Benefit System Requirements: Checklist for Reviewing Systems under the Federal Financial Management Improvement Act

Benefit System Requirements: Checklist for Reviewing Systems
under the Federal Financial Management Improvement Act
(01-OCT-03, GAO-04-22G).

The Federal Financial Management Improvement Act of 1996 (FFMIA)
requires, among other things, that agencies implement and
maintain financial management systems that substantially comply
with federal financial management system requirements. These
requirements are detailed in the Federal Financial Management
System Requirements series issued by the Joint Financial
Management Improvement Program (JFMIP) and in the guidance issued
by the Office of Management and Budget (OMB): Circular A-127,
Financial Management Systems, and the January 4, 2001, Revised
Implementation Guidance for the Federal Financial Management
Improvement Act (FFMIA) of 1996. JFMIP intends for the
requirements to promote understanding of key financial management
systems concepts and requirements, to provide a framework for
establishing integrated financial management systems to support
program and financial managers, and to describe specific
requirements of financial management systems. We are issuing this
checklist, which reflects JFMIP's Benefit System (JFMIP-SR-01-01,
September 2001), to assist (1) agencies in implementing and
monitoring their benefit systems and (2) managers and auditors in
reviewing their benefit systems to determine if they
substantially comply with FFMIA. Among the types of benefit
programs covered by these systems would be those for retirement,
disability, death, survivor, and others not related to health
care. There is no requirement that this checklist be used in
assessing benefit systems. Rather, it is provided as a tool for
use by experienced staff and is one in a series of documents we
have issued to assist agencies in improving or maintaining
effective operations. This checklist, the JFMIP source document,
and the two previously mentioned OMB documents should be used
concurrently. Those using this tool must apply experienced
judgment in its interpretation and application. They must
consider the impact of the completed checklist on an entire
benefit system and whether the system, as a whole, substantially
complies with requirements.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-04-22G
ACCNO: A08706
TITLE: Benefit System Requirements: Checklist for Reviewing
Systems under the Federal Financial Management Improvement Act
DATE: 10/01/2003
SUBJECT: Employee benefit plans
Federal agencies
Federal legislation
Federal regulations
Financial management
Financial management systems
Internal controls

******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-04-22G

United States General Accounting Office

GAO

October 2003

BENEFIT SYSTEM REQUIREMENTS

Checklist for Reviewing Systems under the Federal Financial Management
Improvement Act

The Web version of this report was reissued on 08/31/04 because of a
change to page 1--In the first sentence of the last paragraph under
Preface, the words "exposure draft" were deleted after "This checklist."

GAO-04-22G

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.

______________________________________________________________________________

PREFACE

______________________________________________________________________________

October 2003

We are issuing this checklist, which reflects JFMIP's Benefit System
Requirements
(JFMIP-SR-01-01, September 2001), to assist (1) agencies in implementing
and monitoring
their benefit systems and (2) managers and auditors in reviewing their
benefit systems to
determine if they substantially comply with FFMIA. Among the types of
benefit programs
covered by these systems would be those for retirement, disability, death,
survivor, and
others not related to health care.

There is no requirement that this checklist be used in assessing benefit
systems. Rather, it
is provided as a tool for use by experienced staff and is one in a series
of documents we
have issued to assist agencies in improving or maintaining effective
operations. (See the
last page of this document for a list of related products.) This
checklist, the JFMIP
source document, and the two previously mentioned OMB documents should be
used
concurrently. Those using this tool must apply experienced judgment in its
interpretation
and application. They must consider the impact of the completed checklist
on an entire
benefit system and whether the system, as a whole, substantially complies
with
requirements.

This checklist is available on the Internet on GAO's home page
(http://www.gao.gov)
under "Other Publications" and the subheading "Accounting and Financial
Management."
Copies of the JFMIP document can be downloaded from the JFMIP Web site
(http://www.jfmip.gov) under "JFMIP Documents" and the subheading "System
Requirements."

Jeffrey C. Steinhoff
Managing Director
Financial Management and Assurance

(BLANK)

______________________________________________________________________________

CONTENTS

______________________________________________________________________________
Page Number

Overview

Authoritative Guidance
How to Use This Checklist

Benefit System Requirements

Functional Requirements

Claims Acceptance and Tracking

Claims Processing
Administrative Process
Eligibility Determination Processes
Computational Processes

Benefit Payment Administration
Payee Information Maintenance Process
Payment Warehousing Process
Funds Availability Editing
Commitments
Obligations and Expenditures
Analysis
Payment Execution Process
Payment Confirmation and Follow-up Process

Recovery Receivable Management
Recovery Receivable Establishment Process
Recovery Receivable Servicing Process
Collection Process
Offset
Funds Control

Accounting for Benefit Transactions
Entity Definition
Account Definition
Transaction Definition and Processing
Audit Trails

7 8

14 14 18 21

25 25 28 30 32 34 36 37 44

47 47 50 54 57 59

60 60 61 62 68

______________________________________________________________________________

CONTENTS

______________________________________________________________________________

Page Number

Reporting 70 External Reporting 70 Internal Reporting 72 Performance
Reporting 74 Compulsory Notifications 76

Interfaces 78 Internal Interfaces 78 External Interfaces 80

Quality Assurance and Maintenance 82

Technical Functions 87 General 87 Security and Internal Controls 88 Access
to Information 90 Data Entry 94 Archiving and Purging 96

Information Stores 98

Application Information Stores 98 Universal Data Elements 98 Federally
Administered Retirement Benefit Systems 101 Federal Employment Retirement
Benefit Systems 103 Disability Benefits 105 Death Benefits 106 Survivor
Benefits 107

Other Benefits 108

Claimant Master Record Information Store 109

Financial Information Store 111

Figure 1: Agency Financial Management Systems Architecture 6

Related GAO Products 113

_____________________________________________________________________________

ABBREVIATIONS
______________________________________________________________________________

ACH automated clearinghouse
ALC agency location code
CDO chief disbursing officer
CFO chief financial officer
C.F.R. Code of Federal Regulations
CSRS Civil Service Retirement System
DCA Debt Collection Act of 1982
DCIA Debt Collection Improvement Act of 1996
DOD Department of Defense
DOL Department of Labor
EFT electronic funds transfer
FACTS Federal Agencies' Centralized Trial Balance System
FASAB Federal Accounting Standards Advisory Board
FERS Federal Employees Retirement System
FFMIA Federal Financial Management Improvement Act of 1996
FMS Financial Management Service
FFMSR Federal Financial Management System Requirements
GMRA Government Management Reform Act of 1994
GPRA Government Performance and Results Act of 1993
HHS Department of Health and Human Services
IVR interactive voice response
IRS Internal Revenue Service
JFMIP Joint Financial Management Improvement Program
OMB Office of Management and Budget
OPM Office of Personnel Management
RRB Railroad Retirement Board
SFFAS Statement of Federal Financial Accounting Standards
SGL U.S. Standard General Ledger
SSA Social Security Administration
SSN Social Security number
TAFS Treasury account fund symbol
TFM Treasury Financial Manual
TIN taxpayer identification number
TOP Treasury Offset Program
U.S.C. United States Code

VA Department of Veterans Affairs

____________________________________________________________________________

OVERVIEW
______________________________________________________________________________

FFMIA requires, among other things, that agencies implement and maintain
financial management systems that substantially comply with federal
financial management system requirements. These requirements are detailed
in the Federal Financial Management System Requirements series issued by
the Joint Financial Management Improvement Program (JFMIP)1 and in
Circular A-127, Financial Management Systems, issued by the Office of
Management and Budget (OMB). The JFMIP requirements document describes the
federal financial system architecture as consisting of (1) core financial
systems, (2) other financial and mixed systems (including the benefit
system requirements), not all of which are applicable to all agencies, (3)
shared systems, and (4) departmental executive information systems
(systems to provide management information to all levels of management).2
Figure 1 is the JFMIP model that illustrates how these systems interrelate
in an agency's overall systems architecture.

Figure 1: Agency Financial Management Systems Architecture

Source: JFMIP Benefit System Requirements (September 2001).

1JFMIP is a joint undertaking of OMB, GAO, the Department of the Treasury,
and the Office of Personnel Management (OPM), working in cooperation with
each other and with operating agencies to improve financial management
practices throughout the government. The program was initiated in 1948 by
the Secretary of the Treasury, the Director of the Bureau of the Budget
(now OMB), and the Comptroller General. JFMIP was authorized by the Budget
and Accounting Procedures Act of 1950 (subsequently codified at 31 U.S.C.
S: 3511 (d)). The Civil Service Commission, now the Office of Personnel
Management, joined JFMIP in 1966.

2JFMIP has also issued the Framework for Federal Financial Management
Systems (FFMSR-0, January 1995), which defines the framework for
establishing and maintaining financial management systems to support
management and deliver programs of the federal government. GAO published a
companion checklist, Framework for Federal Financial Management System
Checklist (GAO/AIMD-98-21.2.1, May 1998).

To date, JFMIP has issued 13 of the 15 functional requirements shown in
figure 1. 3

We are issuing this checklist-which reflects JFMIP's first issuance of the
Benefit System Requirements (JFMIP-SR-01-01, September 2001)-to assist (1)
agencies in implementing and monitoring their benefit system(s) and (2)
managers and auditors in reviewing agency benefit systems to determine if
they substantially comply with FFMIA. Five categories of federal benefit
programs covered by these system requirements are retirement, disability,
death, survivor, and a catchall covering things such as education
benefits.

This checklist is not a requirement. It is provided as a tool for use by
experienced staff. This checklist; the JFMIP source document; OMB Circular
A-127, Financial Management Systems; and OMB's Revised Implementation
Guidance for the Federal Financial Management Improvement Act (FFMIA) of
1996, issued January 4, 2001, should be used concurrently. Staff members
who use this tool must apply experienced judgment in its interpretation
and application. They must consider the impact of the completed checklist
on the entire benefit system and whether the system, as a whole,
substantially complies with requirements.

Authoritative Guidance

OMB Circular A-127 and OMB's January 4, 2001, Revised Implementation
Guidance for the Federal Financial Management Improvement Act provide the
basis for assessing compliance with the FFMIA requirements. The OMB
guidance identifies various criteria that an agency must meet to
substantially comply with these requirements. One set of criteria listed
in the OMB guidance is the JFMIP system requirements series.

The source of all the questions in this checklist is the JFMIP Benefit
System Requirements (JFMIP-SR-01-01, September 2001). The JFMIP document
acknowledges that benefit system functionality does not necessarily reside
in a single software application or functional system. In fact, benefit
information may reside in or may be calculated in a number of applications
or systems. The benefit system described in the JFMIP document may consist
of all these applications and/or systems, their interfaces, and the
processes required to manage a benefit properly. It should be noted that
the checklist is based on the existing published JFMIP standards and that
changes in laws, regulations, and standards and practices since the
standards were issued are not included in the checklist.

