[Federal Register Volume 69, Number 238 (Monday, December 13, 2004)]
[Notices]
[Pages 72224-72225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27271]


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OFFICE OF MANAGEMENT AND BUDGET


Interim Final Revision of OMB Circular A-127, ``Financial 
Management Systems''

AGENCY: Office of Management and Budget (OMB), Executive Office of the 
President.

ACTION: Notice.

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SUMMARY: OMB Circular No. A-127, ``Financial Management Systems,'' 
dated July 23, 1993, prescribes policies and standards for executive 
departments and agencies to follow in developing, operating, 
evaluating, and reporting on financial management systems. This 
Circular was modified on August 9, 1999 to establish a process for 
certifying off-the-shelf financial management software for agency use. 
OMB is issuing this interim final revision to Circular A-127 to 
incorporate a realignment of responsibilities for issuing financial 
system requirements and certifying software. These changes revise 
Sections 7g, 7i, 8d, 9b, and 9c, delete Section 9a(3); and add new 
Sections 8g and 9d.

DATES: The interim final revision is effective December 7, 2004. 
Comments on the interim final revision must be received on or before 
January 3, 2005.

ADDRESSES: Comments on this interim final revision should be in writing 
and addressed to Wayne Leiss, Chief, Federal Financial Systems Branch, 
Office of Federal Financial Management, Office of Management and 
Budget, 725 17th Street, NW., Room 6025, Washington, DC 20503. You are 
encouraged to submit your comments by facsimile to 202-395-3952, or by 
e-mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Wayne Leiss using the address 
information above. You may also call (202) 395-3993.

SUPPLEMENTARY INFORMATION: OMB is revising Circular A-127, ``Financial 
Management Systems,'' to improve coordination among the operators of 
agency financial management systems, vendors of financial management 
software, E-Gov shared services, and the Department of Treasury. The 
revisions incorporate the transfer of responsibilities from the Joint 
Financial Management Improvement Program to the Chief Financial 
Officers Council and the Office of Federal Financial Management. These 
updates are effective immediately.
    A revised version of the entire Circular will be made available on 
the OMB Web site (http://www.whitehouse.gov/omb). All questions or 
inquiries concerning OMB Circular A-127 should be addressed to the 
Office of Federal Financial Management, Federal Financial Systems 
Branch, telephone number 202-395-3993.

Joshua B. Bolten,
Director.

Transmittal Memorandum No. 3 Revisions to OMB Circular A-127

    This Transmittal Memorandum replaces and rescinds Circular A-127 
Transmittal Memorandum No. 2, dated June 10, 1999, which revised 
Circular A-127, ``Financial Management Systems'' dated July 23, 1993. 
Transmittal Memorandum No. 2 revised Sections 8d and 9b of A-127 and 
added new Sections 9a(3) and 9c. This Transmittal Memorandum revises 
Sections 7g, 7i, 8d, 9b, and 9c. It deletes Section 9a(3) and adds new 
Sections 8g and 9d.
    The changes to Circular A-127 are as follows:
     Section 7g: ``Joint Financial Management Improvement 
Program (JFMIP)'' is replaced by ``Office of Federal Financial 
Management (OFFM).''
     Section 7i: ``JFMIP'' is replaced by ``OFFM.''
     Section 8d is deleted in its entirety and replaced with 
the following:
    8d(1) Use of ``Off-the-Shelf'' Software. Agencies replacing 
software to meet core financial system requirements must use ``off-the-
shelf'' software that has been tested and certified through the Chief 
Financial Officers Council (CFOC) software certification process as 
meeting OFFM core financial system requirements. Agencies may purchase 
this software or contract for a service that operates this software 
using the strategy and procurement vehicle they believe will best 
enable them to meet their needs in a timely and effective manner 
following the competition requirements associated with the procurement 
vehicle being used to conduct the acquisition.
    OMB policy pertaining to using ``off-the-shelf'' software is 
contained in OMB Circular A-130 and must be followed when replacing 
financial management systems.
    8d(2) Software Certification Testing. ``Off-the-shelf'' software 
will be tested to

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ensure that it meets core financial system requirements as defined in 
the Core Financial System Requirements document published by OFFM. The 
CFOC will coordinate the testing process and issue software 
certifications. Information on the details of the certification testing 
process and its results will be available to any interested Federal 
agency for any certified software package.
     A new Section 8g is added and reads as follows:
    8g. Interface Requirements Management. Agencies operating or 
establishing contracts for financial reporting, transaction processing, 
or other services that are or will be interfaced to multiple agencies' 
financial systems must coordinate with OFFM the deployment of these 
services and changes to them. OFFM will establish interface 
requirements for these services and incorporate them into the Core 
Financial System Requirements or other requirement documents, as 
appropriate. OFFM will consider efficiency and cost-effectiveness when 
establishing deployment dates for new interface requirements.
     Section 9a(3) is deleted, section 9a(4) is renumbered 
accordingly.
     Section 9b is revised to read as follows:
    9b. GSA Responsibilities. GSA will make procurement vehicles 
available to agencies for acquiring software that has been certified 
according to the processes in Section 8d(2).
     Section 9c is revised to read as follows:
    9c. CFOC Responsibilities. The CFOC will establish processes for 
testing ``off-the-shelf'' software supporting core financial system 
requirements that include:
    [cir] Developing and administering the certification test,
    [cir] Notifying GSA when a software package successfully completes 
the certification test,
    [cir] Providing interested parties with information on the core 
financial system requirements and their related testing scenarios, and
    [cir] Providing interested parties with details on the results of 
the certification tests for certified software packages.
    [cir] A new Section 9d is added and reads as follows:
    9d. Transition. All software certifications previously issued by 
the Joint Financial Management Improvement Program (JFMIP) shall be 
deemed to have been issued by the CFOC.
    All financial management system requirements documents and other 
guidance issued by the JFMIP are transferred to OFFM and remains in 
effect until modified. OFFM will issue guidance memoranda as needed to 
clarify any transition issues. OFFM will issue guidance memoranda as 
needed to implement the requirements of this Circular.
[FR Doc. 04-27271 Filed 12-10-04; 8:45 am]
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