oversight

Personnel-Payroll System Checklist: Systems Reviewed Under the Federal Financial Management Improvement Act of 1996 (Exposure Draft) (Superseded by AIMD-00-21.2.3)

Published by the Government Accountability Office on 1997-12-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                                .




                     United States General Accounting: Office

                     Financial     Management          Series




December 1997        Personnel-Payroll
                     System Checklist
                     Systems Reviewed Under the Federal
                     Financial Management Improvement
                     Act of 1996




                     Exposure      Draft




GAO/AIMD-98-21.2.3
PREFACE


The Federal Financial Management Improvement Act (FFMIA) of 1996, requires, among
other things, that agencies implement and maintain management systems that comply
with federal financial management systems requirements. These requirements are
detailed in the Financial Management Systems Requirements series issued by the Joint
Financial Management Improvement Program (JFMIP) and in the Office of Management
and Budget (OMB) guidance referred to in those documents.

To help agencies review their financial management systems and assist auditors with their
responsibilities under FFMJA,’ we have developed eight checklists, which we are issuing
concurrently for comment as exposure drafts. Seven of the checklists reflect the system
requirements defined by JFMIP. The eighth checklist, based on the JFMIP framework
document, describes a single integrated financial management system and is primarily a
reference tool rather than a standard-setting document.

As more system requirements are issued, we intend to develop additional checklists.
When these checklists are issued in final form, they will be available on the Internet on
GAO’s Home Page (www.gao.gov).

Additional copies of the exposure draft of this checklist can be obtained from Room 1100,
700 4th St. NW, U.S. General Accounting Office, Washington, D.C. 20548, or by calling
(202) 512-6000. Please send comments by February 28, 1998 to Robert W. Gramling,
Director, Corporate Audits and Standards, Accounting and Information Management
Division, at

                       U.S. General Accounting Office
                       441 G Street NW, Room 5089
                       Washington, DC 20548




Assistant Comptroller General
Accounting and Information Management Division




‘The final form of this checklist will be included in GAO’s Financial Audit Manual.

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         .’




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                                                                                        !
CONTENTS


Preface                                                                                                      1

Overview                                                                                                   3
  Authoritative Guidance                                                                                   3
  How to Use This Checklist                                                                                3
  Agency System Architecture                                                                                 5

Requirements Checklist                                                                                     9
  Human Resource Data Function                                                                            11
  Personnel Processing Function                                                                           19
  Time and Attendance Processing Function                                                                 25
  Leave Processing Function                                                                               28
  Pay Processing Function                                                                                 32
  Report Processing/Reconciliation Function                                                               42


  Abbreviations

  CPDF     central personnel data file            a                r , ,, “‘3
  CSRA     Civil Service Reform Act of 1978                                                           i      “.
  EEO      equal employment opportunities
  FEGLI    federal employees’ group life insurance                          .r
  FFMIA    Federal Financial Management Improvement Act of,~<~+...-:“’
                                                                     1996               i ,I!,’    : !
  FLSA     Fair Labor Standards Act           ---.--~,k -N 1!.
  FPM      federal personnel manual                     ,*’  “) ,r’ ( I                 .,:’      I ,            (”
                                                                                                                      ‘:
  FTE      full time equivalent
  GSA      General Services Administration                     c‘*34
  JFMIP    Joint Financial Management Improvement Program
  MER      master employee record
  NOAC     nature of action codes
  NTE      not to exceed appointment
  OMB      Office of Management and Budget
  OPM      Office of Personnel Management
  PMR      payroll master record
  RIF      reduction in force
  SGL      Standard General Ledger




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I   GAO/AIMD,98-21.2.3   - Proposed Personnel-Payroll   Checklist   (12/97)
OVERVIEW


The Federal Financial Management Improvement Act (FFMIA) of 1996, requires, among
other things, that agencies implement and maintain financial management systems that
comply with federal financial management systems requirements. These system
requirements are detailed in the Financial Management Systems Requirements series
issued by the Joint Financial Management Improvement Program (JFMIP) and Office of
Management and Budget (OMB) ~A-127,LFinanciaI              Management Svstems. The
JFMIP requirements documents identify (1) a framework for financial management
systems, (2) core financial systems requirements, and (3) 16 other systems supporting
agency operations. Figure 1 illustrates how these elements fit together in an agency
systems architecture.

Figure 1: Agencv Svstems Architecture




Source: JFMIP Federal Financial Management System Requirements documents.

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To date, JFMIP has issued the framework      and core documents ,and 6 of the 16 systems
identified in the architecture.2

GAO is issuing this and seven other checklists that correspond to the JFMIP documents
as part of its Financial Management Series. GAO will issue other checklists as additional
systems requirements are defined.

Authoritative    Guidance      ”

OMB Circular A-127, and OMB’s Imnlementation Guidance for the Federal F!inancial
Management Imnrovement -Act (FFMIA) of 1996, issued. September 9, 1997,,provide the
basis for assessing compliance with “t’l;e’pI%ifi ‘requirement for agencies to implement
and maintain financial management systems that comply substantially with federal
requirements. OMB’s ,September 1997simplementation guidance identifies various criteria
that an agency must meet to be in substantial compliance with these requirements.

