Federal Financial Management System Requirements JFMIP-SR-99-5 April 1999 Whatis JFMIP? The Joint Financial Management Improvement Program (JFMIP) is a joint and cooperative undertaking of the U.S. Department of the Treasuly,,the General Accounting Ofice, the Office of Management and Budget, and the Of&e of Personnel Management, working in cooperation with each other and other agencies to improve financial management practices in government. The Program was given statutory authorization in the Budget and Accounting Procedures Act of 1950 (31 USC 65). Leadership and program guidance are provided by the four Principals of the JFMIP-- Comptroller General of the United States, Secretary of the Treasury, and the Directors of the OffIce of Management and Budget, and the Office of Personnel Management. Each Principal designates a representative to serve on the JFMIP Steering C&rnittee, which is responsible for the general dkection of the Program. The JFMIP Executive Director, and a program agency representative (who serves for.2 years) are also on the Steering Committee. The Program promotes strategies and guides’ frnanciaj management improveinent across government; reviews and coordinates ceritral agencies’ activities and policy promulgations;’ and &zts as catalyst and clearinghouse for sharing and disseminating in.Cormation .about good futlancial management practices. This information sharing is done through collferences ‘and other educational events, newsletters, meetings with interagency groups and agency personnel, and through FinanceNet, an electronic clearinghouse on the Internet. The JFMIP has worked on interagency projects that developed a financial systems fiamew&k and financial systems requirements. For the future JFMIP plans to assist Federal agencies in improving their fulancial systems through its Program Management Office. The Of&e willwork on revising the Federal government’s requirements defutition, testing and acquisition processes, the first target of opportunity is core fmancial systems. The objectives of the Office are to develop systems requirements, communicate and explain Federal and agency needs, provide agencies and vendors information to improve fulancial systems, ensure that products meet relevant system requirementi, and simpl@ the procurement process. Information on JFMIP can be found at its website at www.financenet.gov/financenet/fed/jfmip/jfmip.htmor call (202) 512-9201. _.....-.- -_.. -~--._-.-. -- -_.._-- Foreword , This is a functional requirements document for human resources and payroll systems for U.S. civilian personnel. Functional requirements for non-civilian personnel, such as military personnel and foreign nationals, are agency specific and therefore will be developed by agencies having such personnel. It is one of a series of functional systems requirements documents published by the Joint Financial Management Improvement Program (JFMIP) on Federal financial management systems requirements. The Human Resources Technology Council (HRTC), addressing a long-standing requirement to defme.core firlnctionalities of a.Federal human resources system, prepared a report to the President’s Management Council (PMC) in November 1997. That authoritative document provides guidance and direction to the human resources community for the development, maintenance, and enhancement of such systems. The study, can be found on.the Oflice of Personnel Management’s (OPM) world wide web site at www.opm.gov/hrtc. 1 ,‘< ., This JFMIP document reflects financial systems requirements associated with human resources .and payroll systems. In order to establish a comprehensive understanding of ‘the full range of Federal human resources and payroll systems requirements, this JFMIP functional requirements document must be read in conjunction with the ,HRTC’s Governmentwide Human Resources Information Systems Study. The HRTC Study will be updated periodically and shared with the JFMIP so that applicable modifications can be made to this functional requirements document. All of the JFMIP Federal Financial Management System Requirements (FFMSR) series of documents should be considered together when deter mining how best to use information and supporting services to meet the financial management needs of a Federal agency. ^Ii ‘I’he FFMSR series addresses the goals of the U. S. Government Chief Financial Officers’ (CFO) Council, the JFMIP, the HRTC, and others, to promote the efficient management of assets, and to improve financial c management systems governmentwide to provide useful financial information on Federal government operations. ,’ .,, Agencies may develop additional technical and functional system requirements as necessary to support unique, , mission responsibilities. Agencies must also develop strategies for interfacing or integrating human resources and ‘Ii,, payroll systems with the agency’s core financial system. We want to take this opportunity to thank agency offkials and others in the financial, human resources, and payroll management communities who contributed to this document. We value their assistance and support., With continuing support such as theirs, we can confidently face the financial management challenges in the next century. 4 Qren Clear-y Aldekkn Executive Director April 1999 Tableof Contents Foreword >, (. ,I” Acronyms : ‘. Illustrations Introduction. . . . . . . . . :. . . . . . . . . . . . . . . . . . . . . . . .‘. . . . . . . . . . . . . . . . . . . . . . : 1 Federal Financial Management @mework . . ;. . . . . : . . . . . . . .i- . . . . . . . . . . . . ; . . . . . .. . ; . . ‘. . . . 3 ,: I,. System Overview . : . . . . ‘: :. ., . . . . . . .: . . . . . ‘. ‘. . . . . . ,.. . .._. . : ,. . . . . . . . . . . .’ . . . . . y ,. . . . 8 Introduciidn to F&ctio&l Reqihements . . t’ : ‘. . ; . ... . : . . . . . . . . t . . -. . . :. .“,; . .I~. ‘.’ . .’ .’ Y’ . . ‘1’ ; .’ 11 : : ,.‘;: Position Management and Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Recruivent and Staffing. . . ,; ,.’ . . , . ‘. . . ; ‘. . . . . . . ‘., . . . -‘: .’ . . . . , . ‘. . .,.. . ‘,. . ‘.’ . 1’ :, . . ‘. .’ :’ :’ . 13 I : f _;, ,8!, : ‘.I I, , .I Personnel Action Administration., . . . . . . . . . . :, ?... . . ; . ; . . . . . . . ..’ , . ‘. . : i . . :) . . . . ; . . ,,.’ . y, 14 Benefits Achinistratioh . . . . . . . ., . ; . . . . . . . . ‘. ‘.’ . . . . . : . . . . ‘. . . . . . ‘> . .’ ‘: . . . . . . ‘. . . . i6 ,, ‘- .I ., ..’ Labor-Management and Employee Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ‘...,, Wdrk Force Qev@obment . . . . . . . . . . . . . . . . . . . . . ; . . . .,’ . .’ . . . 1, . .. . : . 11,.. . . . . . . . . . .’ ‘is TimeandAttendanceProcessing. . . . . . . . . . . . . . . . . . . . . . . . . . . , -: : .,. x:.. . .‘. .:‘. : . . ‘. . . . 19 Leave Processing. . . . . . . . . . . . . . . . . . . . ; . . . : . ‘. . . . . . . . . . ) . .’ . . . . . . . . . . . . . ,. . . ,20 PayProcessing: .. . . . . . . . i I.,. . . . . . . . . . . . . .‘,. . ; . . . . ; . . . : ..‘. . i . ;‘. . . . . .-: . . . ‘. . . .’ 22 ‘,.( .( ,, Labor Cost andDistrib&on. . . . , . . . . . . . . . . . . . . . . 1’ .. . . . . . . . . . . . . . .’ : . . . . . . . !. . . 25 Report+, Rec&ilihion, atid Re&ds Retention. . . . . . ; . . . . 1 . . . . .’ .” . . ; . .. . . . .’ . . :’ .’ y . i . ., ; . 26 ; ,^ / General Systems Requirements. . . . . . . . . . . . . . . . . . ,. . . . . . .. ., . . . . . . . ? ,.. . . . ) . . . ; . . ‘. . 30 eppendix A: References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ..- ..‘. AppendixB: Glossary.,. . . . . . . . . . . . . . . ; . 1 . . . :. . . ., . ; .. . . .,‘. . . *I.. . . . . . . . . . . . . * 35. Appendix C: Contribuiors.’ . . . . . . . . . . . . . . . . . : ‘. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Acronyms CFO Chief Financial Oficer COTS Commercial Off-the-Shelf FASAB Federal Accounting Standards Advisory Board FFm Federal Financial Management Improvement Act FFMSR Federal Financial Management System Requirements FLSA Fair Labor Standards Act GAO General Accounting OfXce Government Management Reform Act GPRA Government Performance and Results Act HRTC Human Resources Technology Council Il-MRA Information Technology Management Reform Act Pm Joint Financial Management Improvement Program iVPR National Performance Review OMB Office of Management and Budget OPM Office of Personnel Management PMC President’s Management Council SGL Standard General Ledger Illustrations 1. Financial System Improvement Projects . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2. Integrated Model for Federal Information Systems ........................... 6 3. Agency Systems Architecture ....................... ? ............. 7 IntroduCtion ,’ As the world’s largest and most complex enterprise, the U. S. Federal government faces tremendous challenges in the employment and payment of a large civilian workforce including hundreds of thousands of people worldwide. These enormous responsibilities involve the management of billions of dollars of resources, and pose tremendous challenges as we rapidly approach the twenty-first century. The Federal government has consistently recognized the importance of having high quality financial management systems to support improvement of government ,operations and provide financial and related i.n&ormation to program and financial managers. In, response, ,the JFMIP began the process of defining financial management system requirements. by pu@.ishing the FFMSR series of requirements documents, begini&g with the Core Financial System Requirements document in January 1988. Since then JFMIP has issued several other publications in the FFMSR series. In addition to the basic JFMII? systems requirements documents, several Federal organizations and agencies recognized the need for a comprehensive document describing a variety of general systems requirements, e.g., system integration, data stewardship, and internal controls. As a result, JFMII? published the Framarorkflr Federal Financial Management Sytiems document in January 1995. The Federal Financial Management Improvement Act (FFMIA) of 1996 mandated that agencies implement and maintain systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the U.S. Government Standard General Ledger (SGL) at the transaction level. The FFMIA statute codified the JFMIP financial systems requirements documents as a key benchmark that agency systems must meet, in order to be substantially in compliance with systems requirements provisions under FFMIA. To support the requirements outlined in the FFMIA, JFMIP is updating publications which are obsolete and is publish@ additional requirements documents. This is an update of the May 1990 FMIP Personnel-Payroll Sytiem Requirements document, which is being renamed asHuman Resources@Payroll SystemsRequirements document. This Human Resources0 Payroll SystemsRequirements document is inte.nded for human resources and payroll financial systems analysts; system accountants; and others who design, develop, implement, operate, and maintaiu financial management systems. This includes buying or building systems. The primary purposes for tbis update are to reflect: 1. changes in statutes, regulations, and technology that have occurred since the document was originally published in May L990, e.g., passage of the Chief Financial OfEcers (CFO) Act of 1990; FFMIA of 1996; and Illformation Technology Management Reform Act (ITMRA) of 1996;. 