDUM FOR ACTING CHIEF FINANCIAL OFFICER

 

FROM:     for Gordon C. Milbourn III /s/ Daniel R. Devlin

                Assistant Inspector General for Audit (Small Business and

                Corporate Programs)

 

SUBJECT:     Final Audit Report - Requirements Definition of the Integrated Financial System  (Audit # 200310006)

 

This report presents the results of our review of the Internal Revenue Service’s (IRS) requirements definition for the Integrated Financial System (IFS).  The overall objective of this review was to determine whether the IRS effectively ensured that all Federal Government financial management system requirements were defined and addressed in the planning for the IFS.

The implementation of the proposed IFS will greatly affect the way the IRS records and reports both administrative and custodial accounting transactions.  The IFS represents a key element of the corrective actions being taken by the IRS to ensure its accounting system is in compliance with Joint Financial Management Improvement Program (JFMIP) Federal Financial Management System Requirements and provides accurate and timely financial information for management decision making.

In summary, we found that the IRS established a framework to identify material administrative accounting requirements for inclusion in the IFS.  However, we identified 64 JFMIP requirements that were not specifically or fully addressed in the IFS’ System Requirements Report (SRR), which represents the detailed design of the IFS.  Of these 64 requirements, 36 represented mandatory JFMIP requirements and 28 represented value-added requirements.

We recommended that the Acting Chief Financial Officer (CFO), along with the IFS contractor, ensure that the identified JFMIP requirements are fully addressed and incorporated into the IFS’ SRR.  Further, the Acting CFO, as a key member of the IFS implementation team, should take a more active role to ensure that the contractor is meeting its responsibilities to deliver a JFMIP-compliant system.

Management’s Response:  IRS management agreed in principle with the recommendations presented in the report.  CFO officials have assessed the missing or incomplete JFMIP requirements included in this report and have provided assurances that the requirements either are addressed through a collection of requirements in the SRR or will be addressed by ensuring that the requirements are included in future releases of the IFS.  The Acting CFO has and will continue to conduct briefings with the IRS CFO project manager, meet weekly and monthly with the IFS contractor, and participate in weekly IFS Governance meetings to discuss project progress and address contractor issues.  In addition, the Acting CFO will transmit all of our audit results and the CFO’s responses to the IFS contractor, directing the contractor to address all mandatory requirements for Release 1 and to include the other mandatory and
value-added requirements in future releases as needed.  Management’s complete
response to the draft report is included as Appendix V.

Copies of this report are also being sent to the IRS managers who are affected by the report recommendations.  Please contact me at (202) 622-6510 if you have questions or Daniel R. Devlin, Assistant Inspector General for Audit (Headquarters Operations and Exempt Organizations Programs), at (202) 622-8500.

 

Table of Contents

Background

Framework Established to Identify Material Administrative Accounting Requirements for Inclusion in the Integrated Financial System

Not All Federal Financial Management System Requirements Addressed

Recommendations 1 and 2:

Appendix I – Detailed Objective, Scope, and Methodology

Appendix II – Major Contributors to This Report

Appendix III – Report Distribution List

Appendix IV – Joint Financial Management Improvement Program Requirements Not Addressed

Appendix V – Management’s Response to the Draft Report

 

Background

The Internal Revenue Service (IRS) is in the midst of Business Systems Modernization (BSM), a major technological and business process transformation program.  BSM will radically change the IRS’ approach to satisfying its customers – the taxpayers.

The IRS-prepared document titled, “Case for Action,” reported the need to improve the IRS’ financial systems.  It recommended implementing a Commercial-off-the-Shelf (COTS) software package as the most cost-effective alternative to achieve legislative compliance and provide the internal management data and services that the IRS needs to effectively manage its operations.

The Integrated Financial System (IFS), if implemented fully, will replace the IRS’ Automated Financial System (AFS) and related feeder systems such as the Budget Formulation System, Integrated Procurement System, Request Tracking System, and Travel Reimbursement and Accounting System.  In addition, the IFS will include a Cost Management System, which does not currently exist within the AFS framework.