The source of all the questions in this checklist. is the Joint Financial Management
Imnrovement Program Federal Financial Management Svstem Requirements Personnel-
Pavroll Svstem Reauirementsf(PPMRS-2,’     ‘1“’ l$y 1990);
                               ..-_-“““-,,cI..-
Purpose     of This Guide   and How to Use It
                             ,. .’
The purpose, of this document is to provide a checklist to assist (1) agencies in
implementing and monitori&their          systems and (2) management and auditors in
reviewing the systems to determine if they are in.substantial compliance with FFMIA.
The checklist, th@IFlVIIP ‘source document, and the two previously mentioned OMB
documents (Circular A-127, and the September 9, 1997 implementation guidance) should
be used concurrently by experienced         staff.      .’
                              ., ,‘ .’ ’ . .
OMB’s 1997 implementation guidance provides indicators for chief financial officers and
inspector generals to assist them indetermining &hether the agency’s financial
management systems” substantially comply with federal financial management systems
requirements. ‘Filling out this checklist will -allow agencies to’ systematically determine
whether specificsystems! requirements are being met. Agencies canassess the
significance of any noncompliances~ in .determining substantial compliance by considering
the’. ‘5ndicators” in OMB’s 1997 implementation guidance,. For example, the annual agency
assurance statement issued pursu,ant to section 4 of the Federal Managers’ Financial-       -
                          ‘
                                         ,
                                     .;
2Thus far, the series includes the (1) Framework for Federal Financial Management
Svstems, (2) Core Financial Svstem Reauirements, (3) Inventorv @stem Reauirements, (4)
Seized/Forfeited Asset @stem Reauirements, (5) Direct Loan Svstem Reauirements, (6)
Guaranteed Loan &stem ,Reauirements, (7) Travel Svstem Reauirements, (8) and
Personnel-Pa%011 ‘&stem’ Reauirements.

Pzige’ 6                            GAOLAIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
Integrity Act is one of those indicators. Agencies can use GAO’s checklists to help
determine annual compliance with the section 4 requirement.

The following Personnel-Payroll System Requirements section contains a brief narrative
followed by the checklist, which is organized by functions contained in the source JFMIP
document.

In the checklist, two columns follow each question. Use the first column to answer each
question “Yes, I’ “No,” or “NA.” Use the second column to explain your answer. A “Yes”
answer should indicate that the agency’s system or systems provide for the capability
described in the question. For each “Yes” answer, briefly describe how the system(s)
contain the capability and 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 second
column should provide an explanation and a reference to the supporting documentation.
Such explanations could include the following: (1) The agency is working on modifying
or implementing its system(s) to have the capability available in subsequent years. (2)
Management believes the ‘capability is not cost effective and will not enhance the systems’
ability to manage operations. Refer to any cost-benefit studies that support such
explanation. If there are none, provide a full explanation.

Not every guide may apply to an agency. Further, while a guide may be applicable to an
agency, certain questions within the guide may not be applicable. Answer such
nonapplicable. question(s) with an “NA” and provide an appropriate explanation in the
second column.




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PERSONNEL-PAYROLL                 SYSTEM      REQUIREMENTS


The personnel-payroll system requirements document helps agencies meet government
requirements by identifying the requirements needed (1) by the human resource function
to initiate and maintain the compensation of employees; and (2) by the payroll function to
link it to the financial management systems consistent with laws and regulations.

The six functions of the tpersonnel-payroll system are discussed below.
                                                             :




 1.      Human Resource Dam consists of ,dat’a collection and maintenance activities. The
         data collection activity collects and, edits’ all employee-related and/or position-
         related data needed to process pay and to support the personnel activities of the
         standard personnel/payroll system. The’maintenance ,activity maintains current and
        ,historical personnel, pay, leave, ~time and attendance, and retirement data for each
         employee. It supports both payroll-related data and personnel-related data in a
         logically, integrated database and/or interfaced system. (The checklist questions for
         this area are drawn from ,pp. 9-12 of the source document.)

 2.     Personnel Processing processes personnel actions in accordance with OPM
        Onerating Manual, “The Guide to Processing Personnel Actions.” Provides a variety
        of reporting data for use in advice and consultation to line managers and
        employees, as well as in required external reports such as Equal Employment
        Opportunities (EEO) compliance and training reports. Provides daily certified SF-
        50, “Notification of Personnel Action,” data for posting to the payroll master record.
        (The checklist questions for this area are drawn from pp. 13-15 of the source
        document.)

 3.     Time and Attendance Processing collects time and attendance and labor-related
        data and edits these against the Master Employee Record (MER) and reference
        tables on a daily, weekly, and/or biweekly basis as required. (The checklist
        questions for this area are drawn from pp. 16-17 of the source document.)

 4.     Leave Processing processes and controls leave advances, accruals, conversions,
        transfers, usages, and forfeitures for each employee. (The checklist questions for
        this area are drawn from pp. 18-19 of the source document.)

 5.     Pav Processing calculates gross pay and allowances, deductions, employer
        contributions, and net pay for each employee. Because of the sensitivity of payroll
        disbursements and the need for payroll certification, pay processing must be
        considered a standard function to be controlled in a more central manner. (The
        checklist questions for this area are drawn from pp. 20- through 24 of the source document.