2. changes in personnel practices brought about by the National Performance Review (NPR); and 3. increased availability of commercial off-the-shelf (COTS) software packages. The CFO Act strengthened the government% efforts to improve financial management by: 1. assigning clearer financial management responsibilities to senior officials; 2. establishing new financial organizations; and 3. requiring enhanced financial systems, audited financial statements, and improved planning. The Government Performance and Results Act (GPRA); Government Management Reform Act (GMRA); FFMIA; ITMRA; and others further enhanced these responsibilities and requirements. The Secretary of the Treasury; Director of OMB; and Comptroller General of the United States established the Federal Accounting Standards Advisory Board (FASAB) in October 1990, to recommend Federal accou@ing principles and standards. After the FASAB sponsors decide to adopt recommendations, standards are published by HumanResourcesE Payroll Systems Requirements 1 Introduction OMB and GAO, at which time the standards become effective. The Statements of Federal Financial Accounting Standards (SFFAS) are published by OMB as the official standards for the Executive Branch of the Federal government. However, agencies may engage in transactions that are not addressed by these standards. In that event, the Board has agreed to, and the Office of Management and Budget has published in its Fmn and Content of&my Finand StaWkzents (OMB 97-Ol), a hierarchy that will be viewed as providing sources of generally accepted accounting principles for the Federal government. Increasingly, integrated financial management systems are necessary to support program managers, financial managers, budget oficialsj and others simultaneously. Data. and information supplied by systems to these individuals are expected,to- be accurate, timely, and consistent across organizations, agencies, and’ the Federal government. Systems and data are shared’more and more by multiple organizations, agencies, etc;, with common needs. .’ .I : i _: ‘, 2 Human Resources & Payroll Systems Requirements - Federal Financial Management Framework : , : “. 1 This document provides high level functional ~equ~~rne~ti for human resources and p&roll systems that will provide the capability for financial managers and others to control and, account for human resources and payroll salaries and expenses as defined in governmentwide and agency specific statutes, regulations, and guidelines. This document is one component’of a bioad’program to improve Federal ftiancial management,whibh involves the establishment of uniform requirements for financial information, fmancial systems, reportXng, and fularicial organizations. Appendix A contains a listing of relevant statutory and re.gulatory references. :, As shown in Illustration 1, standards and systems reqtiements assist agencies in developing effective a$ efficient systeq and provide a common framework so that in-house progrhers or outside vendori &n provide sofmare more economically. Each’agency should integate its unique requir&n&ts with these governmentwide’&&lard requireinents to proiride a urtiorm basis for t$e standardi&$ion of fman&l management systems as requirkd by the CFO A$t of 1990, FFMIA, of 1996, ITMIU of 1996, and others. .‘,:) ,I ,:I,: Financial management systems in the Federalgovernment must be &signed to sup$rt the v&iog &iculated by the government3 fmancial manag&ent comrnut&y. This vision requties financial ea+igcrnent systems to duppOrt the partnership between pro&rani and financial managers and, to assure!the,titegrity of information for deci+o~*making and measuring performance. This includes the ability to: ’ ‘. 9 collect accurate; timely, complete, reliable, and consistent information; ’ l provide for adequate agency manage?Fnt reporting; . support government&de and agency-wide policy decision-makhig; l support the prepar+ion and execution of agency -bildgets; l facilitate the preparation of fmancial statements and other financial reports in accordance with Fecleral accounting’and reporting standards; l provide information to central agencies for budgeting, ayalysis, and governmentwide reporting, including consolidated fmancial statements; and l provide a complete audit trail to facilitate audits. In support of this vi$on, the Federal government must establish gover-entwide financial management systems and compatible agency systems, tith’standardized tiorm&ibn and, electronic data exchange, to support pro’gram delivery, safeguard assets, and manage taxpayer dollars. It is critical that financial management systems plans support .the agency’s mission and programs, including planned changes to them, +nd that financial management systems plans are incorporated into the agency’s plans for information technology infrastructure and information systems as a whole. Ftirther, systems design effoq should include an analysis of how systems improvements, new technology supporting financial management systems, and modifications to existing work processes can together enhance age.ncy operations and improve. program and financial management. Reassessing information and processing tieeds and redesigning processes, procedures, and policies are esse.ntial steps to meeting user needs. 1 Integrated Financial Management Systems Financial management systems must be designed with effective and efficient interrelationships between sofmare, hardware, personnel, procedures, controls, and data contained within the systems. To be integrated, financial management systems must have, as a minimum, the following four characteristics: Human Resources 81Payroll Systems Requirements 3 Federal Financial Managi?m:ent’Frhnework’ ,.,’ 2.’ : :’ ,, Fhanciai / System,_’” .: hproveh,ent Projects r 7 Standa&/ tequirements ‘.I . Standard Reporting Requirements / ., (’ r,.L’ L ‘j. ‘. ,: i Additionhi . U.S. Government Standard Agency ‘.. General.Ledger Functional ’ , Requirements score Financial System ,, i, . ; ,, Requirements ‘. . Procedures’ II :, +----.A- . Human Resources &‘Payroll / I’ :. ,,J ., !. , : ,. 1-------- Systems Requirements i Additional : i .. ,, Agency Technical . Training . Travel System Requiremenb Requirements . Software ,I, i .Selection I, . Seized Property & Forfeited ,. - Assets System Requirement . Direct Loan System ‘. lhtegmtiori Requirements 1 Strategy /. ;j . Guaranteed Loan System Requirements: . Software/ . Inventory System Hardware Requirements ’ Evaluation ’ . Maintenance . System Requirements for Managerial Cost Accounting .) . Other Standards -I -1 Subject of this report ‘( ,, :‘.\:,‘ ,... > ,‘. ; I 4 - I f _i Illtistrtition 1 1 HumanResources’&,PayrolI:Sjsfems Requirements - ‘. Feder’al’ ,Financial :Ma.nagem!nt. Framework _- ‘,., 1 ,,., 1. standard data classifications’(def&tions and formats) established .,’ ,: and used for recording fmancial events; 2. common processes used for processing similar kindsof transactions; .I‘ 3. internal controls over data entry, transaction processing, and reporting applied consistently; and 4. a design that eliminates unnecessary duplication of transaction entry.. ’ .;’ The financial management systems policy described in OMB Circular~A~~27, “Financial Management Systems,“. requires that each agency establish and maintain a single integrated financial management system. Without a single, integrated fnxmcial management system to enstii+etimely and accurate ftiancial data, ‘poor policy decisions ,are more likely to occur,‘due to inaccurate or untimely @ormation; managers+re lesslikely to be able to report accurately to the President, the Congress, and the public on’ government operations in a timely manner; scarce resources are more likely to be directed;kward -the collection of information rather than to delivery of the ‘intended~programs; and modifications to fmancral management systems necessary to keep p,acewith raljidly changinglegislation~ regulations, and user requirements cannot be. coordinated and managed properly. The’basic requirements for a. single, integrated fmancialmanagement system are outlined in OMB Circular A-127, “Financial Management Systems,” Other financial and information systems requirements are included in OMB Cifc~&r A-,123, : ” :’ “Management Accountability and Control,” and :.’ OMB Circular A-1.30, ‘<Management of Federal Information Resources.” :_.. . ‘,i ;, I Having a single, integrated financial, management system does not necessarily mean having only: one software application for each agency covering all financial management systemsneeds, Rather, a single, i+grated.fnlancial management-system isa unified set of financial systems and the financial portions of mixed systems encompassing the sofTare, hardware, personnel, processes(manual and automated), procedtiies, controls, and data necessary to carry out financial management’functions, manage fmancialoperatiom of the agency, and report onthe age.ncy’s financial status to central agencies, Congress, and the public : ‘,‘,! ./ : : :,j ;1 i..’ 1. ,.i ,’ Unified means that systems are Planned and managed together, operated in an ‘integrated, fashion, ai~d.,linked , together electronically in an efficient and effectivemanner to providC’;agencywide fnxxncial;system support necessary _’ i to carry out the agency’s mission and support&e agency%financial management needs. i,,.$ ,:, > ,,. ,‘, Integration means that the,.uer ‘is able to haveone view into systems such that, at whatever level the individual is using the system, ,he orshe can get to the,information needed e&iently and effectively through electronic means. However, it does not mean that all ‘it&rmation is physically k&ted in the same database. ; -. , Interfaces, where one system feeds data to another system following normal business/transaction.cycles such, as salary payroll charges recorded in general ledger control accounts at the’time the payr0ll.payment.s are made; may be acceptable as long as the supporting detail is maintained and accessibleto managers. In such cases,interface linkages must be electronic unless the number of transactions is so smalllthat it is not cost-beneficial to automate the interface. Easy reconciliations between systems, where interface linkages are appropriate, must be maintained to ensure accuracy of the data. : , ,,, :,,,..’,;, .’ ,‘,. .,,. ‘I I; .,.- j,, _,.( .“_, .’ ., . ; : ,‘, ,-, .,I : To develop any integrated i&ormation system, it iscritical that senior’ systems analysti’ and systems accountants identify: /*:,*: :; ., ,.*-- ^ l the scope of the functions to be supported (processes), ,‘.! l how data quality will be assured (data stewardship), l the information to be processed (management information), l how systems fit together to support the functions (systems architecture), and l safeguards needed to ensure the integrity of operations and data (internal control). Human Resources &. Payroll Systems Requirements 5 L Federal Financial Management Framework All of these pieces must be brought, together in a model such asthe one shown ,in Illustration,2. These pieces must I work together to form an efficient integrated information system. A change to any part of the model will require determination of the implications on other parts of the model. For example, a new reporting requirement may, I require changes throughout the’ entire model. ,’ i F ,. Agency Financial Management Systems Architecture .i Agency fmancial management systems are information systems that track financial events and summarize information to support the mission of an agency, provide for adequate management reporting, support agency level policy decisions necessary to carry out ;, fiduciary responsibilities, and support ,,: Integrated Mddlel for the preparation of auditable financial ‘, Federal Informa$ion’ Systems statements. , Agency financial management systems :’ fall into four categories: 1. core fmancial systems; 2. other fmancialand mixed systems, including human resources and payroll systems, 3. shared systems, and 4. departmental executive information systerns (systems to provide management information to all levels of management). These systems must be linked together electronically to be effective and -* - efficient. Summary data transfers must Illustration 2 be provided from agency systems to central systems to permit summaries of management information and agency fmancial performance information on a governmentwide basis. Subject to governmentwide policies, the physical configuration of fmancial management systems, including issues of centralized or decentralized activities, processing routines, data, and organizations, is best left ,to the determination of the agency, which can determine the optimal manner in which to support the agency mission. The physical design of the system, however, should consider the agency’s organizational philosophy, the technical capabilities available, and the most appropriate manner to achieve the necessary single, integrated financial management system for the agency. /_ ; The agency systems architecture shown in Illustration 3 provides a logical perspective identifying the relationships of various agency systems types. Although this does not necessarily represent the physical design of the system, it does identify the systems types needed to support program delivery/financing and financial event processing for effective and efficient program execution. 