As of July 2003, the IRS planned to implement the IFS project in at least four releases over a period of several years.  Release 1, which was scheduled for October 1, 2003, will include the accounting functions of Accounts Payable, Accounts Receivable, General Ledger Management, Budget Execution, Cost Management, and Financial Reporting.  Release 1.1, scheduled for January 2004, will include Cost Performance Measures and Budget Formulation.  Release 2, scheduled for August 2005, will include Property Accounting/Management and a software and configuration upgrade to the COTS product.  Release 3, scheduled for 2008, will include Procurement Management.  A Release 4 is being contemplated to include the remaining functionality of the IFS.

 

The IFS is to be compliant with the Joint Financial Management Improvement Program’s (JFMIP) Core Financial System Requirements.  The JFMIP requirements are defined by the seven functions of Core Financial Systems Management, General Ledger Management, Funds Management, Payment Management, Receivable Management, Cost Management, and Reporting.  The Core Financial System Requirements are further supplemented by more detailed JFMIP publications, such as the Property Management System Requirements and Travel System Requirements.  Together, the core requirements and the supplemental requirements constitute the Federal Financial Management System Requirements.  The Federal Financial Management Improvement Act of 1996 (FFMIA) codified the JFMIP requirements as key requirements that Federal Government agency systems must meet to be substantially in compliance with the system requirements provisions of the FFMIA.

 

The General Accounting Office (GAO), in its November 2002 financial statement audit report, stated that the IRS’ financial management systems did not substantially comply with the requirements of the FFMIA.  The report went on to say that the IRS has acknowledged that its financial management systems do not comply with the FFMIA and that it needs to overhaul these systems as part of its broader systems modernization efforts.

The primary goals for the IFS are to:

·        Improve the IRS’ ability to meet all internal and external requirements related to management controls, performance measures, and reporting.

·        Help the IRS sustain an unqualified audit opinion on its consolidated financial statements and improve compliance with numerous legislative directives.

·        Improve the type, timeliness, and quality of administrative activity data provided to IRS executives and managers to support them in making sound business decisions to effectively manage the agency.

·        Provide timely, detailed financial, cost accounting, property accounting, and procurement data to authorized users.

·        Improve the timeliness and quality of administrative services provided to employees and the operating divisions and functions by reengineering processes and implementing best practices.

Our online review was performed at the IRS National Headquarters in the office of the Chief Financial Officer (CFO) in Washington, D.C., from February through May 2003.  The scope of this audit focused on requirements definitions for the administrative accounting activities of the IFS project.  Specifically, in conducting our tests, we used the JFMIP Federal Financial Management System Requirements as the basis for our conclusions.  During our testing, we also considered applicable Federal Accounting Standards Advisory Board-promulgated Statements of Federal Financial Accounting Standards and Office and Management and Budget (OMB) Bulletins and Circulars, to the extent that they were addressed by the JFMIP requirements.

We will conduct a follow-on audit to review the implementation of the administrative requirements, including an assessment of the impact of the missing or incomplete requirements described later in this report.  We expect to complete this follow-on review and issue a report early in Fiscal Year 2004.  Further, we are planning an additional audit that will include an analysis of the Custodial Accounting Project, which is the IRS’ major systems modernization effort for its custodial accounting activities.  In conducting this audit, it was not our intent to assess the IRS’ compliance with systems development life cycle requirements.  Our Information Systems Programs auditors are concurrently conducting a review of this type and scope and will issue a separate report.

This audit was conducted in accordance with Government Auditing Standards.  Detailed information on our audit objective, scope, and methodology is presented in Appendix I.  Major contributors to the report are listed in Appendix II.

Framework Established to Identify Material Administrative Accounting Requirements for Inclusion in the Integrated Financial System

The IRS, working through the PRIME Alliance, established a framework to identify material JFMIP administrative accounting requirements to be included in the IFS.  Examples of actions taken include:

·        Assignment of subject matter experts to the individual project implementation teams.

·        Participation in Customer Technical Reviews to identify accounting requirements specific to the IRS.

·        Participation in system testing to ensure requirements are adequately addressed within specific test cases.