The JFMIP document segregates functional requirements into two general
categories- mandatory and value-added. The mandatory requirements describe
what the system must do. They consist of the minimum acceptable
functionality necessary to establish a system and are based on federal
laws, regulations, directives, or judicial decisions. Mandatory
requirements are those against which agency heads are to evaluate their

3Thus far, the series includes the (1) System Requirements for Managerial
Cost Accounting (February 1998) (2) Human Resources and Payroll System
Requirements (April 1999), (3) Direct Loan System Requirements (June
1999), (4) Travel System Requirements (July 1999), (5) Seized Property and
Forfeited Assets System Requirements (December 1999), (6) Guaranteed Loan
System Requirements (March 2000), (7) Grant Financial System Requirements
(June 2000), (8) Property Management System Requirements (October 2000),
(9) Benefit System Requirements (September 2001), (10) Core Financial
System Requirements (November 2001), which supercedes the 1999 Core
Financial System Requirements (February 1999), (11) Acquisitions Financial
System Requirements (June 2002), (12) Revenue System Requirements (January
2003), and (13) Inventory, Supplies, and Materials System Requirements
(August 2003), which supercedes the 1995 Inventory System Requirements
(June 1995). Functional requirements for budget formulation and insurance
claims systems have not yet been issued.

systems to determine substantial compliance with system requirements under
FFMIA. These requirements apply to existing systems in operation and new
systems planned or under development. The checklist uses "M" immediately
following the question to indicate a mandatory system requirement.

The value-added requirements describe optional features and may consist of
any combination of the following: (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. Agencies should consider
value-added features when judging systems options. The need for these
value-added features in agency systems is left to the discretion of each
agency head. The checklist uses "V" immediately following the question to
indicate that the item is value-added and not mandatory.

How to Use This Checklist

OMB's 2001 implementation guidance provides chief financial officers (CFO)
and inspectors general with a means for determining whether their
agencies' financial management systems substantially comply with federal
financial management system requirements. The annual reporting required by
31 U.S.C. S: 3512(d) is one means of assisting agencies in determining of
substantial compliance. Agencies can also use this checklist as a tool to
help determine compliance with federal financial management system
requirements.

Completing this checklist will allow agencies to systematically determine
whether specific systems requirements are being met. In determining
substantial compliance, agencies should assess the results of the
completed checklist based on the benefit system requirements taken as a
whole.

The checklist contains three columns with the first citing the question.
Use the second column to answer each question "Yes," "No," or "N/A." Use
the third column to explain your answer. A "Yes" answer should indicate
that the agency's benefit system provides for the capability described in
the question. For each "Yes" answer, the third column should contain a
brief description of how the benefit system satisfies that capability and
should also refer to a source that explains or shows the capability.

A "No" answer indicates that the capability does not exist. For a "No"
answer, the third column should provide an explanation and, where
applicable, a reference to any related supporting documentation (e.g., the
agency is working on modifying or implementing its benefit system to have
the capability available in subsequent years; management believes the
capability is not cost-effective and will not enhance the benefit system's
ability to manage operations). Cost-benefit studies or support for a "No"
answer should be identified in the explanation column. If there are no
cost-benefit studies or other support, a full explanation should be
provided.

"No" answers should not be viewed individually or taken out of context.
Rather, "No" answers should be assessed as to their impact on the overall
benefit system and the extent to which the "No" answers inhibit the entire
benefit system from achieving compliance.

Certain questions within the checklist may not be applicable to the
agency. Answer these question(s) with "N/A" and provide an appropriate
explanation in the third column.

_____________________________________________________________________________

BENEFIT SYSTEM REQUIREMENTS
______________________________________________________________________________

The benefit system requirements document provides high-level functional
requirements for benefit systems that can help financial managers, program
managers, and others control and account for federal benefit programs as
defined in government and agencyspecific statutes, regulations,
guidelines, and need assessments. The benefit system requirements document
is divided into two major sections, "functional requirements" and
"information stores-required data elements," which are described below.

1. Functional requirements identify the major activities that are
characteristic of the federal benefit system. A benefit system tracks the
life of benefit claims from initial receipt through final payment and
maintains a complete history of financial activity relating to those
claims. The federal benefit system primarily consists of nine major
functions and the data processed by those functions. The functions
identified by the JFMIP source document are (1) claims acceptance and
tracking, (2) claims processing, (3) benefit payment administration, (4)
recovery receivable management, (5) accounting for benefit transactions,
(6) reporting, (7) interfaces, (8) quality assurance and maintenance, and
(9) technical functions.

2. Information stores-required data elements refers to the grouping of
related types of data. The term information store (rather than database or
file) is used to avoid any reference to the technical or physical
infrastructure of the data storage medium. Actual data storage (physical
databases and files) must be determined by each agency during system
development and implemented based upon the benefit program's statutory
requirements as well as the agency's technical environment, processing
volumes, organizational structure, and degree of system centralization or
decentralization. The JFMIP source document divides the required data
elements into four major groupings. They are (1) application information
stores, (2) claimant master record store, (3) program criteria store, and
(4) financial information store.

The checklist questions follow the JFMIP source document, JFMIP-SR-01-01,
September 2001, and page number references follow each of the questions.
It should be noted that not all questions will apply in all situations,
and as with the use of any checklist, professional judgment should be
exercised. Using the JFMIP source document and its "Appendix B: Glossary,"
which defines terms used, along with OMB Circular A-127, Financial
Management Systems, and OMB's Revised Implementation Guidance for the
Federal Financial Management Improvement Act (FFMIA) of 1996, issued
January 4, 2001, will help ensure that the user is cognizant of the
background information necessary to fully understand the questions.

Functional Requirements Claims Acceptance and Yes, No or N/A Explanation
Tracking
1. Does the benefit system capture all
applicable and mandatory data elements (i.e.,
universal and appropriate) as specified in the
Application Information Stores 4 section of the
benefit systems requirements document
(JFMIP-SR-01-01)? M (p. 14)5
2. Does the benefit system maintain all data
elements specified in the Application
Information Stores section so information is
readily accessible through standard online
queries 6 or reports until approval7 or denial
of the claim? M (p. 14)
3. By fiscal year 2003, will the benefit system
provide for electronic acceptance of benefit
applications? M (p. 14)
4. If an agency anticipates electronic receipt
of 50,000 or more submittals of a particular
form, will the benefit system allow multiple
methods of electronic signatures for the
submittal of each form, whenever feasible and
appropriate? M (p. 14)

4Application information stores refers to all data recorded from the
source document(s) used in determining eligibility as well as the status
of the review and approval of the application. See questions 333 through
387.

5Unless otherwise indicated, the page number reference is to
JFMIP-SR-01-01.

6These are specified in the claims processing section. See questions 16
through 65.

7Approval would result in the establishment of a master record.

Page 11 GAO-04-22G -Benefit System Requirements Checklist (10/03)
8. When
6. Does the electronic
benefit system 7. For manually methods (e.g.,
capture various submitted Web-based
correspondences, correspondence, communications)
5. Does the including due does the are used to
benefit system process requests benefit system facilitate
provide for submitted by link the claim form
Functional Yes, the electronic various correspondence acceptance,
Requirements No acknowledgment electronic for the does the
Claims or Explanation of electronic mediums, and required action benefit system
Acceptance N/A forms that are does it to one of the incorporate
and Tracking successfully automatically following: a. input and
submitted? M associate the the specific completeness
(p. 14) correspondence application or controls to
with a specific b. the existing ensure that
claim plan of claimant master only complete8
action? M (p. record? M (p. applications
14) 14) are accepted by
the system? M
(p. 14)

8The claimant fills in all the required fields.

Page 12 GAO-04-22G -Benefit System Requirements Checklist (10/03)
9. Does the
benefit
system user 11. For 13. Does the
have the 10. Does the each benefit
ability to benefit claim, system
flag a system store does the 12. Does the provide
claimant's incomplete benefit benefit capabilities
paper-based applications system system to track the
application in accordance associate utilize an status of
Functional Yes, as incomplete with agency a unique alternative due process
Requirements No and to policies and identifier application or other
Claims or Explanation suspend automatically (e.g., procedure appeal
Acceptance N/A further purge initials that proceedings,
and Tracking processing of incomplete or user accommodates when
the applications code) of persons with applicable,
application after a the disabilities? after an
until it is specified employee M (p. 14) initial
properly period? M (p. assigned claim has
completed as 14) to review been denied?
specified by the claim? M (p. 14)
program M (p. 14)
requirements?
M (p.14)

Functional Requirements Claims Acceptance and Yes, No or N/A Explanation
Tracking
14. Does the benefit system maintain a record
of pending claims and the status of other
information, including a. where in the process
an ongoing claim is located, b. who is holding
the claim, c. what actions are needed to
complete the claim, d. whether additional
information is needed, and e. accommodation of
explanation codes to indicate the reason why
the claim is pending? V (p. 15)
15. Does the benefit system allow the user to
update the status of pending claims and other
information? V (p. 15)

Page 14 GAO-04-22G -Benefit System Requirements Checklist (10/03)
20. Does the
benefit
system
either
provide the
17. Does the user with
benefit system 18. Does the the ability
have the benefit system 19. Does the to update a
16. Does the ability to accommodate benefit claimant's
benefit system date and time automated case system master
Functional utilize stamp due workload indicate if record with
Requirements Yes, claimant data process distribution the benefit the results
Claims No that have been requests and by providing payment of a manual
Processing or Explanation submitted other for various calculation claim
Administrative N/A electronically time-sensitive claim routing or validation
Process automatically correspondence options 9 as verification or manual
without manual that have been determined and thereof has verification
intervention? received maintained by occurred of the
M (p. 15) through the system manually? M benefit
electronic administrator? (p. 15) amount or
mediums? M (p. M (p. 15) allow for
15) the creation
of a new
master
record, if
none exists?
M (p. 15)

9For example, does it provide for the ability to route claims for manual
validation?

Functional Requirements Claims Processing Yes, No or N/A Explanation
Administrative Process
21. Does the benefit system have the ability to
capture the information needed from the
claimant in order to complete an incomplete
claim? M (p. 15)
22. Does the benefit system provide for
electronic approvals of claims at all levels of
the approval process, whenever feasible? M (p.
15)
23. Does the benefit system incorporate a
notification mechanism that informs users
(i.e., claim evaluators and supervisors) when
an application has not completed processing
within a time frame that can be specified by
the agency? M (p. 15)
24. Does the benefit system facilitate user
queries10 on individual claims? M (p. 16)
25. Does the benefit system accommodate
explanation codes to indicate why a claim has
been denied? M (p. 16)

10For example, are data retrievable by query of full name and Social
Security number (SSN) or taxpayer identification number (TIN)?

Functional Requirements Claims Processing Yes, No or N/A Explanation
Administrative Process
26. Does the benefit system automatically
create a claimant master record11 using the
claimant information for initial claims that
are approved, when a master record for the
claimant did not previously exist? M (p. 16)
27. Does the benefit system automatically
update an existing claimant master record12 to
reflect the status (i.e., pending, approved, or
rejected) of additional claims for other
benefits the agency administers that are sought
by the claimant? M (p. 16)
28. Does the benefit system automatically merge
the mandatory claimant data maintained in the
application information stores 13 into the
appropriate master record after a claim has
been approved and a claimant master record has
been established? M (p. 16)
29. Does the benefit system provide capability
to generate statistics on approved and rejected
claim applications? M (p. 16)

11The master record must contain all of the mandatory data as specified in
the requirements under "Claimant Master Record Information Store" section
of Benefit Systems Requirements (see questions 388 through 393).