6 Human Resources & Payroll,Syst.ems Requirements - Federal Financial Mana,gement -. Framework ---.--_- :: Hiunan Resouqes .,’ I and Payroll Systems, ,’ :. ,I,’ As showni iti Illustration 3, ‘human resburces. and payrofi systenis are an integral ptirt of the t&l financial management system for virtkally & Federa,l agencies. Hilmtin resources and paykoll system support prograktnatic objectives and inieract with co;& financial systems tie validate tids availability; update budget execution data; record human resources and payroll saltiies and expenses; and record other personnel and payroll related transactions. :, ;,‘. ,.. y;, ,, :y/ HHuman Resources \ \\ / illustration 3 HumanResources& Payroll Systems Requirements 7 - ..“-.-...-- -j SystemOieriifiiv The complexity, ,diversity, and size of the employee population in Federal government agencies place unique . ’ demands on managers of human resources and payroll operations. The constantly changing requirements of human resource management has led management to look not only at the functional capabilities of human ’ resources and payroll systems, but also the managerial environments in which these systems are supported. and/or operated. All human resources and payroll systems that are being designed and implemented, or are in use, must operate in .’ accordance with laws, regulations, and judicial decisions. It is the responsibility of each agency to be, knowledgeable ./ of the legal requirements governing its human resources and payroll operations, ‘/ :. ,. I,‘. All human resources and payroll systems must provide, as a mininlum, the following qualities: ” ‘. ” l Complete, accurate, and prompt payment of pay and deductions; (., ,. .; (,. l ,Complete, accurate, and prompt generation and maintenance of human resources and payroll records and transactions; l Timely access ‘to complete and accurate. information, without extraneous material\ to those internal and external to the agency who require the information; l Timely and proper,ititeraction of human resourcesand payroll systems with Core fmancia1.system.s; and ;,‘. l Adequate internalcontrols to ensure that human resources and payroll systems are operating as intended. This document identifies functional ‘requirements for human resources and payroll systems. Although the ; document may be used when developing new human resources and payroll systems, or improving or evaluating current systems, the document does not provide a specific model for, such systems. Functional requirements not 3’ mandated by law, regulation, directive, or judicialdecision must result in cost-effective systemsthat are in the interest of the government. All possible alternatives’ for meeting the requirements should be considered. Human resources and payroll management functional reqtiirements presented are those required to initiate and maintain the compensation of employees. The Ml spectrumof human resources and payrollmanagement functions would include planning, policy, programmin g, budgeting; accounting, operations, and controls. Human resources management activities include: l position management and classification; l recruitment and staffing; l personnel action administration; l benefits administration; l labor, management and employee relations; and l work force development. ., .’ Payroll management, activities include: l time and attendance processing; l leave processing; and l pay processing. 8 Human Resources & Payroll S.yf.tems Requirements - System Overview Other management activities include: ‘;l. ., <’ : ‘, b labor &st distribution; : :, ‘1 ,,, .’ l reporting, reconciliation, and records retention.; and ., l general systems requirements. The’f&lloti&g discussion illustrates the relationship bkveen humari r&oUkeS and pajiroll activities. When an individual is hired, human resources ktablishes salary, grade, entitlements, etc. This itlformation is then passed to, payroll to affect leaveand pay processing. .Any changes to the b&ii: aukb&zatioti.sand entitlements must be made by the human resources activity before be.ing reflected in the payr,oll ‘,system. / ,/ Functional requirements of the Federal government% human resources and payroll systems can be segregated into two general categories, mandatory and value added. Following are deftitions for these two ktegorks of requirements : ,: ! !. ., ,I. Mandatory - Mandatory requirements describe what the system must do’ and consists of .tbe nti+num acceptable fknctionality, necessary to establish a system, 6r are based,on Federal laws and regulations. Mandatory reqkements are those against which age&y heads evaluate’ their iystenis to’ determine substantial complimce with systems requirements under .tbe .FFMIA. These requirements .apply to existing systems in operation and new systems pla+ed or under.‘,,develGp@ent. ‘. ,. Value-added - Value added requirements describe fegtures or +ar?cteristics and may consist of any combination of the following: (1) using state of ‘the art tecbc@gy, (2)employing the ,pref&red,or k&t ,. businessspractices,or (3) meeting the special management needs &an indivi+.ial agency. Value.-.addkd,, optional;and other similar terminology hay be used to describe, this, category of requirements, Agencies should consider value’ added features, when judging systems pptions. ,The need for these value-added, feat@s in agency systems is.left to the discretion of each agency head. Human resour& requirements in this document are grouped by the functional areas commonly.found.ak separa&vor& :, units in human resources offices. These fUnctional areas are further categorized under the headings: 1. Primary I&e or User (Manager Self-Service; Personnel Actipn Process&g, Personnel Action Tracking, Official PersQnnel.Folder, Employee Self-Service, and Case Management and Administration); 2. Fegulatoiy Compliance &d Administratih; and 3. Functional Requirements. Under the category Primary Use or User, the %e o’fthe word “m@st” denotes that item described is mandatory. Whereas, the word “should” indicates that the system would have increased “value added” fkctionality if these items were part of the system. Requirements that are found under Regulatory Compliance and Administraiion all include the direction of “‘must” and are therefore required in tiy information syste’m. Functionai Requirements outline the subparts of the functional area with a description of what that subgad entails. This descrifition is given to kther enhance the reader’s understanding of the complexity of the systeni. Th&e function@ requirements must be present in hum& resources systems. Howevei, the Federal statutory and regulatory environment governing the human resource system Supports increasingly flexible and vairable management practices under broad guidelines: “This human resources requirements environment is more tilly presented in the HRTC’s,Govemmentwide Human Resources ,1 Information Systems Study that can be found on the OPM web page at: www.opy .gov/hrtc. ,Rev?,&izing that there ar” -’ many statutory and regulatory requirements in the Federal sector applicable to hunian resour& systeniSaiid thkt tlik current statutory and regulatory environment permits a rarige of flexibility and experimentation, the Agencies, in consultation with OPM, are responsible for identifying and exercising exceptions to mtitidatoq reqbirements. Value added requirements are identified by the use of “should.” Payroll requirements in this document are mandatory system requirements. They are identified with bold headings, Functional Requirements and Regulatory Complianbe and Administration.’ While there k-e many poten@ value added features for Payroll systems,they are not presented in this document. .- g 1 Human Resources & Payroll Systems Requirements System Overview The burden of demonstrating that value added features are cost effective and clearly in the interest of the govertient rests with agency heads. Further, each agency must develop an efficient, effective, and economical strategy for interfacing or logically integrating its human resources and payroll systems (or subsyst&ns) with each other and wi$ other dystems (or subsystems) that provide tilformation to, or utilize information from, standard human resources and payroll systems.. Human resources and payroll activities can be further categorized based on types of activities. The remainder of 1 this document provides functional requirements based on these categories as follows: I I Position Management and Classification: Provides for position management and classificatisn including the I collection and editing of data. Recruitment and Staffing: Provides for recruitment and staffing. Personnel Action Administration: Provides for personnel action administration. Benefits Administration: Provides for benefits administration. Labor-Management and Employee Relations; Provides for labor management and employee relations matters. Work Force Development: Provides for work force development. Time and Attendance Processing: Collects time and attend&ice and labor distribution data to be used with entitletient data on a pay period basis, as required. Leave Processing: Processes and controls leave advances, accruals, conversions, transfers, usages, and forfeitures for each emfiloyee. Pay Processing: Calculates gross pay and allowances, deductions, employer contributions, and net pay for each 1 employee. Labor Cost and Distribution: Provides for the collection, maintenance, and management of labor costs based on classifications and coding stru&ur& specified by the agency, for the purpose of reporting data to bther systems, e.g., cost accounting systems. Report& Reconciliation, and Records Retention: Accesses, manipulates, and formats data as required to satisfji intT+l, external, and management requirementi, e.g., payroll system data for comparison and reconciliation with disbursing and accounting systerns to ensure accuracy and completeness. Maintains current and historical personnel; pay;‘leave; time and attendance; and retirement data for each employee. Supports both payroll-related data and human resources-related data in logically integrated databases and/or interfaced systems. General Systems Requirements: Includes a variety of general data stewardship, interface requirements, and other hardware and software related requirements. ,. The following sections define uniform core fUnctiona requirements and creates a fi-amework for designing effective and efficient human resources and payroll systems based on the foregoing categories of human resources and payroll activities. The identified standard core requirements, when integrated with agency unique requirements, will move the Federal government towards a higher degree of uniformity in the design and capabilities of human resources and payroll systems while, at the same time, support the special i&ormation management needs of individual agencies. - 10 Human Resources & Payroll Systems Requirements L -“---- A Introduction to Functional Requirembnts :, The following core functional requirements have been identified by key human resource and payroll functional areas and are expected to be integrated with agency unique requirements in a manner that best supports the agency’s programs, operations, technical environment, and management philosophy. The requirements listed for each func$onal area are not intended to be exhaustive, but are aimed at providing a high-level description of the major information and, processing capabilities needed to have modern human resources and payroll systems. ,, I. .I ., : Human Resources & Payroll Systems Requirements .