The IFS integration contractor also took steps to ensure applicable accounting requirements were met.  As part of the Enterprise Life Cycle process, the contractor developed a System Requirements Report (SRR) that defined the IFS system requirements based in part on JFMIP-released Federal Financial Management System Requirements and the Federal Accounting Standards Advisory Board-promulgated Statements of Federal Financial Accounting Standards (SFFAS).

We believe that these core actions, when taken as a whole with other IFS implementation activities, represent sound planning activities taken on behalf of the IRS to ensure financial management requirements are addressed in the IFS.

Not All Federal Financial Management System Requirements Addressed

Our review of over 850 JFMIP requirements identified 64 that were not specifically or fully addressed in the IFS’ SRR.  Of these 64 requirements, 36 represented mandatory JFMIP requirements and 28 represented value-added requirements.

The nonaddressed requirements represented a wide range of accounting system elements:  from the number of compound general ledger debit and credit entries that can be posted for a single transaction, which could adversely affect the accurate recording of transactions, to the recording of reason codes for lost discounts and late payments, which could affect the ability to collect and act on certain financial information.  See Appendix IV for a complete list of the requirements that were not specifically or fully addressed.

We believe that, by not fully addressing JFMIP requirements, the SRR does not provide for an IFS that will be in compliance with the Federal Financial Management System Requirements or meet the IRS goals established for the IFS.

The IRS informed us that the requirements may not have been addressed because of a timing issue between the completion of the SRR and the issuance of final JFMIP requirements (i.e., due to the timing of events, some of the requirements used to build the IFS were based on requirements contained in an exposure draft document).  We determined that this explanation pertained to 40 final core financial system requirements.  Analysis of these 40 nonaddressed final requirements showed:

·        Thirteen were in the exposure draft.

·        Sixteen were partially in the exposure draft.

·        Eight were reworded from the exposure draft.

·        Three were not in the exposure draft.

Notwithstanding the IRS’ explanation, we believe that the timing of requirements issuance should not be an issue for ensuring that all mandatory JFMIP requirements are included in the SRR.  The IRS addressed the risks of the JFMIP by making major additions/deletions to the requirements within the Risk Management Plan of the IFS Project Management Plan, dated April 9, 2002.  The Plan’s risk mitigation approach is for the contractor to monitor JFMIP activities and initiate change requests to the SRR any time during the project.

Further, the Risk Management Plan establishes that the vendor is responsible for JFMIP compliance.  Therefore, we believe that all major changes to the JFMIP requirements resulting from the exposure draft process should be identified and, where appropriate, the SRR should be changed.  In addition, although the monitoring activity discussed above is the responsibility of the contractor, we believe the IRS is responsible for actively administering this critical activity.

The other 24 requirements were identified from JFMIP requirement documents that were issued in final form before the SRR was released.  We could not determine from our discussions with IFS project staff or reviews of available documentation whether these requirements were knowingly omitted from the SRR or were overlooked when the SRR was prepared. 

Our tests also confirmed that the SRR sufficiently addressed relevant SFFAS and OMB guidance to the extent that such standards and guidance were included in the JFMIP requirements.  We further confirmed that the SRR contained accounting requirements that addressed all open GAO financial statement administrative accounting recommendations.

The IRS is currently reviewing our list of missing or incomplete mandatory and value-added requirements to identify requirements that should be included in the IFS’ SRR. 

Recommendations

1.      The Acting CFO, along with the IFS contractor, should ensure that the missing or incomplete JFMIP requirements are fully addressed, the mandatory requirements are included in the SRR, and the value-added requirements are properly evaluated to ensure compliance with the JFMIP.  Further, the Acting CFO should ensure that compensating controls or procedures are defined for any mandatory or value-added requirements that are not specifically or fully included in the SRR.

Management’s Response:  CFO officials have assessed the missing or incomplete JFMIP requirements included in this report and have provided assurances that the requirements either are addressed through a collection of requirements in the SRR or will be addressed by ensuring that the requirements are included in future releases of the IFS.