12This occurs when the claimant already receives a different type of
benefit administered by the agency.

13This refers to all data recorded from the source document used in
determining eligibility, and it also includes the status of the review and
approval of the application. See JFMIP-SR-01-01, p. 42, first paragraph.

Functional Requirements Claims Processing Yes, No or Explanation
Administrative Process N/A
30. Does the benefit system provide capabilities to
accept, identify, track, and report manual
overrides of system-generated acceptance/rejection
recommendations? M (p. 16)
31. Does the benefit system allow a user, who has
proper access, to reverse or affirm an initial
decision regarding the denial of a benefit and
process the claim accordingly? M (p. 16)
32. Does the benefit system provide capabilities to
review all prior employee notations or decisions
made while processing a benefit claim? M (p. 16)
33. Does the benefit system provide capabilities to
record an estimated completion date for pending
claims? V (p. 16)
34. Does the benefit system have the ability, where
multiple claims exist for the same claimant, to
process the claims sequentially based on order of
precedence? V (p. 16)

14For example, does the system allow for age attainment verification to
determine whether one is eligible for Social Security Administration
retirement benefits?

15For example, can the system ensure that an applicant has not filed for
multiple conflicting benefits?

Page 19 GAO-04-22G -Benefit System Requirements Checklist (10/03)
43. Whenever
42. Does legally
the benefit permitted,
system does the
provide benefit system 44. Does the
40. Does tools to provide benefit
the benefit 41. Does the check the features to system allow
system benefit appropriate determine the user to
provide system data files whether suspend
features to provide to payments being processing
Yes, indicate features to determine made to the of a claim
No that an create and whether the claimant in while
or Explanation applicant maintain a applicant relation to verifying
N/A has system record has other internal questionable
submitted of accepted submitted a benefit information
the and rejected duplicate payment and to
required claim application programs release the
evidence?16 applications? or had a affect the suspended
Functional M (p. 17) M (p. 17) recent claimant's status as
Requirements benefit eligibility or appropriate?
Claims application payment amount M (p. 17)
Processing rejected? M for the
Eligibility (p. 17) benefit under
Determination consideration?
Processes M (p. 17)

16For example, does the system allow the user to record receipt of a
school certification pertaining to a claimant or dependent child?

Functional Requirements Claims Processing Yes, No or N/A Explanation
Eligibility Determination Processes
45. Does the benefit system provide the ability
to inform an applicant of potential eligibility
for other internal benefit payment programs? V
(p. 17)
46. Does the benefit system have the ability to
automatically validate survivor applicant
information against information about the
deceased/former spouse or related former
guardian that is maintained in a master record
database? V (p. 17)
47. When permitted by statute, does the benefit
system automatically validate dates of
employment, earnings, and other
claimantspecific data provided on the
application for benefits against the work
history and earnings information reported to
central agencies such as the Internal Revenue
Service (IRS), Social Security Administration
(SSA), and Office of Personnel Management
(OPM)? V (p. 17)

17For example, can it determine the effective date of a retirement claim?
18For example, can it determine this using applicant data and specific
benefit program criteria?
19For example, does it use tables that are easily maintained by the user?

Functional Requirements Claims Processing Yes, No or N/A Explanation
Computational Processes
53. Does the benefit system provide for
adjusting the amount of payment when the
claimant is receiving offsetting monetary
amounts?20 M (p. 17)
54. For federal and uniformed service
retirement systems, does the benefit system
identify whether the claimant retired under
provisions of a voluntary separation incentive,
and does it capture the amount of the
incentive? M (p. 18)
55. For federal and uniformed service
retirement systems, does the benefit system
compute the base amount of retirement pay by
determining the "highest paid 3621 months of
paid service?" M (p. 18)
56. Does the benefit system determine the
creditable years of service based on dates of
employment or active military service? M (p.
18)

20For example, is military retired pay offset on a dollar-for-dollar basis
against veterans compensation, and for individuals under age 65, are
Social Security benefits offset at a predetermined ratio for every dollar
earned by the claimant above the established threshold amount?

21This can also be any other number as required by law or regulation.

22Overpayment information includes date of occurrence, claimant name, and
overpayment amount.

Functional Requirements Benefit Payment
Administration Payee Information Maintenance Yes, No or N/A Explanation
Process
66. Does the benefit system maintain payee
information that includes data to support
obligation, accounts payable, and disbursement
processes? M (p. 19)
67. Does the benefit system support payments
made to parties who act as agents for the payee
without changing permanent claimant information
that is maintained in the claimant's master
record, such as the claimant's name, address,
or financial institution? M (p. 19)
68. Does the benefit system allow the user to
capture the current tax status, number of
exemptions, and other information requested on
applicable IRS withholding forms (i.e., W-4P,
W-4S, and W4V)? M (p. 19)
69. Does the benefit system maintain detailed
information for each payee to comply with IRS
reporting requirements?23 M (p. 19)

23For example, does the system maintain information needed for 1099
reporting, including SSN or TIN? In cases where payments are made to third
parties who are serving in fiduciary capacities, does the system maintain
1099 information for the principal party rather than the agent?

Functional Requirements Benefit Payment
Administration Payee Information Maintenance Yes, No or N/A Explanation
Process
70. Does the benefit system provide the
capability to automatically update payee
records to reflect changes related to the
automated clearinghouse (ACH) or electronic
funds transfer (ETF)?24 M (p. 19)
71. Does the benefit system, at a minimum,
accumulate actual payments for each payee
annually? M (p. 19)
72. Does the benefit system provide search
capability for payee information (e.g., payee
name)? M (p. 19)
73. Does the benefit system produce payee lists
based on agencydefined criteria (e.g., payee
name and SSN)? M (p. 19)
74. Does the benefit system maintain, as part
of the claimant's master record, a complete
history of all financial transactions executed
for each payee receiving benefits under the
claim holder's master record?25 M (p. 20)

24Treasury, financial institutions, or other sources may supply these
updates periodically. 25This includes payments, collections, waivers, or
offsets resulting from overpayments.

Functional Requirements Benefit Payment
Administration Payee Information Maintenance Yes, No or N/A Explanation
Process
75. For all active payees, does the benefit
system make the financial transaction history
data of the most recent 18 months available for
online query and review? M (p. 20)
76. Does the benefit system allow for
maintaining deposit account information on at
least two financial institutions for a single
payee? V (p. 20)

Page 28 GAO-04-22G -Benefit System Requirements Checklist (10/03)
81. Does the
benefit
system allow
80. Does the anticipated 82. Does
77. Does the 78. Does the 79. Does benefit system obligation the benefit
Functional benefit benefit the benefit allow for or system
Requirements system have system system reversing the expenditure subject
Benefit Yes, the ability automatically reestablish accounting transactions these
Payment No to determine determine the payables transaction so that documents26
Administration or Explanation whether the due date and for voided leading to the documents to edit and
Payment N/A benefit amount of checks or disbursement may be validation
Warehousing payment is a benefit EFTs that and entered procedures
Process nonrecurring payments? M were not reestablishing early, prior to
payment? M (p. 20) successful? a payable, as stored, and posting? V
(p. 20) M (p. 20) appropriate? M posted at (p. 20)
(p. 20) the
appropriate
date? V (p.
20)

26Please refer to the previous question.

Functional Requirements Benefit Payment Yes, No or N/A Explanation
Administration Payment Warehousing Process
83. If the anticipated obligation does not
occur, does the benefit system permit the user
to delete the transaction without posting it? V
(p. 20)

Page 30 GAO-04-22G -Benefit System Requirements Checklist (10/03)
88. Does the
benefit
system record
85. Does the 86. Does the 87. Does the the financial
benefit benefit benefit impact of all
system system also system transactions
include support provide for that affect
Functional 84. Does the adequate recording designated the
Requirements benefit system controls to obligations authorities availability
Benefit Yes, allow for the prevent or to establish of funds,
Payment No Explanation recording of recording expenditures and modify such as
Administration or funding obligations that exceed the system's commitments,
Funds N/A transactions?27 or available response 29 obligations,
Availability M (p. 21) expenditure balances to the expenditures,
Editing transactions based on failure of a and the
that exceed proper funds establishment
available management availability of, and
balances? M approval?28 edit? M (p. collections
(p. 21) M (p. 21) 21) against,
recovery
receivables?
M (p. 21)

27This includes recording internal allocations or allotments from within
the agency.
28That is, does the system provide the capabilities and controls for
authorized users to override funds availability edits?
29That is, does the system either reject the transaction or provide a
warning?

Functional Requirements Benefit Payment Yes, No or N/A Explanation
Administration Funds Availability Editing
89. Does the benefit system automatically
update all appropriate budgetary tables and
ledger account balances (when applicable) to
ensure that the system always maintains and
reports the current status of funds for all
open accounting periods? M (p. 21)
90. Does the benefit system provide for
designated authorities to establish and modify
the level of funds control using the elements
of the classification structure, including
object class, program, organization, project,
and fund? V (p. 21)
91. Does the benefit system provide the ability
to produce an online status of funds report
down to the lowest level of the organizational
structure, including amounts available or
allotted, open commitments, open obligations,
expenditures, and balance available? V (p. 21)

Page 32 GAO-04-22G -Benefit System Requirements Checklist (10/03)
96. Does the
benefit system
close open
commitments
under the
94. Does the following
benefit system 95. Does the circumstances:
92. Does the provide for benefit a. by the
benefit 93. Does the modifications system allow system upon
system allow benefit system to commitment for issuance of an
commitment maintain transactions, commitment obligating
Yes, transactions information including ones transactions document, b.
No Explanation to be related to that change to be by an
or entered each the dollar future-dated, authorized
N/A online from commitment amount or the stored, and user, and c.
multiple transaction?30 accounting posted on the as part of the
locations? V V (p. 21) classification appropriate year-end
(p. 21) elements date? V (p. closing if the
cited? V (p. 22) commitment is
22) in an annual
Functional appropriation
Requirements or in the last
Benefit year of a
Payment multiyear
Administration appropriation?
Commitments V (p. 22)

30At a minimum, does the system capture accounting classification elements
and estimated amounts?