- . __- PositionManagement andClassification Primary Use or User: : .’ ., ‘. Manager Self-Service: l The system should facilitate full manager. empowerment of delegated position classification authority. . The system should allow managers to structure ‘organizations under their control and quickly develop classification documents through the use’of standard, position descriptions or generation of new classification determinations ,through the use of expert or decision support systems as appropriate to their requirement. l The system’must’also provide the capability to produce pertinent information in response to classification, appeals.. l An important aspect tihich the system should support is full identification of position requirements. For example, managers;should be able to annotate a position’s unique requirements such as’mobilization responsibilities, drug testing requirements, position sensitivity, financial disclosure obligations, position-based skill and competency requirements, and a tide variety of other position:,based requirements that emerge and change over tune. l The system,should als,o automatically generate documents whic,h facilitate related human resources management activities (e.g., recruitment, performance management, and training and development). . A related functionality that must be provided is organizational decision support for managers that will simplify their organization’and position design decisions (e;g.; budget and Full Time Equivalent (FTE) management, activity based costing, work effort as related to performance measures and indicators): l Further, the system should provide sufhcient flexibility to enable management to account for total work force utilization that can encompass,the efforts ‘and associated costs of contractors, military members, and volunteers. ,,” a Regulatory Compliance and Administration: The system must be designed to comply with statutory and regulatory requirements when processing transactions and providing decision support capabilities for position management and classification activities. .This includes documenting regulatory determinations that are derived from the position and applying appropriate classification standards. For example, Fair Labor Standards Act (FLSA), competitive level, bargaining unit status, and applicable classification determinations (title, series, and grade). Appendix A contains a listing of relevant statutory and regulatory references,. Functional Requirements: Analyze Organization Structure. Provide the analysis, recommendations, and maintenance of position structures supporting an assigned task. Evaluate Duties and Responsibilities. Describe the work of a position and apply standards, policies, and guidelines to determine the type and level of work, to include identifIcation,of’knowledge, skills, abilities, and competencies. Classify Positions. Classify positions according to OPM standards. Process Associated Human Resources Data. Update position and manpower information in the appropriate personnel files and produce the necessary documentation. 12 Human Resources S, Payroll Syst:ems Requirements Recru’itment andStaffing Primary Use or User: Manager SelfService: 1 . The system should enable managers to electronically initiate the full range of recruitment-based actions (e.g., internal and external recruitment actions, reassignment actions, details) and flow these actions to the appropriate ,mdividuals and off&s for approvals and processing. <Using position-based requirements, the system should provide expert or decision support capabilities to l generate documentation needed to complete the recruitment process. This includes preparation of . ’ vacancy announcements which contain specific selection criteria (e.g., knowledges, skills and abilities (KSAs) and competencies, and conditions of employment). 9 The system should also have: the flexibility to allow managers to electronically receive and.,act u&on referral lists, resumes that contain appropriate candidate qualification irtiormation, and fully take into account regulatory requirements. __ l The system should ‘also provide a means for applicants and employees to apply as either external or ‘. internal candidates for vacant positions. . The system should ‘also provide .the capability to process reduction in force actions including the determination of retention rights, issuance of notices,’ and generation of required documentation. ‘. Regulatory Compliance and Administration: The system must be designed to comply with statutory and regulatory requirements when processing ,transactions and providing decision support caliabilities in accomplishing recruitment, staffing, and reduction in force activities. This includes, for example, priority placement, entitlements, time-in-grade restrictions, and minim um qualification criteria for processing recruitment and staffig actions, veterans preference, type of appointment, length of service, and performance data for processing reduction in force actions. Appendix A contains a listing of relevant statutory and regulatory references. Functional Requirements: : Prenare Stat&g Plans. In conjunction with managers, process historical information to identity both short and long term staffing needs. : 5 Recruit Applicants. Includes all activities involved in acquiring applicants and recording them in an automated system. Major tasks include job analysis, soliciting applications, evaluating candidates, and notifying ap#.icants of status. Assign Emplove& Includes those actions necessary to process requests by management or the employee that affect employees during Federal employment. This involves actions that promote, reassign, detail, and voluntarily separate employees. Issue Referrals. This involves referring candidates to the selecting off&l, monitoring the status of the issued referrals, and documenting the entire process. _. ‘:’ ,I :. i .- An& Recommended Pav Scales. Determine and apply the appropriate pay scale for the employee. Document Recruitment and Staffing Actions. Maintain historical files documenting the recruitment and staffing 1 process, including delegated examining authority, in a manner that provides a complete audit trail of all actions. This is particularly important in responding to data calls associated with grievances, appeals, and equal employment opportunity complaints. Human Resources & Payroll’System’s Requirements 13 Personnel ActionAdministration ‘I 1 Primary Use or User: /’ Personnel Action Processing: l The system must preclude duplicate data entry by automatically accessing position and employee information already residing within the system. l The system must process (with both current and future effective dates) the .full range of individual and mass personnel actions such as appointments, reinstatements, transfers, promotions, separations, retirements, terminations, furloughs, change to lower. grades, reassignments,;pay changes (including locality and national adjustments, allowances, differentials; premium pay;movement between pay plans or schedules, and pay and grade retention), and details. t l The system must fully document the .associated personnel action with all regulatory required irlformation such as legal authority and nature’ Xaction citations. ‘, : I l Incumbent-related information such as date of hire, service computation date, retirement service date, severance pay date, Civil Service Retirement System, Federal Employees Retirement System, Federal Employees Group Life Insurance and Thrift Savings Plan eligibility dates, Federal Employee Health Benefits enrollment date, step increase and prior military service information must also be recorded. There is also a need for the capability to correct or cancel these actions, and provide the necessary audit trail. Personnel Action Tracl+ig: l The system must enable managers a,nd human resources staffs to track past, current, and pending personnel actions. l It must also automatically generate personnel action reminders that will prompt management decisions on such actions as within-grade-increases, completion of probationary period and temporary appointments, and any similar time-sensitive actions. l The system shouklenable on-line approval or disapproval of such recurring actions. I! Official Personnel Folder: l The system should support the conversion of the paper Official Personnel Folder (OPF) to an electronic medium. l An electronic OPF system would help agencies reduce the significant operational burden of maintaining paper OPFs while affording human resources professionals, manage.rs and employees easier access to historical employment information. Regulatory Compliance and Administration: The system must ensure that statutory and regulatory authorities that authorize the processing of the action is correctly cited and documented. This includes, for example, entering the prescribed remarks, retained grade expiration date, career-conditional conversion date, probationary period. expiration date, and leave accrual category. Appendix A contains a listing of relevant statutory and regulatory references. Puntitional Requirements: Finalize Personnel Actions. This involves the consummation of management and employee requested personnel actions by either the generation_ of a paper SF-50 ~__ or the electronic storage of data associated with the SF-50. Also included in this process are those actions ancillarv to emulovment. such as reuuesting: securitv investicrations. '14 Human Resources & Payroll Systems Requirements arranging physical examinations and identifying drug testing requirements, requesting and providing SF-75,.,. information, and the administration of the in-processing activities. ,_ ‘.. (. ,’ ,... : ,’ (’ k,. ’ ,,I,’ Records Upkeep. All activities associated with establishing, updating, purging, storing and disposing of a variety of human resources documents and records. This also includes miscellaneous record maintenance ,activities such as corrections, employee record validation, and record keeping ,personnel action processing. The requirements presently being developed in support of an electronic OPF by the interagency Digital OPF project must also be planned for and supported by agencies’ information systems. ., ,; ,! : j .I ‘, ..I .