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Personnel-Payroll            System ReqiGrements                            ‘,

  6.    Renort Processing/Reconciliation accesses, manipulates, and formats data as
        required to satisfy accounting, regulatory, and managerial information
        requirements, including required reporting to the Office of Personnel Management
        (OP%I) to the Central Personnel Data File (CPDF) and through the SF 113A,
        Monthly Report of Federal Civilian Employment, and SF 113G, Monthly Report of
        Full-Time Equivalent (FTE) Work-Year Civilian Employment. Provides payroll
        system data for comparison and reconciliation with disbursing and accounting
        systems to ensure accuracy and completeness. (The checklist’ questions for this
        area.are <drawn from pp. 25-27 of the source document.)

 The checklist questions follow the, JFMIP source document. It should be noted that not
 all questions will apply in all situations and, as .with the use of any :checklist, professional
judgmentshould .be exercised. (Using the JFMIP source document; along with the two
previously mentioned OMB documents will help ensure that the .user is cognizant of the
 background information and definitions necessary to fully understand the questions.




Pa&10            ‘,.    ‘.    ‘,l   ’ GAWIMD:98-21.2.3   - Proposed Personnel-Payroll   Checklist   (U/97)
Personnel-Payroll           System       Requirements


   Human    resource     data function           Yes/no                      Explanation
                                                   NA

  Does the system:
                                                                                ,
   1. Maintain,, for example, the           ,I
      following historical data to
      facilitate reporting and prior-
      period adjustment of data:

     -- a pay history showing gross
        pay by type, deductions by
        type, and net pay ‘for each
        pay period?
     - a time and attendance
        history showing hours or
        days worked by type of pay
        for each pay period?
     -- a leave history showing
        beginning balances, leave
        accruals, leave usages, and
        ending balance by type for
        each pay period?

     Optional historical data may
     include: awards and training
     information, by date; nature-of-
     action changes for each
     employee, by date; and salary
     charges by assignment or
     activity, organization,
     geographic location, or other
     cost accounting centers.




pageli     .’       .’                   GAO/AND-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (U/97)
Personnel-Payroll           System        Requhhents


  Human       resource   data function           Yes/no                     Explanation’
  ,,                                               NA                  _.

  2.      Accept and edit position-
          related data, if required by
          agency management, for use
          in controlling the overall
          agency ceilings as established
          by dollar, Full Time
          Equivalent (FTE), and
          position limitations?

  3.      Provide for erroneous input
          to be corrected immediately
          or at a later date from a
          suspense file that has
          preserved the input as
          initially entered and edited?




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Personnel-Payroll           System       Requirements


   H&an       resource   data function          Yes/no                       Explanation
                                                  NA
  4.      Accept and edit employee-
          related data, based on
          effective date and
          nature-of-action codes
          (NOAC), in accordance with
          OPM Operating Manuals,
          ‘The Guide to Processing
          Personnel Actions” and
          “Federal Workforce Reporting
          System,” and.*5-C..,E.R..Part
          55      The effective date
          establishes when transactions
          are to be effective, including
          the service computation date
          for purposes of retirement,
          leave accruak,~ promotions,
          and within-grade increases,
          and specific dates for which
          changes in deductions are to
          be effective.

  5.      Accept and edit payroll-
          related data, as required, in
          accordance with Title 5 and
          related regulatory guidelines?

  6.      Accommodate the entry of
          multiple personnel actions
          for an employee in one pay
          period, and/or on the same
          day?




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Personnel-Payroll           System       Requirements


   Human      resource   data function           Y&/no                        Explanation
                                                  NA

   7. Accept and edit award data,
      EEO data, and employee
      training data, if required?

   8.     Establish new, deactivate
          existing, and modify existing
          personnel actions whenever
          appropriate and implement
          OPM Operating Manuals,
          “The Guide to Processing
          Personnel Actions” and
          “Federal Workforce Reporting
          System” changes in a timely
          fashion?

   9. Automatically adjust date
      fields (e.g., service
      computation date, not-to-
      exceed dates) based on
      processing of personnel
      actions?

  10. Accept edited position-related
      data, as required, for use in
      managing the organization
      within ‘established dollar,
      FTE, and position           ’                                  : /,
      limitations? Post this data to
      the payroll master record,
      (PMR)?




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Personnel-Payroll        SystemJkquib-aents                               ..              .‘.      .-. ~.


   Human   resource   data function         -Yes/no                      Explanation                 I.
                                               NA

  11. Accept edited employee- j
      related data, based on NOAC
      and effective date, in
      accordance with OPM
      Operating Manuals, “The
      Guide to Procesikg
      Personnel Actions” and
      “Federal Workforce Reporting
      System,” and 5 C.F.R. Part
      530? Post this data to the
      MER?

  12. Accept edited payroll-related
      data in accordance with Title
      5 and related regulatory
      guidelines for posting to the
      MER?

  13. Update all related employee
      records (including salary
      rate, leave accrual, and
      expense records) based on
      each personnel action
      transaction?
           _. _
  14. Recognize, through the use of
      effective dates, whether a
      transaction requires current,
      future, or retroactive
      processing and generate the
      appropriate action and
      payment?