Functional Requirements Benefit Payment Yes, No or N/A Explanation
Administration Commitments
97. Does the benefit system provide the
capability to support commitment accounting
based on agency needs? V (p. 22)

Page 34 GAO-04-22G -Benefit System Requirements Checklist (10/03)
98. Does the 101. At a
benefit minimum, does
system the benefit
update system capture
budgetary the following: 102. Does
tables to 99. Does the 100. Does a. obligating the
reflect benefit the benefit document number benefit
obligations system system and type, b. system
based on update maintain accounting allow
Yes, obligating budgetary information classification obligation
No documents tables to related to elements, as documents
or Explanation and reflect each appropriate, c. to be
N/A liquidate, obligations obligation referenced entered
at the for which document, commitment, if online and
user's there are no including applicable, d. from
Functional request, the related amendments? other multiple
Requirements related commitments? M (p. 22) identification, locations?
Benefit commitments, M (p. 22) including M (p. 22)
Payment either benefit payee
Administration partially or SSN or TIN, and
Obligations fully? M (p. e. dollar
and 22) amounts? M (p.
Expenditures 22)

Page 35 GAO-04-22G -Benefit System Requirements Checklist (10/03)
107. Does
106. Does the the benefit
benefit system system
close open allow
104. Does obligating multiple
the benefit 105. Does documents to commitments
103. Does the system the benefit accommodate to be
benefit provide system both of the combined
system allow online maintain an following into one
authorized access to online circumstances: obligation
Yes, modifications all history a. or
No Explanation and unliquidated file of automatically expenditure
or cancellations obligations closed-out when document
N/A of posted by selection documents classifying an and one
obligation criteria for a unliquidated commitment
documents? M (e.g., userdefined obligation to document to
Functional (p. 22) document period? M an be split
Requirements number)? M (p. 22) expenditure, into
Benefit (p. 22) or b. by an various
Payment authorized obligating
Administration user? M (p. or
Obligations 22) expenditure
and documents?
Expenditures V (p. 22)

Functional Requirements Benefit Payment Yes, No or N/A Explanation
Administration Analysis
108. Does the benefit system maintain current
information on obligations according to the
classification elements established by the
agency on a fund-by-fund basis? M (p. 23)
109. Does the benefit system sort and provide
online access to both summary level and
detailed information, based on the defined
level of funds control, for those transactions
that represent obligations and expenditures? M
(p. 23)
110. Does the benefit system provide control
features that ensure the amounts reflected in
the fund control structure agree with the
general ledger account balances at the end of
each update cycle? M (p. 23)
111. Does the benefit system track the use of
funds against operating or financial plans? V
(p. 23)

Functional Requirements Benefit Payment
Administration Payment Execution Process Yes, No or N/A Explanation
(Agencies with Delegated Disbursing Authority)
112. If the agency has delegated disbursing
authority, 31 does the benefit system support
of the reporting and other requirements
specified in volume I of the Treasury Financial
Manual (TFM), Part 4, as exemplified by the
following? a. Report all disbursements made
under the delegation in the agency's payment
accounting reports to the Financial Management
Service (FMS) using the appropriate agency
accounting codes, as authorized by FMS.32 b.
Submit timely, accurate check issuance data to
FMS no later than the close of business of the
week in which the issue dates occur and at
month's end. 33 (continued to next page)

31Some agencies have "delegated disbursing authority" and can print checks
or make EFTs without using Treasury as an intermediary. 31 U.S.C. S:
3321(b) provides that, for economy and efficiency, the Secretary of the
Treasury may delegate the authority to disburse public money to officers
and employees of other executive agencies.

32As stated in I TFM 4-10025, the agency must submit immediately to the
chief disbursing officer any irregularity in accounts involving
disbursement activity. Furthermore, the agency is responsible for
resolving any irregularities or discrepancies associated with such
reports.

33See I TFM 4-6020.10. FMS must receive this information within the
required time frame to carry out its check reconciliation responsibilities
properly, to decline final payment, or to reclaim payment on certain
improperly negotiated Treasury checks or counterfeit checks. See 31 C.F.R.
Part 240.

Functional Requirements Benefit Payment
Administration Payment Execution Process Yes, No or N/A Explanation
(Agencies with Delegated Disbursing Authority)
c. Comply with applicable Treasury offset
guidelines established under the authority of
31 U.S.C. S: 3716(c). 34 d. Comply with FMS
guidelines concerning applicable requirements,
to include a payee's TIN on payment vouchers in
accordance with 31 U.S.C. S: 3325(d).35 e.
Comply with all applicable EFT system
requirements, including those related to
message authentication and enhanced security,
unless explicitly waived in writing by the
chief disbursing officer (CDO). M (pp. 23 & 24)

34Under 31 U.S.C. S: 3716 (c), an authorized disbursing official is
allowed to reduce recipient benefits by administrative offset to satisfy a
creditor agency claim "...certified to the Secretary of the Treasury."

35"The head of an executive agency or an officer or employee of an
executive agency ... shall include with each certified voucher submitted
to a disbursing official pursuant to this section the taxpayer identifying
number of each person to whom payment may be made under the voucher."

Functional Requirements Benefit Payment
Administration Payment Execution Process (All Yes, No or N/A Explanation
Other Agencies)
113. Does the benefit system automatically
identify and select payments to be disbursed in
a particular payment cycle based on their due
dates?36 M (p. 24)
114. Does the benefit system provide a function
for review and certification by an authorized
certifying officer? M (p. 24)
115. Does the benefit system allow changes to
payment schedules by authorized staff prior to
acceptance by the disbursing office? M (p. 24)
116. Does the benefit system allow specific
payments selected for disbursement to be
excluded from the payment cycle and held for
later payment? M (p. 24)
117. Does the benefit system automatically
distinguish taxable benefit payments from
nontaxable payments? M (p. 24)

36Questions 113 through 136 are applicable only to agencies for which
Treasury does the actual disbursing.

Page 40 GAO-04-22G -Benefit System Requirements Checklist (10/03)
118. Does the
benefit 121. Does
system the
automatically benefit
compute net 120. Does system
amounts to be 119. Does the benefit calculate
Functional disbursed the benefit system totals by
Requirements after taking system also collect agency 122. Does the
Benefit into account generate the information location benefit system
Payment Yes, the appropriate on interest code sort individual
Administration No following: a. transactions paid, if (ALC) and payment detail
Payment or Explanation withholdings, to reflect applicable, Treasury by TAFS to
Execution N/A b. interest, the computed and record account enable SF-224
Process (All c. deductions the amounts fund reconciliation?
Other garnishments, and to the symbol M (p. 24)
Agencies) d. other additions? M proper (TAFS)
offsets, as (p. 24) ledger for
needed, in account? M inclusion
accordance (p. 24) on the
with payment
applicable schedule?
regulations? M (p. 24)
M (p. 24)

Functional Requirements Benefit Payment
Administration Payment Execution Process (All Yes, No or N/A Explanation
Other Agencies)
123. Does the benefit system provide for
various forms of payment to be used (e.g.,
check or EFT)? M (p. 24)
124. Does the benefit system support
Treasury-specific standards for format of check
and EFT payment requests? M (p. 24)
125. Does the benefit system automatically
update payment records based on updates
recorded in the payee's master record, such as
changes of address or changes in deposit
account information? M (p. 24)
126. Does the benefit system allow a payment
request to be removed from the automated
scheduling stream and scheduled as a manual
payment by an authorized official? M (p. 24)
127. Does the benefit system allow the user to
trigger an immediate benefit payment for
"emergency"37 situations? M (p. 24)

37Emergency situations are defined by the administering agency.

Page 42 GAO-04-22G -Benefit System Requirements Checklist (10/03)
128. Does 130. Does
the the benefit
benefit 129. Does system
system the benefit provide
provide system allow offset 131. Does 132. Does
the for features, if the benefit the
capability cancellation applicable, system benefit
Functional to of an entire to reduce properly system
Requirements schedule payment the payment record the provide
Benefit and make schedule, or amount due a impact40 of for
Payment Yes, payments a single claimant in the entire reissuing
Administration No Explanation in various payment accordance amount of payments
Payment or forms 38 within a with the for
Execution N/A as schedule, applicable transaction misplaced
Process (All required after laws, in both payments
Other by an payments are regulations, budgetary and lost
Agencies) agency's scheduled and and or stolen
disbursing and prior to provisions proprietary checks? M
offices, actual of the terms? M (p. 24)
including disbursement Treasury (p. 24)
physical by Treasury? Offset
media?39 M M (p. 24) Program
(p. 24) (TOP)? M (p.
24)

38For example, can payments be scheduled or made with ACH or SF-1166?

39Physical media include tape or EFT.

40That is, does the system record whether, for example, (1) the entire
amount is expensed, (2) payables or cash accounts reflect net outlay, and
(3) budgetary resources are increased by the amount of nonfederal
receivables collected?

Functional Requirements Benefit Payment
Administration Payment Execution Process (All Yes, No or N/A Explanation
Other Agencies)
133. Does the benefit system automatically
consolidate amounts due a benefit claimant when
the claimant is entitled to more than one
benefit administered by the same agency? V (p.
25)
134. Does the benefit system itemize per
Treasury specifications all payments covered by
one check or EFT on a payment advice or
addendum to the EFT file? V (p. 25)
135. Does the benefit system allow for the
splitting of a single benefit payment into
separate bank accounts (i.e., allotments)41 as
indicated on the claimant's direct deposit
request form? V (p. 25)
136. Does the benefit system provide for making
payments in a foreign currency? V (p. 25)

41That is, does the system allow for a minimum of one allotment in
addition to the primary deposit account?

Page 44 GAO-04-22G -Benefit System Requirements Checklist (10/03)
139. Does
the benefit
system
provide
information
about each
payment to
reflect the
138. If stage of
original the
137. Does checks are scheduling 140. Does
the benefit lost, process the benefit
system stolen, or that the system
Functional update destroyed, payment has provide for
Requirements master does the reached and comparison
Benefit record benefit the date of the
Payment Yes, information system each step agency's
Administration No Explanation resulting allow the was reached payment
Payment or from user to for the schedule and
Confirmation N/A payments record the following the
and Follow-up made by the outcome of processing disbursing
Process core the steps: a. office's
system, if Treasury payment accomplished
applicable? search when scheduled, schedule? M
M (p. 25) recertified b. schedule (p. 25)
checks are sent to the
issued? M appropriate
(p. 25) disbursing
office, and
c. payment
issued by
the
appropriate
disbursing
office? M
(p. 25)

Page 45 GAO-04-22G -Benefit System Requirements Checklist (10/03)
141. Does 142. Does
the benefit the benefit
system system
update the maintain a
payment history of
information every
when payment, 144. Does
confirmation including the
Functional is received the 143. Does benefit
Requirements from the following the benefit system
Benefit disbursing information: system provide
Payment Yes, office, a. provide online
Administration No Explanation including authorizing online access to
Payment or the paid document access to open
Confirmation N/A schedule number, b. claimant and documents
and Follow-up number, payment payment based on
Process check schedule information? agency
numbers or number, c. M (p. 25) selection
trace payment criteria?
numbers, date, d. M (p. 25)
date and payment
amount of address, and
payment, and e. TAFS
payment charged? M
method? M (p. 25)
(p. 25)

Functional Requirements Benefit Payment
Administration Payment Confirmation and Yes, No or N/A Explanation
Follow-up Process
145. Does the benefit system produce IRS 1099s
in IRS acceptable form 42 when required by IRS
regulations?43 M (p. 25)
146. Does the benefit system automatically
liquidate the related liability or the
in-transit amount when payment confirmation
updates the system? M (p. 25)

42IRS acceptable form would be, for example, hard copy or magnetic tape.
43For example, IRS 1099s are required for miscellaneous payments of over
$600 to individuals.