2.      The Acting CFO, as a key member of the IFS implementation team, should take a more active role to ensure that the contractor is meeting its responsibilities to deliver a JFMIP-compliant system.

Management’s Response:  The Acting CFO has and will continue to conduct briefings with the IRS CFO project manager, meet weekly and monthly with the IFS contractor, and participate in weekly IFS Governance meetings to discuss project progress and address contractor issues.  In addition, the Acting CFO will transmit all of our audit results and the CFO’s responses to the IFS contractor, directing the contractor to address all mandatory requirements for Release 1 and to include the other mandatory and value-added requirements in future releases as needed.

 

Appendix I

 

Detailed Objective, Scope, and Methodology

 

The overall objective of this review was to determine whether the Internal Revenue Service (IRS) effectively ensured that all Federal Government financial management system requirements were defined and addressed in the planning for the Integrated Financial System (IFS).  To accomplish our objective, we:

I.                    Gained an understanding of the planning, design, and implementation stages of the IFS project.

A.     Discussed the various IFS stages with responsible IRS officials.

B.     Obtained from the IRS’ Business Systems Modernization Office web site and responsible IRS officials documentation of the planned implementation.

C.     Identified the due dates of each phase of the project.  Also identified inter-relationships between and among the phases (i.e., the impact of nonimplementation of one phase on the successful implementation of a subsequent phase).

D.     Monitored the activities of the sub-Executive Steering Committee (ESC) responsible for the implementation of the IFS by attending its meetings and/or reviewing meeting minutes.

E.      Reviewed the key points of the task orders to purchase and integrate the IFS and to monitor and test the IFS.

II.                 Evaluated the IRS’ process to ensure that the IFS meets Federal Government financial system requirements.

A.     Interviewed key IRS officials who are responsible for IFS implementation to assess the overall implementation control environment.

B.     Reviewed sub-ESC meeting minutes and status reports to identify the type of monitoring that was being performed and who was performing the monitoring.

C.     Identified the work being performed by the contractor to ensure financial system requirements were identified, developed, and addressed during the requirement’s definition process of the IFS.

III.               Determined whether the IFS’ System Requirements Report (SRR) included all material Federal Government financial system requirements.

A.     Traced the Joint Financial Management Improvement Program (JFMIP) Federal Financial Management System Requirements, including the Core Financial System Requirements (dated November 2001), Property Management System Requirements (dated October 2000), Seized Property and Forfeited Assets System Requirements (dated December 1999), and Travel System Requirements (dated July 1999), to the IFS’ SRR (dated November 29, 2001, and as revised on October 16, 2002).

B.     Identified relevant Statements of Federal Financial Accounting Standards and determined whether the standards were addressed in the JFMIP requirements and, therefore, included in our tracing to the IFS’ SRR.

C.     Identified relevant Office of Management and Budget Bulletins or Circulars and determined whether the guidance was addressed in the JFMIP requirements and, therefore, included in our tracing to the IFS’ SRR.

D.     Identified relevant General Accounting Office financial statement audit weaknesses/recommendations and determined whether the weaknesses/recommendations were addressed in the IFS’ SRR.

 

Appendix II

 

Major Contributors to This Report

 

Daniel R. Devlin, Assistant Inspector General for Audit (Headquarters Operations and Exempt Organizations Programs)

John R. Wright, Director

Thomas J. Brunetto, Audit Manager

Bobbie M. Draudt, Senior Auditor

S. Kent Johnson, Senior Auditor

Gary D. Pressley, Senior Auditor

Gwenevere Bryant-Hill, Auditor

Richard E. Louden, Auditor

Peter L. Stoughton, Auditor

 

Appendix III

 

Report Distribution List

 

Commissioner  N:C

Deputy Commissioner for Operations Support  N:OS

Chief, Agency-Wide Shared Services  A

Chief Information Officer  M

Director, Procurement  A:P

Chief Counsel  CC

National Taxpayer Advocate  TA

Director, Office of Legislative Affairs  CL:LA

Director, Office of Program Evaluation and Risk Analysis  N:ADC:R:O

Office of Management Controls  N:CFO:AR:M

Audit Liaison:  Chief Financial Officer  N:CFO

                         Associate Commissioner, Business Systems Modernization  M:B

 