‘, ‘, : : ’ ,: I,.., j ,! i ! ._ ,’ 1 ,! Human Resources & Payroll Systems Requirements 15 I- ,, Primary Use or, User: Employee Self-Service: a. ” ii’ l The system should have the capability to enable maximum employee accessto self-service personal benefits information and automated transaction processing. The intent of this requirement is to allow employees to manage their own benefits, such .asrequesting information and initiating actions, with a minimum exchange of forms or other paper documents. l The system coverage should, for example, include:, I “. - Federal Employees Health Benefits Life Event and Open Season Elections. : ‘- Thrif? Savings Plan Life Event and Open SeasonsElections. - Federal Employees Group’Life Insurance Life Event and OpenSeason Elections. ( ,, - Retirement Calculations for all categories of employees under all applicable retirement programs to the agency. - Miscellaneous Changes (e.g., Address, name, emergency contact information). .: - Alternative data and processing entry points for individual with disabilities in compliance with the American Disability Act. .’ 1 Regulatory Compliance and Administration: The system must ensure that employee initiated transactions are authorized by law or regulation, are accurately effected and, documented, and are confirmed in a timely manner to the employee. Appendix A contains a listing of relevant statutory and regulatory references. ‘, ‘. ,’ ‘: Functional Requirements:. ; ., Provide Basic Information. Explain requirements, benefits, and procedures related to employee benefits. / Determine and Process Employee Entitlements. Determine employee eligibility for entitlements and process. and document the action. .’ Flow of Information. Any new information system should have the capability to allow for the paper less flow of : information directly from the system to benefit providers (i.e., health care and insurance providers). ., 16 Htiman Resources #I Payroll Sfistems Requirem,entf r Primary Use or User: Manager Self-Service: l The system must preclude duplicate data entry by electronically produchg position-embedded performance criteria necessary,to; generate individual peyfqrmafice appraisal plans. l The $ysteti should be sufi%ie~tly’fl&ible to allow for multipl6performance rating configurations and evaluation methods. j : ‘,~ l The system sho(uld prdtride for electronic routing, completion, apprbval a&l re.&r&ng of the ’ performance plan and resulting rating from management td .the human ._I,resources office. 6 The system should also provide for support capabilities toielectro&allygenerate, approve. and process the m range of monetary and honorary awards for employees, ,Fnd be flexible enough to tailor to individual agenky nekds. * ’ l The’ system should have the capability to create, monitor a6d maintain’ performance impkovement $ans . Case Managemerit and Administration: l The system must prbvide’the capability’tb track arid &cord tl& till range of employee, management,, or third-party generated appeals and,grievqces. This includes events such as pe.&ormance abd Condtict c&es, Unfair Labor Practices, and labor contract administration. l The tracking functionality must include such itlformation as,case na&ej case date, case steps and resolution, ‘, : Regulatory Cokpliance and Administra&on: The labor an+ management employee relations functio&l activities and processes performed by the system must comply with statutory and regulatory requirements, and the guidance provided by the Executive Order on Management-Labor Partnerships. Appendix A contains a listing of relevant statutory and regulatory references. Functional Requirement& Administer Incentive Programs. Asstire eligibility edits, obtain necessary approvals, and process necessary documentation for incentive awards. : 1 , I Conduct Emplovee Relations. Includes the ability to track employee relations actions from initiation through completion. Administer Performance Management. Includes all tasks involved in administering a system for evaluating employee performance and probationary periods. Administer Labor Relations. Gather and store data in support of negotiations or other labor-management discussions, contract administration and to resolve disputes. Data on the dollar value of time spent by union employees on representational activities including travel and per diem and the dollar value of services provided to unions (telephones, office space, computers, etc.) should also be tracked and reported by human resources or fuiancial management systems. Human Resowcos & Payroll Systems Requirements F WorkForceDevelopment 3.; , Primary Use or User: .( ,. ).. Manager and Employee Self-Service: l The system’must provide the capability to use position and personal data already residing within the i, system to facilitate on-line initiation of the full range of work force development activities. These activities include: nomination, approval, enrollment, evaluation, and personnel record documentation. I ., ! l The system must also record essential data relative to the cost and source’of developmental. activities and enable analysis . of such activities to determine future budget, needs and return on investment. “!, Regulatory Compliance and Admini’s’tration: The work force development functional activities and processes performed by the system must comply with statutory and regulatory requirements. Appendix A contains a listing of relevant statutory and regulatory references.’ /’ , .,, I’ .,: a Puncti~nal Requirements: ,, :’ z ‘_ Administer Employee Development Program. Support the planning, development and delivery of trainiilg and career development programs to meet agency and employee needs. Track completion of training by em$oyees. I Develop Training; Budget. Support the preparation of fmancial projections and implementation .I of controls, which maGmize the utilization of training funds. ‘, .’ 5 Evaluate Development and Traininrz Activities. Support the evaluation of the effectiveness and quality of course design, program content, delivery methodology and instructional value. ., , , : ,’ 18 Human Resources & Payroll Systems Requirements - TimeandAttendance Processing The system must capture time and attendance information on workschedule hours worked, units of pay, and leave taken which are necessary. For computing pay, leave, and allowances the principal input is the time and attendance record, accounting for time in a pay or non-pay status. l The system must capture information or 9. on,time, units of measurement worked, to determine gross pay. l The system must be flexible enough to capture multiple types ofwork units and all types of leave earned and used. P! /, 21 Regulatory Compliance and Administration,: .The system must be, designed to comply with statutory and regulatory requirements when processing transactions and providing decision support capabilities in accomplishing activities associated vvith the time and attendance function. Appendix A contains a listing of relevant statutory and regulatory references. 2 -.. ‘,’ Functional. Requirements: ~’ Collect Tirne and Attendance (T&A) Data. Collect work and leave hours on an established tour of duty, including alternative work schedule and flexitime hours information. This requires, pre-approved or positive acknou4edgement from the approving official that the employee worked the established tour and that time and’ attendance data is approved. Collect actual hours or days worked, and other pay-related data, e.g., piecework, fee basis units/dollars, and differentials for each employee. Collect T&A data on a pay period basis, e.g., daily, weekly, biweekly, semimonthly, and/or monthly basis. Capture T&A data in days, fractions of hours, or other units of measure as required. Collect T&A data on employees who wprk temporarily in other or multiple pay classifications. Accept T&A data through various processing modes, e.g., automated time entry or internet. Calculate and adjust weekly, biweekly, or pay period hours based on FLSA, Title 5, and other statutory and regulatory requirements. Determine premium pay entitlements based on scheduled tour, actual hours worked, and leave data. Report and Release T&A Data. Accept electronic, or other appropriately documented, approvals from authorized approving officials. Release T&A data for flier system processing. Generate reports to monitor T&A data. Edit and Correct T&A Data. Edit T&A data at the earliest time to ensure that the data are complete, accurate, and in accordance with legal requirements. Support the correction of current-pay period and prior-pay period T&A records. Human Resources & Payroll Systems Requirements 19 l&e Processing ., Leave,Processing: I, ! ” I ,. ., ,. / 9 The system must provide for the performance of all activities associated with determination of proper leave i b balances for all types of leave, leave advances, accruals, usages, forfeitures, limitations, and transfers. i: l The system must apply current period leave accruals and leave charges to each employee’s available leave i: ’ balances,’ leave transfers, donations to’leave banks or individuals; and adjustments’to ieave. balances, for ,’ i. I restored leave, EEO settlements, and similar after-the-fact situations. I l ,The system must process leave forfeitures~,and carryovers for each employee. ‘,. :: .:, ., ,, ,,/ Regulatory Co&Ghxe Ad Aclmihistrationi The system m&be d&gnedto comply with statutory and regulatory requirements when processing transactions and providing decision support capabilities in accomplishing leave transactions. Appendix A contains a listing of relevant statutory and regulatory references. Functional Requirements: Accrue Leave. Accrue each type of leave to which an employee is entitled, including partial accruals and carryovers. Special accrual 11 rules for employees using donated leave, etc., must be accommodated. Accrue leave for part-time employees. Leave accruals for part-time employees are based on actual applicable hours in a pay status. Process leave accruals and units for special category employees, e.g., firefighters, etc. Process Leave. c Process leave for each reported leave type at the end of each effective pay period. Process advances, accruals, and restored leave before usages are applied to the appropriate available balance. Offset advanced sick leave balances against subsequent pay perio,d accruals of sick leave. Process current period and prior-period leave transactions on an effective pay period basis. Determine compensatory time or credit hours to be forfeted or paid as appropriate based on predetermined elapsed time limits; maximum carry over limits; and maximum earning ceilings. Maintain 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. Provide for fiscal-year-end, leave-year-end and calendar-year-end processirig and forfe.itures in accordance with established Governmentwide and agency specific guidelines. Ensure leave without pay (LWOP) or furloughs for retirement, Oflice of Workers Compensation Program (OWCP), education, and military purposes is separately designated and does not affect Within Grade Increase (WGI), etc. 20 Human R,esources & .Payroll,Sys\:em.s Requirements _ leave.--Processing -.-: ‘,/ ‘/, *,: ‘.,,,I .~ ,,.;\., ‘:*.;,. ‘, ..:.~,?.’ Adiust Leave. r _,’ ” Modify leave accruals, limits and/or balances for employees who change either leave systems or work ,. .schedules (i.e., full-time to part-time, etc.). c’ I I’ ’ ., If ., Automatically convert leave taken in excessof available balance, based upon an established leave,priority policy. When appropriate,, provide*for management review (e.g., to determine advance leave, leave,without pay, or.absence without leave). <‘,(i :, > . . ‘_ > Recompute leave balances due to firior-i>eriod h&u- adjustments or retroactive entitle’ment changes for each period subsequent to the effective period of the change (leave, benefits ,artd payments), in the following:order: (1) retroactive entitlement changes and then (2) prior-period hour ,’ adjustments. I .‘, . ! ,;., I.