Page 47 GAO-04-22G -Benefit System Requirements Checklist (10/03)
151. Does
148. Does the the
benefit 149. Does 150. Does the benefit
system the benefit system
provide for benefit system provide
147. Does the the system support the the
benefit establishment provide establishment capability
Functional system record of the and tracking for a user
Requirements the receivables capability of to record
Recovery Yes, establishment in other for a user receivables the
Receivable No of systems, such to select to be paid beginning
Management or Explanation receivables as the reason under and ending
Recovery N/A in the centralized the installment dates of
Receivable claimant's accounts receivable plans, the
Establishment master receivable is being including payment
Process record? M (p. systems, that recorded plans for period as
26) are based on from a which well as
individual domain of payments have the
claim holder recognized been frequency
debts? M (p. reasons? M rescheduled? and amount
26) (p. 26) M (p. 26) of each
payment? M
(p. 26)

Page 48 GAO-04-22G -Benefit System Requirements Checklist (10/03)
155. Does the
benefit system
152. Does the provide
benefit features to
system notify
calculate, overpaid
generate, and 153. Does the individuals
post the benefit (or a
required system print 154. Does claimant's
Functional ledger bills the estate) of the
Requirements entries for accommodating benefit following: a.
Recovery receivables the system the amount
Receivable Yes, resulting generation of allow overpaid and
Management No Explanation from standard customized how and when
Recovery or duplicate forms and text in overpayment
Receivable N/A payments or turnaround generated occurred, b.
Establishment erroneous documents billing the right to
Process payments as (i.e., as a documents? appeal the
well as the remittance M (p. 26) overpayment
corresponding advice)? M determination,
expenditure (p. 26) c. the
reductions or required
other recovery, and
offsets? M d. the right
(p. 26) to request a
waiver of
recovery? M
(pp. 26 & 27)

Functional Requirements Recovery Receivable
Management Recovery Receivable Establishment Yes, No or N/A Explanation
Process
156. Does the benefit system record
adjustments, both increases and decreases
(i.e., noncash credits), and post them to a
claimant's master record? M (p. 27)
157. Does the benefit system date the bills
with the system-generated date or with the date
provided by the authorized user? M (p. 27)
158. Does the benefit system accept
transactions that generate receivables from
other systems in a standard format for entry
into the benefits system? M (p. 27)
159. Does the benefit system print statements
as well as bills? V (p. 27)

44OMB Circular A-129 prescribes policies and procedures for justifying,
designing, and managing federal credit programs, including collecting
nontax receivables such as overpayments to beneficiaries.

Functional Requirements Recovery Receivable Yes, No or N/A Explanation
Management Collection Process
180. Does the benefit system record complete
and partial receipts according to the Debt
Collection Act of 1982 (DCA), Debt Collection
Improvement Act of 1996 (DCIA), as well as any
applicable regulations? M (p. 28)
181. Does the benefit system record deposits
and related debit vouchers for reconciliation
to deposit confirmation information provided by
Treasury or the banking system? M (p. 28)
182. Specifically, does the benefit system
provide the user the capability to record the
deposit ticket or debit voucher document
amount, number, and date? M (p. 28)
183. If a claimant's master record is located
when recording a deposit, does the benefit
system provide the capability to display all
active receivable accounts of record that are
related to the claimant? M (p. 28)

Page 55 GAO-04-22G -Benefit System Requirements Checklist (10/03)
184. If a
user is
not able
to locate
an
existing
receivable
in the
master
record of 186. In
the person order to
making a suspend 188. Does
payment collection 187. Does the the benefit
and the activities benefit system
document associated system capture
being 185. Does with the automatically whether the
Functional recorded the benefit receivable, allow receivable
Requirements Yes, is a system does the collection has been
Recovery No deposit provide benefit activities to petitioned
Receivable or Explanation ticket features to system resume when or
Management N/A item, does record the provide the due process discharged
Collection the method of capability has expired in
Process benefit recovery?45 to flag a or the flag connection
system M (p. 28) claimant's has been with
provide receivable reversed? M bankruptcy
the record to (p. 28) proceedings?
capability reflect due M (p. 28)
to process
associate status? M
the (p. 28)
collection
of funds
to the
claimant's
master
record, if
one
exists? M
(p. 28)

45The method of recovery includes payment, internal offset, TOP,
compromise settlement, and civil suit.

Functional Requirements Recovery Receivable Yes, No or N/A Explanation
Management Collection Process
189. Does the benefit system provide for
processing cash or credit card receipts against
outstanding receivables? V (p. 28)

Page 57 GAO-04-22G -Benefit System Requirements Checklist (10/03)
191. Does the 194. Does
190. Does benefit system the benefit
the benefit allow for 193. Does system
system offset of 192. Does the the incorporate 195. Can the
provide the funds due to benefit benefit logic to benefit
ability to delinquent system comply system reflect the system
Functional report indebtedness with the provide legal exclude
Requirements Yes, overdue through the requirements the authority certain
Recovery No receivables following: a. of the IRS capability as to receivables
Receivable or with administrative Tax Refund for a user whether the 46
Management N/A associated offset, b. Offset to record payment automatically
Offset SSN or TIN federal Program and the type may be from the
data to employee TOP effective reduced by offset
Treasury salary offset, requirements? date of offset or function? M
for and c. income M (p. 29) the offset is exempt (p. 29)
possible tax refund plan? M from TOP or
offset? M offset? M (p. (p. 29) other
(p. 29) 29) offsets? M
Explanation (p. 29)

46For example, does the system exclude receivables that are in due process
status or those that relate to bankruptcy filings?

Functional Requirements Recovery Receivable Yes, No or N/A
Management Offset Explanation
196. Does the benefit system automatically
subject receivables to offset, which had been
previously excluded because of due process and
bankruptcy status, once status has been
resolved? M (p. 29)
197. Does the benefit system provide the
capability for a user to select from a domain
of offset program participants?47 V (p. 29)
198. If the desired offset program recipient
does not exist as a participant, does the
benefit system provide the capability for the
user to create a participant record? V (p. 29)
199. When a retirement account has both
garnishment and former spouse deductions, does
the benefit system identify bankruptcy debt so
that it is bypassed when computing the legally
mandated 65 percent maximum deduction amount? V
(p. 29)

47An offset program participant is the recipient of the amount to be
offset against a claimant's benefit payments.

Functional Requirements Recovery Receivable Yes, No or N/A Explanation
Management Funds Control
200. Does the benefit system properly record
the budgetary effect on U.S. Standard General
Ledger (SGL) balances for all transactions
typically involved with receivable
management?48 M (p. 30)

48For example, receivable management would include establishing a
receivable, adjusting receivables, collections and offsets, as well as
waivers and write-offs.

Functional Requirements Accounting for Benefit Yes, No or N/A Explanation
Transactions Entity Definition
201. Does the benefit system allow for
recording transactions in multiple TAFS and
various fund types?49 M (p. 30)
202. Does the benefit system accommodate
reporting for multiple programs within a TAFS,
based on accounting classification elements?50
M (p. 30)

49This includes annual, multiyear, and no-year appropriations as well as
trust funds. 50Accounting classification elements include, for example,
organization level and cost center.

Page 61 GAO-04-22G -Benefit System Requirements Checklist (10/03)
203. Does 205. Does 207. Does the 208. Does the
the 204. Does any 206. Does benefit system benefit system
benefit the benefit expansion the also support provide the
Functional system use system use in the benefit reconciliation capability to 209. Do
Requirements account account chart of system of SGL control create these
Accounting Yes, titles definitions accounts provide accounts to additional subaccounts
for Benefit No Explanation consistent consistent roll up subsidiary their subaccounts to roll up to
Transactions or with the with the to the ledger respective the general the SGL
Account N/A account account accounts support subsidiary ledger for accounts? M
Definition titles definitions as for SGL records by agencyspecific (p. 31)
provided provided in defined accounts? accounting tracking and
in the the SGL? M in the M (p. 31) period? M (p. control? M (p.
SGL? M (p. (p. 31) SGL?51 M 31) 31)
31) (p. 31)

51A pseudocode can be used instead of the exact SGL account numbers,
providing the account descriptions and posting rules are the same as those
used in the SGL for relevant transactions.

Functional Requirements Accounting for Benefit
Transactions Transaction Definition and Yes, No or N/A Explanation
Processing
210. Does the benefit system use standard
transactions to record accounting events and to
control the related updating of other
information 52 maintained in the system? M (p.
31)
211. Does the benefit system allow standard
transactions, including system-generated
transactions, to be established, modified, or
deleted by authorized personnel? M (p. 31)
212. Does the benefit system allow changes to
be traced? M (p. 31)
213. Does the benefit system generate and post
compound debit and credit entries to the SGL
accounts? M (p. 31)
214. Does the benefit system update both
budgetary and proprietary SGL accounts based on
a single input transaction? M (p. 31)

52This could include values in tables, such as available funding.

Functional Requirements Accounting for Benefit
Transactions Transaction Definition and Yes, No or N/A Explanation
Processing
215. Does the benefit system provide the
capability to add, modify, and maintain editing
and posting rules through systems tables
controlled by authorized personnel? M (p. 31)
216. Does the benefit system perform integrity
checks on batches received via interfaces? M
(p. 31)
217. Do the integrity checks include batch
numbers to detect duplicate or skipped batches
and the validity of header and trailer
records?53 M (p. 31)

53This ensures that counts and amounts in trailer records agree with
records in the batch.

Functional Requirements Accounting for Benefit
Transactions Transaction Definition and Yes, No or N/A Explanation
Processing
218. Does the benefit system process
transactions consistent with SGL account
descriptions and postings? M (p. 31)
219. Does the benefit system process
system-generated transactions, such as the
following: a. automated payment scheduling, b.
accruals, c. closing entries, d. recurring
payments, and e. transactions that generate
other transactions in those cases in which a
single transaction is not sufficient? M (p. 32)
220. Does the benefit system automatically
liquidate, partially or in full, balances of
preceding documents when entering dependent
documents? M (p. 32)

Page 65 GAO-04-22G -Benefit System Requirements Checklist (10/03)
224. Does the
benefit system
222. Does support
the benefit 223. Are management
system erroneous controls to
221. Is this provide transactions ensure the
Functional capability control over maintained following? a.
Requirements used in the the and tracked Transactions are
Accounting liquidation of correction until processed in
for Benefit Yes, commitments, and corrected, accordance with
Transactions No Explanation obligations, reprocessing posted, or government and
Transaction or payables, of all deleted at agencyprescribed
Definition N/A receivables, erroneous the specific standards and
and or other transactions request of procedures. b.
Processing items, as through the an The integrity of
appropriate?54 use of error authorized data in the
M (p. 32) files or user? M (p. system is
suspense 32) maintained. c.
accounts? M Access is
(p. 32) restricted to
authorized
users. M (p. 32)

54For example, when expending an existing obligation the balance of the
open obligation must be automatically reduced by the amount expended.