‘Pake 15                              GAOMMD-98-21.2.3   - Proposed   Personnel-Payroll         Checklist   (E/97)
Personnel-Payroll       System           Requiiemeits                 ..                          ,‘,I



  Human,resourck     data function             Yes/no       ”                  Explanation
                                                 NA

  15. Update all affected employee
      records to reflect across the
      board entitlement and/or
      deduction changes?

  16. Generate a checklist report
      for each separating or
      transferring employee to
      ensure proper procedural
      treatment?

  17. Calculate projected am-u.@
      leave balances?

  18. Store lump sum leave hours
      to be paid to separating
      employees? Reduce annual
      leave balances to zero after
      lump sum payments are
      made?

  19. Update the CPDF with both
      activity and status reporting?

  20. Update a time history      data-
      base each pay period      to
      include current-period     and
      prior-period adjusted    time
      information for each
      employee?




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Personnel-Payroll         System       Requirements


    Human   resource   d&a function           Y&/no                       Explanation
                                               NA

   21. Update a pay history data
       base each pay period to
       include detail, pay-period,
       quarter-to-date, and year-to-
       date pay data for each
       employee?

  22. Update retirement data
      including name, service
      history, and fiscal history for
      each employee? Maintain
      separate records for military
      (post-1956) and &i&n
      (re-employed annuitant)
      deposits? Provide cumulative
      agency employment totals?

  23. Update leave data to reflect
      leave wages and balances for
      each employee?

  24. Allow the payroll office to
      add a new pay line manually
      or to change or delete an
      erroneous pay line, prior to
      calculation and disbursement
      of payroll? (Each pay line is
      identified by the pay period
      in which it was calculated
      and by the pay period to
      which it applies (the
      “effective” pay period)).



Page ,I7                               GAOMMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
Personnel-Payroll        System Requirements


  Human   resource    data function           Yes/no                       Explanation                 :[
                                                NA

 25. Update appointment
     limitation balances, health
     benefit rates, and Federal
     Employees’ Group Life
     Insurance ((FEGLI) codes?

 26. Maintain historical data by
     pay period and transactions
     by effective date to facilitate
     prior-period adjustment
     processing?

 27. Maintain “calendar year-to-
     date” and “fiscal year-to-date”
     balances for targeted
     deductions and payments in
     order to stop action when the
     target is realized?




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          Personnel-Payroll           System Requirements                 q
                                                                              /
    I




            Personnel    processing    functiofi          ,Y&ho                         Explqnation
                                                            NA

           Does the system:                                                                .,

            1.   Provide information needed
                 to establish, maintain, and
                 abolish positions?                    .I,.             ,_, .,
                                                                             ~
            2.   Provide management
                 information data (e.g., open                                 ,;
                 positions, positions filled by
                 part-time employees, etc.)?

                                                                                   ,’
            3.   Support position reviews to
                 determine if restructuring
                 positions could improve
                 efficiency of operations,
                 enhance EEO, and/or support
                 management goals?
                                            :
            4.   Maintain records on
                 applicants (from both within
                 and outside the government)?

            5.   Track internal recruitment
                 and competitive (merit) and
                 noncompetitive promotions
                 and transfers?

            6.   Track external recruitment
                 and expert/consultant
                 recruitment?




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          Personnel-Payroll                System      \Requir,ements


            Personnel   .processing         function          Yes/no        ’                  Explanation
                                                                NA

            7.   Maintain current
                 organizational component
                 identifiers for reporting to
                 OPM’s CPDF?

            8.   Provide the, capabilities to,
                 process employee-related
                 data, based on assigned
                 position, NOACs, and
                 effective date, in accordance
                 with OPM Operating
                 Manuals~ “The Guide to :                            :
                 Processing Personnel         :
                 Actions” and “Federal        :                                     I
                 Workforce Reporting
                 System,” and 5 C.F.R. Part
                 530?

            9.   Process appointments and
                 position changes (e.g.,    ’
                 promotions, reassignments,
                 changes to lower grade)?

           10. Process incentive awards as
               a result of personnel actions
               for both current and prior
               period effective dates,
               ensuring that duplicate
               awards are not processed?




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                                 . ..~--                                                                                            1
          Personnel-Payroll          System      Requirements


            Personnel   processing    function            Yes/no                              Explanation
                                                            W

           11. Process all suspense actions
               of “not-to-exceed” (NTE)
               appointments? Provide the
               capability to support (1)
               termination of grade
               retention and details and (2)
               conversion to lower grade
               after temporary promotions?
               Provide the data for pending                                                  ‘,
               NTE terminations, tenure
               changes, ends of
               probationary periods, and
               ends of within-grade waiting                        .‘<,.        ‘,,
               periods?
                                                   .,..
           12. Process completed adverse
               actions?
                                             ._
           13. Process resignations and :
               retirements; generate data for
               SF 50, “Notification of
               Personnel Action;” SF 2806,
               “Individual Retirement
               Record-Civil Service
               Retirement System;” SF 2807,                                                       .i              .
                                                                           ~,          :
               “Register of Separations and
               Transfers;” and SF 1150,
                                                                                      ~, :
               “Record of Leave Data”?
                                                                            :<‘,

           14. Generate reemployment
               priority data and retained-
               grade program data?



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          Personnel-Payroll           System      Requirements


            Personnel    processing    function          Yes/no                     Explanation
                                                           NA

           15. Provide the capability to
               support pending performance
               evaluations?

           16. Provide the capability to
               support employee benefit ’
               entitlements (life, health, and
               retirement) in response to
               employee inquiry or policy
               changes?