‘/,_ ‘l. .’ :’ .: ,I.., ), ‘. ‘I , ,: Human Resources &.Payroll Systems Requirements Manager and Employee Self Service: , ‘. I l The system must calculate gross pay, deductions, net pay, employee, and employer contributions for each employee on an effective pay period basis. i l The system must compute gross pay as the sum of each rate of pay times the number of units related to it, I minus retirement annuity offsets, if applicable, plus all appropriate allowances and/or other gross pay 1 components, classify and total deductions, subtract total deductions from gross pay, and apply formulas or I utilize ,. I. tables to determine employer contributions required for certain.t payroll taxes and benefits. I ‘; ., .:, Regulatory Com@iance tid Administi+io& The system must be designed to comply with statutory and regulatory requirements when processing transactions and providing decision support capabilities ki accomplishing activities associated with calculating and paying employees. Appendix A contains a listing of relevant statutory and regulatory references. Functional Requirements: Calculate Gross Pav. Calculate pay at the end of each pay period after properly authorized inputs have been received from the Time and Attendance Processing Function, and after personnel action processing is completed. Process prior period, current, and future period pay actions, based on effective dates. Process current-period and prior-period adjustments as an integral part of the payroll cycle. Make retroactive calculations based on prior-period hour adjustments, changes to an employee’s entitlement (for earnings or deductions) or mass table changes. Compute various types of pay entitlements, e.g., foreign and nonforeign allowances, differentials, awards, and premium pay. Compute pay for various types of employees, e.g., fEefighters, law enforcement offkers, emergency medical technicians, teachers, etc. Compute earnings amounts or rates 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. Calculate overtime based on either FLSA or Title 5, as appropriate. Calculate differentials based on applicable hours that are certifie.d by an approving offkial. Accommodate information requirements to support supplemental pay actions and recertified checks. Calculate allowances, premiums, and d8erentials as defined by law or regulation. These may be set dollar amounts or computed as a percentage of pay, applying caps or other limitations when applicable. Process and compute pay and deductions for multiple positions under diierent appointment authorities, and different pay, leave, and benefit entitlements. Perform statutory limit and reasonable.ness tests on gross pay. 22 Human Resources & Payroll Systems Requirements - !- ; Pay.---..- Processing..._ - ; I i’ Calculate and Apply Deductions. Calculate the following deduction types for each employee: 1. mandatory deductions (e.g., retirement, Federal, state, local, a&FICA taxes), 2. voluntary deductions (e.g., state and lo&l taxes for multiple taxing authorities, life insurance, health insurance, thrift savings deductions, allotments, bondd, and pr&tax deductions for transportation benefits), and 3. involuntary deductions (e.g., IRS !levies, garnishments, and admitiistr?tive. debt collections). Provide for percetitage computation of deductions that are subject to annual or regulatory limits (e.g., the current rate for Federal taxes on suppleme.ntal payments, Thrift Savings Plan (TSI?) contribtitions, and Social Security taxes). Provide the capability to process deductions that apply in various pay periods and/or have specified limitations, &..g.; garnishment pay-off amount. Prorate insurance premium deductions for part-time, seasdnhl, and applicable accessions and separating employ&es, using the daily pro-ration rule. Accelerate deductions for employees paid an annual salary in less than,one year (e.g., teach&s). Determine when a bond may be issued given its type, denomination, per pay deduction, and balance from previous pay deductions. Deduct some items in every pay period and others in selected pay periods only, e.g., discretionary allotnients. Ensure that deductions do not exceed gross pay, as established by appropriate laws and regulations. Compute the maximum variable deductions for levies, garnishments, and/or offsets based on appropriate limitations of each type of deduction. Adiust Pay Calculations. Electronically compare leave, benefits, and payments, for adjusted time and attendance data with prior period data and automatically compute differences. Support payroll adjustments and regular calculations that cross fBcal and/or calendar years, and provide needed information to the core financial and other information systems. Subtract deductions calculated in the order of precedence specified by OPM or other laws or regulations, while ensuring that net pay is not negative. Follow appropriate rules for taking no deductions within a priority level or partial deductions, if allowed. Adjust taxable gross pay by deducting untaxed items (e.g., Thrift Savings Plan deductions) and civil service retirement annuity offsets. 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 earnings for pay period of separation and any unused annual leave (based on the current pay rate) on termination of an employee from federal employment. Calculate indebtedness for leave advances upon separation. Accommodate requests for waiver of collections for leave advances. Human Resources & Payroll Systems Requirements 23 1 ._._.--.- .I- Pay Processing OKset the dollar amount of other receivables owed the agency against earnings for pay period of separation or, if applicable, lump sum payments. Maintain.’ Data. Allow employees to update +&al payroll information, at ‘the etipioyee’s discretion, e.g;, tax withholding information, savings bond information, ele.ctronic tindstransfer information, and allotments. ‘. Maintain each pay record by the pay period in which it was calculated and by the pay period to which it applies (the effective pay period). :: -. ‘. :, .,. Record gross pay, dedtictioh, and net pay, generating information to update other functions and other systems,’ as appropria’te, including the Standard General Ledger m&tained in the Core financial system. Capture the overtime rate in effect when compensatory time is earned for possible future payout. ‘. “’ Maintain individual retirement data, including service history and fBca1 history for each employee. Maintain separate records for military (posti1956) and civilian depdsits. ‘, ‘/ Maintain data to support preparation of notifications of employee indebtedness, e.g., health benefits. Generate Output. Support unemployment compensation for Federal employees processing and responding to ES 931 Request for Wage and Separation Information - UCFE requests. Generate payment for severance pay, not exceeding the amount authorized for each employee, on a pay period basis and provide for Department Gf Defense employees, the option of a hunp sum payment. Make electronic fYmds transfer payments as well as other methods of payments, including off-cycle and third party payments. Generate payment of unpaid compensation to beneficiaries. Accommodate information requirements for accounting transactions for accruals of pay and benefits during the year. This process is to provide for accruing and reversing accounting information relative to pay and benefits on other than a monthly basis. Provide a means for correcting accounting transactions for an employee for one or more past pay periods, and for generating adjusting accounting transactions to reverse the improper charges and record the correct ones. Make titiormation available to other &nctions to generate internal and external payroll reports not created directly in the Pay Processing tiction. Use posted time, scheduled tours, and partial pay period computations for accrual processing. Provide the capability to track and report pay associated with job-related injury time (continuation of pay (COP)). Provide data to establish receivables or follow up on types, of leave that may result in an employee indebtedness, including health and life insurance premiums for employees on approved leave without pay and certain jury duty fees while on court leave. Provide information to analyze detailed pay transactions and establish each as either a disbursement or as a debt due tile government. 24‘ Human Resources & Payroll Systems RequirementS laborCostandDistribution 1 Cost Accumulation: : l The system must accumulate cost information for use in budgeting and controlling costs; performanqe measurement; determining fees and prices for serviF?s; assess&programs; and management d&ion making. Labor costs are an integral part of ,. determtnmg the cost .of doing business. I. l The systeni must’accxunulate work units by cost object (e;g., org+$zation and .acti&y),jand responsibility center and be provided to other systems performing cost accou&ng f&ctions. :. .: Regulatory Cbmpliance and Administratidn: Support the collection’of labor &tribution h&s based on the classification code structure defined in the JFMIP Core, Requirements document. Appendix A contains a li&ng of relevam statutory ahd kegulatoi-y re.fererices. ’ . ~’ .,_ Functional Requirements: ,; .. ,_ .,,’ ).a ,; .I,.‘, .‘- ‘,:. Accumulate work units by predefmed data elements. 1’ ’ : ;: ‘,, Provide flexibility to update data elements driving the cost’accumulation pro&s. ” ‘,, ,’ : Provide electronic output on,distributed work units from the labor distribution process for use in other systems. ,’ Provide electronic output on undistributed employer contri&tions:qnd benefits for use in other sy$tems. ,,i: 5’ ,, ,,: 5’ ,’ ‘. e’, _’ ‘. ,. ‘: . . ‘,( ‘. .’ ; ,,.‘, A .,. 5;. t,‘, ,, I , ).’ ,,, ,, ” ,..’ : : ; -. ! ,’ . . Human Resources .& ,Payroll Systems Requirement,s 25 Reporting, Reconciliation, andRecords Retention Information Management Services: The system must provide for reporting, reconciling, and retaining records to accommodate a number of requirements. l The report processing aspect accesses and formats data as required to satisfy regulatory, managerial, and accounting information requirements. l This includes the generation of reportsat specific time intervals or upon request, including reports that span fiscal years, calendar years;or other time periods; ‘, l user ,outputsproduced include all vouchers and reports necessary to recognize payroll expenses, and authorize .’ related disbursements. , l External reports include those required by Treasury, OPM, the Department of Labor, the Federal Retirement Thrift Investment Board, and others. i., l Managerial reports include control reports used by human resources/payroll office staff members, as well as reports used by others such as supervisors. l The purpose of reconciliation is to compare and reconcile data between systems. Internal Reporting: :. ,,.