Functional Requirements Accounting for Benefit
Transactions Transaction Definition and Yes, No or N/A Explanation
Processing
225. Does the benefit system provide
transaction edits that control, at a minimum,
fund availability, account structure, and
tolerance levels between related transactions,
such as between an obligation and its related
accrual? M (p. 32)
226. Does the benefit system provide controls
to prevent the creation of duplicate
transactions? M (p. 32)
227. Does the benefit system post to the
current and prior accounting months
concurrently until the prior month closing? M
(p. 32)
228. Does the benefit system maintain and
provide online queries and reports on balances
separately for the current and prior months? M
(p. 32)
229. At a minimum, does the benefit system
maintain balances online for both the current
and prior months until the prior month closing?
M (p. 32)

Functional Requirements Accounting for Benefit
Transactions Transaction Definition and Yes, No or N/A Explanation
Processing
230. Does the benefit system provide the
capability to enter and store for future
processing any transactions in the current
month for processing in the subsequent month? V
(p. 32)

Page 68 GAO-04-22G -Benefit System Requirements Checklist (10/03)
231. Does the
benefit
system
provide audit 234. Does the
trails to 233. Does the benefit
trace benefit system
transactions system provide audit
from the 232. Does provide audit trails to
following: a. the benefit trails to identify
Functional source system trace source changes made
Requirements Yes, documents, b. provide documents and to system
Accounting No original transaction transactions parameters
for Benefit or Explanation input, c. details to through and tables
Transactions N/A other support successive that would
Audit Trails systems, d. account levels of affect the
system balances? M summarization processing or
generated (p. 32) to the reprocessing
transactions, financial of any
and e. statements financial
internal and reverse? transactions?
assignment M (p. 32) M (p. 32)
transactions
through the
system? M (p.
32)

Functional Requirements Accounting for Benefit Yes, No or N/A Explanation
Transactions Audit Trails
235. Does the benefit system provide for all
types of transactions the capability to select
items for review based on user-defined
criteria?55 M (p. 32)
236. Does the benefit system provide audit
trails that identify the following actions by
the originator: a. document input, b. changes,
c. approvals, and d. deletions? M (p. 32)
237. Does the benefit system provide the
capability to record the user identification,
date, and time updated for each transaction
affecting the general and subsidiary accounts?
M (p. 33)

55Examples of selection criteria are accounting period, amount, and payee.

Functional Requirements Reporting External Yes, No or N/A Explanation
Reporting
238. Does the benefit system maintain
accounting data to support reporting in
accordance with FASAB accounting standards and
OMB and Treasury reporting requirements?56 M
(p. 33)
239. Does the benefit system provide summarized
data electronically to systems used by the
agency for decision support? M (p. 33)
240. Does the benefit system provide for the
preparation of external reports, such as those
required by Treasury and OMB?57 M (p. 33)
241. Does the benefit system report events and
transactions according to the accounting
classification elements established and within
a given accounting period?58 M (p. 34)

56Of particular significance are data needed when preparing actuarial
estimates for financial statement preparation in compliance with the
reporting requirements specified by SFFAS 5 and 17. For example, does the
system facilitate historical trend analysis of various data elements as
determined by the agency?

57For example, does the system pass the data needed to prepare (1) reports
required by the Federal Agencies' Centralized Trial Balance System (FACTS)
I, FACTS II, SF-224 (when appropriate) and (2) financial statements to the
core financial system?

58This includes providing the ability to automatically assign cost by a
major program to facilitate preparation of the Statement of Net Costs in
accordance with OMB's Bulletin 01-09, Form and Content of Agency Financial
Statements.

Page 71 GAO-04-22G -Benefit System Requirements Checklist (10/03)
242. Does the
benefit
system 243. Does 246. Does
maintain the the benefit 244. Does the benefit
information system the system 247. Does
required for provide the benefit 245. Does provide for the
program capability system the benefit automatic benefit
performance, to produce allow a system translation system
Functional financial all user to provide for of foreign allow a
Requirements Yes, performance, relevant request a an automated currency user to
Reporting No Explanation and financial reports, reissued methodology payments request a
External or management statements, tax of data based on reissued
Reporting N/A performance or returns statement manipulation the tax
measures required by for the and data exchange statement
needed for IRS, current exportation? rate for the
budgeting, including or V (p. 34) specified previous
program year-end previous by the 3 years?
management, 1099 year? M user?59 V V (p. 34)
and financial statements? (p. 34) (p. 34)
statement M (p. 34)
presentation?
M (p. 34)

59That is, does the system determine the appropriate amount of
corresponding U.S. dollars when recording transactions for payments made
in foreign currency?

Functional Requirements Reporting Internal Yes, No or N/A Explanation
Reporting
248. Does the benefit system provide for the
production of formatted reports? M (p. 34)
249. Does the benefit system allow for the
reformatting of reports to allow for the
following attributes: a. the presentation of
different sorts of information, b. the
presentation of only specific information in
the format selected, c. the summarization of
data, and d. the modification of report formats
to tailor the reports to the specific
requirements of the user? M (p. 34)
250. Does the benefit system provide for
program cost accounting data to support
reporting requirements specified in OMB
Bulletin No. 01-09, Form and Content of Agency
Financial Statements? M (p. 34)

Page 73 GAO-04-22G -Benefit System Requirements Checklist (10/03)
251. Does the
benefit system
provide for
program cost
accounting data
to support the
decisionmaking
process in
managing an
agency's
programs, which
includes the 252. Does
following the benefit
features? a. system
Cost reports to determine 253. Does
be used in the the cost of the
analysis of information benefit
programmatic for system
Functional Yes, activities. b. comparison support
Requirements No Schedules and to other the use of
Reporting or Explanation operating program historical
Internal N/A statements data to data to
Reporting based on the determine conduct
accounting compliance variance
classification with analysis?
elements and planned V (p. 35)
agency budgeted
criteria. c. activities?
Meaningful cost V (p. 35)
information
needed to
support
performance
measures. d.
Ability to
transfer cost
information
directly to and
from other
systems. M (p.
34)

Functional Requirements Reporting Performance Yes, No or N/A Explanation
Reporting
254. Does the benefit system provide features
to compute and maintain performance trends,
such as the following? a. Number and dollar
value of benefit payments made. b. Average
benefit payment. c. Benefit payments made by
operating levels and geographic region. M (p.
35)
255. Does the benefit system provide features
to compute and maintain efficiency measures to
help determine the effective use of agency
resources, 60 such as the following
measurements? a. Number of applications
processed. b. Number of awards. c. Number of
denials. M (p. 35)
256. Does the benefit system provide features
to compute, for the entire claimant population,
the length of time claimants have received
benefits?61 M (p. 35)

60Measures should cover agency resources at both the local and national
levels.

61For example, can the system generate reports showing the number of
individuals receiving benefits by duration (e.g., 1 to 5 years or 6 to 10
years)?

Functional Requirements Reporting Performance Yes, No or N/A Explanation
Reporting
257. Does the benefit system provide features
to automatically compute and maintain
efficiency measures such as the following? a.
Administrative cost per application approved.
b. Time required to process a claim
application. V (p. 35)

Functional Requirements Reporting Compulsory Yes, No or N/A Explanation
Notifications
258. Does the benefit system provide for
issuing standard notices for a variety of user-
defined events?62 M (p. 35)
259. Does the benefit system allow the user to
add custom text for each standard
correspondence type? M (p. 35)
260. Does the benefit system allow the user to
record that the U.S. Postal Service has
returned correspondence as undeliverable? M (p.
35)
261. Does the benefit system automatically
capture various electronic correspondences,
including due process requests submitted
through various electronic mediums, and
associate them to the specific claim and
required action? M (p. 36)
262. For manually submitted correspondence,
does the benefit system provide for capturing
such requests and associating them with the
specific claim and required action? M (p. 36)

62For example, does the system provide capabilities to notify a claimant
of decisions affecting payment amount or cessation of payments?

Functional Requirements Reporting Compulsory Yes, No or N/A Explanation
Notifications
263. Does the benefit system have the ability
to capture or record the date on which a
request for appeals-related information is
received from a claimant or an authorized
representative? M (p. 36)

Page 78 GAO-04-22G -Benefit System Requirements Checklist (10/03)
264. Does
the benefit
system
provide the 266. Does 267. Does 268. When a 269. Does
capability 265. Does the benefit the benefit major benefit the
to interface the benefit system system system function benefit
with the system subject all maintain and is performed by system
agency core provide transactions track the core system, provide
Functional accounting standard from erroneous does the benefit the
Requirements Yes, system to input record interfacing transactions system provide capability
Interfaces No Explanation record the format(s) systems to until the capability to
Internal or accounting for its system corrected, to automatically interface
Interfaces N/A impact of interface of edits, posted, or update detailed with the
financial transactions validations, deleted by claimant-related agency's
activity at from other and error an information that cost
the SGL systems? M correction authorized is maintained in accounting
level daily (p. 36) procedures? user? M (p. the core system? M
to support M (p. 36) 36) system?63 M (p. (p. 36)
consolidated 36)
financial
reporting? M
(p. 36)

63For example, could the benefit system automatically update detailed
claimant information, such as individual payable and receivable records,
if they were maintained in the core accounting system?

Functional Requirements Interfaces Internal Yes, No or N/A Explanation
Interfaces
270. Does the benefit system provide a two-way
interface with the core system for purposes of
funds control and funds availability
verification? V (p. 36)

Page 80 GAO-04-22G -Benefit System Requirements Checklist (10/03)
271. Does the benefit system provide
capabilities allowing interface with
central agency financial systems, 64
such as the capability to a. receive
and read the deposit reconciliation
file from Treasury and produce a report
of the matched data and differences, b.
produce a file of all hold check
transactions as they are created and
periodically transmit the hold check
Functional file to Treasury, c. produce and
Requirements Yes, No transfer a file of changes to EFT
Interfaces or N/A Explanation payments previously forwarded to
External Treasury for release, d. produce and
Interfaces transfer a file of changes to be made
to the home address file in Treasury,
e. receive and process the data on the
returned check file sent by Treasury's
recertification system, including
generating returned check transactions
and updating account data, and f.
receive and automatically process an
ACH update file (containing changes to
EFT information) from Treasury or other
sources on a recurring basis? M (p. 37)

64These systems include those at the Department of the Treasury's FMS and
IRS, OMB, and OPM.