           17. Support retirement estimates
               for requesting employees?

           18. Produce union dues
               withholding information?

           19. Provide union data on
               retention register, merit
               promotion lists, and
               reductions-in-force?

           20. Produce data on union
               employee activity including
               union steward time and
               union employee time
               involved in adverse action,
               grievance, and appeals,
               processing?




Page 22                                           GAOMMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll          System      Requirements


            Personnel   processing    function         Yes/no                      Explanation         ’
                                                         NA

           21. Provide the capability to
               compile SF 182, “Request,
               Authorization, Agreement and
               Certification of Training,”
               data for annual reporting to
               OPM?

           22. Generate training data from
               SF 182s for management
               information support?

           23. Generate training data related
               to EEO training?

           24. Provide information to
               support quarterly, annual,
               and ad hoc reporting to OPM,
               Equal Employment
               Opportunities Commission,
               and other reporting
               authorities?

           25. Provide information to
               support a wide variety of
               comparative studies using
               human resource data to
               identify discriminatory
               trends; generate data from
               such sources as the applicant
               supply file and best-qualified
               lists?




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          Personnel-Payroll          System Requirements


            Personnel   processing    function          Yes/no                       Explanation
                                                          NA

           26. Provide information to
               support recruitment
               procedures reviews to
               determine whether women,
               minorities, and handicapped
               individuals are included in
               applicant pools?

           27. Provide information to    ’
               support position reviews?

           28. Provide the capabilities to
               compute retirement benefits
               as well as to anticipate
               retirem&tts and track
               personnel through the
               process?




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           Personnel-Payroll        System    Requiremeuts


                   Time and attendance
                    processing

            Does the system:
                               function
                                                     ,Yes/no
                                                       NA
                                                                                 Explanation
                                                                                                                    I
             1.   Support the collection of
                  time and attendance data
                  based upon au established
                  tour of duty, including
                  alternative work schedule/
                  flexitime information? This
                  requires, as a minimum, only
                  positive acknowledgement
                  from the timekeeper that the
                  employee worked the
                  established tour and that                                           :
                  time and attendance data are
                  available for supervisory                                           /,
                  review and approval.
                                                                                                         /
                                                                  iI        .,
             2.   Support the collection of
                  work hours, leave hours, and
                  all other pay-related hours, as
                  well as labor-related hours if
                  required by agency
                  management, from one
                  source document for each
                  employee?

             3.   Support the collection of,
                  labor distribution hours by
                  the classification code
                  structure defined in the core
                  requirements document?




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          Personnel-Payroll        System Requirements                                                  i


                  Time and attendance                 Yes/no                      Explanation
                   processing function                  NA

            4.   Provide for the collection of
                 time and attendance data on
                 a daily, weekly, biweekly,
                 semimonthly, and/or monthly
                 basis?

            5.   Calculate and adjust weekly
                 hours based on E&i~bor,
                 Standards Act (FLSA)
                 requir~~~~m*‘ww”“ul


            6.   Accept time and attendance
                 data through various
                 processing modes?

            7.   Support the correction of,
                 current- and prior-pay period
                 time and attendance records?

           8.    Input time spent by
                 employees who work
                 temporarily in a higher
                 classification (a) within the
                 department but in different
                 organizations or work centers
                 or (b) in other departments?

           9.    Provide for the capture of
                 time and attendance data in
                 fractions of hours?




Page 26                                        GAO/&D-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (W97).
          Personnel-Payroll       System       Requirements


                  Time and attendance                 Yes/no                      Explanation
                   processing function                  NA

            10. Generate a hard copy time
                and attendance report?

            11. Provide the capability to
                receive electronic approvals
                from authorized supervisory
                personnel and release data
                for further system
                processing?




Page 27                                        GAO/AIMD98-21.2.3   - Proposed Personnel-Payroll   Checklist   (12/97).
I




              Personnel-Payroll           System     Requirements


                     Leave   processing   function          Yes/no                        Explanation
                                                              NA

                1. Ensure that leave taken is
                   supported by a sufficient
                   balance? Insufficient leave
                   balances are automatically
                   converted based upon an
                   established leave priority
                   scheme and, when
                   appropriate, specific
                   management review (e.g., to
                   determine advance leave,
                   leave without pay, or absence
                   without leave).

                2.    Each pay period, accrue each
                      type of leave that can be
                      accrued and to which an
                      employee is entitled, based
                      on entitlement established in
                      the human resources
                      function, including partial
                      accruals and carryovers?

                3.    Process variable leave
                      accruals for part-time
                      employees? Leave accruals
                      for part-time employees are
                      based on actual hours in a
                      pay status.




    Page 28                                          GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (12/97)
          Personnel-Payroll           System, Requirements


                 Leave   processing   function          Yes&o                      Explanation
                                                          NA

            4.    Determine compensatory
                  time to be forfeited or
                  compensatory hours to be
                  paid based on predetermined
                  elapsed time limits for
                  compensatory time earned
                  and the maximum earning
                  ceiling for combined leave
                  and earnings?

