oversight

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)

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;.




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                                                              ,   ).’           ,,,                       ,,        ”               ,..’


                                                                                                                                                                                           :




                                                                                                                                                                 :

                                                                                                                                                                                            ;        -.                              !
                                                                                                                                           ,’




                                                                                                                                                                                                                            . .

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:




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