Functional Requirements Interfaces External Yes, No or N/A Explanation
Interfaces
272. Does the benefit system receive
information from SSA records to verify an
applicant's name, SSN, and income information,
when legally permitted? V (p. 37)
273. Does the benefit system provide features
to verify an applicant's income against civil
service annuity, military retirement, and IRS
earnings records, when legally permitted? V (p.
37)

Functional Requirements Quality Assurance and Yes, No or N/A Explanation
Maintenance
274. Does the benefit system provide
capabilities to select benefit claims based on
agency program evaluation criteria, such as
dollar thresholds and duration of benefit
payment, for subsequent review? M (p. 37)
275. Does the benefit system provide the
ability to monitor and update a claimant's
master records to reflect changes in
circumstances affecting a claimant's
eligibility or the amount of the payment? M (p.
37)

Page 83 GAO-04-22G -Benefit System Requirements Checklist (10/03)
276. Does the benefit system
provide capabilities to capture
claimant (or relative) reported
matters such as the following
changes? a. Death. b. Change in
amount of earned or unearned
income. c. Change in residence.
Functional d. Marriage, divorce, or
Requirements Yes, No or separation. e. Absence from the
Quality Assurance N/A Explanation United States. f. Change in
and Maintenance disability condition. g.
Eligibility for other benefits.
h. Change in net worth or
resources of the claimant. i.
Change in school attendance. j.
Change in composition of
household. k. Change in
citizenship or alien status. M
(pp. 37 & 38)

Functional Requirements Quality Assurance and Yes, No or N/A Explanation
Maintenance
277. Does the benefit system provide for
recording and maintaining a customer service
representative's notes or comments that can be
linked to the claimant's master record? M (p.
38)
278. Does the benefit system provide features
to record death information provided from
voluntary sources?65 M (p. 38)
279. Does the benefit system provide
capabilities to record the method66 used to
independently verify the death of a claimant
before terminating benefits? M (p. 38)
280. Does the benefit system provide the
ability to maintain a schedule of continuing
disability reviews at the individual claim
level, if applicable? M (p. 38)
281. Does the benefit system also provide the
ability to maintain the status of a schedule of
continuing disability reviews within the
claimant's master record? M (p. 38)

65Voluntary sources include, for example, returned checks, funeral home
notification, and next of kin.

66Methods for verifying death of a claimant include, for example, phone
contact, signature verification, or personal contact with next of kin.

Page 85 GAO-04-22G -Benefit System Requirements Checklist (10/03)
283. Does
the benefit
system
provide
features to
282. Does record 285. Does the 286. Does
the benefit termination benefit the benefit
system of benefit system have system
provide payments, 284. Does the ability provide the
capabilities including the benefit to select ability to
to track the the system benefit generate a
Functional status of following provide payment random
Requirements Yes, appeal notations: features to calculations sample of
Quality No Explanation proceedings a. event or determine if based on claimants to
Assurance or when a reason for benefits are statistical periodically
and N/A change is termination, commensurate sampling survey their
Maintenance made such as with a techniques satisfaction
affecting a death or claimant's for the with the
current increase in gender? V purpose of agency's
claimant's income, and (p. 38) verifying benefit
level of b. date of calculations? claims
benefits? M event (and V (p. 38) process?67 V
(p. 38) thus (p. 38)
effective
date of
benefit
cessation)?
M (p. 38)

67Surveys would cover the claimant's experience from initial contact with
the agency to receipt of benefit payment.

Functional Requirements Quality Assurance and Yes, No or N/A Explanation
Maintenance
287. Does the benefit system allow users to
suspend payment to claimants when fraud is
suspected, or when a death has been reported
but not yet verified by an authoritative source
(e.g., SSA)? V (p. 38)
288. Does the benefit system allow users to
cancel a previously recorded suspected death of
a claimant and place the claimant back in a
payment status, if appropriate? V (p. 38)

Functional Requirements Technical Functions Yes, No or N/A
General Explanation
289. Does the benefit system provide for system
back up and recovery in accordance with
relevant OMB circulars? M (p. 38)
290. Does the benefit system adhere to the
applicable final Electronic and Information
Technology Accessibility Standards68 issued by
the Architectural and Transportation Barriers
Compliance Board? M (pp. 38 & 39)
291. Does the benefit system allow users to
input parameters required to run batch jobs in
a production mode either daily, monthly,
quarterly, or yearly? M (p. 39)
292. Does the benefit system provide all users
the capability to perform a "print screen"
function? M (p. 39)

68These standards address technical and functional performance criteria
necessary for such technology to comply with section 508 of the
Rehabilitation Act of 1973, as amended.

Page 88 GAO-04-22G -Benefit System Requirements Checklist (10/03)
293. Does the
benefit system
provide flexible 294. Does 295. Does
security the the benefit
facilities to benefit system 296. Does the
control user system provide for benefit system 297. Does the
access at provide multiple provide the benefit system
Functional varying degrees, capability levels of capability to have the
Requirements Yes, including the to define approvals perform capability to
Technical No following: a. access to based on reconciliation identify
Functions or Explanation overall system specific user-defined routines for unsuccessful
Security and N/A access, b. functions criteria, internal reconciliations
Internal capability to by named including participant via an error
Controls perform specific user, dollar accounts, log or error
functions, such class of limits and ledgers, and report? M (p.
as inquiries and user, and type of funds? M (p. 39)
updates, and c. position? document 39)
access to M (p. 39) processed? M
certain (p. 39)
functionalities?
M (p. 39)

Functional Requirements Technical Functions Yes, No or N/A Explanation
Security and Internal Controls
298. Does the benefit system establish
appropriate administrative, technical, and
physical safeguards to ensure the security and
confidentiality of records? M (p. 39)
299. Do these safeguards protect the records
against anticipated threats or hazards to their
security or integrity that could result in
substantial harm, embarrassment, inconvenience,
or unfairness to any individual on whom
information is maintained? M (p. 39)
300. Does the benefit system provide a
mechanism to monitor changes in software coding
and the responsible individual (authorized
user)? M (p. 39)

Functional Requirements Technical Functions Yes, No or N/A Explanation
Access to Information
301. Does the benefit system comply with the
disclosure provisions of the Privacy Act of
1974,69 as amended? M (p. 39)
302. Does the benefit system allow for the
information contained in the system to be
queried and detailed data to be presented, as
requested? M (p. 39)
303. Does the benefit system's query capability
allow for user-defined criteria when accessing
data for open or closed accounting periods? M
(p. 39)
304. Does the benefit system provide users with
access to online guidance or help for
performing system functions? M (p. 39)
305. If a claimant's or claim holder's record
is not located via query, does the benefit
system display a message indicating that the
transaction cannot be completed and that
further research is required? M (p. 39)

695 U.S.C. S: 552A (2000).

Page 91 GAO-04-22G -Benefit System Requirements Checklist (10/03)
308. Does
the benefit
system 310. Does
provide the the benefit
307. Does capability system
the benefit to access allow users
306. Does the system also historical to perform
benefit system present data records 309. Does the table
present information that are benefit look-ups
Functional information resulting removed from system allow and
Requirements Yes, resulting from from system online users to expansion
Technical No system queries queries in viewing, design of codes
Functions or Explanation in an an including extract files when needed
Access to N/A understandable unformatted items such for their to clarify
Information format for fashion for as the specific the
nontechnical more following? requirements? information
users? M (p. technically a. M (p. 40) contained
39) proficient Individual within the
users? M benefit results of
(p. 39) payments. b. system
Receivables. queries or
c. reports? M
Collection (p. 40)
data. M (p.
39)

Functional Requirements Technical Functions Yes, No or N/A Explanation
Access to Information
311. Does the benefit system provide features
(i.e., matching programs) to facilitate
verification using information extracted from
the system for comparison against benefit
programs administered by other agencies, when
legally permitted? M (p. 40)
312. Does the benefit system facilitate the
analysis of information contained in the system
by allowing analysts to obtain report
information and the results of system queries
in data files that can be transferred to other
applications or analytical tools? M (p. 40)
313. Does the benefit system provide for easy
access to historical files for comparative,
analytical, and trend information? M (p. 40)

Page 93 GAO-04-22G -Benefit System Requirements Checklist (10/03)
314. Does the benefit system
provide for self-service,
claimant-initiated requests that
can perform the following
functions? a. Enable the claimants
to request the reissuance of
misplaced payments using a Web
browser. b. Enable the claimants to
access decision tree functions to
help guide them through
self-service transactions through a
Web browser. c. Have pop-up windows
to help annuitants when making
Functional changes to files through a Web
Requirements browser. d. Enable claimant to
Technical complete forms using a Web browser.
Functions Access e. Have the ability to verify the
to Information claimant security information
through a Web browser. f. Provide
access to claimant
retirement-related data through
interactive voice response (IVR).
g. Make IVR available for claimant
inquiries 24 hours a day, 7 days a
week, with the exception of
scheduled outages. h. Allow
claimants to initiate changes to
their accounts through IVR. i. Have
the ability to support multiple
Yes, No languages (e.g., English and
or N/A Explanation Spanish). V (p. 40)

Page 94 GAO-04-22G -Benefit System Requirements Checklist (10/03)
315. Does the
benefit system
utilize various
automated input
devices when
hard copy
applications 316. Does 320.
and the benefit Does the
correspondence system 317. Does benefit
are received, support both the benefit 318. Do 319. Does system
such as, for batch and system the the benefit provide
example, the real-time support benefit system for
Functional utilization, online data simultaneous system assist inquiry
Requirements Yes, whenever entry, and data entry user entry users in by the
Technical No Explanation feasible, of does it use or access by and query determining user to
Functions or optical the same multiple screens correct verify
Data Entry N/A recognition edit and users in a support codes if an valid
devices, update variety of validation invalid codes
digital imaging rules, as access of entered code is during
tools, or other appropriate, modes? M (p. codes? M entered? M the data
input for each 40) (p. 40) (p. 40) entry
streamlining mode? M (p. process?
technology when 40) M (p.
processing 40)
standard hard
copy
applications or
other required
correspondence?
M (p. 40)

Functional Requirements Technical Functions Yes, No or N/A Explanation
Data Entry
321. Does the benefit system provide the
capability to display inputs required to
complete transactions by a user based on the
selection of transaction type? M (p. 40)
322. Whenever possible, does the benefit system
utilize keystrokereducing tools such as
dropdown menus to reduce the chance of data
entry error? M (p. 40)
323. Does the benefit system display a message
to the user notifying him or her of the
acceptance or rejection of each transaction
once all inputs are completed? M (p. 41)
324. Does the benefit system identify erroneous
inputs with corrective recommendations? V (p.
41)
325. Does the benefit system provide the
capability for financial users to create
comments relating to all types of transactions
using free-form text? V (p. 41)

Page 96 GAO-04-22G -Benefit System Requirements Checklist (10/03)
328. Does the 329. Does 330. Does
327. Does benefit the the 331. Does the
the benefit system benefit benefit benefit system
326. Does system provide the system system retain its
the benefit archive authorized allow include records in
Functional system transactions system selective the accordance with
Requirements Yes, provide an and related administrator action on capability federal
Technical No automated information with the the to regulations
Functions or Explanation means for needed for flexibility documents establish established by
Archiving N/A permanently audit trails to determine that meet and the National
and Purging storing in a format whether the maintain Archives and
electronic accessible records are criteria user- Records
data? M (p. by audit to be for being defined Administration,
41) software? M archived or archived archival GAO, and
(p. 41) purged? M (p. or criteria? others? M (p.
41) purged? M M (p. 41) 41)
(p. 41)

Functional Requirements Technical Functions Yes, No or N/A Explanation
Archiving and Purging
332. Does the benefit system prevent the
purging of transactions prior to the proper
period in accordance with regulations governing
the retention of documents and transactions? M
(p. 41)

Page 98 GAO-04-22G -Benefit System Requirements Checklist (10/03)
337. Does
the benefit
system
capture
claimant 338. Does the
335. 336. information, benefit system 339.
333. Does 334. Does Does if other capture the Does the
the Does the the than the name and benefit
Information benefit the benefit benefit claim relationship system
Stores system benefit system system holder, of a capture
Application Yes, capture system capture capture including representative the
Information No Explanation the name capture the the the payee, specific
Stores or and the SSN birth date of following including benefit
Universal N/A address of the date of the information: estate for
Data of the claim the initial a. name, executors or which
Elements claim holder? claim claim? address, legal the
holder?70 M (p. holder? M (p. SSN, and guardians, claim is
M (p. 42) 42) M (p. 42) birth date when made? M
42) and b. applicable? M (p. 42)
claimant's (p. 42)
relationship
to claim
holder?71 M
(p. 42)

70The claim holder is the person on whose record the benefit is earned or
due. 71For example, a claimant may be a spouse, child, or dependent parent
of a claim holder.