            5.    Generate detailed audit trail
                  and control data to ensure
                  that all reported leave hours
                  have been processed
                  accurately and that the hours
                  used in pay calculation are
                  correct?

            6.    Track and report job-related
                  injury time (continuation of
                  pay>?




Page 29                                          GAOMMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll         System       Requirements


                 Leave’ procedng    function            Yes/no                       Explanation
                                                   ,.     NA

            7.    Interface with the core
                  financial system or another
                  designated system and alert
                  that system to establish
                  receivables or follow-up on
                  types of leave that may carry
                  to the government employee
                  indebtedness, including
                  health and life insurance
                  premiums for employees on
                  approved leave without pay
                  and certain jury duty fees
                  while on court leave?

            8.    Provide for fiscal year-end:
                  and calendar year-end
                  processing in accordance
                  with established guidelines?

            9.    Provide for year-end leave
                  forfeitures processing using
                  maximum carryover amounts
                  maintained in the human
                  resource function?
                             ‘.

           10. Modify leave accruals for
               employees who change leave
               systems, biweekly
               tours-of-duty, or from full-
               time to part-time?




Page 30                                          GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (12/97).   j
                                              --




          Personnel-Payroll        System Requirements


              Leave   processing   function               Yes/no                       Explanation
                                                            NA

           11. Determine all work and leave
               hours to be paid for use by
               the pay processing, report
               processing/reconciliation, and
               human resource data
               maintenance functions?

           12. Process both current- and
               prior-period leave
               transactions on an effective
               pay period basis?

           13. Provide for recomputing
               leave balances due to prior-
               period hour adjustments or
               retroactive entitlement
               changes for each period
               subsequent to the effective
               period of the change in the
               following order: (1)
               retroactive entitlement
               changes and then (2) prior-
               pe’riod hour adjustments?




Page 31                                            GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll        System    Requirements


                 Pay processing   function          Yes/no                         Explanation
                                                      NA

           Does the system:

            1.   Process both current-period
                 and prior-period adjustments
                 as an integral part of the ’
                 payroll cycle?
                               .                                 .
            2.   Compute pay according to’                                     .
    :
                 the time worked and/or leave
                 taken, based on data       -’
                 approved by the relevant
                 supervisor?,.

   ‘.       3.   Compute pay of various types             !
                 (e.g., entitlements for
                 employees eligible for foreign
                 service allowances, special                         ,I./,
                 pay and retention pay for                            ,A.,      I’
                 commissioned officers,
                 awards for SES, merit pay,
                 cash awards, etc.)?                                                       ’ _a

                                                                                                 ,.
            4.    Compute earnings amounts
                 ‘for partial pay periods when        ”                                               :,
                  entitlement dates do not
                  coincide with pay period
                  beginning and ending dates?
                  Process earnings adjustments
                  on a begin-date/ end-date
                  basis?




Page 32                                      GAO/AIMD~98-212.3   - Proposed Personnel-Payroll         Checklist   (lZ97)   ,,!
          Personnel-Payroll         SystemdZequiremetits:                 a        ’


                 Pay -processing   function              Yes/no                           Explanation
                                                           NA

            5.   Support adjustments and
                 regular calculations that
                 cross fiscal and/or calendar
                 years and provide proper
                 information to the core
                 financial system?

            6.   Initiate the pay calculation
                 cycle only after time and
                 attendance data have been
                 certified and leave has been
                 processed?

            7.   Calculate overtime based on
                 FLSA and Civil Service
                 R&form    AC-           “’(CSRA)
                    ,,:_,~,,,a~.r”wxnr:~,~’
                 reqmrements?

            8.   Calculate premiums and
                 differentials as a percentage
                 of base pay and set dollar
                 amounts?

            9.   Calculate shift differential’
                 amounts based on hours
                 actually worked and certified
                 by a supervisor?

           10. Accommodate processing of
               supplemental pay actions?




Page 33                                          GAO/AIMD-98-21.2.3   - Proposed       Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll        Systeni.~Requirem6~tits.,           .; ‘,’ ..           : :      :         !


                Pay :processing   function        ‘. Y&ho                          Explanation-
                                                      NA

           11. Provide for percentage
               computation of deductions
               (e.g., 20 percent federal taxes
               on awards)?

           12. Support unemployment
               compensation for federal
               employees processing and
               responding to 931 requests?

           13. Record gross pay,
                deductions, and net pay
                generating information to
               update other functions and
                other systems, as
               appropriate, including the
                Standard General Ledger
               maintained in the core
               financial system?

           14. Accept allowance and
               premium pay entitlement as
               set dollar amounts or
               comptite them as percentages
               of pay without some or all of
               the entitlement, as defined by
               law and regulation?




Page 34                                      GAOMMD-98-21.2.3   - Proposed Personnel-Payroll      Checklist       (E/97)
              Personnel-Payroll       System     Requirements

                                       -
                    Pay processing   function           Yes/no                     Explanation
                                                          NA
                                                                                              .
               15. Calculate the following
                   deduction types for each
                   employee:

                    - mandatory deductions
                       (e.g., federal, state, local,
                      and PICA taxes)?
                    - voluntary deductions (e.g.,
                      life insurance, health
                      insurance, thrift savings
                      deductions, allotments, and
                      bonds)?
                    - involuntary deductions
                      (e.g., IRS levies and
                      administrative debt
                      collections)?