Appendix IV

 

Joint Financial Management Improvement Program Requirements Not Addressed

 

The following requirements are from the related Joint Financial Management Improvement Program (JFMIP) publications.  Listings with Bolded text represent requirements that were only partially addressed in the Integrated Financial System’s (IFS) System Requirements Report (SRR).  The Bolded text represents the part of the requirement that was not addressed.  The CATEGORY column designates the JFMIP requirement type.  Federal Government agencies must use the mandatory (required) functional and technical requirements in planning their core financial system improvement projects.  Value-added (optional) requirements should be used as needed by the agencies.

 

#

JOINT FINANCIAL MANAGEMENT IMPROVEMENT PROGRAM REQUIREMENT

CATEGORY

 

 

 

 

CORE - Core Financial System Management

 

 

 

 

1

Provide an object class structure consistent with the standard object class codes contained in OMB Circular No. A-11.  Provide flexibility to accommodate additional levels (lower) in the object class structure.

Mandatory

2

Allow the user to enter, edit, and store accounting classification table changes so that the changes automatically become effective at any future date determined by the user.

Mandatory

3

Reject or suspend interfaced transactions that contain accounting classification elements or domain values that have been deactivated or discontinued.

Mandatory

4

Validate all transactions involving Treasury and other disbursing centers for valid combinations of ALC and TAS/TAFS, as defined by the user.

Value-Added

5

Provide for an automated method to reclassify accounting data at the document level when a restructuring of the existing values pertaining to the mandatory accounting classification elements is needed.  Maintain an audit trail from the original postings to the final posting.

Value-Added

6

Allow users to define and maintain standard rules that control general ledger account postings for all accounting events.  The process of defining posting rules can be accomplished in a variety of ways, including (but not limited to) using:  transaction codes, screen “templates,” derivation rules, and others.

Mandatory

7

Enable users to selectively require, omit, or set a default value for individual accounting classification elements.  For example, a budget object class code value is not necessarily needed when recording depreciation expenses.

Mandatory

8

Define, generate and post compound general ledger debit and credit entries for a single transaction.  Accommodate at least 10 debit and credit pairs or
20 accounts
when defining and processing a single transaction.

Mandatory

9

Control the correction and reprocessing of all erroneous transactions through the use of error/suspense files.  Erroneous transactions must be maintained until either corrected and posted or deleted at the specific request of a user.

Mandatory

10

Capture the six-digit trading partner code (as specified by Treasury) when processing all transactions that directly involve another Federal entity (i.e., both parties to a transaction are Federal entities).

Mandatory

 

 

 

 

CORE - General Ledger Management

 

 

 

 

11

Prohibit new transactions from posting to general ledger accounts that have been deactivated.

Mandatory

12

Close an accounting period and prohibit subsequent postings to the closed period.

Mandatory

 

 

 

 

CORE - Funds Management

 

 

 

 

13

Prepare operating/financial plans based on multiple measures, including obligations, costs, labor hours, and full-time equivalents.

Value-Added

14

Roll future plans into active budget plans based on future date or retrieval function.

Value-Added

15

Populate the budget formulation system with prior-year budgeted and actual amounts.

Value-Added

16

Perform projections of obligations, income, and expenditures at any level of the organizational structure (e.g., projecting obligations based on prior periods and applying these to a future period).

Value-Added

17

Request approval for reprogramming and request additional funds outside the periodic budget review process.  Allow such requests to be submitted, reviewed, revised, and approved.  Approval would update current operating budgets.

Value-Added

 

 

 

 

CORE - Payment Management

 

 

 

 

18

Track and maintain a history of changes to the vendor file, including vendor additions and purges, and changes to vendor specific information such as payment address, bank account and routing information, and payment type.  Maintain an audit trail of payments made to historical vendor information.

Mandatory

19

Capture, store, and process the following information for each vendor invoice, for audit trail, research and query purposes:  Invoice number, Invoice date, Invoice receipt date, Invoice due date, Invoice amount, Unit price and quantity, Description, Discount terms, as applicable, Obligating document reference(s), Vendor identification number and address code.