Page 99 GAO-04-22G -Benefit System Requirements Checklist (10/03)
344. Do
benefit
systems
341. Does relating to
the benefit taxable
system programs
capture capture
bank information
information 343. Does needed to
for direct 342. Does the determine
340. deposit, the benefit benefit the
Information Does the including, system system withholding
Stores benefit if capture the capture amount, such
Application Yes, system applicable, type of the as the
Information No capture the evidence or status of following:
Stores or Explanation the American proof the claim a.
Universal N/A claimant Bankers required (e.g., withholding
Data address? Association and approved, status, 72
Elements M (p. routing submitted, pending, b. tax
42) number, when or number of
claimant applicable? denied)? withholding
bank M (p. 42) M (p. 42) allowances,
account c. backup
number, and withholding,
account and d.
type? M (p. additional
42) voluntary
amount of
tax
withholding?
M (p. 42)

72This does not necessarily mean marital status (e.g., married, single, or
exempt).

Information Stores Application Information Yes, No or N/A Explanation
Stores Universal Data Elements
345. If a benefit system is used in
administering "means tested programs," does it
capture the following information? a. Claimant
wages, salaries, and other income that are
considered in determining eligibility and/or
benefit amounts. b. Types and amounts of assets
owned by the claimant, which are considered in
determining eligibility and/or benefit amounts.
M (p. 43)
346. Does the benefit system capture the gender
of a claimant?73 V (p. 43)

73This facilitates verifying a claimant's identity.

Page 101 GAO-04-22G -Benefit System Requirements Checklist (10/03)
350. Does 353.
the benefit Does
system 351. Does the the
capture benefit benefit
Information 349. Does historical system 352. Does the system
Stores 347. Does 348. Does the the benefit earnings capture total benefit system capture
Application the benefit benefit system system data76 of participant capture other
Information Yes, system capture the capture the the claim and employer current names,
Stores No Explanation capture the claim holder dates of holder contributions balance of such as
Federally or effective or claimant creditable required to the vested a
Administered N/A date of dependency employment75 for retirement employee and maiden
Retirement retirement? information?74 of the claim determining plan made on employer name,
Benefit M (p. 43) M (p. 43) holder? M eligibility behalf of the contributions? the
Systems (p. 43) or the participant? V (p. 44) claim
amount of M (p. 43) holder
benefits? M has
(p. 43) used? V
(p. 44)

74For example, does the system capture whether the claim holder is the
child or parent of the claimant and vice versa? 75This also includes
military service when used in determining eligibility and the amount of
benefits. 76For example, does the system capture previous annual wages and
salary?

Information Stores Application Information
Stores Federally Administered Retirement Yes, No or N/A Explanation
Benefit Systems
354. Does the benefit system capture the phone
number of the claimant? V (p. 44)
355. Does the benefit system capture any other
unique identifying number? V (p. 44)

Page 103 GAO-04-22G -Benefit System Requirements Checklist (10/03)
363.
Does
the
361. Does benefit
360. Does the benefit system
359. the benefit system 362. Does the capture
Information Does system capture the benefit the
Stores 356. Does 357. Does the 358. Does the capture name, date system highest
Application the benefit benefit system the benefit benefit spouse's of birth, capture the pay
Information Yes, system capture lump system system name, date SSN, and percentage or scale,
Stores No Explanation capture the sum 77 capture capture of birth, dates of dollar amount (grade)
Federal or date of distributions annuity present SSN, and marriage and of a level,
Employment N/A final versus annuity selection?78 marital date of divorce of court-ordered or
Retirement separation? distributions? M (p. 44) status? marriage, former former spouse amount
Benefit M (p. 44) M (p. 44) M (p. when spouses who annuity? M of
Systems 44) applicable? have (p. 44) highest
M (p. 44) courtordered salary
annuities? M and
(p. 44) related
dates?
M (p.
44)

77Lump sum refers to refund of contributions.

78For example, does the system capture whether the annuity selection is
for self-only, self and reduced survivor, or self and maximum survivor?

Information Stores Application Information
Stores Federal Employment Retirement Benefit Yes, No or N/A Explanation
Systems
364. Does the benefit system capture the
voluntary separation monetary incentive? M (p.
44)

Information Stores Application Information Yes, No or N/A Explanation
Stores Disability Benefits
365. Does the benefit system capture the type
of disability or disability code? M (p. 44)
366. Does the benefit system capture the date
of disability onset or injury? M (p. 44)
367. Does the benefit system capture the degree
of impairment or diagnosis? M (p. 44)
368. Does the benefit system capture the name
of examining physician? M (p. 44)
369. Does the benefit system capture where the
claimant's injury occurred? M (p. 44)
370. Does the benefit system capture whether
the disability was caused by employment or was
related to military service? V (p. 45)
371. Does the benefit system capture the
student status of the claimant or dependent(s)
(e.g., full-time)? V (p. 45)

Page 106 GAO-04-22G -Benefit System Requirements Checklist (10/03)
373. Does
the benefit
system
capture the
dates of 374. Does 377.
372. Does creditable the benefit Does 378. Does
the employment system 375. Does 376. Does the the benefit
Information benefit of the capture the benefit the benefit benefit system
Stores Yes, system claim claimant system system system capture the
Application No capture holder, dependency capture the capture the capture claimant's
Information or Explanation claimant's including information date date the or claim
Stores N/A relation military when it married, divorced, date of holder's
Death to claim service, affects the when when claim dependent(s)
Benefits holder? M when used benefit applicable? applicable? holder student
(p. 45) in amount? M M (p. 45) M (p. 45) death? status?79 V
determining (p. 45) M (p. (p. 45)
eligibility 45)
and the
amount of
benefits? M
(p. 45)

79For example, is the student full-time?

Information Stores Application Information Yes, No or N/A Explanation
Stores Survivor Benefits
379. Does the benefit system capture the
claimant's relation to the claim holder? M (p.
45)
380. Does the benefit system capture the dates
of creditable employment of the claim holder,80
including military service when used in
determining eligibility and the amount of
benefits? M (p. 45)
381. Does the benefit system capture claim
holder or claimant dependency information?81 M
(p. 45)
382. Does the benefit system capture the date
[the claim holder was] married, when
applicable?82 M (p. 45)
383. Does the benefit system capture the date
[the claim holder was] divorced, when
applicable?83 M (p. 45)
384. Does the benefit system capture the date
of claim holder death? M (p. 45)
385. Does the benefit system capture the
student status?84 M (p. 45)

80For example, does the system capture military service when used in
determining eligibility and the amount of benefits?
81For example, does the system capture whether the claim holder has
dependent children or parents?
82That is, the claimant is a former spouse.
83That is, the claimant is a former spouse.
84For example, is the claimant a full-time student?

Information Stores Application Information Yes, No or N/A Explanation
Stores Other Benefits
386. Does the benefit system capture universal
data elements 85 only? M (p. 46)
387. Does the benefit system capture the
student status 86 of the claimant or
dependent(s)? V (p. 46)

85These are covered in questions 333 through 346. 86For example, is the
student full-time?

Page 109 GAO-04-22G -Benefit System Requirements Checklist (10/03)
388. Does 389. Does 390. Does 391. Does the
the benefit the benefit the benefit benefit system
system system system maintain
maintain maintain maintain, as payment
all general appropriate, history, such
Information applicable information, award data, as the
Stores Yes, mandatory such as the such as the following: a.
Claimant No data following: following: prior
Master or Explanation elements87 a. case a. total disbursements,
Record N/A specified status, b. award, b. b.
Information within the benefit monthly collections,
Store application type, and c. gross including
information chronology payment, and principal and
data of key c. net interest, and
stores? M dates? M (p. monthly c. accruals? M
(p. 46) 46) payment? M (p. 46)
(p. 46)

87That is, does the system maintain universal data elements and
appropriate categorical information?

Information Stores Claimant Master Record Yes, No or N/A Explanation
Information Store
392. Does the benefit system maintain special
collection activity, such as the following: a.
delinquent debt collection activity and b.
status? M (p. 46)
393. Does the benefit system maintain general
data, such as demographic data other than those
specified in the application information
stores?88 V (p. 46)

88That is, does the system maintain information that has been historically
used by the agency in preparing actuarial estimates for purposes such as
forecasting and complying with financial statement reporting requirements
and SFFAS 5 and 17?

Information Stores Financial Information Store Yes, No or N/A Explanation
394. Does the benefit system maintain the
present interest rate per the Department of the
Treasury? M (p. 46)
395. Does the benefit system maintain the daily
exchange rate for relevant89 currencies? V (p.
47)

89That is, the currencies are specified by the agency.

(BLANK)

Related GAO Products

These related products address two main categories: internal control and
financial management systems. We have developed these guidelines and tools
to assist agencies in improving or maintaining effective operations and
financial management.

Internal Control

Maintaining Effective Control Over Employee Time and Attendance Reporting.
GAO-03-352G. Washington, D.C.: January 2003.

Internal Control Management and Evaluation Tool. GAO-01-1008G. Washington,
D.C.: August 2001.

Determining Performance and Accountability Challenges and High Risks.
GAO-01-159SP. Washington, D.C.: November 2000.

Financial Management Systems

Property Management Systems Requirements Checklist. GAO-02-171G.
Washington, D.C.: December 2001.

Grant Financial System Requirements Checklist. GAO-01-911G. Washington,
D.C.: September 2001.

Guaranteed Loan System Requirements Checklist. GAO-01-371G. Washington,
D.C.: March 2001.

Seized Property and Forfeited Assets Requirements Checklist. GAO-01-99G.
Washington, D.C.: October 2000.

Travel System Requirements Checklist.

GAO/AIMD-00-21.2.8. Washington, D.C.: May 2000.

(195019)

Streamlining the Payment Process While Maintaining Effective Internal
Control.

GAO/AIMD-00-21.3.2. Washington, D.C.: May 2000.

Standards for Internal Control in the Federal Government.
GAO/AIMD-00-21.3.1. Washington, D.C.: November 1999.

Human Resources and Payroll Systems Requirements Checklist.
GAO/AIMD-0021.2.3. Washington, D.C.: March 2000.

System Requirements for Managerial Cost Accounting Checklist.
GAO/AIMD-9921.2.9. Washington, D.C.: January 1999.

Inventory System Checklist. GAO/AIMD98-21.2.4. Washington, D.C.: May 1998.

Framework for Federal Financial Management System Checklist.
GAO/AIMD-98-21.2.1. Washington, D.C.: May 1998.
*** End of document. ***