               16. Provide the capability to
                   handle deductions that apply
                   in various pay periods?

               17. Adjust taxable gross pay by
                   deducting untaxed items
                   (e.g., thrift saving
                   deductions) and civil service
                   retirement annuity offsets?




                          ,                      GAOMMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
Page 35   :
          Personnel-Payroll       System     Requirements


                Pay processing   function           Yes/ho                          Explanation               .’
                                                      NA             ’

           18. Support mass rate changes
               and individual entitlement
               changes for current and
               retroactive processing? Offset
               advanced sick leave balances
               against annual leave
               balances? Accommodate,
               waivers of collections for
               leave advances?

           19. Compute the maximum
               variable levy deduction based
               on available net pay and the
               outstanding amount owed
               IRS?
                                                                         .” ,. ,.
           20. Prorate insurance deductions
               for part-time, seasonal, and
               newly hired employees using
               the “four-day rule?”

           2 1. Accelerate deductions for
                employees paid an annual
                salary in less than 1 year
                (e.g., teachers)?

           22. Compute deductions,
               employer contributions, and
               net pay based on manually
               calculated earnings amounts
               (e.g., supplemental pay for
               commission or tip earnings)?



Page 36                                      GAO/AIMD-98-21.2.3   - Proposed Personnel-Pay-roll   Checklist        (B/97)
          Personnel-Payroll        Systein     Requirem&ts

                                  .‘.




                Pay processing   function           Yes/no                      Explanation
                  .                                   NA

           23. Calculate deductions
               specified in chapter 5, Title 6
               of GAO’s Policv and         ,,
               Procedures Manual for
               Guidance of Federal
               Agencies, using tables and
               making such computations as
               necessary and providing for
               such things as

                - limitations on the
                   maximum amount of salary
                   subject to certain
                   deductions?
                -- limitations on the
                   maximum amount allowed
                   for certain other
                   deductions?
                - adjustments of taxable
                   gross pay for certain
                   purposes by deducting
                   untaxed items, including
                   penalties, before
                   computing taxes?
                - proration of certain
                   deductions for part-time or
                   seasonal employees?

           24. Subtract the deductions
               calculated in the order of
               precedence provided for in
               GAO’s Title 6 while ensuring
               that net pay is not negative?



Page 37                                      GAOMMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll        System     Requirements


                Pay- processing   function          Ye&o                         Explanation                 :’
                                                      NA

           25. Determine when a bond may
               be issued given its
               denomination per, pay                                                :
               deduction? (The process for
               setting bond issuance dates
               and issuing bonds may be
               accomplished by systems
               outside the pay system.)

                                                                                                             ~:
           26. Deduct some items in every
               pay period and others in
               selected pay periods only?

           27. Offset the dollar amount of
               advanced leave balances
               (computed at the rate of pay                :
               in effect when the leave was
               taken) against the dollar
               amount of final net pay and
               any unused annual leave
               (based on the current pay
               rate) on termination of an
               employee from federal
                                                                                          :                 ,.
               employment?

                                                                                        a
           28. Offset the dollar amount of
               other receivables owed the                                                                   .’
               agency against final net pay
               or, if applicable, lump sum
               annual leave payments on
               separation from the agency?




Page 38                                      GMYAIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist         (E/97)   ,
          Personnel-Payroll       System     Requirements


                Pay processing   function       I   Yes/no                    Explanation
                                                      NA

           29. Generate payment for
               severance pay?

           30. Accommodate various
               methods of payment (e.g.,
               electronic funds transfer/
               direct deposit, home leave,
               etc.)?

           31. Generate supplemental
               payments and recertified
               checks?

           32. Generate payment to
               beneficiary of unpaid
               compensation?

           33. Provide for electronic fund
               transfers of amounts
               withheld to appropriate
               organizations?

           Does the system provide the              ..
           following outputs:

           34. information on gross pay by
               type, deductions by type, and
               net pay by pay period, made
               available for retention?




Page’39                                      GAWAIMD-98-21.2.3 - Proposed Personnel-Payroll Checldist (E/97)
          Personnel-Payroll          System    Requirements


                   Pay processing   function          Yes/no                      Explanation
                                                        NA

           35. Magnetic tapes or other
               media to be sent, with any
               accompanying reports, to
               Treasury or other authorized
               disbursing offkers for
               disbursement, with any
               accompanying reports of
               deductions, net pay, and
               employer contributions to,
               intended payees?

           36. Magnetic tapes or other
               media to be sent to Treasury
               for issuance of U.S. savings
               bonds?

           37. Magnetic tapes or other
              ‘. media transmitting
                 information on federal
                 retirement thrift plan
                 contributions and loan
                 repayments to be sent to the
                 Thrift Investment
                              ,.. ,,.,. Board?
                    I

           38. Employee earnings
               statements detailing the
               composition of gross pay,
               deduction, and net pay for
               the pay period and year to
               date?