‘., l The system must provide employees and managers selfservice capabilities in obtaining information pertinent to their needs. For example, employees should have access to their personal employment and earnings data and managers should have access to their organizational and subordinate work force non-personal data. l Human resources and financial personnel should be able to perform a wide range of organization and work force analyses that will facilitate the strategic needs of their serviced managers a&organizations. Regulatory Compliance and Administration: Reporting.services performed by the system must comply.with statutory, regulatory and security requirements. Appendix A contains a listing of relevant statutory and regulatory references. Functional Requirements: Preparinp and Evaluating Human Resources Program Plans. Support reviewing and issuing statistical and narrative human resources program plans based on goals ‘and management objectives. Inquiries are normally complex and cover all activities during periods of up to one year or longer when doing comparisons, Historical data. The system should maintain the following information in accordance with the statute of limitations: l An employment history of the employee with irtiormation comparable to that in the employee’s OPF. l A pay history showing gross pay by type, deductions by type, and net pay for each pay period; 9 A time and attendance history showing hours or days worked by type of pay for each pay period; and l A leave history showing beginning balances, leave accruals, leave usages, and ending balance, by type for each period. Reporting Requirements. Provide. the capability to generate routine human resources and payroll reports that are prescribed by the functional users. The system must contain ad hoc reporting, and should also include data browsing tools with rapid-response, graphically-oriented, and user-friendly access to the system database. 26 Human Resources & Payroll Systems Requirements ReRorting&~on,ciliatio_n, a,nd Records Reten,ti,oq. .’ Produce employee earnings statements detailing the composition of gross p$ay,;deduceoy, and,+! pay for t+e,pay period and year to date (el?ctronic and paper copjes). 2,‘. A :I ,L .’ : Produce managerial reports to facilitate monitoring of human resources costs, leave authorization, ‘md personnel actions by human resources/payroll St&members and by operational supervisors oy,managers. Produce all reports and vouchers necessary to recognize payroll e~pens~~+ab@h related receivables, .and disburse- all related payments. Produce supporting detail registers or subsidiary ledgers. Provide an output matrix ofreports that describes report by title, purpose, frequency, dist+buti+ level, and tile media used to distribute. External Reporting: The system must provide for auto,matic data c&version and e.le+ronic wavfcr of rqqvircd $ata, to the OPM l and other recipients of Governmentwide reporting information. .’ I,.:. ~, -. Regulatory Compliance and Administration: The external reports fulf& statutory and regulatory mandates, 4s well as management reporting requirements of Executive Branch and ,Ad+nistration leadership.. &horlgk agencies retain the ability to design systems and data structures to conform to their indikdual business s&tegies, information sharing and data transfer aniong agencies is essential to,,t$F moc@rr@tion~an~ $kien~y:ofthe human resources and payroll data collection processes. Appendix A contains a listing of relevant statutory and regulatory’ references. I! ,,..;‘i ,’ Reporting Requirements. Produce data required by Treastuy; !RS; $e Social .Sec+ty Adminjspatiqn; the . Department of Labor; OPM; Equal Employment Opportkiity Commi&on; Federal Retirement Yl$rift Inv~+,~~nt Board; Federal Reserve Banks; OMB; Department of Health and Hvan Services; and state, &al, and other taxing authorities. Examples include Central Personnel Data File (Cl?DF) Submissions, Standwd Fqr+ 113; W-2 Reporting; Retirement Records, and reports on the tie of various methods of payments. :: Reconciliation: ,, l Agency systems must provide for +e re~oncili$on’of human reso1vce.sand payroU,data within thq systems,, for comparison and reconciliation with that of disbursing, accounting, and other administrative systems/subsystems/modules to ensure accuracy, completeness, and data integrity. Regulatory Compliance and Administration: The systems must be designed to comply with all statutes, regulations, and guidelines that apply to hardware, sofgware, telecommunications, ;und i.+rnal controls. Appendix A contains a listing of relevant statutory and Fegulatory references. : Functional Requirements: Disbursing data are reconciled with payroll data to provide askrance that all disbursem+.s authorized for payment by’f& ‘p~y~ofl’&tjfj,~g ~f-&~.~w&re di&&& Co&bletely &,d accul-a,&l$ .I. ” I,: ‘_.A::. ‘/, ): Human resource data are reconciled to provide assurance that all employees on the payroll are bona fide and that all earnings, entitle.ments, and benefits are being computed as authorized and recogniked in the human rekources system. Health insurance enrollment data are made available to carriers so that payroll and carrier records can be verified, Human Resources & Payroll Systems ReqUrements 27 ‘.>.’ Rk’porting:,’ Reco,nciliatiod,‘,ah Recoi’ds Ret’eidir’t’, Maintain dtita that is reconciled to pa&to the’Core~fm&zial systc+nd cogt accounting modules to update fund balances with Treasury and other assets, expense and liability accdtints, appropriations and oth&r cost centers for the * ,, payroll, in&ding employei contri@ions: . ‘, ” ,, ” .‘I’ ./, 3 Provide for tax deduction repbrting, reconciling, and correction processing,for each taxing authority. Derive summary totals of earnings, deductions, co+ibutioti, and paid boys for control puirposei and to faeilittite , ., reconciliation. ; : : ,, Provide for transfers for separating,or transfeiring employees with the nejct regular payroll. Generate Monthly Employee Report (SF 113A) and the Monthly Full-Time Equivalent (FTE) Re.port (SF 113G) to OPM. Provide disbursement voucher data for verification and ‘certif?catidn:of the payroll prOcess. Generate repprts of pay and benefit transections required by the agency Core fmancia! system. Notify agency hvan resources and payroll office St&of inco&ct or rnissing’data. Compile employee data related to health insurance enrollin+ for vdidation plirposes. Store audit trail data in the standard human resources/payroll data files. Generate detail registers or sUb$idiajr,ledgers which su@ort all vbuchers, accounting entries, and disburs’e.melJts i authorized bythe payroll off%ze. , Provide a report for health benefits deductions not taken (‘e.g., for an employee on leave without pay). Provide a report of employee debt, caused by prior-period adjustments or current-period computation, to be used in admi&tr&ive collec@on. Generate retention records for Reduction in Force (RIF) b@&d on competitive position, tenure, and retention requirements. Records Retention: l Agency systems nipt niaintain, s&e, and i>eimit ready retrieval of employment and payroll data. The time frames for varying pieces of this requirement differ deeendjllg on the subject matter and the system must be sticiently flexible to retain and purge data consistent with the varying record keeping requirements. l Destruction of records created within the Federal government must be approved by the National Archives and Recbrds Administration (NARA), per 36, C.F.R 1228. Basic payroll records are currently authorked for disposal by General Records Schedule 2, Payr&g a$ pay Adr+t$st#i~n Recgr,ds, and General Records Schedule 20, Electronic Records. (Copies may be obtained from your agency’s records officer or from NARA.) For payroll records not covered by this authority, or for any q\lestions regarding the disposition of Federal recqrds, please cqntact: National Archives and Records Administration (NARA) 7th Street and Pennsylvania Avenue NW Washington, DC 20408 .---- 28 Human Resources & Payroll Syitems Requirements Reporting,.Reconciliation,. -- and, Records --_.-A--..-dRetentiop ;,, ,,, .” ! ,, ,, ::‘, The telephone number for the Life Cycle Manage&&t Division is (301). 713,-7!10. : ‘.! ., ,) b ~egklatory.Compliance and Administration: NARA and other specific staq& rkgulatiq& and guidelines, , ’ applicable to all governmentwide, agency, and organization spe&ic programs. Apiendix A contains a listing bf relevant statutory and regulatory references. ,, . &mctiofgl Requirements: “’ “‘. i : ., : Maintain and/or dispose of personnel and pa&U records in accordance with gtivereentwide and agency spGfk guidelines. r ‘,: ‘,.I ‘.’8’. ‘.j ,, ‘. - ,Human Resources & Payroll Systems Requirements .29 ,‘, General Systems Requirements , ,,, For information on internal controls, systems architecture, software documentatioh, and other ‘related issues relative to human resources and payroll systems development, operations, and maintenance, reference applicable sections through the JFMII? Framework$r Federal FinaizciaEManagement Systemsdocument. System Interfaces: l The human resources-payroll system, at the standard and/or agency-level, must be able to accept, process, and report on transactions withother internal and external-sjrstems:. The system must.record and track such transactions and related information in order to provide the basis for central control. This may require a custom interface to properly identify and format the transactions. The system must: l Provide system ,flexibility in accepting data input from multiple media that recognizes the unique data input requirements of interface systems. l Subject all transactions from interfacing systems to the standard human resources-payroll system edits, validations, and error-correction procedures. l Provide system capability to customize data input, processing rules, and edit criteria. Provide flexibility in deftig internal operational procedures and in supporting agency requirements. l Provide the capability to identify and process transactions from other systems that enter and update the standard human resources-payroll system. l Provide system capability to allow users to customize output for reporting and providing interfaces to other systems necessary to meet agency requirements for external processing (e.g., retirement processing, general ledger posting, budget formulation, budget reconciliation, and budget execution). Other General Systems Issues: ‘0 A variety of general systems requirements, including data stewardship, systems architecture, systems. integration, internal control, and others are contained in the JJ?MIP FFMSR-0, Janilary 1995, entitled Frammork fir Federa Financial Miznagement Systems.The Framework document, along with all other JFMIP requirements documents, can be found at: www/fmancenet.gov/fed/jfmip/jfmip.htm 30 Human Resources 81Payroll Systems Requirements f Appendix A:References General: Examples of relevant laws, regulations, and publicatitins. ” l United States Code (USC), Title 5, Title, 26, Title 42; l Code of Federal Regulations (CFR), Title 5; l OPM’s CSRS and FERS Handbook for Personnel and Payroll OfXces; l OPM’s FEHB Handbook for Personnel and ,payroll Of&es; ,. i l OPM’s FEGLI Handbook for Personnel and Payroll Offices; ‘I:’ l OPM’s Guide to Personnel Data Standards; ,: l OPM’s Guide to Personnel Recordkeeping; :, l OPM’s Guide to Processing Personnel Actions; ; l OPM’s Guide to the Central Personnel Data File; l “U.S. General Accounting Of&e Policy and Procedures Manual for +.id~~c~ of Federal Agencies,” specifically: l Title 2, ccAccounting”; ,i l Title 6, “Pay, Leave, and Allowances;” l Title 8, “Records Retention;” ,, ‘,,, ‘.’ l Treasury Financial Manual; ‘!‘, ! I 9 Statement of,Federal Financial Accounting Standards No; 4, “Managerial Cost Accounting Standards”, July 1995. See GAO/AIMD-21.1.1 May 1997, pp. 331-394 and OMB, GPO ‘s/N 041-001-00457-i; l Statement of Recommended Accounting Standards ‘N&iber 5 “Accounting for Liabilities of the Seder al Government?, September 1995;. l OMB Bulletin 93-11, “Fiscal Responsibility and Reducing Perquisites;” 6 OMB Circulai No. A-34, Ynstructions’on Budget Execution;“. : l OMB Circular No. A-123, “Management Accountability and Control;” l OMB Circular No. A-127, “Financial Management Sj7stems;” l OMB Circular No. A- 130, “Management of Federal Information Resources;” l Framework for Federal Financial Management Systems; Position Management and Classification: Examples of provisions related to position management and classification can be found in: l Classification Act, Pub. L. No. 92-392 (1949); l 5 C.F.R. Part 214, Senior Executive Service; ‘, .” l 5 C.F.R. Part 340, Other than full-time career employment (Part-tinie, seasonal; on-call, and inteK&tent); l 5 C.F.R. Part 511, Classification under the General Schedule; l 5 C.F.R. Part 532, Prevailing rate systems; Recruitment and Staffing: Examples of provisions related to recruitment and staffitlg can be found in: l 5 C.F.R. Part 6, Exceptions from the competitive service; Human Resources & Payroll Systems Requirements 31 ; Appendix A: References --- ; , 5 C.F.R. Part 8, Appointments to ‘overseas positions; 5 l / l 5 C.F.R. Part 211, Veteran preference; 1F l 5 C.F.R. Part 212, Competitive service and competitive status;, ,’ 1 l 5 C.F.R. Part213, Excepted service; ., . 