Mandatory

20

Edit the TIN field to ensure that it is a nine-digit numeric field, does not include dashes, and is not all zeroes.  Allow for override for agency specific requirements.

Mandatory

21

Record additional shipping and other charges to adjust the payment amount, if they are authorized and within variance tolerances.

Mandatory

22

Automatically apply interest and discount across multiple accounting lines on an invoice in the same rule used to apply the original payment.

Mandatory

23

Record reason codes for returned and adjusted invoices, lost discounts, and late payments.

Mandatory

24

Edit the ALC field to ensure it is an eight-digit numeric field.  Allow for override (e.g., by agencies that have their own disbursing authority).

Mandatory

25

Automatically generate transactions to reflect disbursement activity initiated by other agencies and recorded in Central agency electronic systems (such as OPAC/IPAC).  Capture related information required by the Central agency system for each transaction (e.g., purchase order number, reimbursable agreement number, ALC).

Mandatory

26

Allow for the exclusion of payments from agency offset based on user-defined criteria including funding source, object class, vendor type, and vendor number.

Mandatory

27

On each payment schedule/file, report totals by TAS/TAFS.

Mandatory

28

For each payment made by the Core financial system, maintain a history of the following information:  Vendor Invoice number, Invoice amount, Vendor identification number, Vendor name, Payment address or banking information, Payment amount, Interest paid, when applicable, Discount taken, when

 

applicable, Offset made, when applicable, Payment method (e.g., check, EFT), Referenced obligation number, and, Appropriation charged.

Mandatory

29

Automatically liquidate the in-transit amount and reclassify budgetary accounts from unpaid to paid when the payment confirmation updates the system.

Mandatory

30

Record more than one check range for a payment schedule, along with a break in check numbers.

Mandatory

31

Produce IRS-1099s (such as 1099-INT, 1099-MISC, 1099-C and 1099-G) in accordance with IRS regulations and current IRS acceptable format, including hard copy and electronic form.  For example, when payment to a sole proprietor for services performed (not including cost of merchandise) exceeds a specified dollar amount (e.g., $600) produce a 1099-M.

Mandatory

 

 

 

 

CORE - Receivable Management

 

 

 

 

32

Maintain customer information to support receivable management processes, including, at a minimum:  Customer name, Customer ID number, Customer type (federal agency, state/local government, commercial entity, individual, employee), Taxpayer Identification Number (TIN), Customer address, Contact names, Contact telephone number, Federal vs. Non-Federal indicator, Six-digit Trading Partner codes, ALC number (for Federal customers), Internal Revenue Service (IRS) 1099 indicator, Comment field, Date of last update, User ID of last update, DUNS number.

Mandatory

33

Maintain customer account information for audit trail purposes and to support billing, reporting, and research activities, including:  Account number, Account balance, Associated Customer ID number, Date due and age of accounts receivable, Reimbursable order number, travel order number, etc., where applicable.

Mandatory

34

Generate monthly statements to customers showing account activity.

Mandatory

35

Update each customer account when:  billing documents are generated; collections are received; interest, penalty, or administrative fees are applied, and when amounts are written-off or offset.

Mandatory

36

Automatically calculate interest charges using the appropriate Treasury Late Payment Charge rate and user-defined criteria (e.g., customer, customer type).  Automatically generate a separate line item for interest charges on the customer bill.

Mandatory

37

Allow the user to specify administrative and penalty amounts and record these amounts to different accounting classification elements for which the principle amount is recorded.  Automatically apply these charges to customer accounts and generate separate line items for the charges on the customer bills.

Mandatory

38

Automatically create files of delinquent accounts for electronic submission to collection agencies and appropriate governmental organizations.