Page 40        ’          ’                    GAOAIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (E/97)
          Personnel-Payroll       System     Requirements


                Pay processing   function           Yes/no                       Explanation
                                                      NA

           $9. Information on the transfer
               of dues withheld for labor
               organizations?

           40. Information to pass to the
               core financial system and
               cost accounting modules to
               update fund balances with
               Treasury and other assets,
               expense and liability
               accounts, appropriations and
               other cost centers for the
               payroll, including employer
               contributions?

           41. Information made available
               to other functions to generate
               internal ‘and external payroll
               reports not created directly
               in the pay processing
               function?




Page 41                                      GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (B/97)
               Personnel-Payroll         System      Requirements


                         Report processing/               Y&/no                        Explanation
                      reconciliation  function              NA

                Does the system:

                 1. Produce reports required by
                    Treasury, IRS, Social Security
                    Administration, Department
                    of Labor, OPM, and OMB?
                    Produce reports for state and
                    local taxing authorities at
                    required intervals?

                 2.   Produce all reports and
                      vouchers necessary to
                      recognize payroll expenses,
                      establish related receivables
                      (e.g., administrative debts),
                      and disburse all related
                      payments? Produce
                      supporting detail registers or
                      subsidiary ledgers?

                 3.   Produce managerial reports
                      to facilitate monitoring of
                      personnel costs, leave
                      authorization, and personnel
                      actions by personnel/payroll
                      staff members and by
                      operational supervisors or
                      managers?




-1
     Page 42                                      GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (U/97)
          Personnel-Payroll         System     Requirements


                    Report processing/           ’    Yes/no                        Explanation
                 reconciliation  function               NA

            4.   Generate, as an option,
                 tickler reports for
                 management (e.g., pending
                 NTE terminations, pending
                 performance evaluations,
                 etc.)?

            5.   Generate required reports-SF
                  1150, “Record of Leave Da;ta,”
                 SF 2806, “Individual
                 Retirement Record-Civil
                 Service Retirement System;”
                 and SF 2807, “Register of
                 Separations and
                 Transfers”-for separating or
                 transferring employees with
                 the next regular payroll?

            6.   Generate Monthly Report of
                 Federal Civilian Employment
                 (SF 113A) and the Monthly
                 Report of Full-Time
                 Equivalent (FTE) Work-Year
                 Civilian Employment (SF
                 113G) to OPM?

            7.   Provide for tax deduction
                 reporting, reconciling, and
                 correction processing for
                 each taxing authority?




Page 43                                        GAO/AIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (U/97)
          Personnel-Payroll         System       Reqtiikemeds


                    Report processing/       ’          Yes/no                      Explanation
                 reconciliation  functiqn                 NA

            8.   Provide the information to
                 analyze detail pay
                 transactions and establish
                 each as either a disbursement
                 or as a debt due the
                 government?

            9.   Derive summary totals of
                 earnings, deductions,
                 contributions, and paid hours
                 for control purposes and to
                 facilitate reporting?

           10. Provide disbursement
               voucher data for verification
               and certification of the
               payroll process?

           11. Generate reports of pay and
               benefit transactions required
               by the agency core financial
               system?

           12. Generate reports on the use
               of various ,methods of
               payments (e.g., check, direct                                                                     ‘.
               deposit/electronic funds
               transfer, etc.)?




Page 44                                          GAO/AIMD-9g2i.2.3   - Proposed Personnel-Pay-roll   Checklist        (E/97)
                                  ----_.-... .^.




          Personnel-Payroll         System         Requirements


                    Report processing/                   Ye;:                                 Explanation
                 reconciliation  function

            13. Generate accounting
                transactions for accruals of
                pay and benefits? (This
                process is to provide for
                reversals and accruing pay
                and benefits on other than a
                monthly basis.)

            14. Provide a means for                                   I
                correcting accounting
                transactions for an employee
                for one or more past pay
                periods generating adjusting
                accounting transactions to                                .’
                reverse the improper charges
                and record the correct ones?
                                                                                                       I

            15. Notify agency payroll and
                personnel office staff of
                incorrect or missing data?

            16. Compile employee data
                related to health insurance                                                      ..,
                enrollment for validation
                purposes?
                                                                                                       ,::

            17. Store audit trail data in the
                standard personnel/payroli
                data files?




Page 45                                            GAOMMD-98-21.2.3            - Proposed Personnel-Payroll   Checklist   (B/97) \r,
          Personnel-Payroll        System      Requirements


                    Report processing/              Yes/no                      Explanation
                 reconciliation  function             NA

           18. Generate detail registers or
               subsidiary ledgers that
               support all vouchers,                                I
               accounting entries, and
               disbursements authorized by
               the payroll office?

           19. Provide a report for health
               benefit deductions not taken
               (e.g., for an employee on
               leave without pay)?

           20. Provide a report of employee
               debt caused by prior-period
               adjustments or current-period
               computation to be used in
               administrative collection?

           21. Provide an output matrix of
               reports that describes report
               by title, purpose, frequency,
               distribution level, and the
               media used to distribute?

           22. Generate retention records
               for Reduction in Force (RIF)
               based on competitive
               position, tenure, and
               retention requirements?




Page 46    /.                               GAOAIMD-98-21.2.3   - Proposed Personnel-Payroll   Checklist   (12/97)