5 C.F.R. Part 300, Employment; 1 l 5 C.F.R. Part 330, Recruitment, selection, and placement; l 5 C.F.R. Part 301, Overseas Employment; / l 5 C.F.R. Part 302, Employment in the excepted service; l 5 C.F.R. Part 304, Expert and consultant appoinkents; l 5 C.F.R. Part 307, Veterans readjustment appointments; l 5 C.F.R. Part 308, Volunteer service; : I l 5 C.F.R. I!& 310, Employment of relatives; l 5 C.F.R. Part 315, Career and career-conditional employmek; l 5 C.F.R. P&t 316, Temporary and terkn ehployment; l 5 C.F.R. Part 317, EmphyFent in the Senior Executive Service; . 5 C.F.R. Part 319, Employment in senior-level and scientifk and professional posit&s; ’ *, l 5 C.F.R. Part 330, Recruitment, selection, and placement; l 5 C.F.R. Part 335, I)romc$on and internal placement; .. l 5 C.F.R. Part 340, Other than full-time career employment (Part-time, seasonal, on-call, ‘hd intermittent); l 5 C.F.R. Part 351, Reduction in force; , l 5 C.F.R. Part 534, Pay under other systems; l 5 C.F.R. Part 536, Grade and pay retention; :. ’ : l 5 C.F.R. Part 591, Allqwances and differentials; :: ,, I Personnel Action Administration: Examples of provisions /related to personnel action admi+ration can be ,~ found in: l 5 C.F.R. Part 1, Coverage and definitions; l 5 C.F.R. Part 3, Noncompetitive,.acquisition of status; , l 5 C.F.R. Part 293, Personnel records; 5 C.F.R. Part 294, Availability of.offii-ial ,’ information; : _, l I. l 5:C;F.R. Part 297, privacy procedties for pe)rsonnel records; i ’ :: l 5 C.F.R. Part 581, Processing garnishment orders for child support and/or alimony; l 5 C.F.R. Part 582, Commercial garnishment of Federal employees’ pay; Benefits Administration: Examples of provisions related to bcnef$s administration can be found in: l 5 C.F.R. Part 831, Retirement; 32 Human Resources & Payroll Sys.tems Requirements - Appendix A:‘,References ~..._-_--_~ l 5 C.F.R. Part 842, Federal Employees Retirement SystemkGeneral Administration;. ” : l 5 C.F.R. Part 870-874, Federal Employees Group Life Insurance l 5 C.F.R. Part 890, Federal Employee Health Benefits Program ” : . 5 C.F.R. Part 1600-1699, Federal Retirement Thrift Investment Board , Labor-Management and Employee Relations: Examples of provisions related to labor management and employee relations can be found in: # ‘.’ ,‘.. ‘ .’ : . vI /. l 5 C.F.R. Part 293, Personnel records; l 5 C.F.R. Part 359, Removal from the Senior Executive .’WSeivice: guaranteedA placement :m other personnel systems; ., ;I,‘; ,’ ’ i ’ , :,i,” ./ /’ .: l 5 C.F.R. Part 430, Performance management; l 5 C.F.R. Part 432, Performance based reduction in grade and removal actions “’ ” l 5 C.F.R. Part451, Awards; I? ! I_” .’ .’ : l 5 C.F.R. Part 752, Adverse actions; 5 C.F.R. Part 771, Agency administrative grievance system; : l +’ ’ : .’ ,. : Work Force Development: Examples of provisions related to wok force ‘development can be found”m: .. ; - /, l 5 C.F.R. Part 410, Training; ” 8, ,.I _ :’ Time and Attendance Processing: Examples of provisions related to time, and ‘attendance processing can be, :, fo~d~lt,. , ‘... ; 3 ‘, ! , ‘I ; ‘. l 5 C.F.R. Part 616; Hours of duty; ,. ,” l “U.S. General Accounting Office Policy and Procedures Manual’for Guidance of Federal Agencies,” Title 6, “Pay, Leave, and Allowances,” Chapter. 3, Time and Attendance; ; , I’ Leave Processing: Examples of provisions related to leave processing can be found’& l 5 C.F.R: Part 531, Pay Under &General Schedule; ’ ’ ’ ” ’ ” ’ l 5 C.F.R. Part 532, Prevailing rate systems; : ,; ,,,, ’ l ‘5 C.F.R. Part 550, Pay administration (general); l 5 C.F.R. Part 551, Pay administration under the Fair Labor Standards Act; : l 5 C.F.R. Part 630, Absence and leave; ; l “U.S. General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies,” Title 6, “Pay, Leave, and Allowances,” Chapter. 6, Leave and Allowances; ‘; Pay Processing: Examples of provisions relatedto pay processing can be‘found in: : ^ ,’ l Title 5,5514, Tax Levies; : , l 5 C.F.R.‘Part 179, Claims collection’standakls; Human Resourdesj& Payroll Systems Requirements -----.- ._ - L Appendix,A: References ; /, II t l 5 C.F.R. Part 251, Agency relationships with organizations representing Federal employeesand other organizations; ‘, ‘,, : l 5 C.F.R. Part 530, Pay rates and system,; ,’ l 5 C.F.R. I&t 531, Pay under the General Schedule; ‘, ’ l 5 C.F.R. Part 532, Prevailing rate systems; l 5 C.F.R. &rt 534, Pay under other systeti; h’ :.; :” l 5 C.F.R. Part 550, Pay administration (general); . 5 C.F;R. Part 551, Pay administration under the Fair Labor Standards Ace l 5 C.F.R. Part 572, Tkkel,abd ti-ansl%k&~~ kpdnses; rieti’ kppointed and interviekes; ” l 5 C.F.R. Part 575, Recruitment and relocation bonuses; retention allowances; super@sory difTer:ntials; ,5’ l 5 C.F.R. Part 831, Retirement; ,’ l 5 C.F.R. Part 841, Federal kmployees ‘ketirement System-General Ad.r&&kation; l 5 C.F.R. Part 870, Federal employee’s group life iitsurance program; l 5 C.F.R. Part 890, Federal Employees Health Benefits Program; l Treasury Financial Manual, Vol. 1 Part 3, Payroll’ Deductions ,and Withholdings; . “U.S. General Accountig Off& Pal@ and ProceduresManual for Guidance of Federal Agenciks,)) Title 6; UPay, Leave, and Allowances,” Chapter. 1, Introduction; ?, Time and Attendance;> 4,,,Gross Pay; 5, Deductions; 6, Leave and Allowances; and 7, Disbursements; Labor Cost and Distribution: Examples bf provtiiohs r&ted to labor cost and dik.ribLltion cati.be found in: l Statement of Federal Financial Accounting Standards No. 4, “Managerial Cost Accol+ng Standards”; l ‘Zr.S. General Accounting Offke Policy and Procedures Manual for Guidyce of Federal Agencies,” Title 6, 3 ‘,‘, “Pay, Leave, and Allowances, “,Chrilj;ter: 2, Overall Re&rementsi ‘Reporting, Reconciliation, and Records Retention: Examples of provisions related to reporting can be found ? 1.. ill: l 5 C.F.R. Part 293, Personnel records; l “U.S. General Accounting Offke Policy and Procedures Manual for Guidance of Federal Agencies,” spkcifically: l Title 6, “Pay, Leave, and Allowances;” l Title 8, “Records Retention;” 34 Human Resources & Payroll System,s Requirements ; AppendixB: Glossary I ‘,’ Offcycclepaymevtts Payments to employees pther than during the normal pay process when payments are made .for all employees Riiwrti~ l&ah Replacement checks for lost checks ltcqui-ts JFMII? systems requirements are either mandatory or value added. The definitions of these two categories are: Mandatory requirements describe what the system must do and consists of the minimum acceptable functionality, necessary to establish a system, or are based on Federal laws and regulations. Mandatory requirements are those against which agency heads evaluate their systems to-determine substantial compliance with systems requirements under the FFMIA. These requirements apply to existing systems in operation and new systems planned or under development. Value-a4Ucd Value added requirements describe features or characteristics and may consist of anji-Combination df the followin& (1) using state of the art technology, (2) employing the preferred or best business practices, or (3) meeting the special management needs of an individual agency. Value-added, optional, and other similar terminology may be used to describe this category of requiremerits. Agencies should consider value added features when judging systems options. The need forthese value-added features in agency systems is left to the discretion of each agency head. Tbhdpartypqwen~ Payments to anyone &her than the employer and the employee, e.g., health and life insurance companies. Tmr of duty Employee work schedule, e.g., 9:00-a.m. to 5:30 p.m., Monday through Friday, including half an ho& for lunch. ‘8 W.zdistribz@d mploymmt bm@ts May include: (1 j liabilities associated with employment benefits that have not been distributed by the agency, e.g., accrued annual leave liabilities, or (2) expenses not p+id by the agency, e.g., retirement-related.pension or insurance expenses tecorded during the active emplo$+ment years of an employee that are paid by OPM after an employee retires. , u&s ofpay Pay basis or units on which an employee’s rate of pay is based. .., , . . Human Resources 81Payroll Systems Requirements 35 _--.._--..--_ .,-- Appendix C:Contributors ‘.. Joint Fi~nci~l2i4hqg~t Imphnwnent Pro&ram Ofice oj’Man+gebnt izndBd&t OFMTp) Steer&g Chmmittee Jean Holcombe Donald V. Hammond, Chair ‘. U.S. Department of the Treasury G. Edward DeSeve, former Chair U.S. GeneralAcconntiqg Ofice Oflice of Management and Budget Robert W. Gramling Karen Cleary Alderman Bruce. Michelson Janett Smith Executive Director, JFMIE I,,., I’ Susan Mason :. _. Thomas R. Blsom ’ .I v: i. Deparhnen &&+lture General Services Administration ‘., Gene L. Dodaro TedDavid’ ,’ Allan Johnson. U.S. General Accounting Office Richard (Rick) E. Minella Norwood J. Jackson Gemral. Services Administration Oflice of Management and‘Budget J. Gilbert Seaux Ronald H. Rhodes Office of Personnel Management Tom Caporizzo Ed Nasalik Joint ~inundai~appnent Im&nwment F&ram Departm&tofDt$vise ” ! , Karen Cleary Alderman Ed Grysavage Executive Director, JFMII? (Project Co-Chair) Marianne Morahan Dennis S. Mitchell Susan Eldridge Systems Accountant Patrice Williams Department of Veterans Aflairs (Detailee from the Department of Energy) Dianne Shields Robert C. Jury Larry Staley (Intern from the University of Iowa) DepartmmtofLubor Departmmt of Interior Ken Bresnahan R. Schuyler Lesher James Brown Deputy Chief Financial Oflicer, (Project Co-Chair); James R. Bates Chair, Financial Systems Committee, Chief Financial Officers’ Council Wayne Howard ’ -_ 36 Human Resources & Payroll Systems Requirements - --, Appendix --~-----..- C. Contributors Department ofJ&stice Cheryl Cotton Tammy Ware Department of Commerce Administrative O&e of the U.S. Courts David LeMay Patricia Ellis Department of Health awd Human Sties’ O&e of Personnel tina~emfmt Kathy Orpin Juanita Davis Human Resowces Techrtology Council Richai-d Pontenrose U.S. Environmental Pmtectbnk@ncy Peggy Maclin Rosa Clark Federal E~evxyi%va4gementk@ncy James H. Lemly, Jr. Small l3mhessAdministration Barbara Gales Katrina Sterling Nathal Aeronawicsand Space Administration David Havrilla --_-__ Human Resources & Payroll Systems Requirements 37 ‘i . .-- l- i i: - Requestsfor Publications JFMD? documents may be accessedelectronically on FinanceNet Internet site: http://~~~~~financenet.gov/financenet/fkd/jfmip/jfmip.htm The JFhJIl? uses the General Accounting Office’s Document Distribution Center to fulfill publication requests which are made after mail list distribution. The first copy of each publication requested is free. Additional copies are $2 each. Orders for 100 or more copies to be mailed to a single address ‘are discounted 25%. 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Human Resources and Payroll Systems Requirements
Published by the Government Accountability Office on 1999-04-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)