Mandatory

39

Track and report on the date and nature of a change in the status of an accounts receivable, including the following:  In Forbearance or in Formal Appeals Process, In Foreclosure, In Wage Garnishment, Rescheduled, Waived/unwaived, Eligible for Referral to Treasury for Offset, Referred to Treasury for Offset, Eligible for Internal Offset, Eligible for Referral to Treasury or a Designated Debt Collection Center for Cross-servicing, Referred to Treasury for cross-servicing, Referred to private collection agency, Referred to Department of Justice, Offset, Suspended, Compromised, Written-off, Closed Out.

Mandatory

 

 

 

 

CORE – Reports

 

 

 

 

40

Provide the following ad hoc query interface features:  Graphical display of data sources, the ability to “point and click” on selectable table, data, and link objects for inclusion in a custom query, an active data dictionary to provide users with object definitions, the ability to share user developed query scripts with other authorized agency users, query optimization, and On-line help.

Value-Added

 

 

 

 

Property Management

 

 

 

 

41

Provide an audit trail for entries to a property record, including the identification of the individual(s) entering or approving the information and/or data.

Mandatory

42

Aggregate relatively homogenous assets into asset pools.  All assets in the asset pools have the same estimated useful life and the acquisition cost of each item in the asset pool would be the average cost of all items in the pool.  However, each item in the asset pool must have a separate property record and a separate agency-unique identification number.

Value-Added

 

 

 

 

Travel Requirements

 

 

 

 

43

Maintain adequate separation of duties (e.g., trip approval, travel voucher approval, and travel voucher payment).

Mandatory

44

Allow information in the system to be queried by field and viewed on-line to present specific data as requested.

Value-Added

45

Provide the capability to interface with the agency’s Travel Management Center (TMC) or appropriate Commercial Reservation System (CRS), effective
January 1, 2001.

Mandatory

46

Provide interface to electronic routing or mail system.

Value-Added

47

Provide for on-line funds validation.

Value-Added

48

Provide the capability to modify “HELP” facilities to meet specific requirements of the agency.

Value-Added

49

Provide for administering required access controls and security.

Mandatory

 

 

 

 

Seized Property Management

 

 

 

 

50

Calculate the time elapsed from petition receipt to petition ruling.

Value-Added

51

Calculate the time elapsed from seizure to forfeiture.

Value-Added

52

Calculate the time elapsed from forfeiture to disposal.

Value-Added

53

Calculate the time elapsed from equitable sharing request to sharing decision.

Value-Added

54

Calculate the time elapsed from forfeiture to equitable sharing disbursement.

Value-Added

55

Periodic calculation of trends in the ratio of property management and disposal costs to gross sales proceeds for all assets sold and comparisons of results to established management goals.

Value-Added

56

Periodic assessment of management control structure to ensure, to the extend possible, that seized property and forfeited assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of financial statements.

Value-Added

57

The system should provide the flexibility to accept data input from multiple media that recognize user agencies’ unique data input requirements.

Value-Added

58

The system should provide the capability to customize data input, processing rules, and edit criteria and to give agencies flexibility in defining internal operational procedures and supporting agency requirements.

 

Value-Added

59

The system should provide the capability, if necessary, to identify and process transactions from other systems that enter and update the standard seized property and forfeited assets system.

Value-Added

60

The system should provide the capability to subject all transactions from interfacing systems to the standard seized property and forfeited assets system edits, validations, and error-correction procedures.

Value-Added

61

The system should provide the capability to upload and download data in an interface environment.

Value-Added

62

The system should provide the flexibility to provide multiple-media output reports and recognize user agencies’ unique data output requirements.

Value-Added

63

The system should provide the capability to allow users to customize output for reporting and providing interfaces to other systems necessary to link financial and program results and meet agency requirements for external processing (e.g., general ledger posting, budget reconciliation and execution, cost accumulation).

Value-Added

64

The system should provide the capability to transmit information on the results of seizure transactions and forfeiture transactions to the core financial system requirements itemized in the Core Financial System Requirements for such purposes as generating requests for disbursements, updating the standard general ledger, generating obligation records, generating requests for funds transfer, and updating funds controls.

Value-Added

 

Appendix V

 

Management’s Response to the Draft Report

 

The response was removed due to its size.  To see the complete response, please go to the Adobe PDF version of the report on the TIGTA Public Web Page.